* * * * * * MONDAY, NOVEMBER 16, 2020 ~ VOL. CCLXXVI NO. 117 WSJ.com HHHH $4 .00

Lastweek: DJIA 29479.81 À 1156.41 4.1% NASDAQ 11829.29 g 0.6% STOXX600 385.18 À 5.1% 10-YR. TREASURY À 1 22/32 , yield 0.892% OIL $40.13 À $2.99 EURO $1.1838 YEN 104.62

year, Beijing is now rapidlydismantling the hallmarks ofself-governance in HongKong. Though the city neverachieved full democracy, eventhe limited elections Mr. Leefought for as co-founder ofHong Kong’s largest pro-de-mocracy party are in doubt.

On Wednesday, Beijingforced the expulsion of fourpro-democracy legislatorswho held seats filled throughcitywide elections. Officialssaid the legislators were ex-pelled for disloyalty and sug-gested other expulsionscould follow. The move trig-gered the resignations ofmost other members of theopposition and rendered thechamber a rubber-stamp forHong Kong’s Beijing-ap-pointed leader.

The low point for HongPleaseturntopageA10

Acquiring BBVA’s U.S. opera-tions would bolster Pittsburgh-based PNC’s presence in fast-growing markets in theSoutheast and West. BBVA,which in 2007 bought Alabama-based Compass Bancshares, hasabout $100 billion of assets inthe U.S. with branches acrossthe Sunbelt, including a majorpresence in Texas. PNC isstrongest in the mid-Atlantic,Midwest and Southeast.

PNC Chief Executive BillDemchak said in Septemberthat extending the bank’s na-tional presence would be the“first, second and third objec-

PleaseturntopageA2

HONG KONG—On therainy night in 1997 when theU.K. transferred Hong Kongto China, democracy leaderMartin Lee stood on the bal-cony of the city’s legislaturevowing to hold Beijing to itspromises. China had agreedin the handover it would letthe former colony govern it-self under Western-style ruleof law, including eventuallyelecting its own leaders.

“The flame of democracyhas been ignited and is burn-ing in the hearts of our peo-ple,” he said in a speech tosupporters and journalistsshortly after China’s flag wasnewly raised over HongKong. “It will not be extin-guished.”

Following large and attimes violent democracy pro-tests that rocked the city last

BY JOHN LYONS

AHong KongDemocracy LeaderSees Dreams VanishBeijing’s growing crackdown marks twilightfor Martin Lee and his fight for city’s future

Mr. Biden, a Democrat, hassaid he would wait before sign-ing new trade deals and willseek to rally allies behind amore forceful policy to confrontChina. However, the new Asianagreement signals that othercountries—including U.S. alliessuch as Japan and South Ko-rea—are forging ahead in themeantime.

The new bloc stretchesacross many of the largest and

PleaseturntopageA7

SINGAPORE—Fifteen coun-tries including China signed amajor trade deal after years ofnegotiations, posing an earlychallenge to President-elect JoeBiden as he formulates his ad-ministration’s trade policies.

Sunday’s agreement, calledthe Regional ComprehensiveEconomic Partnership, or RCEP,creates a regional bloc that cov-ers around a third of global eco-nomic output.

BY JON EMONTAND ALASTAIR GALE

Asian CountriesForge Trade Pact

SpaceX Launches LandmarkManned Flight

HIGH AMBITION: A Crew Dragon capsule, atop a Falcon 9 rocket, began the company’s firstfull-fledged operational mission with astronauts aboard Sunday in a liftoff from Cape Canav-eral, Fla. The crew of four were on a 27-hour flight to the International Space Station. A4

GRE

GGNEW

TON/A

GEN

CEFR

ANCE

-PRE

SSE/GET

TYIM

AGES

“I’m not sure I’ll ever go intoa car dealership again,” said the58-year-old retired investor inBoulder, Colo. “It was fun tohave an experience that’s newand the internet enables.”

The pandemic’s disruptionshave transformed how U.S. con-sumers behave by acceleratingtheir embrace of digital com-

merce, and the changes arelikely to prove permanent, ac-cording to businesses studyingand adapting to the changes.

A recent survey by consultingfirm McKinsey & Co. found thatabout 3 out of 4 people havetried a new shopping methoddue to the coronavirus and thatmore than half of all consumers

intend to continue using curb-side pickup and grocery-deliveryservices after the pandemic isover. Nearly 70% of consumerssurveyed intend to continuebuying online for store pickup.

The pandemic collapsed intothree months a process ofadopting e-commerce that other-

PleaseturntopageA4

Brooke Mallers recentlybought a used car online, sheuses food and grocery deliveryservices more and she makestelehealth appointments—newhabits that she expects to lastlong after the coronavirus pan-demic is over.

BY HARRIET TORRY

U.S. E-Commerce Habits DeepenCovid-19’sSpreadCovers AllOf Nation

With a third surge of theCovid-19 pandemic hitting theU.S., many public-health au-thorities are warning the coro-navirus is now so widespreadthat it will take pervasive newmeasures to contain it.

New infections surpassed177,224 on Friday, setting adaily record that eclipsed thehighest daily case counts ofprevious peaks in the springand summer. The number ofnew infections was lower Sat-urday at 166,555, while newdeaths numbered nearly 1,300,according to data compiled byJohns Hopkins University. Thenumber of people hospitalizedwith Covid-19, meanwhile,reached 69,455 on Saturday,according to the Covid Track-ing Project.

In earlier surges, infectionswere concentrated in citiessuch as New York and Chicago,or populous states like Floridaand Texas.

Many of the outbreaks thenwere linked to travelers re-turning from overseas or so-called superspreading eventssuch as conferences, weddingsand rallies.

Now, it is everywhere. Peo-ple are becoming infected not

PleaseturntopageA6

BY BETSY MCKAYAND ERIN AILWORTH

Johnson Takes Masters Trophy

U.S. golfer Dustin Johnson won the Masters golf tournamentat Augusta, Ga., on Sunday with a record low score. A14

ROBCA

RR/G

ETTY

IMAGES

Hot Ticket: Your Family’sThanksgiving

i i i

Gatherings capped at 10 create angstBY CHARLES PASSY

Shortly after New York Gov.Andrew Cuomo announced lastweek that private gatherings inthe state would be limited to 10people for pandemic-relatedsafety concerns, Talia Reese didthe math and realized herThanksgiving plans might be asruined as a roast turkey gonecompletely dry.

Ms. Reese, a resident of

Great Neck, a suburb of NewYork City on Long Island, usu-ally goes with her husband andtwo children to join other rela-tives at her parents’ homenearby for a gut-busting gath-ering, turkey and all. But at lastcount, the list of this year’s at-tendees numbers 13.

“Watch my mother disinviteus. She’s extremely compliant,”said Ms. Reese, a professional

PleaseturntopageA2

Infections ravage nursinghomes in rural U.S.................. A6

Rise in cases stretcheshospitals in Italy...................... A7

Issues with masks, bubblestest small firms......................... B1

Western demand bolstersAsian economies................... A10

PNC Financial ServicesGroup Inc. is in talks to buythe U.S. arm of Spain’s BBVAfor more than $11 billion, ac-cording to people familiar withthe matter, in one of the larg-est bank tie-ups since the fi-nancial crisis.

A deal would create thefifth-largest retail bank in theU.S., with more than $550 bil-lion in assets, a giant in an in-dustry that has been slow toconsolidate. It could be an-nounced as soon as Monday,the people said.

BY CARA LOMBARDOAND LIZ HOFFMAN

PNC Nears$11 BillionBank Deal

Turn to page R12 to see how our specialists can answer all your futures questions.

How do I diversify with futures?ADVERTISEMENT

CONTENTSArts in Review... A13Business News....... B3Crossword.............. A14Heard on Street... B10Markets....................... B10Opinion.............. A15-17

Outlook....................... A2Personal Journal A11-12Sports....................... A14Technology............... B4U.S. News............. A2-6Weather................... A14World News............ A7

s 2020 Dow Jones & Company, Inc.All Rights Reserved

>

What’sNews

Fifteen countries includingChina signed a major tradedeal after years of tricky nego-tiations, posing an early chal-lenge to President-elect Bidenas he formulates his admin-istration’s trade policies. A1Many public-health au-thorities are warning thecoronavirus is now sowidespread in the U.S. thatit will take pervasive newmeasures to contain it. A1 Covid-19 deaths amongvulnerable nursing-home res-idents are surging again, withthe virus increasingly spread-ing to rural facilities. A6 The GSA’s delay in offi-cially acknowledging Biden’svictory could hinder the nextadministration’s coronavi-rus response, the president-elect’s top adviser said. A4 A judge invalidatedTrump administration rulesnarrowing the program thatprotects immigrants livingin the U.S. since childhoodwithout legal permission. A3 Two programs that ex-panded jobless benefits expireonJan. 1 unless lawmakers canbreak a deadlock over a freshround of pandemic relief. A4Peru’sMerino quit six daysafter taking office as presi-dent, followingdeadlyprotestsagainst his government. A7

PNC is in talks to buythe U.S. arm of Spain’s

BBVA for more than $11billion in a deal that wouldcreate the fifth-largest U.S.retail bank, with more than$550 billion in assets. A1 The pandemic’s disrup-tions have accelerated U.S.consumers’ embrace ofdigital commerce. A1 Investors in bonds backedby consumer loans are reap-ing a windfall as householdsspend less and save moreagainst the backdrop of astill-ailing U.S. economy. B1 Berkshire Hathaway’sbiggest purchase this yearhas been its own stock.Until recently, Warren Buf-fett eschewed buybacks. B1Mall developer Taubmanagreed to accept a price cutin its takeover by Simon ina move that will allow thecompanies to avoid adrawn-out legal battle thatwas set to start Monday. B2When Trump leaves theWhite House in January, hewill face some of the deep-est financial and legal chal-lenges in his family busi-ness empire in decades. A3 Hicks has held talksabout acquiring and invest-ing in fledgling pro-Trumpcable channel Newsmax. B4

Business&Finance

World-Wide

JOURNAL REPORTEncore: How Covid-19will change aging andretirement. R1-12

P2JW321000-6-A00100-17FFFF5178F

A2 | Monday, November 16, 2020 * * * * THEWALL STREET JOURNAL.

U.S. NEWS

Thanksgivings past.For other New York families,

the math is even more daunt-ing. Take Joe Spallina, on LongIsland. He comes from a largefamily, with several siblingsand their respective children,that typically celebrates theholiday together for a gather-ing of 30-plus people.

Mr. Spallina says it is a tall,if not impossible, order to whit-tle that figure down to the req-uisite number of 10 attendees.“I can tell you our family groupchat has been on fire the last24 hours,” he said. He wondersif any exceptions can be made.

“There’s never been aThanksgiving I haven’t spentwith my entire family,” said Mr.Spallina, who has five children.

Mr. Cuomo, a Democrat, saidWednesday at a press confer-ence that it would be up to lo-cal governments to handle en-forcement of the gatheringlimit, but he made it clear thatpolicing of some kind wasneeded.

“The rules are only as goodas the enforcement. Period,” hesaid.

A spokeswoman for Mr.Cuomo said the only exceptionwas for households of greaterthan 10 people where all mem-bers are already living underthe same roof. A spokesman forNew York City said the city willenforce the limit and will havemore details on that soon.

Some families are findingworkarounds to the state man-

date. Lenora Lott Paige, a resi-dent of Greece, N.Y., a suburb ofRochester, said she normallyhosts about a dozen people forThanksgiving. But this year, sheis keeping it well below the 10-person limit and is looking toorganize a dish exchange withthose not in attendance—mean-ing everyone can prepare a sidedish to drop off at everyoneelse’s homes.

“That way we still have eachother’s cooking,” she said, add-ing she might offer stuffing ora dessert as her specialty.

Which isn’t to say all NewYork families plan on followingthe governor’s mandate. One ofthe most prominent rebels isJoe Borelli, a New York Citycouncilman who representsparts of Staten Island. After Mr.Cuomo’s announcement of thelimit, Mr. Borelli, a Republican,took to Twitter to declare hisplans for a holiday gathering ofgreater than 10: “Kids will seetheir grandparents, cousins willplay in the yard, sis in law willbring strawberry rhubarb pie,& a turkey will be overcooked,”he tweeted.

In an interview, the council-man added that he feels peopleshould still be mindful of thepandemic and wear a mask in-doors. But he said the edictfrom the governor goes too far:“We’re to the point now wherewe’re just restricting people’slives.”

Some residents of the NewYork metropolitan area arehoping to ease the decision-making burden on their friendsand families by disinvitingthemselves from the Thanks-giving table.

Lauretta Farrell, a residentof Westfield, N.J., is one suchexample. She bowed out of afamily gathering in New Yorkwhen she realized she wasprobably the 11th attendee onthe list. “I didn’t want to be theperson” who forced a tough de-

CORRECTIONSAMPLIFICATIONS

Readers can alert The Wall StreetJournal to any errors in news

articles by emailingwsjcontact@wsj.com or by calling

888-410-2667.

Notice to readersWall Street Journal staff

members are working re-motely during the pandemic.For the foreseeable future,please send reader com-ments only by email orphone, using the contactsbelow, not via U.S. Mail.

THE WALL STREET JOURNAL(USPS 664-880) (Eastern Edition ISSN 0099-9660)(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)

Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036

Published daily except Sundays and general legal holidays.Periodicals postage paid at New York, N.Y., and other mailing offices.

Postmaster: Send address changes to The Wall Street Journal,200 Burnett Rd., Chicopee, MA 01020.

All Advertising published in The Wall Street Journal is subject to the applicable rate card,copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc.,1211 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the right not toaccept an advertiser’s order. Only publication of an advertisement shall constitute finalacceptance of the advertiser’s order.

Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com

Need assistance with your subscription?By web: customercenter.wsj.com; By email: wsjsupport@wsj.comBy phone: 1-800-JOURNAL (1-800-568-7625)

Reprints & licensing:By email: customreprints@dowjones.comBy phone: 1-800-843-0008

WSJ back issues and framed pages: wsjshop.com

Our newspapers are 100% sourced from sustainably certified mills.

GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS

comedian who made the re-mark only somewhat in jest.

Cities and states around thecountry have capped gatheringsat 10, prompting some difficultsoul-searching and angstamong holiday hosts. Suddenly,getting into the family Thanks-giving dinner is becoming a hotticket.

North Carolina announcedlast week that its indoor gath-ering limit was being reducedfrom 25 people to 10. Massa-chusetts also put a 10-personcap on indoor gatherings intoeffect earlier in November. Chi-cago Mayor Lori Lightfoot re-cently announced a 10-personlimit on meetings and socialevents.

This Thanksgiving may turninto the holiday of the re-scinded invitation. As familiespay heed to edicts, they are try-ing to determine who can stillcome—and who must get theboot. Some are abandoninggatherings all together to avoidany strife or hard feelings.

Franette Gil, Ms. Reese’smother, doesn’t deny that herdaughter’s family might get cut.“It’s really stressing me out,”Ms. Gil said of the prospect.

Ms. Reese suspects she is onthe possible chopping block be-cause her children are in schooland her family is thus more po-tentially exposed to the viruscompared with other Thanks-giving invitees. Ms. Gil con-firmed that is indeed her con-cern. For now, Ms. Reese isagreeing to her parents’ de-mand that she and family mem-bers take Covid-19 tests shortlybefore the holiday, and shehopes to still get a shot at de-vouring her mother’s famedstuffing. “We all pound it,” shesaid in fond remembrance of

ContinuedfromPageOne

Hot Ticket:The FamilyFeast

2008 crisis, governmentsleaned more on the former.

The key moment in the fo-cus on austerity to tackle thepostcrisis debt surge came inJune 2010, when a summit ofleaders from the Group of 20leading economies in Torontoagreed to halve their budgetdeficits by 2013 and stabilizeborrowing as a proportion ofeconomic output by 2016.

Most of the G-20 econo-mies had only begun growingin the third quarter of 2009,and made the pledge lessthan a year later. The equiva-lent today would be anagreement in June 2021 tohalve budget deficits by2024.

That is very unlikely tohappen, and not just becausethe G-20 now finds it hard to

agree on very much.One reason is that Ms. Ja-

vorcik’s understanding of thelessons from the last crisis iswidely shared. After spend-ing was cut, growth slowed.So did debt reduction. Cen-tral banks stepped in to pro-mote recovery, keepingshort-term interest ratesmuch lower than they mighthave wished; their criticssaid that distorted marketforces and curbed growthrates.

Today, long-term interestrates have fallen to historiclows, with an increased sup-ply of global savings in largeeconomies meeting subduedinvestment spending.

Back in 2009 and 2010,economists and policy mak-ers feared rising debt would

THE OUTLOOK | By Paul Hannon

Austerity Is Likely a Long Way OffGovern-

ment debtsare piling everhigher as thecoronaviruspandemic

heads toward its second year,with many businesses andhouseholds in parts of theworld still reliant on the pub-lic purse to stay afloat.

But one lesson that manygovernments in rich coun-tries have learned from thelast financial crisis is thatthey risk doing more harmthan good by trying to rollback that surge in borrowingbefore their economies havehealed, however long thattakes.

T hat view makes it un-likely governments willsoon resort to the kind

of spending cuts seen in theyears following the 2008 fi-nancial crisis, and more likelythey will rely instead on eco-nomic growth and low inter-est rates to shrink their debtsover a longer stretch of time.

“If we are facing a once-in-50-years shock, we shouldbe repaying these debts over50 years,” said Beata Javor-cik, chief economist at theEuropean Bank for Recon-struction and Development,summarizing the view. “Wehave learned after the finan-cial crisis that prematureausterity will backfire.”

Austerity is shorthand forgovernment efforts to reducedebts through spending cutsand tax increases. After the

spook investors, driving in-terest rates higher. The Inter-national Monetary Fund andother institutions argued thatgovernments should committo cutting borrowing to pre-vent a vicious cycle in whichhigher interest costs wouldlead to higher debts and evenhigher interest costs.

That worry hasn’t goneaway, especially for govern-ments with very high debtlevels or those borrowing ina foreign currency.

But for rich countries suchas the U.S., Germany and oth-ers, it seems that what areknown as bond vigilantespose a much reduced threattoday. The IMF now says thatin many such places, thepostpandemic rate of eco-nomic growth is likely to behigher than the interest ratepaid by governments on theirborrowing. If so, debt will fallrelative to economic outputwithout governments havingto change either their spend-ing or tax plans.

G overnments still mightwant to lower theirdebt levels. There re-

mains the risk that interestrates will rise sharply overthe next decade. And thegovernments might seek tocreate a buffer ahead of thenext crisis.

But they feel less urgencythan in 2010, even in the eu-rozone, where the postcrisispush for austerity was moreaggressive than in the U.S.

Government debt has been

the eurozone’s worry sincethe currency area wasfounded. Voters in thewealthier north feared thatcountries in the poorer southwould borrow excessivelywhen interest rates fell fol-lowing the introduction of ashared currency, and thenortherners would be leftwith the bill.

The eurozone thereforehas complex, though ineffec-tive, rules designed to pre-vent a rise in governmentdebt. To allow governmentsto respond to the current cri-sis, the eurozone has sus-pended those rules for 2021,and might do so for 2022.

But some European policymakers want to go furtherand change the rules to allowmore flexibility and betterreflect new thinking on howmuch debt governments canhandle.

“The discussion about howand when to normalize fiscalpolicy is one that I believecannot be held in isolationfrom the discussion abouthow to improve our eco-nomic governance frame-work,” said Paolo Gentiloni,European commissioner foreconomy.

Whatever the political dif-ficulties of recognizing thenew consensus, much haschanged since 2010. Policymakers world-wide broadlyagree that austerity doesn’twork and that low interestrates make it unnecessary topursue that course of actioneven if it did.

Government debt is at record highs relative to economic output,and set to rise further in some countries.

Gross debt as share of GDPGovernment debt as share ofGDP for advanced economies

Source: International Monetary Fund

180

40

60

80

100

120

140

160

%

’202015

U.S.France

Germany

Italy

U.K.

140

0

20

40

60

80

100

120

%

1900 ’50 2000’20

FORECAST

ECONOMICCALENDAR

Monday: The Japanese econ-omy expanded at an annualized18.9% in the July-September pe-riod, according to economistssurveyed by data provider Quick.While improvements in privateconsumption and exports likelybuoyed the economy in the thirdquarter, economists expect anyfurther recovery to be slow.

China’s economic momen-tum is expected to have stayedstrong in October with thegrowth of domestic consumptionand fixed-asset investmentspeeding up, while industrial pro-duction decelerates, according toa poll of economists by The WallStreet Journal.

Tuesday: U.S. retail sales forOctober are expected to have in-creased for the sixth straightmonth, reflecting steady job cre-ation, a shift in spending towardtangible goods and early holidaypromotions. Retail sales surpassedpre-pandemic levels in June.

U.S. industrial production hasstruggled to return to pre-Covid19 levels. Economists are estimat-ing an uptick in activity for Octo-ber, but not enough to returncombined factory, utility and min-ing output to pre-pandemic levels.

Thursday: U.S. jobless claimshit a fresh Covid 19-era lowearly this month. Nevertheless,claims figures for the weekended Nov. 14 are expected toremain historically elevated,showing that the labor marketstill has a long way to go.

The U.S. housing market hasbeen an economic bright spot.Some economists think gainscould moderate for October andheading deeper into the fall asthe supply of for-sale homesdwindles and asking prices rise.

cision, she said, adding she willlikely make herself a dinner ofturkey cutlets as her stay-at-home alternative.

Nancy Kopilnick said it isher skills in the kitchen thathave ensured her a spot at theannual family Thanksgivinggathering she will be attendingin Manhattan. Ms. Kopilnick, aresident of Montclair, N.J., saidthe attendee count for the holi-day is currently at 11, but herplace is guaranteed because shedoes most of the cooking. “Ididn’t get the boot becausethere goes the turkey,” she said.

—Katie Honan and JimmyVielkind contributed to this

article.

U.S.WATCH

CALIFORNIA

Deputies Shoot ManPointing Gun at Them

Los Angeles County deputiesfatally shot a Black man earlySunday morning after he alleg-edly pointed a revolver in theirdirection, authorities said.

The man, whose name hasn’tbeen released, was pronounceddead at a hospital, the Los An-geles Sheriff’s Department said.

The shooting occurred around1:50 a.m. in an unincorporatedarea of Los Angeles. Deputies atthe South Los Angeles Stationreceived a call reporting that aman was standing in the middleof the street holding a gun, thedepartment said. When they ar-rived, they saw the man pointingthe gun at a vehicle and orderedhim to drop the weapon.

Authorities say the manturned and pointed the weaponin the deputies’ direction,prompting at least one deputyto fire.

—Associated Press

SOUTH CAROLINA

Five People KilledIn Head-on Crash

A car driving the wrong wayon a South Carolina interstatehighway caused a wreck thatkilled five people early Sundaymorning, troopers said.

All five people in the twocars were trapped in the wreck-age on Interstate 385 in LaurensCounty and had to be cut fromthe crumpled metal. Four ofthem died at the scene and thefifth person died at the hospital,South Carolina Trooper Joe Ho-vis said.

The wreck happened when a2014 Kia going the wrong wayin the southbound lanes of I-385near Laurens hit a 2020 Hyundaihead on around 2:15 a.m. Sun-day, Mr. Hovis said. Three peoplein the Hyundai and two peoplein the Kia died.

—Associated Press

A Walton Thanksgiving Reunion, left, in 1993; right, Talia Reese, top row, second from right, with her family at Thanksgiving in 2019.

EVER

ETTCO

LLEC

TION

CARY

REISS

tive” of any deal.Big without being deemed

too big to grow and with astrong record on takeovers,PNC has long been seen as alikely consolidator of the frag-mented U.S. regional bankingsector. It stoked that chatterthis year when it sold its stakein BlackRock Inc. for $15 bil-lion, bringing in cash that

ContinuedfromPageOne

could be redeployed into an ac-quisition.

Big bank mergers have beenrare since the 2008 crisis, withfew major players willing totest the political waters andwary of new regulations nowapplied to larger banks. What ismore, the old logic of addingadjacent branch networks isless powerful as digitally savvyconsumers are less tethered totheir corner branch.

But regional lenders are un-der pressure from national gi-ants like JPMorgan Chase & Co.and Bank of America Corp.,which are raking in depositswith digital apps, big marketingbudgets and coast-to-coastbranch networks. Low interestrates have hit especially hard at

regional banks, which rely moreon bread-and-butter loans thanrivals with Wall Street arms.

Deals are an obvious solu-tion. By closing branches inoverlapping areas and trim-ming redundant technologybudgets, regional banks hopeto merge their way to higherprofits.

In October, First CitizensBancShares Inc. agreed to buyCIT Group Inc. for $2.2 billion,creating a regional bank withmore than $100 billion in as-sets. BB&T Corp. and SunTrustBanks Inc. merged last yearinto Truist Financial Corp.,which is the sixth-largest U.S.retail lender but would bekicked down a notch by a com-bined PNC-BBVA.

The sheer number of mid-size banks in the U.S. has longbred expectations of consolida-tion in the industry. There areat least 30 lenders with be-tween $50 billion and $250 bil-lion of assets.

The deal wouldn’t be PNC’sfirst acquisition of a foreignbank’s stateside operations. Itbought the U.S. retail bankingoperations of Royal Bank ofCanada in 2012 for $3.45 bil-lion. It also scooped up a hand-ful of struggling institutionsduring the financial crisis, in-cluding National City Corp.,which was pushed by regula-tors to accept a deal.

It would signal a retreatfrom the U.S. for BBVA, for-mally called Banco Bilbao Viz-

caya Argentaria, Spain’s sec-ond-largest lender, with amajor presence in Latin Amer-ica, too. It paid about $10 bil-lion in 2007 to acquire Com-pass, which gave it a long-desired foothold in the U.S., butBBVA has at least twice writtendown the value of the businessand this year warned of an-other charge as the coronaviruspandemic tore through the U.S.economy. European lendersthat planted flags in the U.S.starting in the late 1980s havefailed to gain much ground.Royal Bank of Scotland GroupPLC sold out of Citizens Finan-cial Group Inc. in 2015. HSBCHoldings PLC said in Februaryit would close a third of its U.S.branches.

PNC Nears$11 BillionBank Deal

By invitation only

P2JW321000-4-A00200-1--------XA

THEWALL STREET JOURNAL. Monday, November 16, 2020 | A3

TrumpTower,Manhattan

Trump International Hotel,Washington

TrumpNational Doral, Miami

Mar-a-Lago Club, PalmBeach, Fla.

0

200,000

400,000

$600,000

0

200,000

$400,000

0

200,000

400,000

$600,000

0

200,000

$400,000

2016 '17 '18 '19 '20

2016 '17 '18 '19 '20

2016 '17 '18 '19 '20

Spending by GOPgroups at selectedTrumpproperties

2016 '17 '18 '19 '20Source: Center for Responsive Politics analysis of FEC data

ing the program to any newcandidates. The move was in-tended as an intermediate stepwhile the administration con-sidered whether to make an-other attempt to end the pro-gram entirely, as the SupremeCourt had allowed it could do.

That memo was the subjectof the latest round of litiga-tion. The judge, Nicholas G.Garaufis of the Eastern Dis-trict of New York, ruled it wasimproperly issued because Mr.Wolf hadn’t been properly ap-pointed to his acting position.

The ruling is the fifth to findthat Mr. Wolf is serving ille-

gally in his acting role, follow-ing a Government Accountabil-ity Office report that found Mr.Wolf and his predecessor, KevinMcAleenan, both had been im-properly appointed under fed-eral law on job vacancies.

Judge Garaufis, who was ap-pointed by former PresidentClinton, said the ruling appliesto anyone who might qualifyfor DACA under the 2012 memoestablishing the program, is-sued by then-Homeland Secu-rity Secretary Janet Napolitano.

The ruling doesn’t apply toa small subset of people whoare plaintiffs in other DACA

lawsuits.The ruling doesn’t have the

effect of removing Mr. Wolffrom his role but adds to agrowing set of rulings thathave found that, as a result ofhis improper appointment, Mr.Wolf didn’t have the authorityto issue numerous immigra-tion and other policies.

A DHS spokesman calledJudge Garaufis an “activistjudge” who substituted hisown policy preferences for thelaw. “DHS is exploring its op-tions to ensure its review ofDACA continues as intended,”the spokesman said.

Donald Trump and his family at a ceremony for a new Trump hotel in Washington, D.C., on Oct. 26, 2016.

GARY

CAMER

ON/R

EUTE

RS

loans and get other economicand tax benefits.

The Trump Organizationhas called the investigationspolitically motivated and de-nied wrongdoing.

—Craig Karmincontributed to this article.

sation. The response we haveseen from survivors has beengut-wrenching. We are deeplysorry.”

Accusations of sexual mis-conduct have swirled aroundthe Boy Scouts since soon af-ter the group was founded in1910, and the organization

documented allegations of sex-ual misconduct for decades inwhat it calls its ineligible-vol-unteer files. There are about7,800 records in the files, andthey document the individualsthe Boy Scouts has deemedunfit to be part of the group,often because of sexual-mis-

When President Trumpleaves the White House in Jan-uary, he will face some of thedeepest financial and legalchallenges in his family busi-ness empire in decades.

No matter what he focuseson after the presidency, thebusinesses will require his at-tention. Two New York inves-tigations will continue after heleaves office and the TrumpOrganization will need toavert a potential cash crunchcaused by looming debt ma-turities at the firm’s real-es-tate holdings. Personal guar-antees Mr. Trump made onsome of the organization’sdebt add urgency to shoringup its financial position.

Trump Organization execu-tives say a key focus will begrowing the brand globallyonce Mr. Trump leaves office.Yet those plans will face hur-dles. In China—a market longeyed by Mr. Trump—the presi-dent has become deeply dis-trusted after his trade wardamaged U.S.-China relations.In Europe, some of the Trumptrademarks have been elimi-nated by legal challenges.

The Trump Organizationmight soon slim down. Severalproperties are for sale, includ-ing its Washington hotel andtwo skyscrapers in New Yorkand San Francisco that are part-owned by the Trump Organiza-tion. The organization also hasbeen considering selling itsSeven Springs estate outside ofNew York City, The Wall StreetJournal previously reported.

compounded by long-runninglegal issues, with New Yorkprobes of Mr. Trump’s busi-nesses set to continue after heleaves office. Mr. Trump hasalso been contending with anInternal Revenue Service auditof his finances.

Manhattan District Attor-ney Cyrus Vance Jr., a Demo-crat, has been pursuing years

of Mr. Trump’s financial re-cords, and says criminal taxfraud and falsification of busi-ness records are among thelaws investigators believe mayhave been broken. Another in-vestigation, by New Yorkstate’s Attorney General Leti-tia James, also a Democrat, isexamining whether Mr. Trumpinflated asset values to obtain

U.S. NEWS

Any sales could help thefamily avert a lending crunch.The Trump Organization hasmore than $400 million ofdebt due in the next few yearsand many lenders have indi-cated they are wary of doingbusiness with Mr. Trump. Ad-ditionally, the pandemic hashurt business at Trump hotelsand resorts, and the financialbenefits some get from Mr.Trump being in the WhiteHouse could decline.

Trump Organization execu-tives say its businesses arehealthy. “The Trump Organiza-tion is an incredible companywith tremendous cash flow.We have never been stronger,”the company said.

It is unknown whether Mr.Trump will want to resume anactive management role. Whenelected, he turned over man-agement of the business to hissons Eric and Donald Jr. whilekeeping ownership. SomeTrump associates predict thepresident will return to his of-fice on the 26th floor ofTrump Tower in New York.“He won’t be able to help him-self,” longtime friend andbusiness partner Phil Ruffinpreviously told the Journal.

Others, including formerchief of staff Mick Mulvaney,expect he could run for presi-dent again. Mr. Mulvaney saidin recent days he “would abso-lutely put him on the shortlistof people likely to run in2024.”

Since Mr. Trump launchedhis run for the presidency in2015, his businesses have be-come closely linked with theGOP. Republican spending at

Trump properties has topped$23 million since 2015, com-pared with less than $200,000in the five years prior, accord-ing to an analysis of FederalElection Commission data bythe nonpartisan Center for Re-sponsive Politics.

Those revenues will likelydecline, including $37,000 ofmonthly rent payments theTrump campaign has made toTrump Tower in New York.The office tower, where theTrump Organization is based,has suffered from falling occu-pancy rates since Mr. Trumptook office, the Journal has re-ported.

Other properties have faredbetter, including the two officetowers in San Francisco andManhattan in which Mr.Trump owns a minority stakealongside Vornado RealtyTrust. Vornado now says it isconsidering selling the build-ings, known as 555 CaliforniaStreet and 1290 Avenue of theAmericas, and people involvedsay potential deals could in-clude the Trump Organiza-tion’s stakes in the properties.

In Washington, the TrumpInternational Hotel in Wash-ington has been a favoritegathering spot for GOP staff-ers, lobbyists and activists.The Trump family began ex-ploring a sale of its rights tothe hotel before the coronavi-rus hit, and people familiarwith the situation say thatwhile there has been signifi-cant interest from possiblebuyers, the pandemic has de-layed any transaction.

Financial challenges facingthe Trump Organization are

BY BRIAN SPEGELEAND CAITLIN OSTROFF

Pressing BusinessIssues Await Trump

ruptcies that were similarlyrooted in widespread childabuse, said James Stang, thelead lawyer for a committeerepresenting people who saidthey were sexually abused inthe Boy Scouts.

“This is the deadline formen who have been grapplingwith their abuse, seeking legalremedies for their abuse, foryears,” Mr. Stang said.

The Boy Scouts has ac-knowledged that it failed toprotect its youth members andapologized to the victims. Theyouth group has also said itcontinually works to improvemeasures to protect children.

“We are devastated by thenumber of lives impacted bypast abuse in scouting andmoved by the bravery of thosewho came forward,” the BoyScouts said. “We intentionallydeveloped an open, accessibleprocess to reach survivors andhelp them take an essentialstep toward receiving compen-

conduct allegations.Attorneys who have been su-

ing the Boy Scouts for years onbehalf of alleged abuse victimssaid they had never imaginedsuch a high number of themwould step forward throughthe bankruptcy process.

“We knew the scope wasbig,” said Paul Mones, an at-torney for alleged abuse vic-tims who helped reveal the in-eligible-volunteer files in alandmark 2010 case. “We justdidn’t have any idea the scopewas this big.”

The bankruptcy filingtouched off the first nationalcampaign encouraging survi-vors to step forward, fueled bymass-marketing techniques.

“There’s also been a steadyand increased consciousnessin the country of sexual abuse,and those things collided,” Mr.Mones said.

The Boy Scouts sought chap-ter 11 bankruptcy protection inFebruary, after it was hit with

hundreds of sex-abuse lawsuits.The Boy Scouts has experi-

enced long-declining member-ship numbers and years of cul-tural fights over whether girls,gay and transgender youthsshould be able to join. About405,000 members affiliatedwith units sponsored by theChurch of Jesus Christ of Lat-ter-day Saints left the BoyScouts in early 2020, trim-ming its membership count to1.8 million.

The bankruptcy process al-lows the Boy Scouts to create atrust to pay damage claims andget clear of legal trouble. Thenational Boy Scouts organiza-tion and the local councils thatcontrol most of the group’smultibillion-dollar trove of realestate, investments, art andother wealth are engaged intalks with creditors, who areprobing for assets that can beused to satisfy claims.

—Andrew Scurriacontributed to this article.

The Boy Scouts of Americawill face the last batch ofthousands of sex-abuse claimsMonday, the deadline for peo-ple alleging they were abusedas children to come forward inwhat is shaping up to be thelargest bankruptcy case of itskind.

More than 70,000 claimsare expected to be filed byMonday in bankruptcy court,according to attorneys in-volved in the case. The BoyScouts filed for chapter 11 pro-tection from lawsuits accusingthe organization of not takingthe necessary precautions toprotect the children whojoined the group.

The number of claims in theBoy Scouts bankruptcy case ismany times the magnitude ofthe claims in more than 20Roman Catholic Church dioce-san and religious-order bank-

BY JOSEPH DE AVILAAND PEG BRICKLEY

Deadline Looms for Abuse Claims Against Boy Scouts

WASHINGTON—A federaljudge in New York invalidatedTrump administration rulesnarrowing the program thatprotects immigrants living inthe U.S. since childhood with-out legal permission, findingthe restrictions were improp-erly issued.

The ruling Saturday restoresthe program, called DeferredAction for Childhood Arrivals,or DACA, to near-full opera-tion, after multiple attempts bythe Trump administration toend or curtail it. That means,for the first time since Septem-ber 2017, new applicants whoweren’t previously eligible,typically because they were tooyoung, may now apply.

The DACA program was cre-ated by the Obama administra-tion in 2012 to protect theyoung immigrants, known asDreamers, who have been livingin the country without legalpermission since childhood, andhas been the subject of legalbattles for the past three years.

In June, the Supreme Courtruled the Trump administra-tion’s first attempt to end theprogram didn’t follow theproper procedure required forfederal policy-making.

The following month, actingHomeland Security SecretaryChad Wolf issued a memoran-dum narrowing the program toexisting applicants, who wouldbe offered renewals of only oneyear, rather than two, and clos-

BY MICHELLE HACKMAN

Young Immigrant Program Is Restored

A judge said acting DHS head Chad Wolf, center, couldn’t limit DACA because he was improperly appointed.

JOEL

MART

INEZ

/THEMONITOR/

ASS

OCIAT

EDPR

ESS

More than 70,000 sex-abuse claims are expected in bankruptcy case.

CHRIST

OPH

ERMILLE

TTE/ER

IETIMES

-NEW

S/ASS

OCIAT

EDPR

ESS

Trump allies court Newsmaxas rival to Fox........................... B4

©Photo

graph:p

atrice

schreye

r.co

m

COLLECTION

Villeret

NEW YORK · 697 FIFTH AVENUE BETWEEN54 TH & 55 TH STREET · 212 396 1735

LAS VEGAS · THE FORUM SHOPS ATCAESARS PALACE · 702 369 1735

P2JW321000-0-A00300-1--------XA

A4 | Monday, November 16, 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.

7.2% less on services in thethird quarter than a year be-fore. That left money to boostpurchases of goods by 6.9%over the same period. But muchof this could reverse once thevirus is subdued.

Meantime, the change in howthey buy things looks more last-ing and spans generations.

“I will never go to a grocerystore again in my life becauseit’s just so convenient and easy”to shop online, said Allan Schil-ter, an 81-year-old retired ac-countant in Springfield, Mo.

Mr. Schilter picks up his gro-ceries curbside at Walmart, af-ter ordering them online. “It’ssafer; you don’t have to go intothe store.”

E-commerce’s share of U.S.retail sales rose to 16.1% in thesecond quarter of this year,from 10.8% a year earlier and0.9% of total retail sales two de-cades ago, according to theCommerce Department.

At Macy’s Inc., e-commercenow accounts for about 43% ofsales, up from 25% before thepandemic. To meet the in-creased demand, the retailerhas joined with Google to im-

prove its search-engine resultsand added same-day deliveryfor online orders.

“These are new muscleswe’ve developed over the lastseveral months,” said Matt Baer,Macy’s chief digital officer.

Shifts in consumer behaviorare driving development of newdistribution methods, such asonline-only stores, or “darkstores,” where online purchasesare gathered by workers for dis-

tribution to customers. Shop-pers aren’t allowed in to browsethe shelves or squeeze the fruit.

Whole Foods Market Inc.,which is owned by Amazon.comInc., opened its first online-onlystore in Brooklyn, N.Y., in Sep-tember, part of a strategy tomeet increased demand forfood delivery. The grocery-storechain and delivery service Ama-zonFresh have increased overalldelivery capacity by more than160% since March. Whole Foodshas increased its pickup loca-tions to all its 500 U.S. stores.The pandemic halted in-storedining, so some stores have re-purposed parts of their diningareas as spaces to pack pickupand delivery orders.

The way people pay forthings is also shifting in wayslikely to last.

A July survey by the FederalReserve Bank of San Franciscofound that 28% of respondentssaid they are avoiding usingcash and using card paymentsinstead due to the pandemic.

Consumer habits can changeafter someone tries a new wayof doing things two or threetimes out of necessity, said Jon-

wise would have taken 10 yearsin the U.S., the firm concluded.

The lockdowns, social dis-tancing and other effects of thecrisis forced many consumersto try online shopping, medicalappointments, yoga classes andtutoring services. And peoplenew to the e-commerce gameare “finding out it’s pretty use-ful,” said Brian Ruwadi, a seniorpartner at McKinsey.

This spurred businesses tostep up their digital services.“You see significant movementon both sides, and that has toresult in a significant increase, afundamental shift in accelera-tion,” he said of the changes inbusiness and consumer behavior.

“Consumers won’t go back toshopping the way they did be-fore the pandemic,” said StefanLarsson, the president of CalvinKlein and Tommy Hilfiger par-ent PVH Corp. “They will goforward into the new normal.”

PVH is speeding up digitalinvestments, including buildingnew data systems and ware-houses, Mr. Larsson said.

The rapid transition has po-sitioned some businesses tothrive and grow, while othersstruggle or fail. Among the win-ners are those facilitating theshifts, including online retailersand service providers, technol-ogy firms and companies deliv-ering the goods people are buy-ing online. Peloton InteractiveInc. said its revenue more thantripled to $757.9 million in theSeptember quarter. The com-pany is capitalizing on surgingdemand for at-home fitnessequipment.

Faltering businesses includethose unable to make the tran-sition, such as many restaurantsand bricks-and-mortar stores.

Retail-store closings in theU.S. reached a record in thefirst half of 2020, and the yearis on pace for record bankrupt-cies and liquidations, accordingto a report on the downturn’sseverity.

Some pandemic-drivenchanges in what people spendmoney on might prove tempo-rary, such as the shift awayfrom activities requiring prox-imity to other people. Withmany people still shunning airtravel and indoor dining, andwith entertainment ticket win-dows still dark from Disneylandto Broadway, consumers spent

ContinuedfromPageOne

ConsumerHabits SeeBig Shift

U.S. NEWS

press the General Services Ad-ministration this week to issuea designation that would allowhis aides to meet with Healthand Human Services officialsover the looming logisticalhurdles of manufacturing anddistributing a vaccine forCovid-19, the disease causedby the coronavirus.

“There are people at HHSmaking plans to implementthat vaccine. Our experts needto talk to those people as soonas possible so nothing drops inthis change of power we’re go-ing to have on Jan. 20,” Mr.Klain said Sunday on NBC.

He also noted that Mr. Bi-den’s coronavirus advisoryboard can’t contact the WhiteHouse coronavirus task force or

Dr. Anthony Fauci, the U.S. gov-ernment’s top infectious-dis-ease expert, without that desig-nation.

The Trump administrationhasn’t issued a typically routinetechnical designation thatwould allow Mr. Biden’s staff toview detailed classified infor-mation, send representatives toembed with government agen-cies and have the State Depart-ment facilitate calls with for-eign leaders. The delay couldalso hamper Mr. Biden’s selec-tion of cabinet officials becausethe ability to conduct back-ground investigations for secu-rity clearances is frozen.

The GSA designation has be-come the focal point in the po-larized debate around whether

President Trump should con-cede after Mr. Biden earlier thismonth secured the electoralvotes necessary to become thenext president, according to theAssociated Press and majormedia organizations.

While Senate Republicanshave largely backed Mr.Trump’s right to mount elec-tion challenges, an increasingnumber have called for Mr. Bi-den to receive intelligencebriefings as part of a transition.

An aide to Mr. Biden’s tran-sition team said they hoped to“continue a dialogue” with theGSA about the certification butdidn’t elaborate on what othermeasures are under consider-ation to compel the matter.

Dr. Fauci said in a CNN in-

terview Sunday that the gov-ernment’s public health offi-cials “of course” would be moreeffective if they could workwith Mr. Biden’s incomingteam.

In past elections, the GSA, anagency that manages real estateand other government logistics,has sent letters identifying thewinner within days of the elec-tion being called by the AP andother major news organiza-tions, before the results weremade official by the ElectoralCollege. The only time the re-sults of the election weren’t for-malized quickly was in 2000,when the results of the electionweren’t known until December.

Mr. Trump hasn’t concededthe election, but has made re-

cent comments suggesting hebelieves Mr. Biden won. OnSunday morning, referring in aTwitter message to Mr. Biden,said: “He won because the Elec-tion was Rigged.” But hequickly reversed himself, sayinglater on Twitter that Mr. Biden“only won in the eyes of theFAKE NEWS MEDIA. I concedeNOTHING!”

Mr. Trump continues tomake allegations of widespreadvoter fraud. No evidence of sig-nificant voter fraud has sur-faced, and acting Homeland Se-curity Secretary Chad Wolf lastweek said the presidential con-test was “the most secure elec-tion in U.S. history.”

—Sabrina Saddiquicontributed to this article.

WASHINGTON—President-elect Joe Biden’s top advisersaid a government agency’s de-lay in officially acknowledginghis electoral victory could hin-der his efforts to prepare forthe distribution of a coronavi-rus vaccine, among other criti-cal issues.

Ron Klain, named to be-come Mr. Biden’s White Housechief of staff, said Sunday thatthe transition team would

BY KRISTINA PETERSON

Transition Team Pushes for Critical AccessTop Biden aide saysvaccine distributionpreparedness affectedby Trump’s roadblocks

BY KATE DAVIDSON

Jobless Benefits forMillions Near an Expiration Date

Matt Bertenthal of San Francisco used to go to the gym before the pandemic, but now rides his bike on his deck using a stationary device.

athan Silver, CEO of Affinity So-lutions, a firm that aggregatesconsumer credit- and debit-cardspending data. And the pan-demic triggered dramatic shifts,he said.

One is the move from bricks-and-mortar gyms to homeworkouts. Beyond buying tread-mills and rowing machines, con-sumers are also using internet-connected equipment and appsto enjoy online classes and live-streamed group activities.

“I don’t anticipate going backto a gym for years after a vac-cine is available,” said Matt Ber-tenthal, 37, an attorney at soft-ware company Atlassian in SanFrancisco. Before the pandemic,he used a local gym once ortwice a week, spending $110 amonth on membership. Hestopped going in mid-Februaryamid concerns about the virus.

Now he surfs, uses apps forfitness workouts and rides hisbike on his deck using a station-ary digital training device threeto five days a week.

“It’s a really fantastic es-cape,” he said.

—Suzanne Kapnercontributed to this article.

FROM

TOP:

ANNEBE

RTEN

THAL;

STEP

HANIE

KEITH/G

ETTY

IMAGES

Elon Musk’s SpaceXlaunched four astronauts intoorbit Sunday evening, markingthe company’s first full-fledgedoperational mission with hu-mans on board and beginningregularly scheduled commercialflights to the InternationalSpace Station.

Carrying a full complementof crew members, the missionboosted SpaceX’s stature as thefirst company approved by theNational Aeronautics and SpaceAdministration to ferry peopleroutinely into space. It also pro-vided a capstone for theagency’s strategy of using pub-lic-private partnerships to accel-erate human space exploration.

Blastoff of the Crew Dragoncapsule, named Resilience, at7:27 p.m. ET from Cape Canav-eral, Fla., was the start of aroughly 27-hour trip to link upwith the space station. It fol-lowed NASA’s formal decisionlast week designating SpaceX’sFalcon 9 rocket and Dragoncapsule as safe to transport as-tronauts for routine crew rota-tion and other operationalflights. Months before, twoother NASA astronauts com-pleted a smooth test flight ofan earlier version of the cap-sule to the station.

The Falcon 9 slowly left thepad precisely on schedule as re-quired, churning out more than1.3 million pounds of thrust, ac-celerating with a deep rumbleand trailing a bright orangeplume that illuminated thenight sky. Roughly 12 minuteslater, ground controllers an-nounced the capsule separatedsafely from the rocket’s upperstage and its systems appearedto be operating normally.

A little earlier, the lowerportion of the rocket, includingits nine main engines, returnedand gently touched down verti-cally on an ocean platform.SpaceX and NASA already haveagreed to reuse that lowerstage—something agency offi-cials haven’t previously permit-ted for human flights—to powerthe company’s next commercialcrew launch in the spring.

NASA’s endorsement of theDragon’s safety was the long-term goal of the company,throughout six years of roller-coaster development and testing.

During Sunday’s launch,happy shouts and clappingechoed from SpaceX ground con-trol in Hawthorne, Calif.

SpaceX’s president and chiefoperating officer, Gwynne Shot-well, underscored the com-pany’s plans over the next 15months to launch seven Dragoncapsules on behalf of NASA, in-cluding three cargo versions.Sunday’s mission, she said,“represents the initiation of aDragon in orbit continuously”and “really the beginning of anew era in human space flight.”

Since the retirement of theshuttle fleet in 2011, NASA hasenvisioned eventually relyingon privately developed and op-erated space capsules to handlehuman orbital missions.

It was the first time NASAhas put four astronauts into acapsule. The crew—which in-cludes a Japanese astronautwho previously flew on thespace shuttle, Soichi Noguchi—plans a six-month stay. Themission also includes VictorGlover, who would be the firstBlack person to spend extendedtime on the station as a crewmember, as well as MichaelHopkins and Shannon Walker.

BY ANDY PASZTOR

SpaceXLaunchesLandmarkMission

WASHINGTON—Two keyprograms Congress passed thisyear to expand and enhance un-employment insurance expireon Jan.1, leaving millions ofpeople without benefits unlesslawmakers can break a months-long deadlock over a freshround of pandemic relief.

That raises the risks thatfamilies of jobless workers willmiss payments on mortgage orauto loans, face foreclosure oreviction and fall into poverty,economists warn—just as a ris-ing tide of coronavirus infec-tions threatens to undercut theeconomic recovery.

Unemployed workers inmost states get 26 weeks ofbenefits, plus additional weekswhen the economy is poor.Congress in March provided anadditional 13 weeks of benefits.It also expanded eligibility toinclude people who ordinarilywouldn’t qualify for benefits,such as freelancers, contract

workers and people who wereforced out of work by the pan-demic—for example, becausethey contracted the disease orhad to care for a sick familymember.

As of Oct. 24, the latestweek for which data are avail-able, more than 13 million peo-ple were enrolled in one of thetwo programs. The number ofpeople receiving extended ben-efits is expected to rise in com-ing weeks as more workers—many of them jobless since thepandemic began—exhaust theirregular benefits.

Allowing the programs tolapse would reduce income byroughly $150 billion in the firstquarter for workers whose ben-efits end, Deutsche Bank seniorU.S. economist Brett Ryan esti-mated. Weaker consumerspending would shave a per-centage point off economic out-put, he said.

“You’re not going to see acomplete collapse in activity,”Mr. Ryan said. “But those

knock-on effects, socially andcreditwise, are harder to quan-tify and make it a more serioussituation.”

Laid off workers have al-ready pulled back on spending,after an extra $600 in weeklyjobless payments that Congressauthorized ended in August.The extra benefits came on top

of regular unemploymentchecks from states and played akey role in limiting the eco-nomic damage from the pan-demic.

In states with less generousunemployment insurance, suchas Florida and Alabama, someworkers who were laid off in

March have already exhaustedtheir state and federal benefitsor will before year-end.

“They’re close to gone for alot of people,” Chad Stone,chief economist at the left-lean-ing Center on Budget and Pol-icy Priorities, said of the pay-ments that have kept manyhouseholds afloat for the pasteight months.

Several other aid programsare set to lapse at the end ofthe year, including a nationwideeviction moratorium, a suspen-sion of student-debt paymentsand tax breaks for businesses.

Meanwhile, local govern-ments are weighing new re-strictions on schools, busi-nesses and travelers.Businesses that were able tomove operations outdoors maysoon be constrained by coldweather in much of the country.

Senate Majority LeaderMitch McConnell (R., Ky.) andHouse Speaker Nancy Pelosi(D., Calif.) have both said Con-gress should pass another eco-

nomic relief bill by the end ofthe year. But they remain farapart on the cost.

Democrats seek a bill top-ping $2 trillion, which wouldextend the programs set to ex-pire and restore the $600-a-week supplemental benefit. Re-publicans favor a $650 billionproposal that would increasepayments by $300 a week butnot renew the expiring pro-grams. President-elect Joe Bi-den has also said he wants tosee an aid bill passed by year’send.

The labor market has im-proved faster than many econo-mists expected. The unemploy-ment rate fell last month by afull percentage point, to 6.9%,well below the 9.3% that Fed-eral Reserve officials in Juneprojected to see by the end ofthe year.

Yet monthly job gains haveslowed since the summer, andemployers added 638,000 jobsin October, less than half of the1.5 million added in August.

Two programs thatCongress passed toexpand benefitsexpire on Jan.1.

RECESSIONS

’05 ’10 ’15 ’202000

0

5

10

15%E-commerce as a shareof retail sales

Source: Commerce Department via St. Louis FedNote: Seasonally adjusted

P2JW321000-6-A00400-17FFFF5178F

THEWALL STREET JOURNAL. Monday, November 16, 2020 | A5

Help power your portfoliowith the innovators of the Nasdaq-100.

You don’t need tobe a bioengineer tohelp change theshape of humanity.

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEEThere are risks involved with investing in ETFs, including possible loss of money. ETFs are subject to riskssimilar to those of stocks. Investments focused in a particular sector, such as technology, are subject togreater risk, and are more greatly impacted by market volatility, than more diversified investments.

The Nasdaq-100 Index comprises the 100 largest non-financial companies traded on the Nasdaq.An investment cannot be made directly into an index.

Invesco Distributors, Inc.

Before investing, consider the Fund’s investment objectives,risks, charges and expenses. Visit invesco.com/fundprospectusfor a prospectus containing this information. Read it carefullybefore investing.

P2JW321000-0-A00500-1--------XA

A6 | Monday, November 16, 2020 * * * * THEWALL STREET JOURNAL.

U.S. NEWS

Infections RavageNursing Homes inRural Parts of U.S.

campuses; public-health mea-sures such as mask-wearingthat are recommended but notrequired in some states; mixedmessages about the dangers ofthe virus; and pandemic fa-tigue.

On Halloween, ZacharyMathes and Sarah Katz invitedtwo friends from their “socialbubble” over to watch trick-or-treaters, sitting socially dis-tanced outside their Pittsburghhome. Vigilant for monthsabout protecting themselvesfrom the virus, they thoughtthe small gathering was low-risk.

When it got cold outside,the four went to warm up andeat some snacks in the kitchen,leaving masks off after dis-cussing the move first. “Wekind of decided we’re all OK;that is our friend group thatwe are a part of,” said Ms.Katz.

Days later, they learned theguests had tested positive forCovid-19. By then Ms. Katz, a27-year-old communicationsspecialist, and Mr. Mathes, a29-year-old musician, hadsymptoms too. “We thoughtwe were doing everythingright, but we still got sick,”said Ms. Katz, who is ridingout the illness at home withher husband.

The virus, having spread formonths, is now more en-trenched in communities, epi-demiologists say. “When youhave so many cases in thecommunity, it is very easy toget infected inadvertently asyou go about your daily busi-ness,” said Ali Khan, a veteranepidemiologist who is dean ofthe College of Public Health atthe University of NebraskaMedical Center. “You don’tneed to go to hot spots any-more.”

That has made it harder forpeople to tell where and howthey got infected and for pub-lic-health authorities to trackdown and stop outbreaks.

Geoffrey Wardle, a lawyer inBoise, Idaho, suspects he gotthe virus while accompanyinghis parents to a funeral for arelative who died in a car acci-dent. But he said it also couldhave been during a weekendbirthday trip with his wife toCalifornia in mid-October.

Mr. Wardle says he has beencareful to wear a mask, washhis hands and stay away frompeople, so when he and hiswife first began to feel con-gested, they figured they hadwhatever cold their 16-year-old son had just gotten over.Then a client’s exposureprompted Mr. Wardle to gettested.

“I tried to be careful, butclearly was not carefulenough,” Mr. Wardle wouldwrite to employees after re-ceiving his positive results.

Days later his wife’s test con-firmed she was also infected.Their son was not.

Bruce Dennis, an internistwith a private practice in ruralAda, Okla., said when the pan-demic first started it seemedfar removed from the commu-nity of roughly 17,000 about 85miles southeast of OklahomaCity. Gradually, many peoplegrew skeptical that the viruswas as bad as health officialswarned, he said.

“People stayed in and theywere cautious but they lookedaround and they didn’t seeanybody actually sick and no-body knew anybody who hadbeen sick, and so that skepti-cism grew,” Dr. Dennis said.

Now that infected patientsare turning up in earnest—Dr.Dennis said he’s gone fromseeing a case a week this sum-mer to a case a day now—pan-demic fatigue has set in.

“A lot of people just feellike I’m through with Covid,I’ve done all I can,” said Dr.Dennis, who recently sufferedhis own bout of the virus,along with his wife, daughter,son-in-law, and 6-month-oldgrandchild. “It’s now just re-ally time to start.”

For months after the pan-demic began, Shawna Serostayed cooped up at home inCedar Rapids, Iowa, refusingto go out with friends. Withasthma and a weak immunesystem, the 40-year-old wasterrified about getting in-fected, she said.

But after watching the IowaHawkeyes’ first football gameof the season with her parentsand siblings at home a fewweekends ago, she let herguard down and decided to goto a bar with a friend. “I justwanted to keep having fun,”

she said. “It had been so long.”Last week, Ms. Sero lay in a

bed in a converted pediatricunit of Mercy Medical Centertexting with her sister severalfloors down. She had been ad-mitted to the hospital a coupleof days earlier, struggling tobreathe after testing positivefor Covid-19. Her 42-year-oldsister, also Covid-19 positive,was now in the emergencyroom, seeking relief from acough so intense it sometimesmade her vomit.

The rest of the family wasshowing symptoms too: her37-year-old brother, BobbySero, who had tested positiveand was texting the sistersfrom the master bedroom ofhis home where he was holedup to prevent his wife and fivechildren from infection; theirfather, a 60-year-old diabetic,who hasn’t wanted to go to thehospital despite feeling sick;and their 59-year-old mother,who moved out at the end ofOctober after a divorce andwas awaiting test results ather new Illinois home.

Ms. Sero doesn’t knowwhether she passed the dis-ease on to her family mem-bers, or the other way around.

Her sister is a securityguard manager whose boy-friend is a cook at a bar. Herbrother lives elsewhere andbelieves he got infected atwork. “I don’t know if Ibrought it into the house,” shesaid. “It’s so rampant here thatwe just don’t even know.”

Ms. Sero is also concernedshe might have spread the ill-ness beyond her family when,not knowing she had the virus,she visited her neighborhoodpolling site to cast a ballot onElection Day. “I had to govote,” she said. “And now I feelmiserable because I went andvoted and I had Covid.”

Iowa currently has one ofthe sharpest recent increasesin cases in the nation—rankingthird highest, per capita, overthe past week after the Dako-tas. Cases are rising exponen-tially, said Eli Perencevich, aninfectious-disease doctor andepidemiologist at the Univer-sity of Iowa Carver College ofMedicine. “Everyone is over-whelmed—they are exhaustedalready,” he said.

Mercy Medical Center hasdedicated two of its nine floorsto Covid-19 patients and hasput off elective surgeries. Onone recent day, the hospitalwas boarding 12 patients in itsemergency department untilbeds for them opened up, saidTony Myers, the hospital’s vicepresident of system quality,risk and medical affairs.

The hospital is so busy thatit is allowing staff who havebeen exposed to Covid-19 towork if they haven’t testedpositive, and they have to self-monitor and isolate at home,Dr. Myers said.

Gov. Kim Reynolds, who hasresisted a statewide maskmandate, last week bannedgatherings of more than 25people indoors or 100 peopleoutdoors, unless participantsare wearing masks. Critics saythat isn’t enough.

“We’re kind of killing theeconomy with the lack of thesesimple measures,” said Dr. Per-encevich. But Ms. Reynolds hasbeen hesitant to imposetougher restrictions, sayingshe’s heard from residents andsmall-business owners whohave told her they “can’t af-ford another shutdown.”

Cedar Rapids Mayor BradHart said he spoke to Ms.Reynolds about a statewidemask mandate early in thepandemic but recognizes thatshe represents the whole stateand that what might work forhis community won’t work forsmaller ones. Still, he decidedto issue a mask mandate forthe city in early September.

just at big gatherings, butwhen they let their guarddown, such as by not wearinga mask, while going abouttheir daily routines or insmaller social settings thatthey thought of as safe—oftenamong their own families ortrusted friends.

The number of confirmedcases is rising significantly inall but a few states, accordingto a Wall Street Journal analy-sis of data from Johns HopkinsUniversity. Most of the newcases are in the Midwest,which is experiencing a majorsurge. But even states and cit-ies that had successfullybeaten the virus down to lowlevels are struggling with ris-ing numbers of illnesses.

“This is clearly a nation-wide event,” said Michael Os-terholm, director of the Centerfor Infectious Disease Researchand Policy at the University ofMinnesota, who is a memberof President-elect Joe Biden’sCovid-19 advisory board forthe transition. “We have manymini-epidemics.”

The number of hospitaliza-tions has reached a new high,though hospital stays areshorter and fewer people aredying than in the spring, likelydue to more medical knowl-edge and better treatment.The seven-day average of newdaily Covid-19 deaths in theU.S. was above 1,000 lastweek. But that average wasstill well below the highs seenin April when the seven-dayaverage briefly topped 2,200daily deaths.

Disease modelers predict adifficult winter ahead, as fami-lies and friends gather; justhow difficult will depend onthe measures that authorities,businesses and individualstake now to slow the virus,public-health experts say.

Some state officials tooknew steps last week, includingstricter mask mandates andtighter restrictions on gather-ings. In Wisconsin and Chi-cago, officials issued stay-at-home advisories, whileVermont’s governor prohibitedall public and private socialgatherings outside of membersof the same household.

Total shutdowns may not benecessary, said CelineGounder, an infectious-dis-eases specialist and epidemiol-ogist at NYU Grossman Schoolof Medicine and Bellevue Hos-pital. Enough has been learnedabout the virus over the pastmany months that interven-tions can be more targeted tocertain ZIP Codes or types ofgathering places, more like adimmer than an on-off lightswitch, she said. “I think atthis point we actually knowenough—we’ve learned a lot—that we’re not going to have tobe quite so draconian in ourmeasures,” said Dr. Gounder,who is also on the Covid-19transition advisory board.

Many state and local lead-ers have been reluctant to re-turn to the broad lockdownsimposed in the spring, in largepart because of the severe eco-nomic and financial conse-quences for businesses and thepublic. The pandemic has al-ready cost millions of jobs inthe U.S. alone and dentedglobal output.

Epidemiologists cite severalfactors behind the currentsurge: colder weather drivingpeople indoors, including intobars and restaurants; the re-turn of students to college

ContinuedfromPageOne

Covid IsEverywhereThis Time

Medical professionals at United Memorial Medical Center in Houston check on a Covid-19 patient who was flown in from El Paso last week.

CALLAGHANO’HARE

/REU

TERS

Note: Includes Puerto RicoSources: Johns Hopkins University (cases,deaths); Census Bureau (population)

Countieswith at leastone newdeath

3,000

0

500

1,000

1,500

2,000

2,500

counties

M A M J J A S O N

Seven-day rolling average

0

500 counties

M A M J J A S O N

Countieswith at least ten newcases per 100,000 residents

250

spreading in the region, thenursing home saw its firstpositive test in late Septem-ber. Eventually, the outbreakspread to 35 of the facility’s68 residents, killing 16.

“It came into our commu-nity and it came strong, and itjust found its way into our fa-cility,” said Christen Obresley,the nursing home’s administra-tor. She said the infection likelyarrived through an asymptom-atic staff member, though thefacility had followed state andfederal guidelines on testingand infection control.

The resurgence in nursing-home cases and deaths comesdespite new federal require-ments that facilities in coun-ties with high Covid-19 ratestest staff as often as twice aweek, in an effort to detect andstem outbreaks quickly. Manynursing homes have declinedto use federally provided rapid-testing equipment, citing con-cerns including accuracy, yetface delays in getting resultsfrom labs. Some facilities havecontinued to report shortagesof protective gear such as N95masks, a major problem earlierin the pandemic.

Staffing for many nursinghomes outside large metropol-itan areas has long been a par-ticular problem, according toresearchers and nursing-homeadministrators. The pandemichas created a crisis for somefacilities that can’t find tem-porary workers to fill in whenemployees must stay home toquarantine. “The more isolatedthe community, the harder itis to bring in workforce,” said

Shawnda Schroeder, a re-search associate professor fo-cused on rural health at theUniversity of North Dakota.

Other challenges rural nurs-ing homes face, researcherssaid, can include smaller build-ings that make it hard to iso-late infected residents. Ruralnursing homes sometimes lackeasy access to a hospital ordoctor, after closures of manyrural hospitals in recent years.

A CMS spokeswoman saidthe agency has “taken an un-precedented number of publichealth actions to supportnursing homes on Covid-19,”including regulatory moves toease staffing crunches and al-low more use of telehealth.

Guardian Angels Health &Rehabilitation Center in Hib-bing, Minn., drew on employ-ees from other facilitiesowned by the same nonprofit.It put nursing administratorsto work in front-line positionsand brought in some tempo-rary agency workers, who hadto be put up in hotels. Still, inan outbreak that affected 39residents and 30 employees inSeptember and October, thefacility needed help from fiveNational Guard members, whofilled in for nine days in earlyOctober. Ten residents died.

“Staffing was tight in thefirst place,” said Scot Allen, avice president at St. FrancisHealth Services of Morris,which owns the Hibbing facility.“Then you add in the impact ofCovid…It’s very precarious.”

—Jon Kampcontributed to this article.

Covid-19 deaths among vul-nerable nursing-home resi-dents are surging again, withthe virus increasingly spread-ing to rural facilities that arestruggling with staff shortagesand other challenges.

Nursing homes reportedmore than 1,900 residentdeaths from Covid-19 in the lastweek of October, as well asmore than 32,000 confirmedand suspected cases amongstaff and residents, according tonewly released federal data an-alyzed by The Wall Street Jour-nal. Those nationwide totals atthe facilities were the highestsince early August, when statesincluding Texas and Floridawere seeing increases.

This time, the virus is infil-trating a far-flung range of fa-cilities, with a growing shareof the deaths occurring in ru-ral and small-town communi-ties in states such as Wiscon-sin, North Dakota andMontana, where case countshave climbed rapidly. The pat-tern tracks how the virus isspreading more broadlythroughout the U.S., hitting re-gions that had been largelyspared earlier in the pandemic.

“Nursing homes are not iso-lated from what happens in thecommunity,” said Carrie Hen-ning-Smith, an associate pro-fessor at the University of Min-nesota School of Public Health.“We’re seeing this run rampantthrough rural communities.”

Facilities in rural countiesreported 18% of nursing-homeCovid-19 deaths in the weekended Nov. 1, though theyhoused only 10% of the overallpopulation, according to theJournal’s analysis of weeklysurvey data from the Centersfor Medicare and MedicaidServices, or CMS. Small-towncounties saw 17% of the nurs-ing-home deaths, though facil-ities there have only 12% ofthe total residents.

At Lutheran Sunset Home, a91-bed facility in Grafton, N.D.,55 residents and 46 staffershave been infected since anoutbreak started in late Octo-ber, after Covid-19 infectionshit a high rate in the sur-rounding county. Five resi-dents infected with the coro-navirus have died.

Staffers followed recom-mended precautions, but “itstill spread like wildfire,” saidTrevor Tompkins, the adminis-trator of the nonprofit facility.“To put it bluntly, we’re in hell.”

The trend is a turnaroundfrom the spring, when nursinghomes in large cities such asNew York were seeing majoroutbreaks. Facilities in themost urban counties repre-sented around one-third ofnursing-home deaths in lateMay and early June, and only9% in the most recent week ofthe data. Rural nursing homeswere tied to only 4% of thedeaths in late May, comparedwith their recent share of 18%.

Overall, U.S. long-term-carefacilities have been tied tomore than 90,000 Covid-19deaths since the start of thepandemic, according to a WallStreet Journal tally of recentstate, local and federal data.Over time, long-term-caredeaths have tended to repre-sent around 40% of allCovid-19 deaths.

Northern Montana CareCenter, in Havre, didn’t have asingle case of Covid-19through the spring and sum-mer. But after Covid-19 began

BY TOM MCGINTYAND ANNA WILDE MATHEWS

Large central metro Large fringemetro

Mediummetro

Small metro

Small city/town Rural

0

10,000

20,000

30,000

40,000

Nov.Oct.Sept.Aug.JulyJune

Sources: WSJ analysis of data released by the Centers for Medicare and Medicaid Services;National Center for Health Statistics (urban/rural classifications)

*Case counts include confirmed and suspected staff and resident Covid-19 cases.

Covid-19 infection rateswithin nursing homes havereversed course geographically, with the highest levels nowin rural counties and the lowest in urban areas.

Rural Shift

Weekly number of newCovid-19 cases in nursinghomes by county type*

90KCovid-19 deaths have been tiedto long-term-care facilities

Holly Farrar, her husband, Casey Farrar, and their 6-month-oldHudson all had Covid-19, as did her parents.

FARR

ARFA

MILY

P2JW321000-4-A00600-1--------XA

THEWALL STREET JOURNAL. * * * * * * Monday, November 16, 2020 | A7

Japan’s largest trading partners,raising the level of nontariffitems sent to South Korea to92% from 19%, and to China to86% from 8%.

Japan’s automobile industry,a key driver of the economy,stands to gain. The deal willeliminate tariffs on nearly $50billion of auto parts sent toChina each year—accounting for87% of all such items exportedto its western neighbor, the Jap-anese government said.

Officials across the regionsaid they expect the agreementwill help countries better fightthe economic hit from the pan-demic. Mohamed Azmin Ali, Ma-laysia’s international trade min-ister, called the deal an“economic-recovery tool” thatwill help to open markets andstrengthen supply chains.

National governments needto ratify the pact before it takeseffect.

—Xiao Xiao in Beijing andChester Tay in Kuala Lumpur

contributed to this article.

throughout the region withlower tariffs, trade experts fa-miliar with the deal said.

At a ceremony on Sunday,which was conducted via video-conference because of the pan-demic, ministers from the 15countries signed the agreementand held up their signatures tothe cameras. The deal’s comple-tion comes after several years ofgrowing trade tensions, particu-larly between the U.S. and China,that raised questions about thefuture of globalization.

Premier Li Keqiang of Chinasaid that the signing showedthat multilateralism and freetrade “still represent the rightdirection of the world economyand mankind.” He said thedeal is a “landmark achievementof East Asian regional coopera-tion” that would provide a boostto the global economy.

According to Japan’s govern-ment, the RCEP will elimi-nate tariffs on 91% of goodsamong members. It will slicetrade barriers with many of

to protest, culminating in dem-onstrations Saturday that policecracked down on, killing twomen and injuring about 100.

Many of those who pro-tested saw the fall of Mr. Me-rino in less than a week as anopening for bigger change,though exactly what kind ofPeru would emerge from thechaos was unclear.

“This is the best thing thatcould have happened for Peru,”said Raul Abregu, 55, whose fa-ther-in-law died from Covid-19.

From 2003 until last year,Peru grew at the fastest rateamong Latin America’s biggest

with a steady hand until presi-dential elections in April. “Buteven under the best scenario,it’s going to be rocky,” he said.

In Peru, fury over corruptionin the congress—68 of 130 ofthem are under investigationfor graft and other crimes—boiled over this week when Mr.Vizcarra was unseated as hisgovernment grappled with thetwin challenges of a pandemicthat has caused more than35,000 deaths, the second-high-est per capita rate in the world,and an economic contraction.From jungle towns to highlandcities, Peruvans hit the streets

who had broken with most oth-ers to vote against impeach-ment. Media reports said law-makers were also consideringmembers of the centrist PurpleParty, which overwhelminglyopposed removing Mr. Vizcarra.

But by late in the evening,the badly divided body hadn’tappointed a president.

“It’s a country that is obvi-ously very agitated and fed upand really suffering because ofthe pandemic and the econ-omy,” said Michael Shifter,president of the Washington-based Inter-American Dialogue.He said Peru needs someone

WORLD NEWS

MILAN—The fast-risingnumber of coronavirus pa-tients in Italy’s intensive-carewards is on pace to soon sur-pass this spring’s deadly firstpeak of the pandemic, raisinganxiety in a country that islocking down more regions.

Although social-distancingmeasures have reduced thespeed of the increase in hospi-talizations in the past fewdays, Italy is still on course tohave more Covid-19 patients inintensive care by the last weekof November than the 4,068reached in April, when thefirst wave peaked.

As of Sunday, Italy had3,422 coronavirus cases in in-tensive care. The total numberof patients hospitalized, at35,469, is already higher thanthis spring’s peak.

Early this year, Italy wasthe first Western country tobe hit hard by the coronavirus,and the first to impose a na-tionwide lockdown.

The country began reopen-ing in May and by the summerlife had almost returned tonormal, as millions of peopleheaded to the beaches andmountains.

Health experts had warnedthat the consequences of thefreewheeling summer, fol-lowed in September by the re-turn to work and school, couldtranslate into a resurgence ofinfections and hospitaliza-tions. But Italy’s recent surgehas exceeded even the mostpessimistic forecasts.

On Oct. 1, there were fewerthan 3,400 people in Italianhospitals being treated forCovid-19, of which 291 were inintensive care. That day, 24people died because of the vi-rus. Since then, the number ofpeople in the hospital andthose in intensive care hasrisen more than 10-fold.

BY ERIC SYLVERS

Case SurgeStretchesHospitalsIn Italy

LIMA, Peru—Peru was rud-derless Sunday night, with itspresident having resigned justsix days after taking power andpolitical leaders unable toagree on a new head of state toend a constitutional crisis thatexposed deep popular angerover corruption in the coun-try’s political class.

A country of 32 million thatbefore Covid-19 was considereda shining economic star is nowflailing in uncharted waters.There is no president at thehelm, and a fractured congressis trying to decide who shouldlead the country while peopleprotest in the streets. Twopresidents are gone in less thana week—Martin Vizcarra wasimpeached last Monday andthen Manuel Merino, who engi-neered his predecessor’s ouster,resigned Sunday.

On Sunday night, the samelawmakers whose impeachmentof Mr. Vizcarra touched off sixdays of protests were in thecongress, debating who amongthem would be chosen to re-place Mr. Merino, who had novice president. They had at onepoint been considering a left-wing lawmaker, Rocio Silva,

BY RYAN DUBEAND JUAN FORERO

WORLDWATCH

Western Sahara region, as fight-ing snapped a United Nations-brokered truce agreement thathad calmed the area’s conflictfor nearly 30 years.

The clashes threatened thestability of Morocco and neigh-boring Algeria, two key U.S. secu-rity partners in an otherwise un-stable part of northwest Africa.

Fighting took place along a1,700-mile sand wall separatingMorocco’s forces from those ofthe pro-independence Polisario

Front, the group’s U.N. envoy said.The Polisario’s leadership said

Saturday that it was ending itscommitment to the 1991 cease-fire agreement, with the move-ment’s leaders calling for a massmobilization of people for a mili-tary effort against Morocco.

The Trump administration hasraised the idea of backing Mo-rocco’s claim to Western Saharaif its leaders opened ties withIsrael, according to U.S. officials.

—Jared Malsin

ETHIOPIA

Conflict Spreads IntoNeighboring Eritrea

Ethiopia’s conflict with its re-gional government of Tigray isspilling into the wider Horn of Af-rica after militias in the rebelliousstate fired rockets at the capitalof neighboring Eritrea.

Ethiopia is facing a civil warbetween the central governmentand the heavily armed Tigray, a

largely autonomous state in thenorth that wants a bigger voice ingovernment. The crisis, which hasleft hundreds dead and forcedthousands to flee, is reopeningfault lines across a volatile region.

The leader of the Tigray Peo-ple’s Liberation Front, the party ofthe regional government, saidSunday his forces fired rockets atAsmara, Eritrea’s mountaintopcapital, on Saturday night. Tigray’sregional government says some16 Eritrean military divisions are

fighting alongside the Ethiopianmilitary against Tigrayan forces, aclaim both governments deny.

—Nicholas Bariyo

WESTERN SAHARA

Morocco Forces ClashWith Separatists

Moroccan military forcestraded gunfire Sunday withmembers of an independencemovement in the contested

most vibrant economies in theAsia-Pacific region, which setaside geopolitical differences toboost trade and growth duringthe coronavirus pandemic.Apart from China, it includesJapan, South Korea, Australia,New Zealand and 10 SoutheastAsian nations, from Indonesiaand Vietnam to Thailand andSingapore.

“Encouraging free trade iseven more important now thatthe global economy is in a slumpand there are signs of countriesturning inward,” Prime MinisterYoshihide Suga of Japan saidduring the RCEPmeeting, a Jap-anese government official said.

The world’s largest economy,the U.S., isn’t a part of the deal.It was involved in the concep-tion of a different bloc called theTrans-Pacific Partnership, orTPP, that didn’t include Beijingand was aimed in part at coun-tering China’s growing clout. ButWashington, which shunned bigmultilateral trade pacts underthe Trump administration,pulled out of that pact, a modi-fied version of which was signedby the other 11 countries in thegrouping.

The deal signed on Sunday—which is more limited in scopethan the TPP—increases pres-sure onMr. Biden to deepen U.S.trade engagement in the Asia-Pacific region. He warned lastyear that if the U.S. doesn’twrite the rules of the road,China will, and said he would tryto renegotiate the TPP, buthasn’t taken a firm position.

Mr. Biden’s transition teamdeclined to comment on theRCEP on Sunday.

Although most countries thatare part of Sunday’s deal alreadyhave tight trade ties—they relyon one another for goods fromrice imports to semiconductorsales—their new agreement isconsidered significant because itwill result in a more unifiedtrading system. That shouldmake it easier for the region’smanufacturers to import rawmaterials from around the blocwithout facing high tariffs, andexport finished products

ContinuedfromPageOne

New PactLinks TradeAcross Asia

Vietnamese Prime Minister Nguyen Xuan Phuc, left, and Minister ofIndustry and Trade Tran Tuan Anh cheer the RCEP’s signing from Hanoi.

LUONGTH

AIL

INH/EPA

/SHUTT

ERST

OCK

economies, with a dramatic re-duction in poverty. But thepandemic has buffeted theeconomy, leading to the Inter-national Monetary Fund to esti-mate it would contract by 14%this year.

Several top executives hadurged Mr. Merino to leave of-fice, including the chief execu-tives of food company Alicorp,mining company Minsur andBanco de Credito, Peru’s big-gest bank.

With Peruvians protestingevery day since Mr. Vizcarraleft office, Mr. Merino’s admin-istration was under heavypressure from its inception,with Peruvians seeing im-peachment as a power grab bylawmakers looking to protecttheir personal interests andsideline anticorruption investi-gations into their activities. BySaturday, after the protestdeaths, one after another ofMr. Merino’s ministers hadabandoned the government. Inall, 13 resigned.

Just after noon Sunday, Mr.Merino, a former rice and beanfarmer, had resigned.

Several human rights organ-izations called on prosecutorsto press criminal chargesagainst him and other officials.

For now, Mr. Vizcarra is theonly player to be under investi-gation. His ousting was basedon unproven allegations that hetook $640,000 in bribes fromconstruction companies while astate governor. He denied theclaims.

Peru Teeters, Second Leader QuitsPresident lasts just sixdays as protests turndeadly; lawmakers aredivided on successor

Police blocked access to the presidential palace in Lima on Sunday after the resignation of Manuel Merino.

LUKA

GONZA

LES/AGEN

CEFR

ANCE

-PRE

SSE/GET

TYIM

AGES

Chinese ProductionTops Expectations

BEIJING—China’s economicactivity posted a broad-basedrecovery in October, paving theway for a faster economic re-bound in the final quarter ofthe year.

Both investment and con-sumer spending grew at fasteryear-over-year rates in Octoberthan the month before, whileindustrial production, the firstsector to emerge from thisyear’s coronavirus-induced

slump, remained solid, againtopping market expectations.

Industrial output, which hasled the nation’s economic recov-ery in recent months, rose 6.9%in October from a year earlier,on par with September’s paceand higher than market expec-tations for a 6.5% increase, ac-cording to data released Mon-day by the National Bureau ofStatistics.

Retail sales rose 4.3% in Oc-tober from a year ago, acceler-ating from a 3.3% increase inSeptember but lower than a4.6% increase expected by econ-omists. —Jonathan Cheng

BOUTIQUESFIFTH AVENUE • BEVERLY HILLS

BAL HARBOUR • MIAMILAS VEGAS • PALM BEACH

DALLAS • ORLANDO • HOUSTONSAN FRANCISCO • SCOTTSDALE

Tel. +1 (646) 582 9813

BIG BANG INTEGRAL

18K King Gold case withintegrated bracelet. In-house

UNICO chronograph movement.

P2JW321000-6-A00700-1--------XA

A7A | Monday, November 16, 2020 * * THEWALL STREET JOURNAL.

staying in the House foreverbut didn’t elaborate.

When asked during anApril public forum about thepossibility of mounting a pri-mary against Mr. Schumer,she said, “I literally don’teven think about this in anyserious way.”

STILL COUNTING: ElectionDay was almost two weeksago, but more than 200,000votes in a number of com-petitive state Senate elec-

tions are only just startingto be counted.

Officials in Brooklyn willbegin opening 22,459 ballotson Monday in the race be-tween State Sen. AndrewGounardes, a Democrat, andhis Republican challengerVito Bruno. Mr. Bruno wasahead by 6,035 votes at theend of in-person voting, ac-cording to the New York CityBoard of Elections. Of theabsentee ballots, 13,807came from enrolled Demo-

BY LEE HAWKINS

STATE STREET | By Jimmy Vielkind

State Politicians Seen as Contenders for Biden AdministrationElected officials and politi-

cal operatives in New Yorkhave found anew parlorgame sincePresident-electJoe Biden’svictory: specu-

lating who might leave stateoffices to take jobs in a newadministration, and the dom-ino effects of their departures.

High on the list are Gov.Andrew Cuomo, a close allyof Mr. Biden, and U.S. Sen.Kirsten Gillibrand, who madean unsuccessful bid for the2020 Democratic presiden-tial nomination. People closeto Mr. Cuomo said he haspreviously mused about leav-ing Albany to be attorneygeneral or White House chiefof staff, but the governor hasrepeatedly denied having anyinterest in a new job now.

“Zero, nada, niente, zilch,”Mr. Cuomo told interviewerHoward Stern last weekwhen asked if there wastruth to the rumor he wouldbecome attorney general.

Ms. Gillibrand, during acable interview last weeksaid: “Of course, I’ll serve in

any capacity, but I think I’mbest suited here in the U.S.Senate.”

Her departure would giveMr. Cuomo the opportunityto name her successor, whichwould prompt a scramblethat last occurred after Presi-dent Obama in 2008 pickedHillary Clinton to be secre-tary of state. Mr. Cuomo ex-pressed some interest in Mrs.Clinton’s seat at the time,but then-Gov. David Patersonsettled on Ms. Gillibrand.

Some political operativesspeculated Mr. Cuomo couldname U.S. Rep. AlexandriaOcasio-Cortez, the progres-sive Democrat from Queens,to the Senate to head off apotential Democratic pri-mary challenge to either Mr.Cuomo or U.S. Sen. ChuckSchumer, both of whom areup for re-election in 2022.

Mr. Cuomo’s allies pri-vately dismissed the idea—one called it a “feverdream”—because of the twoofficials’ divergent politicalphilosophies. Ms. Ocasio-Cortez said in a recent inter-view with Vogue magazinethat she didn’t see herself

crats and 3,235 were fromenrolled Republicans, boardtallies show. The rest werefrom independent voters ormembers of minor parties.

This partisan tilt is true ofcompetitive races on Long Is-land and the Hudson Valley,where some counties will be-gin counting this week. Acourt proceeding will delayballot opening in RepublicanRob Astorino’s challenge toDemocratic state Sen. PeteHarckham, who representsparts of Westchester, Dutchessand Putnam counties.

Mr. Astorino, a formerWestchester County execu-tive, brought a lawsuit to en-sure proper procedures arefollowed, his spokesmansaid. He led Mr. Harckham by8,059 votes after in-personvoting. As of Thursday, Dem-ocrats had returned 18,754absentee ballots, enrolled Re-publicans had returned 6,438ballots and other voters hadreturned another 9,775 bal-lots, according to the stateBoard of Elections.

Nearly 1.9 million peoplearound the state voted bymail after Mr. Cuomo loos-

ened the requirements to re-quest an absentee ballot inlight of the pandemic.

Representatives of bothparties said they were opti-mistic they would do well inthe absentee counts, whichhave already taken place insome parts of the state.

Senate Deputy MajorityLeader Mike Gianaris, aDemocrat from Queens, saidthe process of vote countingcould be expedited in futureelections and introduced leg-islation that would allowelection officials to deter-mine the validity of andstart opening absentee bal-lots before Election Day.

Under current law, absen-tee ballots are valid if theyare postmarked by ElectionDay and received up to aweek later. Under Mr. Gia-naris’s proposal, ballot enve-lopes would be examined asthey arrive and votes couldbe tallied starting at 6 p.m.on Election Day. “If New Yorkwas a swing state, we wouldbe the subject of national rid-icule right now,” he said.

jimmy.vielkind@wsj.com

Both parties say they are optimistic about absentee ballot counts.

JOHNMINCH

ILLO

/ASS

OCIAT

EDPR

ESS

Two days after warningparents to prepare for schoolsto close this week, New YorkCity Mayor Bill de Blasio saidthat classrooms would remainopen after the city recordednew Covid-19 infection databelow the threshold for shut-ting down.

In a Sunday morning tweet,Mr. de Blasio said the seven-day average positivity rate ofCovid-19 tests was at 2.57%,shy of the 3% threshold forshutting down in-personlearning at schools.

The city’s seven-day aver-age positivity rate for Covid-19tests had been steadily risingin recent weeks. Mr. de Blasiohad warned parents Friday toprepare for schools to shutdown classes and revert to re-mote learning.

But the daily positivity rateannounced Sunday fell sharplyto 0.3%, city officials said,forestalling a closure.

“Thankfully, schools will re-main open on Monday, but wehave to keep fighting backwith everything we’ve got,”the mayor tweeted.

The city’s teachers union isurging the city’s Departmentof Education to stick to itsstate-approved agreement toend in-person learning whenthe citywide seven-day rollingaverage hits 3%.

“We’ve had many memberspass away from Covid, and wedon’t want to go back to that,”said Michael Mulgrew, presi-dent of the United Federationof Teachers, which represents120,000 DOE employees.

According to New York Cityschool data, there were 1,790confirmed cases of Covid-19among students and staff frommid-September through Nov.11. In late October, the city’seducation department saidabout 541,000 students hadchosen to stay fully remote ina district that had about onemillion students last schoolyear. On Oct. 26, the depart-ment said 280,000 studentshad attended in-person classesat least once this fall.

Mr. de Blasio said the DOEwill release a new reopeningplan in the coming days if in-person class time stops.Schools wouldn’t automati-cally reopen if the weekly av-erage dips below 3%, he said.

In the event that the cityshuts down in-person learning,the UFT will likely recommenda standard by which the infec-tion rate “continues to godown incrementally” beforein-person classes resume, Mr.Mulgrew said last week.

The state requires schoolsto shift to fully remote learn-ing if the infection rate in thecorresponding municipalityhits 9%.

BY LEE HAWKINS

In-PersonClasses toStay OpenDespiteWarningsBefore the coronavirus pan-

demic closed New York Cityschools in mid-March, 11th-grader Ilinca Anschel, someclassmates and teachers com-plained regularly about theirschool’s air quality, saying ex-cessive heat and poor ventila-tion was hurting their health.

The Martin Luther King Jr.Educational Complex hasstuffy, windowless classroomswith minimal airflow.

“I’ve had headaches becauseof the lack of ventilation,” saidMs. Anschel, recalling when aclassroom’s temperaturereached 84 degrees. “There’s noair, and it’s hot and sticky, nomatter the season.”

After years of complaints,the coronavirus prompted thecity’s Department of Education,teachers union representativesand others to inspect ventila-tion systems at the 1,400school buildings across the city.The MLK complex was flaggedas one of the city’s most unsafein terms of air quality.

Plagued with rodent infes-tations, water leaks and poorair quality, the MLK buildingremained closed when schoolsreopened in the fall. In-personclasses for the six schoolswithin MLK’s Upper West Side

Building near Lincoln Centerwere moved to another build-ing.

Many inspections and mil-lions of dollars later, the DOEbelieves it has found a way tomake MLK and other schoolbuildings with the worst airquality safe for in-personclasses during the pandemic.But students, parents and staffremain skeptical.

The city has spent about$4.2 million to fix the ventila-tion system at MLK, workingin consultation with the com-mercial real-estate companyTishman Speyer, according tothe United Federation ofTeachers, which represents

120,000 DOE employees. TheDOE and the union say MLK’sproblems are nearly fixed andthat in-person classes can re-sume as soon as January.

The UFT says the problemsat MLK, Murry BergtraumHigh School For Business Ca-reers, also in Manhattan, andHerman H. Lehman HighSchool in the Bronx are largelybeing addressed by upgradingtheir heating, ventilation andair-conditioning systems.

“We were just dreading it,and then, all of a sudden, thisall clicked,” said UFT Presi-dent Michael Mulgrew. “It waslike, ‘Wow, this major problemthat we were facing now has a

real resolution.’ ”Mr. Mulgrew credits a con-

versation with Rob Speyer,president and CEO of TishmanSpeyer. Mr. Speyer cleared ateam to inspect the compli-cated central-air distributionsystem at MLK and HerbertLehman. The work included de-vising new strategies for bring-ing in fresh outside air duringwinter months and retrofittingthe MLK building’s systemswith Merv 13 filters, which re-move a large portion of air-borne particles.

With the filters in scant sup-ply, Tishman Speyer leverageda relationship to get 107,000 fil-ters for the entire DOE system.

GREATER NEW YORK

Tishman Speyer’s services werepro bono, and the filters cost $1million, according to the UFT.

“We’ve given the DOE andits engineers a road map tomake this scalable,” Mr.Speyer said.

DOE Chief School Opera-tions Officer Kevin Moran saidthe agency has equipped all ofits custodians with carbon-di-oxide meters, which also willallow them to measure the airquality in rooms.

“Once we get the Merv 13sinstalled, we’re very confidentthat the system will work inall spaces,” he said.

The schools in the MurryBergtraum High School ForBusiness Careers and the Her-man H. Lehman High Schoolbuildings are already holdingin-person classes.

Ms. Anschel and some MLKparent leaders and teachersaren’t yet convinced the prob-lems are fixed. They are callingfor more certainty and trans-parency from the DOE on howsuch a dysfunctional systemcould be brought up to standardwithin only a matter of months.

Ms. Anschel, who attendsSpecial Music School HighSchool at the still-closed MLK,is concerned about a plan tomove the 200 SMS students up-stairs and hold music classes inthe windowless subbasement.

“We spend roughly two tothree hours a day learning mu-sic, so that would mean two tothree hours in that basement,”she said. “We should not begoing there at all.”

Schools Get Ventilation UpgradesCity invested millionsto improve air quality,but some students,teachers are skeptical

Ilinca Anschel still has concerns about ventilation at the Martin Luther King Jr. Educational Complex.

DES

IREE

RIOSFO

RTH

EWALL

STRE

ETJO

URN

AL

Big marijuana companiesand emerging entrepreneurs arelaying the groundwork to set upshop in New Jersey after votersapproved a constitutionalamendment legalizing the rec-reational use of cannabis.

Residents supported the bal-lot measure in the Nov. 3 elec-tion by a 2-to-1 margin. Statelawmakers are now crafting en-abling legislation to help set upthe parameters of the market-place, and a new state commis-sion is set to start creating reg-ulations for the new industry.

Developing the regulationswill take time, and DemocraticGov. Phil Murphy has said itwould probably take about ayear before the first wave of re-tail sales begins. The statehasn’t determined how many li-censes for growers and retailsites will be allowed. Still, es-tablished marijuana businessesand those looking to break intothe industry are preparing now.

Charles Gormally, co-chair-man of the cannabis-law prac-tice at Brach Eichler, said hislaw firm was fielding callsfrom people with an array ofbackgrounds seeking to getinto the cannabis business.

“You’ve got farmers whoown their land, you got dis-tressed warehouse folks,you’ve got brownfield develop-ers,” Mr. Gormally said.“Those folks have control overreal estate, and that is their

ticket into the marketplace.”The state joins Massachu-

setts, Vermont and Maine asthe fourth state in the North-east to legalize recreationalmarijuana, according to theNational Conference of StateLegislatures. And with a popu-lation of nearly nine millionpeople, it will become the mostpopulous state in the regionthat permits cannabis sales.

New Jersey also benefits be-cause of its proximity to bothNew York City and Philadelphia,two large cities where recre-ational marijuana sales remainillegal, said William Caruso, a

co-founder of New JerseyUnited for Marijuana Reform.

“I still see New Jersey beingthe gem in the region,” he said.“You are seeing significant op-portunity for investment.”

In New Jersey, one of thelast unresolved issues iswhether to add a tax on mari-juana on top of the state’s6.625% sales tax and where toallocate the tax revenues fromthe new industry. State law-makers continue to negotiateon a final bill.

Curaleaf Holdings Inc., amarijuana company that oper-ates in 23 states and grows

and sells both medical andrecreational cannabis, has onecultivation facility and onemedical dispensary in NewJersey. The company is al-ready in the planning stages toincrease production in NewJersey, said Boris Jordan, thecompany’s executive chairman.“We intend to expand dramati-cally, particularly on the culti-vation side,” he said.

Curaleaf is building a120,000-square-foot indoorcultivation facility and laterplans to build a 500,000-square-foot outdoor operation,Mr. Jordan said. The company

also plans to add two addi-tional retail locations, he said.

Once New Jersey’s mari-juana program is fully devel-oped, the marketplace couldgenerate at least $2.5 billion insales, said Scott Rudder, chair-man of the New Jersey Canna-Business Association. It is ex-pected to create 30,000 directand indirect jobs, he said.

“We have record unemploy-ment. Lots of businesses haveshuttered—some of them for-ever,” Mr. Rudder said. “Wereally need to take aggressivemeasures, and the cannabis in-dustry is ripe for that.”

BY JOSEPH DE AVILA

Marijuana Businesses Look to New Jersey

A worker at Curaleaf Holdings, which plans to expand its presence in the state now that recreational pot will be legal.

CURA

LEAF

NY

P2JW321000-2-A007A0-1--------NS

THEWALL STREET JOURNAL. * * * * Monday, November 16, 2020 | A7B

GREATERNEW YORKWATCH

ALBANY

Son, 27, Is ChargedWith Killing Mother

A 27-year-old man was ar-rested Sunday on charges ofstabbing his mother to death inAlbany, police said.

Officers responding to a 911call at 11:45 p.m. Saturday found53-year-old Denise Castanon in-side a house with multiple stabwounds to her torso, the AlbanyPolice Department said. Her son,Kristopher Castanon, was ar-rested a short distance away, po-lice said. He was awaiting arraign-ment on a murder charge. Itwasn’t clear if he had an attorney.

—Associated Press

MANHATTAN

Suspect ArrestedIn Assault on Actor

A New York man was ar-rested in connection with an un-provoked assault against RickMoranis that occurred as the 67-year-old actor was walking nearCentral Park in October.

New York City police said 35-year-old Marquis Ventura, whomauthorities listed as homeless,was arrested Saturday. It wasn’tknown if he had an attorney.

Mr. Moranis, known for rolesincluding in the movies “Ghost-busters” and “Honey I Shrunkthe Kids,” was attacked Oct. 1.

—Associated Press

ROCKEFELLER CENTER

Christmas Tree GetsSet for Decorating

A 75-foot Norway spruce ar-rived at New York City’s Rocke-feller Center to serve as one ofthe world’s most famous Christ-mas trees.

The tree was trucked in Sat-urday morning. It will be deco-rated over the coming weeks,and its more than 5 miles oflights will be illuminated on Dec.2, according to NBC, which isbroadcasting the event. No in-person spectators will be al-lowed this year. The tree wasdonated by Al Dick of Daddy Al’sGeneral Store in Oneonta, N.Y.

—Associated Press

been struck by a vibe thatnever previously existed in theneighborhood. “It is very Pari-sian,” she said.

If anything, urban-planningexperts say such sentimentsare proof that the city shouldhave promoted outdoor dininglong ago as a tool to create amore vibrant New York. Theynote that when people take tothe streets to dine, the streetsbecome safer and other busi-nesses benefit from the in-creased pedestrian presence.

“It’s allowed people to en-joy the city again in a wholenew way,” said JonathanBowles, executive director ofCenter for an Urban Future, aNew York-based think tank de-voted to planning and eco-nomic issues.

Which isn’t to say that out-door dining hasn’t posed chal-lenges. Some New Yorkershave complained that theOpen Restaurants program hascreated noise problems andimpeded the flow of pedes-

trian traffic. Business ownersand civic organizations havealso been concerned abouthow the setups have limitedstreet parking.

The latter point is on themind of Peter Madonia, chair-man of the Belmont BusinessImprovement District, thegroup that promotes the Bronxneighborhood that includesthe Arthur Avenue corridor ofshops and restaurants. Asmuch as Mr. Madonia saysthat outdoor dining has been aboon for the neighborhood,especially on the weekends, heis mindful that it has takenaway 50 parking spaces.

“That’s a lot of cars thatcan’t get here,” Mr. Madoniasaid, noting that the ArthurAvenue corridor is highly de-pendent on visitors from out-side the neighborhood whodrive there rather than usepublic transportation.

Others point to the problemof aesthetics, noting that theoutdoor setups often are visu-

ally drab affairs that can de-tract from a neighborhood’scharacter.

They “look to me like theyfloated onto our streets as de-bris left behind after a flood,”said Kathryn B. Quinn, a WestVillage resident who is part ofthe leadership of the West Vil-lage Residents Association.The neighborhood group hasreached out to city officials inrecent months to express a va-riety of concerns about theOpen Restaurants program.

City officials express faithin the program, however, andnote that while it has beenmade permanent, it can stillbe modified over time.

“I think doing this as along-term feature means youcan start figuring out how toaddress those issues,” saidCity Councilman Keith Powers,a Democrat who representsparts of Manhattan.

Meanwhile, the programproved to be a revenue gener-ator for restaurants all the

way through to the sunny daysearlier this month, notwith-standing that most restaura-teurs say outdoor revenuecan’t fully offset the loss of in-door business, with capacityfor inside space still capped at25% in the city.

At the same time, LindenPride, one of the owners ofDante, an award-winningGreenwich Village craft cock-tail bar and restaurant thatopened a second location inthe West Village this year,says he isn’t sure his new spotwould have made it withoutoutdoor dining. Fortunately,the West Village Dante hasbeen a success, with waits ofup to two hours on busynights, he says.

Mr. Pride recognizes thatneighbors may have somecomplaints but says the city isbetter off as a whole with arobust outdoor-dining scene.

“Would you rather havedark, empty streets with nolife?” he said.

@onemadisonavenue

1MAD I SONNYC .COM

S LGREEN .COM

From the team thatbrought youOne Vanderbilt Avenue—introducing the new

OneMadisonAvenue.Moving forward withthe construction ofManhattan’s future.

Coming Fall 2023.

Ready.Set.Build.

GREATER NEW YORK

During the stretch of unsea-sonably warm days earlier thismonth, many New Yorkersused the occasion to sit at oneof their favorite restaurantsand enjoy a final al frescomeal—at least without theneed for extra layers of cloth-ing or any outdoor heatingprovided by the establishment.

It was, by all accounts, a re-minder of how popular thecity’s Open Restaurants pro-gram has become since it waslaunched in June as a lifelineto an industry that has strug-gled during the coronaviruspandemic.

The program let diningspots spill onto streets androadways with a relativelyeasy approval process fromthe city. A separate program,Open Streets: Restaurants, al-lowed for select streets to beclosed to traffic to provide anadditional sales boost for eat-eries.

The effect, however, hasgone beyond just helping outrestaurants, many New York-ers say. The Open Restaurantsprogram, which has becomepermanent with a measure ap-proved last month by the CityCouncil, has transformed busi-ness corridors, if not entireneighborhoods, throughoutthe city, lending them a vital-ity often associated with Euro-pean metropolises.

And that includes not onlywell-established, pedestrian-friendly locales for dining andcommerce, from the West Vil-lage or Koreatown in Manhat-tan to the Italian-centric Ar-thur Avenue in the Bronx, butalso the city’s outlying neigh-borhoods, which are generallymore car-dependent.

“It has brought out a lot ofpeople,” said Robert Silver, alongtime community activistin the Forest Hills and RegoPark neighborhoods of Queens.Both have seen their share ofrestaurants offering outdoordining.

Marla Cornejo, co-owner of5 Burro Cafe, a Mexican res-taurant in Forest Hills with anoutdoor setup, says she has

BY CHARLES PASSY

Street Dining Livens Up City Scene

Sidewalk seating at Cowgirl NYC in the West Village last week. ‘It is very Parisian,’ says a Queens restaurateur of the street scene vibe.

KEVIN

HAGEN

FORTH

EWALL

STRE

ETJO

URN

AL

NY

P2JW321000-4-A007B0-1--------NS

A8 | Monday, November 16, 2020 THEWALL STREET JOURNAL. THEWALL STREET JOURNAL. Monday, November 16, 2020 | A9

AT&T 2020. All rights reserved.©

School is a lotdifferent this year.

But our commitmentto education is not.

For over a decade,AT&T has connected morethan 200 million students

to brighter futures.

att.com/remotelearning

P2JW321000-0-A00800-17FFFF5178F

A10 | Monday, November 16, 2020 * * * * THEWALL STREET JOURNAL.

trying negotiation, and the so-called peaceful, rational andnonviolent way. I don’t wantto say it’s useless, but we cansee no sign that there was anyimprovement in all thoseyears,” said Owan Li, a 28-year-old activist who was inthe student government atHong Kong Polytechnic Uni-versity when it became thescene of fiery clashes with po-lice last year.

“All I can say is, all theseyears I have been doing thisfor Hong Kong, not for myself,”Mr. Lee said of such criticism,in an interview on the day be-fore the national security lawwent into effect. He was sur-rounded by a few mementos inan otherwise spare office: aletter from Bill Clinton, a bustof Winston Churchill, and aphoto of himself, calling fordemocracy from the balcony ofthe city’s legislature.

What sealed Hong Kong’sfate, he said, was China’sdeepening authoritarianismunder leader Xi Jinping. Mr. Xihas centralized power sincetaking office in 2012 and seeksa more assertive Chinese roleon the world stage. The exis-tence of an open society oper-ating within China became in-compatible with Mr. Xi’s visionof tighter control, Mr. Leesaid, accusing the Chineseleader of using the unrest as apretext to bring Hong Kongunder his authority.

“To him the most importantthing now is to ensure hisparty remains firmly in con-trol, and he remains firmly incontrol,” said Mr. Lee.

For the first time in a ca-reer of activism carried outmeticulously inside the law,Mr. Lee, 82 years old, is facinga criminal charge, after beingarrested this year for partici-pating in a huge unauthorizedmarch in 2019. He is out onbail and fighting the charge.

The new security law,which criminalizes acts suchas provoking hatred againstthe central government, haschilled free speech. After itwas published, Mr. Lee—oncenearly ubiquitous in the presscriticizing attempts to erodeHong Kong’s freedoms—can-celed a scheduled interviewwith The Wall Street Journal.He has since declined all me-dia requests for comment onthe security law, which isn’tretroactive, leaving his Juneinterview with the Journalamong his last on the subject.

With the lawful path of ac-tivism closing, he worried thatthe younger generation of de-mocracy protesters who spentmonths battling police withMolotov cocktails could em-brace underground militancyas a last resort, an idea he op-poses. “There are peoplepressed into a corner,” Mr. Leesaid in June. “They don’t seeany future for Hong Kong.”

Rising movementBritain’s agreement to re-

turn Hong Kong to China in1997 meant putting millions ofsubjects under the authorityof a Communist regime thatmany of these people had fled.Before he became known asthe father of Hong Kong’s de-mocracy movement, Mr. Leewas one of these people, ayoung boy in 1949 escapingChina with his family for thethen-sleepy British colony.

As China descended intoeconomic chaos under MaoZedong, free-market HongKong grew first into a bustlingmanufacturing hub and later aglobal financial center.

Mr. Lee rose with his city.By his early 40s he was chair-man of Hong Kong’s bar associ-ation, a revered Queen’s Coun-sel and one of the city’s highestpaid lawyers, moving seam-lessly between the Chinese andEnglish-speaking worlds of thethriving international city.

After turning toward prode-mocracy activism, Mr. Lee be-came an incessant critic ofboth China’s communist regimeand Hong Kong’s British colo-nial government. Britain gov-

erned Hong Kong with laissez-faire liberalism when it cameto commerce. But British HongKong wasn’t a democracy. Brit-ish-appointed governors ruledas authoritarians, arriving incolonial regalia such as plumedhelmets through the 1980s.

Mr. Lee demanded that Brit-ish authorities introduce de-mocracy to make it hard forChina to roll it back after thehandover. Beijing opposed theidea. When Britain backeddown, Mr. Lee derided Britishnegotiators as “China hands”sacrificing Hong Kong in hopesof better relations with Beijing.

“Martin was endlessly andproperly critical of Britain’srole in the last years of our co-lonial responsibility in HongKong,” said Chris Patten, Brit-ain’s last colonial governor, whoaccelerated democratic changefrom 1992 to 1997. “The onlything I think we could havedone, looking back, was to startthe development of democraticinstitutions earlier, so that peo-ple could get used to it, with allof its faults and its constraints.”

A handful of seats in thelegislature were eventuallyopened to direct voting in the1991 election. As a candidate, ayear after co-founding theUnited Democrats of HongKong party, Mr. Lee led thepro-democracy camp to victoryin 16 of the 18 seats open forcitywide voting.

Mr. Lee’s father, a lieuten-ant general in the Kuomintangousted by Mao, had warnedhim to be wary of the Commu-nist Party when Beijing invitedMr. Lee to join the committeedrafting Hong Kong’s constitu-

Martin Lee, by the time he joined this march in 2016, above, had been a force in Hong Kong’s democracy movement for threedecades. Below, candidate Lee and his wife, Amelia, flanking their son, cast their ballots in Hong Kong’s 1991 legislative election.

FROM

TOP:

YEUNGKW

AN/EYE

PRES

S;SO

UTH

CHINAMORN

INGPO

ST/G

ETTY

IMAGES

tion in the 1980s.“The Communists cannot be

trusted,” Mr. Lee recalled hisfather’s message. “If they wantto make use of you, they willgive you anything you want.Money, women, position, ev-erything. But when they arefinished making use of you,not only will they throw youdown on the ground, but theywill step all over you.”

Mr. Lee joined the draftingeffort anyway. He had reasonto be hopeful. In the 1980s,China was emerging from thedarkness of the Cultural Revo-lution under a policy of “re-

form and opening up” led byDeng Xiaoping.

“The rest of the world, in-cluding me, thought so long asChina can keep modernizingherself along the Hong Kongline, then China and Hong Kongwould go down the same route,”he said. “Democracy for China,democracy for Hong Kong.”

Hope for a more open Chinaturned to horror on June 4,1989 when the People’s Libera-tion Army ended the largepro-democracy protest in Bei-jing’s Tiananmen Square witha massacre.

On the night of the hand-over, China skeptics feared Mr.Lee might be put in jail the mo-

‘All these years Ihave been doing thisfor Hong Kong, notfor myself.’

FROM PAGE ONE

Kong was also one for Mr. Lee,whose long career has beenintertwined with the city’ssuddenly collapsing bid to pre-serve its Western-style free-doms. A London-trained bar-rister, he turned to activismafter the U.K. began negotiat-ing the handover to China inthe 1980s. He helped write thecity’s constitution, and afterhelping open a minority oflegislative seats to direct vot-ing, led Hong Kong’s pro-de-mocracy camp to victoriesthat made him the face of themovement until he retiredfrom the legislature in 2008.

He exuded hope borderingon faith that democracy wouldsomeday flourish not only inHong Kong, but in all of China.He believed that the success ofthe global business center oper-ating semiautonomously withinthe People’s Republic of Chinamight someday serve as a bea-con for the benefits of greaterpolitical and economic opening.

Dream of democracyThe dream of democracy in

Hong Kong, seeded by Mr. Leeand others and kept alive bysuccessive generations, iscrashing around them. Nearmidnight on June 30—almostexactly 23 years after the U.K.lowered its flag—Beijing im-posed a sweeping security lawto crush pro-democracy dis-sent. Under it, agents frommainland China have broadauthority to enforce lawsagainst sedition, secession andforeign collusion in the city—most with sentences of up tolife in prison. The U.S. has de-clared that Hong Kong has lostany practical autonomy.

Mr. Lee’s moderate brand ofactivism has been renderedunviable or illegal. His visits toWashington over the decadesto build support for HongKong’s democracy movementare now criminalized. Protestsare essentially banned andsome slogans are consideredillegal. Teenagers have beenarrested for posting about in-dependence on social media,and pro-democracy books re-moved from library shelves.

Once a symbol of the city’sdemocratic promise, Mr. Leehimself is becoming marginal-ized. Pro-Beijing elites alwayssaw him as a troublemaker.Now, even some in the middleclass who aren’t friends ofBeijing either say the democ-racy movement he helpedfound missed chances to com-promise that could havewarded off a crackdown. Bycontrast, many of the student-aged protesters who battledpolice in the streets last yearsay his generation, workingwithin the law, failed to con-front China strongly enough todeliver democracy.

When Mr. Lee warned lastyear that the protesters’ in-creasing use of force wouldbackfire, the online chat roomsthat served as the central ner-vous system of the protestmovement lighted up with crit-icism for the long-respectedbarrister and politician.

“When it comes to the Mar-tin Lee generation, they were

ContinuedfromPageOne

ment Britain lowered its flag.After the handover, Mr. Lee

and pro-democracy candidatescontinued to win legislativeseats open to popular vote,forging a noisy if symbolic op-position. Younger generationsof democracy leaders adoptedMr. Lee’s idealism, but with aprogressively more confronta-tional approach.

Last year, when Hong Kong’sBeijing-backed Chief ExecutiveCarrie Lam proposed the extra-dition bill that eventually trig-gered the 2019 protests, Mr.Lee pulled out the playbook hehad been using since the late1980s: helping Hong Kongpunch above its weight in itsdealings with Beijing by culti-vating allies in Washington.

The year of the handover,he met with then-PresidentClinton, imploring him towatch over the territory. Later,he helped Mr. Clinton per-suade skeptical Democrats tosupport China’s entrance intothe World Trade Organization.Mr. Lee believed membershipin the WTO could teach Chinathe sanctity of all its interna-tional contracts; China neverlearned this lesson because itgot away with bending WTOrules, he now says.

“At the time I said, you mustmake sure China honors all theterms of these agreements,”Mr. Lee recalled. “Don’t justfold your arms and do nothing.”

When his delegation arrivedin Washington in May 2019, amore hawkish view was takinghold, drawn from the conclu-sion that decades of economicengagement had failed to turnChina into a responsible globalpartner. In November, Con-gress unanimously passed thehuman-rights act, an effort“bolstered by the support ofpro-democracy leaders likeMartin Lee…as well as themany young Hong Kongerswho came to Washington,”said Sen. Marco Rubio.

Beijing crackdownIn May, China’s National

People’s Congress unveiled theoutline of the new security lawit planned for Hong Kong, andpointed to the overseas lobby-ing by Mr. Lee and others asjustification. The full law in-cluded broadly worded newcrimes such as foreign collu-sion and sedition. On onepoint it was very specific: Go-ing abroad to seek sanctionsfrom foreign governments wasexplicitly outlawed.

Mr. Lee said that becauseChina and the U.K. registeredtheir 1984 accord to transferHong Kong as a United Nationstreaty, it is the world’s businesswhether its terms are upheld.

With the law in place, de-mocracy advocates have beensoul-searching about goinginto exile. Some left for theU.S. or Europe. At least onegroup tried to flee by speed-boat to Taiwan, only to becaptured on the high seas.

In his ninth decade and witha career so freighted withdemocratic symbolism that hisdeparture would be cause forgloating in Beijing, Mr. Leesaid his choice to stay wassimple.

“If I have the choice of dy-ing peacefully in bed outsideHong Kong, or dying in pain ina Chinese jail, the question forme is not how will I die, butwill I go to heaven,” he said,before the law went into ef-fect. “Dying without my con-victions is what would reallygive me pain.”

Twilight forDemocracyFighter

SEOUL—Asian economiesare emerging as clear winnersin the race to a full recovery,aided by demand from West-ern shoppers and success incontaining Covid-19, which hashelped the region keep its fac-tories humming.

China remains on track togrow nearly 2% this year, themost of any major economy,while the world is expected tocontract 4.4% and the U.S.4.3%, according to the Interna-tional Monetary Fund. OtherAsian economies are close be-hind China: Vietnam is ex-pected to grow 1.6%, Taiwan isexpected to be flat from a yearearlier and South Korea is fore-cast to contract 1.9%.

But they also derive an es-pecially large part of theirgrowth from exports of manu-factured goods to the rest ofthe world, especially the U.S.and Europe. Asian economiesare among the largest produc-ers of laptops, communicationequipment, televisions and

other household goods thathave experienced surges in de-mand as the pandemic forcedpeople to stay home.

“We call it the Zoomboom,” said Rory Green, an

economist at research firm TSLombard who covers Chinaand North Asia.

A key question is whetherall that demand can be sus-tained as Covid-19 caseloads

surge again in the West. Stim-ulus paychecks have beenspent and even if cases comedown again, there is a limit tohow many smartphones andother devices people need to

work and study from home.For now, though, daily life

looks much better in manyparts of Asia. In Taiwan, an an-nual gay-pride parade drewthousands of people in October.South Korea has hosted inter-national touring performancesof Andrew Lloyd Webber’s “ThePhantom of the Opera” and“Cats,” as Broadway theaters inNew York remain closed.

In China, restaurants arebuzzing and leisure businesseshave reopened, as entertain-ment companies like Walt Dis-ney Co. lay off thousands inthe U.S. Domestic airline ca-pacity in China is still about35% below pre-pandemic lev-els, but that is far better thanin the U.S. and Europe, whereit is down more than 60%.

But containing Covid-19, asmany Asian nations have done,isn’t always enough. In Thai-land, where caseloads havebeen kept low, the economy isexpected to contract 7.1% thisyear, in large part because it isso reliant on internationaltourism—which has dropped

to effectively zero—accordingto the Bank of Thailand.

A few other countries arealso looking bad, including In-dia and the Philippines, whichare set to contract 10.3% and8.3%, respectively. Both werehit particularly hard byCovid-19 and India lacks a bigelectronics-export industry.

In China, Guangzhou ViewoElectronics Co., a televisionexporter, saw orders surgeabout 50% from a year earlieras soon as the factory re-opened from a virus lockdownin March, said Michael Yang,an overseas sales departmentmanager. The company had tohire more workers to copewith all its orders, he said.

Demand has been so strongthat the company is strugglingto keep up. Shortages of rawmaterials have driven up itsprices by 50%, he said.

“We continued receivingnew orders from our custom-ers,” but the factory can’t ful-fill all of them, Mr. Yang said.

—Bingyan Wangcontributed to this article.

BY EUN-YOUNG JEONG

Western Demand Bolsters Asian EconomiesLeaders of the PackMany of this year'sbest-performingeconomies are inAsia.Projected real GDPpercentage change from2019 to 2020

Source: International Monetary Fund

–10.0% –5.0 0 2.5

China

Vietnam

Taiwan

Indonesia

S. Korea

U.S.

World

Japan

Germany

Canada

Eurozone

Japanese Growth IsHighest in 40 Years

TOKYO—The Japanese econ-omy expanded at its fastestpace in at least 40 years in theJuly-September period as pri-vate consumption and exportsimproved along with the re-opening of the global economy.

The world’s third-largesteconomy after the U.S. andChina expanded 5% in the thirdquarter of 2020 from the pre-vious quarter, the first growthin four quarters and the big-gest expansion since 1980, theperiod for which comparabledata are available. The resultcame after a record drop in thesecond quarter and was better

than economists’ forecast.On an annualized basis,

which reflects what wouldhappen if the third-quarterpace continued for a full year,Japan’s economy expanded21.4%, compared with a con-sensus forecast of 18.9%. Inthe third quarter, the nation’sgross domestic product totaledan annualized 508 trillion yen,equivalent to $4.85 trillion, re-covering a little more than halfof what it lost in the coronavi-rus pandemic.

Private spending rose 4.7%from the previous quarter asconsumers went out more forshopping and dining.

Economists say any furtherrecovery is likely to be slow incoming quarters.

—Megumi Fujikawa

P2JW321000-4-A01000-1--------XA

© 2020 Dow Jones & Company. All Rights Reserved. * * THEWALL STREET JOURNAL. Monday, November 16, 2020 | A11

Reed Crowson was in the finalround of job interviews with afinancial-technology firm in

Denver this spring when he gotthe call that is now familiar to theClass of 2020: The company wasfreezing hiring as it braced for theeconomic impact of Covid-19.

“Your whole job search is justset back to square one,” says Mr.Crowson, who studied finance andinternational business at the Uni-versity of Colorado Boulder.

In May, as this year’s collegegrads confronted a job market intatters, many schools turned to aparticular group for help: alumni.The stakes are stark. Fifteen yearsafter graduation, college graduateswho entered the job market duringthe early 1980s recession wereearning wages that were 2.5%lower than graduates who didn’tstart out in a slowdown, accordingto research by Lisa Kahn, a Univer-sity of Rochester economist.

Colby College, a private liberal-arts school in Waterville, Maine,pledged to find a job, internship orfellowship for every senior within90 days of graduation by askingalumni to hire them through itsPay It Northward initiative, begunthis spring. University of Colorado

Boulder’s Leeds School of Businessjoined with alumni and local busi-ness leaders on a mentorship pro-gram designed to help graduatingseniors find work. Over the pastsix months, alums have stepped upto make connections and offer ad-vice on résumés, insight into in-dustries, and encouragement tonetwork—a skill where many grad-uates feel shaky.

While alumni networks havesometimes been assailed for rein-forcing sameness in hiring at a timewhen many companies are strivingto diversify, alums often facilitatenew connections, rather than mak-ing actual hires themselves. Not allcolleges are soliciting alumni helpin job-searches, and efforts varyamong schools that do tap suchnetworks.

After that disappointing phone

call, Mr. Crowson decided to rethinkhis job search, focusing more onreaching out to people on LinkedInand less on submitting applicationsonline. When he learned about CUBoulder’s alumni-mentorship initia-tive, which launched in May, he ap-plied and was matched with JeremyFrenkel, a 2012 graduate of theschool who now works in invest-ment management.

Together they brainstormed alist of companies where Mr. Crow-son was interested in working—andwhere Mr. Frenkel might be able toconnect him with an employee.Through the process Mr. Crowsonlanded an interview for a financialanalyst role at HomeAdvisor, a sitethat connects homeowners andservice providers. The companyhired him in August.

Mr. Frenkel urges recent gradsGET

TYIM

AGES

Many members of the Class of 2020 have faced challenging job searches.

PERSONAL JOURNAL.CAREERS & LEADERSHIP

Job SeekersTap AlumniDuring thePandemicBY KATHRYN DILL

he temporarily moved back homefrom his college fraternity houseamid the pandemic. “It was like,well, I guess I’m gonna get opti-mized,” he says.

When the coronavirus dashedDiana C. Nearhos’s original plansfor a 200-person July wedding at aresort on Cape Cod, it was her sis-ter, Steph Nearhos, who kickedinto high gear, taking the reins inplanning a last-minute backyardsoiree for immediate family. A con-sultant for PwC in Boston, Stephassigned “deliverables,” like thecocktail-hour charcuterie board, toDiana’s future in-laws, and cri-tiqued the pace of Diana’s walkdown the aisle during the re-hearsal. Oh, and the music re-quired feedback, too.

“Which one of you owns press-ing play on the speaker?” sheshouted to the groom’s family.

“My mother kept giving medeath glares,” Steph recalls. “I waslike, ‘You just have to trust me, I’mmaking it better.’”

Diana, a sportswriter, says she’sgrateful for Steph’s help and orga-nizational skills. She was so highon newlywed bliss at the day-afterbrunch that she doesn’t even re-member Steph initiating a discus-sion with the group about whatthey could improve next time.

Some experiments in bringingnew work techniques home duringthe pandemic have flopped. SarahElk, a Chicago-based partner atBain & Co., and co-author of thebook “Doing Agile Right,” em-ployed kanban boards, a staple ofagile management, to keep four of

Pleaseturntothenextpage

FROM

TOP:

ILLU

STRA

TIONBY

JONKR

AUSE

;LINDSA

YMANN;K

ILEIGHHOLM

ES

WORK& LIFERACHELFEINTZEIG

Steph Nearhos, top right,and Diana C. Nearhos.Ren Herring, far left, andBrett Holmes.

to overcome their hesitation tonetwork, which he says has beenessential to his own career. “Thefurther I got out of college, I feltlike I developed that network andI’m comfortable sharing those con-nections,” he says.

Almost 700 alumni, parents, andfriends of the college came forwardafter Colby put out its initial re-quest in May, highlighting existinginternships and job openings aswell as many opportunities theyhad created specifically for thisyear’s graduates. Colby PresidentDavid A. Greene says in a typicalyear, about 95% of members of theroughly 500-member graduatingclass have a job or internship orare headed to grad school by aboutsix months after graduation. Cur-rently, roughly 10% of Colby’s 2020grads are still looking for their firstopportunity.

Alumni can helpjob-seekers makeconnections insidecompanies. Theyalso can help themstay motivated in apunishing climate.Kevin Muñoz says hegraduated fromColby in May feelingconfident about his prospects, buthis self-esteem waned as he appliedfor about 100 jobs and received re-jection after rejection.

Through Pay It Northward heconnected with about a dozen al-ums in different industries who of-fered everything from mock inter-views to insight into the techindustry, where Mr. Muñoz waslooking for a job. The Colby pro-gram connected Mr. Muñoz withdigital identity-verification com-

pany IDmission, which hired himin October as a solutions consul-tant onboarding clients. The com-pany’s CEO, Ashim Banerjee, is thefather of a current Colby senior.

Mr. Banerjee says working di-rectly with the college to find ap-plicants has made him reconsiderhis company’s hiring process,which previously consisted primar-ily of posting on job sites. “We’dget flooded with responses andmostly by the time you startedwading through [applicants], you’dgive up and look for someone whoknew somebody.”

In many cases, a friendly con-versation with an alum can helpgrads shine in a way they mightnot in other settings. After fouryears as a pre-med student atRice University, Simi Rahman de-cided during her senior year that

she didn’t want tobecome a doctor.She began think-ing about how topackage her sci-ence backgroundand research ex-perience. ThroughLinkedIn, shereached out to IanAkash Morrison, a

2013 Rice graduate who had co-founded a campus start-up acceler-ator. She thought an encouragingconversation would be the end oftheir interaction, but a few dayslater he called to say that the con-sulting firm he had founded, OptioVentures, was looking for an ana-lyst. “In March, even in September,none of this seemed possible tome,” says Ms. Rahman, who landedthe job and began this month. “Ijust kind of needed a chance.”

Recent graduatesare encouraged tobuild their careersthrough networking.

Grounded from his typicalweekly travel during thepandemic, consultantRen Herring has takenon a new project: opti-mizing his life.

Holding court at the red break-fast table in his Yarmouth, Mass.,kitchen, armed with a laptop, the36-year-old has led daily 8:30 a.m.stand-up meetings with his part-ner, Brett Holmes. They’ve coveredtopics like how to handle the sandthat keeps getting tracked in fromthe driveway and who takes thedog for his morning walk.

Evenings are often spent rear-ranging furniture: “Literally noroom is the same,” Mr. Herringsays. They also delve into hairyproblems like why, after multiplemeetings devoted to the subject,Brett still can’t remember to puthis keys in the escalating series ofcontainers they’ve tested out bythe front door.

And any moment is a good timefor real-time feedback, or RTF, asMr. Herring, who works at Price-waterhouseCoopers, calls it. A re-cent evening spent executing asteak tostada recipe together re-quired numerous pauses for RTFon topics like cleaning the cheeseoff the grater more quickly.

“I’ve just brought the way I workwith the clients and the way I workat PwC into our house,” Mr. Herring

she calls an in-service to her hus-band each time she rearranges thekitchen and closets, which is fre-quently. About six months aftershe began the debriefings, he fi-nally asked her what the heck anin-service meant.

“I had to tell him they’re littlesmall mini-meetings where you

learn new information.The new informationwas, ‘Where’s thesalt?’” she says.

Then again, the onlything worse than get-ting an in-service mightbe not getting one.

“I’ll come down atnight to try to get asnack and I’m lookingfor plates for 10 min-utes,” says Ms. Dem-kowski’s son, Drew, 21.It’s annoying in the mo-ment, he adds, but shedoes always seem to

manage to find more optimal spotsfor cups and pans.

His mother once printed himcopies of the timesheets she useswith clients so he could recordhourlong intervals spent on video-games and homework. He wasn’tsurprised to find she had lots offeedback for him this spring when

says. “It works for me.”“I think that Brett

sometimes wants to lockme outside,” he adds. “Ithink that’s fair.”

We’ve all had sometrouble adjusting to moretime at home. But perhapsno one is wreaking morehavoc than the suddenlystationary consultant, usedto soaring off to businessesin need each Sunday toThursday. There, their ad-vice was appreciated andthey were well-compen-sated for it. Now, unable tohop a plane to Cincinnati towander around a client sitein search of synergies,many are turning theirskills on the ones they love.

“We live it. We can’tturn it off. It’s not something thatyou say, OK, today I’m not going tobe a consultant,” says Julia Dem-kowski, who runs her own firm,Stanford Management Consulting,in Fredericksburg, Va.

She’s been on a mission to max-imize efficiencies at home foryears, administering something

They can’t jet off to make clients more efficient, sothey’re channeling their energy into their loved ones

The ConsultantHome Takeover

P2JW321000-2-A01100-1--------XA

A12 | Monday, November 16, 2020 * * * * THEWALL STREET JOURNAL.

For more travel advice fromScott McCartney, sign up for TheMiddle Seat newsletter at wsj.com/newsletters.

Scott McCartney answers a readerquestion on his October column onCovid-19 testing for travelers toavoid quarantines:

QAre there similar protocolswhen traveling to countrieslike China or Singapore? I am

a businessman who needs to travelto these countries to visit factoriesand business partners.

—Adam Bedwell, Richmond, Va.

AAdam, this is all changingquite a bit. When you firstasked, there really weren’t

options for U.S. citizens to travel to

LETTERS

Advice forWork TripsTo China,Singapore

and Prevention guidelines urge trav-elers to consider getting tested,stay away from high-risk people,wear a mask and social distance.

A Singapore Airlines aircraft at Singapore’s Changi Airport.

THEN

CHIH

WEY

/XINHUA

/ZUMAPR

ESS

quest for the powerful stone. Judywanted to know all about the game.

“I hadn’t played in probablywell over a decade at the time, andI was never a good player, really,”Mr. DiBiase says, but after his talkwith Judy, he spent nine monthsstudying chess books, includingthose by American InternationalMaster Jeremy Silman, playingagainst computers on Chess.com. Ittook months for Mr. DiBiase tobrave playing against real people,working his way up “from being agarbage chess player to a statisti-cally average chess player”—andwinning a few tournaments.

Meanwhile, his daughter joinedher school’s Chess Club in

second grade and was in severaltournaments.

Chess led Mr. DiBiase to reflecton what had gone wrong with hiscareer choices. “I was not a greatmath student, and so I was laboringpretty much for my whole life un-der the misapprehension that in or-der to do things like natural sci-ences or software programming,you needed to have great facilitywith mathematics,” he said. “Myrelative success in becoming an au-todidact in chess gave me the confi-dence to say...‘If I can become profi-cient to my desired level at thisskill that I was bad at before andrequires a lot of analytical ability,maybe I can do something else.’”

Nicholas DiBiase recalls be-ing stuck in an “unre-warding” career as an op-erations and personnelmanager when his 6-year-old daughter, intrigued by

a “Harry Potter” movie, asked himabout chess. The chance inquiry ledhim to study the game, which hecredits with giving him the confi-dence, in his mid-30s, to pursue amore challenging career in softwaredevelopment.

“I was like, ‘Maybe I do havemore capacity for left-brain think-ing.’ Chess is highly analytical,” saidMr. DiBiase, who is now 40 andlives in Phoenix.

The scientific side of things hadlong intrigued Mr. DiBiase. At Ari-zona State University, he had astrong interest in physics andchemistry. But he had chosen tomajor in political science and gov-ernment, wanting to be a politicalanalyst. By the time he became asenior, he realized, “the more Ilearned about the way politics is ac-tually conducted, particularly in theUnited States, the more disillu-sioned I became.” He didn’t feel“like I had enough time” to switchto any of the sciences. He feltlocked in.

So for the next decade and ahalf, Mr. DiBiase tried to use whathe’d learned through his major, aswell as his interest in hard scienceand computers, in a nonpoliticalcareer.

That meant a job at Phoenix-based computer-hardware distributorExpress Technology. In 2005, afterabout two years, he had becomemanaging director of quality assur-ance. He says he directed “all the sta-tistical analysis that impacted prod-uct quality” and worked in human-resources statistical operations aswell. While the company treatedhim well, Mr. DiBiase says, “I guessas the years went on, I kind of maxedout what I could improve or achieveat that company.”

One thing intrigued him: thework the company’s in-house soft-ware development department wasdoing. “But I didn’t have the qualifi-cations to do it,” he says.

Mr. DiBiase felt stuck. He was inhis mid-to-late 30s with a wife andyoung daughter. “I didn’t reallyhave the resources to drop every-thing and go back to school for anentirely new field. I was not feelinggreat about myself.”

In the middle of his funk, around2016, Mr. DiBiase’s daughter, Judy,saw “Harry Potter and the Sor-cerer’s Stone,” in which Harry, Ronand Hermione play Wizard Chess—with giant, scary pieces—in their

Chess encourages anoperations managerto dare a switch intothe software world

China and Singapore. Rules variedthroughout Asia, as they still do.But China issued new rules begin-ning Nov. 6.Foreign nationals, including U.S.

citizens, are allowed in with validresidence permits and visas undercertain conditions.According to the notice posted

by China’s embassy in theU.S., you must take a PCRCovid-19 test within 48hours of boarding andsubmit it to Chineseauthorities. (There aremore specific require-ments, too.)Health inspections are

conducted upon arrival and you canbe subjected to quarantine. Youalso have to install location-track-ing software on your phone. TheU.S. State Department warns thatsome private hospitals may not ad-mit you if you have been in theU.S. within the previous 14 days.It’s worth noting that United,

Delta and American have resumedflying to Shanghai. It’s also worth

noting that airlines are flying longinternational routes mostly for thecargo revenue, not the passengerrevenue.For Singapore, U.S. citizens who

are permanent residents there canenter and are subject to quaran-tine. U.S. citizens who are long-term pass holders need permission

from Singapore’s government.U.S. citizens traveling asshort-term visitors are notpermitted unless theyclear Singapore’s pre-de-parture health screening,which can include submit-ting Covid-19 testing and is

called SafeTravel Pass, or havea letter of entry from a Singaporegovernment agency. All U.S. citi-zens approved for entry will besubject to quarantine with elec-tronic monitoring, according to theU.S. Embassy in Singapore.Singapore Airlines flies to Los

Angeles and, as of Nov. 9, NewYork.If you do go, the U.S. will let you

return. Centers for Disease Control

her children on track duringspring lockdowns. Theboards—which featured Post-it Notes detailing the kids’school subjects, including adrawing of a bike for Ms.Elk’s preschooler who can’tyet read—are meant to orga-nize work and make progressclear to the team.

That’s only half the battlewhen it comes to kids. Ms.Elk came to realize you haveto want to finish everythingin your to-do column. “Ifyou’re willing to just com-pletely disregard it, itdoesn’t matter if you’re mak-ing it transparent,” she says.The family abandoned theapproach after three weeks.

Mr. Herring, the Yarmouth,Mass., consultant, has relaxeda bit as the pandemic hasworn on, his partner Mr.Holmes notes. The meetingsoften happen on the fly now,like while the couple is walk-ing their Havanese mix, Louie.Calendar invites still arrivereminding Mr. Holmes to dothings like make a trip to thedump, but they’ve grown onhim. Once irritated by theconstant feedback and re-minders, the 41-year-old real-tor now finds some of it help-ful—and the rest at leasttolerable.

“I kind of laugh at it now,”Mr. Holmes says. “SometimesI just roll my eyes.”

Some say they’ve learnedtheir lesson. Steve Goodrich,who admits to judging howefficiently, or not, bartendersprepare drinks, neverthelesshasn’t offered up feedback tofamily or friends in years. TheRockville, Md., resident stillrecalls his son’s responsewhen he tried to give tips onhis high school football per-formance: “I already have acoach, thank you very much.”

“I’ve learned in my old ageto hold my breath,” says the65-year-old president andCEO of the Center for Orga-nizational Excellence. “Yougotta know when to just, youknow, back off.”

“My kids couldn’t affordmy billing rate anyway,” headds.

ContinuedfrompageA11

Time toConsultAt Home

‘Sometimes I justroll my eyes,’ saysthe partner of oneconsultant.

Name: Nicholas DiBiaseAge: 40Location: Phoenix

Education: B.A. in political sci-ence and government, ArizonaState University

Former job: Managing directorof quality assurance for acomputer-hardware distributor

New job: Software developerat TheraSpecs

Aha moment: Prompting byhis daughter to get seriousabout chess at a time whenhe was feeling stalled in hiscareer. That gave him the con-fidence to think he could lookfor a career that required “alot of analytical ability.”

Most important piece ofadvice for changing jobs:“Perseverance is the key.” Takerelevant classes. Seek help andadvice from friends and/orpeople in the field, to learntheir daily routine and neededqualifications and skills. Anddon’t quit your day job untilyou’ve found something else.

UPDATE

CAITLINO’HARA

FORTH

EWALL

STRE

ETJO

URN

AL(2)

Mr. DiBiase spent 2018 takingonline courses in such subjects asback-end programming (includingdatabases and the basic architec-ture of websites). Throughout, hekept his day job.

“I was studying after the kidwent to bed at around 7 until mid-night every night for about a year,”he says. He still had doubts abouta career change, fearing he wouldfail and jeopardize his family’s sta-bility. Again, Mr. DiBiase turned tohis tech friends, asking: “Is this re-alistic? Because obviously tech be-ing a fairly youth-oriented indus-try, starting a tech career in yourmid-to-late 30s is not generallylooked upon very favorably.” Theanswer: What he sought to do wasin high demand and he should giveit a shot.

An entrepreneur friend ended uphaving an opening for a junior-techperson. Mr. DiBiase got the job, atTheraSpecs, a producer of therapeu-tic eyewear for light-sensitive indi-viduals, starting in early 2019.

Mr. DiBiase says he has beenable to apply skills from his man-ager career to his new field. “At thispoint I’m a mediocre engineer, but Iwork great with people becausethat’s what I learned to do as amanager,” he adds.

Meanwhile, he and his daughter,now almost 11, still play chess.

PERSONAL JOURNAL. | CAREERS & LEADERSHIP

Nicholas DiBiase, above, playingchess with his daughter, Judy, and,left, with Judy and puppy Anubis.

REBOOT | CAREER REINVENTION

NY

P2JW321000-0-A01200-1--------NS

THEWALL STREET JOURNAL. Monday, November 16, 2020 | A13

MOMA,N

.Y.(4)

New York

‘Museum” and “mod-ern” are somewhatat cross purposes.The former connotesa treasure house of

the historically tried and true, whilethe latter implies the up-to-date.The Museum of Modern Art in NewYork, however, is close to sui gen-eris; with its art-world power, pub-lic reputation, and big-time moneyit has the freedom to tell the con-tinuing story of modern art in anyway it sees fit.

Ah, but “continuing” is the trickypart. MoMA can do anything itwants except stand still. Art styles(Pop Art, Minimalism, ConceptualArt, Installation Art), social cur-rents (feminism, multiculturalism,Black Lives Matter), and globalism(consciously modern art is no lon-ger a strictly Western phenomenon)have overtaken MoMA’s residualimplication that Paris and New Yorkare the predominant centers ofmodern-art gravity. Then there’s thephysical problem of exhibitionspace: How can MoMA go on andon collecting without relegating re-cent acquisitions either to tempo-rary shows or deep storage?

The solution, according toMoMA’s press materials for itslong-planned but just-opened “FallReveal”—a fluffy title that soundspurloined from the fashion indus-try—is a reinstallation of 20 of its60 galleries on three of its sixfloors that gives its viewers “adeeper experience of art throughall mediums and by artists frommore diverse geographies andbackgrounds than ever before.”(This “Reveal” is the latest layer ofa display overhaul that opened inOctober 2019.) The museum, ham-pered by the Covid-19 pandemic—which, among other things, limitedthe number of workers who couldbe reinstalling a given gallery atany time—succeeds in this loftyambition in some cases, comes upshort in others, and lands mostlyin between.

Just as truth is said to be thefirst casualty of war, the first sac-rifice of MoMA’s more inclusiveapproach is chronology—which, tobe sure, MoMA has been softeningfor a while. This is understandable,given the overlap of art styles andmovements and their popping upat different times in differentplaces. A second major shift is aheightened internationalism thatpays more attention to art from,among other places, Eastern Eu-rope. “Personal Cuts” (1982) byCroatian artist Sanja Iveković, ashort video of a woman slicingaway a mask of political indoctri-nation, is a welcome example. Athird strategy is to devote specificgalleries to individual artists, witha de-emphasis on white men ofEuropean descent. These spacesfocus on such works as Carrie MaeWeems’s withering sequence ofblood-red-tinted photographsabout slavery, “From Here I SawWhat Happened and I Cried”(1995-96); Gordon Parks’s historicand bluntly corrective collection ofreportage “The Atmosphere ofCrime” (1957), which comes withits own hardbound catalog; and“Instant Zen,” a peppy gallery ofthree decades of everything from

BY PETER PLAGENS

ART REVIEW

AtMoMA,aLessThanRevealingReshuffleThemuseum’s latest rotation of works highlights important artists, but will be less than illuminating for the average visitor

winged clocks to an antique toytruck “with paint additions” byNam June Paik.

A definite thumbs up goes tothe minimalist gallery “Touchingthe Void,” which includes a subtlyastonishing small tan-and-blackgeometric abstraction, “MeanderNo. 5” (1960), by the Yugoslavpainter Julije Knifer. Another yesvote for the section called “NewYork City 1920s,” with Niles Spen-cer’s poignant painting “NearWashington Square” (c. 1928).

MoMA’s desire to have viewerssee familiar sorts of work afreshpays off especially with the displayof Marisol’s 1962 high-relief “TheFamily” standing right at the en-trance to the “Domestic Disrup-tions” chamber. If there’s a bonafide masterpiece in the museum’smonumental revisionism, it’s“Whose Utopia,” a 2006 three-part, 20-minute film by Cao Feiabout workers in a lightbulb fac-tory. At first, I wondered how theChinese government could allowthe release of this product of aSiemens residency, with overtonesof Fritz Lang’s dystopian film “Me-tropolis.” Then, as the calmly po-etic documentary proceeded, I be-gan to see the quiet well-being—even satisfaction—of the veryvaried workers at the factory.

Some downsides: There aresuch awful section titles as “TheSum of All Parts” (what doesn’tthat mean?), “Everyday Encoun-ters” (rather surprisingly includ-ing a photograph of pioneer per-formance artist CaroleeSchneemann supine, naked, andcovered with snakes), and themiddle-school textbookish “AModern Media World.” “After the

Wall” comprises a few galleriesfilled with works that are morepolitical memorabilia than art;and there’s a perfunctory nod toyouth with Petra Cortright’s self-indulgent 2007 video, ““VVEB-CAM.” Finally, a puzzling oddity:The “According to the Laws ofChance” gallery, with a lot of Mar-cel Duchamp, was installed by as-signing numbers to the works,

right mystifying for the casualviewer to make sense of it all.Heaven help the teacher on a fieldtrip with students being intro-duced to modern art. Timelinesand silos are inherently restrictive,yes, but they’re also helpful topeople whose lives don’t revolvearound modern art.

MoMA plans such reshufflesabout every six months, so viewerswill have to come back to catch upwith the museum’s evolving narra-tive. It turns out there’s institu-tional method to MoMA’s mixolog-ical arbitrariness after all.

Mr. Plagens is an artist and writerin New York.

‘Touching the Void’ gallery, top; Carrie Mae Weems’s ‘YouBecame Mammie, Mama, Mother & Then, Yes, Confidant-Ha,’from ‘From Here I Saw What Happened and I Cried’ (1995-96),above; Marisol’s ‘The Family’ (1962), left; installation view of CaoFei’s ‘Whose Utopia’ (2006), below

ARTS IN REVIEW

then drawing theirplacements out of a hat.If the result doesn’twork, then it was a badidea. But if it does (andit seems to, more orless), then why shouldMoMA bother with pro-

fessional exhibition designers?The primary negative of “Fall

Reveal,” though, is this: While it’srefreshing for art-world profes-sionals like me—who’ve been toMoMA any number of times andare grounded in how, so to speak,jazz came up the river from NewOrleans—to see unfamiliar artfreed from what museum-speakcalls “silos,” it’s going to be down-

P2JW321000-0-A01300-1--------XA

A14 | Monday, November 16, 2020 THEWALL STREET JOURNAL.

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

City Hi Lo W Hi Lo W

Anchorage 21 13 s 19 13 sAtlanta 63 44 s 64 39 sAustin 75 41 s 76 41 sBaltimore 58 36 s 53 31 sBoise 55 40 c 57 45 cBoston 53 37 pc 47 28 pcBurlington 48 33 pc 39 22 sfCharlotte 63 39 s 62 33 sChicago 50 30 pc 42 28 sCleveland 45 37 pc 40 30 sfDallas 69 43 s 72 46 sDenver 62 37 s 67 44 sDetroit 46 32 s 40 25 pcHonolulu 85 74 pc 85 73 cHouston 72 45 s 75 47 sIndianapolis 53 35 s 45 27 sKansas City 63 34 s 57 42 sLas Vegas 74 52 s 76 53 pcLittle Rock 66 41 s 66 38 sLos Angeles 87 57 s 79 53 pcMiami 85 73 pc 83 72 pcMilwaukee 48 29 pc 42 28 sMinneapolis 39 20 c 35 26 sNashville 62 41 s 59 32 sNew Orleans 69 52 s 72 55 sNew York City 53 41 s 48 33 pcOklahoma City 68 39 s 68 45 s

Omaha 59 27 s 53 39 sOrlando 79 62 pc 77 58 sPhiladelphia 54 37 s 51 31 sPhoenix 88 59 s 89 60 sPittsburgh 47 36 s 41 28 sfPortland, Maine 51 32 pc 45 25 pcPortland, Ore. 55 48 r 55 47 rSacramento 68 49 pc 63 53 rSt. Louis 62 37 s 52 34 sSalt Lake City 59 37 pc 62 47 pcSan Francisco 69 55 pc 63 54 rSanta Fe 63 31 s 64 36 sSeattle 51 49 r 56 46 rSioux Falls 52 22 pc 43 34 pcWash., D.C. 59 41 s 53 33 s

Amsterdam 55 49 c 55 46 pcAthens 67 55 s 67 56 pcBaghdad 74 51 pc 74 49 pcBangkok 92 78 pc 92 78 pcBeijing 55 46 c 57 49 cBerlin 53 45 pc 51 45 shBrussels 54 47 c 53 45 pcBuenos Aires 75 63 s 76 65 sDubai 87 73 s 87 75 pcDublin 55 53 r 60 53 rEdinburgh 50 49 sh 60 54 sh

Frankfurt 53 43 c 53 39 pcGeneva 52 37 c 51 38 pcHavana 83 72 pc 83 73 shHong Kong 81 73 s 81 74 pcIstanbul 60 47 pc 61 50 sJakarta 91 77 sh 90 77 tJerusalem 61 52 pc 64 51 pcJohannesburg 84 63 pc 85 64 pcLondon 53 50 pc 58 50 pcMadrid 64 46 pc 61 47 sManila 91 78 s 90 78 sMelbourne 75 50 s 69 51 pcMexico City 71 48 s 62 48 cMilan 57 42 c 56 40 pcMoscow 31 19 c 26 22 sMumbai 95 80 pc 95 81 pcParis 56 46 c 57 43 pcRio de Janeiro 84 75 s 86 73 tRiyadh 88 61 pc 88 63 pcRome 66 51 sh 66 48 sSan Juan 86 75 pc 85 75 pcSeoul 65 50 pc 66 55 sShanghai 73 65 pc 78 67 pcSingapore 87 78 sh 87 77 tSydney 94 66 pc 71 63 pcTaipei City 84 74 s 84 72 pcTokyo 69 57 s 66 58 sToronto 41 33 c 38 25 sfVancouver 48 44 r 52 43 shWarsaw 48 42 r 49 41 pcZurich 50 38 sh 49 36 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

Warm

Cold

Stationary

Showers

Rain

T-storms

Snow

Flurries

Ice

<0

0s

10s

20s

30s

40s

50s

60s

70s

80s

90s

100+

lgA h

J k ill

Little RockCCh l tt

LouL ill

Pittsburghbbb

ew York

yyake CSalt Lake Citalt CCLlt L

Tampa

h illh

pMemph

t

City

D ll

Paso

g

PorP dd

n

d

Atl t

ew lt

PhSan Diego

Los AngeA l

LasVeVe

. PaPp //s /l /St P

. LouL

gChicago

ington D.C.gton D Chihh

t

CharlesCh l t

kartford

hit

Indianapolis

Cleveland

ff

A ti

lk

Albuquerque

h

homa Cityahoma Citykl

an Antonio

es Moinesoux F ll

Jack Birmingham

PhiladelphiaPhil d l hiCheyenneh

Fat F

Coloradop g

Pierre

dhgRaleigh

T c

yyAlbanyA

Topeka

C bib

gA tA

Ft. Worth

p i fi ld

bil

TT

pi

VV arygCC

d t

HonoluluAnchorage

Jacksonville

Little RockCharlotte

Louisville

Pittsburgh

New York

Salt Lake City

Tampa

Nashville

Memphis

Detroit

KansasCity

Dallas

El Paso

Billings

Portland

Miami

San FranciscoSacramento

Orlando

Atlanta

New OrleansHouston

PhoenixSan Diego

Los Angeles

LasVegas

Seattle

Boise

Denver

Mpls./St. Paul

St. Louis

Chicago

Washington D.C.

Boston

Charleston

MilwaukeeHartford

Wichita

Indianapolis

Cleveland

Buffalo

Austin

HelenaBismarck

Albuquerque

Omaha

Oklahoma City

San Antonio

Des MoinesSioux Falls

Jackson Birmingham

PhiladelphiaCheyenneReno

Santa Fe

ColoradoSprings

Pierre

RichmondRaleigh

Tucson

Albany

Topeka

Columbia

Augusta

Ft. Worth

Eugene

Springfield

Mobile

Toronto

OttawaMontreal

Winnipeg

Vancouver Calgary

Edmonton

70s

80s

40s30s20s

10s0s

-0s

80s

80s 80s

70s

70s 70s

60s

60s

60s

60s

60s

50s

50s

50s

50s50s

40s

40s

40s

40s

40s

40s

40s

30s

30s

30s30s

30s

30s 30s

30s

30s

20s

10s

20s

0s

CRUNCHTIME | By Adrian KabigtingAcross1 Anchor’sdelivery

5 Spread apart,like fingers

10 Los Angelesfootballers

14 Yoked farmanimals

15 Get awayfrom

16 Radiate17 You may pay

with them19 ___ colada20 On cloud nine21 Noble gas

that’s about1% of theatmosphere

22 Main computercomponent

25 Annual golftournament heldin Augusta,Georgia

29 Mimicked30 Shows with

vendor booths31 Common tattoo

site32 Take apart36 High-five sound37 Features of

17-, 22-, 47-and 58-Across

39 Forcibleoverthrow ofa government

40 Belgrade resident41 Frying need42 Pumpkin eater of

rhyme43 Out of control

45 pH scalemeasurement

47 Popularcylindrical snackcontainer

51 Detectionsystem withpings

52 Puzzle with aquotation

57 “___ for AllSeasons”

58 Casino fixture60 Singer Horne61 Seriously

overweight62 Placed, as a bet63 Tavern

frequented byHomer Simpson

64 Rapper Elliott65 Cedar or sequoia

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

s

Solve this puzzle online and discuss it atWSJ.com/Puzzles.

Down1 Branching point

2 Business bigwig,for short

3 Spiders’creations

4 Irritated state

5 Distinct district

6 Makes braids in

7 Clumsy move

8 Put two and twotogether

9 “You are correct!”

10 Xeroxed, say

11 Spanish girlfriend

12 Inconsequential

13 Get to one’s feet

18 Calms down

21 1860s president,familiarly

23 Wyatt of theWild West

24 Tachometerunits: Abbr.

25 State of a sty

26 Wheel connector

27 Practice in thering

28 Kingpins

31 Feel unwell

33 Terse claim ofinnocence

34 Song for acouple

35 Nashville’sGrand Ole ___

37 Like a pleasantsummer breeze

38 Walk in the wild

42 Wine variety

44 Team overseer:Abbr.

45 It may requirean ID badge

46 Biden’s portrayeron “SNL”

47 Bible verse

48 Juliet’s love

49 Ridiculous

50 “Land ___!” (oldcry of dismay)

53 Shaker sprinkle

54 Ski lift type

55 Tennis legendNastase

56 Give up

58 Toy dog, forshort

59 ___-Wan Kenobi

Previous Puzzle’s Solution

The contest answer is FADE TO BLACK. Assuggested by HOLLYWOOD ENDING, taking thelast letters of each word in the six film titles in theclues (“Elf,” “Thelma and Louise,” “Apartment Zero,”“Cobb,” “Hotel Rwanda” and “Jurassic Park”) spellsthe contest answer.

A S N E R A L G I D R O BC H I L E G E E N A I V YT O N I C N A N N Y G O A TS E A E D E N T I T L E

O N U S S L O BF I R T H B E A N B A G S

T I D A L S L E D L E AH O L L Y W O O D E N D I N GO N E R U N S E A V E SR A R E B I R D J O N E S

P A T S M O N KC L U E S M O B S R A PL I K E I S A I D I N A W EA T E N O L T E G E N O AY E S S P I E L N E I L L

hit three balls in the water andshot a 10 on the par-3 12th holebefore finishing at 1 under par.

But Johnson did what he hasn’tso many times in the past: hestraightened himself out. He fol-lowed up his back-to-back bogeyswith a birdie on the par-3 sixth.

The only tension left, at the end,was his quest for the record books.Consecutive birdies on the 13th,14th and 15th holes put Johnson at20-under and set a new standard atthis iconic venue. He was so lockedin that as he walked up the 18thfairway, he turned to his brotherand caddie to ask where he stoodon the leaderboard.

“He had no clue,” Austin Johnsonsaid.

“I did not,” Dustin Johnson said.“I mean, I assumed I had the lead.”

Johnson’s history of miscuesand misfortune had lasted for solong that the sport he had domi-nated had changed dramaticallysince he last won his first and onlymajor. Players like Brooks Koepkaand Bryson DeChambeau emergedas powerful forces, Woods won hisfirst major in more than a decadeat last year’s Masters.

The first time Johnson enteredthe Sunday of a major with a leadhe had his most epic breakdown. Atthe 2010 U.S. Open, he went intothe day with a three-shot lead andfinished five strokes back after a fi-

nal round 82. Then he was tied forthe 54-hole lead at the 2015 and2018 U.S. Opens, too, only to comeup short. Earlier this year, he wasin the same position outright at thePGA Championship before watchingsomeone else take the title.

“There was doubts in my mind,just because I had been there. I’min this position a lot of times,” hesaid Sunday. “Like when am I go-ing to have the lead and finish offthe golf tournament or finish off amajor?”

Koepka, who has won four ma-jors since Johnson’s last, blew allof this into the open when he saidhe indicated that he liked hischances entering the final round ofthe PGA Championship becauseJohnson, the leader, hadn’t takenthese big events. “He’s only wonone,” Koepka said then.

Johnson had never entered Sun-day atop the leaderboard here, buthis knack for having the wrongthings happen at the wrong timeswas most apparent at the Masters.He was playing perhaps the bestgolf of his career entering the 2017Masters, until he reportedly felldown a staircase at the house hewas staying at just before thetournament and had to withdraw.

This year, Johnson’s problemwasn’t unique to him. More than 11million Americans in 2020 havebeen confronted with the same

condition: he tested positive forCovid-19.

His result came a month beforethe start of the Masters and he wasforced into quarantine and out ofaction at a time when he was onceagain playing phenomenally. In hisprior five PGA Tour events, he hadfinished first twice, second twiceand sixth at the U.S. Open.

“You sit in the hotel room fortwo weeks, it doesn’t do a lot forthe golf game,” he said.

But he returned last week—in atune-up he wouldn’t have normallyplayed—without any problem, card-ing a second place finish. That rees-tablished Johnson’s perch as one ofthe favorites at this bizarre, pan-demic edition of the Masters.

He began the week shooting a 65and 70 in the opening two rounds,placing him 9 under par and in afive-way tie for first—tied for themost players ever tied for the leadat the tournament’s midpoint.

Then, with a 65 in the thirdround, he became the first player inMasters history to post two roundsof 65 or better in the same week.

All that was left was playing likehe had for the first three days. Af-ter an early scare, he did just thatwith a final-round 68.

There was only one thing left forJohnson to do after he sank his fi-nal putt: slip on the most iconicpiece of clothing in sports.

Augusta, Ga.Since Dustin Johnson won his

first major four years ago, noplayer had experienced such aspectacular series of calamities. Heblew late leads at majors and oncehad to withdraw from the Masterswhen he was at the top of hisgame because he injured himself ina fall. A month ago, he tested posi-tive for the virus that shoved thisyear’s Masters to an unusual spoton the calendar in 2020.

Throughout those years, John-son spent more time than anyoneelse ranked No. 1 in the world—and won exactly zero more majors.When he stepped up to the tee boxon the mostly empty first holehere at Augusta National on Sun-day—to a smattering of applausefrom the handful of people onhand keeping it from being totallysilent—his commanding leadhardly seemed too secure.

It wasn’t. His four-shot leadwinnowed to one after just fiveholes. His history looked to be re-peating itself until he cemented anew piece of history: Dustin John-son is a record-breaking Masterschampion.

Johnson, a 36-year-old Ameri-can and the world’s No. 1 golfer,won this year’s green jacket withan unforgettable showing in an un-usual year. He finished 20-underpar—the lowest Masters scoreever—and five shots clear of Sung-jae Im and Cameron Smith to wingolf’s last major of 2020.

“I’ve had the lead a coupletimes and haven’t been able to fin-ish it off,” he said. “I couldn’t bemore happy, and I think I lookpretty good in green, too.”

The entire tournament was astrange sight. Typically played infront of throngs of fans in April,when Augusta National’s azaleasare in full bloom, the Masters wasone of the first major events post-poned as the Covid-19 pandemicupended both the country and thesports world. Instead, this Masterswas accented by fall color and onlyattended by friends and family ofthe players and members of theexclusive club.

Against this backdrop, Johnsonentered Sunday chasing recordsand his own past. He was 0-for-4in his career when entering a ma-jor with a share of the Sundaylead, but at 16-under par he wasjust two strokes shy of the Mas-ters record, set by Tiger Woods in1997 and matched by JordanSpieth in 2015.

It didn’t take long for the dramato emerge. He mishit shots, mis-fired putts and missed the preci-sion that placed him atop the lead-erboard. After he bogeyed thefourth and fifth holes, he had justa one shot lead. It only took a lookat Woods to see how quicklythings can unravel on this course.The five-time Masters champion

BY ANDREW BEATON

SPORTS

Dustin JohnsonWins theMastersThe world’s No. 1 golfer earned his first green jacket with a record-low score a month after testing positive for Covid-19

BRIANSN

YDER

/REU

TERS

Dustin Johnson won this year’s green jacket with an unforgettable showing in an unusual year. He finished 20-under par—the lowest Masters score ever.

JASON GAY

Jalen Berger runs past Michigan.

GRE

GORY

SHAMUS/

GET

TYIM

AGES

WisconsinCrushesMichigan49-11

Really, what isthere to say?

Email:jason.gay@wsj.com

P2JW321000-0-A01400-1--------XA

THEWALL STREET JOURNAL. Monday, November 16, 2020 | A15

Beijing NeverGot the MemoThe China NightmareBy Dan Blumenthal(American Enterprise Institute, 167 pages, $30)

BOOKSHELF | By John Bolton

W ith Joe Biden’s election now declared by the press,albeit still unacknowledged by Donald Trump, it isappropriate to consider what policies his administration

will pursue starting Jan. 20. Any new president’s national-security policy would be more coherent, consistent andsustained than Mr. Trump’s. The risk with Mr. Biden is not thathis policy will be chaotic, but that it will be badly misguided.

One thing is certain: China is the most significant inter-national threat that America—and the global West generally—now faces. And that will be true for the rest of this century.Mr. Biden’s real views on dealing with China are obscure,more collateral damage from an election campaign that rarelydebated foreign and defense policy in any substantive way.

Much remains to be seen, especially in light of China’sresponsibility for worsening the coronavirus pandemic by itsconcealment and disinformation. Beijing’s disingenuousnesshas worsened U.S. public opinion about China, a shift echoedworld-wide, potentially far more negatively than the adverse

reactions to the 1989 Tianan-men Square repression.

Dan Blumenthal of theAmerican Enterprise Institutehas stepped into this void with“The China Nightmare: TheGrand Ambitions of a DecayingState.” Serious practitionersand students of U.S.-Chinarelations will need to reckonwith his analysis.

Mr. Blumenthal’s approachwill catch many by surprise.He says plainly that “China hastaken advantage of Americancomplacency.” He rejects the

conventional thinking that China’sdomestic economy is still moving from strength to strength,thereby providing Chinese president Xi Jinping and theCommunist Party with the wherewithal to insist on China’scentrality in Asia and to challenge the U.S. globally. Indeed,it is key to Mr. Blumenthal’s “China nightmare” thesis thatMr. Xi’s domestic policies (and those of his immediate prede-cessor, Hu Jintao) have rolled back many of the dramatic,market-oriented reforms of the Deng Xiaoping era in favor ofincreased state control. The Xi regime is impairing China’seconomic growth (and any prospect for an innovation-basedeconomy) and laying the basis for failure internationally.Mr. Blumenthal writes that the main thesis of his book “isthat despite (or perhaps because of) China’s growing internalweaknesses, it is pushing forward grand strategic ambitions.”China is not the juggernaut of Wall Street financiers’ imagi-nations, but that doesn’t make its expansionism less a threat.

Mr. Blumenthal challenges received wisdom in other ways.Contrary to the prevailing mantra of China’s “peaceful rise,”his analysis stresses that Mao Zedong and his successorsrepeatedly used military force against their geographicalneighbors. They are doing it today, from the East and SouthChina Seas to the “line of actual control” on the disputedfrontier with India.

Domestically, the Xi regime is, among other things,engaging in armed repression against ethnic minorities likeTibetans and Uighurs; crushing dissent in Hong Kong (andthereby violating the “handover” agreement with the U.K.);and initiating a “social credit” system so the state can rankall Chinese citizens in every aspect of their lives, fromjaywalking to dissent. China faces “insurmountable socialproblems,” Mr. Blumenthal writes. But “a weaker China . . .does not necessarily mean a risk-averse China.”

While China’s theft of intellectual property is a hugeproblem for the U.S., Mr. Blumenthal argues further, wecannot ignore the reality that America and Japan purposelytransferred considerable scientific and technologicalknowhow to China. When we assign responsibility for theconsequences of this catastrophic error, we need not look far.

Beijing apparently never received the memo that the ageof empire is over. The Chinese Communists have focused onfully restoring the Qing empire’s boundaries, and no lacunain achieving that goal is more painful than Taiwan’s de factoindependence. In resolutely Orwellian fashion, China hasinsisted so fiercely on its distorted interpretation of the 1972Shanghai Communiqué’s “one China” language that evenAmericans now unwittingly accept China’s version. That suitsBeijing; it doubtless hopes Mr. Biden’s team will find thosepesky Taiwanese as much a nuisance as did Jimmy Carter,for thwarting what Mr. Blumenthal calls China’s “mainstrategic-military priority since the end of the Cold War.”

Taiwan’s example of freedom and openness, Mr. Blumenthalcontends, is enormously disruptive on the mainland. TheU.S. could put the Communist Party in a vise by usinginformation statecraft and other forms of political warfare.China has for years been waging political warfare against us,so it is well past time to implement a counterstrategy. Incyberspace, America is doing precisely that, forestalling orretaliating against efforts to influence our domestic politicaldiscourse, thus building deterrence to prevent such attacksin the future.

While a true grand strategy toward China is urgentlyneeded, Beijing’s obsession with Taipei provides Washingtonan asymmetric response to objectionable Chinese behavior.We can answer its belligerence and intransigence throughdiplomatic or political means, wounding the ChineseCommunists deeply, and simultaneously bolstering Taiwan.

The most consequential step, one I have urged for over20 years, is for America to grant Taiwan full diplomaticrecognition. By all customary international law criteria (adefined territory and population, a capital city, and agovernment carrying out normal governmental functions),Taiwan is a sovereign state, and democratic to boot. Rela-tions between the U.S. and China would chill dramatically,but that is what China should fear, not America. There aresmaller steps Washington could take. We could, for example,regularly receive Taiwanese officials in U.S. governmentbuildings, which would seriously undermine the legitimacyof China’s campaign to force Taiwan into a morganatic union.

Our relations with Beijing will not get easier over thenext four years. Mr. Blumenthal has done the Biden adminis-tration a favor with “The China Nightmare.” Let’s hope thepresident-elect takes advantage of it.

Mr. Bolton, a former U.S. ambassador to the U.N., served asnational security adviser from April 2018 to September 2019.

China is not the juggernaut of Wall Streetfinanciers’ imaginations, but that doesn’tmake its expansionism any less of a threat.

When Nixon Taped Joe Biden

J oe Biden can be heard onthe Nixon tapes. PresidentNixon called Mr. Biden on

Tuesday, Dec. 19, 1972. Thepresident had returned fromCamp David, where he hadbeen planning an ambitioussecond-term government reor-ganization. Delaware’s Sen.-elect Biden had narrowly de-feated a popular incumbentand Nixon ally, Caleb Boggs, 13days before his 30th birthday.He became the second-youn-gest person ever elected to theSenate.

Nixon—who won Delawareby more than 20 points in his49-state landslide—took note ofthis rising star, who had flippeda GOP Senate seat. “If I hadgone to Delaware, it wouldn’thave changed one iota,” Nixonsaid to Chuck Colson aboutBoggs’s defeat. “He just had adamn good young candidaterunning against him.”

On Dec. 19, Nixon saw in hismorning news summary that

Mr. Biden’s wife, Neilia, and 1-year-old daughter, Naomi, hadbeen killed in a car accident theday before in Delaware. Theirsons, 3-year-old Beau and 2-year-old Hunter, survived thecrash with severe injuries.Nixon, who as a child lost twosiblings to tuberculosis, wanted

to call. “Could you get the newsenator from Delaware, Mr. Bi-den, on the phone please?” heasked the White House switch-board operator.

Nixon and Mr. Biden wereboth from hardscrabble fami-lies. They had irascible fatherswho taught them how to pickthemselves up after a defeat.Both were self-conscious thatthey didn’t attend the best

schools. They had an interest inforeign affairs. Like Nixon, Mr.Biden later served as vice pres-ident under a more charismaticpresident. They were neverpart of the in-crowd; that drovethem to work harder.

News of the crash momen-tarily stopped political talk inthe Oval Office. “He wasn’t inthe car?” Nixon asked. “No,sir,” one aide, Ken Cole, said,“He was up on the Hill.”

It was a moment thatbrought two men together whomight otherwise never haveconnected in a personal way.“Hello, Mr. President, how areyou?” Mr. Biden answered.Even senators don’t forgettheir first phone call from apresident. “Senator, I knowthis is a very tragic day foryou,” Nixon said, seeminglysearching for words, “but Iwanted you to know that all ofus here at the White Housewere thinking about you, andpraying for you and also foryour two children.”

“I appreciate that very

much,” Mr. Biden responded.Nixon, about the same age asthe senator-elect’s father,urged him to pick himself upafter the greatest setback ofhis life. “You have the greatfortune of being young,” Nixonsaid. “I remember I was twoyears older than you when Iwent to the House. But themain point is you can remem-ber that she was there whenyou won a great victory, andyou enjoyed it together. Andnow I’m sure that she’ll bewatching you from now on.Good luck to you.”

Nixon, who recognized Don-ald Trump’s potential in 1987,saw Mr. Biden’s 15 years ear-lier. “I appreciate it very much,Mr. President,” Mr. Biden re-sponded. “I appreciate yourcall. I appreciate it.”

Mr. Nichter is a professor ofhistory at Texas A&M Univer-sity—Central Texas and authorof “The Last Brahmin: HenryCabot Lodge Jr. and the Mak-ing of the Cold War.”

By Luke A. Nichter

In 1972, the presidentcalled the senator-elect ‘a damn goodyoung candidate.’

OPINION

Apple is mak-ing its firstMac comput-ers since 2005without an In-tel micropro-cessor. In-stead, thecompany an-nounced lastweek, Macswill use Ap-

ple’s own M1 processor, fabri-cated by TSMC, the TaiwanSemiconductor ManufacturingCo. Hey, nothing personal, In-tel—by now the whole indus-try knows you botched yourtransition to sub-10-nanometerchips and are still behind. Butthis has implications way be-yond computing.

If Intel is a few years be-hind, China’s lag may be closerto a decade. In conjunctionwith formulating its 14th FiveYear Plan, Beijing put out anofficial communiqué (I lovethat word!) previewing its“protracted battle” with theU.S. and stated, “Technologyself-reliance is the strategicsupport for national develop-ment.” What’s scary is thatChina may have to draw thisbattle line right through Tai-wan, where Apple gets its pro-cessors. We now see headlineslike this in the Asia Times: “UStech giants exposed if Chinatakes Taiwan.” Ya think? Let’sbreak this down.

To begin, note that last yearChina produced only 16% ofthe semiconductors it con-sumed domestically. In 2014,China announced a NationalIntegrated Circuit Plan promis-ing to spend $150 billion to ex-pand local semiconductor

China Is Losing Its Bet on Chipsmanufacturing. It didn’t workbecause you can’t throwmoney at the problem. Theworld is littered with compa-nies (AT&T, General Motors)and countries (France, Italy,Russia) that failed at semicon-ductor production. It takesstate-of-the-art equipment andhomegrown expertise.

Second, to produce wicked-fast chips for smartphones, 5Gand certainly the latest preci-sion weapons, you need fabri-cation facilities, or fabs, thatcan turn out 7- or even 5-nano-meter chips, which isn’t easyto do. According to MikeBrown, director of the Penta-gon’s Defense Innovation Unit,“50% of advance semiconduc-tor production is in Taiwan.”The rest is in the U.S., SouthKorea and Israel.

Third, the Trump adminis-tration cut off China’s Huaweifrom buying advanced chipsmade by TSMC. Except for In-tel and Samsung, most every-one uses TSMC, including U.S.companies Nvidia and Ad-vanced Micro Devices.

Fourth, for about five years,Intel has been stuck at 14-nanometer chips. This getsconfusing: I spent most of myearly career tracking the chipbusiness, and I still get head-aches digging into their guts.What Intel calls 14 nanome-ters, TSMC calls 10 nanome-ters. To get to sub-10, you needto use photolithography withextreme ultraviolet light, orEUV, to etch tiny lines ontochips. Intel has said it won’tstart producing 10-nanometerchips (the equivalent ofTMSC’s 7 nanometers) untillate 2021. Intel may even buy

chips from TSMC!Fifth, China has many

partly state-owned semicon-ductor companies, like theSemiconductor ManufacturingInternational Corp., or SMIC,but none have caught up toTSMC because of another fourletters, ASML. This is theDutch equipment companythat makes the only EUV pho-tolithography machines. Thisfrom ASML: “EUV lithographyuses light with a wavelength of

just 13.5 nanometers (nearly x-ray level), a reduction of al-most 14 times that of the otherenabling lithography solutionin advanced chipmaking, DUV(deep ultraviolet) lithography,which uses 193-nanometerlight.” Oh, and ASML is not al-lowed to sell to China for de-fense reasons. So for now,China is locked out of sub-10-nanometer technology. Sure, itcould invent its own EUV, butthat might take a decade.

Finally, geopolitics steps inwith a lot of what-ifs. IfChina’s self-reliance initiativefails, and a Biden administra-tion continues an advancedchip embargo—which itshould—China would be in abind, much as the 1941 oil em-bargo of Japan may haveforced its hand. China’s mili-tary, in an arms race with theU.S., has to be nervous about

being locked out of sub-10-nanometer chips. Beijing islikely gaming out the costs andbenefits of bringing Taiwan’scapacity under its control,even as the U.S. weighs de-fending it: TSMC has five fabson a single campus, HsinchuScience Park.

But even that bold stepwould likely fail almost rightaway. Unlike an assembly lineor an oil refinery, making chipsis fickle. The formula might bewritten down but is really inthe head of TSMC’s engineersand is tweaked almost daily. ASilicon Valley engineer onceaccidentally spilled ink into afab’s water supply—and outputyields went up! A forced Tai-wan takeover would crateroutput even if China broughtin mainland engineers. It’smore art than science.

After a forced takeover, thenext plausible fear is a fewwell-placed Chinese missilestaking out half of the world’sadvanced chip production, andof course a big chunk of theglobal economy. But the shockwaves from that move woulddamage China’s economy evenmore than the pandemic did.Still, I hope TSMC factoriesare guarded by banks of Pa-triot missiles. I’d put some ofthose around ASML’s Dutch fa-cilities too.

It may take a few years, butIntel will catch up. China maytoo. Meanwhile, it’s smart todiversify where advancedchips are made. The Trumpadministration got TSMC toagree to build a fab in Arizona,spending $12 billion by 2029.That’s a start.

Write to kessler@wsj.com.

An attack on Taiwan,the top manufacturer,would roil industryand the world.

INSIDEVIEWBy AndyKessler

When U.S. rat-ification ofP r e s i d e n tTrump’s re-fo rmu la tedNorth Ameri-can FreeTrade Agree-ment was stillin doubt, Mex-ican PresidentAndrés Ma-

nuel López Obrador put in agood word for it.

In November 2019 heboasted that he had sent a let-ter to House Speaker NancyPelosi explaining that approvalof the United-States-Mexico-Canada Agreement was “in theinterest of the three peoples,the three nations.”

The U.S. Congress ratifiedthe agreement in Decemberand it went into effect in July.But now AMLO—as the Mexi-can president is known—wantsto treat the USMCA like a buf-fet, taking for Mexico what helikes but having none of whathe doesn’t.

What he likes, he said lastweek, is that investors nowflock to Mexico because “theNorth American market is as-sured” and “this means jobsand well-being.” This was areference to the hundreds ofbillions of dollars in manufac-turing exports and agriculturethat now flow north fromMex-ico, duty-free, every year.

But in the same remarksAMLO repeated his belief thatthe agreement doesn’t requirean open Mexican energy mar-ket because Mexico retains its“exclusive domain” over its re-sources.

Mexico’s Assault on Energy InvestorsThat’s not how energy in-

vestors read the USMCA, andthey’ve begun to push backagainst AMLO’s economic na-tionalism. In an Oct. 22 letterto Mr. Trump, more than 40members of the Congress fromboth sides of the aisle com-plained that actions taken byAMLO’s government “threatenU.S. energy companies’ invest-ment and market access andundermine the spirit” of theUSMCA. A storm is brewing.

Mexico’s 2014 constitutionalreform opened the country’selectricity and oil-and-gasmarkets to nonstate inves-tors—foreign and domestic.Since then private capital hasflowed into oil exploration,gasoline and electricity.

But open markets conflictwith AMLO’s goal of revivingstate-owned oil companyPetróleos Mexicanos (Pemex)and the national electricitycompany, CFE. Neither enter-prise is up to the challenge ofcompetition and both are shorton capital.

So to help his nationalchampions, the Mexican presi-dent has spent the past twoyears putting his thumb on thescales in favor of the behe-moth state energy companies.This includes everything fromslow-walking permits for gaso-line stations and refusing non-discriminatory access to infra-structure to blocking thestartup of new power stationsand suspending auctions anddevelopment on oil and gasfields.

Pemex and CFE continue toflounder. Bloomberg has re-ported that in the first 21

months of AMLO’s presidency,Pemex gave up some 13% ofMexico’s gasoline market toprivate concerns, adding that“at the end of August, privatecompanies were supplyingabout 17.5% of total gasolinevolumes” and “approximately27% of diesel.” In response, thegovernment has begun tomove more aggressively insupport of its darlings.

In June Mexico’s competi-tion commission—an indepen-dent regulatory body—went tothe Supreme Court, allegingthat a new federal electricitypolicy announced in May is an-ticompetitive because it doesn’ttreat CFE’s rivals equally, andthat it oversteps executive au-thority. A high-court stay hasbeen upheld on appeal, pendinga ruling on the policy.

This is a rare, and likelytemporary, setback for Mr. Ló-pez Obrador, who has success-fully purged most independentinstitutions and packed themwith loyalists. He now controlsthe energy regulator and thehydrocarbon commission. Hesuccessfully got rid of onemember of the Supreme Court,which no longer enjoys theprestige of independence. Thecompetition commission re-mains independent, but it’s anoutlier.

On June 22 Mr. López Obra-dor reportedly met with sometwo dozen regulators and offi-cials to present a 17-point planfor saving Pemex and CFE, in-cluding a proposal to end newpermitting for competitors.The document has since beenleaked. AMLO has also saidpublicly that he is ready tochange the constitution to pro-tect state control of energy.

This implies a rollback ofMexico’s 2014 energy reform.By demagoguing economic lib-erals, he may win popular sup-port for it. But an effort toprotect state companies at theexpense of private investorswould likely contravene Mex-ico’s USMCA commitments.

The agreement recognizesMexico as the sole owner of itsnatural resources. But in mat-ters related to state-owned en-terprises, it says Mexico’s lawsmust remain consistent withobligations it has under al-ready-ratified free-tradeagreements. This is a referenceto Mexico’s membership in theTrans-Pacific Partnership,which commits signatories toan open market in energy, non-discrimination in trade and in-vestment, and the prohibitionof indirect expropriations. Theinvestor-state dispute-settle-ment provisions in energy,telecom and infrastructure inMexico that were in Nafta areretained in the USMCA.

The upshot is that if AMLOwants Mexico’s duty-free ac-cess to the U.S. and Canada toremain intact, energy competi-tion will have to become partof his vocabulary.

Write to O’Grady@wsj.com.

AMLO tries to treatthe North Americantrade pact like asmorgasbord.

AMERICASBy MaryAnastasiaO’Grady

P2JW321000-0-A01500-1--------XA

A16 | Monday, November 16, 2020 THEWALL STREET JOURNAL.

Biden Will Benefit From Trump’s Covid WorkHolman Jenkins contends that “It’s

Biden’s Virus Now” (Business World,Nov. 11). From a policy standpoint, Mr.Jenkins is correct: Come January, itwill be up to the Biden administrationto eradicate, or at least manage, thecoronavirus, a task that will doubtlessbe aided by the vaccines developed un-der President Trump’s unacknowledgedOperation Warp Speed.

From a political standpoint, how-ever, Mr. Jenkins couldn’t be morewrong—this will never be “Biden’s vi-rus.” To the extent that Joe Biden’s ad-ministration fails in its struggle againstthe pandemic, Covid will remain Presi-dent Trump’s virus and the Biden fail-ure will be blamed on PresidentTrump’s letting the virus get out ofcontrol. On the other hand, to the ex-tent that the new administration suc-ceeds in its efforts against the corona-virus, the result will be portrayed asthe enlightened Biden team’s triumphover the former administration’s in-competence and “denial of science” inthe face of the Trump virus.

Most of us don’t care who gets thecredit, we just want the Covid situation

ameliorated so we can get back to nor-mal. But in Washington, where politicsis everything, this will never be Biden’svirus, it will always be Mr. Trump’s vi-rus and hence a win/win for Mr. Biden.

MARK M. QUINNNaperville, Ill.

Mr. Jenkins nails it about the num-ber and importance of undetectedCovid cases. The CDC in June con-firmed that undetected Covid cases areabout 10 times greater than detectedcases. Given our 10 million detectedcases and adding ten times that for un-detected cases, our likely immunity is110 million people. Add this to another50 million that develop an immunity bynext May plus 70 million vaccinationsby then and we’re at the level neededfor herd immunity according to “Na-ture Communications.”

Herd immunity is the only way tostop a virus. Fortunately, better treat-ments have significantly reduced thedeath rate. With Operation Warp Speedvaccines we may get there even sooner.

ED KAHLWoodside, Calif.

LETTERS TO THE EDITOR

“Shouldn’t I have a deskor something?”

THEWALL STREET JOURNAL

Letters intended for publicationshould be emailed to wsj.ltrs@wsj.com.Please include your city, state andtelephone number. All letters are sub-ject to editing, and unpublished letterscannot be acknowledged.

A Short History of Congressional ObstructionWilliam Galston sets forth policy

issues in “Where Biden and McCon-nell Can Agree” (Politics & Ideas, Nov.11) assuming that Republicans main-tain a Senate majority and GOP votesare needed to advance Joe Biden’sagenda. Mr. Galston warns that if Sen.Mitch McConnell fails to compromise,he “risks opening his party to chargesof obstructionism—and losing thesupport of moderate and independentvoters who deserted Mr. Trump.”

Republicans in Congress have beentypecast by news media as obstruc-tionists since Ronald Reagan waspresident. For a half-century beforethe Reagan years, the GOP had so lit-tle power in Congress that obstruc-tion was rarely an option. The narra-tive for the last four decades is thatRepublicans are born obstructionists,while Democrats are innately proneto compromise and forward progress.Democrats spent the last four years,

especially the last two, doing every-thing in their power to obstruct GOPinitiatives, but most journalists re-ported that just-say-no Sen. McCon-nell and obstinate President Trumpstood in the way of legislativeachievements. Consider, though, thestimulus package that was stalled inCongress before the election. Republi-cans offered a $500 million package,eventually upping it to $1.8 trillion.House Speaker Nancy Pelosi refusedto budge on a $2.2 trillion spendingdemand. Was 82% of a GOP stimulusloaf in October not better than noloaf at all? Were Democrats blamedby reporters for being obstruction-ists? Of course not; ornery Sen.McConnell was the culprit.

The only way for Republicans tododge the obstructionist label is tobecome Democrats.

ADAM GRAHAMCharleston, S.C.

Philadelphia Puts an Ideology Ahead of KidsPhiladelphia’s banning of Catholic

Social Services’ foster care and adop-tion services isn’t antireligious cru-elty, it is antichild cruelty (“Philadel-phia’s Antireligious Cruelty” byThomas Paul, Houses of Worship, Nov.6). The longstanding legal standardfor foster-care placement and adop-tion has always been “the best inter-ests of the child.” Philadelphia andother jurisdictions have turned thislegal standard on its head to promoteother values. The only criteria for theplacement of children should be a sta-ble home in which the child has thebest chance of thriving. As Mr. Paulrightly points out, there are plenty ofagencies willing to place children inalternative-lifestyle homes.

If Catholic Social Services pro-vides good, stable homes for childrenin which they can thrive, that shouldbe the only criterion. If same-sexcouples can fulfill this responsibility

as well as heterosexual couples, thatdoesn’t mandate that any given childbe placed with such a couple or asame-sex-oriented individual. Theymay be candidates to serve as fosterparents, but no one has a legal rightto have a child placed in his, her ortheir home. Children shouldn’t beused as pawns toward serving subor-dinate objectives.

Society has taken a step forwardin attempting to eradicate discrimi-nation against and the persecutionof individuals with a same-sex orien-tation by protecting their legalrights and affirming their humandignity. Philadelphia has taken twosteps backward by confusing thatgoal with acting in the best interestsof children.

REV. PHILLIP J. BROWN, PSSPresident-Rector

St. Mary’s Seminary & UniversityBaltimore

Public Workers Need to FaceThe Private-Workers’ Music

“States, Cities Cut Retiree HealthPerks” (Business & Finance, Nov. 9)lays out the grim economic realityaffecting state and city retiree healthplans. While this had been evidentfor some time, it needed the Covid-19pandemic’s impact on state and cityfinances to finally show that thesebenefits offered to public-sectormembers are no longer sustainable.

More than a generation ago theprivate sector, for the most part, de-cided to curtail such largess for itsemployees, as well as to replace de-fined-benefit pension plans withthose based on defined contribu-tions. As painful as it was at thetime, the private workforce haslearned to adapt to the new benefitslandscape.

Now it is time for the public sec-tor to catch up with economic reality.

RICHARD J. PEARSEBethesda, Md.

Pepper ...And Salt

The World Bank Should Lead in Debt ReliefThere was a stark omission in David

Malpass’s “To Cope With Covid, theWorld’s Poor Need Debt Relief” (op-ed, Nov. 5). While he is right in his ar-gument that the world’s poorest coun-tries urgently need debt relief fromcreditors, it was stunning to see Mr.Malpass fail to include the World Bankas a creditor. Between now and theend of 2021, the world’s poorest coun-tries will owe $18.2 billion to the mul-tilateral banks including the World

Bank and IMF. The aftershocks ofCovid-19 have been devastating formany African countries who are beingforced to make impossible choicesover whether to pay off debt or investin fighting the pandemic and stabiliz-ing their economies. As president ofthe World Bank, Mr. Malpass rightlyadvocates that the G-20 must do moreon debt relief, but the World Bank hasyet to take any steps to suspend debt-service payments. By the World Bank’sown estimates, the pandemic could re-sult in 150 million more people fallinginto extreme poverty. Mr. Malpassknows that debt service relief is a vitaltool to help stem the pandemic’s im-pact, but the bank still hasn’t used it.

TOM HARTNorth American Executive Director

ONE CampaignWashington

Why Democrats Nearly Lost the House

D emocrats nearly lost their majority inthe House on Nov. 3, and their post-election recriminations show the rea-

son. They think their problemwas their packaging insteadof their policies.

Democrats have alreadylost eight seats net and couldlose as many as 13 after thecounting ends. They lost twoin South Florida, at least two in California, andhere and there across the country in placesthey had gained in 2018. They failed to pick upseats in Texas, Ohio or Florida, which they hadtargeted. We also count some 26 seats so farthat Democrats won with 52% of the vote orless, despite a huge fund-raising advantage.

i i iThe result may be the smallest Housemajor-

ity since 1919, and it’s especially shocking asDemocrats reclaimed theWhite House. Joe Bi-den leads Donald Trump in the national popularvote by about 3.6%, while House Democraticcandidates are ahead by only 2.1% (amargin thatexaggerates the Democratic edge becausemoreDemocratic seats were uncontested). HouseSpeaker Nancy Pelosi blamed the losses onMr.Trump’s ability to turn out Republicans, but theresults show that Mr. Biden is more popularthan are House Democrats.

Democrats are now brawling over the reason,with progressives and swing-state Membersblaming each other. Progressives refuse to takeany responsibility. A post-election memo fromthe left-wing Justice Democrats warned Demo-crats against retreating from their positions onculture or economics, claiming that their agendadrove turnout. It quoted a NewYork Times arti-cle saying, “the key is to link racism and classconflict.”

New York Rep. Alexandria Ocasio-Cortezblamed her defeated colleagues for not know-ing how to run smart digital campaigns andhow to sell progressive policies. She told CNNthe problem is a weak party operation thatneeds to become “stronger and more resilientto Republican attacks.” She isn’t backing downfrom the Green New Deal or cutting funds forpolice, though GOP ads hammered Democratson both issues in swing districts.

Swing-state Members are more realistic inthat they recognize the damage from GOP adsthat attacked Democrats for socialism, defund-ing the police, raising taxes and eliminating oiland gas drilling. But these Democrats also seemto think it comes down to packaging.

“We need to not ever use the word ‘socialist’or ‘socialism’ ever again,” Virginia Rep. Abigail

Spanberger told her colleagues in ameeting af-ter the election. “We lost goodmembers becauseof that.” She won her seat with 50.9%.

But the socialist chargeworked because in its policyessence it was true. HouseDemocrats turned sharplyleftward in the last two yearsas they indulged progressivepriorities across the policy

spectrum. They voted for huge new tax in-creases, vast new spending, a gradual end tofossil fuels, and the most radical labor agendasince 1935.

The House didn’t vote to defund the police,but Member after Member indulged BlackLives Matter, which does want police budgetsslashed. Max Rose, the Democrat from StatenIsland, joined a BLM march that featured in aRepublican attack ad. He lost.

The problem isn’t the Democratic message;it’s the reality of their program. You can dis-guise your policies by not calling them “social-ist,” but voters will still eventually figure outwhat those policies mean in practice. Theyknow the Green New Deal means more expen-sive energy and an end to fracking. They knowMrs. Pelosi refused Mr. Trump’s offer of even$1.8 trillion in Covid relief as too little.

They also know that Senate Democratstalked openly about ending the legislative fili-buster, and that House and Senate Democratsadvocated packing the Supreme Court. Nowonder they elected more Republicans in theHouse and Senate as a check on these policies.

i i iIf Democrats ignore this lesson, they’ll set

themselves up for further losses in 2022. Mrs.Pelosi rules with an iron fist, but even she willfind it hard to navigate her divided caucus witha narrowmajority. Centrists will want to showtheir independence from the left. Yet if Mrs.Pelosi moves too far in the swing-seat direction,the progressives may not go along.

Mrs. Pelosi might have to make concessionsto Republicans to pass some bills. Perhaps shecan consult former Republican Speaker JohnBoehner for advice, since the progressivescould become the equivalent of the GOP Free-dom Caucus of 2011 and 2012.

Meanwhile, GOP gains in state legislativeraces mean that Republicans might gain sev-eral seats from the reapportionment of Housedistricts in 2021. GOP strongholds will gainseats, while New York could lose two and Cali-fornia could lose one. If Democrats want tohold the House in 2022, they will have to learnthe right policy lessons from 2020.

The problem istheir policies, nottheir marketing.

Rush for the Afghan Exits?

P resident Trump has at least twomonthsleft in office, and he can use it for goodor ill. One decision we hope he avoids,

for the sake of the country and his own legacy,is a last-minute, rushed withdrawal of U.S.troops from Afghanistan.

It’s no secret thatMr. Trumpwants to presideover troop withdrawals by Jan. 20 if not byChristmas—in Afghanistan and maybe else-where. The President thinks this is an unfinishedpart of his 2016 campaignpledge to stop “endlesswars,” and he’s been frustrated that his advisershave sometimes opposed his attempts.

“We should have the small remaining num-ber of our BRAVE Men and Women serving inAfghanistan home by Christmas!” Mr. Trumptweeted on Oct. 7. His national-security adviserqualified that tweet as aspirational, but afterthe election the President fired Defense Secre-taryMark Esper, who hadwarned about a with-drawal at this time.

Then last weekMr. Trump’s choice for actingSecretary of Defense, Christopher Miller, sentamemo to U.S. forces that, among other things,said “Ending wars requires compromise andpartnership. We met the challenge; we gave itour all. Now it’s time to come home.” A retiredArmy colonel, DouglasMacgregor, is an adviserto Mr. Miller and has been pushing for a com-plete withdrawal from Afghanistan.

That’s bad advice, and the timing makes itworse. The U.S. has about 4,500 troops left inAfghanistan, which was the numberMr. Trumpagreed to earlier this year based on the recom-

mendation by the commander in the field.That’s the minimum required for the missionof supporting Afghan forces against the Tali-ban, and intelligence and counterterror opera-tions against al Qaeda and Islamic State.

Mr. Trump is considering a cut to 2,500troops within weeks, which is better than zerobut not much better. That might be sustainableif done in gradual fashion in consultation withallies and the Afghan government. But if it’srushed to meet Mr. Trump’s political deadline,it will demoralize the Afghans, who are doingthe fighting and the dying.

Mr. Trump can take credit for reducing theU.S. footprint and inducing the Taliban to nego-tiate with the Afghan government. But the Tali-ban haven’t lived up to their promise to reducethe violence, which is getting worse. If they seeMr. Trump withdraw further, they will haveeven less incentive to negotiate in good faith.A complete withdrawal all but guarantees a Tal-iban-ISIS assault on Kabul, and a 1975 Saigon-style defeat and humiliation is possible. Thatwould betray the blood and treasure the U.S.has spent for 19 years.

That can’t be the legacy Mr. Trump wants,and he won’t be able to blame it on his succes-sor if Joe Biden becomes President on Jan. 20.Mr. Trump will have made the fateful decisionto abandon the field. American troops in Af-ghanistan protect U.S. national interests againstthe revival of a terror sanctuary. The only bene-ficiaries of a U.S. withdrawal nowwould be theTaliban, Iran and Islamic terrorists.

Newsom’s Covid Laundry

California Gov. Gavin Newsom has beencaught violatinghis own social-distancingrules by attending a birthday party at a

Napa Valley restaurant with a dozen or sofriends—even as some twomillion in his state areunemployed thanks to his strict virus rules.

The San Francisco Chronicle reported Fridaythat on Nov. 6 Mr. Newsom celebrated a politi-cal adviser’s 50th birthdaywith at least a dozenpeople frommore than three households at thefamous French Laundry restaurant (typical din-ner: $350 excluding wine).

Last month the Governor issued rules limit-ing attendance at all private gatherings, eventhose outdoors, to three households. Peoplewere also required to maintain at least six feetof distance from different households at alltimes. Oh, and no shouting, chanting or singing.Good luck muting the kids at Christmas.

New rules on Friday also say peopleshouldn’t play loudmusic or wind instrumentsindoors, which could potentially spread virusdroplets. So Californians will have to celebratea literal Silent Night this Christmas.

We don’t know ifMr. Newsomand his friendssang “Happy Birthday,” but his outdoor get-to-

gether doesn’t seem especially risky eventhough it showed poor leadership. The Governorsaid Friday that while his family “followed therestaurant’s health protocols and took safetyprecautions, we should havemodeled better be-havior and not joined the dinner.”

Nobody should begrudge the Governor forcelebrating a birthday with friends. The prob-lem is that he and many politicians requirethe hoi polloi to follow strict virus rules thatthey don’t abide by themselves. Then theythreaten lockdowns as punishment if the lit-tle people don’t comply.

Washington, D.C., MayorMuriel Bowser trav-eled to Delaware to celebrate Joe Biden’s elec-tion victory even as she told her residents notto travel to other states. Chicago Mayor LoriLightfoot is saying that peoplemust “cancel tra-ditional Thanksgiving plans,” and invite noguests, even as she joined a street party cele-bratingMr. Biden’s apparent victory and spokewith a bullhorn.

Nowonder somany Americans ignore politi-cians and other elites who lecture them aboutwearingmasks and following Covid-19 rules asa moral duty.

REVIEW & OUTLOOK

OPINION

P2JW321000-0-A01600-1--------XA

THEWALL STREET JOURNAL. Monday, November 16, 2020 | A17

OPINION

Austin, Texas

I love California, but I had toleave. I grew up in Fremont,attended Stanford, and havespent most of my adult life inthe San Francisco Bay Area,

founding technology companies likePalantir and Addepar and investingin many others. In 2011 I founded8VC, a venture-capital firm that to-day manages more than $3.6 billionin committed capital. Few top ven-ture capitalists consider living any-where other than California and ahandful of global financial centers,but I am moving myself and dozensof my 8VC colleagues to a new landof opportunity: Texas.

The harsh truth is that Californiahas fallen into disrepair. Bad policiesdiscourage business and innovation,stifle opportunity and make life inmajor cities ugly and unpleasant.

Forty years ago my parents cameto California because you could ac-complish anything in the GoldenState. Government policy facilitatedthe entrepreneurial spirit. Dreamersand doers could thrive. The burst ofactivity in tech, finance, medicine,energy and many other industrieslasted for decades. But now a statelike Texas provides these opportu-nities without the problems andbaggage California has accumu-lated. Let me mention a few per-sonal examples:

• Public safety. Ill-conceivedcriminal-justice reforms and radicaldistrict attorneys are taking a tollon urban life. Three of my col-leagues’ wives have been harassedand chased by derelicts in San Fran-cisco’s streets, which are litteredwith needles and human waste. Mywife is afraid to walk around thecity with our young daughters. Po-lice often don’t even respond to ha-rassment and property crime, whichhas surged; San Francisco’s prop-erty-crime rate is now the nation’shighest.

California, Love It and Leave It

• Electricity. The wildfire smokethat has blanketed California citiesis one thing. But power outages,which left us stressed about spoilingbreast milk for our daughter, are thedirect result of California govern-ment incompetence. Last year thestate had 25,000 blackouts, and this

year has been even worse. The elec-tricity turns on and off, as in ThirdWorld countries. Meanwhile, Texashas its own energy grid, with a plen-tiful and diverse supply. It’s nice toturn on the lights whenever wewant.

• Responsiveness. In the earlydays of the pandemic in March, 8VCentreated the mayor of San Fran-cisco and city staff to clarify rules toallow our critical employees to workon accelerating Covid-19 testing and

the development of therapeutics.The city didn’t deign to respond.Government officials in Texas, bycontrast, care about business. Theyreturn calls.

• Housing. California’s restrictivezoning laws make it nearly impossi-ble for many essential low- and mid-dle-income workers to live any-where near major cities. In Texas,permissive zoning allows everymember of our staff to live close towork and spend time with friendsand family instead of enduring gru-eling commutes.

That’s not all. The California gov-ernment is beholden to public-em-ployee unions and spending is out ofcontrol. A broken environmental re-view process means it takes a de-cade of paying lawyers to build any-thing. Legislation makes itimpossible for businesses to hirecontractors without an exemption—granted by friends in the legislature,as with the music industry, or wonby spending hundreds of millions ona referendum, as gig-economy com-panies with drivers just did. Thisisn’t how business is done in devel-oped countries.

Politics in the state is in manyways closed off to different ideas.We grew weary of California’s intol-erant far left, which would ratherdemonize opponents than discusshonest differences of opinion.

I will continue investing in SiliconValley startups and fighting to helpthe state. I’m optimistic that overthe long run, California can return tothe values that once made it the dy-namic center of global technologyentrepreneurship. But until prioritieschange, the state will keep losing itstop builders and creators.

In 2000 or 2010, it made sense tobuild in San Francisco. That’s whereall the talent was, but not anymore.Except for a few concentrated partsof advanced biotech and software in-frastructure technology, talentedpeople are building top technologyfirms all over the country. This dis-aggregation of talent will spreadprosperity across the U.S. Some ofmy most prolific entrepreneurialfriends from California have movedwith us here to Texas. Others haveleft for Miami, Nashville, Las Vegasand other great American cities. Sixof our portfolio companies are al-ready based in Austin and employhundreds of people.

Our investments follow the talent.We’re betting that the future ofAmerica is going to be built in themiddle of the country, in places withgood government and a reasonablecost of living. In other words, placeslike Texas.

My firm has a motto: “The worldis broken, let’s fix it.” We invest intechnologies and people who willtransform major industries and im-prove the lives of millions. It’s tragicthat California is no longer hospita-ble to that mission, but beautifulthat Texas is. Our job as entrepre-neurs and investors is to build thefuture, and I know of no better placeto do so than Texas.

Mr. Lonsdale is a general partnerat the venture-capital firm 8VC.

By Joe Lonsdale

CHADCR

OWE

Bad policy has made thestate unlivable, so I movedmy family and my venture-capital firm to Texas.

Let theTransitionProceed

By Charles Lipson

PUBLISHED SINCE 1889 BY DOW JONES & COMPANYRupert Murdoch

Executive Chairman, News CorpMatt MurrayEditor in Chief

Robert ThomsonChief Executive Officer, News Corp

Almar LatourChief Executive Officer and Publisher

EDITORIAL AND CORPORATE HEADQUARTERS:1211 Avenue of the Americas, New York, N.Y., 10036Telephone 1-800-DOWJONES

DOW JONES MANAGEMENT:Ramin Beheshti, Chief Technology Officer;Kamilah Mitchell-Thomas, Chief People Officer;Edward Roussel, Chief Innovation Officer;Christina Van Tassell, Chief Financial Officer

OPERATING EXECUTIVES:Jason P. Conti, General Counsel;Frank Filippo, Print Products & Services;Kristin Heitmann, Chief Commercial Officer;NancyMcNeill, Corporate Sales;Thomas San Filippo, Customer Service;Josh Stinchcomb, Advertising Sales;Suzi Watford, Chief Marketing Officer;JonathanWright, International

Professional Information Business:Ingrid Verschuren, Deputy Head

Neal Lipschutz Karen Miller PensieroDeputy Editor in Chief Managing EditorJasonAnders,Chief News Editor; Louise Story,ChiefNews Strategist, Product & Technology OfficerThorold Barker, Europe; Elena Cherney, Coverage;Andrew Dowell, Asia; Anthony Galloway, Video &Audio; Brent Jones, Culture, Training & Outreach;Alex Martin, Print & Writing; Michael W. Miller,Features & Weekend; Emma Moody, Standards;Shazna Nessa, Visuals; Matthew Rose,Enterprise; Michael Siconolfi, Investigations;Stephen Wisnefski, Professional NewsGerard Baker, Editor at LargePaul A. Gigot, Editor of the Editorial Page;Daniel Henninger, Deputy Editor, Editorial Page

WALL STREET JOURNAL MANAGEMENT:Joseph B. Vincent, Operations;Larry L. Hoffman, Production

It’s Now Up to Governors to Slow the Spread

T he latest U.S. Covid surge isn’tconfined to certain regions likethe ones in the spring and

summer. It’s hitting the whole nationhard. Hospitalizations reached70,000 this week, with more than13,000 patients in intensive-careunits. Health systems in communitieslike Minot, N.D., and El Paso, Texas,are overburdened, and others may bein the same position soon if gover-nors don’t work quickly and acrossstate lines to slow the spread.

In previous waves, health-careworkers from less-affected areaswere deployed to New York and theSouth. It isn’t possible to send anarmy of health-care personnel intohot zones when the entire country isa hot zone. Another 15% of the U.S.population could be infected by theend of January, on top of the 15% thathas already been infected. The ge-netic epidemiologist Trevor Bedfordestimates that such a course couldresult in about 200,000 more deaths,assuming an improved infection fatal-ity rate of about 0.45%.

The Covid response has been ajoint effort, with the federal govern-ment working to support statesoverseeing their own local mitiga-tion efforts. But the White House ischanging hands during the mostcritical point of the pandemic, andit’s a particularly important time forleadership from governors, mayorsand county administrators. Stateand local actions, supported by im-proved treatments, can help build abridge to vaccinations and morewidespread immunity in 2021.Americans are understandably tiredof Covid, but accepting temporaryrestrictions now will help preventeven more painful personal and eco-nomic disruptions.

A patchwork of local policieswon’t be potent enough. Peoplemove across borders and bring thevirus. Governors and local leadersshould first reinforce steps known

to be effective: wearing a qualitymask, avoiding gatherings and main-taining social distance, especially in-doors. Halloween gatherings con-tributed to the current spread, andThanksgiving will be no differentwithout more vigilance. At leastwhile infections are widespread andsurging, governors and local leadersshould mandate the use of masksand impose clear and consistentplans to restrict gatherings. Theyshould remind people to avoid largegroups at Thanksgiving and stayhome if possible.

This doesn’t mean broad lock-downs. State and local leaders cantie restrictions to expected hospitalstrain, tailored to hot spots and notnecessarily the entire state. Restric-tions can focus on known sources ofspread, such as bars and nightclubs.

Congress should help by support-ing affected businesses with anotherround of paycheck protection. A pri-ority should be helping schools thatare open, especially elementaryschools, where the risk of infectionis lower and the benefits of in-classinstruction are considerable.

Governors should also work withlocal leaders to use new counter-

measures that have only recently be-come available. This includes a valu-able new treatment: monoclonalantibodies, man-made versions ofnaturally occurring ones that neu-tralize the virus. But these drugs arechallenging to administer, requiringspecial sites for infusions and public

education. People in high-riskgroups with symptoms should gettested and treated before their con-dition deteriorates. Governors needto get the message out that Covid isnow a treatable condition at theearly stages, and work with localleaders to ensure that access to anti-bodies is available, especially in un-derserved communities.

Rapid testing is also more widelyavailable, which allows for better de-tection of outbreaks in settingswhere people must be together, such

as assisted-living facilities, essentialworkplaces and schools. With somuch coronavirus spread throughpeople without symptoms, especiallyyounger people, it’s now possible toconsider using these tests routinelyas one more tool. Governors canwork together to develop a consis-tent national screening protocol forcontaining outbreaks.

Winter was always going to bethe hardest time with the virus, butcoordinated state and local leader-ship can make it more manageable.Many governors have taken aggres-sive steps to slow the spread, butstates that don’t act quickly put theentire nation at risk.

Dr. Gottlieb is a resident fellow atthe American Enterprise Instituteand was commissioner of the Foodand Drug Administration, 2017-19.Dr. McClellan is the director of theDuke-Margolis Center for Health Pol-icy at Duke University and was FDAcommissioner, 2002-04. Dr. Gottliebserves on the boards of Pfizer and Il-lumina and Dr. McClellan on theboards of Johnson and Johnson andCigna; each company is involved inaspects of the Covid response.

By Scott GottliebAnd Mark McClellan

States should coordinatetheir efforts and close barsand nightclubs—or riskexpensive lockdowns later.

T he more divisive our politics,the more important it is to re-spect the fundamentals of con-

stitutional democracy. Two tenetsare critical: elections in which legalvotes are counted honestly and thepeaceful transition of power. It is ap-propriate to pose legal challenges toan election’s integrity, but not to im-pede the transition.

Two weeks after Election Day,President Trump’s team hasn’t pre-sented compelling evidence againstJoe Biden’s victory. They are assem-bling that evidence and Mr. Trumpsays he sees a path to victory, butthere is no reason to delay the pro-cedures for transferring power to apotential Biden administration.

The main reason to facilitate thetransition is to show that amid deeppolitical division, we can rely onconstitutional norms, proceduresand institutions. The Trump cam-paign has every right to litigate evi-dence of fraud, malfeasance or error.We should care about that evidence,even if it doesn’t change the out-come, because it undermines thehonest elections on which democ-racy depends. Anyone who corruptsthem should face serious prisontime. It’s far more serious than brib-ing your kid’s way into college.

Mr. Trump and his supportershave every reason to ridicule theDemocrats’ hypocrisy about thepeaceful transition of power. TheObama administration lied to theForeign Intelligence SurveillanceCourt, spied on Mr. Trump’s candi-dacy and transition, and desperatelytried to cover its tracks. The Demo-cratic Party and Hillary Clinton’scampaign commissioned the falseSteele dossier and funneled it into areceptive Federal Bureau of Investi-gation, launching a series of investi-gations that hobbled the Trumppresidency. Barack Obama’s adminis-tration launched a baseless crusadeagainst Mr. Trump’s national secu-rity adviser, Mike Flynn, for makinga perfectly legitimate phone call toRussia’s ambassador to the U.S.Holdover officials from the Obamaadministration did all they could toimpede the new administration, in-cluding leaks of classified informa-tion about its actions.

It is an outrage that, four yearslater, we haven’t had a full account-ing of this malfeasance. This delay isall the more noxious because theparty that engineered these abusesis now returning to power. It is rea-sonable to fear that if Democrats re-take control of the Justice Depart-ment, they will be less than zealousin pursuing these crimes.

But the Democrats’ corruption ofthe last transition doesn’t justify theRepublicans’ corrupting this one.With the country so angry, dividedand suspicious, it is vital that the in-cumbent administration do every-thing it can to assist the potentialwinners in case they prevail, asseems likely. While the Trump cam-paign presents its evidence in courtand watches the recount in Georgia,it should give the Biden transitionteam the office space it needs, beginbriefing its national security team,and provide assistance to ensure asmooth handover. This demonstra-tion of good faith is less a legal re-quirement than a constitutionalnorm. Reasserting it now wouldstrengthen our strained public insti-tutions. They need it more than ever.

Mr. Lipson is a professor emeritusof Political Science at the Universityof Chicago, where he founded theProgram on International Politics,Economics and Security.

Trump’s legal challengesare legitimate, but thecountry needs to be readyif they’re unsuccessful.

Does the ACLUWant to Ban My Book?

I never thought book banningwould be respectable in America,much less that I’d be the target,

but here we are. Last Thursday Tar-get stopped selling my book, “Irre-versible Damage: The TransgenderCraze Seducing Our Daughters,” inresponse to two Twitter complaints.

One read: “In 2016, @Target, youreleased a statement affirming yoursupport for transgender customers.@AskTarget why you’re selling abook notorious for its harmful rheto-ric against us. Historically, harmfulproducts have been pulled from thisshelf, and this should be, too.”

The other: “I think the transcom-munity deserves a response from@AskTarget @Target as to whythey’re selling this book about ‘thetransgender epidemic sweeping thecountry.’ ”

That’s a caricature of my view. Ithink mature adults should have thefreedom to undergo medical transi-tion. But teenagers are another mat-ter. Social contagions exist, and teengirls are particularly susceptible tothem. The book takes a hard look atwhether the sudden spike in trans-gender identification among teengirls is yet another social contagionto befall girls who, in another era,might have fallen prey to anorexia orbulimia.

Many transgender adults, includ-ing some I interviewed for the book,agree that teen girls are undergoingmedical transition too fast with toolittle oversight. Others disagree andhave written books. Amid a sea ofmaterial unskeptically promoting

medical transition for teenage girls,there’s one book that investigatesthis phenomenon and urges caution.That is the book the activists seek tosuppress.

“Abigail Shrier’s book is a danger-ous polemic with a goal of makingpeople not trans,” Chase Strangio,the American Civil Liberties Union’sdeputy director for transgender jus-tice, tweeted Friday. “I think of allthe times & ways I was told mytransness wasn’t real & the daily tollit takes. We have to fight these ideaswhich are leading to the criminaliza-tion of trans life again.” Then: “Stop-ping the circulation of this book andthese ideas is 100% a hill I will dieon.”

You read that right: Some in to-day’s ACLU favor book banning.Grace Lavery, a professor of Englishat the University of California, Berke-ley, went further, tweeting: “I DO en-courage followers to steal AbigailShrier’s book and burn it on a pyre.”

This is where leftist extremism,encouraged by cowardly corpora-tions, leads. The market—that is,readers—should determine whatbooksellers carry. My book was con-sistently No. 1 in several categorieson Amazon based on sales. But theonline giant, under pressure from ex-

tremists, refused to allow my pub-lisher to advertise “Irreversible Dam-age” on the site.

At a time when independent book-stores are nearly extinct, chain book-stores are endangered, and Ameri-cans’ movement outside their homesis constrained by a pandemic, ahandful of online retailers have out-size influence over the ideas towhich we have access. And thoseideas are being winnowed in one di-rection.

Robin DiAngelo’s book, “WhiteFragility,” which falsely accuses mil-lions of Americans of being inalter-ably racist, is for sale at Target.com,no matter how many Americans itmight offend. It should be. The no-tion that civil society required a mar-ketplace of ideas was something lib-erals once believed—especially thosewho worked at the ACLU, or taughtat Berkeley.

In response to media attentionand customer complaints, Target re-versed itself; my book is again forsale. But other books will be quietlysuppressed. In an America where theleft has achieved dominance of cul-tural institutions and adopted a ty-rannical opposition to other ideas,where social media extends its reach,and where books are distributed by ahandful of retailers—a book burningdoesn’t even require a populist up-rising. It takes only one online ex-tremist or two to make a book disap-pear. And when that happens, don’tlook to the ACLU to defend you.

Ms. Shrier is author of “Irrevers-ible Damage: The Transgender CrazeSeducing Our Daughters.”

By Abigail Shrier

Target stopped selling itin response to two Twittercomplaints. A professoreven wants to burn it.

P2JW321000-0-A01700-1--------XA

A18 | Monday, November 16, 2020 THEWALL STREET JOURNAL.

*“Number one selling brand” is based on syndicated Irwin Broh Research as well as independent consumer research of 2009-2019 U.S. sales and market share data for thegasoline-powered handheld outdoor power equipment category combined sales to consumers and commercial landscapers. †Amajority of STIHL gasoline-powered units soldin the United States are built in the United States from domestic and foreign parts and components. ©2020 STIHL 20STWF10-12-145111-1

One Thingwe can allAgree onƒSTIHL is Committed to America

real stihl. find yours.stihlUSA.com

We believe the spirit of independence is part ofwhat makes America great. Maybe that’s why moreAmericans pick STIHL over every other brandof gasoline-powered handheld outdoor powerequipment in America*. Our success is built on ourcommitment to American manufacturing in VirginiaBeach, Virginia† and our support of more than 9,000servicing STIHL Dealers across our nation.

P2JW321000-0-A01800-1--------XA

© 2020 Dow Jones & Company. All Rights Reserved. * * THEWALL STREET JOURNAL. Monday, November 16, 2020 | B1

RETAILERS FIND SHEDDING STORES DOESN’T ALWAYS PAY OFF B3

LastWeek: S&P 3585.15 À 2.16% S&PFIN À 8.28% S&P IT g 0.40% DJTRANS À 4.05% WSJ$ IDX À 0.31% LIBOR3M 0.222 NIKKEI 25385.87 À 4.36% Seemore atWSJ.com/Markets

BUSINESS&FINANCE

deep-pocketed investors. Re-bekah Mercer, daughter ofhedge-fund investor RobertMercer, is among the com-pany’s financial backers, ac-cording to people familiar withthe matter. The Mercers havepreviously financed a numberof conservative causes.

After TheWall Street Journalreported on the Mercers’ tieswith Parler, Chief Executive JohnMatze confirmed that Ms. Mer-cer was the lead investor in thecompany at its outset and saidthat her backing was dependenton the platform allowing usersto control what they see.

Some of the people familiarwith the matter said Parler wasa Mercer family investment. Ms.

PleaseturntopageB4

As Facebook Inc. and Twit-ter Inc. have taken a more as-sertive role in curbing contenton their platforms, prominentconservatives on both plat-forms have responded with afrequent retort: Follow me onParler.

Launched in 2018, the liber-tarian-leaning social networkwas the most downloaded appon both Android and Apple de-vices for most of last week, ac-cording to data from Googleand analytics firm App Annie.Its leaders envision it as a free-speech-focused alternative tothe giants of Silicon Valley.

The platform also has some

BY JEFF HORWITZAND KEACH HAGEY

Mercer Cash BacksUpstart App Parler

MEDIAContent-hungrystreaming servicesgive a boost to anime

producers. B4

MARKETSStocks in smallercompanies make

outsize gains on hopesfor the economy. B10

cording to data from Citigroup.That far surpasses returns fromjunk bonds, corporate loansand mortgage-backed debt andisn’t far off the roughly 12%posted by the far-riskier S&P500 through Nov. 10.

Rising unemployment this

bonds linked to bundles of in-dividual consumer loans.

The securities lost almost14% in March but subsequentlyreturned about 21%, countingprice changes and interest pay-ments, bringing the annual fig-ure to 10% through October, ac-

spring prompted consumerlending firms like OneMain Fi-nancial Holdings Inc. andLendingClub Corp. to ratchetup loss forecasts and roll outlarge debt-deferral programsfor their customers thisspring.

“Given how dire the outlookwas…we assumed things wouldbe the same as we saw in 2008and 2009—a 60% to 70% dete-rioration in losses,” said RichTambor, OneMain’s chief riskofficer.

But thanks to massive gov-ernment assistance and re-duced spending amid the pan-demic shutdowns, theexpected surge of defaultsnever came. Instead, many

PleaseturntopageB2

coming days with data on re-tail sales due Tuesday, alongwith earnings from companiesincluding discount retailer TJXCos. A widely tracked con-sumer-sentiment index re-ported a decline last week,with Americans’ outlook sour-ing postelection as the pan-demic worsens.

Household debt rose to arecord $14 trillion in 2019 asAmericans spent aggressivelyin a tight labor market, usingpersonal loans to cover carand home repairs, credit-cardconsolidation and other ex-penses. When the coronavirushit, lenders expected delin-quencies to increase, as didtraders of consumer asset-backed securities, complex

Prices for the asset-backed se-curities have soared as con-sumers bucked expectationsand responded to the corona-virus pandemic by payingdown debt rapidly.

“I don’t know if it will last,but what’s happening now interms of the American con-sumer, well, it’s downright un-American,” said Paul Norris,head of structured products atinvestment firm Conning.“We’ve had to throw out theplaybook of everything we’velearned about consumer behav-ior.”Mr. Norris has been addingconsumer-loan asset-backed se-curities to his $20 billion port-folio throughout the year.

Investors will get a freshlook at consumer health in

Investors who bet U.S. con-sumers would keep payingdebts this year are reaping awindfall as households spendless and save more against thebackdrop of a still-ailing na-tional economy.

Bonds backed by consumerloans returned about 10%through October, according todata from Citigroup Inc., mak-ing them one of the top-per-forming investments of 2020.

BY MATT WIRZ

Bond Investors WinWith Consumer BetsIncreased savingmakes debt securitiesbacked by loans amongyear’s top performers

Total return, year-to-date

Note: Returns are through Oct. 31Source: Citigroup

Consumer asset-backed securities 10.1%Investment-grade bonds7.9

Agencymortgage bonds3.6Municipal bonds3.4High-yield bonds3.3

Leveraged loans0.3

Warren Buffett has been qui-etly making a huge bet on awell-known conglomerate withthousands of employees aroundthe world: Berkshire Hatha-way Inc.

While Mr. Buffett has in-creasingly faced pressure thisyear to use his nearly $150 bil-lion cash pile to purchase signif-icant stakes in or the entirebusiness of a company, theworld’s most famous investorhas seemingly made few acqui-sitions. Among the few deals hedid make are Berkshire’s pur-chase of Dominion Energy Inc.’smidstream energy business andits investment of $6 billion infive Japanese companies.

Berkshire also invested $250million in the initial public of-fering for data-warehousingcompany Snowflake Inc.

But none of these 2020 in-vestments have risen to the “el-ephant” scale, Mr. Buffett’sterm for a big buy, relative tothe conglomerate’s size andavailable cash.

In fact, the biggest purchasethat the Omaha, Neb., companyhas made is to purchase itsown stock. Berkshire bought $9billion of its own shares in thethird quarter, bringing totalbuybacks for the first threequarters of 2020 to $15.7 bil-lion. These buybacks mean thatBerkshire Hathaway stock isnow one of Berkshire Hatha-way’s biggest investments ever.

It is a contrast to decades ofthinking from Mr. Buffett, whofor years refused to buy backBerkshire stock.

Analysts said that one mainreason Mr. Buffett has done abuyback is that big acquisitionsare a taller order these days.For a corporation of Berkshire’ssize and depth, with railroads,food manufacturers, insurers,furniture companies and jew-elry retailers among the com-pany’s varied subsidiaries,there are fewer companies that

PleaseturntopageB2

BY JENNA TELESCA

Berkshire,In Shift,Turns toBuybacks

INSIDE

ing: Is there something theyhave done that might jeopar-dize the workforce?”

Until recently, the biggestCovid-19-related question waswhether to bring back micro-waves pulled from the lunch-room and access to lockers.

Ramsay Signs Inc., a makerof custom electrical signs inPortland, Ore., created a pen-

alty system to ensure mask-wearing by staff. Employeesget a friendly reminder fortheir first offense, then a sternwarning from supervisors. Athird offense triggers a formalwrite-up indicating that work-ers will be suspended withoutpay if they don’t follow com-pany rules.

None of the sign maker’s

130 employees has been sus-pended or terminated, butwrite-ups were common in theearly days of the pandemic,Ramsay President Wendy Gib-son said. With Covid-19 casesback on the rise in Portland,workers are now taking thepandemic more seriously, shesaid.

“The last thing they need to

be worried about is being firedfor not wearing a mask, butsometimes you need to makethese threats,” Ms. Gibson said.

Adding masks, partitionsand other safety measuresmeans higher costs for smallbusinesses, many of whichhave been struggling withslower sales because of the

PleaseturntopageB5

Small-business owners aregrappling with how to managetheir workers as the numbersof new coronavirus cases inthe U.S. surge. The questionsinclude everything from re-opening the office lunchroomto policing employees’ per-sonal lives.

Delta Systems Inc., a makerof components for outdoorpower equipment, thought ithad all the proper safety mea-sures in place. The Streetsboro,Ohio, company gives workersthe option of cloth masks orplastic face shields. It checksemployees’ temperatures dailyand asks a handful of ques-tions—about out-of-statetravel, exposure to someonediagnosed with the virus andchanges in their own health.

But after cases jumpedagain in Ohio and two ofDelta’s roughly 200 employeestested positive for the virus inrecent weeks, executives havebegun looking at next steps.“We have to winterize ourCovid plan,” Chief ExecutiveElizabeth Barry said.

Delta is now weighingwhether and how to ask em-ployees if they have associatedwith people outside their bub-ble when they aren’t atwork. As a manufacturer, thecompany doesn’t have the lux-ury of shutting down or send-ing production workers to dotheir jobs from home, Ms.Barry said.

“It is probably none of mybusiness what people do out-side of Delta,” she added. “Theother side of it that I have tomake them think every morn-

BY RUTH SIMONAND RENATA GERALDO

Issues of Masks, Bubbles Test Small Firms

Ramsay Signs, a maker of custom electrical signs in Portland, Ore., created a penalty system to ensure mask-wearing by staff.

MASO

NTR

INCA

FORTH

EWALL

STRE

ETJO

URN

AL

CEO John Matze says the platform encourages free speech.

BRIDGET

BENNET

TFO

RTH

EWALL

STRE

ETJO

URN

AL

PERSONAL TECHNOLOGY | By Nicole Nguyen and Joanna Stern

Look Your Best on Video CallsWith or Without a Webcam

If your signature Zoomlook is early-’90s homevideo, you’ve come to theright place. This is a guide tolooking your best at the vir-tual office—whether or notyou wear sweatpants every-day.

During the pandemic,cloud-based video calling en-abled everything from all-hands meetings to workoutclasses to weddings—and itdoesn’t look like our Zoomlife is going to stop soon.

In a test comparing thenewest Mac and Windowsmachines, we found the com-puters’ cameras producepoor, grainy footage, espe-cially if you aren’t in a roomwith ideal lighting condi-tions.

Oh, so you figure you’lljust pick up an external web-cam? Except, the Great Web-cam Shortage of 2020. Popu-lar models are still hard tocome by. But an iPhone ordigital camera connected toyour laptop can be even bet-ter. It’s on a second devicethat won’t make your laptopgo into overdrive.

Here are gadgets and appsto help you up your virtual-meeting game.

Use a dedicated deviceVideo-chatting is hard on

your computer’s processorand memory. Sluggish perfor-mance? Hot surface? Noisyfan? That’s your laptop strug-gling to send and receivereal-time video and audiostreams.

Try a second device, likean iPad or Facebook’s Portal,dedicated to running yourchat app. It reserves your lap-

top’s CPU for the dozens ofbrowser tabs you have open.

Smart displays with built-in cameras are one option, ifyou want to spend a bit andyour Wi-Fi can handle yet an-other device. Video-callingboxes were originally in-tended for catch-ups withGrandma, but the pandemic’swork-from-home demandshave given them a new 9-to-5rationale, too. In August,

Zoom announced plans to ex-pand to the Portal, along withGoogle’s Nest Hub Max andAmazon’s Echo Show, by theend of the year.

We tested Zoom on Face-book’s $129 Portal Mini, andGoogle Meet on the $229Nest Hub Max. (Displays fromGoogle and Amazon don’t yetsupport Zoom.)

The Portal was the winner.The image quality was bright,crisp and clear. The smartcamera’s “Focus on Me” fea-ture pans and tracks youaround the room.

Sure, it’s creepy. But whenyou’re sitting, it keeps younice and centered.

On the Nest Hub Max, theimage on the call recipient’slaptop appeared pixelated,no matter the quality of Wi-Fi and speed of the internetconnection. That’s becauseMeet on the Hub Max setsvideo resolution at a low360p by default. A Googlespokeswoman said a high-definition option is in theworks.

The Portal has more op-tions: Not just Zoom andFacebook’s video-calling appsMessenger and WhatsApp,

PleaseturntopageB4

An iPhoneordigitalcameraconnected toa laptopcanbebetterthanawebcam.

P2JW321000-2-B00100-1--------XA

B2 | Monday, November 16, 2020 * * * * * * THEWALL STREET JOURNAL.

vested more than $15 billion inblue-chip companies such asGoldman Sachs Group Inc. andGeneral Electric Co., when cor-porate debt was difficult to get.

This time, however, the Fed-eral Reserve’s market interven-tions stabilized the marketsmore quickly, stymieing Mr.Buffett’s usual game plan.

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.

A

Abercrombie & Fitch...B3

Amazon..................B1,B4

American EagleOutfitters..................B3

B

Banco Nacional deCredito CA BancoUniversal...................A7

BBVA...........................A1

Berkshire Hathaway...B1

C

Cargill ..........................B2

Chevron.....................B10

Comcast.......................B5

Curbio..........................B5

D

Delta Systems............B1

Devon Energy............B10

Dominion Energy........B1

E

EOG Resources .........B10

Exxon Mobil ..............B10

F

Facebook......................B1

Foot Locker .................B3

Forever Floral..............B5

Fox...............................B4

G

Google .........................B1

Guangzhou ViewoElectronics..............A10

H

Hicks Equity Partners B4

Hicks Muse Tate &Furst..........................B4

HSBC Holdings............B7

J

JBS USA Holdings......B2

J.C. Penney..................B3

Jergens........................B5

L

L Brands......................B3

Liss Technologies GroupB5

M

Macy's.........................B3

Minsur.........................A7

N

Netflix .........................B4

News Corp...................B4Newsmax TV...............B4Nike.............................B3

O

Occidental PetroleumB10

P

PNC..............................A1PPI...............................B5

R

Ramsay Signs.............B1

S

Simon Property GroupB2Smithfield Foods........B2Snowflake...................B1SpaceX........................A4

T

Taubman Centers........B2Toei Animation...........B4Trump Organization...A3Tyson Foods................B2

V

Vornado Realty Trust.A3

W

Walmart......................B3Whitebox Real EstateB5WPX Energy..............B10

INDEX TO PEOPLE

BUSINESS & FINANCE

work in the plants, along withpublicly reported infectionrates in the counties andtowns around its 241 U.S. pro-cessing facilities, said Mr.Banks. The system has helpedTyson get an early read on ris-ing infection risks around itsplants, and decide when thecompany needs to step up em-ployee testing, he said.

“We can dial up the algo-rithm when we sense there’ssomething going on in thecommunity, and we’re muchmore prepared for a secondwave,” said Mr. Banks, a for-mer tech and health-care exec-utive. Right now, less than 1%

it has stocked up on masksand slowed processing lines tohelp space out employees.

At Tyson’s Springdale, Ark.,headquarters, Mr. Banks saidhe uses a company-developedweb dashboard to keep tabseach day on the company’s in-ternal-testing results. Tyson inJuly began a “surveillancetesting” program that tests anumber of employees at eachplant every week. So far, Mr.Banks said, the company hastested more than half of itsroughly 141,000 employees.

Tyson’s algorithm-basedsystem compares positive em-ployee tests with where they

record-breaking daily infectiontotals have the U.S. food sectoragain on edge for potential dis-ruptions. Some grocery storeshave reintroduced purchaselimits on household staples,anticipating a surge in buyingas states announce new restric-tions on restaurants to curbthe pandemic’s spread.

Meatpacking executivessaid they are prepared for thewinter months. AndreNogueira, CEO of JBS USA, inOctober said the company wasconducting tests among em-ployees to monitor for signs ofoutbreaks. Cargill, the top U.S.producer of ground beef, said

Tyson Foods Inc. is usinginfection-tracking algorithmsand employee testing to shieldworkers at the biggest U.S.meatpacker from a fresh surgein coronavirus cases and keepgrocery stores stocked, itschief executive said.

The Arkansas-based com-pany, like other meatpackers, isspending heavily on protectivegear and planning longer-termdefenses against Covid-19. Ty-son Chief Executive Dean Bankssaid the company is addingmore space for workers at ex-isting plants and designing newones to include workstation di-viders and other safeguards.

“Everyone is concernedabout a second or third wave,”Mr. Banks said. The companyis set to report quarterly re-sults on Monday.

U.S. meat giants includingTyson, Cargill Inc. and JBS USAHoldings Inc. are working to de-fend against another rise in in-fections after widespread out-breaks among workers in Aprilforced those companies andothers to shut dozens of plantsacross the country. By the endof May, more than 16,000 meat-packing workers had been in-fected, and 86 died, according tothe Centers for Disease Controland Prevention. Some super-market operators had to rationconsumers’ meat purchases, andfarmers had to euthanize tens ofthousands of animals theycouldn’t send to slaughter.

Meat companies began issu-ing masks, checking employees’temperatures and installing di-viders between processing-linework stations. Since the spring,infections among workers haveeased, and meat productionhas rebounded. But weeks of

said, “There’s no way I cancome back here three yearsfrom now and tell you that wehold $150 billion or so in cashor more, and we think we’redoing something brilliant bydoing it.” He added: “I wouldsay that history is on our side,but it would be more fun if thephone would ring.”

When the phone has rungsince then, the deal wasn’t theright price for Mr. Buffett.

Buybacks are Mr. Buffett’slast option for use of cash afterreinvesting in Berkshire andbuying other companies, saidStephen Biggar, director of fi-nancial-institutions research atArgus Research.

Indeed, Mr. Buffett eschewedbuybacks until recent years.

“It’s a bit of a recognitionthat he doesn’t see any sizableacquisition,” Mr. Biggar said.

One surprise for some inves-tors was that Mr. Buffett didn’tmake any deals during the mar-ket selloff in March.

At the beginning of the 2008financial crisis, Mr. Buffett in-

“The Fed became a veryrapid direct competitor toBerkshire,” Mr. Tilson said,adding that the Fed’s terms fordebt were much better than Mr.Buffett’s were in 2008.

Lawrence Cunningham, aGeorge Washington Universitylaw professor, sees the buy-backs as a way to weed outfair-weather investors whowould be willing to sell.

Mr. Buffett has fostered aculture of patient shareholderswho hold their Berkshire in-vestments for decades. Abreakdown of that investor cul-ture could cause disruption af-ter Mr. Buffett leaves Berkshire.

“That will invite activists toclamor for breaking up Berk-shire,” said Mr. Cunningham, di-rector of the quality-sharehold-ers initiative at the university.“If you do all that, Berkshirewill lose its distinctiveness.”

By buying back shares fromthe short-term investors, Mr.Buffett is in effect narrowingthe company’s investor pool tothe longer-term investors.

meet Mr. Buffett’s standards.“Berkshire Hathaway has

reached a size and maturitythat it’s no longer a growthcompany; it’s a cash cow,” saidWhitney Tilson, founder andchief executive of Empire Fi-nancial Research. “To move theneedle, he needs to make in-vestment decisions where he’sallocating, I would argue, $10billion or up.”

Even after the billions inbuybacks, Berkshire’s cash andTreasury bonds total $145.7 bil-lion, as of the end of Septem-ber. Mr. Buffett himself didn’texpect to be sitting on thismuch cash at this point.

At a 2017 annual meeting, he

ContinuedfrompageB1

BerkshireTurns toBuybacks

Jan. 2020 Nov.

-40

-20

0

20%

Share-price and indexperformance, year-to-date

Source: FactSet

S&P 500Berkshire Hathaway

of Tyson’s employees are in-fected with Covid-19, the com-pany estimated.

Tyson is hiring about 200new nurses and health person-nel for its plants and is build-ing seven clinics near majorfacilities that will providehealth care for employees, of-ten free, the company hassaid. In August, Tyson esti-mated its coronavirus re-sponse had cost the company$340 million, cutting intoprofits for the company thatsupplies one in every fivepounds of chicken, beef andpork produced in the U.S.

The League of United LatinAmerican Citizens, an advo-cacy group that last springcriticized meatpackers for notmoving faster to keep workerssafe, in recent months hastoured Tyson, JBS and Smith-field Foods Inc. plants, whilemonitoring local infectionrates. Lulac CEO Sindy Bena-vides said meat companieshave put in place strong pro-tections, and in some casesplant workforces are showinglower infection rates than sur-rounding communities.

The pandemic has shapedmany of the company’s priori-ties since Mr. Banks took overas Tyson’s CEO on Oct. 3. Mr.Banks previously worked atAlphabet Inc.’s advanced-re-search subsidiary X, and atTyson is helping lead an auto-mation drive hastened by lastspring’s disruptions.

Tyson is revamping the wayit prepares some products tomake them more easilyshipped via e-commerce plat-forms, Mr. Banks said, and hehas been meeting with Tyson’srestaurant and food-servicecustomers as they prepare tonavigate the winter months.

A

Allen, Scot..................A6

B

Balfe, Chris.................B4

Banks, Dean................B2

Barry, Elizabeth..........B1

Benavides, Sindy........B2

Burgdoerfer, Stuart....B3

G-H

Gibson, Wendy............B1

H

Hanold, Scott............B10

Henning-Smith, Carrie

.................................. A6

Hicks, Thomas............B4

L

Ledoux, Alex...............B5

Lejuez, Paul.................B3

Liss, Ray......................B5

M

McComb, William.......B3

Murdoch, Lachlan .......B4

Musk, Elon..................A4

O

Obresley, Christen......A6

P

Pruitt, Grant ...............B5

R

Ripp, Eric.....................B5

Ruddy, Chris................B4

Rudman, Rick..............B5

Ruffin, Phil..................A3

S

Sadove, Stephen.........B3

Schroeder, Shawnda...A6

Schron, Jack................B5

Shireman, Robert.......A4

T

Tompkins, Trevor........A6

BY JACOB BUNGE

Tracking, Tests Help TysonMaintainMeat Output

A shopper browses the meat section at a Washington, D.C., market. Some stores are limiting purchases.

DRE

WANGER

ER/G

ETTY

IMAGES

High-end mall developerTaubman Centers Inc. hasagreed to accept a price cut inits takeover by Simon PropertyGroup Inc., in a move that willallow the companies to avoid adrawn-out legal battle that wasset to start Monday.

The companies have agreedthat Simon will pay $43 a sharefor Taubman under the newdeal, people familiar with thematter said. That is down fromthe original price of $52.50.

The companies had firstreached a deal in February, be-fore the coronavirus pandemicand social distancing altered theoutlook for bricks-and-mortarretailers.

The deal structure, which in-volves the Taubman family sell-ing about one-third of its inter-est in Taubman and remaining a20% owner in the operating sub-sidiary of its namesake firm, isunchanged.

The new deal amounts to anearly 20% discount and savingsof close to $800 million for Si-mon. In addition to the $9.50 pershare discount, Taubman hasalso agreed not to declare or paya common stock dividend beforeMarch.

The two companies, whichwere set to face off in a Michi-gan court over the deal begin-ning this week, also agreed tosettle the pending litigation.

They said they expect thedeal to close in late 2020 or

early 2021.The tie-up is one of a handful

of deals to sour as a result of thepandemic, with many in the re-tail sector, though the size of theprice cut is larger than what istypically seen.

Tiffany & Co. last monthagreed to a roughly 2.6% pricecut from LVMH Moët HennessyLouis Vuitton SE in what wasoriginally a $16.2 billion deal.

Private-equity firm SycamorePartners sued Victoria’s Secretparent L Brands Inc. in April,saying that the retailer had vio-lated the terms of their mergeragreement by closing stores, fur-loughing workers and skippingrent payments. L Brands coun-tersued, and the two sides even-tually agreed to scrap the deal.

BY CARA LOMBARDO

Taubman Cedes DiscountTo Simon in Takeover Deal

A Simon Property Group-owned mall in Indianapolis in March after it was emptied by the pandemic.

DARR

ONCU

MMINGS/ASS

OCIAT

EDPR

ESS

households used the cashcushions they received to paydown debt.

Braedon Harvey, a 28-year-old lending care associate atLendingClub in Lehi, Utah,spent March and April work-ing 12-hour shifts on back-to-back calls helping customerswho qualified for hardshipplans to reschedule their pay-ments. “I spoke to one personwho had just gotten off of aventilator in the hospital,” hesaid.

Now the need has slowed toa trickle. “Last week I enrolledthree people on deferral pro-grams,” Mr. Harvey said.

LendingClub had cut pro-jected returns on loans itmade before March to about3% but recently boosted thatfigure to 4%, based on stron-ger-than-expected customerpayments.

Loan write-offs at OneMain,which serves families with av-erage annual incomes ofaround $50,000, fell back toprepandemic levels of around5.2% in the third quarter of theyear from 6.5% in the firstquarter.

One consequence: Asset-backed securities underpinnedby consumer-loan paymentsthat the lenders issue to bondinvestors have reboundedsharply and outperformed vir-tually every other debt invest-ment this year.

Investor demand for con-sumer loans now exceeds sup-ply, which has yet to recoverto prepandemic levels, saidScott Sanborn, chief executiveofficer of LendingClub, whichhas been selling loans it makesdirectly to institutional inves-tors. “We’re just trying to fillthe orders of our investors.”

Investors want more of thedebt for its high yields butLendingClub is waiting to seeif the consumer rebound issustained before returning toprepandemic lending levels,Mr. Sanborn said. Issuance ofnew consumer loan ABS to-taled $9 billion in 2020

through October, down from$13 billion during the same pe-riod last year, according todata from Dealogic.

It is unclear whether con-sumer-loan payments will re-main stable as months passwithout additional governmentsupport.

Stimulus spending “createda little bit of a fog,” said KeithAshton, co-head of alternativecredit at $179 billion invest-ment firm Ares ManagementCorp. Ares has selectively in-vested in new consumer ABSsince March, but “we feel it ispremature to jump into thesector wholesale,” he said.

Most governmental reliefprograms ended by Septemberbut loan delinquencies haven’trisen yet, according to One-Main’s Mr. Tambor. “We, likeeverybody else, are saying atsome point the macroeconomyis going to start reasserting it-self but so far we just haven’tseen it,” he said.

ContinuedfrompageB1

ConsumerBond BetsWin Big

4%LendingClub projected returnson loans it made beforeMarch

BUSINESS OPPORTUNITIES

*91691$C7 (7@7A96?7<C ';7! $@$)A$"A7<9> 291 !9</BAC)<. 91 2BAA+C)?7 69/)C)9</

)< C,7 %3&3 $<: .A9"$AA8G"F>5: F-5.F/.+ ,F.)?>870 /-9-7.,=1E8<D=1-DD-D>1/ D<55-DD+<770 =19-D?=1E =1 8=.?-5C2 *&2

57->1?-5C2 >1/ .?C-F EF.6?C D-5?.FDG A->FD .+-3,-F=-15- 6=?C$5%=1D-0 ; (.4,>10 >1/ =1#=7=5.1 !>77-0G '>F9>F/@ >1/ A>7-@-/<5>?-/G

*9<C$!C= "9;-405#.?$)A3!9?

?&'6(& $"(!#& 9*3&<43# !,.%0&/)+' "$3/-32-, 41()%*19*3#$9$%*9$!" <9?*9&%$&<,12(31 *"'"!-1 /)30+1 (. *0 %#$ .1, &1",

=CDAD)4A@@D4 / 2A)CCA9*3A(69A47770-58,+.:1B>58+1,+;+8B,08+B

')1 '0 " -/)!/)%1*(+1)( '..',(&)/($#

@"7.A5 *A!,, %!B3=B, 9)B+ %.72.)3B!.6 (7.?BA!B)7=,0*A)=);!A ,BB5)3, B+!B <!A)5!B3 B+3 31/;!;60

'& '3-!B)<3 ,)53 3113;B, > B+3"%")(# B7 B+3: 4 +3!AB+ ),,B3 )= B+3 #$ >"7.A58$!("&!'0

"/$& ', 1!))0 %*(+*-#+(*-.

The MarketplaceADVERTISEMENT

To advertise: 800-366-3975 orWSJ.com/classifieds

RESIDENTIAL REAL ESTATE

+9&+ $#254-.0 7),*0)'30(8%#%)! 6424'3,- ",/0(

%"F9("AD #?423"F58 $"496;<29! (",2 (15$)32 74210)>/.@)>.@>/0+

2F?;=&?-2D93:2*DD29'F16,*;17

THEMARKETPLACE

ADVERTISE TODAY(800) 366-3975

Formore information visit:wsj.com/classifieds

©2020 Dow Jones & Company, Inc.All Rights Reserved.

P2JW321000-6-B00200-1--------XA

THEWALL STREET JOURNAL. Monday, November 16, 2020 | B3

“When I walk by a store andsee a cute display in the win-dow, that makes me want to goinside,” said Ms. Hayes, whoworks for a health-care non-profit. “If the store isn’t there,

I’ll just go someplace else.”Real-estate executives said

shoppers typically won’t travelmore than 3 to 5 miles to astore, although that can varydepending whether they live

LBrands

Coach

Abercrombie & Fitch

J.C. Penney

Gap†

-40 -30 -20 -10 0 10%

Sales Earnings

Shrink EffectSome chains that closed stores have struggled to curb declines.Sales and earnings* for the latest fiscal quarter, change fromyear earlier

Source: BMO Capital Markets*Before interest and taxes †Excludes Old Navy

is often not that chains havetoo many stores, but that theyhave diluted their brand withtoo many discounts. A health-ier approach would be to sellfewer items and charge morefor them, he said. The resultwould be a smaller, but moreprofitable company.

That didn’t work for Pen-ney, which scaled back dis-counts under previous man-agement only to watchshoppers flee. Other brands,including Coach and RalphLauren, are having more suc-cess weaning customers offpromotions.

But it isn’t easy to do in aworld where retailers are re-warded by investors for grow-ing sales, Mr. Siegel said.

In his view, WallStreet’s focus on sales growthcontributed to the overstoring

of America over the past half-century. “All a retailer had todo was open a new store,” Mr.Siegel said. “It became moreimportant to be bigger, notbetter.”

The rise of e-commerce putan end to the store-openingjuggernaut. As consumersbought more online, they vis-ited physical stores less, mak-ing them less productive andmore costly to operate. Thatled chains to close hundreds oflocations with the hopes ofstabilizing profits. For some,the strategy hastened their de-cline.

“When you look at all theretailers that are closingstores now, it’s easy to forgetthat so many have tried this inthe past and they aren’taround anymore,” Citigroupanalyst Paul Lejuez said.

Retailers cast store closingsas a necessary fix, and some-times their businesses are un-der so much pressure theydon’t have a choice.

“We believe this is an im-portant step, a good step forthe long-term health and prof-itability of the business,” LBrands finance chief StuartBurgdoerfer told analysts inAugust about plans to close250 Victoria’s Secret storesthis year.

Mr. Burgdoerfer said Victo-ria’s Secret expects to recap-ture roughly 30% to 40%of sales from closed locations,as shoppers transfer their pur-chases to a nearby outlet orthe internet.

The lion’s share will go toother stores in the chain, hesaid, with 5% expected to bereclaimed online.

In many cases, though, apurchase is lost for good.

Tommia Hayes said she isshopping less at Forever 21,Gap and Foot Locker sincethey closed stores near herWashington, D.C., home in re-cent years.

The rise of e­commerce put anend to the store­opening juggernaut.

HOW DO YOU MANAGERISK WHEN THE WORLD IS

UPS IDE DOWN?

We can't control what's next, but we can help navigate it. CME Groupprovides 24-hour access to trading opportunities in every investableasset class, allowing market participants worldwide to manage risk andcapture opportunities. For every economic twist and turn, when thenew normal is anything but… CME Group.

VIS IT CMEGROUP.COM/ACTION

Derivatives are not suitable for all investors and involve the risk of losing more than the amount originally deposited and any profit you might have made.This communication is not a recommendation or offer to buy, sell or retain any specific investment or service. Copyright © 2020 CME Group Inc. All rights reserved.

BUSINESS NEWS

in a rural or urban area and onthe type of retailer.

“I call it the 20-minuterule,” said Jim Bieri, a princi-pal of Stokas Bieri Real Estate,a Detroit broker. “Once it’sfarther than 20 minutes, peo-ple won’t come.”

William McComb, whoclosed stores as CEO of Fifth &Pacific Cos.—which at the timeowned Kate Spade, Juicy Cou-ture and Lucky Brand Jeans—said when a store closes shop-pers don’t always move online.In fact, e-commerce sales cansuffer unless retailers havespent to build a web presence,he said.

“Stores are a demand-gen-eration machine,” Mr. McCombsaid. “Consumers don’t auto-matically go to your website.It’s very expensive to get theeyeballs.”

The risk of shrinking-to-grow—which is how some re-tailers describe their store-

closing strategies—is thatchains aren’t always able tocut enough costs to offset thelost sales and shore up profitmargins, analysts and execu-tives said.

“The money saved fromclosing stores ends up beingdeployed on marketing,”BMO’s Mr. Siegel said.

As a result, he said, market-ing costs, which historicallyaveraged around 3% of sales,have inched up to about 4.5%of sales for the bricks-and-mortar chains that he follows.For online brands that havefew if any stores, marketingcan average upward of 15% ofsales, he said.

“The argument of the past15 years has been that e-com-merce has diminished theneed for stores,” Mr. Siegelsaid. “But every company thathas embarked on massivestore closings has simply got-ten smaller.”

Retailers’ preferred solutionfor empty stores may only beadding to their problems, ac-cording to new research andindustry executives.

Retail chains have an-nounced thousands of closuresthis year after closing a recordnumber of stores last year, asthe pandemic crimps demandfor nonessential items andshopping continues to migrateonline.

The hope is that by cuttingexpenses associated withphysical locations, the chainscan become more profitableand start growing sales againas customer purchases shift totheir remaining locations andwebsites.

But that rarely happens, ac-cording to new research andinterviews with industry exec-utives.

“Closing stores isn’t goingto solve a retailer’s underlyingproblems,” said Stephen Sa-dove, the former chief execu-tive of Saks Inc. “You have tolook at why the stores aren’tperforming. What is theircompetitive advantage andtheir reason for being?”

Even before the pandemic,retailers were closing stores ata record pace. U.S. chains an-nounced the closure of 9,275outlets last year, the mostsince Coresight Research Inc.began tracking the figures in2012. The tally exceeds 8,000stores so far this year, accord-ing to Coresight.

The health of the industrywill be on display this week aschains from Walmart Inc. toMacy’s Inc. report quarterlyearnings, with the holidayshopping season already underway.

Chains began offeringBlack-Friday-type discounts inOctober, instead of waitinguntil the traditional day afterThanksgiving.

Retailers that closed storesin recent years often contin-ued to shrink, sometimes tothe point of disappearing alto-gether, according to researchfrom Citigroup Inc. and BMOCapital Markets. The firmslooked at roughly a dozen re-tailers that announced majorstore closings in recent years,including Macy’s, J.C. PenneyCo., Abercrombie & Fitch Co.and L Brands Inc.

An Abercrombie spokes-woman said the company stillbelieves in stores, but theyneed to be the right size andin the right location. As itsdigital business has grown, theretailer remains committed toreducing its square footage,but continues to open smallerstores, she said.

Macy’s, Penney and LBrands declined to comment.

“No retailer ever announcesone round of store cuts—it’salways the precursor to astore bleed,” said Simeon Sie-gel, a BMO senior analyst.“Most companies we looked athad lower revenue and profitthan before they started clos-ing stores.”

Two exceptions were NikeInc. and American Eagle Out-fitters Inc. Mr. Siegel said thetwo companies closed storesmore as part of a normalpruning of undesirable loca-tions, rather than the massclosures of other chains.

Nike didn’t respond to a re-quest for comment.

An American Eagle spokes-woman said the chain’s fleet islargely profitable, but it con-tinues to evaluate and reposi-tion stores as part of its con-tinuing strategy.

Mr. Siegel said the problem

BY SUZANNE KAPNER

Closing Stores Doesn’t Always Pay OffRetail chains often failto recapturecustomers online or atremaining locations

Abercrombie & Fitch is among those retailers that announced major store closings in recent years.

EMILIE

RICH

ARD

SON/B

LOOMBE

RGNEW

S

NY

P2JW321000-0-B00300-1--------NS

B4 | Monday, November 16, 2020 * * THEWALL STREET JOURNAL.

MEDIA & TECHNOLOGY WSJ.com/Tech

Compared with Logitech’s StreamCam, left, a no-name webcam isn’tas clear and casts a red hue on your face in some lighting conditions.

ing or dangerous. Fox Businessanchor Maria Bartiromo an-nounced she was quitting Twit-ter for Parler, where she hasamassed more than 1 millionfollowers. Conservative talkshow host Dan Bongino—an in-vestor in Parler—heralded itsgrowth as “a collective middlefinger to the tech tyrants.”

Both of them have continuedto post on Facebook and Twit-ter, though, raising the ques-tion of whether Parler willeventually complement or re-place larger platforms withmuch bigger audiences.

In part, that answer will bedetermined by the success ofParler’s business model, whicheschews some of the founda-tional tools of social media.

Twitter and Facebook gatherextensive data about the con-tent users interact with—andthen customize what users seebased on what’s likely to appealto them. When the platformsdetect content that is popularamong a swath of users, theypromote that content in moreusers’ feeds—creating the sortof viral sensations social mediais known for.

Parler doesn’t do that. Theplatform doesn’t use content-recommendation algorithms,collects almost no data aboutits users and, for privacy rea-sons, hasn’t provided the toolsto let users easily cross-postfrom other platforms. Parlersimply shows users all the posts

their nude photos on the plat-form, Mr. Matze said.

Parler has also been em-braced by individuals who havebeen banned by other platforms.Far-right talk-show host AlexJones, the extremist group theProud Boys and the “Stop theSteal” election protest organiz-ers all have established sizablefollowings on Parler after beingbanned from Facebook.

In recent weeks the app hasteemed with claims about elec-tion fraud without offering evi-dence, white-supremacist con-tent and posts from backers ofthe QAnon conspiracy theory,the Anti-Defamation League said.

Mr. Matze said allowingthose groups on the platform isconsistent with the company’scommitment to free speech,even if not all of it is to his taste.

“Those QAnon people, theycreep me out,” said Mr. Matze,the 27-year-old CEO whofounded the Henderson, Nev.-based company.

“I can see why there’s interestin this,” said Antonio GarciaMartinez, a former Facebookproduct manager and Twitteradviser, notingmainstream plat-forms feel they must make con-cessions on free speech to reachthe broadest possible audience.

Yet recent history suggeststhat “at some point the worldrevolts against this sort ofthing,” he said, noting thestruggles of alt-right platformssuch as Gab.

Mercer, in a post on Parler aftera version of this article was pub-lished, said her father had no in-volvement or ownership of thecompany. Mr. Mercer couldn’t bereached for comment.

Ms. Mercer said in a separatepost that she and Mr. Matze“started Parler to provide a neu-tral platform for free speech, asour founders intended.” Shesaid the effort is an answer towhat she called the “ever-in-creasing tyranny and hubris ofour tech overlords.”

The company’s user basemore than doubled to 10 millionin under a week, making it diffi-cult for its roughly 30-personstaff to keep up with the floodof new sign-ups. “You’d fix onething, and another would blowout,” Mr. Matze said. “We’renow solid at this point.”

Other allies of PresidentTrump have joined Ms. Mercerin framing Parler’s rapidgrowth as a rebuke to majortech platforms’ efforts to moreaggressively label content orrestrict the reach of posts thatthe platforms deemed mislead-

ContinuedfrompageB1

Mercer HeirIs BackingApp Parler

from everyone they follow, inreverse chronological order.

While Parler’s terms of ser-vice allow the app to tailor con-tent for its users in the future,executives said they were com-mitted to their libertarian prin-ciples. “We’re choosing to be aneutral platform,” said JeffreyWernick, the company’s chiefoperating officer.

Parler’s hands-off philosophycould test users.

Unlike Facebook and Twitter,Parler leaves virtually all mod-eration decisions up to individ-uals, allowing them to choose

whether to apply filters thathide content such as hatespeech and pornography. Theminimal enforcement that ex-ists—primarily the removal ofspam, threats of violence, or il-legal activity—is handled by“community jurors,” all cur-rently volunteers.

That policy leads to free-wheeling political discussion. Italso allows some communitiesto flourish that don’t fit as eas-ily on other platforms, such asa group of users who publish

Users have reached10million, includingsome people bannedby other platforms.

were pushed forward by the evi-dence of higher demand.

Netflix, which hired a cre-ative team dedicated to animeproduction in Tokyo four yearsago, said more than 100 millionhouseholds around the worldwatched at least one anime titleon the streaming site in the yearto September, growing by 50%from a year earlier. Anime titleshave appeared in the top-10 listin nearly 100 countries this year,it said. Amazon Prime also fea-tures a wealth of anime titles.

The financial reports of To-kyo-based Toei AnimationCo., the studio responsible foranime such as the “DragonBall” and “Sailor Moon” fran-chises, give a glimpse intohow the industry is changing.

Four years ago, revenue re-ceived from outside Japan ac-counted for one-third of ToeiAnimation’s overall revenue.The overseas portion rose tohalf of the total in the yearended this past March, andoverseas revenue more thandoubled to the equivalent of$243 million, with “Dragon Ball”programs available on stream-ing services such as Hulu in theU.S. In the most recent sixmonths, overseas sales rose tonearly three-fifths of the total.

Animated content “isn’t justabout Disney anymore,” saidKozo Morishita, who steppeddown as Toei Animation’s chair-man in June and remains an ad-viser to the company.

Overseas sales by Japanese

companies involved in anima-tion content, including those li-censing characters for goods,grew to about $10 billion in2018 from some $2.3 billion sixyears earlier and accounted fornearly half of total industry rev-enue, according to the Associa-tion of Japanese Animations.

Bringing anime to the worldisn’t easy. Anime programs inJapan are typically made by agroup of investors who form anad hoc production committeefor each project. It is often im-possible to find out who themembers of a committee are,said Tomohito Mure, CEO ofParadigm Shift Co., which nego-tiates international anime deals.“It’s a system peculiar toJapan,” he said.

TOKYO—The pandemic ishelping Japan’s demon slayers,monsters and robots make theleap to the global market.

Animated video in the Japa-nese style—aka anime—has longbeen a niche taste for fans inthe U.S. and elsewhere, andsome anime films such as thoseby Hayao Miyazaki have becomemainstream hits.

Now, with the pandemic put-ting a premium on escapistvideo content, the business isgetting hotter. Streaming ser-vices such as Netflix Inc. andAmazon.com Inc.’s AmazonPrime are scouring the globe forfresh content, and anime has anadvantage over live-action con-tent because it doesn’t requireactors and crew to expose them-selves to virus contagion.

With the latest anime hitbringing in hundreds of millionsof dollars in Japan, industryplayers say the next year islikely to bring more deals andmore content for the U.S.

“I used to have the sensethat the anime category wasspreading widely around theworld, but what we’re seeingthese days is a big leap be-yond that,” said Taiki Sakurai,Netflix’s chief anime producer.

In October, Netflix said it had16 projects in the works at itsTokyo anime production hub, in-cluding “Godzilla” and “Trans-formers” titles, with plans forglobal distribution that it said

BY CHIEKO TSUNEOKA

Streamers Come Calling for Anime

Netflix hired a creative team dedicated to anime production. A scene from ‘Pacific Rim: The Black.’

NET

FLIX

party without your knowl-edge, says Lamar Bailey, di-rector of research at Trip-wire, a cybersecurity firm.

Meanwhile, most manufac-turers of brand-name web-cams regularly release firm-ware updates for theirproducts. So if you can findone in stock, jump on itquickly.

Use a phone or digitalcamera

Warning: These final op-tions require some addedsoftware and a bit of setuptime, but the result is yourmug looking better than ev-eryone else’s on the call.

Your first option? Use yoursmartphone as your laptop’swebcam. It may sound crazy,but your smartphone has farbetter cameras than your lap-top, while your laptop has away bigger screen than yoursmartphone.

Reincubate Camo software,available for $40 a year or $5a month, makes this all easy.Install it on your Mac or Win-dows PC, download the appon your iDevice, connect thetwo with a standard Light-ning-to-USB cable and, boom,you’ve now got a high-qualitywebcam—or, webcams, plural.If you’ve got an iPhone withmultiple cameras, the soft-ware lets you choose. You caneven use the flash on the backas a pseudo ring light. Be-ware, it can be a bit blinding.

Understandably, you maynot want your main smart-phone doing double duty asyour webcam. Older phoneswork great, too. The bestthing you can do with thissetup? Buy a tripod and aphone mount. Position it be-hind your laptop so thephone sits in line with thelaptop webcam.

If you want to look like theMartin Scorsese of Zoom, youcan use your DSLR or digitalcamera as a webcam, too.Over the past few months,Sony, Nikon and Canon havereleased new Mac and Win-dows software so your com-puter can recognize yourfancy camera as a webcam.

That setup can sometimesrequire accessories like thisHDMI capture card, but don’tlet that bother you. It’s notas scary as it might sound.Once you’re up and runningwith either a phone or cam-era, you’ll see them assource options in your video-chat app of choice.

Now go and enjoy beingthe clearest, gosh-darnit best-looking person on the call.

but also BlueJeans, Go-ToMeeting and Webex. (Pos-sible deal breaker: GoogleMeet is available only onGoogle’s display.)

It’s still early days forwork calls on smart displays.Many features, such as virtualbackgrounds and in-meetingchat, aren’t available yet. Andyou generally can’t use head-phones with them.

Another option is to turn atablet into a video-chat box.All you need is an iPad, Ama-zon Fire or Android tabletwith a front-facing camera,plus the latest version of yourpreferred teleconferencingapp and something to propthe device on. Fashioningyourself a homemade stand isas easy as flipping over anegg carton. You can find ad-justable tablet holders onAmazon under $20.

Some advice to iPad users:Stick with the portrait orien-tation, which keeps the cam-era centered.

Also, prop up the camerato at least eye level, unlessyou want to impress peoplewith your multiple chins.And be sure the iPad is in DoNot Disturb mode, or at leasthas distracting notificationsturned off.

Use a webcamThere are dozens of

cheap, no-name cams instock on Amazon. Is it toogood to be true? We decidedto take the plunge on a $351080p setup from a brandwe never heard of. It looks—and you look—like it cost$35. The camera cast a rosy-red hue in some lightingconditions. Some peopleasked us if we had a facepeel, others if we were sun-burned. The lens also has apronounced fisheye look.

For the price, the cameraisn’t terrible, but comparedwith webcam-king Logitech’spremium StreamCam ($170),the image isn’t nearly as clearor properly exposed.

There is also some securityconcern. Buying equipmentfrom unknown brands is arisk because, while rare, it’spossible for webcams to sendaudio or video to a third

ContinuedfrompageB1

Look YourBest onVideo Calls

For nearly two years, alliesof President Trump have beenexploring ways to build up aformidable competitor to FoxNews. One target they recentlyzeroed in on: the fledglingpro-Trump cable channelNewsmax TV.

Hicks Equity Partners, aprivate-equity firm with ties toa co-chair of the Republican Na-tional Committee, has held talksin recent months about acquir-ing and investing in Newsmax,according to people familiarwith the matter, part of a largereffort that could also include astreaming-video service.

Newsmax’s viewership hasrisen sharply since ElectionDay, as it wins over viewersloyal to Mr. Trump who arefrustrated that Fox News andother networks have declaredDemocrat Joe Biden the presi-dent-elect. Newsmax hostshave promoted Mr. Trump’sclaims that the election wasstolen. No evidence of signifi-cant fraud has emerged orbeen presented.

It is unclear whether HicksEquity’s talks with Newsmaxwill move forward. The discus-sions show the belief amongsome investors and allies ofMr. Trump that there is roomto mount a real challenge toFox News, which has domi-

nated the conservative medialandscape for two decades.

Mr. Trump and Fox Newshave had a complicated rela-tionship. The network’s opin-ion hosts are highly supportiveof the president. He devoursFox content, tweets about itand is influenced by it in pol-icy and personnel decisions,aides say. Yet he spars with thenetwork when he feels it iscriticizing or undermining him.

The election’s aftermath hasstoked those tensions: Mr.Trump has criticized Fox Newson Twitter while promotingsegments on the network fa-vorable to him and heapingpraise on Newsmax and OneAmerica News Network, an-other small right-wing channel.

Creating a television net-work to rival Fox News, whichhas led the cable-news ratingsfor years, is a long shot. News-max’s average prime-time au-dience jumped 156% to223,000 viewers during theweek of the election, accord-ing to Nielsen data, and lastThursday crossed one millionfrom 7 p.m. to 8 p.m., abouthalf of Fox’s audience duringthe time period. Sustainingthose gains when interest inthe election subsides won’t beeasy. Fox averaged nearly sixmillion prime-time viewersduring the week of the elec-tion, about 22% higher thanthe previous four weeks.

The cable-TV business as awhole is under pressure asconsumers increasingly “cut

the cord.” Big media conglom-erates are generally in a betterposition to weather that stormthan smaller or independentcompetitors, because they havemore leverage to extractmonthly fees from distributors.

Wall Street Journal parentNews Corp and Fox News par-ent Fox Corp. share commonownership.

In an interview, NewsmaxMedia Chief Executive ChrisRuddy said he has had manydiscussions with interestedparties over the years lookingto buy or invest in Newsmax.“Newsmax never had any dealwith the Hicks group, and ifit’s true they were using ourname for the purposes of capi-tal fundraising, that is whollyinappropriate,” he said.

A spokeswoman for FoxCorp. had no comment. Thecompany’s chief executive,Lachlan Murdoch, said on a re-

cent earnings call that thecompany “loves competition.”

The Trump campaign de-clined to comment. The WhiteHouse didn’t respond to a re-quest for comment.

People close to Mr. Trumpsay he is focused on the re-sults of the election, and hispending litigation about it,and there are no signs he istaking any steps of his own tolaunch a network.

If Mr. Trump wanted to cre-ate his own media businessfrom scratch, the most likelyavenue would be a subscrip-tion streaming service, someindustry executives said, andhe could likely create a viablebusiness, though perhaps notone with the scale of a TV net-work. “I think for someonelike Trump it’s an easy mil-lion,” said Chris Balfe, a part-ner at the digital-media con-sulting firm Red Seat

Ventures, referring to thenumber of subscribers withwhich Mr. Trump couldlaunch. Typical industry pricesfor such services can run fromroughly $6 to $10 a month.

Fox News already has astreaming-video service, FoxNation, that offers a combina-tion of opinion programmingand entertainment. The net-work declined to say howmany subscribers Fox Nationhas, but has said 80% of peo-ple who sample the serviceconvert to paying customers.

Trump supporters’ dissatis-faction with their mediachoices after the election havecreated opportunities on digi-tal platforms as well. Libertar-ian-leaning social-media plat-form Parler became the mostdownloaded app on both An-droid and Apple devices formost of last week thanks toconservatives’ anger at Face-book and Twitter.

The Newsmax pursuit is be-ing led by private-equity deal-making pioneer and Trumpsupporter Thomas Hicks. Thefamily’s private-equity outfit,Hicks Equity Partners, is look-ing to raise at least $200 mil-lion for its efforts in right-leaning media and has spokenwith wealthy conservativefamilies about the deal, peoplefamiliar with the matter say.

One of Mr. Hicks’s sons,Thomas Hicks Jr., co-chairsthe Republican National Com-mittee. He is unlikely to par-ticipate in any deal while he

holds an RNC post, a personclose to the Hicks family said.

The Hicks family’s wealthstems from private-equity firmHicks Muse Tate & Furst Inc.,a leading media investor ofthe 1990s and 2000s. The WallStreet Journal reported earlythis year that Hicks EquityPartners was seeking a buyoutof San Diego-based One Amer-ica News Network, also knownas OANN. Those talks havecooled in recent months, someof the people familiar with thematter said, though Hicks Eq-uity still considers it a com-pelling target.

An acquisition of Newsmax,which is based in West PalmBeach, Fla., would be part of alarger plan to assemble a net-work of channels aimed atconservatives, according to apitch that was made to inves-tors. Another channel wouldprovide family-friendly enter-tainment programming. TheHicks group has identified ateam of executives who wouldhelp manage the network ifthe deal were completed, thepeople familiar with the mat-ter said.

The Hicks group has beencourting former Fox Newsstars, the people said.

Hicks Equity has alsoreached out to conservativedonors and media competitorsin recent months about put-ting together a streaming ser-vice that would challenge Foxfrom the right, people familiarwith the situation said.

Trump Allies Court Newsmax as Fox Rival

Chief Executive Chris Ruddy says Newsmax has had lots of suitors.

CARO

LYNKA

STER

/ASS

OCIAT

EDPR

ESS

By Benjamin Mullin,Juliet Chung, KeachHagey and Rebecca

Ballhaus

P2JW321000-2-B00400-1--------XA

THEWALL STREET JOURNAL. * * Monday, November 16, 2020 | B5

Mr. Pruitt said the companyis monitoring the rise in casesdaily. “We do have to be nim-ble,” he said. “It’s part of thereason why we haven’t man-dated going back to the office”and instead are allowing em-ployees to come in as they seefit.

Some business owners havesought creative ways to boostmorale. Jergens Inc., a Cleve-land-based manufacturer, re-mained open all year becauseits customers include the med-ical and defense industries.

To keep employees engaged,Jergens has handed out OhioLottery tickets and couponsthat promised employees $20if they brought in a receiptfrom a local pizza shop or pub.Last month, the 78-year-oldcompany held a costume com-petition for mask-wearing em-ployees.

Because manufacturing em-

ployees can’t work remotely,“there is a risk of ‘we’ versus‘they,’ ” said Jack Schron,whose grandfather and fatherfounded the company, whichhas roughly 450 employees.“We had to tell people that youare front-line, as important asthe person who was makingparts for the Hellcats,” a WorldWar II fighter plane.

Sales are improving but re-main down 15%. After the com-pany spent its $5.9 million fed-eral Paycheck ProtectionProgram loan, Jergens fur-loughed workers one day aweek and joined an Ohio pro-gram that made workerswhose hours were cut eligiblefor unemployment benefits, in-cluding the additional $600 aweek in pandemic-related re-lief.

The pandemic has alsoforced some small-businessowners into uncomfortable

roles. In Utah, anyone whotests positive for Covid-19must notify their employer andself-quarantine for two weeksbefore returning to work.

But some employees at For-ever Floral Inc., a 101-em-ployee wooden décor companybased in Ogden, haven’t doneso, adding to tensions on thefactory floor, said CEO AlexLedoux.

Until recently, Utah didn’tenforce mask-wearing, makingsome Forever Floral employeesfeel casual about face cover-ings.

Since March, six employeeshave tested positive forCovid-19, and another six haveself-quarantined for potentialexposure outside the work-place.

“It puts employers in thisweird spot,” Mr. Ledoux said.“It shouldn’t really be our jobto do contract tracing.”

SMALL BUSINESS

Companies in the burgeon-ing real-estate technology sec-tor have been subject to con-trasting fates during thecoronavirus pandemic. Somestartups, such as those offeringvirtual property viewing, havethrived, while those catering tohard-hit parts of the markethave struggled.

The latest example of astartup on the right side of thatdivide is Curbio Inc., whichsaid Friday it raised a $25 mil-lion round of funding led byComcast Ventures, the venture-capital division of telecommu-nications conglomerate Com-cast Corp. Curbio offers home-renovation managementservices to people selling theirhomes and expects its annualrevenue from projects to morethan double to $20 million in2020, CEO Rick Rudman said.

Other participating investorsin the deal include CamberCreek, Brick & Mortar Ventures,and Second Century Ventures,the investment arm of the Na-tional Association of Realtors.Property-tech-focused CamberCreek closed a $155 millionfund in October.

While the real-estate techsector has grown in recentyears, investment has dipped inrecent months. There were 97venture deals involving startupsin the real-estate financial tech-nology sector during the thirdquarter, a five-quarter low, a CBInsights report found. Fundinglevels also fell, with $951 millionraised in the quarter, down 68%from last year’s third quarter.

Still, the pandemic has beena boon for some startups. So-cial-distancing requirementshave led construction firms topartner with startups offeringvirtual surveying tools to re-duce congestion at job sites,Brick & Mortar founder andmanaging director DarrenBechtel said.

BY MARC VARTABEDIAN

PropertyStartupLuresCapital

bill-processing, the only otherjobs that can’t be done re-motely. Until Labor Day, thecompany paid employees’ gro-cery-delivery fees, a benefitthat could return if Covid-19cases surge this winter.

As the pandemic stretcheson, issues such as where doemployees eat have taken onnew urgency. Whitebox RealEstate LLC, a commercial real-estate agency in Dallas withabout 14 employees, reopenedthe lunchroom Nov. 9, aftermuch debate, allowing one per-son in at a time.

“The protocol is you mustwear a mask everywhere un-less you are actually puttingyour food in your mouth in thebreakroom,” Whitebox Presi-dent Grant Pruitt said. Work-ers will return to dining attheir desks or in their cars ifthey abuse the privilege, headded.

pandemic. But some entrepre-neurs say small businesseshave an edge in responding tothe coronavirus because theyare more nimble and better at-tuned to employee concerns.

“It’s easier, mostly because Iown the whole company,” saidEric Ripp, chief executive ofPPI, an electronic health-re-cords company in Verona, Wis.“There are no dissentingvoices.”

When Mr. Ripp announced anew work-from-home policy inMarch, he told employees toclear out by that Friday; thefollowing Monday, he said,their keycards would no lon-ger work.

Mr. Ripp makes weekly vid-eos for his roughly 80-personstaff; in June, he called eachemployee to check in. “I waspretty surprised how unifiedthe message was from employ-ees,” he said. “They all wantedthe ability to work from homeafter this is over, but not full-time.” He plans to make an-other round of calls this week.

Mr. Ripp allowed a handfulof employees to return to theoffice, but last month pushedback the date when others willreturn to April 30, from Jan. 1.With cases rising, he is consid-ering delaying their return fur-ther, to June 30. Four employ-ees have contracted thecoronavirus outside work.

A single case of Covid-19can be a blow to a small com-pany. Employees are cross-trained, but having just oneperson out sick for two weeks“would really be a challengefor the whole organization,”said Ray Liss, chief executiveof Liss Technologies Group,an Omaha, Neb., provider ofutility submeters and billingservices to the apartment in-dustry.

Mr. Liss sent 10 of his 11employees to work from homelast spring and reconfiguredthe production manager’s jobto also include printing and

ContinuedfrompageB1

Virus TestsSmallCompanies

BUSINESS & FINANCE

At Ramsay Signs, employees get a friendly reminder the first time they are caught without a mask, then a stern warning from supervisors.A third offense triggers a formal write-up indicating that workers will be suspended without pay if they don’t follow company rules.

MASO

NTR

INCA

FORTH

EWALL

STRE

ETJO

URN

AL(3)

THE TICKER | Market events coming this week

Target is expected to report higher earnings on Thursday. A store in New York City’s Herald Square.

RICH

ARD

B.LE

VINE/ZU

MAPR

ESS

Monday

EmpiremanufacturingOctober (previous) 10.5November (expected)

12.1

Earnings expected*Estimate/YearAgo($)

Aecom 0.57/0.79PaloAltoNetworks

1.33/1.05TysonFoods 1.19/1.21

0.16/0.11

TuesdayBusiness inventoriesAug. (previous) up 0.3%Sept. (expected) up 0.5%

Capacity utilizationSept. (previous) 71.5%Oct. (expected) 72.2%

Import price indexSept. (previous) up 0.3%Oct. (expected) 0.0%

Industrial productionSept. (previous)

down0.6%

Oct. (expected) up 0.9%

Retail salesSept. (previous) up 1.9%Oct. (expected) up 0.5%

Retail sales (ex. autos)Sept. (previous) up 1.5%Oct. (expected) up 0.7%

Earnings expected*Estimate/YearAgo($)

Aramark (0.37)/0.68HomeDepot 3.05/2.53Kohl’s (0.45)/0.74Walmart 1.18/1.16

Wednesday

Building permitsSept. (previous)

1.553mil.Oct. (expected) 1.54mil.

EIA status reportPrevious change in stocks

inmillions of barrels

Crude-oilstocks up4.3

Gasolinestocks down 2.3Distillates down5.4

Housing startsSept. (previous) 1.415mil.Oct., expected 1.45mil.

Mort. bankers indexesPurch., previous

down3%Refinan., prev. up 1%

Earnings expected*Estimate/YearAgo($)

Copart 0.70/0.65Keysight 1.46/1.33Lowe’s 1.98/1.41Nvidia 2.57/1.78Target 1.60/1.36TJX 0.40/0.68

ThursdayEIA report: natural-gas

Previous change in stocks

in billions of cubic feet

up8

Existing-homesalesSept. (previous) 6.54mil.Oct. (expected) 6.47mil.

Initial jobless claimsPrevious 709,000Expected 710,000

Leading indicatorsSept. (previous) up 0.7%Oct. (expected) up 0.6%

Philadelphia Fedsurvey

October (previous) 32.3November (expected) 21

Earningsexpected*Estimate/YearAgo($

BerryGlobal 1.22/0.90Intuit 0.42/0.41PostHoldings 0.78/1.39RossStores 0.61/1.03Williams-Sonoma

1.54/1.02Workday 0.67/0.53

FridayEarnings expected*

Estimate/YearAgo($)

Foot Locker0.57/1.13

Helmerich&Payne(0.78)/0.38

* FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DON’T INCLUDE EXTRAORDINARY ITEMS (LOSSES IN PARENTHESES) ADJUSTED FORSTOCK SPLIT NOTE: FORECASTS ARE FROM DOW JONES WEEKLY SURVEY OF ECONOMISTS

The future ofsmall businessis everyone’sbusiness

We’re inspired by the ways small businesseshave adapted to address incrediblechallenges. It’s not easy, but we can help.

Visit our Resource Center at mutualofamerica.comfor insights into the current environment, orcall 866.954.4321 for one-on-one support.

Securities offered by Mutual of America Securities LLC, Member FINRA/SIPC. Insurance products are issued byMutual of America Life Insurance Company, 320 Park Avenue, New York, NY 10022-6839. Mutual of America® isa registered service mark of Mutual of America Life Insurance Company.

When smallbusiness wins,we all win.

P2JW321000-2-B00500-1--------XA

B6 | Monday, November 16, 2020 THEWALL STREET JOURNAL.

Experience the events, offers and insights includedwith your membership to TheWall Street Journal.Sign in atWSJplus.com

Enjoy aworldof benefitsanytime,anywhere.

©2020 Dow Jones & Co., Inc. All rights reserved.

P2JW321000-0-B00600-1--------XA

THEWALL STREET JOURNAL. Monday, November 16, 2020 | B7

HSBC’s pretax profit

HSBC'sworkforce†

*After 2008, includes North Africa †At year end 2019Source: the company

Chinese

Indian

British

23%

17

16

9

6

36

All EmployeesSenior Leaders

$15

–5

0

5

10

billion

’102002 ’19

Hong Kong

Asia excludingHong Kong

Europe

Middle East*North AmericaLatin America

ality. There are four British citi-zens and three otherWesterners: Henri de Castriesfrom France, Pauline van derMeer Mohr from the Nether-lands and José Antonio MeadeKuribreña from Mexico. EwenStevenson, the finance director,holds British and New Zealandcitizenship. The two Chinesenationals on the board areLaura Cha and Irene Lee.

HSBC is starting a new digi-tal wealth planning and insur-ance unit in China called Pinna-cle, which will hire between2,000 and 3,000 employees inthe next four years. Pinnaclehas obtained a fintech licensein China, a first for a foreign fi-nancial institution in the coun-try, according to the bank.

Bob Tricker, a former HongKong University professor of fi-nance who helped draft theAsian port city’s corporate-gov-ernance code in the 1980s, saysthe nationality question isn’tcomplicated.

“It’s intuitively obvious,”Mr.Tricker said. “If their strategyis to see their future in Chinathen they need to orientatetheir governance, which is con-cerned with the way power isexercised over a company, inChina.”

Mr. Quinn emphasized theAsian experience of boardmembers including himself, Mr.Tucker, Mr. Tai and Mr. Forese,who have all worked in the re-gion. Ms. Cha and Ms. Lee are“very strong,” he said.

“We have a very strongmanagement team in Asia,”Mr.Quinn said. “Peter Wong hasgrown up and lived in Asia allof his life apart from some timein the U.S. when he was at uni-versity.”

Mr. Wong is chief executiveof HSBC’s Hong Kong-basedunit, whose local board, onerung below the main board ofdirectors, is chaired by Ms. Chaand composed mainly of citizensof Asian nations. Earlier thisyear, an HSBC Chinese social-media account posted a photo ofMr. Wong signing a petitionbacking China’s security law.

Opponents of the law criti-cized Mr. Wong, arguing itwould undo Hong Kong’s auton-omy and threaten its Western-style pillars of free speech andindependent courts. Chinesepoliticians have said the lawwas necessary after a year ofprotests.

Nationality has long been astrategic consideration at HSBC,which was founded by Britishbankers in Hong Kong in 1865.Faced with the prospect ofHSBC becoming a Chinese bankwhen the U.K. ceded control ofHong Kong, Michael Sandberg,the bank’s chairman until 1986,devised an international strat-egy called the “three-leggedstool” to build out operations inEurope and the Americas to bal-ance those in Asia.

Mr. Sandberg said in 1986that if HSBC found itself con-fined to China after the 1997handover of Hong Kong, “itmust be absolutely as night fol-lows day that we would becomea Chinese bank” and that in suchcircumstances it would be “acomplete anachronism to haveall our senior officers British.”

HSBC expanded to 88 terri-tories in the 1990s and early2000s, marketing itself as theworld’s local bank and movingits headquarters to London. Itscaled back in the wake of theglobal financial crisis of 2008.The bank has sold billions ofdollars of assets and now oper-ates in 64 territories.

—Frances Yoonand Julie Steinberg

contributed to this article.

Global banking giant HSBCHoldings PLC has made clearthat its business destiny is inChina. Its board, however, re-mains an Anglo-American affair.

The London-based, Asia-fo-cused bank appointed threeboard members along with achief legal officer and a chiefoperating officer in the past 12months. All are American. Justtwo out of 14 board membersare Chinese.

HSBC exemplifies the diffi-culties multinational companiesface navigating tensions be-tween the U.S. and China. Thebank has received competingdemands for pledges of loyaltyfrom Washington and Beijingafter China imposed a national-security law on Hong Kong. TheU.S., the U.K. and other West-ern governments opposed ex-tending the law to Hong Kong.

The high-level appointmentscome even as the bank is scal-ing back its already modest U.S.operations and shuttingbranches there.

“It doesn’t make good busi-ness sense,” said Gregg Li, aHong Kong-based investor whoadvises companies on gover-nance, pointing out that Shen-zhen, China-based Ping An In-surance—HSBC’s largestinvestor—doesn’t have a repre-sentative on the bank’s board.“Given where China is going Iwould think you would startworking much closer with theChinese economy and majorplayers.” Ping An declined tocomment.

HSBC earns more money inAsia than it does in the rest of

the world. The bank’s Britishchief executive, Noel Quinn, isrefocusing on the lender’s lucra-tive network in China and HongKong while scaling back opera-tions in Europe and the U.S.

Mr. Quinn played down theimportance of nationality in aninterview. “You’ve got to lookat our experience, not just thenationality,” he said.

In May, former Hong KongChief Executive Leung Chun-ying called on HSBC to expresssupport for the security law orrisk losing business. HSBCwasn’t among the banks thatarranged a Chinese governmentdollar-bond sale in October, thefirst time in years that it wasn’tinvolved in such a sale.

“I shall watch with interestnow that the bank has a newboard,” Mr. Leung said in anemail from Beijing. “Any busi-ness should have sufficient col-lective expertise on the boardlevel of its major markets.”

Mark Tucker, HSBC’s Britishchairman, led the appointmentof former Citigroup Inc. Presi-dent Jamie Forese, formerBridgewater Associates LP co-CEO Eileen Murray and formerMicrosoft Corp. executive Ste-ven Guggenheimer to the boardthis year. Bob Hoyt was ap-pointed chief legal officer inOctober and John Hinshaw wasappointed chief operating offi-cer in December.

Along with directors JacksonTai and Heidi Miller, Americansrepresent 36% of the board, upfrom 25% in 2016, before Mr.Tucker became chairman.There are more American di-rectors than any other nation-

BY SIMON CLARK

Westerners ControlHSBC Board SeatsDespite Asia Focus

Just two of 14members are fromChina even as thebank expands there.

BUSINESS & FINANCEThis announcement is neither an offer to purchase nor a solicitation of an offer to sell Shares (as defined below), and the provisions herein are subject in their entirety

to the provisions of the Offer (as defined below). The Offer is made solely pursuant to the Offer to Purchase, dated November 16, 2020, and the related Letterof Transmittal and any amendments or supplements thereto, and is being made to all holders of Shares. The Offer is not being made to (nor will tenders

be accepted from or on behalf of) holders of Shares in any jurisdiction in which the making of the Offer or the acceptance thereof would not bein compliance with the securities, “blue sky” or other applicable laws of such jurisdiction. In those jurisdictions where applicable laws

require the Offer to be made by a licensed broker or dealer, the Offer will be deemed to be made on behalf of Purchaser (as definedbelow) by one or more registered brokers or dealers licensed under the laws of such jurisdiction to be designated by Purchaser.

Notice of Offer to Purchase for CashAll Outstanding Shares of Common Stock of

Dunkin’ Brands Group, Inc.a Delaware corporation

at

$106.50 Net Per SharePursuant to the Offer to Purchase

Dated November 16, 2020

by

Vale Merger Sub, Inc.a wholly-owned indirect subsidiary of

Inspire Brands, Inc.Vale Merger Sub, Inc. (“Purchaser”), a Delaware corporation and a wholly-owned indirect subsidiary of Inspire Brands, Inc. (“Parent”), a Delaware corporation,

is offering to purchase, subject to certain conditions, including the satisfaction of the Minimum Tender Condition, as described below, any and all of the issuedand outstanding shares of common stock, par value $0.001 per share (the “Shares”), of Dunkin’ Brands Group, Inc., a Delaware corporation (“Dunkin’ Brands”), ata price of $106.50 per Share, without interest (the “Offer Price”), net to the seller in cash, less any applicable withholding taxes, upon the terms and subject to theconditions set forth in the Offer to Purchase, dated November 16, 2020 (the “Offer to Purchase”), and in the related Letter of Transmittal (the “Letter of Transmittal”which, together with the Offer to Purchase and other related materials, as each may be amended or supplemented from time to time, constitutes the “Offer”).

Stockholders of record who tender directly to American Stock Transfer & Trust Company (the “Depositary”) will not be obligated to pay brokerage fees orcommissions or, except as otherwise provided in the Letter of Transmittal, stock transfer taxes with respect to the purchase of Shares by Purchaser pursuantto the Offer. Stockholders who hold their Shares through a broker, dealer, commercial bank, trust company or other nominee should consult with such institutionas to whether it charges any service fees or commissions.

THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT ONE MINUTEFOLLOWING 11:59 P.M. (12:00 MIDNIGHT), EASTERN TIME, ON MONDAY,DECEMBER 14, 2020, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED.

The Offer is being made pursuant to the Agreement and Plan of Merger, dated as of October 30, 2020 (as it may be amended from time to time, the “MergerAgreement”), among Dunkin’ Brands, Parent and Purchaser. The Merger Agreement provides, among other things, that, as soon as practicable following theconsummation of the Offer, Purchaser will be merged with and into Dunkin’ Brands (the “Merger”) in accordance with Section 251(h) of the General CorporationLaw of the State of Delaware (as amended, the “DGCL”), with Dunkin’ Brands continuing as the surviving corporation in the Merger and thereby becoming awholly-owned indirect subsidiary of Parent. Because the Merger will be governed by Section 251(h) of the DGCL, assuming the requirements of Section 251(h) ofthe DGCL are met, no Dunkin’ Brands stockholder vote will be required to adopt the Merger Agreement and consummate the Merger. As a result of the Merger,each outstanding Share immediately prior to the effective time of the Merger (other than Shares (i) irrevocably accepted for purchase by Purchaser in the Offer,(ii) held in treasury by Dunkin’ Brands or owned by any direct or indirect wholly owned subsidiary of Dunkin’ Brands, (iii) owned by Parent or Purchaser orany direct or indirect wholly-owned subsidiary of Parent or (iv) for which appraisal rights have been properly demanded in accordance with the DGCL) will beconverted automatically into the right to receive $106.50 per Share in cash (without interest and less any applicable withholding taxes). Following the Merger,Dunkin’ Brands will cease to be a publicly traded company.

The Offer is not subject to any financing condition. The Offer is conditioned upon, among other things, the satisfaction of the Minimum Tender Condition andthe waiver by Parent or Purchaser of the satisfaction of the Inside Date Condition and the HSR Condition (as defined below). The “Minimum Tender Condition”requires that the number of Shares validly tendered in accordance with the terms of the Offer and “received” (as defined in Section 251(h)(6) of the DGCL), and notvalidly withdrawn, together with any Shares owned by Purchaser and its affiliates, equals at least a majority of the outstanding Shares as of one minute following11:59 p.m. (12:00 midnight), Eastern Time, on Monday, December 14, 2020 (the “Offer Expiration Time,” unless Purchaser shall have extended the period duringwhich the Offer is open in accordance with the Merger Agreement, in which event “Offer Expiration Time” will mean the latest time and date at which the Offer,as so extended by Purchaser, will expire). For purposes of determining whether the Minimum Tender Condition has been satisfied, Shares tendered in theOffer pursuant to the guaranteed delivery procedures that have not yet been received are excluded. The “Inside Date Condition” requires that, unless suchcondition is waived by Parent or Purchaser, the Offer Expiration Time will not occur on or prior to December 18, 2020. The “HSR Condition” requires that anyapplicable waiting period applicable to the purchase of Shares pursuant to the Offer under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended(the “HSR Act”), will have expired or been terminated. The Offer is also subject to other conditions as described in the Offer to Purchase. The conditions to theOffer must be satisfied or waived on or prior to the Offer Expiration Time.

The Dunkin’ Brands Board has unanimously (i) determined that the Merger Agreement and the transactions contemplated thereby (including the Offer and theMerger) are fair to and in the best interests of Dunkin’ Brands and its stockholders; (ii) declared it advisable to enter into the Merger Agreement; (iii) authorizedand approved the execution, delivery and performance by Dunkin’ Brands of the Merger Agreement and the consummation of the transactions contemplated bythe Merger Agreement (including the Offer and the Merger); and (iv) resolved, subject to the terms of the Merger Agreement, to recommend that the stockholdersof Dunkin’ Brands accept the Offer and tender their Shares to Purchaser pursuant to the Offer.

The Merger Agreement contains provisions governing the circumstances in which the Offer may be extended. Specifically, the Merger Agreement providesthat Purchaser will extend the Offer: (i) for any period required by any applicable rule, regulation, interpretation or position of the Securities and ExchangeCommission (the “SEC”) or its staff or of NASDAQ or as may be necessary to resolve any comments of the SEC or its staff or NASDAQ), in each case, as applicableto the Offer, the Solicitation/Recommendation Statement on Schedule 14D-9 of Dunkin’ Brands, including exhibits and annexes attached thereto or the Offerdocuments and (ii) if as of any then-scheduled Offer Expiration Time any condition to the Offer (as described in the Merger Agreement) is not satisfied andhas not been waived by Parent or Purchaser (to the extent permitted under the Merger Agreement), on one or more occasions in consecutive increments ofup to ten business days each (or such longer or shorter period as the parties may agree in writing). For the foregoing clause (ii), if any then-scheduled OfferExpiration Time is ten or fewer business days before the Outside Date (as defined below) (after taking into account any extension thereof pursuant to the MergerAgreement), Purchaser will instead extend the Offer until 11:59 p.m., Eastern Time, on the day before the Outside Date (or such other date and time as theparties may agree in writing). If all of the Offer Conditions other than the Inside Date Condition (and other than those conditions that by their nature are to besatisfied at the Offer Expiration Time) have been satisfied (or waived) in accordance with the terms of the Merger Agreement, Purchaser will extend the Offeruntil one minute following 11:59 p.m. (12:00 midnight), Eastern Time, at the end of the first business day after December 18, 2020. Parent and Purchaser will notbe required to extend the Offer to a date subsequent to March 31, 2021 or, if extended pursuant to the Merger Agreement, such later date (the “Outside Date”).

If Purchaser extends the Offer, it will inform the Depositary of that fact and will make a public announcement of the extension not later than 9:00 a.m., EasternTime, on the next business day after the day of the scheduled Offer Expiration Time.

Subject to the applicable rules and regulations of the SEC, Purchaser expressly reserves the right, at any time to waive, in whole or in part, any conditions tothe Offer or modify the terms of the Offer (including by increasing the Offer Price) not inconsistent with the terms of the Merger Agreement, except that Purchaseris not permitted (without the prior written consent of Dunkin’ Brands) to (i) reduce the number of Shares sought pursuant to the Offer, (ii) reduce the Offer Price(except to the extent required pursuant to the terms of the Merger Agreement in connection with a stock split, reverse stock split, stock dividend, reorganization,recapitalization, reclassification, combination, exchange of shares or other like change), (iii) amend, modify, supplement or waive the Minimum Tender Conditionor the condition that the Merger Agreement has not been terminated in accordance with its terms, (iv) add to or amend, modify or supplement any conditions to theOffer, (v) directly or indirectly amend, modify or supplement any other term of the Offer in any individual case in any manner adverse to the holders of Shares orthat would, individually or in the aggregate, reasonably be expected to prevent or delay the consummation of the Offer or the Merger or impair the ability of Parentor Purchaser to consummate the Offer, (vi) except as expressly required or permitted by the Merger Agreement, extend or otherwise change the Offer ExpirationTime, (vii) change the form of consideration payable in the Offer or (viii) provide for any “subsequent offering period” (or any extension of any thereof) within themeaning of Rule 14d-11 under the Exchange Act.

Upon the terms and subject to the conditions of the Offer, promptly after the Offer Expiration Time, Purchaser will accept for payment all Shares validlytendered and not validly withdrawn prior to the Offer Expiration Time, and Purchaser will pay for such Shares promptly (and in any event within two businessdays) after the Offer Expiration Time. For purposes of the Offer, Purchaser will be deemed to have accepted for payment, and thereby purchased, Shares validlytendered and not validly withdrawn as, if and when Purchaser gives oral or written notice to the Depositary of its acceptance for payment of such Shares pursuantto the Offer. Upon the terms and subject to the conditions of the Offer, payment for Shares accepted for payment pursuant to the Offer will be made by deposit ofthe Offer Price for such Shares with the Depositary, which will act as paying agent for the purpose of receiving payments from Purchaser and transmitting suchpayments to tendering stockholders whose Shares have been accepted for payment. If Purchaser extends the Offer, is delayed in its acceptance for payment ofShares (whether before or after its acceptance for payment of Shares) or is unable to accept Shares for payment pursuant to the Offer for any reason, then, withoutprejudice to Purchaser’s rights under the Offer and the Merger Agreement, the Depositary may retain tendered Shares on Purchaser’s behalf, and such Sharesmay not be withdrawn except to the extent that tendering stockholders are entitled to withdrawal rights as described in the Offer to Purchase and as otherwiserequired by Rule 14e-1(c) under the Exchange Act. Under no circumstances will Parent or Purchaser pay interest on the purchase price for Shares by reason of anyextension of the Offer or any delay in making such payment for Shares.

No alternative, conditional or contingent tenders will be accepted. In all cases, payment for Shares tendered and accepted for payment pursuant to the Offerwill only be made after timely receipt by the Depositary of (i) the certificates evidencing such Shares (the “Certificates”) or confirmation of a book-entry transferof such Shares (a “Book-Entry Confirmation”) into the Depositary’s account at The Depository Trust Company (“DTC”) pursuant to the procedures set forth inthe Offer to Purchase, (ii) the Letter of Transmittal, properly completed and duly executed, with any required signature guarantees or, in the case of a book-entrytransfer, an Agent’s Message (as described in the Offer to Purchase) in lieu of the Letter of Transmittal and (iii) any other documents required by the Letter ofTransmittal. Accordingly, tendering stockholders may be paid at different times depending upon when Certificates or Book-Entry Confirmations with respect toShares are actually received by the Depositary. Holders of Shares who wish to tender Shares pursuant to the Offer and cannot deliver such Shares and all otherrequired documents to the Depositary by the Offer Expiration Time or cannot comply with the procedures for book-entry transfer described in Section 3 of theOffer to Purchase, in each case prior to the Offer Expiration Time, may nevertheless tender such Shares by following the procedures for guaranteed delivery setforth in Section 3 of the Offer to Purchase.

Shares tendered pursuant to the Offer may be withdrawn at any time prior to the Offer Expiration Time and may also be withdrawn at any time afterJanuary 15, 2021, which is the 60th day after the date of the commencement of the Offer, unless such Shares have already been accepted for payment by Purchaserpursuant to the Offer and not validly withdrawn.

For a withdrawal to be effective, a written (or, with respect to Eligible Institutions (as defined in the Offer to Purchase), a facsimile transmission) notice ofwithdrawal must be timely received by the Depositary at the address set forth on the back cover page of the Offer to Purchase. Any such notice of withdrawalmust specify the name of the person who tendered the Shares to be withdrawn, the number of Shares to be withdrawn and the name of the registered holder ofsuch Shares, if different from that of the person who tendered such Shares. If Certificates evidencing Shares to be withdrawn have been delivered or otherwiseidentified to the Depositary, then, prior to the physical release of such Certificates, the serial numbers shown on such Certificates must be submitted to theDepositary and the signature(s) on the notice of withdrawal must be guaranteed by an Eligible Institution (as described in the Offer to Purchase), unless suchShares have been tendered for the account of an Eligible Institution. If Shares have been tendered pursuant to the procedure for book-entry transfer as set forth inthe Offer to Purchase, any notice of withdrawal must also specify the name and number of the account at DTC to be credited with the withdrawn Shares.

Withdrawals of Shares may not be rescinded. Any Shares validly withdrawn will thereafter be deemed not to have been validly tendered for purposes of the Offer.However, withdrawn Shares may be re-tendered again following one of the procedures described in the Offer to Purchase at any time prior to the Offer Expiration Time.

Purchaser will determine, in its sole discretion, all questions as to the form and validity (including time of receipt) of any notice of withdrawaland Purchaser’s determination will be final and binding. None of Parent, Purchaser, the Depositary, the Information Agent (as defined below) orany other person will be under any duty to give notice of any defects or irregularities in any notice of withdrawal or incur any liability for failureto give any such notification.

The information required to be disclosed by paragraph (d)(1) of Rule 14d-6 of the General Rules and Regulations under the Exchange Act is contained in theOffer to Purchase and is incorporated herein by reference.

Dunkin’ Brands has provided Purchaser with Dunkin’ Brands’ stockholder list and security position listings for the purpose of disseminating the Offer toPurchase, Letter of Transmittal and other Offer related materials to holders of Shares. The Offer to Purchase and the related Letter of Transmittal will be mailedto record holders of Shares whose names appear on Dunkin’ Brands’ stockholder list and will be furnished, for subsequent transmittal to beneficial owners ofShares, to brokers, dealers, commercial banks, trust companies and similar persons whose names, or the names of whose nominees, appear on the stockholderlist or, if applicable, who are listed as participants in a clearing agency’s security position listing.

The tender of Shares in the Offer for cash or the exchange of Shares for cash pursuant to the Merger will be a taxable transaction to United States Holders (asdefined in the Offer to Purchase) for United States federal income tax purposes. See the Offer to Purchase for a more detailed discussion of the tax treatment of theOffer. Each holder of Shares is urged to consult with its tax advisor as to the particular tax consequences to such holder of tendering Shares for cash inthe Offer or exchanging Shares for cash pursuant to the Merger (including the application and effect of any U.S. federal, state, local or non-U.S. laws).

The Offer to Purchase and the related Letter of Transmittal contain important information. Holders of Shares should carefully read bothdocuments in their entirety before any decision is made with respect to the Offer.

Questions and requests for assistance may be directed to Innisfree M&A Incorporated (the “Information Agent”) at its address and telephone numbers setforth below. Requests for copies of the Offer to Purchase, the Letter of Transmittal, the Notice of Guaranteed Delivery and other tender offer materials may bedirected to the Information Agent. Such copies will be furnished promptly at Purchaser’s expense. Stockholders may also contact brokers, dealers, commercialbanks, trust companies or other nominees for assistance concerning the Offer. Additionally, copies of this Offer to Purchase, the related Letter of Transmittal,the Notice of Guaranteed Delivery and any other material related to the Offer may be obtained at the website maintained by the SEC at www.sec.gov. Except asset forth in the Offer to Purchase, neither Purchaser nor Parent will pay any fees or commissions to any broker or dealer or any other person for soliciting tendersof Shares pursuant to the Offer. Brokers, dealers, commercial banks, trust companies or other nominees will, upon request, be reimbursed by Purchaser forcustomary mailing and handling expenses incurred by them in forwarding the Offer materials to their customers.

The Information Agent for the Offer is:

Innisfree M&A Incorporated

501 Madison Avenue, 20th FloorNew York, NY 10022

Shareholders may call toll free: (877) 717-3929Banks and Brokers may call collect: (212) 750-5833

November 16, 2020

P2JW321000-0-B00700-1--------XA

B8 | Monday, November 16, 2020 THEWALL STREET JOURNAL.

New to the Market More B9

Treasury yield curveYield to maturity of current bills,notes and bonds

0.00

0.50

1.00

1.50

2.00

2.50%

1month(s)

3 6 1years

2 3 5 7 10 20 30

maturity

t

Tradeweb ICEFriday Close

tOne year ago

Forex RaceYen, euro vs. dollar; dollar vs.major U.S. trading partners

–10

–5

0

5

10%

2019 2020

Euro

s

Yen

s

WSJ Dollar indexs

Sources: Tradeweb ICEU.S. Treasury Close; Tullett Prebon; DowJonesMarketData

CorporateBorrowingRatesandYieldsSpread+/- Treasurys,

Yield (%) in basis pts, 52-wkRange Total ReturnBond total return index Last Wkago Last Low High 52-wk 3-yr

U.S. Treasury, Barclays 0.610 0.570 7.95 5.23U.S. TreasuryLong, Barclays 1.490 1.440 17.34 10.70Aggregate, Barclays 1.230 1.190 n.a. 39 127 7.29 5.27Fixed-RateMBS, Barclays 1.340 1.300 n.a. 28 132 4.07 3.72HighYield 100, ICEBofA 4.190 4.137 380 271 1018 3.740 4.508MuniMaster, ICEBofA 1.059 1.076 36 -12 41 4.794 4.091EMBIGlobal, J.P.Morgan 4.532 4.650 348 277 662 5.710 4.677

Sources: J.P.Morgan; S&PDowJones Indices; BloombergBarclays; ICEDataServices

ConsumerRates andReturns to InvestorU.S. consumer ratesA consumer rate against itsbenchmark over the past year

0.00

1.00

2.00

3.00

4.00%

D J2020

F M A M J J A S O N

t

5-yearadjustable-ratemortgage (ARM)

t5-year Treasury

note yield

Selected ratesFive-yearARM,Rate

Bankrate.comavg†: 3.21%CreditUnion ofNewJersey 2.50%Ewing, NJ 609-538-4061

AmericanAirlines Federal CreditUnion 2.63%FtWorth, TX 800-533-0035

StarOneCreditUnion 2.63%Sunnyvale, CA 408-742-2801

WebsterBank 2.63%Hartford, CT 888-493-2783

AssociatedBank,NA 2.75%Rockford, IL 800-682-4989

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 0.00-0.25 0.00-0.25 0.00 l 1.50 -1.00Prime rate* 3.25 3.25 3.25 l 4.75 -1.00Libor, 3-month 0.22 0.21 0.21 l 1.96 -1.19Moneymarket, annual yield 0.20 0.21 0.19 l 0.58 -0.12Five-year CD, annual yield 0.59 0.59 0.59 l 1.43 -0.9030-yearmortgage, fixed† 2.95 3.08 2.93 l 4.22 -0.9715-yearmortgage, fixed† 2.46 2.62 2.46 l 3.57 -0.84Jumbomortgages, $510,400-plus† 2.97 2.95 2.93 l 4.36 -1.32Five-year adjmortgage (ARM)† 3.21 3.21 2.85 l 4.61 -0.30New-car loan, 48-month 4.14 4.14 4.13 l 4.50 1.13Bankrate.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

S&P 500 Index3585.15 s75.71, or 2.16% last weekHigh, low, open and close for each ofthe past 52 weeks

Year agoLast

Trailing P/E ratio *P/E estimate *Dividend yield *All-time high

40.37 24.2325.65 18.911.70 1.87

3585.15, 11/13/20

2000

2250

2500

2750

3000

3250

3500

3750

N D J F M A M J J A S O N

65-day moving average

200-day moving average

Nasdaq Composite

t 65.94, or -0.55%last week

12050

11800

11550

113006

November9 10 11 12 13

DJ US TSM

s 779.54, or 2.16%last week

37200

36600

36000

354006

November9 10 11 12 13

International Stock IndexesLatestWeek 52-WeekRange YTD

Region/Country Index Close % chg Low Close High % chg

World TheGlobalDow 3249.08 5.74 2138.97 • 3300.22 –0.1DJGlobal Index 463.03 2.33 292.30 • 463.03 6.7DJGlobal exU.S. 266.51 2.84 174.38 • 267.54 1.1

Americas DJAmericas 835.90 1.93 512.68 • 835.90 9.9Brazil SaoPauloBovespa 104723.00 3.76 63569.62 • 119527.63 –9.4Canada S&P/TSXComp 16675.64 2.41 11228.49 • 17944.06 –2.3Mexico S&P/BMV IPC 40791.81 5.87 32964.22 • 45902.68 –6.31Chile Santiago IPSA 2758.77 5.06 2045.49 • 3567.90 –17.3

EMEA StoxxEurope600 385.18 5.13 279.66 • 433.90 –7.4StoxxEurope50 3051.50 5.21 2383.14 • 3539.12 –10.3

Eurozone EuroStoxx 381.17 6.39 261.53 • 421.34 –5.6EuroStoxx50 3432.07 7.12 2385.82 • 3865.18 –8.4

Austria ATX 2410.27 11.94 1630.84 • 3229.37 –24.4Belgium Bel-20 3524.20 10.43 2528.77 • 4198.31 –10.9France CAC40 5380.16 8.45 3754.84 • 6111.24 –10.0Germany DAX 13076.72 4.78 8441.71 • 13789.00 –1.3Greece AthexComposite 655.68 11.49 484.40 • 948.64 –28.5Israel TelAviv 1418.39 3.23 1171.21 • 1751.79 –15.7Italy FTSEMIB 20903.58 6.21 14894 • 25478 –11.1Netherlands AEX 596.87 4.18 404.10 • 629.23 –1.3Portugal PSI 20 4367.43 8.08 3596.08 • 5435.85 –16.2Russia RTS Index 1227.78 4.20 832.26 • 1646.60 –20.7SouthAfrica FTSE/JSEAll-Share 57182.60 1.41 37963.01 • 59001.87 0.2Spain IBEX35 7783.70 13.29 6107.2 • 10083.6 –18.5Sweden OMXStockholm 747.71 2.63 478.95 • 749.82 9.8Switzerland SwissMarket 10492.61 1.65 8160.79 • 11263.01 –1.2U.K. FTSE 100 6316.39 6.88 4993.89 • 7674.56 –16.3

Asia-PacificAustralia S&P/ASX200 6405.20 3.47 4546.0 • 7162.5 –4.2China Shanghai Composite 3310.10 –0.06 2660.17 • 3451.09 8.5HongKong HangSeng 26156.86 1.73 21696.13 • 29056.42 –7.2India S&PBSESensex 43443.00 3.70 25981.24 • 43593.67 5.3Japan Nikkei StockAvg 25385.87 4.36 16552.83 • 25520.88 7.3Malaysia FTSEBursaMalaysiaKLCI 1589.69 4.61 1219.72 • 1615.67 0.1Singapore Straits Times 2711.39 5.15 2233.48 • 3281.03 –15.9SouthKorea Kospi 2493.87 3.20 1457.64 • 2493.87 13.5Taiwan TAIEX 13273.33 2.31 8681.34 • 13273.33 10.6

Source: FactSet; DowJonesMarketData

Commodities andCurrencies

LastWeek YTDClose Net chg %Chg % chg

DJCommodity 664.20 20.44 3.18 3.41

TR/CCCRB Index 151.86 4.16 2.81 -18.26

Crude oil,$per barrel 40.13 2.99 8.05 -34.28

Natural gas,$/MMBtu 2.995 0.107 3.70 36.82

Gold,$per troy oz. 1885.70 -64.60 -3.31 24.10

U.S. Dollar Index 92.72 0.49 0.53 -3.81

WSJDollar Index 87.46 0.27 0.31 -2.35

Euro, per dollar 0.8448 0.0027 0.32 -5.26

Yen, per dollar 104.62 1.26 1.22 -3.70

U.K. pound, in dollars 1.32 0.0047 0.36 -0.46

52-WeekLow Close(l) High %Chg

DJCommodity 433.70 l 668.77 5.95

TR/CCCRB Index 106.29 l 187.39 -16.10

Crude oil,$per barrel -37.63 l 63.27 -30.47

Natural gas,$/MMBtu 1.482 l 3.354 11.42

Gold,$per troy oz. 1453.40 l 2051.50 28.51

U.S. Dollar Index 92.14 l 102.82 -5.39

WSJDollar Index 87.19 l 97.02 -3.76

Euro, per dollar 0.8378 l 0.9352 -6.63

Yen, per dollar 102.37 l 112.11 -3.82

U.K. pound, in dollars 1.15 l 1.34 2.30

MajorU.S. Stock-Market IndexesLatestWeek 52-Week % chg

High Low Close Net chg % chg Low Close (l) High %chg YTD 3-yr. ann.DowJones

Industrial Average 29933.83 28902.13 29479.81 1156.41 4.08 18591.93 l 29551.42 5.3 3.3 7.9TransportationAvg 12379.03 11742.21 12085.32 470.67 4.05 6703.63 l 12096.55 11.1 10.9 8.3UtilityAverage 931.30 895.84 910.91 29.15 3.31 610.89 l 960.89 7.4 3.6 6.0Total StockMarket 37426.07 36009.16 36830.00 779.54 2.16 22462.76 l 36830 15.5 11.5 11.3Barron's 400 789.51 773.93 787.29 21.51 2.81 455.11 l 787.29 11.2 7.5 5.0

NasdaqStockMarket

NasdaqComposite 12108.07 11424.61 11829.29 -65.94 -0.55 6860.67 l 12056.44 38.5 31.8 20.5Nasdaq 100 12268.66 11512.47 11937.84 -153.51 -1.27 6994.29 l 12420.54 43.6 36.7 23.6

S&P

500 Index 3645.99 3511.91 3585.15 75.71 2.16 2237.40 l 3585.15 14.9 11.0 11.5MidCap400 2162.80 2055.07 2113.26 86.31 4.26 1218.55 l 2113.26 5.6 2.4 4.9SmallCap600 1001.13 948.41 994.29 69.07 7.47 595.67 l 1041.03 1.2 -2.6 3.6

Other Indexes

Russell 2000 1749.36 1652.11 1744.04 99.88 6.08 991.16 l 1744.04 9.2 4.5 5.7NYSEComposite 13930.88 13476.23 13761.32 542.65 4.11 8777.38 l 14183.2 2.0 -1.1 3.8Value Line 520.33 490.07 518.77 28.70 5.86 305.71 l 562.05 -3.1 -6.1 -1.2NYSEArcaBiotech 5569.80 5394.34 5555.17 73.85 1.35 3855.67 l 6142.96 18.9 9.6 10.8NYSEArcaPharma 677.65 661.20 673.45 15.61 2.37 494.36 l 675.64 9.5 3.0 8.1KBWBank 90.69 81.21 87.53 9.01 11.48 56.19 l 114.12 -19.3 -22.8 -3.8PHLX§Gold/Silver 150.03 139.37 143.38 -12.00 -7.72 70.12 l 161.14 53.2 34.1 21.3PHLX§Oil Service 35.14 29.08 33.75 4.994 17.37 21.47 l 80.99 -50.1 -56.9 -37.5PHLX§Semiconductor 2604.50 2417.39 2508.82 -20.45 -0.81 1286.84 l 2529.27 43.9 35.6 24.3CBOEVolatility 27.27 22.41 23.10 -1.76 -7.08 11.54 l 82.69 91.7 67.6 26.2

§NasdaqPHLX Sources: FactSet; DowJonesMarketData

Real-time U.S. stockquotes are available onWSJ.com. Track most-active stocks, newhighs/lows, mutualfunds and ETFs.

All are available free atWSJMarkets.com

WSJ.COM

BenchmarkYields andRatesBenchmarkYields andRates

MARKETS DIGEST

Dow Jones Industrial Average

29479.81 s1156.41, or 4.08% last weekHigh, low, open and close for each ofthe past 52 weeks

Year agoLast

Trailing P/E ratioP/E estimate *Dividend yieldAll-time high

29.48 20.8924.32 18.602.07 2.22

29551.42, 02/12/20

16000

18000

20000

22000

24000

26000

28000

30000

N D J F M A M J J A S O N

Current divisor 0.15198707565833

Bars measure the point change from Monday's open

tt

Week's high

Week's low

Monday's open

Friday's close Monday's open

Friday's closeDOWN UP

Primarymarket t

t Composite

65-day moving average

200-day moving average

NYSE weekly volume, in billions of shares

0122436

N D J F M A M J J A S O N

*Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.; †Based on Nasdaq-100 Index

CurrenciesU.S.-dollar foreign-exchange rates in lateNewYork trading

US$vs,Fri YTD chg

Country/currency inUS$ perUS$ (%)

AmericasArgentina peso .0125 79.7223 33.1Brazil real .1832 5.4585 35.8Canada dollar .7616 1.3130 1.1Chile peso .001304 767.10 3.8Colombiapeso .000274 3643.40 11.0EcuadorUSdollar 1 1 unchMexico peso .0490 20.4109 7.8Uruguay peso .02333 42.8550 15.4Asia-PacificAustralian dollar .7272 1.3751 –3.5China yuan .1514 6.6064 –5.1HongKong dollar .1290 7.7539 –0.5India rupee .01341 74.582 4.5Indonesia rupiah .0000706 14170 2.1Japan yen .009559 104.62 –3.7Kazakhstan tenge .002324 430.25 12.7Macau pataca .1251 7.9920 –0.3Malaysia ringgit .2426 4.1225 0.8NewZealand dollar .6849 1.4601 –1.7Pakistan rupee .00631 158.375 2.2Philippines peso .0207 48.194 –5.0Singapore dollar .7419 1.3478 0.1SouthKoreawon .0009024 1108.12 –4.1Sri Lanka rupee .0054130 184.74 1.9Taiwan dollar .03512 28.474 –4.8Thailand baht .03317 30.150 1.3

US$vs,Fri YTD chg

Country/currency inUS$ perUS$ (%)

Vietnam dong .00004315 23176 0.02EuropeCzechRep. koruna .04478 22.329 –1.5Denmark krone .1589 6.2947 –5.5Euro area euro 1.1838 .8448 –5.3Hungary forint .003310 302.10 2.3Iceland krona .007329 136.45 12.7Norway krone .1091 9.1637 4.4Poland zloty .2641 3.7866 –0.2Russia ruble .01292 77.376 24.7Sweden krona .1151 8.6899 –7.2Switzerland franc 1.0958 .9126 –5.7Turkey lira .1305 7.6657 28.9Ukraine hryvnia .0355 28.1500 18.9UK pound 1.3199 .7576 0.5Middle East/AfricaBahrain dinar 2.6521 .3771 0.01Egypt pound .0639 15.6375 –2.6Israel shekel .2969 3.3684 –2.5Kuwait dinar 3.2700 .3058 0.9Oman sul rial 2.5976 .3850 –0.01Qatar rial .2746 3.641 –0.1SaudiArabia riyal .2666 3.7507 –0.02SouthAfrica rand .0645 15.5070 10.8

Close Net Chg %Chg YTD%Chg

WSJDollar Index 87.46 –0.30–0.34 –2.35

Sources: Tullett Prebon, DowJonesMarketData

PublicOfferings of Stock

IPOs in theU.S.MarketInitial public offerings of stock expected thisweek;might include someofferings, U.S. and foreign, open to institutional investors only via theRule 144amarket; deal amounts are for theU.S.market only

Symbol/ PricingExpected primary Shares Range($)pricing date Filed Issuer/business exchange (mil.) Low/High Bookrunner(s)

11/19 10/23 SoteraHealth Co SHC 46.6 20.00/ JPM, Credit Suisse, GS,A leading global provider ofmission-criticalsterilization and lab testingand advisory services tothemedical device andpharmaceutical industries.

Nq 23.00 Jefferies

11/19 10/6 Telos Corp TLS 12.4 16.00/ BRiley Securities,Software-Computer,Traditional &Other.Provider of informationtechnology software togovernment agencies andcommercial enterprises.

Nq 18.00 BMOCptlMkts,Needham

11/16 10/2 AspireReal Estate Investors Inc ASPI 15.0 20.00/ MS,BRiley Securities,REIT focused on portfolioof primarily affordable andworkforcemultifamilyproperties in dynamicU.S.metropolitan areas.

N 20.00 WFS, BMOCptlMkts,KeyBanc

Off theShelf“Shelf registrations” allowa company to prepare a stock or bond forsale,without selling thewhole issue at once. Corporations sell asconditions become favorable. Here are the shelf sales, or takedowns,over the lastweek:

Takedowndate/ Deal valueIssuer/Industry Registration date ($mil.) Bookrunner(s)

InMedPharmaceuticals Inc Nov. 12 $8.0 RothCptl Ptnrs,Healthcare June 19,320 Brookline CapitalMarkets

TherapeuticsMD Inc Nov. 10 $30.0 Cantor Fitzgerald&CoHealthcare July 31,318

Safehold Inc Nov. 10 $56.1 GS, BofASecurities, JPM, Barclays,Real Estate/Property July 2,318 Mizuho, Truist Financial Corp

AmericanAirlinesGroup Inc Nov. 10 $500.5 BofASecuritiesTransportation Feb. 19,320

OrganiGramHoldings Inc Nov. 10 $53.1 CanaccordGenuityHealthcare Nov. 6,319

Pacific Biosciences of California Inc Nov. 11 $105.5 MS, Cowen&Company LLC,Healthcare Nov. 10,320 Cantor Fitzgerald&Co

ArborRealtyTrust Inc Nov. 10 $94.5 JPM, JMPSecurities LLC,Real Estate/Property Aug. 7,320 Raymond James&Associates Inc

AuroraCannabis Inc Nov. 11 $150.0 BMOCptlMkts,Healthcare Oct. 27,320 ATBCapitalMarkets Inc, CIBC

FivePrimeTherapeutics Inc Nov. 12 $151.2 Cowen&Company LLC, SVBLeerinkHealthcare Nov. 6,318

TasekoMines Ltd Nov. 11 $23.0 Cantor Fitzgerald&Co, Velocity TradeHldingsMining May 1,320 BMOCptlMkts, Natl Bank Finl

Public andPrivateBorrowingTreasurysMonday, November 16 Wednesday, November 18

Auction of 13 and 26week bills; Auction of 20 year bond;announced onNovember 12; settles onNovember 19announced onNovember 12; settles onNovember 30

Thursday, November 19

Auction of 4week bill;announced onNovember 17; settles onNovember 24

Auction of 8week bill;

announced onNovember 17; settles onNovember 24

AWeek in the Life of theDJIAA look at how the Dow Jones Industrial Average component stocksdid in the past week and howmuch each moved the index. The DJIAgained 1,156.41 points, or 4.08%, on the week. A $1 change in theprice of any DJIA stock = 6.58-point change in the average. To date, a$1,000 investment on Dec. 31 in each current DJIA stock componentwould have returned $31,747, or a gain of 5.82%, on the $30,000investment, including reinvested dividends.

TheWeek’sActionPct Stock price Point chg $1,000 Invested(year-end '19)chg (%) change in average* Company Symbol Close $1,000

18.93 18.30 120.40 AmericanExpress AXP $114.99 $94018.62 29.37 193.24 Boeing BA 187.11 57816.70 11.88 78.16 Chevron CVX 83.03 71714.47 5.40 35.53 Walgreens WBA 42.71 74810.80 11.12 73.16 JPMorganChase JPM 114.08 848

10.31 3.87 25.46 Cisco CSCO 41.40 8929.37 17.27 113.63 Honeywell HON 201.54 1,1658.85 17.82 117.25 GoldmanSachs GS 219.08 9718.55 10.90 71.72 WaltDisney DIS 138.36 9578.09 4.00 26.32 Coca-Cola KO 53.45 991

7.75 3.74 24.61 Dow DOW 51.97 9996.46 10.42 68.56 Caterpillar CAT 171.71 1,1976.05 12.01 79.02 Visa V 210.48 1,1276.01 7.63 50.20 Travelers TRV 134.63 1,0045.38 7.65 50.33 Johnson&Johnson JNJ 149.90 1,048

4.32 2.53 16.65 Verizon VZ 61.06 1,0384.15 6.77 44.54 3M MMM 169.79 9903.27 4.77 31.38 Walmart WMT 150.54 1,2832.46 5.69 37.44 Amgen AMGN 237.36 1,0122.46 2.81 18.49 IBM IBM 116.85 917

2.36 8.21 54.02 UnitedHealthGroup UNH 355.67 1,2250.91 0.73 4.80 Merck MRK 81.09 9120.73 1.05 6.91 Procter&Gamble PG 144.28 1,1840.48 0.57 3.75 Apple AAPL 119.26 1,6390.15 0.07 0.46 Intel INTC 45.46 778

–0.48 –0.62 –4.08 Nike NKE 128.28 1,276–1.51 –3.28 –21.58 McDonald’s MCD 213.28 1,100–2.49 –7.07 –46.52 HomeDepot HD 277.17 1,293–3.22 –7.21 –47.44 Microsoft MSFT 216.51 1,384–4.09 –10.64 –70.01 salesforce.com CRM 249.51 1,534

*Based onComposite price. DJIA is calculated on primary-market price.Source: DowJonesMarketData; FactSet.

Track the MarketsCompare the performance ofselected global stock indexes,bond ETFs, currencies andcommodities atwsj.com/graphics/track-the-markets

P2JW321000-0-B00800-1--------XA

THEWALL STREET JOURNAL. Monday, November 16, 2020 | B9

Insider-TradingSpotlightTrading by ‘insiders’ of a corporation, such as a company’s CEO, vice president or director, potentially conveysnew information about the prospects of a company. Insiders are required to report large trades to theSECwithin twobusiness days. Here’s a look at the biggest individual trades by insiders, based on data received byThomsonFinancial onNovember 13, and year-to-date stock performance of the companyKEY: B: beneficial owner ofmore than 10%of a security class CB: chairman CEO: chief executive officer CFO: chief financial officerCO: chief operating officer D: director DO: director and beneficial owner GC: general counsel H: officer, director and beneficial ownerI: indirect transaction filed through a trust, insider spouse,minor child or other O: officer OD: officer and director P: presidentUT:unknown VP: vice president Excludes pure options transactions

Biggestweekly individual tradesBased on reports filedwith regulators this pastweek

No. of shrs in Price range ($) $ValueDate(s) Company Symbol Insider Title trans (000s) in transaction (000s) Close ($) Ytd (%)

BuyersNov. 9 KraftHeinz KHC A.VanDamme DI 13,849 30.38 420,742 31.61 -1.6

Nov. 3-5 XeroxHoldings XRX C. Icahn BI 1,060 18.26-18.93 19,456 21.64 -41.3Nov. 6 C. Icahn BI 243 18.99 4,618

Nov. 9 Cerevel TherapeuticsHoldings CERE A. Koppel DOI 332 10.30 3,423 12.29

Nov. 10 VertexPharmaceuticals VRTX B. Sachs D 15 216.47-218.79 3,260 225.52 3.0

Nov. 5-6 AmericanAssets Trust AAT E. Rady CEOI 130 21.13-21.85 2,794 26.60 -42.0Nov. 9-11 E. Rady CEOI 55 24.59-26.23 1,414

Nov. 5 Aon AON L. Knight DI 10 186.54-186.96 1,866 204.44 -1.8

Nov. 6 Dun BradstreetHoldings DNB A. Jabbour CEOI 38 26.31 1,000 27.40

Nov. 10 TupperwareBrands TUP R.Goudis OD 28 28.64 788 29.64 245.5

Nov. 5 MagellanMidstreamPartners MMP C. Joung D 20 35.32 706 39.89 -36.6

Nov. 9 Hanesbrands HBI R.Nelson D 50 12.73 637 12.95 -12.8

Nov. 6 Parsons PSN G. Ball CFOI 20 30.25 605 33.06 -19.9

Nov. 5 Greenhill & Co GHL S. Bok CEOI 50 10.66 533 11.68 -31.6

Nov. 10 ViewRay VRAY S. Drake CEO 155 3.23 500 3.90 -7.6

Nov. 9 International BusinessMachines IBM A.Gorsky D 4 117.86 499 116.85 -12.8

Nov. 10 Calix CALX D. Listwin D 20 22.53 451 24.69 208.6

Nov. 9-10 Corcept Therapeutics CORT G. Baker DI 19 17.71-17.96 334 18.09 49.5

SellersNov. 10 Flagstar Bancorp FBC D.Matlin DI 9,113 30.19 275,113 33.13 -13.4Nov. 10 P. Schoels DI 9,113 30.19 275,113

Nov. 4-5 Inphi IPHI F. Tamer CEO 481 139.18-147.98 69,468 148.57 100.7

Nov. 9 CarlyleGroup CG D. Rubenstein H 2,000 27.32 54,640 27.80 -13.3

Nov. 5 Microsoft MSFT B. Smith P 200 222.35-223.05 44,515 216.51 37.3Nov. 5 S. Nadella CEOI 105 222.52 23,253

Nov. 5 PaylocityHolding PCTY S. Sarowitz DO 200 188.92-206.31 38,925 189.14 56.5

Nov. 4 Humana HUM B. Broussard CEO 65 451.15 29,149 433.40 18.2Nov. 5 B. Kane CFO 49 442.74-446.87 21,884

Nov. 9 IDEX IEX A. Silvernail CEO 152 189.66 28,914 193.17 12.3

Nov. 10 Broadcom AVGO H. Tan CEO 78 361.36-372.29 28,534 373.50 18.2

Nov. 9-10 Eaton ETN C. Arnold OD 237 115.00-117.60 27,579 114.45 20.800

Nov. 9 TransDigmGroup TDG W.Howley ODI 39 572.36-605.19 23,029 566.78 1.2

Nov. 9-12 AbbVie ABBV R.Gonzalez CEO 232 95.74-97.49 22,437 99.04 11.9

Nov. 9 Centene CNC M.Neidorff CEO 300 70.12 21,036 69.05 9.8

Nov. 6 ElectronicArts Inc EA A.Wilson CEO 176 115.03-120.70 20,876 120.80 12.4

Nov. 9 Bill.comHoldings BILL R. Lacerte CEO 215* 91.13-98.36 20,629 95.24 150.3

Nov. 11 Estee Lauder EL F. Freda CEO 78 248.34-249.00 19,293 255.11 23.5

* Half the transactionswere indirect **Twoday transactionp - Pink Sheets

Buying and selling by sectorBased on actual transaction dates in reports received this pastweek

Sector Buying Selling Sector Buying Selling

Basic Industries 240,920 41,175,968 Finance 4,491,414 121,560,068

Business services 181,253 53,514,645 Health care 4,680,379 207,216,547

Capital goods 0 0 Industrial 52,057 108,462,309

Consumer durables 10,105 91,747,939 Media 0 33,786,640

Consumer nondurables 1,863,002 137,065,661 Technology 601,351 243,002,267

Consumer services 80,115 74,306,228 Transportation 9,355 24,523,903

Energy 869,876 778,650 Utilities 0 8,970,934

Sources: ThomsonFinancial; DowJonesMarketData

Friday

EnergyCoal,C.Aplc.,12500Btu,1.2SO2-r,w 51.200Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.650

Metals

Gold, per troy ozEngelhard industrial 1895.00Handy&Harmanbase 1890.90Handy&Harman fabricated 2098.90LBMAGold PriceAM *1868.00LBMAGold Price PM *1874.85Krugerrand,wholesale-e 1963.73Maple Leaf-e 1982.61AmericanEagle-e 1982.61Mexican peso-e 2284.60Austria crown-e 1853.81Austria phil-e 1982.61Silver, troy oz.Engelhard industrial 24.7500Handy&Harmanbase 24.6850Handy&Harman fabricated 30.8560LBMAspot price *£18.4000(U.S.$ equivalent) *24.2150Coins,wholesale $1,000 face-a 18654OthermetalsLBMAPlatinumPrice PM *875.0Platinum,Engelhard industrial 900.0Palladium,Engelhard industrial 2347.0

Friday

Aluminum, LME, $ permetric ton *1904.5Copper,Comex spot 3.1755IronOre, 62%FeCFRChina-s 122.7ShreddedScrap, USMidwest-s,m 287Steel, HRCUSA, FOBMidwestMill-s 719

Fibers andTextilesBurlap,10-oz,40-inchNYyd-n,w 0.6300Cotton,1 1/16 std lw-mdMphs-u 0.6621Cotlook 'A' Index-t *77.35Hides,hvy native steers piece fob-u 34.000Wool,64s,staple,Terr del-u,w n.a.

Grains andFeedsBarley,top-qualityMnpls-u n.a.Bran,wheatmiddlings, KC-u 123Corn,No. 2 yellow,Cent IL-bp,u 3.9950Corn gluten feed,Midwest-u,w 142.7Corn glutenmeal,Midwest-u,w 522.4Cottonseedmeal-u,w 350Hominy feed,Cent IL-u,w 105Meat-bonemeal,50%proMnpls-u,w 275Oats,No.2milling,Mnpls-u 3.0800Rice, LongGrainMilled, No. 2AR-u,w 28.38Sorghum,(Milo)No.2Gulf-u 6.2050SoybeanMeal,Cent IL,rail,ton48%-u 386.10Soybeans,No.1 yllw IL-bp,u 11.2450Wheat,Spring14%-proMnpls-u 6.7975Wheat,No.2 soft red,St.Louis-u 6.1350

Friday

Wheat -Hard - KC (USDA) $ per bu-u 5.6700Wheat,No.1softwhite,Portld,OR-u 6.1500

FoodBeef,carcass equiv. indexchoice 1-3,600-900 lbs.-u 188.53select 1-3,600-900 lbs.-u 171.54Broilers, National compwtd. avg.-u,w 0.7496Butter,AAChicago 1.4000Cheddar cheese,bbl,Chicago 161.00Cheddar cheese,blk,Chicago 191.75Milk,Nonfat dry,Chicago lb. 108.75Coffee,Brazilian,Comp 1.0446Coffee,Colombian, NY 1.5897Eggs,largewhite,Chicago-u 1.0150Flour,hardwinter KC 15.80Hams,17-20 lbs,Mid-US fob-u n.a.Hogs,Iowa-So.Minnesota-u 67.98Pork bellies,12-14 lbMidUS-u n.a.Pork loins,13-19 lbMidUS-u 0.8088Steers,Tex.-Okla. Choice-u 110.91Steers,feeder,Okla. City-u,w 148.63

Fats andOilsCorn oil,crudewet/drymill wtd. avg.-u,w 41.5000Grease,choicewhite,Chicago-h 0.2900Lard,Chicago-u n.a.Soybean oil,crude;Centl IL-u 0.3813Tallow,bleach;Chicago-h 0.3250Tallow,edible,Chicago-u n.a.

KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brookes; 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 11/12

Source: Dow JonesMarket Data

CashPrices Friday, November 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.

| wsj.com/market-data/commodities

Borrowing Benchmarks | wsj.com/market-data/bonds/benchmarks

MoneyRates November 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.

InflationOct. index ChgFrom (%)

level Sept. '20 Oct. '19

U.S. consumer price indexAll items 260.388 0.04 1.2Core 269.328 0.10 1.6

International rates

Week 52-WeekLatest ago High Low

Prime ratesU.S. 3.25 3.25 4.75 3.25Canada 2.45 2.45 3.95 2.45Japan 1.475 1.475 1.475 1.475

PolicyRatesEuro zone 0.00 0.00 0.00 0.00Switzerland 0.00 0.00 0.50 0.00Britain 0.10 0.10 0.75 0.10Australia 0.10 0.10 0.75 0.10

Overnight repurchaseU.S. 0.11 0.11 1.65 -0.07

U.S. government rates

Discount0.25 0.25 2.25 0.25

Federal fundsEffective rate 0.0900 0.0900 1.6200 0.0600High 0.1000 0.1000 1.6500 0.1000

Low 0.0500 0.0500 1.5800 0.0100Bid 0.0800 0.0800 1.6000 0.0100Offer 0.1100 0.1100 1.6300 0.0500

Treasury bill auction4weeks 0.085 0.080 1.620 0.00013weeks 0.100 0.095 1.565 0.00026weeks 0.110 0.110 1.580 0.080

Secondarymarket

FannieMae30-yearmortgage yields

30days 1.898 1.838 3.362 1.75160days 1.933 1.877 3.370 1.804

Other short-term rates

Week 52-WeekLatest ago high low

Callmoney2.00 2.00 3.50 2.00

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 effectiveMarch 16, 2020. Other prime rates aren’t directly comparable; lending practices varywidely by location; Discount rate is effectiveMarch 16, 2020.SecuredOvernight FinancingRate isas ofNovember 12, 2020. DTCCGCFRepo Index is Depository Trust&Clearing Corp.'sweightedaverage for overnight trades in applicable CUSIPs. Value traded is in billions ofU.S. dollars.Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET.Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; FactSet;Tullett Prebon Information, Ltd.

Week —52-WEEK—Latest ago High Low

Commercial paper (AA financial)90days 0.11 0.14 2.53 0.04

LiborOnemonth 0.13638 0.12775 1.80475 0.12663Threemonth 0.22200 0.20588 1.96050 0.20500Sixmonth 0.24600 0.24338 1.92438 0.23375One year 0.33938 0.33338 2.01200 0.32763

Euro LiborOnemonth -0.573 -0.575 -0.360 -0.621Threemonth -0.539 -0.538 -0.142 -0.545Sixmonth -0.512 -0.524 -0.052 -0.526One year -0.456 -0.471 0.008 -0.474

SecuredOvernight FinancingRate0.09 0.11 1.65 0.01

Value 52-WeekLatest Traded High Low

DTCCGCFRepo IndexTreasury 0.112 58.350 1.720 0.002MBS 0.121 28.600 1.763 0.011

Week —52-WEEK—Latest ago High Low

General Equity FundsAdamsDiversified Equity ADX 20.15 17.29 -14.2 13.4BoulderGrowth& Income BIF 13.08 10.62 -18.8 -3.2Central Secs CET 36.59 29.30 -19.9 -2.1CohenStrsCEOppFd FOF NA 11.32 NA -5.6EVTxAdvDivIncm EVT NA 21.59 NA -6.7GabelliDiv&IncTr GDV 23.12 20.15 -12.8 4.0Gabelli Equity Tr GAB 5.47 6.04 +10.4 11.7GeneralAmer GAM NA 34.28 NA -5.0JHancockTaxAdvDiv HTD NA 20.37 NA -18.1LibrtyAllStr Eq USA 6.94 6.36 -8.4 8.1LibrtyAllStr Gr ASG 7.26 7.99 +10.1 46.5RoyceMicro-CapTr RMT 10.42 8.80 -15.5 15.5RoyceValue Trust RVT 16.82 14.50 -13.8 9.2Source Capital SOR NA 38.50 NA 3.6Tri-Continental TY 31.86 27.71 -13.0 7.0SpecializedEquity FundsAberdeenGlb PremProp AWP NA 5.00 NA -13.5AdamsNatural Resources PEO 12.86 10.66 -17.1 -30.7AllianzGIAI &TechOpps AIO 26.13 22.95 -12.2 21.1GIDivInt&PremStr NFJ NA 12.53 NA 7.1

Listed are the 300 largest closed-end funds asmeasured by assets. Closed-end funds sell a limitednumber of shares and invest the proceeds in securities.Unlike open-end funds, closed-ends generally do notbuy their shares back from investors who wish to cashin their holdings. Instead, fund shares trade on a stockexchange. NA signifies that the information is notavailable or not applicable. NS signifies funds not inexistence for the entire period. 12 month yield iscomputed by dividing income dividends paid (duringthe previous 12 months for periods ending at month-end or during the previous 52 weeks for periodsending at any time other than month-end) by thelatest month-end market price adjusted for capitalgains distributions. Depending on the fund category,either 12-month yield or total return is listed.

Source: Lipper

Friday, November 13, 202052wk

Prem TtlFund (SYM) NAV Close /Disc Ret

ASAGold&PrecMet Ltd ASA NA 20.72 NA 71.0BREnhC&I CII 18.27 16.42 -10.1 5.3BlackRock Energy&Res BGR 7.35 6.63 -9.8 -35.6BlackRock EqEnhDiv BDJ 8.86 7.74 -12.6 -10.4BlackRock EnhGlbl Div BOE 11.85 10.27 -13.3 4.5BlackRock Enh Intl Div BGY 6.37 5.60 -12.1 9.7BlackRockHlth Sci Tr II BMEZ 27.57 26.20 -5.0 NSBlackRockHlth Sciences BME 44.12 46.49 +5.4 22.6BlackRockRes&Comm BCX 7.59 6.37 -16.1 -8.9BlackRockSci&TechTr II BSTZ 31.94 29.23 -8.5 54.7BlackRockSci&TechTrust BST 45.01 45.81 +1.8 54.6BlackRockUtl Inf &Pwr BUI 23.10 23.91 +3.5 19.5CBREClrnGlbRlEst IGR 7.80 6.41 -17.8 -10.8ClearBridgeMLP&Midstm CEM NA 14.98 NA -67.7ChnStrInfr UTF NA 26.06 NA 6.1Cohen&SteersQualInc RQI NA 11.72 NA -12.9Cohen&Steers TotRet RFI NA 12.77 NA -8.8CohenStrsREITPrefInc RNP NA 21.36 NA -3.8Columbia Sel PrmTechGr STK 24.23 23.91 -1.3 14.9DNPSelect Income DNP 9.40 10.37 +10.4 -9.7Duff&PhUti&Infra Inc Fd DPG NA 11.70 NA -12.0EtnVncEqtyInc EOI NA 15.25 NA 4.2EtnVncEqtyIncoII EOS NA 19.58 NA 21.0EVRskMnDvsEqInc ETJ NA 10.20 NA 20.1ETnVncTxMgdBuyWrtInc ETB NA 14.38 NA -5.7EtnVncTxMgdBuyWrtOpp ETV NA 14.61 NA 7.9EvTxMnDvsEqInc ETY NA 11.89 NA 6.0EtnVncTxMgdGlbB ETW NA 9.23 NA -0.1EVTxMnGblDvEqInc EXG NA 8.13 NA 3.7First Trust Energy IncG FEN 12.51 10.32 -17.5 -42.0First Tr EnhancedEq FFA 17.50 16.10 -8.0 5.1FirstTrMLPEner&Inc FEI 6.70 5.52 -17.6 -42.0Gabelli Healthcare GRX 13.28 11.18 -15.8 8.9GabUtility GUT 4.12 7.65 +85.7 14.8

52wkPrem Ttl

Fund (SYM) NAV Close /Disc Ret EVSenFlRtTr EFR NA 12.71 NA 7.7EVSnrIncm EVF NA 6.10 NA 6.8FT/Sr FltgRte Inc 2 FCT 12.60 11.02 -12.5 10.4FT/Sr FltgRte 2022TgTr FIV 9.28 8.68 -6.5 3.1Highland Income HFRO NA 8.37 NA 11.7InvDYCrOpp VTA NA 9.76 NA 9.7InvSnrIncTr VVR NA 3.80 NA 7.6NuveenCredit Strat Inc JQC NA 6.05 NA 18.3NuvFloatRateIncFd JFR NA 8.33 NA 8.2NuvFloatRteIncOppty JRO NA 8.24 NA 8.1NuveenSenior Income NSL NA 4.93 NA 8.6PionrFltRate Tr PHD NA 10.41 NA 6.7HighYieldBondFundsAllianceBernGlHiIncm AWF NA 10.71 NA 7.6Angel Oak FS Inc Trm FINS NA 16.95 NA 7.8BaringsGlb SDHYBd BGH 15.78 13.71 -13.1 11.3BRCorporateHY HYT 11.71 11.12 -5.0 8.8BlackRock LtdDur Inc BLW 16.65 15.05 -9.6 8.2BNYMellonHi Yield Str DHF NA 2.85 NA 9.5Brookfield Real Asst Inc RA 19.67 16.89 -14.1 15.0CrSuisHighYld DHY NA 2.24 NA 9.6DoubleLine Inc Sol DSL NA 16.11 NA 12.0DoubleLineYldOpps DLY NA 17.63 NA NSFirst TrHi Inc Lng/Shrt FSD 16.06 14.01 -12.8 9.7First TrustHYOpp:2027 FTHY 20.97 19.95 -4.9 NSIVYHIGH INCOMEOPP IVH NA 12.28 NA 10.4NeubHgYldStrt NHS NA 11.27 NA 10.1NewAmerHi Inc HYB NA 8.35 NA 6.9NexPointStratOppty NHF NA 9.35 NA 16.9NuveenCINov 2021 Tgt JHB NA 9.15 NA 4.6NuveenCrdtOpps 2022TT JCO NA 8.02 NA 7.1NuveenGlobal High Inc JGH NA 14.05 NA 8.3PGIMGlobal HighYield GHY NA 13.47 NA 9.9PGIMHighYield Bond ISD NA 14.13 NA 9.3PioneerHilncmTr PHT NA 8.54 NA 9.6Wells Fargo IncomeOppty EAD NA 7.59 NA 9.7WstAstHIF II HIX NA 6.73 NA 9.0WesternAssetHi IncOpp HIO NA 4.95 NA 7.9WesternAssetHi YldDO HYI NA 14.64 NA 8.0OtherDomestic TaxableBondFundsApollo Tactical Income AIF NA 13.07 NA 8.0AresDynamic CrdtAlloc ARDC NA 13.09 NA 9.8BlackRockMlt-Sctr Inc BIT 18.13 16.34 -9.9 9.4BlackRock TaxMuni Bd BBN 24.78 25.72 +3.8 5.3DoubleLine:Oppor Crdt Fd DBL NA 19.33 NA 7.5Duff&PhUtil Cor DUC 9.54 9.17 -3.9 6.2EVLmtDurIncm EVV NA 11.95 NA 10.2Franklin LtdDur Income FTF NA 8.57 NA 11.4JHan Investors JHI 17.86 16.33 -8.6 8.7KKR IncomeOpportunities KIO NA 13.73 NA 11.3MFSCharter MCR NA 8.49 NA 8.5NuveenTaxableMuni Inc NBB NA 22.04 NA 5.1PIMCOCorp& IncOppty PTY NA 16.84 NA 9.8PIMCOCorp& Inc Strat PCN NA 16.42 NA 9.2PIMCOHilnco PHK NA 5.55 NA 12.7PIMCO IncmStrFd PFL NA 10.54 NA 10.7PIMCO IncmStrFd II PFN NA 9.42 NA 10.6PutnamMas Int PIM NA 4.14 NA 8.8PutnamPrem Inc PPT NA 4.60 NA 9.4Wells FargoMulti-Sector ERC NA 11.40 NA 10.7World IncomeFundsAbrdnAP IncFd FAX NA 4.04 NA 8.6BrndywnGLBGlb IncOppts BWG NA 11.54 NA 7.5EtnVncStDivInc EVG NA 12.38 NA 7.6MSEmMktDomDebt EDD 7.06 5.94 -15.9 8.2PIMCODynCrd&Mrt Inc PCI NA 19.88 NA 13.4PIMCODynamic Income PDI NA 25.45 NA 12.6PIMCO IncomeOpportunity PKO NA 23.66 NA 10.1PIMCOStratg Inc RCS NA 6.40 NA 11.1TempletonEm Inc TEI NA 7.38 NA 8.4TempltnGlbl Inc GIM NA 5.22 NA 4.8WstAstEmergDebt EMD NA 13.31 NA 9.9WesternAssetGl CrDOp GDO NA 17.30 NA 7.3NationalMuni BondFundsAllBerNatlMunInc AFB 15.04 13.81 -8.2 4.3BlckRk InvQMun BKN 16.29 16.67 +2.3 4.6BlackRockMuni 2030Tgt BTT 26.27 25.18 -4.1 3.0BlackRockMuni BFK 14.26 14.39 +0.9 4.7BlackRockMuni II BLE 14.71 15.16 +3.1 4.9BlckRkMuni IncQly BYM 15.52 14.35 -7.5 4.1BRMuniAssets Fd MUA 14.03 13.85 -1.3 4.6BRMuniEnhanced MEN 12.16 11.65 -4.2 4.4BRMuniHoldingsQly MFL 14.69 13.66 -7.0 4.1BRMHQly 2 MUE 13.96 12.88 -7.7 4.4BRMuniHoldngs MHD 16.74 15.65 -6.5 4.8BRMuniVest Fd MVF 9.60 8.92 -7.1 4.6BRMuniVest 2 MVT 15.06 14.49 -3.8 4.8BRMuniYield Fd MYD 14.71 13.69 -6.9 5.0BRMuniYieldQlty MQY 16.19 16.29 +0.6 4.2BRMuniYldQlty2 MQT 14.22 13.31 -6.4 4.3BRMuniYldQly 3 MYI 14.85 13.77 -7.3 4.0BNYMellonMuni Bd Infra DMB NA 13.70 NA 4.8BNYMellonStrMuni Bond DSM NA 7.53 NA 5.0BNYMellonStratMuni LEO NA 8.36 NA 5.1DWSMuni Inc KTF 12.54 11.19 -10.8 4.3

Prem12MoFund (SYM) NAV Close /Disc Yld

General Equity FundsSpecializedEquity FundsCIMRA&CA NA NA NA NSCIMRA&CC NA NA NA NSCIMRA&C I NA NA NA NSCIMRA&CL NA NA NA NSSharesPost 100;A 33.74 NA NA 15.7SharesPost 100:I 33.99 NA NA 16.0SharesPost 100:L 33.52 NA NA 15.5USQCoreReal Estate:I 24.76 NA NA 0.0USQCoreReal Estate:IS 24.77 NA NA 0.1Versus CapMMgrRE Inc:I 26.89 NA NA NEVersus Capital Real Asst 24.91 NA NA 0.5WildermuthEndwmnt:A 13.33 NA NA -2.9WildermuthEndwmnt:C 12.84 NA NA -3.7WildermuthEndowment:I 13.40 NA NA -3.2Income&PreferredStockFundsCalamos L/SEqty andDI CPZ NA 16.40 NA NSDestraMulti-Altrntv;A 11.83 NA NA -7.8DestraMulti-Altrntv;C 11.32 NA NA -8.5DestraMulti-Altrntv;I 12.07 NA NA -7.5DestraMulti-Altrntv;T 11.48 NA NA -8.3Flat RockOpportunity 17.75 NA NA 3.7VariantAltrntv Inc:Inst 26.51 NA NA 6.2VariantAltrntv Inc:Inv 26.52 NA NA 6.0Convertible Sec's. FundsCalmosDynConv and Inc CCD NA 25.98 NA NA

52wkPrem Ttl

Fund (SYM) NAV Close /Disc Ret

EVMuniBd EIM NA 13.16 NA 4.3EVMuniIncm EVN NA 13.09 NA 4.4EVNatMuniOpp EOT NA 20.67 NA 3.9InvAdvMuIncTrII VKI 11.90 10.99 -7.6 4.9InvescoMuniOp OIA 7.48 7.34 -1.9 5.3InvescoMuOppTr VMO 13.31 12.38 -7.0 4.8InvescoMuTr VKQ 13.33 12.41 -6.9 4.9InvescoQual Inc IQI 13.50 12.47 -7.6 4.8InvTrInvGrMu VGM 13.75 12.70 -7.6 4.9InvescoValMunInc IIM 16.41 15.11 -7.9 4.7MAINSTAY:MKDEFTRMUNOP MMD NA 21.23 NA 4.8NeubrgrBrm NBH 14.90 14.87 -0.2 5.3NuveenAMT-FrMuVal NUW NA 16.24 NA 2.9NuveenAMT-FrQltyMun I NEA NA 14.61 NA 4.6NuveenAMT-FrMuCI NVG NA 15.97 NA 5.0NuveenDynMuniOpp NDMO NA NA NA NSNuveenEnhMuni Val NEV NA 15.58 NA 4.8Nuveen IntDurMunTerm NID NA 13.48 NA 3.8NuveenMuCrdtOpps NMCO NA 12.22 NA 6.2NuvMuni Credit Income NZF NA 15.27 NA 5.1NuvMuniHiIncOpp NMZ NA 13.45 NA 5.5NuveenMuni Val NUV NA 10.96 NA 3.4NuveenQualityMuni Inc NAD NA 14.68 NA 4.6NuveenSel TF NXP NA 16.65 NA 3.2NuveenSel TF 2 NXQ NA 15.18 NA 3.3NuveenSel TF 3 NXR NA 16.51 NA 3.1PIMCOMuniInc PMF NA 13.54 NA 5.1PIMCOMuniIncII PML NA 13.79 NA 5.4PimcoMuni III PMX NA 11.54 NA 5.0PioneerHilncAdv MAV NA 11.33 NA 4.4PioneerMunHiIcmT MHI NA 12.00 NA 4.7PutnamMgd Inc PMM NA 7.86 NA 5.0PutnamMuniOpp PMO NA 13.32 NA 4.9RiverNorthMgdDurMun I RMM NA 17.37 NA 6.1WesternAssetMgdMuni MMU NA 12.56 NA 4.4WestnAsstMuDefOppTr MTT NA 20.26 NA 3.3Single StateMuni BondBlackRock CAMun BFZ 15.65 13.48 -13.9 3.5BRMHCAQly Fd Inc MUC 15.72 14.50 -7.8 4.0BRMHNJQly MUJ 15.67 13.90 -11.3 4.9BRMHNYQly MHN 14.85 13.65 -8.1 4.3BRMuniYld CA MYC 16.00 14.08 -12.0 3.7BRMuniYld CAQly MCA 15.88 14.64 -7.8 4.0BRMuniYldMIQly MIY 15.63 14.14 -9.5 4.4BRMuniYldNJ MYJ 15.77 13.91 -11.8 5.4BRMuniYldNYQly MYN 14.26 13.00 -8.8 4.2EVCAMuniBd EVM NA 11.57 NA 4.1EatonVanceNYMuni Bd ENX NA 11.98 NA 4.2InvCaValMuIncTr VCV 13.48 12.35 -8.4 4.3InvPAValMuIncTr VPV 13.99 12.11 -13.4 4.8InvTrInvGrNYMu VTN 14.06 12.39 -11.9 4.6NuveenCAAMT-FQualMI NKX NA 15.20 NA 4.1NuveenCAVal NCA NA 10.25 NA 3.1NuveenCAQtyMuInc NAC NA 14.75 NA 4.3NuveenMDQualMuni Inc NMY NA 13.71 NA 4.2NuveenMIQualMuni Inc NUM NA 14.24 NA 3.9NuvNJQualMuni Inc NXJ NA 13.80 NA 4.7NuveenNYAMT/FrQualMI NRK NA 13.02 NA 4.3NuveenNYQualMuni Inc NAN NA 13.45 NA 4.5NuveenOHQualMuni Inc NUO NA 15.35 NA 3.5NuveenPAQualMuni Inc NQP NA 13.66 NA 4.6NuveenVAQltyMun Inc NPV NA 15.31 NA 3.6PIMCOCA PCQ NA 17.37 NA 4.6PIMCOCAMuniII PCK NA 9.02 NA 4.3PimcoCAMuni III PZC NA 10.21 NA 4.6

Prem12MoFund (SYM) NAV Close /Disc Yld

GAMCOGlGold&NatRes GGN 3.95 3.47 -12.2 -6.2JHanFinl Opptys BTO NA 25.95 NA -18.2NuvDow30DynOverwrite DIAX NA 14.35 NA -13.9NuvCorEqAlpha JCE NA 13.28 NA -1.8NuveenNasdaq 100DynOv QQQX NA 24.61 NA 10.9NuvReal Est JRS NA 8.18 NA -16.3NuveenRl Asst Inc&Gro JRI NA 12.56 NA -22.3NuvS&P500DynOvFd SPXX NA 14.10 NA -4.8NuvSP500BuyIncFd BXMX NA 11.91 NA -6.4ReavesUtilityIncome UTG 33.55 34.33 +2.3 -0.2Tortoise Enrgy Infra Crp TYG NA 17.37 NA -74.1Income&PreferredStockFundsCalamosStratTot CSQ NA 14.36 NA 18.8CohenStrsLtdDurPref&Inc LDP NA 24.65 NA 2.5CohenStrsSelPref&Income PSF NA 26.16 NA -5.5FirstTrIntDurPref&Inc FPF NA 22.36 NA 0.4JHanPrefInc HPI NA 18.88 NA -8.7JHPrefIncII HPF NA 18.16 NA -9.2HnckJPfdInco III HPS NA 16.52 NA -6.2JHanPrm PDT NA 13.71 NA -10.4LMPCapInco SCD NA 10.81 NA -14.0NuveenPref & IncOpp JPC NA 8.86 NA -5.7NuveenFd JPS NA 9.18 NA -2.0NuveenPref & Inc Term JPI NA 23.03 NA 0.0NuveenTxAdvDivGr JTD NA 13.39 NA -16.1TCWStrat Income TSI NA 5.64 NA 4.8Convertible Sec's. FundsAdvntCnvrtbl&IncFd AVK NA 14.76 NA 8.4GI Conv& Inc NCV NA 4.97 NA -1.1AGI Conv& Inc II NCZ NA 4.40 NA -1.2AGIDvs Inc&Conv ACV NA 28.16 NA 25.0AGI Eqty&Conv Inc NIE NA 26.69 NA 27.5CalamosConvHi CHY NA 12.67 NA 23.4CalmosConvOp CHI NA 11.95 NA 22.4WorldEquity FundsAberdeenEmgMkts Eq Inc AEF 8.57 7.27 -15.2 5.0AberdeenTotDynDiv AOD NA 8.31 NA 5.2CalamosGloDynInc CHW NA 8.82 NA 17.9China CHN NA 29.05 NA 51.1EVTxAdvGlbDivInc ETG NA 16.50 NA 4.0EtnVncTxAdvOpp ETO NA 23.23 NA -4.0FirstTrDynEuro Eq Inc FDEU NA 10.94 NA -19.0GabelliMultimedia GGT 7.24 7.12 -1.7 -0.2HighlandGlobal Alloc HGLB NA 5.36 NA -28.8India Fund IFN 20.90 17.78 -14.9 -2.4JapanSmaller Cap JOF 10.29 8.98 -12.7 4.8LazardGlbTotRetInc LGI 18.76 16.40 -12.6 15.2MSChinaShrFd CAF 27.14 22.89 -15.7 9.7MS India IIF 22.74 18.60 -18.2 -2.9NewGermany GF 20.71 17.87 -13.7 25.4TempletonDragon TDF NA 24.38 NA 50.2TempletonEmMkt EMF NA 16.75 NA 16.4Wells FargoGl DivOppty EOD NA 4.57 NA -5.6

U.S.MortgageBondFundsBlckRk Income BKT 6.27 6.08 -3.0 6.7InvescoHI 2023Tgt Term IHIT NA 8.04 NA 7.6InvestmentGradeBondFundsBlRck CoreBond BHK 16.26 15.82 -2.7 5.2BRCredit Alloc Inc BTZ 15.41 14.35 -6.9 7.2Insight Select Income INSI 22.01 20.70 -6.0 3.9InvescoBond VBF 21.49 19.97 -7.1 3.8JHan Income JHS 16.23 15.72 -3.2 4.8MFS Intmdt MIN NA 3.81 NA 9.1WesternAsset Inf-Lk Inc WIA NA 12.72 NA 3.1WesternAsset Inf-LkO&I WIW NA 11.66 NA 3.5WestnAsst IGDefOppTr IGI NA 21.00 NA 4.0LoanParticipationFundsApollo Senior Floating AFT NA 13.27 NA 7.7BRDebt Strategy DSU 11.42 9.97 -12.7 8.9BRF/R Inc Str FRA 13.67 11.87 -13.2 8.3BlackRock FloatngRt Inc BGT 13.26 11.64 -12.2 8.2Blackstone /GSOStrat BGB 13.99 12.21 -12.7 10.1Blackstone/GSOSr Flt Rt BSL 15.59 13.87 -11.0 8.8Eagle Point Credit ECC NA 8.28 NA 19.5EtnVncFltRteInc EFT NA 13.11 NA 7.4

52wkPrem Ttl

Fund (SYM) NAV Close /Disc Ret

Prem12MoFund (SYM) NAV Close /Disc Yld

WorldEquity FundsBMOLGMFrontME;I 6.51 NA NA -19.6CalamosGlbTotRet CGO NA 13.08 NA NAPrimark Priv Eq Inv:III NA NA NA NSVirtusTotalRetFd ZTR NA 8.10 NA NA

LoanParticipationFunds1WSCredit Income NA NA NA 6.2AlphCntrc PrimeMerid In 9.97 NA NA NSAngel OakStr Crdt:Inst NA NA NA 8.0AxonicAlternative Inc NA NA NA 3.6Blackstone/GSOFREID 23.25 NA NA 5.9Blackstone/GSOFREI I 23.22 NA NA 6.2Blackstone/GSOFREI T 23.18 NA NA 5.7Blackstone/GSOFREI T-I 23.75 NA NA 5.7Blackstone/GSOFREIU 24.20 NA NA NSBlstn CommntyDev 10.10 NA NA 3.4BNYMAlcntr GlbMSCr Fd NA NA NA 7.4CLIFFWATERCLFD;I NA NA NA 4.4CNRStrategic Credit 9.87 NA NA 8.3FedProj&TrFinanceTendr 9.97 NA NA 2.8FSGlobal CrdtOpptysD NA NA NA 7.2SchrdrsOpp Inc;A NA NA NA NSSchrdrsOpp Inc;A2 NA NA NA NSSchrdrsOpp Inc;I NA NA NA NSSchrdrsOpp Inc;SDR NA NA NA NSInvescoSr LoanA NA NA NA 4.7InvescoSr LoanC NA NA NA 3.9InvescoSr Loan IB NA NA NA 4.9InvescoSr Loan IC NA NA NA 4.8InvescoSr LoanY NA NA NA 4.9Pioneer Sec Inc NA NA NA NSHighYieldBondFundsGriffin InstAccess Cd:A NA NA NA 6.4Griffin InstAccess Cd:C NA NA NA 6.4Griffin InstAccess Cd:F NA NA NA 6.4Griffin InstAccess Cd:I NA NA NA 6.4Griffin InstAccess Cd:L NA NA NA 6.4PIMCOFlexible Cr I;A-2 NA NA NA 10.3PIMCOFlexible Cr I;A-4 NA NA NA 10.5PIMCOFlexible Cr I;Inst NA NA NA 11.4PionrILSBridge NA NA NA 0.0WAMiddleMktDbt NA NA NA 7.9WAMiddleMkt Inc NA NA NA 9.0OtherDomestic TaxableBondFundsAmBeaconApollo TR:T 10.28 NA NA 1.7AmBeaconApollo TR:Y 10.32 NA NA 2.7AmBeaconSPEnh Inc:T 9.46 NA NA NSAmBeaconSPEnh Inc:Y 9.52 NA NA 3.8BRCredit Strat;A 10.23 NA NA NSBRCredit Strat;Inst 10.23 NA NA 5.3BlackRockMlt-SctrOppty 84.34 NA NA 9.1BlackRockMlt-SecOpp II 87.58 NA NA 8.8Carlyle Tact Pvt Cred:A NA NA NA 7.7Carlyle Tact Pvt Cred:I NA NA NA 8.5Carlyle Tact Pvt Cred:L NA NA NA 8.1Carlyle Tact Pvt Cred:M NA NA NA NSCarlyle Tact Pvt Cred:N NA NA NA 8.6Carlyle Tact Pvt Cred:Y NA NA NA 8.3CIONAresDvsfd Crdt;A NA NA NA 5.8CIONAresDvsfd Crdt;C NA NA NA 5.8CIONAresDvsfd Crdt;I NA NA NA 5.8CIONAresDvsfd Crdt;L NA NA NA 5.8CIONAresDvsfd Crdt;U NA NA NA 5.8CIONAresDvsfd Crdt:U2 NA NA NA NSCIONAresDvsfd Crdt;W NA NA NA 5.8CNRSelect Strategies 11.55 NA NA 0.0GLBeyond Income 0.76 NA NA NEKKRCREDITOPPTY;D NA NA NA NSKKRCREDITOPPTY;I NA NA NA NSKKRCREDITOPPTY;T NA NA NA NSKKRCREDITOPPTY;U NA NA NA NSLordAbbett CredOpps Fd 9.79 NA NA 7.6LordAbbett CredOpps Fd 9.80 NA NA 8.3LordAbbett CrdOp:U 9.80 NA NA NSPalmer SquareOpp Inc NA NA NA 6.3Resource Credit Inc:A NA NA NA 8.4Resource Credit Inc:C NA NA NA 7.7Resource Credit Inc:I NA NA NA 8.7Resource Credit Inc:L NA NA NA 8.2Resource Credit Inc:W NA NA NA 8.5Thrivent Church Ln&Inc:S NA NA NA 2.7World IncomeFundsDestra Int&Evt-DvnCrd:A NA NA NA 4.8Destra Int&Evt-DvnCrd:I NA NA NA 5.1Destra Int&Evt-DvnCrd:L NA NA NA 4.6Destra Int&Evt-DvnCrd:T NA NA NA 4.4NationalMuni BondFundsPIMCOFlexMun Inc;A-3 NA NA NA 2.2PIMCOFlexMun Inc:A1 NA NA NA NSPIMCOFlexMun Inc;A2 NA NA NA NSPIMCOFlexMun Inc;Inst NA NA NA 2.9Tortoise Tax-AdvSoc Inf 9.49 NA NA 5.0

52wkPrem Ttl

Fund (SYM) NAV Close /Disc Ret

Prem12MoFund (SYM) NAV Close /Disc Yld

CLOSED‑END FUNDS

IPOScorecardPerformance of IPOs,most-recent listed first

%ChgFrom %ChgFromCompany SYMBOL Friday3s Offer 1st-day Company SYMBOL Friday3s Offer 1st-dayIPOdate/Offer price close ($) price close IPOdate/Offer price close ($) price close

HealthAssuranceAcquisition 10.20 2.0 ... EdocAcquisition 10.04 0.4 –0.6HAACUNov. 13/$10.00 ADOCUNov. 10/$10.00

BetterWorldAcquisition 10.00 ... ... TS InnovationAcquisitions 9.99 –0.1 –0.1BWACUNov. 13/$10.00 TSIAUNov. 10/$10.00

dMYTechnology III 10.06 0.6 ... RomanDBDR Acquisition 9.98 –0.2 –0.1DMYI.UTNov. 13/$10.00 DBDRUNov. 6/$10.00

Natural OrderAcquisition 10.19 1.9 0.8 SQZBiotechnologies 24.00 50.0 81.1NOACUNov. 11/$10.00 SQZOct. 30/$16.00

NorthernStarAcquisition 9.95 –0.5 0.4 NewBeginningsAcquisition 10.05 0.5 0.6STIC.UTNov. 11/$10.00 NBA.UTOct. 30/$10.00

Sources: DowJonesMarketData; FactSet

Other StockOfferingsSecondaries and follow-ons expected thisweek in theU.S.marketNone expected thisweek

LockupExpirationsBelow, companieswhose officers and other insiderswill becomeeligibleto sell shares in their newly public companies for the first time. Suchsales canmove the stock’s price.

Lockup Offer Offer amt Through Lockupexpiration Issue date Issuer Symbol price($) ($mil.) Friday (%) provision

Nov. 17 May21, ’20 SelectQuote SLQT 20.00 450.0 –1.5 180 days

Nov. 18 May22, ’20 InariMedical NARI 19.00 128.3 287.3 180 days

Sources: Dealogic; DowJonesMarketData

New to the Market

P2JW321000-0-B00900-1--------XA

B10 | Monday, November 16, 2020 THEWALL STREET JOURNAL.

HEARD ONTHESTREET

FINANCIAL ANALYSIS & COMMENTARY

Virus Adds to Oil-Sector FearCovid-19 makes foreign policy the industry’s first Biden worry

Cash-like assets of Japaneseregional banks

Source: Bank of JapanNote: ¥105.1 = $1

¥60

0

10

20

30

40

50

trillion

2000 ’10 ’201990

Cash negotiablecertificates ofdeposit checks and bills

Due from the centralbank and othercommercial banks

Oil produced onDepartment of the Interior-managedleases as a share of total U.S. production

Source: Department of the Interior, Energy Information Administration*Fiscal year ended Sept. 30, 2019

35

0

5

10

15

20

25

30

%

FY2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19*

America’s energy industry hadbeen bracing for a potential shiftaway from the fossil-fuel-friendlyTrump administration since lastyear. Then the Covid-19 pandemichit and President-elect Joe Biden’spotential actions affecting domes-tic oil-and-gas production seem tohave lost their teeth in the nearterm. At the same time, his for-eign-policy moves look more sig-nificant.

The extent to which Mr. Bidencan push his clean-energy agendawill only become clear in Januaryonce the two pivotal Senate seatsin Georgia are filled, but there areexecutive orders he can pursuewithout Congress on his side. Mr.Biden has said he wouldn’t banfracking outright, but he has calledfor ending its use on federally con-trolled lands.

A ban on new federal permitsdoes have some potential for dam-age, though not any time soon.New drilling isn’t a priority for en-ergy companies with prices anddemand still depressed.

“It’s a very different discussion

today than a year ago, when theU.S. was growing oil productionone to two million barrels per daya year,” notes Scott Hanold, ana-lyst at RBC Capital Markets. Evenif West Texas Intermediate oilprices were sustained at $60 abarrel—they are around $40 to-day—annual oil production wouldbe likely to grow somewherearound 300,000 barrels a day, “afar cry from the one to two millionbarrels per day you saw in 2018and 2019,” he noted.

Instead, a more pressing near-term threat could stem from for-eign policy. Mr. Biden favors re-turning to the 2015 Iran nucleardeal—a move that could bring themajor oil producer sanctions relief.According to a research note fromRBC, the White House has author-ity to issue enforcement waiverson sanctions without Congress if itcertifies that Iran is meeting itsnuclear-deal obligations.

A move to sanctions relief couldbring as much as a million barrelsa day of supply, or about 1% ofglobal production, back to the

market in the second half of 2021,RBC notes. A research note fromMorgan Stanley figures that num-ber could be as much as two mil-lion barrels a day, though likelynot all at once. There are manymoving parts in the global oil mar-ket, but such a big addition to sup-ply would harm private energycompanies across the board.

Domestic policy could havemore of an impact in the longterm. Federally controlled areasaccount for roughly one-quarter ofall U.S. oil production. In placessuch as New Mexico, land owner-ship looks much like a checker-board, with federal lands sittingadjacent to state and private acre-age, notes Scot Anderson, partnerat Hogan Lovells. That will make ita headache for producers with aheavy presence in those states tofigure out permits, especially be-cause most drilling today occurshorizontally. Moreover, royaltyrates, the percentage of oil reve-nue that an energy company mustshare with the underlying land-owner, are cheaper for federal

lands than for state- and private-owned acreage.

Companies with higher expo-sure to federal lands, such as EOGResources and Occidental Petro-leum, have experienced steeperdrops in their share prices relativeto peers since before the electionwhen a Biden victory began tolook likely. In some cases, the com-panies have used the downturn tohedge their exposure through con-solidation: Devon Energy’s an-nounced merger with WPX En-ergy, for example, reduces itsexposure to federal lands. And if

the U.S.-focused producers face in-crementally higher costs becauseof new regulations, companieswith heavy international expo-sure—for example, supermajorssuch as Exxon Mobil and Chev-ron—could find themselves in amarginally better position.

Mr. Biden’s clean-energy-fo-cused agenda does have potentialto shift the fortunes of energycompanies—especially if he hasCongress on his side. However, theeffects might only show once thecloud of the pandemic lifts.

—Jinjoo Lee

The World Should Watch Japan’s Efforts to Save Struggling Banksstrophically low even a few yearsago.

A marginal shift in interestrates on accounts held with thecentral bank might not sound likemuch, but Moody’s Investors Ser-vice rightly notes that given re-gional banks had an average re-turn on assets of just 0.14% in thelast fiscal year, an extra 0.1 per-centage point return on large cashbalances is nothing to sniff at.

It isn’t the only measure Japanis taking. Later this month, a newlaw exempting regional banks fromnormal antitrust considerationscomes into force. A merger be-tween Kyushu-based EighteenthBank and Shinwa Bank was heldup for years by regulators beforefinally beginning operations lastmonth.

selves in regional lenders aroundthe world.

European policy makers shouldbe paying particularly close atten-tion, given their similar desire toconsolidate the banking sector.

Banking policy can’t be ex-pected to solve a problem that isfundamentally macroeconomic:Japan’s sluggish nominal growthhas required the low interest ratesthat have hollowed out lenders’bottom lines. But it can amelioratethe situation significantly.

Breaking down barriers tomergers and offering additional fi-nancial incentives to pursue themwon’t fix what ails the sector, butit may well encourage more activ-ity, something other countriesmight want to make a note of.

—Mike Bird

If paying so much attention tosmall lenders worth little in finan-cial markets seems unusual, it’sworth remembering that without ahealthy financial system, it’s farmore difficult to implement mone-tary policy: Banks in distress maynot respond to interest-rate sig-nals in predictable ways.

Smaller lenders elsewhere don’tall face the same constraints.Some in the U.S., for example,have serious exposure to the trou-bled energy sector.

But any institution that relieson interest income is going to besqueezed continually if rates re-main low for an extended period,as bond market prices clearly ex-pect them to.

With less fee income, similar is-sues are likely to present them-

Japan is trying to encouragemergers among its ailing regionalbanks by introducing a sweetenerfor those that cut costs. Other ad-vanced economies should pay at-tention: Rock-bottom interest ratesmean Japan’s present is likely tobe their future.

The Bank of Japan is offeringcommercial lenders an extra 0.1percentage point in interest ontheir deposits with the centralbank if they reduce their overheadratio by certain benchmarks, ormerge or integrate their busi-nesses.

After 30 years of falling andeven negative interest rates, manyof Japan’s regional lenders haveshare prices of 0.2 to 0.3 timestheir book value—levels thatwould have been considered cata-

Shares of small companiesare posting outsize gains,driven by investors’ bets thata rebounding economy and ex-pected Biden administrationpolicies will boost profits atsmaller U.S. companies.

The Russell 2000 index ofsmall-company stocks rose6.1% last week, hitting its firstrecord close since 2018 andextending a recent race aheadof other major indexes. It fin-ished the first two weeks ofNovember up 13%, its best 10-session start to a month on re-cord, according to Dow JonesMarket Data. The broader S&P500 gained roughly 9.6% inthat period.

That marks a reversal fromearlier in the year, when shut-downs hammered shares ofsmall-cap companies, whichtend to have fewer businesslines and a greater reliance onthe domestic economy thanlarger, diversified peers. TheRussell 2000 lagged behindthe market rebound and hasnow gained roughly 4.5% in2020, according to FactSetdata, compared with 32% forthe Nasdaq Composite and 11%for the S&P 500.

Shares of giants includingApple Inc. and Amazon.comInc. drove much of thatbounce from March’s lows,lifted by bets those companieswould benefit from consumersstaying home in greater num-bers. While Amazon, with its$1.6 trillion market value, isthe biggest stock in the S&P500’s consumer-discretionarysector, Penn National GamingInc., a roughly $10 billion op-erator of racetracks and casi-nos in 19 states, was the Rus-sell 2000’s largest consumer-discretionary company as ofOct. 31.

Hopes for a Covid-19 vac-cine, however, have upendedthat trade in recent sessions,sparking a recovery in sectors

gest gainer since Election Dayis Five Prime TherapeuticsInc., which has climbed morethan 300% after releasing re-sults last week of a Phase 2study of its potential gastric-cancer therapy.

One looming factor thatcould slow the rally: mountingCovid-19 cases. While theprospect of a vaccine hasbrightened the long-term out-look, the pandemic’s U.S. re-surgence could prompt newlockdowns and other measuresthat could disproportionatelyhurt profits at small-cap com-panies.

“You had a narrow marketwith a struggling economy,”Mr. Gannon said. “That idea ofthe economy broadening outand the earnings story is thereal key.”

MARKETS

such as energy, travel and en-tertainment. In the two ses-sions after Pfizer Inc. andpartner BioNTech SE an-nounced significant progresson a vaccine for Covid-19, theRussell 2000 beat the tech-heavy Nasdaq Composite by8.52 percentage points—thegreatest margin since at least1986, according to Dow JonesMarket Data.

Small-cap stocks were al-ready outperforming theirlarger peers, fueled by betsthat a Biden administrationwould push for more govern-ment spending to boost therecovery. With the voting past,some investors said they arewatching for signs of mount-ing growth to support thegains in small stocks, whichcan climb ahead of their largerpeers when investors are opti-mistic but also tend to postbig declines when the mooddarkens.

“No matter the outcome ofthe election, it’s the sustain-ability of the recovery that’smore important to the small-cap space,” said Francis Gan-non, the co-chief investmentofficer at asset manager RoyceInvestment Partners, which fo-cuses on small-cap companies.

One big winner is auto-parts maker Cooper-StandardHoldings Inc., which hasjumped 70% since surprisinganalysts with an upbeat earn-ings report Nov. 6. Earlier inthe year, the pandemic shut-downs offered investors a rea-son to avoid the stock, saidBenchmark analyst MichaelWard. “Now they have an ex-cuse to buy it.”

Other big gainers since theelection include thermostat-maker Resideo TechnologiesInc., up 68%; freelancing plat-form Upwork Inc., up 62%;biotech Denali Therapeutics,up 60%; and Caesars Enter-tainment Inc., up 24%.

Some have surged for eso-teric reasons. The index’s big-

BY PAUL VIGNA

EconomicHopes Fuel Big Gains at Small Stocks

Nov. 2 Nov. 11

-20

0

20

40

60

80%ResideoTechnologies

Upwork

Denali Therapeutics

Caesars Entertainment

PennNational Gaming

Russell 2000S&P 500Nasdaq Composite

Small caps have been outperforming their large-cap peers recently.

Share-price and index performance since ElectionDay

Source: FactSet

Penn National Gaming was the Russell 2000’s largest consumer-discretionary company as of Oct. 31.

ETHANMILLE

R/GET

TYIM

AGES

P2JW321000-0-B01000-1--------XA

Small tales

Another LookMaybe yourparents weren’tas bad as yourstories makethem seem. R12

Relationships

Leaving work canput a lot of strainon a couple, but itdoesn’t have to. Itjust takes somepreparation. R8

InsideSafety Squeeze

Decent yields withlow risk are gettingharder to find. Hereare some ideas forsqueezing income outof that nest egg. R2

HistoryLessonA retiree who re-searched her familytree shows how tonail down facts andnot waste time. R6

ating so much uncertainty about financing retire-ment that most people who can continue to workwill—and for as long as possible, says LauraCarstensen, director of Stanford University’s Centeron Longevity.“It’s going to make people rethink retirement al-

together,” she says.Other developments will be welcome. For in-

stance, more people will age at home, where mostadults say they want to remain. There will be aboom in innovations improving life in later years.And with Covid giving us a reason to reflect onmortality, we will plan how we want to live and diemore deliberately.Lessons learned from the virus may even help us

combat ageism. Surveys and studies indicate thatolder adults are coping emotionally better thanyounger generations, says Prof. Carstensen, which

may help us “recognize the resilience and strengthof older adults.”Here are 10 ways in which leaders in aging-re-

lated fields expect the pandemic to reshape ourlater years.

More will age at homeWith about 40% of Covid-related deaths in the U.S.occurring in long-term-care facilities, the diseasehas exposed “how shockingly inadequate our careinfrastructure and systems are” and “how essentialaccess to home care is,” says Ai-jen Poo, an advo-cate for caregivers.That recognition should have two different but ben-

eficial effects: fewer but better nursing homes, andPleaseturntopageR4

ROBE

RTNEU

BECK

ER

As the pandemic wreakshavoc on our mental andphysical health, it is alsoquietly reshaping howAmericans will face retire-ment and old age in theyears to come.The virus is bringing

sweeping change, mainlyby “accelerating develop-ments already under way,”says physician and entre-preneur Bill Thomas. For

example, “isolation of older people has long been aproblem, but Covid is focusing attention on the is-sue and adding urgency” to address it.Some changes in store will be stressful. Rising

government deficits and falling bond yields are cre-

JOURNAL REPORT

ENCOREHow Covid-19Will ChangeAging andRetirementAmong other things, expect more agingin place and a wave of innovation

BY ANNE TERGESEN

© 2020 Dow Jones & Company. All Rights Reserved. THEWALL STREET JOURNAL. Monday, November 16, 2020 | R1

P2JW321000-0-R00100-1--------XA

R2 | Monday, November 16, 2020 THEWALL STREET JOURNAL.

meanwhile, retirees need to bestrategic about stocks or fundsthey own for dividends, says Mr.Mies of 6 Meridian.Be wary of dividends with high-

single-digit yields, he cautions.Dividend yields move inversely tostock prices, and a lofty one maysuggest investors expect the pay-out to be trimmed.Before buying a stock, eyeball

the financial reports. “Generally,there are signs in financial state-ments when a company is strug-gling to pay dividends,” Mr. Miessays. The dividend-payout ratio—the percentage of its earnings acompany pays out in dividends—isone key metric. Above 50% couldbe a sign of trouble.

FROM

TOP:

STEFANIR

EYNOLD

S/BL

OOMBE

RGNEW

S;MAT

THEW

SHAPIRO

Yields on 10-yearTreasurys

Sources: Ryan ALM; Tradeweb ICE Closes

6

0

1

2

3

4

5

%

2006 ’08 ’10 ’12 ’14 ’16 ’18 ’20

The Fed haskept monetarypolicy loose

and rates low.

JOURNAL REPORT | ENCORE

Managing a nest egg seldom hasbeen more complicated.Although returns on safer as-

sets have been paltry for sometime, they plunged to new lowsthis year as the Federal Re-serve aggressively loosened its

monetary policy to underpin the economy.“The challenge facing anyone in retirement is

just being able to generate stable, safe income,”says Andrew Mies, chief investment officer atWichita-based advisory firm 6 Meridian.Market professionals believe the picture will im-

prove once the nation gets Covid-19 under control.For now, it may make sense to hold less in

bonds and rely more on appreciation in stocksand dividend income to get the returns an inves-tor needs. Here are some other takeaways on howthe investment landscape has shifted and sugges-tions on how to navigate it:

Keep cash to a minimumEveryone needs cash. But high-yielding bank ac-counts now pay less than the 1.2% annualized U.S.inflation rate. And bank rates won’t rise soon, be-cause Fed policies are crimping bank margins,says Bill Lanzon, chief investment officer at FirstAmerican Bank, near Chicago.Anthony Saglimbene, global market strategist

at Ameriprise Financial Services, suggests someretirees use a three-bucket strategy.The first bucket should contain enough cash

and short-term bonds to cover projected spend-

ing needs for the next one to threeyears. With returns on such in-vestments so low, some adviserssay this allocation ideally shouldrepresent no more than 15% of theoverall portfolio—although the ex-act proportion must be tailored toan investor’s circumstances.Bucket No. 2 is primarily for as-

sets that produce income. The in-terest and dividend payments canbe funneled into the first bucket tohelp maintain the level of fundsthere. An investor with a moderaterisk appetite might keep aroundhalf of the assets in this bucket inbonds and the remainder in a mixof stocks, alternatives and cash,says Mr. Saglimbene.The third bucket comprises

mostly equities, which are impor-tant to own, even for people intheir 60s and 70s. While the exactequities allocation would dependon an investor’s risk preferences,Mr. Saglimbene recommends about60% stocks for a moderate ap-proach. To raise additional cashfor spending needs and keep thebucket in balance, periodically trimany stockholdings that have appre-ciated a lot more than others.

Watch dividends closelyAs the economy tanked this year,dozens of companies slashed divi-dends to preserve capital—andthat eroded payouts from divi-dend-focused funds. The payoutseventually may be restored, but

BYMICHAEL A. POLLOCK

Retirees Search for More IncomeReturns on safer assets haveplunged. What’s a person to do toearn more money?

Use stock appreciation tosupplement incomeWhen investors think about get-ting income from stocks, dividendscome to mind. But another strat-egy advisers use is “total return,”which involves tapping the appre-ciation in some of the securities aninvestor owns to supplement in-come from other sources.To implement a total-return

strategy, calculate how much ofanticipated spending needs al-ready are being met by other regu-lar income sources, which couldinclude Social Security. An inves-tor then would sell some securitiesfrom time to time, using the pro-ceeds to make up any shortfall.Raising cash through such

sales should go hand-in-handwith rebalancing a portfolio, saysKathy Carey, head of research atBaird Private Wealth Manage-ment. Periodic pruning of stocksthat have ballooned in value canreduce the likelihood that an in-vestor’s equity allocation gets outof balance, she adds.

Keep bonds shortBond income can provide a way tobuffer a portfolio from equityrisk. But for now, bonds pose a di-lemma, notes Ed Perks, a seniormanager at Franklin TempletonInvestments. Although yields haverisen a little recently, they remainnear historic lows. And if theeconomy rebounds significantly ina year or two—as Mr. Perks be-lieves is possible—yields could re-bound also.In such a scenario, bond prices,

which move in the opposite direc-tion to yields, would drop, causingbonds to lose principal value, atleast on paper. Mr. Perks urges in-vestors to be careful of stretchingtoo far out on the maturity spec-trum. Mr. Perks says bond manag-ers at Franklin currently are“much more comfortable” withmaturities of two to six yearsthan with longer maturities.James DiChiaro, a senior fund

manager at the Insight Invest-ment unit of BNY Mellon Invest-ment Management, says broadlydiversified, intermediate-maturitybond funds offer the best risk-re-turn mix. Among such funds ratedhighly by Morningstar Inc. is Fi-delity Total Bond Fund (FTBFX),with an expense ratio of 0.45%.iShares Core Total USD BondMarket (IUSB) owns thousands ofindividual securities and chargesonly 0.06% in expenses.

Mr. Pollock is a writer inPennsylvania. Email:reports@wsj.com.

Dozens of companiesslashed dividends this year.

Second Acts

The Difference Between a Doctor and a Florist? Less Than YouMay Think.

Susan Garetz• Age: 62

• Hometown: Ann Arbor, Mich.

• Primary Career: Otolaryngologist,University of Michigan Medical Center

• Current Path: Floral arranger

• Why This Path: “Now more than everI feel like we all could benefit froma little extra beauty in our lives.”

Susan Garetz, a retired ear, nose andthroat specialist, says she became a flo-rist after retiring for the same reason shebecame a doctor: “I wanted to make peo-ple happy,” she says. “Who doesn’t love toget flowers?”Dr. Garetz, age 62, spent 24 years as

an otolaryngologist at the University ofMichigan Medical Center in Ann Arbor.She says she wasn’t completely sorry toretire in 2016. While she loved her joband colleagues, the increasing pressure tosee more patients and fill out more re-cords on the computer led her to quitclinical medicine, she says.Flower arranging became a hobby even

before Dr. Garetz retired. She joined a gar-den club in 2011 and in 2015 enrolled in aclass that taught Japanese flower arrang-ing. After retiring, she accompanied herhusband, a professor at the University of

Michigan, on a sabbatical, first in London,where she took a two-week course about aflowers, then Sydney, where she had an in-ternship in a flower shop.That internship quickly taught her how

little she knew. “It would be a mess andlook horrible, but they were super patientwith me,” she says. The experience alsoled her to realize the kindness of florists.One of the things she enjoyed most

during this period, she says, was discover-

ing how engrossing the world of flowerarranging could be. “I was totally in themoment,” she says.A year after returning to Ann Arbor,

she contacted a small flower shop wherea friend knew the owner. The ownerasked her to help out with the Valen-tine’s Day rush back in 2019, and she washired that April.Though the owner offered to pay Dr. Ga-

retz, she prefers to work without pay, seeing

it as another learning opportunity. It alsoleaves her free to travel if she wants to.Her favorite flowers are peonies and ra-

nunculus, both of which “go through a lotof stages and are beautiful in all the dif-ferent stages,” she says.Her spirits have been constantly lifted,

she says, by hearing the stories of whycustomers buy flowers—the man whoused to come in every day to buy oneflower for his wife, or the students whobought flowers for a roommate sufferingfrom a breakup.“I felt I could be part of bringing that joy

to people, and I just love that,” says Dr. Ga-retz, who adds that flower arranging pres-ents an opportunity to “bring unadulteratedjoy into people’s lives with no side effects.”The flower shop closed to foot traffic for

several months due to Covid-19, but hassince reopened. Dr. Garetz has not workedat the store since last winter but now helpsfill some orders at a secondary location.While she was away, she says, she felt

the absence of flowers profoundly.“It’s like when you’re away from your

spouse and something’s missing,” shesays. “That’s how I feel about the flowers.I dream about them.”

Second Acts looks at the varied pathspeople are taking in their 50s and beyond.You can reach Ms. Halpert, a writer inMichigan, and let us know how you’restarting over, at reports@wsj.com.

Susan Garetz loves to hear people’s stories about why they are buying flowers.

BY JULIEHALPERT

P2JW321000-0-R00200-1--------XA

THEWALL STREET JOURNAL. Monday, November 16, 2020 | R3

SWITCH FROM RETIREMENT SAVINGTO RETIREMENT LIVING.

To learnmore, visit Fidelity.com/StartLiving or call us at 800.343.3548to talk about your retirement income needs today.

Investing involves risk, including risk of loss.Fidelity Brokerage Services LLC,Member NYSE, SIPC. © 2020 FMR LLC. All rights reserved. 943637.2.0

FIDELITYCANHELPMAKERETIREMENT INCOME

PLANNINGCLEAR.

Fidelity can help you create aclear and straightforward retirementincomeplan formanaging your life—andmoney—for the years ahead.

! Themoney you’ve saved! Themoney you expect, like Social Security! Investments that have the potential to grow

All so you’ll have a better idea of howmuchyou canwithdraw everymonth.

P2JW321000-0-R00300-1--------XA

R4 | Monday, November 16, 2020 THEWALL STREET JOURNAL.

died tomorrow?“Covid essentially poses the same

questions,” says Mr. Kinder.The virus has enhanced the feeling

“that life is short, which is ordinarilysomething we are aware of occasion-ally, but this is a collective moment” ofreckoning that “the clock is ticking,”says Ellen Goodman, co-founder of thenonprofit Conversation Project, whichis dedicated to encouraging conversa-tions about end-of-life wishes.“What matters is finding meaning

and doing what really matters tous,” she says, whether that is to begood to people or study classical mu-sic or make the world better throughcommitment to a cause.

We willplan for death

End-of-life-care planning is somethingmany put off, says Kate DeBartolo, di-rector of the Conversation Project.But thanks to Covid, she says, “it feelsmore pressing, even for younger peo-ple,” who are using the website ingreater numbers.Traffic and downloads of end-of-

life planning material have surgedthis year, she says.As difficult as it is to plan for

death, experts say it is crucial thatpeople prepare. It can improve notonly how we live our last days, buthow our loved ones deal with ourdeaths.Dr. Emanuel predicts that the ex-

perience of living amid lockdownsmay cause more people to think aboutend-of-life care. Some undoubtedlywill choose not to receive medicaltreatment that helps extend life butthat also often negatively affects thequality of those extra days, especiallyif they can’t spend time with theirfamily, he says.

We needto save moreto retire

While stocks for now continue to per-form well, lower bond yields causedby the pandemic might make itharder to make ends meet on a fixedincome.For years, retirees have relied on

the so-called 4% rule, which says youcan withdraw 4% from your savings inthe first year of retirement, and thengive yourself an annual raise to ac-count for inflation, without running abig risk of running out of money.For someone with a $1 million port-

folio, that formula produced an initialincome of $40,000 and—assuming in-flation of 2%—an increase to $40,800in year two.But today’s low bond yields mean

future returns are expected to belower than in the past, says DavidBlanchett, head of retirement researchat Morningstar Inc. Mr. Blanchett sayshis safe-spending recommendation isnow between 3% and 3.5%. That meansthat someone who wants to safelywithdraw $40,000 in the first year ofretirement needs to save closer to $1.2million than $1 million.

health problems, including diabetes,heart conditions and obesity, are alsosignificant risk factors, says Dr. Cohen.Such conditions can be caused by

factors beyond our control, includinggenes. But diet and exercise also oftenplay a role.The pandemic is helping raise

awareness of the concept of “biologicalage,” or the internal pace of aging,says Dr. Cohen. “Age is the No. 1 cause

of risk for mortality from Covid, butit’s not chronological age, it’s biologi-cal age,” he says.As wearable devices become more

prevalent, more of us will track mea-sures of underlying health, includingblood pressure and glucose levels.Medicine may eventually assign pa-tients a biological age to help themmake better-informed decisions, Dr.Cohen says.

We will have abetter handle onwhat we want to dowith our time

Working from home can provide asense for “what retirement might looklike,” says Dr. Cohen. “Some are saying‘No thanks, I want to continue towork,’ ” he says. Others, including Dr.Cohen himself, are exploring hobbies.Many retirees are frustrated that the

virus is interrupting plans to travel andsee grandchildren. But the break fromroutine has also freed up time to assessplans, values and the kind of legacieswe want to leave, says George Kinder,founder of the Kinder Institute of LifePlanning. As a result, he says more ofhis clients—and the clients of financialadvisers who train with him—are re-evaluating what’s important in theirlives and changing their plans.To prompt clients to clarify their

goals, Mr. Kinder asks three ques-tions: What would you do if you hadall the time and money in the world?How would you live if you knew youhad only five to 10 years left? Andwhat would you most regret if you

JOURNAL REPORT | ENCORE

more resources to help people age at home.As the government raises regulatory

standards on nursing homes, industrywatchers are saying 30% or more could filefor bankruptcy, according to Sarah Slocum,co-director of the Program to Improve El-dercare at Altarum, a nonprofit health-careconsulting group.“You will see a lot more focus on aging

at home and figuring out how to shift thefinancial incentives to make that work”says Ezekiel Emanuel, vice provost ofglobal initiatives at the University of Penn-sylvania. (After Dr. Emanuel was inter-viewed for this article, he was appointed toPresident-elect Joe Biden’s task force oncoronavirus.)Community-based programs will expand,

including the Program of All-Inclusive Carefor the Elderly, a Medicare-sponsored ser-vice that is currently helping 50,000 peoplewith such needs as medical services, daycare, home care and transportation. Theprogram costs Medicare and Medicaid anaverage of about $7,000 per person amonth, versus $9,000 per person for nurs-ing homes, according to Altarum.Pinchas Cohen, dean of the Leonard Da-

vis School of Gerontology at the Universityof Southern California, predicts that fed-eral or state governments will expand pro-grams, including one under Medicaid, thatpay some family caregivers, typically anadult child. Generally, the amount depends

on an assessment of the elderly individ-ual’s needs, as well as the average wage fora home care aide in the state and geo-graphic region in which one lives.Ms. Poo says that the pandemic has

shone a light on the inadequacy of the aver-age $17,000 annual income of home healthaides, many of whom are working “withouthealth care, hazard pay or child care.”The trend toward more aging at home

will also favor smaller elder-care arrange-ments like the nonprofit Green House Proj-ect, which was started by Dr. Thomas andpromotes senior living in small, homelikecooperative settings. Some 300 such homesin dozens of states house up to 12 resi-dents and typically feature open floor

ContinuedfrompageR1

plans, large dining-room tables, fire-places and porches. Data gathered bythe University of North Carolinaand the Green House Projectshow 94% or more of thehomes certified to pro-vide skilled nursing careremained virus-freethrough Aug. 31.A movement away

from nursing homesmight prompt Ameri-cans to also rethinkother forms of age-seg-regated housing, in-cluding 55-plus com-munities, predicts MarcFreedman, president ofEncore.org, a nonprofitworking to bridge gen-erational divides.Age segregation “has

not prepared us well forliving longer lives,” saysMr. Freedman. With relativelylittle day-to-day contact betweenyounger generations and elders, “eachlife stage we move into we are utterlyunprepared for.”Age segregation, he says, encour-

ages a view that an aging populationis “a problem to be solved” ratherthan “a repository of social, intellec-tual and community capital.”

Olderpeople willbenefitfrom atechnology boom

The pandemic, and the aging of thepopulation, is contributing to a wave

of innovation aimed atolder adults.Specifically, the

country’s experienceof quarantining hasspurred entrepreneursto think about whatolder people will needto age at home, saysKaty Fike, a gerontolo-gist and partner inGenerator Ventures, aventure-capital firmfocused on aging.The most dramatic

change under way isthe growth in tele-medicine, facilitatedin part by Medicare’sdecision since Marchto expand reimburse-ment to doctors forvirtual visits.Wearable devices

and diagnostic testsfor home use will pro-vide doctors with keyinformation, including

patients’ blood pressure and weight,and pave the way for better remotepatient monitoring, says Dr. Fike.Laurie Orlov, a consultant who

specializes in technology for olderadults, says Amazon’s forthcomingCare Hub, free in the Alexa app, usesvoice technology to notify an emer-gency contact if a user asks for help.Other innovations will take aim at

isolation. Already, Discover.Live Inc.provides seniors and others with vir-tual travel led by guides on livestream. Eldera Inc. and Table Wis-dom pair older adults with, respec-tively, children needing homeworkhelp and foreign-born studentswanting to practice English. Silver-nest Inc. matches older homeownerswith roommates who pay rent.

We will embracehealthier lifestyles

The older you are, the greater yourstatistical odds are of dying fromthe coronavirus. But underlying

HowCovid-19

Will AffectRetirementAnd Aging

CutOffNursing home residents reported dramatic swings in types and frequency ofvisitation as a result of the pandemic in an online survey conducted thissummer.

Before Coronavirus restrictionswereimposed, howmany times aweek didyou have outside visitors (e.g. familyor friends)?

After Coronavirus restrictionswereimposed, howmany times aweek doyou nowhave visitors?

Three ormore times Twice Once Never

Source: Altarum online survey conducted early July to August 2020. There were 365 respondents from 36 states.*E.g. to visit family, attend religious services, go shopping, eat at restaurants etc.

56%

18%

16%

10%5%

7%

16%

72%

P2JW321000-0-R00400-1--------XA

THEWALL STREET JOURNAL. Monday, November 16, 2020 | R5

JOURNAL REPORT | ENCORE

ROBE

RTNEU

BECK

ER

hours and the gig economy expand-ing, it’s easier for many older peopleto remain employed, says Jack Rowe,a professor of public health at Colum-bia University.Of course, not everyone has the

ability to work into their 70s or beyond.Some are in poor health, have jobs theycan no longer perform or are victims ofage discrimination.“As a society, we will have to provide

ways for people who cannot work to re-ceive support,” says Prof. Carstensen.

Our views onaging will change

Coronavirus has, at least in the short term,reinforced ageist stereotypes, including thenotion that older people are frail andshould be “segregated and isolated,” saysDr. Thomas.The virus and the economic downturn

are also inflaming intergenerational con-flict.Some “younger people see older people

as the reason they have to sacrifice,” says

Prof. Carstensen. At the same time, Ms.Goodman notes, “younger people are beingblamed for being irresponsible” with re-gard to social distancing.Still, Prof. Carstensen says the pandemic

has also unleashed countervailing trendsthat may ultimately change our views ofaging for the better.It helped fuel the election of Joe Biden,

who, at 77, is poised to become the oldestpresident in U.S. history, a developmentthat contradicts the notion that olderadults are weak or frail.Adding to that view are surveys and

studies that show what many are noticingin their own lives: that older adults arepsychologically more resilient in the face ofthe disease than younger people are, saysProf. Carstensen.As with past crises, including Sept. 11,

psychologists are finding that peopleacross generations are focusing on whatmatters most to them, including relation-ships, she says.Amid Covid, Ms. Goodman says, “there

are some signs of a deeper understandingof how we need each other.”

Ms. Tergesen is a reporter for The WallStreet Journal in New York. She can bereached at anne.tergesen@wsj.com.

In a Pandemic,The Advantage

Of AgeBY CAROLHYMOWITZ

The 401(k) willmorph into amultipurpose account

The economic crisis has shown that formany people, the priority should be tobuild an emergency fund before puttingmoney into a 401(k), where savings canbe hard to access before retirement.David John, a senior policy adviser

at AARP, says employers are alreadystarting to use a new kind of flexiblesavings account that lets workers fun-nel salary deferrals to more than onegoal, including emergencies and retire-ment. Other future uses could includehealth-care and college expenses. Mr.John predicts that once the accountsbecome popular the government willapply the current tax advantage for re-tirement savings to them.

Lifespans will decline

With so many people dying of Covid,virus-related deaths are projected toreduce the aggregate life expectancy ofAmericans age 65 today by nearly ayear, according to researchers atPrinceton University and the Universityof Southern California.But Covid-related lockdowns also are

likely to reduce the life expectancies ofthose who avoid or survive the virus,says Philip Pizzo, former dean of Stan-ford University’s medical school andthe founding director of Stanford’s Dis-tinguished Careers Institute, a programfor midcareer professionals transition-ing to new acts.In addition to the long-term physical

damage some Covid survivors suffer, thepandemic is undermining our ability toengage in activities associated with bet-ter health and longer lives, including so-cializing, exercising and helping others.“These variables are important at allstages of life and particularly for thosein midlife and older,” says Dr. Pizzo.Studies indicate that loneliness may

be linked to a greater risk of death,cognitive decline, depression andheart disease.According to a survey of 365 nurs-

ing-home residents conducted by Al-tarum this summer, only 5% reportedhaving visitors three or more times aweek, versus 56% before the pandemic,and 76% said they felt lonelier.Technology can help overcome some

of these problems. But online platformslike Zoom are far from a perfect substi-tute for the human contact we need,says Dr. Pizzo.“We are social beings, and we need

human contact,” he says.

We willwork longer

Since the 1990s, thepercentage ofpeople 55 and olderin the labor force hasrisen steadily, to 40%in 2019 from 29% in1993, according to theU.S. Bureau of LaborStatistics.With bond yields

low, stock values highand Social Security inprecarious shape, thetrend will accelerate.“There’s so much

uncertainty about thefuture…most peopleare going to continueto work as long asthey can,” says Prof.Carstensen.With companies

embracing remotework and flexible

25–3415–245–141–4Under 1 yr. 35–44 45–54 55–64 65–74 75–84 85+

AGE GROUPS

Deaths involving COVID-19 as a percentage of all deaths in theU.S. by age

Source: Centers for Disease Control and PreventionNote: From Feb. 1 to Oct.31, 2020

10

0

2

4

6

8

%

At the start of the Covid-19 pan-demic, being over 65 felt like a curse.Public-health doctors warned that any-body of that age faced a higher riskthan younger people of suffering seri-ous complications or dying if they con-tracted the virus. Then came thehashtag #boomerremover and angrytweets from some millennials blamingbaby boomers for disrupting their livesand livelihoods.As a boomer, I faced both the fear

and the opprobrium. My daughter cau-tioned me to stay in my apartmentwith my husband and retreat almostentirely from the outside world.We’ve pretty much done that. I’ve

remained vigilant even as lockdownshave lifted. I’ve met a handful offriends outdoors—just one at a time,masked and at a safe distance. I’m stillrelying on deliveries of groceries, and Ihaven’t returned to my gym, eaten at arestaurant indoors or taken publictransportation as most middle-agedand young people I know are doing.Yet after more than seven months

of constraints, I’ve realized there alsoare advantages to being older duringthis time of Covid. Because I’m retiredfrom full-time employment, I haven’tworried about how I’d cope if I was laidoff, or protect myself from contagion ifI worked in a crowded factory or gro-cery store. I haven’t felt stressed andexhausted juggling Zoom work meet-ings from my bedroom while supervis-ing remote learning for kids who aren’tback to school full time. And unlike col-

lege students, I haven’t had to choosebetween taking all my courses onlineor taking a gap year.My husband and I have only our-

selves to look after, and we know howfortunate we are to have sufficientsavings to live comfortably, especiallynow when so many don’t have enough.But it’s more than good fortune that

keeps us less stressed than those ofyounger generations that we know.We’ve lived through difficult times be-fore, including illnesses that requiredhospitalizations, the deaths of our par-ents and close friends, job losses, andtumultuous political and financialevents. We recall these times, and wetell ourselves we’ll get through thepandemic, too.“People have better emotional experi-

ences and manage their emotions bet-ter as they get older, and that’s continu-ing now even in a time of prolongedstress,” says Laura Carstensen, a psy-chology professor at Stanford Universityand founding director of Stanford Cen-ter on Longevity. “Study after studyshows that as we age and our futuretime horizons grow shorter, we savorthe good times in life and have moreperspective about the bad times.”In a study of 945 men and women

ages 18 to 76 conducted in April at theinitial height of the pandemic in theU.S., Dr. Carstensen and researchers inher lab found that despite “grave risksto physical health, uncertainties aboutcontagion and restricted social con-tacts,” older adults had less frequentand less intense periods of anxiety, an-ger, stress, boredom and other negativeemotions than younger people.

This doesn’t mean older people denytheir difficult emotions. In fact, theyare more likely than younger people toexperience mixed feelings, such as sad-ness and happiness at the same time,and to be more accepting of sadness,which may be helping them weatherthe pandemic, says Dr. Carstensen.I’ve certainly felt frightened about

the possibility of having to be intu-bated on a ventilator because ofCovid-19, especially this spring when Iawoke every day to the sound of am-bulance sirens. I felt sad when Icouldn’t visit with my daughter, sistersand other relatives, and when friendsin my New York neighborhood vacatedtheir apartments for second homes inless crowded rural areas.Yet overall, I’ve been more content

and calmer than I would have pre-dicted. Instead of dwelling on what Ican’t do, I focus on what I can enjoy. Irelish the long, daily walks I take in apark that I’ve lived half a block awayfrom for 15 years, yet never before ex-plored so much. My walks spurred meto spend several weeks this summerand fall in western Massachusetts,where my husband and I hiked trailsand marveled at the foliage changingcolors with the seasons.I not only cook dinner every night,

but cooking has become more fun as Iconstantly try new recipes. I’ve finallymastered flourless chocolate cake,roasted vegetables and a dozen newfish and chicken dishes. I’ve also over-come my tech-phobic tendencies andlearned to use Zoom, Crowdcast, An-chor and other apps so I can join webi-nars, continue to mentor a high-schoolstudent and create podcasts.Before the pandemic, my husband

and I were busy with work and volun-teer activities that kept us apart sev-eral hours each day. We also spent alot of time as a couple socializing withothers. Now it’s just the two of us allthe time—in a 1,000-square-foot apart-

ment. Have we gotten on each other’snerves and argued? Of course. We’vehad to negotiate and renegotiate sepa-rate space to work and exercise.But with fewer distractions, we’ve

also talked more about how we wantto spend our time together after thepandemic. We’ve gotten closer andmore patient with one another aswe’ve observed each other’s daily rou-tines and moods.I’ve spoken with others my age who,

like me, welcome the chance to slowdown, cherish what we have and re-connect with the most important peo-ple in our lives. And we’re more accus-tomed to being less on the go thanmillennials or Gen Xers.“I like eating dinner out at restau-

rants and going to the theater, but notconstantly, so being home most of thetime is comfortable—and not very dif-ferent than what I’m used to,” saysJoan Goldsmith, a psychoanalyst inNew York who is now working virtuallywith patients.Dr. Carstensen says there is another

reason seniors have been resilient dur-ing the pandemic.“As people recognize they won’t live

forever, they are more attuned to what’sgood in life in the present,” she says.I’m not ready to concede that I notice

happy faces more than sad ones, or thatI focus on smiles more than frowns. Butone thing is for sure: Instead of seeingmy age as a liability, I’ve come to appre-ciate it as an asset. I couldn’t ask for abetter gift at the moment.

Ms. Hymowitz is a writer in New York.Email: reports@wsj.com.

*Represents people's predicted score if all that is known about them is their age.Note: There was an online sample of 974 adult participants ranging in age of 18-76 years-old. Frequency of emotions was ratedon a scale of 0 (never) to 4 (all or nearly all the time); intensity was rated from 0 (not at all [emotion]) to 4 (extremely[emotion]). Ratings were averaged across positive and negative emotions separately. Data from all participants were collectedApril 23-24, 2020.Source: Laura L. Carstensen, Yochai Z. Shavit, and Jessica T. Barnes Department of Psychology, Stanford University

Gauging Emotional StrengthDuring CovidResults from a study early in the pandemic suggest there are emotional advantagesthat increase aswe age, even in times of crisis. The study showsmore positiveemotions overall, and negative emotions of less intensity, for older respondentscomparedwith those younger.

= Emotional experience rating = Predicted value by age*

2.5

2

1.5

1

0.5

0Age: 20 40 60

2.5

2

1.5

1

0.5

0Age: 20 40 60 20 40 60

Positiveemotions

Negativeemotions

Frequency

Intensity

20 40 60

P2JW321000-0-R00500-1--------XA

R6 | Monday, November 16, 2020 THEWALL STREET JOURNAL.

JOURNAL REPORT | ENCORE

My father accumulatedfuneral cards like somepeople collect baseballcards. He wasn’t mor-bid—quite the opposite:He loved the conversa-tions when family and

friends gathered in the parlor for finalgoodbyes.The front of the card displayed a reli-

gious image or prayer. The back had thename of the deceased and some details—often age, date of death and burial loca-tion. Dad sometimes paper-clipped themto newspaper death notices. He threwthem into a file, and when we cleanedout his stuff some 30 years ago, I tossedthem into a “someday” box—as in “Some-day I will get around to sorting these outand learn about our family history.”Last year, a few months into retire-

ment, someday arrived. I opened his col-lection and realized I had a small trea-sure trove of people who meantsomething to our family. Thank you, Dad.As a former newspaper editor who

spent years searching for and confirmingfacts, I figured digging into my own past,building family trees and finding the sto-ries behind the names on those treeswould be fairly easy. Instead, I found itto be a minefield, both in terms of wast-ing a ridiculous amount of time and get-ting things wrong.It was worth the missteps and the

frustrations. In part, that’s because Iwant to make sure my grandchildrenknow their American chapter began insteerage, rather than in the middle-classcomfort they were born into. We arewhere we are because of the grit, desireand luck of the people who came beforeus. But I also want to make sure mygrandchildren and their descendantshave empathy for the future immigrantswho will make their own start in steer-age. We were “others” once as well.For now, though, the least I can do is

guide those who want to dive into thepast what I’ve learned on my journey.These lessons may make their path a biteasier—and a bit less prone to regretta-ble wrong turns and detours.

Decide what is importantWhen I started last year, I had a plan. Iwould read, sort and scan boxes of docu-ments and photos, update the informationon the genealogy software on my per-sonal computer and join the pay site An-cestry.com to see what else is out there.Months later, I had made little progress

on the boxes and, worse, now had a newpile of names to sort through and dealwith from Ancestry and Newspaper.comclippings. I’d fallen headlong into the en-tertaining time trap of adding online linksto names and connecting to other trees.Clearly, this could go on forever.I stopped and gave myself a two-year

deadline and two goals. First, I would pre-

Our familychangedits namefromPodkowa toPodkowin-ski to Podd.When andwhy?

Top, Wladys-law’s widowand childrencirca 1925; mydad, Edward, inroughly 1917;funeral cards;and Polishchurch records.

Genealogical projects can befrustrating and full of wrongturns. Here are some ways tomake them less so.

serve and share the most importantdocuments and photos so theyweren’t lost with me. Second, Iwould limit my research to directancestry lines starting with ourfour sets of grandparents, deter-mining: where their original home-towns were, and in what countries;why the immigrants left; and whathappened to them and their chil-dren when they got to the U.S.It seems so obvious now: Once

you focus on a smaller number ofnames, and know what you’relooking for, you have a task youcan get your arms around. You cansee the beginning, middle and end.

Go deepFace it: Putting names and dateson a family tree just isn’t that in-teresting. How many of my grand-children are going to care about abunch of names? Even I don’t carethat much.But dig deeper, and the stories

can be gripping. A search of news-papers, for instance, revealed great-grandmother Mary Heffron ofScranton, Pa., described as a “poorwasherwoman” who lost everythingin an 1885 house fire. She foughtthe insurance company in Pennsyl-vania Supreme Court and won.Then there were the newspaper

accounts that told of how mygrandfather Wladyslaw died whenhe was splashed by molten slag in asteel-plant blast. His daughter, mymother, was born four months later.

Use multiple sourcesHere’s another lesson I learnedfrom my years as an editor: Don’tjust rely on one source. You won’thave the full story if you do. Youmay not have much of a story at all.My father changed his last

name to Podd from Podkowinski.His father had changed his name

BY ANN PODD

by it. Resourceful Stella solved herproblem in America. By the 1930census, she miraculously aged back-ward and was three years youngerthan her spouse. Good for her, butbad for family genealogists who onlyrely on census information.We confirmed my grandmother’s

age with her marriage records andcopies of her birth certificate. (Mul-tiple sources, remember?).If you really can’t prove a piece

of information, just flag it as uncon-firmed. The next family sleuth canperhaps take it on.

Make use of local expertsLocal history or genealogy centershave paid or volunteer researcherswho can find so much more, quicklyand who understand the quirks ofthe data and the history of the area.I found them by googling “gene-

alogy society” and the name of thetown. The research fees are reason-able, from $25 to $125. In research-ing our Irish miners in Scranton,the Northeast Pennsylvania Genea-logical Society found baptism re-cords and translated the Latin.

Enjoy the SearchYes, it can be frustrating and an-noying at times. But overall, thisproject has been energizing, en-grossing and entertaining. I’ve re-connected with some relatives and

chatted with others for the firsttime. I discovered surprising storiesthat my kids are actually interestedin. The pandemic canceled our vaca-tion to Ireland this summer, but wehave a great family-centered itiner-ary for next (fingers crossed) year.And probably most important—

especially these days—it’s actuallyfun.

Ms. Podd is a former Wall StreetJournal deputy managing editor.Email: reports@wsj.com. A

UTH

OR’SFA

MILYPH

OTO

SANDRE

SEARC

H

to Podkowinski from Podkowa.When and why the changes?The accepted story in my family

was that my grandfather’s namewas changed by immigration offi-cials at Ellis Island when he ar-rived in the U.S. in 1912. But familyinterviews, rediscovered letters,censuses, court records and bookson Polish genealogy uncovered thetruth: My grandfather added onthe “ski” sometime after he ar-rived because he was imitating astyle used by Polish nobility, re-flecting his ambition for a betterlife. It was a quick upgrade fromPodkowa, which translates to“horseshoe.” That was so muchmore interesting than the widelyheld myth that Ellis Island officialschanged names.My father’s change came for a

darker reason. His supervisor atthe Red Cross during World War IIsuggested the change becausesome people were unable to grasphis name and, worse, some didn’twant to deal with a person with aname like Podkowinski.

Beware of untrue ‘facts’The enormous amount of bad in-formation linked to Ancestry.comfamily trees was a shock. It’s notAncestry’s data that’s the problem.It’s the users who take guessesand link to existing trees to builda mini family empire. Or who link

accurate documents to the wrongperson (No, that’s not your JohnMurray.) And then others copy theerror. Over and over again.Even if you carefully link the

right person to the correct censusinformation, the information maystill be wrong. People forget infor-mation, especially dates, or haveother reasons for giving inaccurateinformation.My grandmother Stella was four

years older than her husband, andshe was always a bit embarrassed

My Family Tree—AndHow I Found the Stories Behind theNames

P2JW321000-0-R00600-1--------XA

THEWALL STREET JOURNAL. Monday, November 16, 2020 | R7

JOURNAL REPORT | ENCORE

Most people stress cardio as they age.Don’t forget strength training.

Ask Encore • Glenn Ruffenach

What Older People May BeMissing in Their Workouts

MART

INTO

GNOLA

My wife and I retired last year. Since March,we have been walking almost daily as a wayto fight cabin fever. Any ideas about expandingfitness routines at home?

Add some strength training.When it comes to fitness, most people focus on aerobic

or “cardio” workouts. Such activities—bicycling, swimming,jogging—clearly are important. But equally important, espe-cially for the 60-plus crowd, is some form of strength or“resistance” training.As we age, “loss of muscle strength and power leads to

declining activity, increased frailty and functional depen-dence,” according to the American College of Sports Medi-cine. “On the positive side, resistance training has provedto be a safe, economical and beneficial addition to theolder adult’s fitness regimen.”How much training? The Centers for Disease Control and

Prevention recommends that adults age 65 and older partic-ipate in activities at least two days a week that “strengthenmuscles,” along with a minimum of 150 minutes a week of“moderate intensity activity, such as brisk walking.”

Strength training, at the outset,doesn’t mean “pumping iron” or buy-ing a pricey home gym. Sure, youmight end up bench-pressing yourbody weight. To start, though, liftingsomething as simple as bottled wateror soup cans, according to the Na-tional Institute on Aging, can giveyou the exercise you need.To learn more about strength and

resistance training, begin with a CDCpublication, “Growing Stronger:Strength Training for Older Adults.”(Go to cdc.gov and search for: Grow-ing Stronger.) Also visit the Exerciseand Physical Activity page on the Na-tional Institute on Aging’s website.(Go to nia.nih.gov/health/exercise-physical-activity.)A good book is “Weights for 50+”

by Karl Knopf. Also check out “Exer-cise & Physical Activity: Your Every-day Guide” from the National Insti-tute on Aging (order.nia.nih.gov).

My husband and I are thinkingabout changing our prescrip-

tion-drug coverage during Medi-care’s open-enrollment period.Can we choose different plans?

Yes, different plans are fine.Medicare’s open-enrollment pe-

riod runs each year from Oct. 15through Dec. 7. During this time,beneficiaries can switch fairly easily,and without penalty, from onehealth plan to another—say, fromoriginal Medicare to a Medicare Ad-vantage plan (and vice versa), orfrom one prescription-drug plan to acompeting prescription-drug plan.During your working years, you

and your spouse, in all likelihood,were covered by a single insuranceplan. But that isn’t the case withMedicare; you and your husband can,and should, pick a plan—including aprescription-drug plan (Medicare PartD)—that best meets your particularneeds. For instance, if you requiremedication for heart disease, youmight benefit from using a Part Dplan (one, say, with lower premiumsfor your specific drug) that differsfrom your husband’s plan.If you need help selecting a Part D

plan, start with the Medicare PlanFinder. (Go to medicare.gov and clickon: Preview 2021 Health & DrugPlans.) Also try “SHIP,” your StateHealth Insurance Assistance Program.SHIPs operate in all 50 states and of-fer free counseling and assistance toMedicare-eligible individuals, theirfamilies and caregivers. (Go to ship-tacenter.org.)And speaking of Medicare…here’s a

new book: “Medicare Entry Guide” byNeil Brown, a road map for enrollingin, and making sense of, a compli-cated program. Mr. Brown, a Medi-care insurance consultant, starts hisbook on the cover. Based on your ageand situation (example: “I’m 64 and Imight postpone Medicare”), he di-rects you to the appropriate page in-side and walks you through theMedicare maze.A smart approach and well worth

your time.

Mr. Ruffenach is a former reporterand editor for The Wall StreetJournal. His column examinesfinancial issues for those thinkingabout, planning and living theirretirement. Send questions andcomments to askencore@wsj.com.

Percentage of adultswhomet thefederal physical activity guidelines*for both aerobic andmuscle-strengthening activities in 2018

Source: National Center for Health Statistics, “2018National Health Interview Survey”

*At least 150 minutes a week of moderate-intensityaerobic physical activity and two or more days a week ofmuscle-strengthening activities.

25-64

AGESMen

Women

65-74

75+

27.3%

18.3

13.3

21.1

14.7

7.9

©2020 MFS Investment Management 41613.2

CAN YOUR FIXED INCOME STAND THE TEST OF TIME?

Markets change, but the role fixed income plays shouldn’t. It should aim to provide the essentials ofincome, diversification and risk management for your clients. That’s why, for more than 50 years,MFS has held an unwavering belief in our traditional approach. We call it Essential Fixed Income®.

See why we focus on rigorously researched credit atmfs.com/fixedincome

EssentialFixed Income®

P2JW321000-0-R00700-1--------XA

R8 | Monday, November 16, 2020 THEWALL STREET JOURNAL.

had been married for many yearsbelieved her spouse didn’t like herany longer. When we checked thevalidity of her concerns with herpartner, she burst into tears tohear him say that she was one ofthe most caring and generouspeople he knew.The problem was that until re-

tirement, her needs to feel valuedand respected were likely beingmet at work. When she retired,she needed her husband to fillthat hole. But her husband had noidea. He assumed she trusted thathe valued and respected her, andthat it was why he married her inthe first place. So his respect wasleft unspoken. Essentially, herview was that they had failed tolaunch, and his view was that

they had already arrived at theirretirement dreams and were done.By assuming that they knew eachother well enough to not have tore-evaluate their needs before re-tirement, they ended up feelingunhappy and disconnected.We recommend that couples

not assume that what onceworked for them will work whenthey have left the workforce. Theneeds expressed previously mayno longer be relevant as roleschange. The things that one part-ner found endearing or compati-ble in small dosages may feeloverbearing when it is all day, allof the time. Couples must under-stand that they may have moreand stronger needs after retire-ment than before.Couples who are emotionally

open, develop accurate perspec-tives, increase caring actions andare forthcoming about their needslikely will navigate retirementmuch more easily.

EmbracechangingrolesCouples need to realize thatwhatever role they played beforeretirement may no longer apply.This can mean anything, large orsmall: who controls the remote,who decides what to eat, who ar-ranges vacations, who makes thebed and so on. Whoever was thechef before retirement shouldn’tbe surprised that there may be anew cook in town.

We counseled one couple whoretired and planned to move toNorth Carolina. While discussing SE

RGEBL

OCH

Nothing canruin a suc-cessful retire-ment like abad relation-ship. Andnothing cancreate a badrelationship

like not being prepared for retire-ment.It doesn’t have to be that way.

Would-be retirees are instructedon how to have a financial plan,and how to make sure to create alife that will be fulfilling and en-gaging. Still, you can have the bestfinancial advisers and as muchmoney as you need, but if you ha-ven’t thought about the impact ofretirement on your relationship—and the impact of the relationshipon your retirement—you are miss-ing a key ingredient for a success-ful and happy retirement.As counselors and researchers

who specialize in working withcouples and marital counseling, wehave seen numerous couples whoare surprised by how retirementcan wreak havoc on their relation-ship, especially early in retirement.In a research study we conducted,we found that many retired cou-ples felt satisfied in their relation-ship, but only many years after re-tirement. Ten or more years is fartoo long to wait to experience re-lationship satisfaction during re-tirement.So how do you achieve satisfac-

tion in both relationships and re-tirement? Based on our researchand our clinical experience, we of-fer these tips to help couples re-duce the potential strain that re-tirement can have on relationshipharmony, especially as they planfor and enter retirement.

BecomeconfidantsWhen couples are together formany years, balancing the compet-ing demands of work and life, theycan easily put the relationship onthe back burner and focus moreon work, raising children and otherresponsibilities.Work can give people a deep

sense of meaning, connection andself-worth. But when work goesaway, it’s often difficult to sud-denly learn to cultivate worth fromoneself and one’s partner. What’smore, the neglected marriage maynot be noticeable when couplesgive priority to work and child re-sponsibilities. Take away work andchildren, and the neglect becomesoverwhelmingly obvious.To avoid this, couples need to

establish a comprehensive plan toadjust to retirement; the transitionisn’t going to magically take care ofitself. That could involve aligning fi-nancial goals, health needs, travelplans, relationships with other fam-ily members and much more. Byworking together, both people feelrespected and valued, and self-worth and identity move awayfrom the individual and work andto mutual needs and shared goals.For example, one couple came

to us seeking counseling after thehusband had retired. The wife,who had been a homemaker, com-plained that the husbandjust watched TV all dayand was irritable. Thehusband said he felt an-gry, tired and hopeless.All of this was new

and confusing to them:He thought he had pre-pared to relinquish theversion of himself as thebusiness owner and pro-vider, and she thoughtshe was ready to let goof her self-image as ahomemaker.But it wasn’t surpris-

ing to us. Essentially,they had lived in a stateof independent existenceand inadvertently cre-ated a void in their rela-tionship, which becameimpossible to ignore nowthat they had retired.They had forgotten to

create a pathway to each otherand had to relearn themselves,each other and how to enjoy re-tirement.The key in all this is simple

but often difficult: Talk to eachother. We found that 84% of ourretired participants believed thatthey could confide anything totheir partner. It was essential infostering the necessary trust andsecurity needed to navigate re-tirement and reconnect and nur-ture the marriage. Couples needto feel united in their transition.This goes a long way towardhelping reduce feelings of jeal-ousy and disconnection.

Relearnyour part‑ner’s needsIn our clinical experiences, we of-ten have couples who share themyth that they can read eachother’s minds and predict theirneeds throughout life. Maybe (butunlikely) that was true at one mo-ment in time. In reality, peopleand relationships must evolve andadapt to survive and thrive. Thisis particularly important duringlarge life-cycle transitions such as

retirement.Our research findings

suggest that evolvingand adapting to satisfyyour partner’s changingneeds is essential to hav-ing strong marital satis-faction during retirement;some 79% of the partici-pants in our study be-lieved that their partnercared about and mettheir needs. In fact, theirneeds were so well metthat many believed thatno other person would fitthem as well and thatthey did not have regretsin their marriages.If needs are left un-

met, couples can becomedeeply unhappy and evenbitter toward each other,particularly during retire-ment. One woman who

TheSecretto Havinga SuccessfulRelationshipinRetirement

Source: The Family Journal; Marissa Davala, Christine Tina Chasek, Grace A.Mims, Jacob Sandman and Alex Hinrichsen, University of Nebraska at Kearney

Note: Strongest predictors are statistically significant.

WhatMakes a StrongRelationshipA survey and statistical analysis suggest the followingcriteria as being among the biggest determinants ofsatisfaction in relationships during retirement.

Strongest predictors

Other predictors

Howwell a partner ismeeting needsUnable to imagine anyone else for a partnerStrong connection to partner

Frequency of thinking things are goingwell

Years retired

Second thoughts about the relationship

Confiding in partner

Agreement in affection

Enjoyment in relationship

Years together

BYMARISSA DAVALA AND GRACEMIMS

JOURNAL REPORT | ENCORE

P2JW321000-0-R00800-1--------XA

THEWALL STREET JOURNAL. Monday, November 16, 2020 | R9

JOURNAL REPORT | ENCORE

BY BRUCEHOROVITZ

Heading IntoRetirement,A Step at a TimeWith phased-in retirement, I dipped more than a toe in.But I wasn’t ready to dive in headfirst.

their plans, the wife said, “I cookedfor 40 years, I am done cooking. Itold him it’s his turn.” The husband’sresponse: “I will focus on dinner andsee how it goes.” The two laughed. Itmight seem like a minor moment,but it was actually profound. It im-mediately helped the two set thestage for their retired lives, with bothof them open to discarding habitsthat didn’t serve them anymore. Nei-ther felt confined or governed.Couples who consider how retire-

ment can affect their daily function-ing will position themselves to ad-just and redistribute roles asdesired. This was also confirmed inour research as successful adjust-ment helped couples reach a highlevel of marital satisfaction aftermany years retired.

NegotiatetogethernessCouples are often surprised to findthat they have very different ideasabout how much time they shouldspend together after retirement.Spouses can feel rejected, aban-doned, smothered and resentfulwhen they make assumptions aboutthe amount of closeness and separ-ateness they will share. For in-stance, if a couple had a high levelof separateness before retirement,

one spouse may be overwhelmedand annoyed when the partner is al-ways around after retirement.We talked to one woman who

said she was ready to divorce herhusband because after he retired hebecame quieter and started watch-ing a lot of television. His responsewhen she complained: “I talked for45 years at work, I am done talking.”The problem was that they were

speaking two different languages.By renegotiating their level of de-sired closeness and time spent to-gether, and improving their commu-nication skills, they each were ableto change the meaning they as-cribed to the other’s behaviors. In-stead of seeing her husband as lazyand aloof, the woman now saw himas a person who was exhaustedand needing to recover. Instead ofseeing his wife as smothering, theman now saw her as encouraging amore active lifestyle and enjoyingtime together.Our research findings indicated

that people who believed there wasan agreement on expectations re-garding such things as timespent together and affectionreported higher rates ofmarital satisfaction dur-ing retirement. When

these couples connected, it tendedto be meaningful. Merely beingaround one another can feel lonelyif you’re not on the same page.

Find pasttendernessIt’s easy when stressed to forgetwhen times were good. If a rela-tionship is strained because ofchanges brought about by retire-ment, couples may wonder whatthey saw in each other in thefirst place.Reminding themselves of the

answer can be a powerful tool inmoving forward. In our research,we found that people who wereable to reminisce about theirspouses had higher rates of satis-faction during retirement.After all, all couples have mo-

ments of success, even if they for-get. They have learned importantlessons throughout life—as theyestablished careers, married, hadchildren, grandchildren and so on—that can be a rich road map forhow to adapt for the retirementjourney. The key is to remember.The couple may begin by telling

each other about a lesson learnedfrom a past challenge faced to-gether. For example, when we con-

ducted our study we had not in-tended to have the participantstalk with us; they were just goingto take a survey. We found, how-ever, that by completing the survey,many of them so deeply reminiscedthat they had to share stories andmemories with us. Many pulled usaside to express tenderness andfondness for their spouses.We made sense of this phe-

nomenon by understanding thatfinding tenderness in the past be-comes about reflection and creat-ing meaning. It’s about coupleswho may have temporarily losttheir way because of the stress ofchange, but are eager to reconnectwith the person they may havespent much of their life with. Theyjust need to know how.

Dr. Davala and Dr. Mims areprofessors of counselor educationand supervision at the Universityof Nebraska in Kearney. They canbe reached at reports@wsj.com.

For the past five years, I’ve beentrying to perfect the art of aphased-in retirement. I haven’tdone it yet, but I’m getting a lotcloser.But before I explain how I ha-

ven’t lived up to the ideal of aphased retirement, let me first answer amore-basic question: What exactly is phasedretirement, anyway?Phased retirement (sometimes called par-

tial or gradual retirement) means you dipmuch more than one toe into the retirementwaters, but not quite dive in headfirst. Itmeans a lot less money coming in—but atleast some money coming in. It means thatyou—not your employer—are in charge ofyour daily work and play schedule. It meansno more paid sick days; no more paid vaca-tion days and no more employee benefits. Itmeans retiring in small steps instead of onebig leap.Why do it? “It’s the perfect transition

from purpose-driven to a purposeful life,”says Jody D’Agostini, a certified financialplanner at Equitable Advisors in Morristown,N.J. “It’s a way to slowly off-ramp, but stillstay in the game. It’s a way to test-drive re-tirement.”Who should do it? There are three types

of candidates, says Scott Reed, a certified fi-nancial planner at Hardy Reed in Tupelo,Miss.: those who have cooled on their owncareers but aren’t ready to stop working;those who haven’t saved enough to retirebut have to change careers for health rea-sons; and those who want to enjoy life more,but aren’t exactly sure what they want to dowith their time.I call it Retirement Lite. For me, it has

meant taking many retirement-like steps, butwith a lifeboat attached. That lifeboat, in mycase, was having lots of freelance work un-der contract before somewhat reluctantly ac-cepting a buyout and leaving my full-time jobas a USA Today business writer five yearsago, at age 62. I didn’t want to take anotherfull-time job, but I still needed modest in-come, so phased retirement seemed like thebest option.I knew, though, that I had to prepare for

phased retirement as if it was full retire-ment. That’s because you never know howphased retirement will work out. And onceyou leave your job, it can be very difficult tofind full-time work in your field again.For me, phased retirement has mostly

been a good thing. It meant bagging the five-day workweek that was my credo for fourdecades, and slowly replacing it with a rou-tine that typically involved two to three daysof freelance work a week, along with two tothree days of volunteer work.Phased retirement has kicked me in the

teeth plenty. Freelance jobs are fleeting.Most tend to have all the permanency ofnew-car smell. Nor have I gotten fully accus-tomed to getting paid, say, in September, fora freelance-writing gig I completed in May. Ithas meant cutting back on family vacationsand restaurant meals. It has also meantchecking my brokerage account statementsmuch more frequently—and with a height-ened sense of angst.At the same time, phased retirement has

given me my life back.The greatest gift has been more time with

my family. I was around the house for bothof my daughters when they were seniors inhigh school. This made it much easier for mywife, Evelyne, to go to her daily job as a spe-cial-education school aide without having toworry about being at home to put out theemotional fires that tend to flicker and burnthat last year of high school.At age 58, Evelyne is still years shy of re-

tirement. She loves her job, which also is thelinchpin for our family’s health care. But longbefore I considered phased retirement, therewere five boxes that Evelyne and I agreedhad to be checked:• The mortgage was paid off. This can’t be

a last-minute decision. For us, it began yearsbefore the buyout, when my employer firststarted to furlough staff. We immediately be-gan to double-down on our monthly mort-

gage payments and it was probably thebest decision we ever made. Our

mortgage was paid off roughlysix months before I enteredphased retirement.• The car was paid off. We

don’t do fancy cars. But wewere able to pay off our2012 Kia Sorento severalmonths before I entered par-tial retirement. We still haveit and plan to keep it foryears. It has almost 100,000miles and we expect to see it

roll past 200,000.

• The 529s were fully funded. At the time Ibegan phased retirement, I had one daughterjust starting college, and the other was fiveyears away from her freshman year.

• The gigs were lined up. I wasn’t about totiptoe into phased retirement with the cup-boards bare. I had lined up two monthly free-lance writing assignments with trade publica-tions and signed contracts for both. Thatguaranteed me a reasonable monthly incomefor my first year.

• The savings were there. I folded my 401(k)and a small pension into an IRA when I leftmy full-time job, with enough for a reasonablycomfortable retirement.

My biggest mistake, according to Ms. D’Ag-ostini, was taking Social Security at age 66—my “normal” retirement age. We did that sothat we also could collect Social Security forabout 18 months for our youngest daughter.As a full-time high-school student still living

at home, she was el-igible to receive “mi-nor child” benefitson my record. Butby not waiting untilage 70 to collect mySocial Security ben-efits, which is whatMs. D’Agostini typi-cally advises, wegave up four yearsof 8% annual in-creases.Another mistake

we made, according to Mr. Reed, was failing toreview how much we had spent the year be-fore I began phased retirement. Yes, we gotlucky and ended up doing OK, but I went intomy first year of phased-retirement having noidea how much income we actually needed.Phased retirement has been full of financial

surprises. Like the $7,000 surgery that ourmini-Aussie puppy required after he ran awayand broke his leg in two places. Like the deci-sion I recently made to get my oldest daugh-ter a new car instead of a used one for hercollege graduation. Like the Family MedicalLeave Act coverage that my wife took for sev-eral months last year, which left us withouther income during that period. Then there’smy most pathetic partial-retirement indul-gence: the $2,000 I paid a scalper for two tick-ets to see my beloved Cleveland Indians loseGame Seven of the World Series back in 2016.(I would do it again.)The Covid-19 pandemic, meanwhile, cost me

some freelance work, but it brought in someadditional work, too. It resulted in the tempo-rary return of both daughters to the homefront. Since I’m 67 years old, it put all of myvolunteer work on hold. Goodbye, for now, tomy weekly volunteer gigs in food distributionat a local food bank, as a kitchen assistant atthe local homeless shelter and as a naturalistat county park visitor’s center.Still, I’ve embraced phased retirement. It

has taught me to take care of me. I’m back toswimming daily. I’m investing quality time inmy daughters that would have been unimagi-nable before. Two years before Covid-19, I wasable to take my oldest back to college on theWest Coast, and squeeze in a day at VeniceBeach and another at Disneyland. I was ableto take my youngest daughter on a weeklongtour of colleges from San Francisco to San Di-ego, with plenty of beach time, too. Phased re-tirement is a gift. It means I have almostenough, but probably not too much.In the end, isn’t that just about perfect?

Mr. Horovitz is a writer in Falls Church, Va. Hecan be reached at reports@wsj.com.

I still neededa modestincome, sophasedretirementseemed likethe bestoption.

Bruce Horovitz and his Shadow.

P2JW321000-0-R00900-1--------XA

R10 | Monday, November 16, 2020 THEWALL STREET JOURNAL.

JOURNAL REPORT | ENCORE

Whether you’re looking for perspective,practical information or just plain dis-traction from our changing, challengingworld, the following books offer lots ofideas for staying well fiscally and physi-cally, for engaging our minds, sustain-ing our spirits and urging us forward.

depth exploration of the mind-body science that proves thevalue of minding our social bonds.Ms. Zaraska bundles her deep diveinto the research with numeroususer-friendly suggestions abouthow to make new chums andkeep close to all those you careabout. She counsels that, yes,healthy nutrition and regularphysical exercise certainly rankhigh on the must-do list to stayhealthy for the long run. Too of-ten, though, we fixate on “all thewrong things: miracle diets, mira-cle foods, miracle supplements”that end up yielding minimal, ifany, benefits, beyond dollars spentand time lost tracking them. Usethose resources, instead, to en-hance opportunities to connect

and engage with family, friendsand members of your community.She describes, in detail, how brainand body can interact to promoteempathy, attachment and otherpositive emotions—and at thesame time stimulate molecularwell-being on a physiological level.By contrast, the physical and emo-tional stresses resulting fromloneliness, anxiety, pessimism andhostility wear at both mind andbody, possibly contributing toheart disease or other ailments.Her conclusion amounts to a mod-ern-day Golden Rule. “The verysame efforts that rejuvenate ourbodies and help us live long alsohelp us grow as people: nurturingrelationships, developing bettermental habits, becoming kinder,more empathic, more involved inthe community,” she writes. “It ap-pears that growing humane growsour centenarian potential.”

•Successful Aging:A NeuroscientistExplores the Power andPotential of Our Lives

By Daniel J. Levitin

Lots of people will tell you that suc-cessful aging is a combination ofgood health, financial security andother, less-tangible things that onehopes add up to an abiding sense ofhappiness. This guide to successfulaging by Daniel J. Levitin tells usabout strengths we develop over alifetime that allow us to do morethan adapt and compensate; theyhelp us stay at the top of our game.For example, as Dr. Levitin explains,the aging brain may process infor-mation more slowly, but it has in-creased ability to use that informa-tion practically, honed from decadesof life experience. The author, trainedin neuroscience and cognitive psy-chology, overlays discussion of braindevelopment and human physiologywith workable tips to improve andretain vitality of mind and body.These tips go beyond exercise, dietand cognitive engagement to includespecific advice about sleep habitsand issues surrounding chronic pain.Dr. Levitin also evaluates the sci-ence—or lack thereof—behind vari-ous unproven commercial productsand alternative therapies. Through-out the book, he debunks mythsabout aging, such as the mistakenbelief that depression is more com-mon in later life, and identifiesstrengths that come with age.

•Growing Old:Notes on Aging WithSomething Like Grace

By Elizabeth Marshall Thomas

The self-deprecating anthropologistand author Elizabeth MarshallThomas never claims to be a modelfor successful aging. But readers ofher engagingly candid and wrymemoir might see her as one. Wis-dom and insight come easily to thisformer explorer and scientist, whois now 88, widowed and a great-grandmother in rural New Hamp-shire. Ms. Thomas scoffs at thosewho claim aging begins at 50. It

only starts when your oldest childis 50, she writes. In the chattyvoice of a lifelong friend, Ms.Thomas catalogs changes thattime has wrought in the Earth andin herself. She also entertaininglyweighs decisions she must face asa result of those changes. Likewhether to leave her home, closeto her son, before she becomes aburden. And whether to wear

hearing aids. (The inability to hearothers is not altogether unpleas-ant, she observes.) Each of Ms.Thomas’s decisions is guided byher own research. She shares alesson she learned from anthropol-ogy, too, one that she finds partic-ularly relevant in her life rightnow: Retain tight social bonds;never forget that the evolution ofsocial species has taught us thatstaying in groups is the key to sur-vival.

•Growing Young: HowFriendship, Optimismand Kindness Can Help YouLive to 100

By Marta Zaraska

Science journalist Marta Zaraskahas written an engrossing, in-

•The Meaning of Travel:Philosophers Abroad

By Emily Thomas

Put aside the meaning of life for amoment. Why we travel is anotherquestion philosophers have toyedwith over the centuries. And EmilyThomas, a philosophy professor atDurham University in England, findssome very good answers. This intrigu-ing new book explores how travel hasbroadened the minds of great think-ers whom we don’t usually think of asvagabonds or tourists. Montaigne, forinstance, marveled at the way travelcompels us to observe and contem-plate “new and unknown things,”while Descartes credited his wander-ings with making him more acceptingand tolerant of other cultures. Morethan a travelogue of philosophes, Prof.Thomas’s book looks at how thinkingabout travel has evolved, and how ob-servations about travel across theages continue to influence how wethink about our own experiences to-day. Contemporary philosophers ask,How do we weigh our desire to visitendangered sites against the worrythat such visits may harm them? Thisarmchair-travel treat will whet the ap-petite for future trips.

•American Birds:A Literary Companion

Edited by Andrew Rubenfeld andTerry Tempest Williams

Whether you are a longtime bird-watcher or simply enjoy looking upwhen you hear birdsong, this book ofprose and poetry offers an anthologyof knowledge and joyful inspirationsderived from America’s multitudinousbird species. Selections include: Na-tive American songs about birds;journal entries by John James Audu-bon and explorers Lewis and Clark;musings by Ralph Waldo Emersonand Henry David Thoreau; bird-in-spired poems by Emily Dickinson,Elizabeth Bishop and Louise Erdrich,among others; bird-feeder tips fromjournalist Faith McNulty; and ecologi-cal perspectives and warnings aboutthe disappearance of certain speciesgoing back to President TheodoreRoosevelt. Every reader will find aspirit-soaring favorite. Mine: WaltWhitman’s evocation of a dozenbirds whistling, chirping trilling, “sing-ing deliciously,” making sounds “wild,simple, savage, doubtless, but sotart-sweet,” to create the most ex-quisite open-air concert imaginable.

Ms. Cole is a writer in New York.Email: reports@wsj.com.

•Retirement by Design:A Guided Workbook forCreating a Happy andPurposeful Future

By Ida O. Abbott

Would you like a blueprint foryour future based on your val-ues, goals, family concerns andfinancial situation? This practi-cal guide by retirement consul-tant Ida O. Abbott tells you howto make one. It starts with get-ting you to explore your atti-tudes—both positive and nega-tive—about leaving your job,career or business. Next up:Think about who you want onyour personal advisory and sup-

port team, because you’re goingto need one. Obvious choicesshould be family and closefriends whom your personal de-cisions will affect. Other mem-bers should include trusted pro-fessionals, such as your financialadviser and physician. In addi-tion to addressing practical is-sues like finances and family re-sponsibilities, Ms. Abbot asksprobing questions about yourvalues, goals, interests anddreams. Answering these ques-tions will help you fashion a fu-ture that accommodates all ofthose factors. She’ll also helpwith figuring out what comesnext, whether it’s in volunteer orphilanthropic work, takingcourses, or joining clubs or com-munity groups. An extensive ap-pendix contains lots of addi-tional helpful information andresources.

Great Books About Retirement and AgingThis year’s crop of titles include those from a neuroscientist, an anthropologist and a philosopher By Diane Cole

Second Acts

Her Mother lovedMahjong. Now, in Retirement, She Teaches It.

Toby Salk

• Age: 69

• Hometown: Berkeley, Calif.

• Primary Career: Director of creativeservices for a major retail catalog

• Current Path: Mahjong instructor

• Why This Path: “In Mahjong, allthe people I teach are gettingcommunity, exercising their brainsand getting a new skill. It’s veryexciting for me to see that.”

Toby Salk, who grew up in a smallhouse in New York City, has fond memo-ries of sitting on the stairs in her paja-mas, eavesdropping on her mother’sMahjong games.“I remember hearing the tiles and the

murmur,” she says. Now, in retirement,she is making a career of teaching thegame to others.Ms. Salk, now 69 and living in Berke

ley, Calif., worked for 30 years at a retailcompany, finishing up her time there asdirector of creative services for the cat-alog business in 2008.The following summer, 58 and looking

for something new, she took the adviceof a friend and decided to try her handat teaching Mahjong. The friend had abakery and offered it to Ms. Salk for anevening class. And when the friendpromised to provide pastries, Ms. Salk

says, she couldn’t resist.While the game has different versions,

players of American-style Mahjong, whichMs. Salk teaches, generally collect and giveaway tiles in an effort to match combina-tions of patterns shown on a tri-fold card.Before launching the class, Ms. Salk—

who started playing regularly when shewas 26—thought she should first play insome tournaments to gain experience. Ather first tournament, she felt so much

pressure, she says, she wanted to leavebefore the winners were announced. Shewas shocked to hear her name called asthe winner.“I thought, ‘I’m doing the right thing. I’m

really good at this and I can help otherpeople be good at this, too,’ ” she says.Over the past 11 years, she says, she hastaught hundreds of students of all levels.“I love the people I meet, and teaching

them something new,” Ms. Salk says. “I

love creating new communities, connect-ing strangers who become best friends.”Before the pandemic began, Ms. Salk

taught each month in person about fiveclasses of eight students each—in seven-to eight-hour units—and gave roughly 12presentations a year about Mahjong andits history at spas and private clubs in theBay Area. She also hosted a monthlybrunch for players.Now, due to social distancing and lock-

downs, she mostly gives presentations onZoom. Back in April she led a series ofclasses on Zoom for players with someMahjong skills already. But recently for twodays at a spa in Arizona, she gave classesfor beginners in person. The classes weretaught in an open-air room with everyonewearing face masks, she says.“When we grow older, the things that

keep us engaged and sharp in our mindare having a community of learning some-thing new, of pushing your brain a bit,”Ms. Salk says. “In Mahjong, all the people Iteach are getting community, exercisingtheir brains and getting a new skill. It’svery exciting for me to see that.”Ms. Salk hopes to continue playing Mah-

jong as long as her mother, who died threeweeks short of her 100th birthday. She re-calls watching her play on her 97th birthday.“My mom sat down and within moments

called ‘Mahjong,’ ” she recalls. “She won. Ireally think it helped to keep her sharp.”

—Julie Halpert

The game of Mahjong is something Toby Salk has enjoyed for most of her life.

P2JW321000-0-R01000-1--------XA

THEWALL STREET JOURNAL. Monday, November 16, 2020 | R11

TYTO

CARE

The Covid-19 pandemic has dealt a pow-erful punch to preventive care, delayingeverything from cancer screenings toteeth cleaning. And with a surge incases around the country, patients maystill not feel comfortable with in-personvisits and procedures.

The good news is that there are proactive stepspatients can take to stay on top of health risks andconcerns without leaving home. Virtual consultationsare now being covered by public and private health

plans. Home monitoring andtesting devices can help man-age chronic conditions—anddetermine whether there is aconcern that requires an in-person visit. And depending onyour personal risk factors, itmay be fine to delay somescreening tests.Here’s a look at how and

when preventive screeningcan be done safely at home,and some guidelines for whena visit to the doctor mightstill be the best practice.

Cancer screeningIt is important to know your

A lot of people don’t want to go tothe doctor during Covid-19. You can

still stay on top of things.A woman usesa TytoCaredevice for aheart exam ina telemedicinevisit with aclinician.A tabletcomputerdisplays herheart readingvia the cloud-based TytoVisitplatform.

BY LAURA LANDRO

JOURNAL REPORT | ENCORE

personal risk for different cancers,and to follow screening guidelines ofthe American Cancer Society andother medical groups.For example, colonoscopies, which

have dropped dramatically during thepandemic, are considered the goldstandard for detecting colon cancer.Dr. David A. Greenwald, president ofthe American College of Gastroenter-ology and director of clinical gastro-enterology and endoscopy at MountSinai Hospital in New York, sayscolonoscopies are “as safe now as al-ways,” with new measures such asadditional personal protective equip-ment for clinicians and pre-proce-dure Covid testing for patients. Andfollowing scheduling guidelines—forsome, a colonoscopy every five yearsis advised—is especially importantfor those at higher risk due to familyhistory or the presence of certainpolyps in previous screenings.For persons with average risk, and

no symptoms, an at-home kit thatenables users to collect stool sam-ples for analysis by labs can be anoption. Both the fecal-immunochemi-cal test and the fecal-occult-bloodtest look for hidden blood in thestool, a sign of possible colon cancer,and should be repeated annually.The American Cancer Society says

women aged 55 and older who havehad a normal mammogram withinthe past year could choose to haveanother as long as 24 months later.

Skin careDermatologists are using more virtualvideo consults and shared digital pho-tos to determine when something isworrisome enough for an in-personvisit. Dr. Jules Lipoff, assistant profes-sor of clinical dermatology at the Uni-versity of Pennsylvania and chair ofthe American Academy of Dermatol-ogy’s teledermatology task force, saysvideo consults can be ideal for help-ing patients manage acne and rashessuch as eczema and psoriasis whileavoiding in-person contact.To screen for skin cancer, it isn’t

necessary for someone without riskfactors or symptoms to come in for a

checkup. But an in-person visit isimportant for someone at higherrisk, such as a patient with a historyof melanoma. The academy’s web-site, AAD.org also has a guideline forpatients on how to do a skin self-exam.

Mental-health helpFor issues such as anxiety, depressionand substance abuse, video consultsoffer an effective way to stay in closecontact with mental-health profes-sionals, says John Torous, director ofthe division of digital psychiatry atBeth Israel Deaconess Medical Centerin Boston. Dr. Torous and his team of-fer face-to-face sessions over a video-conferencing platform and train pa-tients to use a smartphone app calledmindLAMP between appointments totake anxiety surveys, monitor theirmedication regimens and keep amood journal.Despite some past reluctance on

the part of clinicians and patients touse the technology, “the pandemicforced everyone to start embracingtelehealth, and realize these can bevery efficient and impactful visits,”says Dr. Torous, who is also an assis-tant professor of psychiatry at Har-vard Medical School.

At-home monitorsMore devices and at-home-testing kitsmake it easier to self-manage certaindiseases, such as high blood pressureand diabetes, says Dr. Joseph Kvedar,president of the American Telemedi-cine Association and a professor ofdermatology at Harvard MedicalSchool. Among the tools he cites are ahand-held telehealth device made byTyto Care which sells for $299 and al-lows consumers to conduct virtual ex-ams of their lungs, heart and ears, forexample, and share the data with adoctor in a video consult.

Ms. Landro, a former Wall StreetJournal assistant managing editor, isthe author of “Survivor: TakingControl of Your Fight AgainstCancer.” Email: reports@wsj.com.

Taking Care of Your Health—at Home

P2JW321000-0-R01100-1--------XA

R11A | Monday, November 16, 2020 THEWALL STREET JOURNAL.

Property GuideADVERTISEMENT

To advertise: 800-366-3975 orWSJ.com/classifieds

E# I33 J#8K J2 JI4# 2"? H2--"8+J& I8K ;"<<2?J ;&;J#-; !2? (?I8J#K/"8J+3 J1#& !I33 I*I& 2? *# HI85J IHH#;; J1#-7@"?+8( J1# ?#H#8J <I8K#-+H ;1"JK2*8$ -I8& 23K#? IK"3J; *#?# ;"KK#83& 3#!J J2 J1#+? 2*8 K#G+H#;7

BJ H#?JI+83& ?I+;#; I >"#;J+28 !2? J1# !"J"?#% *2"3K &2" ?IJ1#? F# I328# +8 &2"? 12-# J2 !#8K !2? &2"?;#3!$ 2? 3+G# +8 I!"33.;#?G+H# H2--"8+J&=

,#I"-28J ;"?G#&#K ?#J+?#-#8J.I(# IK"3J; J2 (#J I8 2F6#HJ+G# ?#IK 28 J1# >"#;J+287 D2J ;"?<?+;+8(3&$ J1# ?#;<28;#;*#?# #G#83& K+G+K#K F#J*##8 J12;# *12 *2"3K ;JI& 12-# F#HI";# J1#& *#?# "8H2-!2?JIF3# *+J1 1IG+8(?#;J?+HJ+28; <3IH#K 28 J1#-$ I8K J12;# *12 *2"3K H122;# J2 3+G# +8 I !"33.;#?G+H#$ ;"<<2?J+G# H2--"8+J& +8 2?K#? J2F# ;I!# I8K H2-<3#J#3& HI?#K !2?7

E# J1#8 I;4#K 2"? ?#;+K#8J; 12* J1#& #'<#?+#8H#K J1# ;1"JK2*8 I8K *1IJ :;"<<2?J+G# H2--"8+J&9 -#I8J J2J1#-7 E# HI<J"?#K J1#+? ?#;<28;#; +8 I ;12?J G+K#2 28'''/(&1,423-*&-$0&4&3-/.24 ) #G#?&J1+8( !?2- -I;4.*#I?+8( I8K 2"? 28.HI-<"; -#K+HI3 J#I-$ J2 1IG+8( (2"?-#J -#I3; K#3+G#?#K J2 J1#+? K22?;J#<;7

A1#?# +; 82 #I;& I8;*#?7 ,"J *+J1 &2"? 12-# GI3"# 1+(1 I8K L8I8H+8( ?IJ#; !2? <?2;<#HJ+G# F"&#?; IJ ?#H2?K32*;$ J1+; -I& J1# <#?!#HJ J+-# J2 3#I?8 -2?# IF2"J 3+G+8( +8 I ;"<<2?J+G# H2--"8+J&7 C28JIHJ 0"K?#& EI3;1 IJ")+/#%"/!+++ 2? G+I'''/(&1,423-*&-$0&4&3-/.24 J2 ;H1#K"3# I G+?J"I3 2? :;I!#3&.K+;JI8H#K9 G+;+J ;2287

%,* +/ '4&2" ($1")1# .03" -250# !( *6,*,

541 7130 !13,2,- +/ )6%**+'&2$1 #+..%,2&"(

19 WORLD-CLASSOCEANFRONT RESIDENCES

AARRTTIISSTT ’’SS CCOONNCCEEPPTT

ORALREPRESENTATIONSCANNOTBERELIEDUPONASCORRECTLYSTATINGREPRESENTATIONSOFTHESELLER.FORCORRECTREPRESENTATIONS,MAKEREFERENCETOTHISBROCHUREANDTOTHEDOCUMENTSREQUIREDBYSECTION718.503, FLORIDA STATUTES TO BE FURNISHED BY A SELLER TO A BUYER OR LESSEE. ALL DIMENSIONS, FEATURES,

AND SPECIFICATIONS ARE APPROXIMATE AND SUBJECT TO CHANGE WITHOUT NOTICE. BROKERS WARMLY WELCOMED.

The most extraordinary oceanfront development DelrayBeach has ever seen is coming to life on our prized 220 feet ofshoreline. Intelligent living spaces, beautiful surroundings, andextraordinarily chic design mark a new standard of luxuriousliving. It’s the first and only opportunity for contemporary,

modern style on the ocean in Delray Beach. To learn more orschedule a visit, contact us today. If you’re in the area, visit our

design center at 1053 E. Atlantic Avenue in Delray Beach.

OCEAN DELRAY IS 50% SOLD

SOUTH FLORIDA’S MOST EXCLUSIVEOCEANFRONT LIVING EXPERIENCE

WITH ONLY 10 RESIDENCES REMAINING,THE TIME TO ACT IS NOW!

D E L R AY B E ACH , F LO R I DA

OCEANDELRAY.COM

800.793.9783 | INFO@OCEANDELRAY.COM

1053 E. ATLANTIC AVENUE, DELRAY BEACH, FL 33483

RESIDENCES STARTING AT $5.8M TO $9M

Pure & Extraordinary.

1116 North Ocean Blvd, Pompano Beach, FL 33062(754) 812-3309 • SolemarBeach.com

Discover beachfront elegance.INTRODUCING SOLEMAR, POMPANO BEACH’SNEWEST BEACHFRONT LUXURY ADDRESS.

Currently selling two & three bedroomresidences starting from $1.4 Million.

ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THEDEVELOPER.FORCORRECTREPRESETATIONS,MAKEREFERENCETOTHEDOCUMENTSREQUIREDBYSECTION718.503,FLORIDASTATUTES, TOBEFURNISHEDBYADEVELOPERTOABUYERORLESSEE. Solemar is developed by PRH 1116NorthOcean, LLC (“Developer”). This offering is made only by the Developer’s Prospectus for the Condominium. This advertisementis a solicitation for the sale of Units in Solemar per N.J. Reg. No. 20-04-0016. This Condominium has been registered with theMassachusetts Board of Registration of Real Estate Brokers and Salespersons F-1271-01-01. The Developer is not incorporatedin, located in, nor a resident of, New York. This offering is not directed to any person or entity in New York by, or on behalf of, thedeveloper. This is not an offer to sale nor a solicitation to purchase a condominium directed to any person where such an offer orsolicitation is prohibitedby law. All photographs, renderings, or other depictions are conceptual andmaydiffer from the completedCondominium. Consult the Prospectus for all terms, conditions, specifications, and Unit dimensions. Developer has a license touse the trade names andmarks of The Related Group®. 2020© PRH 1116 North Ocean LLC.

P2JW321000-0-R011A0-1--------XE

THEWALL STREET JOURNAL. Monday, November 16, 2020 | R11B

Property GuideADVERTISEMENT

To advertise: 800-366-3975 orWSJ.com/classifieds

, 7 = 1 H < A - 7 GF

(-7 <DB9 8 #-0- 7 8 * A,< C-

%%$#) ("&'!

)!,+0&'- 2($(-# 0% . )!%%'-'1* 3!1)$.H 4.C- 9B=1 -0-C <A 9B- 9<4- 9. 7..: ).CH=C/F&19C./35<1D !- %=9B-C <1 "GA.1A2 @<CD<1<=+= ).CH=C/?9B<1:<1D /-A9<1=9<.1 ).C 9B.A- >6 =1/ ;-99-CF

'.CD-9 HB=9 G.3 9B.3DB9 G.3 :1-H =;.39 A-1<.C 7<0<1DF&1E3<C- 9./=GF

/(#&- &04+&(2% ! '.5,"'.5*'$)13)+61,

/-04'+*')0/'1!1"#"#!

P2JW321000-0-R011B0-1--------XE

R12 | Monday, November 16, 2020 THEWALL STREET JOURNAL.

For many years, whenever I saw the words“lemon meringue pie” in a cookbook or on amenu, I would be reminded of my mother’sfavorite no-bake pie recipe, the one that in-cluded only three ingredients and tasted likea chemical smoothie.Her devotion to this truly awful dish fre-

quently came up in my conversations withfriends about the odd things our parents did

when we were growing up. The anecdotes I contributedover several decades became part of my virtual family al-bum—an often critical, sometimes humorous portrait ofthe two people at its center.Things are different now. I am retired, my children

are grown, and I tend to spend as much time thinkingabout the past as I do about the days ahead. Given anopportunity to reset the stories I once told about myparents—what they liked, how they behaved, the deci-sions they made—I have found narratives that are lessone-dimensional and that reveal genuine insights intotheir lives and my own.The most obvious example is food. My mother relied

events that eclipsed the earlier nar-rative. Until now.In retelling the story of a man

who remained in the shadows formost of my life, my preteen yearshave become more prominent. I re-member as a young girl jumping intomy father’s lap on those evenings hesat in our den after work, my bodysprawled across his chest while hishand patted me absent-mindedly onmy back, the way one might pat apuppy that has bounded up lookingfor hugs. But he did listen and nodas I rattled on about school and myreport card and the poem I had writ-ten for my teacher.Now, as a parent, I can appreciate

that his attentiveness gave me self-confidence, a sense that I was smart,that doing well in school was some-thing he approved of, that I wasloved. As the third of four children, Ireveled in that assurance, weightlessas it might have been to him.These days I focus less on the

story of his disappearance and moreabout the time I took music lessonsfor a few months on the small or-gan in our living room. I thinkabout how he signed on for lessons,too, and how we sat next to eachother on the bench trying out dif-ferent chords. His travel schedulemeant he couldn’t keep up, but hisintention was all I needed to feelspecial, happy that we were doingsomething together.In previous years, the narrative

about my parents was intended todistance myself from them, to en-sure that my life would be differentfrom theirs. I see now that there wasnever the need to push them away,only to better understand their ownchallenges and how they helpedshape the person I have become.It feels good to have rewritten

these stories. I hope my own chil-dren do the same when they tell, inlater life, their stories about us. Inthe meantime, I am knitting a large,multicolored Amish throw, and I amalways happy to serve up my favor-ite vegetable dip. It has just two in-gredients: soy sauce and mayon-naise. It’s always a winner.

Ms. Shell is a writer in Philadelphia.Email: reports@wsj.com. SE

RGEBL

OCH

JOURNAL REPORT | ENCORE

I was 10, she invited a boyfrom a school for the blind tospend an afternoon with us.The child sat on a couch in theliving room, head down, rock-ing silently back and forth.None of us had a clue what tosay or how to play with some-one who couldn’t see.In the story I told about

these episodes, I describedthem, critically, as examples ofmy mother’s unpredictable be-havior, impulsive acts that dis-rupted our household routines.Now I view things differ-

ently. It wasn’t about us; it wasabout my mother gathering inneglected “others.” If she didn’tchange the course of anyone’slife, at the very least she influ-enced my own. I realize nowthat the person-to-person waysI have chosen to be involved inmy community reflect back onher compassion for others. Re-

membering that compassion, seeingonce again the blind child on ourcouch, is the new narrative.Gardening was another topic up for

review. I used to think of my mother’s

work in the garden as “puttering.” Allof these activities seemed so boring—designed to keep women occupiedwhen there were so many more pro-ductive things they could be doing.This story has changed, too. I un-

derstand now my mother’s embrace ofan activity that offered immediategratification, demanding only her at-tentiveness at a time when the expec-tations she had once held for her lateryears were being slowly upended. Theflowers, the ground coverings, thehoneybees, all held steady for her, re-turning every spring just as they do inmy own suburban garden.My father is harder to fit into this

revisionist history. He was an insur-ance executive and traveled almostevery week, and in my late teen yearshe left the family. I followed his lifepost-us—an unhappy sequence of

on quick and easy meals: the casse-roles she froze for months before ex-huming them for dinner; the no-fusspie mentioned above that I wouldtoss down the disposal when shewasn’t looking; the TV dinners thatcame with goopy mashed potatoesand gelatinous gravy cordoned offfrom meat that looked like cat food.Thinking back, the context

should have been obvious. She hadfour children and very little time todo anything creative in the kitchen,let alone prepare appetizing meals.But she did something that I now

realize was better: She livened upour dinners with the Reader’s Di-gest vocabulary quiz, challengingme, my father and my siblings tochoose the right definition of eachword and then spell it. I recognizenow that these dinners were whereI developed a love of words.Another narrative centered on

my mother’s occasional social invi-tations to local children she consid-ered needy or disadvantaged. When

Maybe My ParentsWeren’t Really So BadFor years, my stories about themhad a negative tinge

BY ROBBIE SHELL

It feels good to haverewritten these stories.

When you trade futures, you often wind up with a lot of questions. That’s why, at TD Ameritrade, we have on-demandeducation, futures specialists ready to talk day and night, and an intuitive trading platform. So whatever the question,you’ll have all the answers you need.

Learn more at tdameritrade.com/tradefutures

How is futures margin different fromequities margin?

Futures trading is speculative, and is not suitable for all investors. Futures trading services provided by TD Ameritrade Futures and Forex LLC. Trading privilegessubject to review and approval. Not all clients will qualify. Futures accounts are not protected by SIPC. All investments involve risk, including risk of loss.TD Ameritrade, Inc., member FINRA/SIPC. © 2019 TD Ameritrade.

P2JW321000-0-R01200-17FFFF5178F