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Precautions Test Voters in Elections Around the U.S. Virus


What’s
News Cases Hit
Business & Finance
Records
ell is examining op-
In Many
D tions, including a spinoff
for its roughly $50 billion
stake in VMware, as the PC
maker seeks a boost for its
States
lackluster stock price. A1 Officials tighten rules
 The divergence in the per- and social-distancing
formance of the major U.S. enforcement as world
stock indexes this year is the
widest in over a decade. A1 total tops 9.1 million
 The Nasdaq rose 0.7% to
another record, while the
BY TALAL ANSARI
Dow and S&P 500 added 0.5%
and 0.4%, respectively. B13
New coronavirus cases rose
 Surveys of purchasing sharply in several states, with
managers showed output Arizona, Texas and California
contracting at a slower reporting new daily records of
BRETT CARLSEN/GETTY IMAGES

pace in the U.S., Europe infections Tuesday, prompting


and Asia this month. A2 more elected officials to
tighten rules on gatherings
 A Missouri court upheld
and strongly urge people to
a jury verdict that J&J’s tal-
stay home and follow social-
cum powder caused cancer in
distancing guidelines.
22 women but cut the dam-
The total number of con-
ages awarded by more than
firmed coronavirus cases
half to about $2.1 billion. B1
BALLOT BOX: Voters kept their distance in Louisville, Ky., Tuesday as primaries were held in several states. A string of chaotic world-wide surpassed 9.2 mil-
 Wirecard’s ex-CEO was voting days in recent months has raised concerns about the country’s ability to run a smooth election during the pandemic. A4 lion, with more than 2.3 million
arrested and released on bail cases in the U.S., as the na-
days after the German fintech tion’s death toll reached more
company revealed a $2 bil- than 121,000, according to data

Nasdaq Outpaces Blue Chips,


lion hole in its books. B1, B12 from Johns Hopkins University.
The two most populous states,
 Mall owner Simon Prop-
California and Texas, each re-
erty is teaming up with
ported more than 5,000 new
Brookfield Property in explor-
infections, breaking their previ-

S&P 500 as Tech Stocks Rally


ing a bid for J.C. Penney. B6
ous daily records.
 Silicon Valley executives On Monday, Texas Gov.
criticized Trump’s order Greg Abbott said he didn’t
suspending new immigra- want to backtrack on reopen-
tion on several employment- ing the state and said resi-
based visa programs. B1 BY KAREN LANGLEY over the Dow and S&P 500 is in returns: A handful of who are trying to make sense dents need to take it upon
the biggest since 1983. The gap growth stocks that have of a dizzying stretch of volatil- themselves to wear masks and
 Amazon is launching a
The divergence in the per- between the S&P 500 and the surged this year have an out- ity in markets. Valuing stocks practice social distancing. But
$2 billion internal venture-
formance of the major U.S. Dow is the widest since 2002, size influence on the Nasdaq became increasingly difficult on Tuesday he urged Texans
capital fund focused on tech
stock indexes this year is the when the Dow was ahead. and the S&P 500. Apple Inc., after the coronavirus pandemic to take precautions, saying
investments to reduce the
widest in more than a decade. The Nasdaq continued its Microsoft Corp., Amazon.com brought the economy to a halt people shouldn’t go out unless
impact of climate change. B4
A surge in big technology outperformance Tuesday, out- Inc., Google parent Alphabet and companies from Caterpil- absolutely necessary.
 The government may stocks has helped the Nasdaq pacing the Dow and S&P 500 Inc. and Facebook Inc. to- lar Inc. to McDonald’s Corp. to “The safest place for you is
consider postponing the Composite rally 13% in 2020, for the day and notching its gether account for about 40% PayPal Holdings Inc. pulled at home,” Mr. Abbott said.
2019 annual tax-filing dead- while the Dow Jones Industrial 21st record close of 2020. The of the Nasdaq and 20% of the forecasts. Please turn to page A6
line a second time, Treasury Average of blue-chip stocks is index climbed 0.7%, while the S&P. Of those stocks, only Ap- Although economic data
Secretary Mnuchin said. A2 down 8.3%. The benchmark Dow edged up 0.5% and the ple and Microsoft are in the Please turn to page A8  Cases climb as European
S&P 500 is hovering in be- S&P 500 added 0.4%, driven by Dow. capitals open.............................. A7
tween them, off 3.1%. improving economic data. The disparities add to the  Nasdaq enjoys another record  Latin America is grim new
World-Wide The Nasdaq’s advantage One explanation for the gap challenges facing investors trading session........................ B11 center of pandemic................ A8

Funeral Is Held as Police Bill Stalls


Dell Explores Spinning Off
 New coronavirus cases
rose sharply in several states,
with Arizona, Texas and Cali-

$50 Billion VMware Stake


fornia reporting new daily re-
cords of infections, prompt-
ing more elected officials to
tighten rules on gatherings
and strongly urge people to
stay home and follow so-
cial-distancing guidelines. A1 BY CARA LOMBARDO ter-hours trading when The data-storage business. Sepa-
 A prosecutor in the crimi- Wall Street Journal reported rating the companies could
Dell Technologies Inc. is ex- on the review. help highlight the value of one
nal case against Roger Stone
amining options, including a Dell shares rose 18% to or both businesses.
said in prepared remarks that
spinoff for its roughly $50 bil- $57.80 after rising 1.5% in reg- A transaction involving VM-
supervisors repeatedly told
lion stake in VMware Inc., as ular trading. VMware shares, ware could also be designed to
him the ex-Trump adviser
the PC maker seeks a boost for which were little changed in help reduce Dell’s $48 billion
would receive special treat-
ERIK S. LESSER/EPA/SHUTTERSTOCK

its lackluster stock price. regular trading, rose 8% to debt load.


ment because of his relation-
Dell recently kicked off a $161.50. To the frustration of Dell
ship with the president. A4
process to explore the possi- Dell’s review is at an early investors, the company’s stock
 The American Hospital bility of unloading the stake or stage, no decision is imminent has barely budged since re-
Association was dealt a loss taking other steps that could and it is still possible the com- turning to the public markets
in its legal bid to stop the include buying the rest of VM- pany will choose to do noth- in 2018.
Trump administration from ware, according to people fa- ing. That is despite a more than
requiring hospitals to disclose miliar with the matter. The The goal of the review is to 50% rise in the same period
secret rates they negotiate companies are working with address a gap between Dell’s for the tech-heavy Nasdaq
with insurance companies. A6 A funeral was held Tuesday in Atlanta for Rayshard Brooks, who outside advisers, these people market value—about $36 bil- Composite Index, which hit a
 Senate Democrats
was killed by police in a Wendy’s parking lot on June 12. In said. lion on Tuesday afternoon— record high on Tuesday as in-
threatened to block consid-
Washington, Senate Democrats threatened to block consideration In a sign of investor enthu- and the value of its 81% stake vestors pile into stocks of
eration of Republicans’
of Republicans’ law-enforcement bill, saying it was too narrow. A3 siasm for a transaction that in VMware, which suggests the companies that are thriving
law-enforcement bill un- will unlock value, shares of market is assigning little or no amid the coronavirus lock-
both companies jumped in af- worth to Dell’s core PC and Please turn to page A2
less bipartisan talks over a
broader overhaul begin. A3
 The Louisville, Ky., po-
lice chief officially fired one
Plexiglass to the Rescue: Supplies Donors Linked to INSIDE
of the three police officers
involved in the March kill-
Run Short as Barriers Go Up
ing of Breonna Taylor. A3
 The FBI said that a noose
i i i China Won Access to
Designers plan pandemic protection for
found in the racetrack garage
stall of Nascar driver Bubba
Wallace had been there for the beach, restaurants and schools Trump and GOP
months and didn’t appear to
have been targeted at him. A3
BY PIETRO LOMBARDI years I had never seen some-
 Russians are set to begin AND KIM RICHTERS thing similar.”
Money flowing to president’s re-election LIFE & ARTS
voting on constitutional Plexiglass, a type of plastic, committee opened doors in Washington With vacationers
changes that could allow Putin ROME—Stefano Antonelli came into its own during
to stay in office for years. A9 has sculpted plexiglass for de- World War II, when it was BY BRIAN SPEGELE and if possible affect policy-
postponing plans, next
cades in his workshop, making touted as a safer alternative to making. year’s bookings are
 A strong earthquake
struck Mexico’s Pacific bikes and furnishings and glass in aircraft windshields. Soon after Donald Trump Several of those involved filling up. A11
coast state of Oaxaca. A9 works of art. But a recent cus- Now the pandemic is twisting took office, people with ties in the effort worked closely
tomer request stood out. A lo- the material into some mind- to the Chinese state poured with China’s national-secu-
cal hospital asked for a box to bending shapes. In a world hundreds of thousands of rity apparatus, including or-
CONTENTS Opinion.............. A15-17 cover patients’ heads, a bar- marked by social distancing dollars into his re-election ganizations linked to its mili-
Banking & Finance B12 Property Report... B6
ANDREJ CUKIC/EPA

Business News.. B3,7,8 Sports....................... A14 rier to prevent transmission of and shields, designers are of- bid to get close to and po- tary, and briefed prominent
Crossword.............. A14 Technology............... B4 the coronavirus. fering plexiglass corrals for tentially influence the new Chinese political figures
Heard on Street.. B14 U.S. News......... A2-4,6 It was one of many pleas the beach, individual boxes for president. about their efforts.
Life & Arts....... A11-13 Weather................... A14
Markets.................... B13 World News........ A7-9
for protective equipment made pupils in classrooms and a The effort had early suc- As guests of a Republican
of the transparent acrylic that host of other new applications. cess in gaining access for official named Shawn Steel,
the 58-year-old artisan has re- One of them is Christophe those involved, helping them Chinese nationals, including
> ceived over the past months Gernigon. The Paris designer meet the president or top a man working for China’s SPORTS
from stores, restaurants and was browsing social media one Republicans at fundraisers central government, at- Djokovic and other
professionals. night, looking at measures or at an internal GOP leader- tended an invitation-only
“It has been like a tsu- used in restaurants to keep so- ship meeting. It reveals how gathering in May 2017 where
players test positive
nami,” Mr. Antonelli said at cial distance such as plexiglass China seeks to build inroads GOP leaders discussed cam- for virus after
s 2020 Dow Jones & Company, Inc.
All Rights Reserved his workshop, a stone’s throw dividers on tables. into U.S. politics, gather in- paign strategies and other tournament. A14
from the Colosseum. “In 40 Please turn to page A10 formation on U.S. leaders Please turn to page A10
A2 | Wednesday, June 24, 2020 THE WALL STREET JOURNAL.

U.S. NEWS
Global Economy Shows Some Positive Signs Another
BY PAUL HANNON
AND DAVID HARRISON
Recovery Path Taxpayer
Reprieve
June surveys of purchasing
managers pointed to a return
The global economy is grad-
to growth in France and
ually pulling out of its stall as

Is Possible
Australia, and less severe
businesses reopen after pan-
contractions in Germany and
demic-induced lockdowns, with
Japan.
output contracting at a slower
pace in the U.S., Europe and Purchasing managers BY PAUL KIERNAN
Asia this month, according to composite output indexes
surveys of purchasing manag- WASHINGTON—The govern-
ers. France Germany ment may consider postponing
A composite index produced Japan Australia the 2019 annual tax-filing
by data firm IHS Markit 60 deadline a second time, though
pointed to a more gradual de- Treasury Secretary Steven
cline in business activity in the 50 Mnuchin suggested Tuesday
U.S., suggesting a possible re- that the benefits of doing so
bound in coming months. 40 would be less clear than before.
The firm’s U.S. purchasing Federal income-tax filings
30
managers index for manufac- and payments by individuals
turing was 49.6 and its services 20 and companies that are nor-
index was 46.7 in June, in both mally due on April 15 were de-
cases the highest reading in 10 layed this year to July 15, as
four months. The composite in- the Treasury Department
dex on the month was 46.8, 0 sought to bolster household
FCA/REUTERS

also the highest in four months. 2018 ’19 ’20 and business finances amid
A level below 50 points to a the coronavirus pandemic.
Note: Readings below 50 indicate contraction,
decline in activity, while a read- above, expansion Asked in an interview at a vir-
ing above that mark points to Curtains intended to prevent virus spread are seen at a Fiat Chrysler plant in Sterling Heights, Mich. Sources: IHS Markit tual Bloomberg event if he
an increase. was considering another delay
The data could be a sign that turn to growth in the third sion in private-sector activity look, curbing spending by busi- IHS Markit, and firms ex- to Sept. 15, Mr. Mnuchin said
the sharp drop in economic ac- quarter,” he said. for the first time since February. nesses and households.” He pressed confidence that activity it is possible.
tivity that started in March, The slower decline, albeit But the surveys also re- added that “the recovery could would pick up. “As of now we’re not intend-
when coronavirus cases began tentative, is most visible in corded continued declines in also be derailed by new waves Signs of a return to growth ing on doing that, but it is
to rise, could be bottoming out. countries that issued stringent activity in countries that im- of virus infections.” in France and Australia, com- something we may consider,”
Still, the U.S. economy will stay-at-home rules during the posed softer lockdowns, includ- Federal Reserve officials bined with indications of stabi- he said.
likely remain weaker than it coronavirus pandemic, where ing Germany and Japan. The have cautioned against reacting lization elsewhere, come as Mr. Mnuchin said the initial
was at the beginning of the economic activity fell sharply in latter recorded a sharper drop too strongly to hints of positive economists are reassessing decision to extend the tax
year for some time. March, April and May. in manufacturing activity than data, noting the U.S. faces a their most pessimistic projec- deadline was based in part on a
“The big picture is that the The lifting of many of those in May, suggesting the path long road to recovery. tions for the global economy concern that people couldn’t
economy is now on the road to restrictions appears to have led back will be long and bumpy. “It’s just going to take a long during the three months access their accountants as of-
recovery following the corona- to a stronger rebound in June, A rise in new coronavirus time, I think, to get back to through June. They still expect fices and stores across the
virus lockdowns,” said Andrew and surveys in some instances cases in the U.S. could prompt where we were in February,” to see the sharpest contraction country shut down in March.
Hunter, senior U.S. economist showed an expansion. officials to impose new lock- Cleveland Fed President Loretta on record for many parts of the He also noted that most tax-
at Capital Economics in a note In the eurozone, the com- down measures, possibly affect- Mester said last week. global economy but are moder- payers have filed their taxes,
to clients. posite purchasing managers in- ing the nascent recovery. Some U.S. companies re- ating their estimates. including most who were owed
Chris Williamson, chief busi- dex—a measure of activity in Mr. Williamson said that ported a pickup in demand in German bank Berenberg last refunds.
ness economist at IHS Markit, the manufacturing and services “any return to growth will be June and said they were able to week said it expects the U.S. “I’d encourage all Ameri-
said output and employment sectors—rose to 47.5 in June prone to losing momentum due pass on higher input costs to economy to contract by 4.1% cans, if you can file your tax re-
were falling at “far more mod- from 31.9 in May to reach its to persistent weak demand for their customers. Companies this year, having previously ex- turns, go ahead and do it, par-
est rates” in both the manufac- highest level since February. many goods and services, had also been able to shrink pected to see a 6.1% drop. ticularly if you think you have a
turing and service sectors. The composite PMI for linked in turn to ongoing social their backlogs of orders. refund,” Mr. Mnuchin said.
“The improvement will fuel France rose to 51.3 in June from distancing, high unemployment Job cuts continued, though  Heard on the Street: Europe’s “And we’ll look carefully as we
hopes that the economy can re- 32.1 in May, indicating an expan- and uncertainty about the out- at a slower pace, according to bulls run roughshod............. B14 approach this July day.”

U.S. WATCH
IMMIGRATION The appeals court for now
withheld issuing its mandate to
Court Ends Injunction give challengers time to seek
On Quick Deportation additional review, making it un-
clear when the administration
A federal appeals court ruled can begin applying its expanded
Tuesday that a federal judge authority across the country.
KRISTOPHER RADDER/THE BRATTLEBORO REFORMER/ASSOCIATED PRESS

was incorrect to block a Trump “To put people who are inside
administration policy allowing of the United States, rather than
the government to quickly de- people at the border, into sum-
port unauthorized immigrants mary removal proceedings with-
without going through immigra- out a right to counsel, that vio-
tion courts. lates due process,” said Anand
The U.S. Court of Appeals for Balakrishnan, senior staff attor-
the District of Columbia Circuit ney at the American Civil Liber-
reversed a preliminary injunction ties Union, one of the plaintiffs.
that prevented the administra- —Michelle Hackman
tion from expanding its swift
deportation authority. GEORGIA
The policy, known as expe-
dited removal, is now applied to Legislature Passes
immigrants who are found Hate-Crimes Bill
within 100 miles of the Mexican
or Canadian borders, and who The Georgia legislature ap-
have entered the U.S. illegally proved a hate-crimes bill on
within the previous two weeks. Tuesday, after it came under SO SWEET: Allison Maynard’s 3-year-old daughter, Emarie, samples one of the strawberries they picked Tuesday at a farm in Newfane, Vt.
In July 2019, the Trump ad- pressure from a wide coalition
ministration moved to expand of civic groups and companies lina and Wyoming. spread civil unrest, Georgia has JUSTICE DEPARTMENT ant, as well as the states’ cur-
the application of the policy to following the killing of Ahmaud Legislators in Georgia said stood strong for that which is rent thinking on joining a Justice
the entire country and to any Arbery, an unarmed black man. they wanted to act quickly to right.” Next Step in Potential Department lawsuit or setting
immigrant who entered the U.S. The bill would increase the honor Mr. Arbery, who prosecu- Wanda Cooper-Jones, Mr. Ar- Google Suit Looms out on their own, the people
unlawfully in the previous two prison sentences in cases where tors say was fatally shot in Feb- bery’s mother, said in a state- said.
years. the victim was selected on the ruary after being pursued by ment that she was grateful her The Justice Department and The Wall Street Journal re-
The Department of Homeland basis of race, religion, sexual ori- three white men while running. son hadn’t died in vain. “I know a group of state attorneys gen- ported last month that both the
Security and U.S. Immigration entation or other bias, and cre- Republicans dominate both he is still with us and this law is eral are scheduled to meet Fri- Justice Department and a group
and Customs Enforcement didn’t ate a hate-crimes investigations chambers of the legislature, and evidence of that,” she said. day to talk about the next steps of states are likely to sue Google
return requests to comment. database. Republican Gov. Brian the bill passed by large margins Georgia’s legislature has been in bringing a likely antitrust case on allegations that the company
Federal immigration officials Kemp said he would sign the with bipartisan support. considering a hate-crimes bill for against Alphabet Inc.’s Google, is using its dominant position to
have defended the policy change legislation as soon as possible. “This is a defining moment 20 years. The version that according to people familiar with suppress competition, and are
as necessary to divert more Georgia is one of four states for Georgia,” said House Speaker passed Tuesday was approved the matter. well into litigation planning.
cases from immigration courts, that don’t have a law punishing David Ralston, a Republican by the House in March 2019, Federal and state officials are Google has repeatedly denied
which are working through a crimes based on bias, according from rural north Georgia. “It is a but had been stalled in the Sen- expected to meet virtually to that it runs its businesses in an
backlog of cases that has grown to the Justice Department. The moment where in the midst of ate since then. talk about the scope of any legal anticompetitive manner.
to more than a million this year. others are Arizona, South Caro- a global pandemic and wide- —Valerie Bauerlein complaint against the search gi- —John D. McKinnon

Dell Mulls bined with EMC Corp., be-


cause of a rule requiring both
companies involved in a
capital structure by managing
cash flow, paying down debt
and making the right invest-
billion.
The demand for cloud com-
puting, which enables custom-
cloud services, making them a
priority for many technology
giants.
age with its purchase of EMC,
which at the time was the
largest technology merger in

$50 Billion spinoff to have operated con-


tinuously for five years to
qualify for such treatment.
ments.
VMware has a strong posi-
tion in the market for “hy-
ers to rent computing horse-
power rather than invest in
their own, has exploded in re-
The personal-computer
sector, on the other hand, no
longer enjoys the heady
history.
Included in that purchase
were several other businesses

Spinoff Dell, founded by Michael


Dell in 1984, has become
known for its complicated fi-
brid” cloud, in which large
companies mix public cloud
services like those offered by
cent years.
Businesses such as startups
that couldn’t support in-house
growth it once did after the
market condensed into a few
key players and consumers
such as cybersecurity firm
RSA Security LLC, software-
development company Pivotal
nancial engineering over the Amazon.com Inc. and Micro- IT departments were among turned their attention to Software Inc. and VMware,
Continued from Page One years. soft Corp. with their own pri- the earliest cloud adopters, smartphones and tablets. which has since bought Piv-
downs. It went private in a 2013 vate networks. It has a mar- but now companies across al- That is partly what led Dell otal. Dell sold RSA to a pri-
Dell has recently organized leveraged buyout by Mr. Dell ket value of around $62 most every industry rely on to push further into data-stor- vate-equity firm.
working groups to explore var- and private-equity firm Silver
ious possibilities for the VM- Lake that was one of the larg-
ware stake.
The primary option is a
est on record. After buying
EMC, they undertook a com-
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some of the people said. tracked Dell’s stake in VM- showed the number of Apple highest level since 2012. 200 Burnett Rd., Chicopee, MA 01020.

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companies would work to- ist Carl Icahn. Gold prices settled Mon- motely during the pandemic. Need assistance with your subscription?
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THE WALL STREET JOURNAL. * * * * * Wednesday, June 24, 2020 | A3

U.S. NEWS
Activists Expand Campaign Against Statues to Presidents, Others
Detective
Involved in
Killing Fired
BY ARIAN CAMPO-FLORES Schroeder said Mr. Hankison
violated procedures when he
The Louisville, Ky., police “wantonly and blindly” fired
chief on Tuesday officially 10 rounds into Ms. Taylor’s
fired one of the three police apartment. The chief said Mr.
officers involved in the March Hankison fired into a patio
killing of Breonna Taylor, a door and window covered with
26-year-old black woman. material that prevented him
Ms. Taylor was asleep with from verifying whether some-
her boyfriend when the three one was an imminent threat.
officers, who had secured a Some of the rounds entered
no-knock warrant to search the neighboring apartment,

KEVIN LAMARQUE/REUTERS
her home in connection with a endangering the three people
drug case, broke through her there, the chief said.
apartment’s front door. Her “I find your conduct a
boyfriend, thinking they were shock to the conscience,” Chief
intruders, shot at them, ac- Schroeder wrote. “I am
cording to his attorney. Offi- alarmed and stunned you used
cers responded by firing more deadly force in this fashion.”
than 20 bullets, at least eight Mr. Hankison was disci-
of which hit and killed Ms. plined last year for reckless Activists across the country George Washington and Thomas the Indian Removal Act, which rights of former slaves in the
Taylor, according to attorneys conduct that injured an inno- are targeting statues of former Jefferson, both of whom owned resulted in the forced removal of South. Before the war, he freed a
for her family. cent person, Chief Schroeder presidents and other well-known slaves. Native Americans from their slave he had owned for more
In a letter released by the said. The chief said Mr. Hanki- figures, escalating a campaign In Washington on Monday, lands. than a year, and he managed a
Louisville Metro Police De- son had 10 days to appeal his that previously focused on Con- police blocked activists who The debate over monuments Missouri farm where slaves were
partment, Police Chief Robert termination—a move that federate generals and prompting tried to pull down a statue of has forced some public officials to forced to do much of the labor.
Schroeder said he was firing would result in a public hear- a national reckoning over the Andrew Jackson (above). The grapple with the country’s deep The efforts to pull down stat-
Detective Brett Hankison ef- ing. value and meaning of historical statue of the former president legacy of racism and the degree ues have drawn criticism from
fective Tuesday. An attorney for Mr. Hanki- monuments. on horseback has been a focus to which it casts a shadow on a Republicans, including President
He said he took the action son didn’t respond to a re- As protests over racial injus- of protests since the May 25 po- range of historical figures, many Trump and Senate Majority
after a pretermination hearing quest for comment. tice continue in major U.S. cities, lice killing of George Floyd in of whom have long been written Leader Mitch McConnell (R., Ky.)
held earlier in the day and his Activists have called for the activists have forcefully removed Minneapolis. President Trump about with reverence. and from some Democrats.
review of an investigative file three officers involved in the statues and monuments honor- has cited Andrew Jackson, a Ulysses S. Grant, for instance, Mr. Trump said Tuesday that
by the department’s public in- shooting to be fired and crimi- ing historical figures who owned wealthy landholder and slave whose statue was toppled Friday he planned to sign an executive
tegrity unit. Last Friday, Chief nally charged, and their de- slaves or participated in the op- owner who rose to power using in San Francisco, led the Union order to bolster laws that pro-
Schroeder had notified Mr. mands have become more in- pression of minority groups. populist rhetoric, as one of his Army during the Civil War, advo- tect monuments.
Hankison of his intention to sistent in the wake of the In Portland, Ore., last week, heroes. His legacy has come un- cated arming black troops and — Andrew Restuccia
fire him. killing of George Floyd in Min- protesters tore down statues of der criticism for his advocacy of worked as president to secure the and Paul Kiernan
In Tuesday’s letter, Chief neapolis May 25.

FBI Says Noose Didn’t Target Driver Democrats Balk at


BY LOUISE RADNOFSKY
AND ANDREW BEATON
known to have been in garage
number 4 in 2019, nobody
could have known Mr. Wallace
months.
Steve Phelps, Nascar’s pres-
ident, said Tuesday that Mr.
was run on Monday, a day late
because of a weather delay, ri-
val drivers and their crews
GOP Policing Bill
The Federal Bureau of Inves- would be assigned to garage Wallace and his crew had no marched on the track behind
tigation said Tuesday that a number 4 last week,” they said involvement in the incident, Mr. Wallace’s car as a show of BY KRISTINA PETERSON on the bill, set to come up for
noose found Sunday in the ga- in a joint statement. Nascar, in and that he had no regrets solidarity with him. AND NATALIE ANDREWS a vote Wednesday, would likely
rage stall of Nascar driver a statement, referred to it as a about the way that Nascar re- The discovery of the noose mean the collapse of efforts to
Bubba Wallace had been there “garage door pull rope fash- sponded. “It is fantastic to on Sunday came as the sport WAS H I N GT O N — S e n a te overhaul police laws.
for months and didn’t appear to ioned like a noose.” hear from the FBI, definitively, was already grappling with Democrats threatened to block “If they won’t even start it,
target the lone black driver at The incident has the poten- that there was not a hate heightened tensions over race. consideration of Republicans’ that tells me that this is al-
the highest level of the sport. tial to fuel criticisms that pro- crime,” Mr. Phelps said. “To be In the wake of the killing of law-enforcement bill unless bi- ready over,” Mr. Scott said.
The rope’s discovery, involv- testers of racial injustice are clear: We would do this George Floyd, Mr. Wallace partisan negotiations over a Senate Majority Leader
ing a star black athlete who had exaggerating problems, or again.” emerged a leading activist in broader overhaul begin, dim- Mitch McConnell (R., Ky.) said
become a leading voice against Nascar previously said that the predominantly white ming hopes of passing legisla- the “horse-trading” over
racism, jolted Nascar and the a crew member had found the sport, calling for a ban on tion responding to the police amendments should begin
country at a moment of height- noose, leading to Nascar secu- Confederate flags at races and killing of George Floyd and once the chamber has started
ened tensions over racial injus-
The rope was in rity being contacted. driving a car with the message subsequent protests. debating it, but Democrats
tice and race relations. Nascar place months before Mr. Phelps had told report- “Black Lives Matter” on it. Democratic senators balked said it was clear that the sig-
said it is still investigating why ers that only a few racing per- Nascar had embraced Mr. Tuesday at starting debate nificant changes they sought
a rope resembling a noose had
the stall was assigned sonnel would have had access Wallace’s car, and imple- over the GOP bill crafted by wouldn’t be approved.
ever been in the garage in the to Mr. Wallace. to the garage amid tight secu- mented a ban of Confederate Sen. Tim Scott of South Caro- Mr. Scott’s bill is narrower
first place. rity and restrictions imposed flags inside its venues. lina, saying it was too “thread- than Democrats’ legislation,
The FBI and U.S. Attorney by the novel coronavirus, and Outside Talladega Super- bare” to even serve as a start- which is expected to be ap-
Jay Town of Alabama’s North- that any suggestion that the speedway, in Lincoln, Ala., on ing point for discussions. proved in the House on Thurs-
ern District said agents re- even seeking to create them. incident had been faked “is Sunday, when the race was “In place of real change and day. The GOP bill seeks to col-
viewed video evidence showing Although the federal investiga- something that personally of- originally scheduled, fans pa- accountability for police offi- lect data around controversial
the presence of the noose tion is complete, Nascar said it fends me.” raded with Confederate flags cers and departments, the Re- police practices, establish new
since at least October, well be- would continue to look into The FBI’s announcement in defiance of the new rule. publican bill proposes a slew training programs and widen
fore the stall was assigned to why the noose, a symbol of vi- that the rope wasn’t evidence Mr. Phelps, who did not of studies and commissions,” the use of body cameras,
Mr. Wallace ahead of the olence and racism against of a hate crime comes after a take questions on Tuesday, Minority Leader Chuck among other proposals, but
planned start of the race at black Americans for the evoca- charged two days in which the said that the image of support Schumer (D., N.Y.) said Tues- wouldn’t take more far-reach-
Talladega Superspeedway on tion of lynchings of black peo- racing circuit expressed revul- for Wallace was “indelible” for day. ing steps to curb officers’ legal
Sunday. ple that long took place across sion over the alleged incident. him and that it would be on Republicans said Democrats’ protections or change stan-
“Although the noose is now the South, had been there for Before the race at Talladega his mind until the day he died. unwillingness to begin debate dards for prosecution.

Link to Extremist Group Alleged


In Charges Related to Protests
FROM LEFT: FBI/AP; SANTA CRUZ SHERIFF’S OFFICE/AP

BY RACHAEL LEVY with law enforcement.


President Trump, Attorney
Four men the government General William Barr and oth-
says are part of a loose-knit ers on the right blamed occa-
group of right-wing antigov- sional violence during the na-
ernment extremists will ap- tionwide demonstrations on
pear in federal court this week left-wing elements, primarily
to answer charges based on antifa—short for “antifascist,”
their alleged actions targeting an activist movement that has
law enforcement at protests at times violently confronted
after George Floyd’s killing. entities they say are authori-
Steven Carrillo, an Air Force tarian, racist or anti-Semitic.
sergeant, is expected to plead None of the charged incidents
not guilty to federal charges of Steven Carrillo has been publicly attributed to
murder and attempted murder that group. Mr. Barr later ac- May 29 video provided by the FBI shows someone in a van firing outside a courthouse in Oakland, Calif.
of two Federal Protective Ser- May 30, and for allegedly pos- knowledged that the boogaloo
vice officers outside a court- sessing Molotov cocktails, face group has played a role in at the George Washington Uni- luau.” They also use hashtags ask that people refrain from a
house in Oakland, Calif., on arraignments Wednesday in some of the violence. versity Program on Extremism. such as #BigIgloo. Their name rush to judgment,” he said.
May 29. According to his law- federal district court. The Anti-Defamation One shared belief, experts stems from an inside joke The three men in Nevada—
yer, he will enter the plea from The Justice Department League tracked multiple in- who follow violent extremism about the 1984 breakdancing Stephen T. Parshall, aka
the Santa Rita jail, where he is says the four men have ties to stances of boogaloo actions at say, is that they are preparing film “Breakin’ 2: Electric “Kiwi,” 35, Andrew Lynam, 23,
being held. Court cases are a movement that calls itself the protests, but found no for a coming American civil Boogaloo,” researchers said. and William L. Loomis, 40—al-
taking place over videoconfer- the boogaloo. The movement’s similar evidence of antifa, said war, either with the state or Mr. Carrillo’s attorney, Jef- legedly were bent on using fire
ence due to the pandemic. adherents, mostly young white Oren Segal, vice president for with the left; the white su- frey Stotter, declined to com- and explosives to destroy U.S.
At the time of his alleged males who often call them- ADL’s Center on Extremism. premacists among them view ment on the defendant’s alleged government property and a
crimes, demonstrators had selves “boogaloo bois” (pro- Other researchers have backed it as a race war. connection to the boogaloo ide- public utility facility, accord-
gathered nearby to protest Mr. nounced “boys”), grew their up that analysis. “It’s people who want to mo- ology. But he expressed con- ing to a Justice Department
Floyd’s May 25 death at the ranks in recent years on social The boogaloo appears to bilize to violence,” said Clint cern about the group. statement, which also said
hands of Minneapolis police, media, mainly Facebook, ac- have no leader or central Watts, a fellow at the Foreign “We basically have an ex- they “possessed Molotov cock-
according to the Justice De- cording to researchers who structure, but its followers of- Policy Research Institute and tremist ideology and group that tails to throw at police in
partment. Mr. Carrillo also track extremist groups. Some ten are white supremacists former FBI agent who served on is based not overseas and not downtown Las Vegas.”
faces state charges for alleg- used the protests as an oppor- who hold antigovernment a Joint Terrorism Task Force. in some foreign land but here An attorney for Mr. Par-
edly murdering a Santa Cruz tunity for violence. views, believe strongly in gun “This is their excuse to do it.” in the United States,” he said. shall, Robert Draskovich, said
County sheriff’s deputy several Sarah Pollack, a spokes- rights and traffic in conspiracy Reopening businesses in the He added that the accusa- his client will plead not guilty.
days later as authorities closed woman for Facebook, said the theories, researchers say. early months of the pandemic tions against Mr. Carrillo are Mr. Parshall denies any ties to
in on him after a manhunt. company recently removed ac- Some of the boogaloo’s had been a rallying cry for the inconsistent with his character right-wing groups, including
In Las Vegas, three men who counts for Mr. Carrillo and an more libertarian elements have boogaloo, with many showing and history. He said Mr. Car- the boogaloo, the lawyer said.
were indicted by a federal alleged accomplice, as well as stood in solidarity with Black up at demonstrations over the rillo, 32 years old, was still A public defender repre-
grand jury last week for alleg- for several boogaloo-con- Lives Matter protesters, and coronavirus lockdown—often shaken by his wife’s 2018 sui- senting Mr. Lynam declined to
edly conspiring to destroy gov- nected groups that have sup- have taken offense at being armed and wearing floral Ha- cide, had suffered a traumatic comment. An attorney for Mr.
ernment and private property ported violence. She added lumped in with white suprema- waiian shirts, which represent brain injury, and that he is Loomis didn’t respond to a re-
during protests in that city on that the company is working cists, said J.J. MacNab, a fellow a distortion of boogaloo as “big sorry for what happened. “I’d quest for comment.
A4 | Wednesday, June 24, 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 ****** THE WALL STREET JOURNAL.

U.S. NEWS

Primary Voters Encounter Fewer Issues


BY ALEXA CORSE recent voting problems in man had the lead in early re- nett in the GOP primary runoff there was higher turnout than ers, while observing social
Georgia and other states, in- turns, while Rep. Alexandria Oc- for the House seat vacated by expected and that he was add- distancing, said Nore Ghiba-
States holding primaries cluding many more requests asio-Cortez (D., N.Y.) cruised to current White House chief of ing more stations to speed the udy, county clerk spokesman.
Tuesday faced some com- for absentee ballots than in victory against challenger Mi- staff Mark Meadows. Mr. process. A dramatic scene unfolded
plaints from voters, but noth- previous elections and diffi- chelle Caruso-Carbrera, a for- Meadows and President Trump Multiple Kentucky counties late Tuesday when the doors
ing approaching the kind of culty finding poll workers to mer CNBC journalist. In another had both endorsed Ms. Bennett opened just one in-person vot- were locked to the exposition
logistical problems seen on re- staff in-person voting stations race, Rep. Carolyn Maloney (D., for the seat. Mr. Cawthorn ing site. A group of Kentucky center at 6 p.m., when polls
cent voting days in states such because of coronavirus fears. N.Y.) was in a tight contest with turns 25 this summer, the mini- Republicans and Democrats closed. A large group of peo-
as Georgia and Wisconsin. In the Kentucky Senate hotel executive Suraj Patel. mum age to serve in the House. tried to force the state’s most ple stuck outside were ulti-
While relatively limited, is- contest, former Marine fighter Virginia also held primaries Rep. Thomas Massie (R., populous counties to open mately let in after chanting
sues encountered by some pilot Amy McGrath, the Demo- for U.S. Senate and House Ky.) easily won a primary more, but they lost their bid and banging the doors. Mr.
voters—including long waits cratic Party’s handpicked cen- races, and North Carolina, against lawyer Todd Mc- in federal court last week. Ghibaudy said that the doors
in Lexington, Ky., and delayed trist candidate, was hoping to South Carolina and Mississippi Murtry after drawing national In Louisville, voting-rights were reopened to allow any-
absentee ballots in New fend off Charles Booker, a pro- had primary runoff elections. attention—and barbs from Mr. groups had criticized the deci- one who was at the site to
York—highlighted the contin- gressive member of the state In one closely watched Vir- Trump—for forcing House sion by officials in Jefferson vote and then locked at 6:30
ued challenges of administer- House. The winner will com- ginia race, Dr. Cameron Webb, lawmakers to return to Wash- County—the state’s most popu- p.m. due to a judge’s order.
ing elections during the coro- pete in November against Re- a former adviser to the Obama ington to vote on an economic lous county with a large popu- Kentucky added new voting
navirus pandemic. The heavy publican Senate Majority administration, won by a land- stimulus package. lation of African-American vot- options to reduce the need for
use of mail-in voting also Leader Mitch McConnell. slide in a crowded field in the Voters reported waiting up ers—to open only one in-person voters to turn out in person.
meant delays in determining New York’s primaries fea- state’s fifth district. Dr. Webb to two hours to cast ballots at polling location, compared with A deal between Democratic
the winner of some key races. tured several marquee races, in- will face Republican nominee the only in-person voting sta- the usual 231 voting sites. Gov. Andy Beshear and Secre-
Kentucky and New York had cluding one that pit House For- Bob Good, who defeated in- tion in Lexington at University Jefferson County election tary of State Michael Adams, a
presidential primaries on the eign Affairs Committee cumbent Rep. Denver Riggle- of Kentucky’s Kroger Field officials believed the voting Republican, allowed any voter to
ballot, along with tightly con- Chairman Eliot Engel against man in a GOP nominating con- football stadium, according to station, at the Kentucky Expo- cast an absentee ballot for the
tested Senate and House pri- fellow Democrat Jamaal Bow- vention this month. local news reports. Fayette sition Center on the state fair- primary, and the state added
maries. They are dealing with man, who founded a middle In North Carolina, Madison County Clerk Don Blevins said grounds, would be large early in-person voting starting
challenges that contributed to school in the Bronx. Mr. Bow- Cawthorn defeated Lynda Ben- late Tuesday morning that enough to accommodate vot- two weeks before primary day.

Michigan’s Hard Times Cloud Election Outlook President


BY JOHN MCCORMICK Focuses
Bad news has piled up in
Muskegon County along Lake
Michigan’s eastern shore in re-
On Border,
cent months, from canceled
summer festivals and tour-
boat visits to layoffs at manu-
Statues
facturers such as Northern BY ALEX LEARY
Machine Tool Co.
Steve Olsen, that company’s PHOENIX—President Trump
co-owner and president, said delivered a fiery speech to a
he has had to lay off the major- full house Tuesday, raising
ity of his 33 employees since fears about voter fraud and
the start of the coronavirus denouncing protesters for try-
pandemic that has driven the ing to topple statues as he
KEITH KING FOR THE WALL STREET JOURNAL (2)

county’s unemployment rate to sought a boost in a state that


29.3% from 3.8% before the cri- has trended more Democratic
sis hit in March. He figures it and faces concerns about his
will be at least a year until the standing in other states that
family-owned business is back drove his 2016 victory.
to that level of staffing. Coming off a smaller-than-
“It’s been pretty devastat- expected Saturday rally in
ing,” said Mr. Olsen, whose Oklahoma, Mr. Trump on Tues-
company supplies the automo- day inspected the U.S.-Mexico
tive and aerospace industries, border wall and addressed
like many others in the area. young conservatives at a
The impact of both the pan- packed megachurch in Phoenix.
demic and the economic A farmers market in Muskegon, Mich. The state has the third-highest jobless rate and has seen over 6,000 coronavirus-related deaths. “The radical left, they hate
downturn that followed lock- our history,” Mr. Trump said,
downs is widespread in Michi- Battleground-state Unemployment rate, 2000–20 delivering a speech that
gan, a Wall Street Journal unemployment rates, May echoed his law-and-order
analysis of unemployment and 30% theme from Saturday’s rally in
death data in more than 3,100 Mich. 21.2% Tulsa, Okla. “They hate our
U.S. counties shows. 25 values and they hate every-
Almost a quarter of Michi- Fla. 14.5 thing we prize as Americans.”
gan’s counties are among the 20 Muskegon Co., Mich. During a stop in San Luis
top 20% nationally for both in- earlier Tuesday to see the bor-
Pa. 13.1
creases in unemployment from 15 der wall, Mr. Trump said he
a year earlier and deaths per was making good on his 2016
1,000 residents linked to N.C. 12.9 campaign pledge, though much
10
Covid-19. Only Massachusetts of what has been done is re-
and New Jersey saw a greater Wis. 12.0 5 placing existing structures.
proportion of counties in both He said he would impose a
U.S. Avg: U.S. avg.
categories. Ariz. 8.9 0 harsh crackdown on people try-
Economic fallout from the 13.3% ing to destroy historical statues
2000 '05 '10 '15 '20
pandemic makes for a volatile Note: National rate is seasonally adjusted, county rate is not. and monuments. “These aren’t
political situation in Michigan, Sources: Bureau of Labor Statistics; Federal Reserve Bank of St. Louis protesters. These are agita-
a key battleground that Presi- tors,” he said, returning to the
dent Trump won in 2016 by states where the tourism in- unemployment and Covid-19- theme again at the rally.
fewer than 11,000 votes, or 0.22 dustry has been crushed by the related death rates include In- Standing at the towering
percentage point, the narrow- pandemic. Among the nation’s diana, Ohio, New Hampshire, steel structure under heat sur-
est outcome in the nation. top 50 counties for unemploy- Alabama, Mississippi, Pennsyl- passing 100 degrees, the presi-
Muskegon was among the ment in April—the most recent vania and New York. dent said the wall is “unclimb-
counties in the state decided by data available at the local Muskegon County, with a able,” adding, “Maybe
less than 2 percentage points, level—32 are in Michigan. population of more than somebody can get an extraor-
with Democrat Hillary Clinton The state also has recorded 173,000, recorded 43 Covid-19- dinarily long ladder.”
narrowly winning it in 2016. the eighth-highest rate of related deaths as of June 17. Inside Dream City Church in
The RealClearPolitics aver- deaths per 1,000 residents tied Stephen Gawron, mayor of Phoenix, about 3,000 people
age of state polls has the pre- to Covid-19, with more than the county seat of Muskegon, sat shoulder-to-shoulder. The
sumptive Democratic nominee, 6,000 fatalities so far. In re- said his city typically wel- Kellie and Patrick Lemke with their children in Muskegon. crowd roared when Mr. Trump
former Vice President Joe Bi- sponse, Democratic Gov. comes 800,000 to one million They have both lost their jobs and plan to move in with family. called the coronavirus “kung
den, leading Mr. Trump by 8 Gretchen Whitmer imposed people to its downtown from flu,” a slur critics say is racist.
percentage points in Michigan. some of the most stringent so- May through mid-September, done,” he said. unemployment assistance, food Very few people wore masks.
With less than five months cial-distancing requirements but local businesses won’t Kellie and Patrick Lemke stamps and the extra $600-a- Mr. Trump also went on an
before the election and econo- in the country. benefit from those crowds this have both lost their jobs. Be- week benefit for unemployed extended riff about mail-in
mists predicting a prolonged “It’s Depression-level unem- summer, because downtown fore mid-March, she was workers, a benefit that is set to ballots, alleging fraud and
downturn, voters by November ployment,” said Patrick Ander- festivals and lake cruises have working in a medical office as expire at the end of July. An raising that idea that ballots
may turn to whichever candi- son, chief executive of Ander- been canceled. part of a training program and extension of the benefit is be- could be printed by “foreign
date they believe can best pull son Economic Group, a Mr. Gawron, who has spent he was a temporary worker at ing debated as Congress con- powers.” There is no evidence
the economy out of decline consulting firm based in East most of his life in the city, said a manufacturing plant. siders a new stimulus package. of large-scale fraud with mail-
while addressing concerns Lansing. “The economy is going he remains optimistic because “It’s been an emotional To save money, Ms. Lemke in ballots, and some states are
about the spread of the virus. to get better, but we are talking he has watched his community roller coaster,” said Ms. Lemke, said her family plans to move turning to them as a safer al-
Michigan had the nation’s about a very deep hole.” get through hard economic a mother of five in her late 20s. out of their $875-a-month ternative as the coronavirus
third-highest unemployment Other states with the larg- times in the past. “We will “It’s going to take a while for rental property at the end of spreads. “We can safely go to
rate in May—21.2%—behind est proportions of counties move beyond this because his- us to get back on our feet.” September and in with family the polls and vote during
only Nevada and Hawaii, two ranked in the top 20% for both torically that is what we have The family is getting by with members. Covid-19,” Mr. Trump said.

Prosecutor to Describe Pressure to Go Easy on Trump Ally Stone


BY ARUNA VISWANATHA A jury convicted Mr. Stone in come under scrutiny this week president. Mr. Trump had cutors in the case to…water in two areas of enforcement. Be-
AND BRENT KENDALL November of lying to Congress for Attorney General William tweeted that the initial recom- down and in some cases outright cause marijuana commerce is
and witness tampering, and Barr’s abrupt Friday night dis- mendation was “horrible,” hours distort the events that trans- unpopular with Mr. Barr, the de-
A prosecutor in the criminal prosecutors who had handled missal of the U.S. attorney in before it was reversed. pired in his trial and the crimi- partment forced companies in
case against former Trump ad- the case initially recommended Manhattan, Geoffrey Berman. “The attorney general deter- nal conduct that gave rise to his 10 proposed mergers in the can-
viser Roger Stone said supervi- he serve more than seven years The House Judiciary panel’s mined the high sentence pro- conviction,” Mr. Zelinsky said. nabis industry to comply with
sors repeatedly told him Mr. behind bars. A day later, the de- hearing, “Political Interference posed by the line prosecutors in The prosecutor said he wasn’t unduly lengthy and expensive
Stone would receive special partment reversed itself and and Threats to Prosecutorial In- the Roger Stone case was exces- himself involved in discussions government requests for docu-
treatment “because of his rela- asked for less time. Mr. Zelin- dependence,” is expected to fea- sive and inconsistent with simi- with political leadership about ments and information, Mr.
tionship with the president,” sky and the three other prose- ture testimony Wednesday from lar cases,” the spokeswoman, the case but said the motiva- Elias alleged.
according to prepared remarks cutors withdrew from the case both Mr. Zelinsky and John Kerri Kupec, said, adding that tions were relayed to him by He also alleged the depart-
posted Tuesday before a House as a result. Elias, a 14-year Justice Depart- Mr. Barr had directed that the other supervisors. “I was told ment had improper motivations
hearing. Mr. Stone was ultimately sen- ment official now serving in the sentencing be left to the discre- that…the U.S. Attorney’s sen- for investigating four auto mak-
The prosecutor, Aaron Zelin- tenced to around three years in antitrust division. tion of the judge. tencing instructions to us were ers that had reached a tailpipe-
sky, said the U.S. attorney in prison. However, the judge criti- The chairman of the panel, In a 13-page statement, Mr. based on political consider- emissions deal last summer with
Washington, D.C., was “receiving cized what she described as the New York Democratic Rep. Jerr- Zelinsky, who remains employed ations. I was also told that the the state of California.
heavy pressure from the highest Justice Department’s “unprece- old Nadler, has said he expected at the Justice Department and is acting U.S. Attorney was giving “The Department strongly
levels” of the department to “cut dented” turnabout and said Mr. Berman to testify before the a federal prosecutor in Mary- Stone such unprecedentedly fa- disagrees with Mr. Elias’s claim
Stone a break.” In an episode prosecutors were right to en- committee at a later date. land, described the handling of vorable treatment because he that the Antitrust Division
that roiled the agency, senior of- dorse a sentence within the A Justice Department spokes- the sentencing recommendation was ‘afraid of the President,’ ” acted inappropriately in any in-
ficials earlier this year ordered guidelines, as they do in the woman defended the agency’s as “unusual and unprecedented.” Mr. Zelinsky said. vestigation,” a spokeswoman
prosecutors to seek a more le- most criminal cases. decision regarding Mr. Stone’s “What I saw was the Depart- On the antitrust front, Mr. said. “Mr. Elias does not pres-
nient punishment than sentenc- The remarks were posted as sentence as not driven by re- ment of Justice exerting signifi- Elias’s written testimony alleges ent any evidence in support of
ing guidelines suggested. the Justice Department has quests for leniency from the cant pressure on the line prose- improper political interference his allegations.”
THE WALL STREET JOURNAL. Wednesday, June 24, 2020 | A5

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A6 | Wednesday, June 24, 2020 * ***** THE WALL STREET JOURNAL.

U.S. NEWS

Threats on Public-Health Officials Rise Cellphone


Controls
BY JEFF HORWITZ

Public-health officials around


the country are facing intimi-
Urged for
dation both online and off.
Opponents of social-distanc-
ing rules are using Facebook
Agencies
Inc. to organize and broadcast BY BYRON TAU
protests at the homes of
health officials, sometimes us- WASHINGTON—A national
ing violent rhetoric, in cam- trade group representing the
paigns that health authorities digital advertising industry
say amount to harassment. has advised member compa-
Some of the campaigns nies to put stricter controls on
against health officials also ap- consumer mobile-phone loca-
pear to violate the social-media tion data they provide to gov-
giant’s rules against spreading ernment units such as public-
coronavirus misinformation, by health authorities and law-en-
encouraging people to defy forcement and intelligence
public-health directives on agencies.
mask use that are based on The Network Advertising
widely accepted scientific think- Initiative on Tuesday released
ing on combating the virus. a new set of best-practices
“Hey public health officers recommendations designed to
JOHN G. MABANGLO/EPA/SHUTTERSTOCK

you’re in our cross hairs,” a address the growing use of


group of reopening advocates consumer-location data by
calling themselves the Freedom government entities, advising
Angels wrote recently. In a live advertising companies to pre-
video, one of its leaders, Denise vent governments from trying
Aguilar, demanded the repeal to identify individuals in such
of mask-wearing mandates and data sets as a condition of
called public-health officers providing the data.
“public enemy number one.” NAI, which has more than
Facebook told The Wall 100 member companies in the
Street Journal that live-stream- The Freedom Angels demonstrated for a complete reopening of California outside the capitol building in Sacramento on May 7. digital-advertising industry,
ing protests held at health offi- also recommended that com-
cers’ homes violates its privacy gels or similar groups that ad- death threats started last public except children under more than 4,000 members. panies that collect or sell loca-
rules and removed three such vocated for protesting in ways month, during a Covid-19 Face- age 2 and those who have Neither Dr. Acton nor Dr. tion data drawn from mobile
posts from the group. Face- that violated health orders. book Live public briefing when trouble breathing. Quick could be reached to devices should provide more
book’s rules ban harassment “Certainly saying that so- someone very casually sug- In Orange County, Calif., comment. robust consumer disclosure
and doxxing, the practice of cial distancing is not effective gested that I should be shot.” protesters used Facebook to Kat DeBurgh, head of the about what their clients intend
putting people’s personal infor- to help limit the spread of cor- In the debate about reopen- target the county’s chief California Public Health Offi- to do with the data and dis-
mation on the internet so they onavirus, we do classify that ing the U.S., masks have health officer, Nichole Quick, cers Association, said social- close if law-enforcement or
can be harassed by others. as harmful misinformation and emerged as a flashpoint, with after her department issued a media fueled harassment of other government entities are
Along with other members we take that down,” Facebook some saying mandates either a requirement for residents to public-health officers had con- buying or using the data.
of the group, she has been founder and Chief Executive manifestation of the nanny wear face coverings outside tributed to the burnout of pub- “Ad tech companies have
live-streaming protests out- Mark Zuckerberg said in an their homes when social dis- lic-health officers already data that can be a powerful re-
side public-health officers’ April interview. tancing wasn’t possible. Dr. working long hours during the source for the public good if
homes to their 22,000 follow- Some of the central argu- Quick resigned this month, pandemic. Seven of California’s they follow this set of best
ers. The group has said it is ments of mask opponents—
‘The death threats and the county backed down, 61 public-health officers have practices for consumer pri-
committed to keeping its pro- such as claims that masks started last month,’ recommending face coverings stepped down since the begin- vacy,” Leigh Freund, NAI pres-
tests peaceful. don’t offer significant protec- instead of requiring them. ning of the crisis, she said, one ident and chief executive, said
The company hasn’t taken tion from the virus or lead to
one Los Angeles In that instance, the protest- directly because of protests tar- in a written statement.
action on other posts in which potentially fatal oxygen depri- County leader says. ers used Facebook to share pic- geting her personally. Another NAI’s new guidelines are
the group seeks to recruit pro- vation—rely on information tures of a banner depicting Dr. is under around-the-clock pro- only advisory, however they
testers for future events or deemed false by Facebook fact Quick with a Hitler mustache tection from the county sheriff represent one of the first in-
promotes claims that wearing checkers. While that designa- in front of a swastika and because of credible threats. dustry efforts to grapple with
masks can cause oxygen depri- tion slows the spread of the state or a slippery slope to- spread allegations that her The outpouring of anger to- the privacy implications of
vation. In April, as reopen pro- original post on Facebook, it ward increasingly totalitarian mother had been photographed ward public-health officers has government acquisition of
tests began in Michigan, Face- doesn’t affect nearly identical conditions. outdoors without a mask. caught the profession by sur- consumer-location data drawn
book pledged it would remove claims in reopen protesters’ There is no evidence that Ohio’s top public-health of- prise, said Lori Freeman, chief from cellphones. The data is
posts that encouraged people new posts and live videos. the masks are harmful for ficial, Amy Acton, also re- executive of the National As- often taken from ordinary cell-
to attend protests in violation “An increasing number of adults, and scientists have re- signed this month after armed sociation of County and City phone apps such as weather
of public-health orders or pro- public-health officials, across ported such measures are es- protesters showed up at her Health Officials. “This has tra- and games, for which consum-
vided false information about the country—myself included— sential for society to reopen house to register their displea- ditionally been a very trusted ers have explicitly allowed
coronavirus precautions. are threatened with violence without a spike in disease and sure with her role in the community partner role,” she their location to be logged.
A spokeswoman didn’t re- on a regular basis,” said Bar- deaths. The U.S. Centers for state’s efforts to stop the said. Public-health officers are The Wall Street Journal has
spond to questions about why bara Ferrer, director of Los Disease Control and Preven- spread of the coronavirus. trying to take criticism of vi- previously reported that such
Facebook wasn’t taking down Angeles County’s public-health tion says everyone should Facebook groups explicitly de- rus restrictions into account, data has long been of interest
posts from the Freedom An- department. “In my case, the wear cloth face coverings in voted to her firing gathered she said. to U.S. intelligence agencies
surveilling targets abroad. In
recent years, the U.S. govern-

Mandate to Disclose Hospital Rates Upheld


ment has grown interested in
such data for law-enforcement
purposes. The Journal re-
ported this year that both the
BY STEPHANIE ARMOUR had argued that the rule com- AHA’s senior vice president, self-serving lawsuit designed to a day if they don’t disclose ne- Department of Homeland Se-
pelling the hospitals to publish Melinda Hatton, said the group keep patients in the dark,” gotiated rates. curity and the Internal Reve-
The American Hospital Asso- their negotiated rates with in- plans to appeal. tweeted Centers for Medicare The price-disclosure require- nue Service began buying such
ciation lost its legal bid to stop surers violates the First “The proposal does nothing and Medicaid Services Admin- ments would cover the more data in 2017 from a vendor
the Trump administration from Amendment and goes beyond to help patients understand istrator Seema Verma. CMS than 6,000 hospitals that ac- called Venntel Inc.
requiring hospitals to disclose the statutory intent of the Af- their out-of-pocket costs,” she promulgated the rule. cept Medicare. In the case of the IRS, the
secret rates they negotiate with fordable Care Act. said. “It also imposes signifi- The rule could upend the $1 The initiative represents the agency’s criminal investiga-
insurance companies, a victory President Trump welcomed cant burdens on hospitals at a trillion hospital industry be- Trump administration’s grow- tions division was trying to
for one of President Trump’s the decision, tweeting on Tues- time when resources are cause it unveils rates long ing effort to shift away from use the tool to identify and
central health-policy initiatives. day: “BIG VICTORY for pa- stretched thin and need to be guarded as trade secrets. rolling back the Affordable track individual suspects.
The ruling Tuesday from tients—Federal court UP- devoted to patient care.” It requires hospitals to pub- Care Act and put its own stamp After the outbreak of
Judge Carl Nichols with the HOLDS hospital price She said hospitals and licize the rates they negotiate on health care instead. Central Covid-19, government interest
U.S. District Court for the Dis- transparency. Patients deserve health systems have supported with individual insurers for all to that strategy is the notion in mobile-phone location infor-
trict of Columbia was a sum- to know the price of care BE- efforts to provide patients with services, including drugs, sup- that more price transparency mation surged, as public health
mary judgment, meaning the FORE they enter the hospital. information about the costs of plies, facility fees and care by will inject greater competition authorities looked for ways to
case didn’t go to trial although Because of my action, they their medical care, but this rule doctors who work for the facil- into the market and lower do contract tracing on those ex-
it can be appealed. He was ap- will. This may very well be big- isn’t the right way to achieve ity. It is scheduled to take ef- costs. posed to the virus and measure
pointed by Mr. Trump. ger than healthcare itself. Con- the goal. fect in January 2021, with hos- —Jess Bravin how effectively social-distanc-
The hospital trade group gratulations America!” “This was a disingenuous pitals facing fines of up to $300 contributed to this article. ing orders were being followed.

States See cord number of cases Tuesday.


The 3,591 new Covid-19 cases
bring the state’s total to more
make it clear.” Later on Air
Force One en route to Phoenix
with the president, Ms.

Virus Cases than 58,000, according to data


from the Department of Health
Services.
McEnany said he “was making
a serious point but he was us-
ing sarcasm to do that.”

Hit Records The state became one of the


country’s largest coronavirus
hot spots weeks after Gov.
The Trump administration
strategy has largely put the
burden for testing on states.
Doug Ducey, a Republican, re- Most testing decisions are
Continued from Page One moved stay-at-home orders. handled at the state and local
Citing the rise in cases and Last week, Mr. Ducey reversed level. The administration said
the coming July Fourth week- course to allow local govern- its role will be to provide
end, Mr. Abbott said he would ments to mandate use of swabs and tubes.
expand “the ability of mayors masks in public. The Centers for Disease Con-
and county judges to impose New York has reached its trol and Prevention and the De-
restrictions on outdoor gath- lowest percentage of positive partment of Health and Human
erings of over 100 people,” Covid-19 test results since Services have reviewed the
KEVIN DIETSCH/PRESS POOL

which previously applied to March, but health officials are state plans on testing and are
gatherings over 500. closely monitoring hot spots providing technical assistance
He directed the Texas where higher rates of infection and support, HHS officials said.
Health and Human Services persist, including some lower- Dr. Fauci said one confusing
Commission to enact emer- income neighborhoods in New issue is the virus’s range—a-
gency rules that would in- York City. The city moved this symptomatic to mild in some
crease health and safety pro- week into phase two of its re- people, fatal in others—so that
tocols at child-care centers, opening plan, allowing work- A worker disinfected a table Tuesday before top U.S. virus expert Dr. Anthony Fauci testified to Congress. some young people in particu-
after data showed that those ers to return to offices and lar tend to treat it casually.
centers are a source of trans- outdoor dining to resume. tion’s leading infectious-dis- Adm. Brett Giroir, who is public-health doctors after Mr. “You can spread the infec-
mission. In neighboring New Jersey, ease expert, and other U.S. coordinating coronavirus test- Trump said at a rally in Tulsa, tion even if you don’t get sick,
Mr. Abbott and Florida Gov. Gov. Phil Murphy, a Democrat, health officials defended the ing, said he expected the U.S. Okla., on Saturday that he and you can infect someone
Ron DeSantis, both Republi- said that amusement and wa- government’s response to the to be able to carry out 40 mil- called for lower levels of test- who infects someone who in-
cans, outlined plans to step up ter parks in the hard-hit state pandemic Tuesday, saying lion to 50 million tests ing because higher numbers of fects someone very vulnerable,
enforcement of social-distanc- will be allowed to open at 50% they planned to increase test- monthly by fall. So far, 28 mil- infections look bad. White such as your grandmother,” he
ing guidelines by revoking or capacity. Staff and guests will ing over the summer and lion tests total have been House press secretary Kayleigh said.
suspending liquor licenses of be required to wear face cov- hadn’t been told by President done, now averaging about McEnany said at a briefing Federal health officials said
establishments violating lim- erings. Playgrounds in the Trump to slow down. 500,000 day. Public-health ex- Monday that the GOP president they were looking ahead to fall,
its. Florida, which has re- state will open on July 2. “None of us have ever been perts said the U.S. must con- was joking and didn’t give his when cases are expected to in-
ported more than 103,000 Concerns over the coronavi- told to slow down on testing,” duct at least six million tests a staff such an order. crease.
cases of coronavirus and more rus prompted the University of Dr. Fauci said in testimony be- week if the country is to re- Mr. Trump, asked Tuesday “CDC has begun to prepare
than 3,200 deaths, has seen a Michigan on Tuesday to pull fore a congressional commit- open safely. outside the White House for the months ahead,” said
recent increase in coronavirus out as host of a planned presi- tee. “It’s the opposite. We’re The government’s approach whether he was kidding with CDC Director Robert Redfield,
cases among younger people. dential debate in October. going to be doing more testing to testing has come under scru- the remark, said: “I don’t kid. adding that it could challenge
Arizona also reported a re- Dr. Anthony Fauci, the na- and not less.” tiny from House Democrats and Let me just tell you. Let me the health-care system.
THE WALL STREET JOURNAL. Wednesday, June 24, 2020 | A7

WORLD NEWS
Cases Climb as European Capitals Open
Public-health officials
worry about a second
wave of infections;
Berlin reimposes curbs
BY BOJAN PANCEVSKI

BERLIN—A rebound in
Covid-19 cases in Berlin and
elsewhere in Europe is fueling
concerns among public-health
authorities about a second
wave of infections following
the lifting of lockdowns across
the continent.
In Berlin, daily new corona-
virus cases shot back up to
levels last seen in April after
weeks of steady fall. The Ber-
lin state government on Tues-
day said it would start impos-
ing fines for violations of a
mask-wearing requirement

KAY NIETFELD/DPA/ASSOCIATED PRESS


that has been in place for
weeks but not enforced.
In Portugal, authorities
blamed a surge in new infec-
tions on parties and other so-
cial events, and the capital,
Lisbon, on Monday banned all
gatherings of more than 10
people and ordered bars and
shops to close at 8 p.m.
The rebounds in the two High-school graduates and relatives kept their distance from other families during a graduation ceremony on Tuesday in Berlin, which has seen a rise in coronavirus infections.
capitals, while relatively small
and not yet visible across Eu- cerning for scientists because it Andreas Geisel, Berlin’s in- Confirmed daily Covid-19 Some scientists think the public gatherings, as other
rope, could be cause for con- appears relatively spread out terior minister, in a broadcast cases in Berlin increase in cases needn’t lead German state governments
cern in large U.S. cities such as across the city, which could interview blamed the rise in to a devastating second wave have done in recent weeks.
300
New York that are slowly re- make it harder to contain. infections on “testosterone- of infections, but shows that Germany’s main epidemiol-
opening after being hit hard Scientists think the in- driven young men,” a refer- cases can rise again when re- ogy institute, the Robert Koch
by the virus. crease could have several fac- ence to the proliferation of il- strictions are lifted, even after Institut, said on Tuesday that
Berlin was never a corona- tors, including a rise in illegal legal rave parties in the city’s falling for weeks, forcing au- the country’s closely watched
virus hot spot and infections parties in recent weeks, large parks after dark since the clo- 200 thorities to temporarily reim- coronavirus reproduction
are rising from a very low and regular weekend protests sure of Berlin’s clubs in March. pose some measures to keep number—a measure of how
base, making it hard to discern where police have struggled to Berlin Mayor Michael Mül- flare-ups in check. fast it spreads in the popula-
whether the surge is part of a enforce social-distancing rules, ler said anyone caught not Governments and societies tion—had risen to 2.88 from
sustained trend or a tempo- and more isolated outbreaks in wearing a mask in designated will have to get used to such below one, largely because of
rary blip. Daily new cases in religious and migrant commu- areas such as shops and com- 100 back-and-forth and should the meatpacking-plant cluster.
Berlin hit a post-lockdown nities. muter trains would be fined continue to practice and en- Lothar Wieler, president of
peak of 130 on Friday after One rally in support of between €50 and €500 ($57 to force basic prevention rules if the institute, said continued
falling into single digits in Black Lives Matter drew criti- $570). new lockdowns are to be testing, watching for the ap-
early May. cism after 15,000 participants, “There are residential areas avoided, said Jonas Schmidt- pearance of Covid-19 symp-
Authorities in western Ger- many of them not wearing where infection numbers are 0 Chanasit, a professor of virol- toms, maintaining physical
many put the town of Güter- masks and standing shoulder rising very quickly if residents March April May June ogy at Hamburg University. distance and wearing masks in
sloh and a neighboring county to shoulder, filled the city’s Al- are careless and don’t follow Source: State Office for Health and Social Affairs This could be a challenge some settings were key to
under a new lockdown on exanderplatz square on June 6. the rules,” he said. “In this re- for authorities that have come avoiding a second wave of in-
Tuesday after some 1,500 peo- “We must assume that opening phase, we need to the city are under a loosely under economic and political fections.
ple connected to a local meat- gatherings of people are pos- show responsibility, not just enforced quarantine after pressure to roll back confine- “I am confident that we can
processing plant tested posi- ing a grave potential risk for for ourselves but for our more than 100 people tested ment measures. On Tuesday, avoid a second wave if we use
tive for the virus. Covid-19 infections,” a spokes- neighbors.” positive for coronavirus. The while beginning enforcement the tools that we have already
While Berlin’s renewed out- man for the health department At least two residential lockdown prompted protests of mask-wearing, Berlin also mastered, even without ther-
break is much smaller, it is con- of the Berlin government said. blocks in several districts of from residents. lifted some constraints on apy or a vaccine,” he said.

French Are Slow to Adopt


New Covid-Tracking App
BY SAM SCHECHNER

PARIS—France was one of


the first large Western coun-
tries out of the gate in the
scramble to build mobile ap-
plications to help track expo-
sure to the new coronavirus. It
is off to a slow start.
With other countries now
following suit, its struggle
casts a shadow on the poten-
tial utility of such apps to help
slow the spread.
StopCovid, as France’s app
is known, has been activated
1.8 million times since June 2,
French officials said on Tues-
day, corresponding roughly to
2.7% of the population, one of
LUDOVIC MARIN/AGENCE FRANCE-PRESSE/GETTY IMAGES

the lowest rates in Europe. The


French app has led to the noti-
fication of just 14 people that
they may have been exposed to
the virus, the officials said.
While it is still early,
France’s experience provides a
cautionary tale for countries
looking to adopt contact-trac-
ing apps. Part of the problem,
officials say, is that after
months of confinement, peo-
ple in areas where the virus is
declining may have less incen-
american beauty
tive to avail themselves of Only 14 people have been notified by the French StopCovid app enoch bolles
tools that could help protect that they may have been exposed to the coronavirus.
against future waves of it.
“The epidemic is declining population, in just one week af- use of its app after complaints American artist. Cover illustration.
faster than expected, and the ter its launch—among the fast- from privacy regulators, who Early pin-up. This original oil on canvas
fears attached to it are reced- est takeup rates among big Eu- said the low incidence of the was painted by American illustrator
ing even faster,” explained ropean countries so far. German disease no longer made the app Enoch Bolles. One of the earliest and
Cédric O, France’s junior min- officials say they are happy worth the encroachment on in- most successful painters of pin-up girls,
ister for digital affairs, noting with the figures, though they dividual privacy it required. Bolles was celebrated for his vibrant Art
that tens of thousands of peo- add that it is too soon after the In Latvia, where coronavi- Deco beauties. Featuring a scantily clad
ple a day have recently started launch to determine how effec- rus cases have receded, the blonde thumbing through her little black
uninstalling StopCovid. tively the system is operating. Apturi Covid app has reached book, this work was created for the cover
In light of StopCovid’s low Moreover, while one study nearly 80,000 downloads, ac- of the popular pulp magazine Pep Stories.
numbers, French officials say said it would take adoption by counting for between 4% and Signed (lower right). Circa 1930. Canvas:
they aim to study how people more than 60% of the popula- 5% of the population, said Ing- 24”h x 18”w; Frame: 29”h x 23”w. #31-1369
are using the app, and will begin tion for such an app to effec- mars Pukis, a board member
broader campaigns to encourage tively stop an epidemic, it also for mobile-network operator
its use after the summer holi- said such apps can provide in- LMT, which helped develop
days, when they say they worry cremental help to human con- the app. The app has yielded
a second wave of the epidemic tact tracers at far lower one confirmed exposure notifi-
could surge in Europe. “With takeup rates—a position cation, Mr. Pukis said.
growing fear, the app’s down- echoed by French officials. Regardless of the slow start,
load rate will grow,” Mr. O said. Still, there are signs France developers of the apps say
To be sure, the jury is unde- isn’t alone in seeing low adop- now is a good time to develop
cided on the adoption and effi- tion levels. Italy’s app recently and hone them in preparation 622 Royal Street, New Orleans, LA • 877-677-2801 • ws@rauantiques.com • msrau.com
cacy of such contact-tracing crossed three million down- for a second coronavirus wave.
apps. Germany on Tuesday said loads, which covers around 5% “The logic hasn’t changed,” Since 1912, M.S. Rau has specialized in the world’s finest art, antiques and jewelry.
it has seen 12 million down- to 6% of its population. Den- Mr. Pukis said. “We are quite Backed by our unprecedented 125% Guarantee, we stand behind each and every piece.
loads of its new Corona-Warn- mark’s app is at 300,000 down- firm in our belief that if the
App, which would account for loads or roughly 5%. Norway, second wave comes it will be
more than 14% of the country’s for its part, recently suspended very useful.”
A8 | Wednesday, June 24, 2020 THE WALL STREET JOURNAL.

WORLD NEWS

Latin America
Is Pandemic’s
Grim New Center
Brazil, which pushed some rich countries, testing is
spotty and hospital care is un-
to reopen, is on pace even and difficult to access.
to top U.S. death toll; Mexico tests the least of any
major nation, with just 3.3 tests
distrust in Mexico per 1,000 people, Colombia is
at 12.2 and Argentina is at 6.5,
BY LUCIANA MAGALHAES according to Our World in Data.
AND JUAN FORERO

LEONARDO CARRATO FOR THE WALL STREET JOURNAL (3)


In the U.S., the figure is 83.
Governments are reeling as
RIO DE JANEIRO—In early they face the challenges of the
May, the new coronavirus pandemic with limited re-
swept through the crowded sources, while being pressured
homes in Alley 24 of Rocinha, by millions of people and busi-
one of the largest of Brazil’s nesses to abandon lockdowns
favelas, or slum communities. and reopen economies.
Twenty of the 35 members Lenin Moreno, president of
of Ivanete Dias de Carvalho’s hard-hit Ecuador, said the rav-
extended family who live ages of the disease have been
crammed together here came worse than war. “In a war you
down with symptoms of can flee somewhere else,” he
Covid-19, from high fevers to said in a videoconference call
fluid-filled lungs. Few were with The Wall Street Journal.
able to get a test. Her 65-year- “Here, you can’t flee anywhere.”
old aunt died. The disease has walloped Daily life in Rocinha, a Rio de Janeiro favela, above, goes on largely
And the disease rolls on. Latin America’s two giants, unchanged despite a surge in Covid-19 deaths. Below, a picture of
Across Rio, the official number Brazil and Mexico. Both are led one victim. At left, a woman whose husband was killed by police.
of deaths is approaching 6,000. by presidents—Jair Bolsonaro
For Brazil, with a population in Brazil and Andrés Manuel
of 210 million, that number is López Obrador in Mexico—who
more than 51,000, with 1.1 mil- have played down the dangers
lion people infected—a toll of the virus, been skeptical of
second only to the U.S. The scientific advice and pushed
real tally of dead is almost cer- for economies to reopen.
tainly much higher, public- A federal court on Tuesday
health experts say. ordered Mr. Bolsonaro, who is
Latin America is the grim among a handful of prominent
new center of the pandemic, world leaders who refuse to
with more than two million wear a mask, to put one on
people infected and 100,000 when he is out in public in the
deaths. The region has 8% of country’s capital.
the world’s population, but ac- Health experts say the lead-
counted for 47% of coronavi- ers’ approach has confused cit-
rus deaths recorded in the izens, with some sticking to
past two weeks. self-isolation measures while
Infectious-disease experts others go about life as if there
fear Latin America is a harbin- were no pandemic. “period of intensive transmis- tion, has more than 28,000.
ger of things to come in India “In Brazil and Mexico, there sion.” Mexicali’s general hospi- Health officials have feted tiny
and other developing coun- was an executive decision to tal is at 92% of capacity, ac- Uruguay and Costa Rica—both
tries, as deaths decline in much not control this,” said Irene cording to the state of Baja with well-functioning health
of the developed world. The Bosch, an MIT scientist who California Health Department. systems and lower inequality
pandemic is also taking a huge does work in Latin America for In Mexico, people are so than other countries—for their
toll on the economies of poorer the Atlanta-based Centers for wary of public health care that handling of the crisis.
nations, sending poverty rates Disease Control and Preven- many families of Covid pa- But even in countries where
skyrocketing and eroding the tion. “You end up getting your- tients avoid taking them to the overall numbers appear low,
social gains made in the past self in a situation where noth- hospital until they are criti- there are troubling spikes. That
two decades, particularly in re- ing works to control the cally ill—at which point it is is particularly worrisome to
gions like Latin America. Mex- pandemic. The result is death.” started using a mask before zilian universities estimate the often too late, doctors say. health officials because while
ico’s antipoverty agency pre- Mr. Bolsonaro has defended others in her family. “People country is on track to overtake Distrust also runs high in the pandemic isn’t under con-
dicts up to 10 million people his approach, saying lives are thought I was going crazy.” the U.S. in total deaths over Peru, but that country’s govern- trol, economies are reopening
will have fallen into poverty by priceless but that the economy Elizabete Gomes da Silva, the summer. The University of ment instituted a stringent under pressure from the very
the end of June, and in Peru and employment must return 55, a mother of six and a mem- Washington in the U.S. proj- lockdown and followed interna- people who are most vulnera-
the figure will likely be 2.5 mil- to normal. Mexico’s president ber of the extended Dias clan, ects 165,960 deaths in Brazil tional protocol. It didn’t matter. ble—those who work hand-to-
lion by year’s end, the coun- has repeatedly said his gov- now does what she can, like by early August, compared People flocked to markets, cre- mouth, usually without any
try’s central bank says. ernment managed to “tame constantly cleaning her home with 145,728 for the U.S. ating dangerous clusters that kind of a social safety net.
The coronavirus preys on the pandemic.” on Alley 24. But she holds no Mexico, with more than spread. Peru now has more than “They tell us not to go out
the weaknesses in many poorer Here in Rocinha, where illusions. “In the communities, 22,000 deaths, is seeing the 8,200 deaths and 257,000 cases, but how do we eat,” said María
countries. It spreads rapidly in 100,000 people live in cinder- we always pay a higher price disease rip through towns on more than Italy and Spain. Herrara, who lives in the Chil-
densely packed neighborhoods block dwellings packed on for everything,” she said, the country’s border with the There are success stories in ean capital and whose husband
where hygiene is a challenge. steep hillsides, the homes are speaking of her favela. U.S., where hundreds of thou- the region. In Medellín, Colom- works in a supermarket.
People working as day laborers small and many residents are “There’s a chance everyone sands of factory workers re- bia’s second-largest city, the “I’m unemployed. My hus-
and in the informal sector heavily dependent on a day’s here is going to get sick.” turned to their jobs after vol- mayor is using a smartphone band is the only one who
can’t stay home if they want to wages. Many working-age peo- Brazil regularly logs more untary lockdowns were lifted app in which residents provide works. And we’re afraid he
feed their families. ple can’t shelter inside. than 1,000 deaths on any given at the start of June. information to officials so they could lose his job,” she said.
On top of that, in Latin Ms. de Carvalho said she had day. In the past week, it aver- The city of Mexicali, which can more easily track and “All the neighbors have coro-
America, there is widespread worried for months that if the aged 31,000 positive results a has roughly 700,000 people check the spread of the virus. navirus, many people do, but
distrust of the government, virus came to Rocinha, she and day for Covid-19 tests, according and is home to American Only seven have died. we are also afraid of hunger.”
which has led many people to her relatives would be defense- to government figures—about plants, has 3,826 confirmed Argentina, with 44 million —Ryan Dube in Lima, Peru,
doubt official warnings about less. “I was neurotic, I was tell- twice the level of any country cases and 664 deaths from people, has recorded fewer and Robbie Whelan and
the dangers of Covid-19 and ing everyone, ‘Take care,’ ” said except the U.S. at its peak. Covid-19 and is experiencing than 1,100 deaths, while Spain, David Luhnow in Mexico City
avoid hospitals. And unlike Ms. de Carvalho, 36, who Projections by various Bra- what health officials call a only slightly larger in popula- contributed to this article.

FROM PAGE ONE

Nasdaq Other industries haven’t


kept up. The three sectors of
the S&P 500 that contain those
Index performance through late June of each year
Nasdaq Composite Dow Jones Industrial Average S&P 500 Performance spread between
the Nasdaq Composite and
Only eight of its 30 constitu-
ents are up for the year and
most of their gains have been

Outpaces stocks—information technol-


ogy for Microsoft and Apple;
consumer discretionary for
40% Dow Jones Industrial Average
21.3 pct. pts.
wiped out by the slide in shares
of Boeing Co. The aerospace
company’s shares have declined

S&P, Dow Amazon; and communication


services for Alphabet and Face-
book—are the only groups in 30
42% this year due to the slump
in air travel prompted by the
pandemic and the grounding of
positive territory for the year. its 737 MAX jet.
Continued from Page One The energy, financial, industrial Boeing’s slide has knocked
have improved in recent weeks, and utility segments are down 20
about 930 points off the index
many investors expect the re- by double-digit percentages. in 2020, erasing most of the
covery to remain uneven and “All the big companies are, 1,151-point contribution from
they are bracing for more tur- in some way or another, with Apple, Microsoft, Home Depot
bulence as the presidential almost no exception, heavily 10 Inc., Visa Inc., UnitedHealth
election season ramps up. focused on some dimension of Group Inc., Walmart Inc., Nike
“You really need to triangu- tech,” said Bob Browne, chief Inc. and Intel, according to
late across the three different investment officer at Northern Dow Jones Market Data.
indexes,” said Susan Schmidt, Trust. “That has actually been 0 Its tumble has also tilted
head of U.S. equities at Aviva a good thing in terms of re- the balance of the index away
Investors. “You can’t depend turn, but it’s not a good thing from the industrials sector
on any one index.” in terms of diversification go- whose weighting has dropped
The S&P 500 has long been ing forward.” –10 to 14% from 19% at the start of
considered the broadest gauge, Although tech stocks have a 2020. The group makes up just
accounting for about 80% of similar weighting in the S&P 8% of the S&P 500.
the available market capitaliza- 500 and Dow, at 27% and 26%, The Dow’s underperfor-
tion of the U.S. stock market. some of those in the Dow don’t –20 mance versus the S&P 500 is
The Dow, on the other have the same growth pros- hardly new. The former has
hand, with just 30 stocks— pects—and that is evident in surged 300% from its financial
many of which are economi- their share prices. Neither crisis low on March 9, 2009,
cally sensitive—is weighted by Cisco Systems Inc., which had –30 but has still underperformed
price, instead of market value. warned of a pause in customer 1972 ’80 ’90 2000 ’10 ’20 the S&P 500’s 363% advance.
The Nasdaq Composite, gen- spending even before the pan- Note: Index performance data as of June 21-23 of each year. However, since the 2016 presi-
erally deemed a tech bench- demic, nor Intel Corp., which Source: Dow Jones Market Data dential election, the indexes
mark, is composed of the ap- has faced competition from are neck and neck, up 43% and
proximately 2,700 stocks listed chip-making rival Advanced formance,” said James Ragan, near $1,500. weighted by market capitaliza- 46%, respectively.
on the Nasdaq Stock Market. Micro Devices Inc. as well as director of wealth-management The Dow is calculated by tion, so larger companies hold “This has been a market en-
The stay-at-home practices manufacturing issues, have re- research at D.A. Davidson. adding the prices of the 30 greater influence. vironment where tech has
adopted to help slow the claimed their dot-com era It is unlikely those stocks, stocks and dividing by a factor The equal-weighted S&P been viewed as a defensive
spread of the virus have accel- highs. Cisco shares are off 5.2% particularly Amazon and Al- that accounts for changes like 500—which gives the same area for investors,” said Kris-
erated digital trends that have this year, while Intel is up 0.1%. phabet, would be candidates stock splits. This means that status to both the smallest tina Hooper, chief global mar-
benefited many big tech stocks. “The fact that the Dow to join the Dow because their companies with a higher share and largest companies in the ket strategist at Invesco. “In-
Shares of Apple, Microsoft, Jones does not have Amazon high share prices would skew price hold greater sway, regard- index—has underperformed its dustrials have largely been left
Amazon, Alphabet and Face- especially, and then Alphabet the index. Amazon’s shares less of their total market value. traditional counterpart this by the wayside, and so that’s
book have rallied this year, led and Facebook, definitely has trade above $2,500, while Al- The S&P 500 and Nasdaq year, falling 11%. reflected in the changing com-
by Amazon’s 50% advance. contributed to the underper- phabet’s Class A shares are Composite, by contrast, are Another issue for the Dow: position of the Dow.”
THE WALL STREET JOURNAL. * * * * * Wednesday, June 24, 2020 | A9

WORLD WATCH WORLD NEWS


INDIA-CHINA BORDER
After Clash, Nations Russians to Vote on
Try to Ease Tensions
Indian and Chinese security
forces agreed for the second
Extending Putin Rule
time this month to try to defuse BY ANN M. SIMMONS and boost the role of the State
tensions along their disputed bor- Council—an advisory body that
der in the Himalayan mountains. MOSCOW—Russian citizens Mr. Putin already heads—en-
The agreement, hammered are set to begin voting on con- shrining it in the constitution
out during an 11-hour meeting stitutional changes that could as a tool of Russia’s executive
Monday between military com- allow President Vladimir Putin branch. As head of this em-
manders from the two sides, to remain in office for years, powered agency, Mr. Putin
comes after 20 Indian soldiers potentially cementing his hold could remain in control and
died in a clash in one of the dis- on power. guide policy even after relin-
puted areas June 15. India has If passed, the constitutional quishing the Kremlin following
said as many as 40 Chinese amendments would reset the another two six-year terms.
troops also died in the clash. clock on presidential term lim- “What he wants is to trans-
China hasn’t confirmed the its, allowing Mr. Putin to run form the political system in a
deaths of any Chinese. for two more terms after his way which will let him find a
The same military command- current tenure ends in 2024. comfortable position after the
ers had met before the clash, an- Currently, term limits would end of his presidential term,”
nouncing similar intentions to de- compel Mr. Putin, who has Mr. Petrov said.
escalate tensions that have risen held power in Russia since The vote comes as Moscow
over the past several months. 1999 as either president or and many other major Russian
Just over a week later, however, prime minister, to step down. cities emerge from quarantine
security forces of the two nu- If he were to subsequently restrictions imposed to slow
clear-armed neighbors confronted win re-election, Mr. Putin the spread of the novel corona-
TOMAS BRAVO/REUTERS

each other, fighting with fists, could remain in the Kremlin virus, which has infected almost
rocks, batons and clubs wrapped until 2036, making him the 600,000 people nationwide.
in barbed wire at an altitude of longest-serving leader in Rus- In a televised address on
more than 14,000 feet in a re- sia’s modern history. Tuesday, Mr. Putin acknowl-
mote part of the Himalayas. The package also includes edged the virus was still a grave
Neither India nor China gave measures aimed at easing Rus- threat. “In general, we are mak-
details of troop disengagement People in Mexico City react in the aftermath of an earthquake. The capital suffered no major damage, sians’ economic pain amid one ing the epidemic recede, we are
from the disputed border points the mayor said. At least six people died in the Pacific Coast state of Oaxaca, site of the epicenter. of the world’s worst outbreaks
in the Ladakh region in the of the novel coronavirus.
western Himalayas.
The region has seen a heavy
set off warning alarms, caused
power outages and prompted
One Pemex worker was injured,
the company said.
Russia’s Glonass and the Euro-
pean Galileo systems, as well as
Those measures are a sweet-
ener that is likely to help
The poll comes as
buildup of troops and artillery by residents to leave buildings. Mexico City Mayor Claudia America’s GPS. boost support for the referen- major Russian cities
both Indian and Chinese forces
since early May, when a skirmish
The National Seismological
Service measured the quake at
Sheinbaum said via Twitter that
there were some reports of
The launch of the 55th satel-
lite in the Beidou family shows
dum, some analysts said.
The Russian parliament and
emerge from virus
broke out in one of the disputed 7.5, and reported a series of af- fallen walls or fences, but no China’s push to provide global the country’s supreme court quarantine.
points during patrolling by troops. tershocks throughout the day. major damage in the capital. coverage has been “entirely suc- have endorsed the proposed
Clashes between troops along The U.S. Geological Survey rated —Anthony Harrup cessful,” the system’s chief de- constitutional changes. The na-
a de facto border that has sepa- the quake’s magnitude at 7.4. signer Yang Changfeng told tional referendum, scheduled
rated India and China since a The state electric utility CFE CHINA state broadcaster CCTV. to start on Thursday and run seeking a turnaround,” he said.
1962 war have become more said that the quake knocked out China’s space program has until July 1, is widely expected “But the virus is still danger-
frequent in recent years. The re- power to about two million cus- Beijing Completes developed rapidly over the past to pass, some analysts said. ous—thousands of people still
cent deaths were the first since tomers in seven states and that GPS-Like Program two decades as the government A late May survey by the in- face the disease every day.”
1975, when four Indian soldiers 93% of the service had been re- devotes major resources toward dependent pollster Levada Cen- Many have expressed con-
were killed by Chinese troops. established Tuesday afternoon. China launched the final satel- developing independent high- ter in Moscow found that cern over Mr. Putin’s determi-
—Rajesh Roy Oaxaca state Gov. Alejandro lite in its Beidou constellation that tech capabilities. among those who said they nation to hold the vote when
Murat said the quake left six peo- emulates and may seek to com- The now complete current were certain to vote, 55% said the daily number of new infec-
MEXICO ple dead, a woman and five men. pete with the U.S. Global Position- system, known as BDS-3, con- they would support the consti- tions hovers between 7,000 and
He said it damaged eight roads, ing System, marking a further sists of 30 satellites and began tutional changes. The figure was 8,000 and some regions are still
Strong Earthquake including three federal highways, step in the country’s advance as a providing navigation services in 44% among all respondents. operating under restrictions.
Hits State of Oaxaca a bridge, some hospitals and major space power. 2018 to countries taking part in “It’s absolutely a done The vote had been pushed back
schools, as well as an estimated Tuesday’s launch of the satel- China’s sprawling “Belt and deal,” said Nikolay Petrov, a from its original date of April
A strong earthquake struck 500 houses. The state govern- lite onboard a Long March-3 Road” infrastructure initiative, senior research fellow at Brit- 22 because of the virus.
Mexico’s Pacific coast state of ment called on federal authorities rocket was broadcast live from along with others, according to ish think tank Chatham House. According to voting guide-
Oaxaca on Tuesday, damaging to declare a state of emergency the satellite launch base of the official Xinhua News Agency. Over the weekend, Mr. Putin lines, voters will be allowed to
roads and buildings and leaving at for 50 Oaxaca municipalities. Xichang, deep in the mountains Beidou could ultimately com- told Russian state television he cast ballots indoors and out-
least six people dead in the state. State oil company Petróleos of southwestern China. pete against GPS and others in had “not ruled out” running for doors. They would be provided
The quake, which occurred at Mexicanos said its oil refinery in The third iteration of the the same way Chinese cellphone another term if voters approve with protective masks, gloves,
11:29 a.m. Eastern Daylight Time, Salina Cruz, Oaxaca, had stopped Beidou Navigation Satellite Sys- makers and other producers of the constitutional changes. and disposable pens and mem-
was felt across much of south- production after an explosion in tem promises to provide global technically sophisticated hardware The amendments would give bers of regional election com-
ern and central Mexico, including a generator caused a small fire coverage for timing and naviga- have taken on their foreign rivals. the president greater sway missions would be tested for
the capital Mexico City, where it that was quickly extinguished. tion, offering an alternative to —Associated Press over courts and prosecutors, coronavirus before the vote.
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A10 | Wednesday, June 24, 2020 THE WALL STREET JOURNAL.

FROM PAGE ONE

Plexiglass with scarce supply of raw ma-


terial, meant turning down
some requests and longer de-

Comes to livery times for the others.


One customer paid a sizable
deposit, pressing his request

The Rescue to jump the line. But “all plexi-


glass requests are created
equal,” Mr. Antonelli replied.
Like the designers, plexi-
Continued from Page One glass manufacturers and other
”It frightened me because it companies that use plexiglass
looked more like a jail visiting in Europe have been all-hands
room,” Mr. Gernigon said, re- on deck to meet requests.
ferring to the barriers. He In early March, Kunststoff-
aimed for something more ele- handel Rexin GmbH started
gant and more aesthetically scouting for extra plexiglass
pleasing. across Europe to avoid a
Mr. Gernigon came up with shortage later on. Back then,
a transparent pod that resem- the German company, which

AURELIEN MORISSARD/XINHUA/ZUMA PRESS


bles a lampshade suspended makes products like terrace
over the heads and upper bod- roofs and carports, got some
ies of restaurant guests. He initial requests for sneeze
posted his design online. He guards from pharmacies.
said he receives around 50 or- Other businesses like fuel sta-
ders a day, not only from res- tions followed, said chief exec-
taurants. Other businesses like utive Michael Schwarz.
casinos, hospital waiting Now it’s hardly possible to
rooms and nail salons are also find plexiglass on the market,
interested, he said. the 40-year-old said, and he
Production started in early doesn’t expect a change for
June, with orders shipped in- Christophe Gernigon poses under his invention, a Plex’Eat prototype plexiglass bubble, at the H.A.N.D restaurant in Paris. many weeks. “Current orders
ternationally to countries like will receive delivery dates, if
the U.S. and Japan. The cost: tion has recognized plexiglass “Plexiglass boxes seem to over a decree for the next right thickness and weight to any, from the end of the year
€155 for a single pod, or and other plastic barriers as me more a dystopian vision of school year. While the mate- achieve a functional design. to the beginning of 2021.”
around $173. effective in helping to stop the the future than possible solu- rial is commonly known as Mr. Gernigon, the designer For Mr. Antonelli, the main
The 47-year-old is currently spread of the virus. tions to a problem,” countered plexiglass in English, it is sold from Paris, also had to adjust problem has been getting his
working on other versions of That didn’t stop critics architect Stefano Cardini, who under various trademarks, one the thickness of his prototype hands on enough plexiglass to
his Plex’Eat design, one using roasting Italian architects was the Italian chief academic of them Plexiglas. dome to make its shape work. meet demand. The protective
color and another large Ilaria Bizzo and Stefano Cor- officer at the Istituto Europeo Roman artisan Mr. Anto- Typically, the material comes box he designed for the local
enough to ensconce a couple. nacchini for their design fea- di Design. nelli, who goes by the nick- in sheets from manufacturers hospital was such a hit that he
The dining pods even en- turing individual boxes for The country’s education name of “plastic man” or “er and then can be cut and bent got a request for 50 more. He
hance food aromas, he said, students returning to schools minister, Lucia Azzolina, and plasticaro” in local dialect, to specification. had to turn it down due to the
having recently enjoyed a truf- after lockdown. The two pro- far-right politician Matteo Sal- said the original shapes and At the height of the emer- lack of material.
fle risotto under a plexiglass posed the idea as a “flexible, vini even squabbled over its designs he’s making pose gency, there was a rush to get “It’s like I have a shiny Fer-
dome. economic and green solution” spelling—is it plexiglass or some difficulties. Some are protective tools, Mr. Antonelli rari but fuel is running dry,”
The World Health Organiza- to keep schools safe. plexiglas?—as they argued technical, such as getting the said. High demand, coupled he said.

China Link China whom its leaders ur-


gently needed to understand.
The Journal also examined
Political Web Mr. Steel said he doesn’t
“collect money from, nor have
received any funds from”

In Access campaign-finance records for Political donations helped people linked to China's Messrs. Zhao, Tang, Li or
Mrs. Clinton’s candidacy and government or Communist Party meet President Wang. Mr. Steel didn’t answer
for presumptive 2020 Demo- Trump and other Republicans. a question about why they

To Trump cratic nominee Joe Biden. It


didn’t find similar efforts in-
volving the two by people
Met Mr. Trump and
GOP lawmakers
were there as his guests.
The Federal Election Com-
mission declined to comment
linked to China’s government. on the men’s attendance at the
Continued from Page One Chinese money has alleg- Republican meeting, citing
issues. edly flowed to Democrats pre- “potential for this matter to
In response to inquiries, the viously, including to President come before the Commission
Republican National Commit- Bill Clinton’s 1996 re-election in an enforcement capacity.”
tee said it had instructed Mr. effort, which led to guilty After the San Diego meet-
Steel to break ties with several pleas by Democratic fundrais- ing, Messrs. Zhao, Tang and Li
people identified in Wall ers for election-law violations briefed a group of Chinese po-
Street Journal reporting. and other crimes. litical figures in China, includ-
“It’s important to do all we Soon after the 2016 vote, ing retired Gen. Luo, on their
can to safeguard our politics officials from China’s consul- access to top Republicans, ac-
from illegal foreign meddling,” ate in Los Angeles approached Wu Guangsheng David Tian Wang Tang Ben Zhao Gang cording to a video of the
the RNC said in response to a pro-Trump organizer named event. Mr. Li said Mr. Trump’s
questions. It said it wouldn’t David Tian Wang, said people election could prove a win for
return donations identified by who worked with him. A na- Works with Supplier Founder Served on Researcher China, according to the video.
the Journal that facilitated ac- tive of China with a U.S. green Donated Donated, for
cess to the president and card, Mr. Wang had founded a $150,000 with wife,
other officials because it group called Chinese Ameri- $300,000 $300,000 donation
didn’t believe campaign-fi- cans for Trump and had long United Chinese China Strategic In June 2017, Trump Victory
nance laws were broken. associations with people and Front Chinese military Americans Culture Promotion received a combined $300,000
Separately, Mr. Steel, a Re- groups in California supported for Trump Trump Association
Chinese Ministry from Mr. Tang and his wife.
publican national committee- by China’s government, ac- Controlled Victory The donations allowed Mr.
of Science and
man from California, said it cording to Chinese official by Met with Transferred
Led by Technology Tang to attend a fundraiser at
Supported
would be “false, defamatory, websites and state media. funds to* Washington’s Trump Interna-
and offensive” to say he aided The consulate asked for Mr. Retired tional Hotel, where he led Chi-
any Chinese efforts. He didn’t Wang’s help in lobbying on major nese guests to meet the presi-
respond to specific questions. China issues during the Trump Communist Chinese Trump Republican
general
Chinese
dent. The contributions by the
There is no indication Mr. administration, said Lance Party of China consulate campaign National Luo Yuan military Tangs, who FEC records show
Trump was aware of the polit- Chen, who said Mr. Wang tried Committee hadn’t previously given to Mr.
ical contributions. The White to recruit him for the effort. *Money from Tang Ben and wife went exclusively to RNC Trump, were two of the big-
House didn’t respond to re- Mr. Chen said he declined. Sources: Federal Election Commission (donations); interviews with people familiar (consulate meeting); RNC (Tang, Zhao and Wu meeting Trump); gest donations Trump Victory
Chinese Americans for Trump (Wang meeting Trump); Chinese Academy of Science and Technology for Development (Zhao employment); Chinese
quests for comment. Mr. Wang was soon listed government websites (China Strategic Culture Promotion Association); Huaxun Fangzhou (Wu employment) received in 2017.
The Journal pieced together as CEO of the newly registered Joel Eastwood and Jessica Kuronen/THE WALL STREET JOURNAL Mr. Tang described the visit
details of the efforts from Wang & Ma Government Rela- in a Chinese newspaper com-
campaign-finance records, Chi- tions LLC, California business mentary as grass-roots diplo-
nese government websites and records show. He also gave macy for China. Interacting
U.S. corporate filings as well $150,000 to Trump Victory, ac- with the president “can help
as through interviews with cording to Federal Election find a breakthrough in freeing
people involved. It couldn’t be Commission disclosures. up the U.S.-China technology
determined whether any of the He became a frequent pres- trade,” he wrote.
contributions or other activi- ence in GOP circles. In one On a Chinese social-media
ties violated U.S. laws. Federal case, Mr. Wang was quoted in account, he posted photos of
law prohibits political giving Chinese-language media in the himself in the White House. “If
by people who aren’t U.S. citi- U.S. as saying he used access the Chinese people wish to
zens or permanent residents. to the Trump campaign to overtake the U.S., they must
The initial effort to access push a view that U.S. military study the U.S.,” he wrote.
the Trump administration ap- deployments in the contested Reached on a Chinese cell-
pears to have stalled as ten- South China Sea were a waste phone number, Mr. Tang hung
sions between the U.S. and of money. up when told the caller was a
China have risen, over trade, Lobbyists for foreign gov- reporter. Earlier, his wife said
Covid-19 and other issues. ernments must register with in a brief interview that her
U.S. officials said China, the Justice Department. Mr. husband spent most of his
which has historically stepped Wang’s name doesn’t appear time in China and that she
up efforts to influence U.S. in its foreign-agents database. wasn’t familiar with any polit-
politics when it feels chal- Mr. Wang didn’t answer ical donations.
lenged, recently intensified ef- most specific questions from Chinese government researcher Zhao Gang, left, and Republican donor Tang Ben, right, who with Accompanying Mr. Tang at
forts to push misinformation the Journal but said in a text his wife gave $300,000, seen with President Trump and first lady Melania Trump in 2017. the 2017 fundraiser, the RNC
through social media and message: “I have NO ties to confirmed, was Mr. Zhao from
other channels. China has long the Chinese government and close associate of President Xi Mr. Zhao said that his par- Agency officer named Welton the Chinese Ministry of Sci-
denied meddling in other do not take orders from any- Jinping, say people who have ticipation was out of “aca- Chang. They said that ence and Technology, plus the
countries’ affairs. one.” He said he loved China met Mr. Zhao. demic interest” and that throughout the three-hour chairman of a state-backed
Most of the donations iden- and the U.S. and believed in Another was Tang Ben, a China’s government provided meeting, Chinese participants Chinese producer of military
tified by the Journal flowed to the GOP’s platform. China-born U.S. citizen who no funding for it. Mr. Li also voiced hope an election win by communications and satellite
a fundraising committee called served as an executive-com- said he was there in a per- Mr. Trump might lead to U.S. gear, Huaxun Fangzhou Co.
Trump Victory in the first half mittee member at the China sonal capacity. retrenchment in the Asia-Pa- The executive, Wu Guangsh-
of the Trump presidency. The An RNC meeting Strategic Culture Promotion The three had appeared at cific region. eng, told Mr. Trump that Chi-
donations were among the In May 2017, Mr. Wang at- Association, an opaque group events together in China be- Both American participants nese technology companies
largest of 2017. They account tended a Republican National that state media have said ad- fore. In September 2016, said they worried the event were eager to invest in the
for a fraction of the $190 mil- Committee leadership meeting vises China’s leaders on secu- Messrs. Zhao, Tang and Li par- was designed to let Chinese U.S., according to an account
lion-plus the fund has raised in San Diego as a guest of Mr. rity issues. Its secretary-gen- ticipated in a closed-door intelligence get to know them. on the website of Huaxun’s
since Mr. Trump took office. Steel, the California commit- eral, retired Maj. Gen. Luo meeting billed as a U.S.-China Mr. Chang said he reported parent company.
Chinese nationals involved teeman, people familiar with Yuan, is well-known to U.S. of- security dialogue. They were the encounter to U.S. intelli- It said that shortly before
said they weren’t acting on the matter said. ficials for his hawkish posture part of a Chinese delegation gence. his Washington visit, Mr. Wu
behalf of China’s government Accompanying Mr. Wang to toward the U.S. that included a hard-line mili- The RNC said the men who attended a meeting in Beijing
but sought to get close to Mr. the meeting as Mr. Steel’s The third was Li Su, a gov- tary strategist and a leader of attended the Republican Party with the then-head of the
Trump for personal reasons or guests were three men linked ernment-connected business- a research center controlled meeting in San Diego didn’t United Front Work Depart-
to help them in business. to China’s government. man who has worked with a by China’s military, according have any meaningful interac- ment, a Communist Party
China’s government didn’t re- The first was Zhao Gang, well-known former associate to an event program. An older tion with GOP leaders there. agency that seeks to shape
spond to requests for com- whom Chinese official web- of China’s vice president. man wearing a Mao suit led However, it said, it has barred global politics in China’s favor.
ment, nor did China’s Embassy sites identify as a researcher The presence of Messrs. the Chinese side, who partici- them from future RNC events. Mr. Wu’s company said he
in Washington. for China’s Ministry of Science Zhao and Li at the GOP leader- pants were told was a per- The committee also said it wasn’t aware the event was a
Unlike his 2016 rival Hillary and Technology focused on na- ship event was unusual be- sonal adviser to President Xi. now has tightened its policy fundraiser when invited. It
Clinton, whose positions on tional security, tech diplomacy cause federal election rules U.S. participants included on guests at such meetings, ef- said he sought to open doors
global issues were well known and other issues. Mr. Zhao’s don’t permit foreign nationals Michael Breen, then-CEO of fectively excluding foreign na- to pursue U.S. business.
from her time as secretary of work has connected him with to play any role in decision the center-left Truman Na- tionals, and it has cut ties —Aruna Viswanatha, Caitlin
state, Mr. Trump entered of- the senior echelons of China’s making at U.S. political com- tional Security Project, and a with Mr. Wang, the founder of Ostroff and Lisa Schwartz
fice as an unknown quantity to Communist Party, including a mittees. former Defense Intelligence Chinese Americans for Trump. contributed to this article.
THE WALL STREET JOURNAL. * * * * NY Wednesday, June 24, 2020 | A10A

GREATER NEW YORK


Officials Monitor Virus Hot Spots City
Beaches
The percentage of reopening on Monday, city offi- patients—largely part of vul- Queens has the highest per- women in New York City who
cials said more than 7,500 resi- nerable populations living in centage of overcrowding in the were tested for Covid-19 at the
people testing positive
in lower-income NYC
dents have been diagnosed with
Covid-19 since June 1.
The state and New York
some of the poorest communi-
ties—are showing antibodies
for the disease, according to
city, with 15.7% of households
having more than one occu-
pant per room. Roughly a
height of the city’s outbreak.
Researchers found that women
who lived in a neighborhood
To Open
areas is concerning
BY MELANIE GRAYCE WEST
City have prioritized testing in
lower-income neighborhoods,
which historically have seen
Ramon Tallaj, chairman of the
board of Somos.
Active transmission of the
third of renters in the neigh-
borhood pay 50% or more of
household income on rent, and
with high household member-
ship were three times more
likely to be infected with the
July 1 for
New York state has hit the
lowest percentage of positive
Covid-19 test results since
more cases of the virus. Re-
search also has repeatedly
shown that the virus dispro-
portionately affects black and
virus in Latino households
where there are multiple gen-
erations of families remains
high, according to Dr. Tallaj.
58% of households have an in-
come below $60,000.
Corona and the neighboring
East Elmhurst community to-
virus. They were twice as likely
to get Covid-19 if they lived in
areas with a high poverty rate.
“The risk of infection is related
Swimming
March, but health officials are Latino New Yorkers. “When you have a building gether have the highest rates to household, rather than ur- BY KATIE HONAN
closely monitoring hot spots Somos Community Care, a with 40 of those apartments, of infection in the city: ban, density,” says co-author
where higher rates of infection nonprofit network of 2,500 with grandparents there, each Elmhurst’s infection rate is Cynthia Gyamfi-Bannerman. New York City Mayor Bill
persist. health-care providers across building is a nursing home in 29.38% of those tested are Northwell Health has con- de Blasio will announce on
Earlier this month, Gov. An- New York, has been tasked by the Hispanic community,” said positive, while 28.34% are pos- ducted more than 31,000 tests Wednesday that city beaches
drew Cuomo said that less than the state to facilitate virus Dr. Tallaj. “Who lives there? itive in the Corona neighbor- to detect antibodies in hard-hit will officially open July 1 and
1% of people checked for the testing in churches and clinics Immigrants, people without hood, according to the most communities. As of Thursday, permit swimming, according
novel coronavirus are testing in hard-hit neighborhoods in documents, immigrants with recent city data available. A results showed that 48% of to a spokeswoman.
positive. At the same time, the the Bronx and Queens. no salary who have no job. month ago, the rates were nearly 7,000 Latinos tested The city normally opens the
percentage of people testing Data from Somos show that Therefore, they go out and try above 43% for the same areas. positive for antibodies, while city’s 14 miles of beaches to
positive in some lower-income in May, roughly 43% of people to find something to do and In research published the rate was 27% among some swimming on Memorial Day
neighborhoods in New York City tested at those sites were pos- they get infected.” Thursday in the Journal of the 11,500 black New Yorkers. Of weekend. But swimming has
is higher than 1%. And while in- itive for antibodies, while 4.7% Data from the New York American Medical Association, the 334 Asian New Yorkers who been off limits to stem the
fection rates dropped signifi- are testing positive for City Department of Health and researchers from Columbia were tested, 21% were positive, spread of the new coronavirus.
cantly enough for the city to en- Covid-19. Across the Somos Mental Hygiene show that the University Irving Medical Cen- while 16% of some 1,500 white People could still sunbathe
ter phase two of its economic network, some 45% to 50% of Corona neighborhood of ter looked at 400 pregnant New Yorkers were positive. and enjoy the beaches.
In anticipation of the swim-
ming, city lifeguards will begin
working at the beaches on
Street- July 1, ahead of the Fourth of
July holiday, said the mayor’s
Parking spokeswoman, Freddi Gold-
stein.

Regulations The city’s Department of


Parks & Recreation, which op-
erates the beaches, also con-
Will Ease firmed the beaches will fully
open on July 1.
BY PAUL BERGER The mayor had previously
said that the city had prohib-
Car owners will soon see ited swimming out of concern
some relief in their search for that it would draw large
one of New York City’s scarcest crowds at beaches. The city
commodities: street parking. also feared the crowding
Mayor Bill de Blasio said would extend to the subways
Tuesday that new rules taking and buses that many people
effect on Monday would limit
alternate-side parking, which
requires vehicles to be moved
from one side of the street on a
No decision has
certain day so the street can be been made on
cleaned. “No New Yorker should
have to move their car more
whether to open
VICTOR J. BLUE/BLOOMBERG NEWS

than once a week,” he said, public pools.


speaking at a news conference
where he called the rules “a su-
per hassle.”
The new rules will be as- take to the beaches, he said.
sessed on a week-by-week ba- The city, hardest hit in the
sis over the summer and could nation by the coronavirus, en-
be extended or modified, the tered the second phase of its
mayor said. economic reopening on Mon-
Car owners should check Poll workers wearing face shields, masks and gloves helped a primary-election voter Tuesday in Brooklyn. day, allowing for retail busi-
parking signs carefully. nesses to have in-store shop-

Primary Draws Low Voter Turnout


A spokesman for the city’s ping and restaurants to offer
Transportation Department outdoor dining. However, so-
clarified that the rule change cial-distancing measures re-
only applies to residential main in place.
streets that are cleaned twice BY KATIE HONAN Elections had urged people to Manhattan, requested an absen- after President Trump was the The city’s public pools have
a week on each side of the AND JIMMY VIELKIND vote via absentee ballots. Gov. tee ballot because she has been only candidate to qualify for been closed because of the
street. For residential streets Andrew Cuomo signed execu- quarantining out of state since the ballot, further muddying pandemic. City officials ha-
that are cleaned once a week New Yorkers trickled into tive orders allowing anybody to mid-March because her wife turnout predictions. ven’t made a decision on
on each side of the street cur- the polls Tuesday to vote on request a ballot as a result of has an immune disease, she At polling sites, voters were whether to open them, Ms.
rent rules remain in effect. primary races for seats in Con- the pandemic, and requiring said. She was driving back to required to wear face masks, Goldstein said.
Alternate-side parking rules gress, the state Legislature and election officials to mail all eli- Manhattan on Tuesday morning and some poll workers donned As the summer season be-
have been halted for most of local government, but turnout gible voters a postage-paid ap- for the first time to vote in per- face shields. All voters were gan, elected officials expressed
the past three months because was low with many voters opt- plication. Nearly 1.75 million son. She is up for re-election. given a new pen to cast their concerns over unguarded
of the pandemic. The rules are ing for absentee ballots to people returned the applica- It was just one issue on pri- ballots. beaches, especially the possi-
a bane of many New York City avoid the spread of the new tions, the state board said Mon- mary day, the first time in With so many absentee bal- bility of drownings as the
car owners and a conundrum coronavirus. day, but it couldn’t be deter- New York history that a pri- lots, results on local races weather warmed.
for some out-of-town visitors. Some voters who did head mined how many were mailed mary for a presidential nomi- weren’t expected to be tallied Last week, another spokes-
Mr. de Blasio said street- to the polls said they were out. Many people posted on so- nation fell on the same day as for at least a week, officials woman for Mr. de Blasio, a
cleaning signs won’t change for given incomplete ballots, while cial media to say they hadn’t those for state and local of- said. More than 92,000 people Democrat, said 400 lifeguards
now. The streets will only be others said they didn’t receive received their ballots. fices, as well as House seats. voted during a nine-day early had passed the swim test and
cleaned on the second of the their absentee ballot. Rachel Lavine, a Democratic Republicans canceled their voting period that ended Sun- other qualifications needed to
two days posted on each sign. The New York State Board of state committeewoman from presidential primary in March day, the state board said. work on the beach.

Illegal Fireworks Are Sparking the Ire of Mayor de Blasio


BY KATE KING
City Plans Smaller guidelines. Spectators will be
For nights now, bursts of able to see the fireworks from
fireworks have exploded over July Fourth Displays their homes and rooftops, with
New York City, and on Tues- some pyrotechnics expected to
day, Mayor Bill de Blasio reach 1,000 feet high.
vowed to ferret out the source New York City will hold “The idea is very brief
of the illegal explosives. several short Fourth of July bursts,” the mayor said. “Brief
The city’s 311 and 911 sys- fireworks shows across all five but mighty. You’ll know this is
tems have logged more than boroughs starting Monday, a very professional, beautiful
24,000 fireworks complaints Mayor Bill de Blasio says. show.”
since Jan. 1, compared with The five-minute shows, The grand finale will be on
about 1,060 during the same sponsored by Macy’s, won’t be July 4, with fireworks over the
period last year, according to announced ahead of time to Empire State Building and a
the New York Police Depart- prevent people from gathering national broadcast with musi-
ment. Most of the complaints in violation of social-distancing cal TV performances on NBC.
have been made since June 1.
Mr. de Blasio says he is
forming a task force to find $333 million in 1999, according middle of the night?’ ” spokes-
JOHN MINCHILLO/ASSOCIATED PRESS

the source of the fireworks, to the American Pyrotechnics woman Katy Hansen said.
which are illegal in New York Association. Professional-dis- Jade Wiselogle, who lives in
City but allowed in other parts play fireworks revenue, by Brooklyn’s Prospect Heights
of the state. Fireworks are contrast, has grown to $375 neighborhood, said she hears
brought in from other areas, million from $167 million over fireworks nightly, often as late
often by networks of people the same period. as 3 a.m. She moved to the
who make large purchases and The professional-display area a year ago because of the
then resell them on city fireworks industry has been “quiet, relaxed vibe,” but now
streets, said New York City devastated this year by wide- spends her nights wrapping
Sheriff Joseph Fucito. Fireworks exploded Friday during Juneteenth celebrations above Brooklyn’s Bedford-Stuyvesant. spread event cancellations, her dog, an Australian shep-
“The way to go at this is at with many businesses on track herd named Clooney, in a blan-
the root: Cut off the supply,” pared with 22 calls during the couple thousand dollars of can effectively use community to bring in less than 10% of ket to calm him down. “You
Mr. de Blasio said. same week last year, according fireworks a week this time of leaders rather than police to normal revenue, said Julie have to suffer through it,” she
The mayor’s announcement to Sgt. Detective John Boyle. year, Ms. Rafferty said, with address quality-of-life issues. Heckman, the association’s ex- said.
followed a protest outside Gra- Fireworks are illegal in Massa- some customers driving from Mr. Adams said he would like ecutive director. Backyard fire- Jenn Kennedy, a Harlem res-
cie Mansion on Monday night chusetts. as far away as Long Island. to work with the Vulcan Soci- works sales, however, are ident, said it feels like the fire-
by residents, some honking Phantom Fireworks of Dela- “Customers that might nor- ety, an organization of black booming nationwide. works are shaking her apart-
their horns, upset about the ware Water Gap, in Strouds- mally spend $1,000 are instead firefighters, as well as anti-vio- Animal Care Centers of New ment, with the booming
nightly fireworks. Mr. de Blasio burg, Pa., about 75 miles west spending three times that lence intervenors and block as- York City, a nonprofit that runs stretching as late as 4 a.m. The
said the task force was in the of Manhattan, sold more than amount,” she said. sociations to educate residents the city’s animal shelters, has noise—and the lack of sleep it
works beforehand. $1 million in fireworks since Brooklyn Borough President about the dangers of fireworks. been fielding calls from people causes—has only added to her
Other cities are facing simi- May 29, manager Rosie Raf- Eric Adams said this will be The consumer fireworks in- looking for advice on how to stress level. “I’m already
lar problems. In Boston, the ferty said. “People are bored,” the first test since the large- dustry has grown dramatically help their pets cope. drained emotionally from the
police department fielded she said. “They just want to scale protests over the killing during the past two decades, “People are saying, ‘What do pandemic,” she said.
1,445 fireworks complaints be- blow stuff up.” of George Floyd by Minneapo- with revenue reaching $1 bil- I do when my 120-pound dog —Charles Passy
tween June 1 and June 7, com- The store usually sells a lis police of whether the city lion last year compared with jumps into the bathtub in the contributed to this article.
A10B | Wednesday, June 24, 2020 NY * * THE WALL STREET JOURNAL.

GREATER NEW YORK GREATER


NEW YORK
METRO MONEY | By Anne Kadet
WATCH
Event Planner Regroups, Moves in With Mom NEW JERSEY

Jes Gordon Three Drown in


recently cele- Backyard Pool
brated her
50th birthday Authorities have identified
dancing in a three family members who died
leopard-print in their swimming pool.
suit at a surprise disco party Bharat Patel, 62 years old, his
in the West Village. She was daughter-in-law Nisha Patel, 33,
renting an apartment in and her 8-year-old daughter
Hudson Yards, Manhattan’s were found unresponsive in the
most expensive neighbor- aboveground pool on Monday af-
hood, and producing million- ternoon by East Brunswick po-
dollar weddings along with lice responding to a 911 call from
MELISSA BUNNI ELIAN FOR THE WALL STREET JOURNAL

celebrations for hedge funds, neighbors who heard screams.


media firms and consumer Police Lt. Frank Sutter told
brands through her epony- reporters officers performed
mous events company. CPR when they arrived, but all
Then the pandemic hit, three victims were pronounced
and the party stopped. Ear- dead at the scene.
lier this month, Ms. Gordon On Tuesday, the Middlesex
put her whole life in storage County Regional Medical Exam-
and moved in with her iner’s Office said it had con-
mother in Poughkeepsie. cluded the deaths were by acci-
The coronavirus era has dental drowning.
spawned many stories of in- Neighbors said the family had
novation and heroism, but recently moved into the home.
not everyone has an inspir- “This is a devastating day for
ing tale to tell—at least not Jes Gordon, left, is living with her mother, Susan Reichin, because Ms. Gordon’s business stalled amid the coronavirus pandemic. our entire community,” Police
yet. More common are peo- Chief Frank Losacco said.
ple like Ms. Gordon who are rough days,” her daughter down started in March, she and chairman of BizBash, a through,” she admits. —Associated Press
floundering, especially in in- said. “I’m not a crier, and I figured it meant postponing media and events company Ms. Gordon has endured
dustries where recovery cry about three times a day, events until the fall. Then re- for the industry. “Everyone’s illness, the death of loved CONNECTICUT
could take years. wouldn’t you say?” ality set in—the rest of the struggling. It’s a cash flow ones and divorce. This is
I recently took the two- Mom agreed: “You’re year was effectively canceled. game, and if you don’t have harder. After working non- Four DMV Offices
hour train ride from New pretty good on that.” She offered clients virtual cash flow you’re in big trou- stop for decades, she can’t Partially Reopen
York City upstate to Pough- Ms. Reichin isn’t the only alternatives, but no one bit. ble,” he said. tolerate the void. “I am mis-
keepsie. Ms. Gordon picked Poughkeepsie parent to wel- A $30,000 Paycheck Protec- erable because the love of The Connecticut Department

W
me up in a leased BMW. come a middle-aged child tion Program loan went fast. hile Ms. Gordon’s my life is dormant. That is of Motor Vehicles on Tuesday
“It’s a beautiful place to home during the pandemic. The final stroke came when strategy is conser- the problem. I don’t know partially reopened four of its
visit,” she said, as we “I know of two cases where a client canceled a big De- vative, she’s more who I am without that part- branches to begin offering in-
cruised through the leafy the whole family has moved cember bash, the last left on likely to survive than those ner,” she said. person licensing and new vehicle
streets. “In fact, would you in with the mother,” she said. the calendar. “That’s when I who keep spending to main- On the bright side, this registration services by appoint-
take me back with you to- knew I was [expletive],” Ms. tain appearances. “A smart unwelcome period of reflec- ment only.

T
day? It’s horrible. I’m seri- his is Ms. Gordon’s Gordon said. strategy is to lay people off tion has her considering a Road testing also resumed
ously [expletive] losing it.” first time living with She called her business and come back when it’s bet- second marriage, another Tuesday, in partnership with pri-
Ms. Gordon knows things her mother since she manager. His advice? “Stop ter,” Mr. Adler said. “I don’t dog, or a teaching job. And vate driving schools, to reduce a
could be worse. “This is the went to boarding school the bleeding!” To preserve think you have any choice. everyone says the events backlog of approximately 1,000
house,” she said, pulling up when she was 15 years old. deposits for postponed Moving in with your parents business will revive eventu- road tests that developed be-
to mom’s spacious, three- She launched her events and events, she slashed overhead. sounds pretty good.” ally, though it may not be cause of the Covid-19 pandemic.
bedroom ranch with its large design company when she Ms. Gordon gave notice on But not easy. Ms. Gordon what it was. “Who would have thought ev-
in-ground pool. was 21 and spent decades her $5,000-a-month rental now fills her days with exer- When she returns to New erybody was missing DMV so
Mom is Susan Reichin, a throwing parties in cities apartment, her $10,000-a- cise, walking her bulldog Su- York City, Ms. Gordon envi- much?” joked Gov. Ned Lamont,
lively, 78-year-old jazz pia- from Los Angeles to Dubai. month office lease and a preme, card games with her sions renting a co-working as he stood outside the Water-
nist who runs a real estate She’s appeared as a reality production space in Queens. mother’s friends, volunteer- space and a Brooklyn apart- bury branch. Locations in Bridge-
appraisal business. TV design expert and has a She furloughed her small ing, strategy calls, mentoring ment. It won’t be as fabulous port, Enfield and New Britain
Ms. Reichin doesn’t envy novel coming out in July— staff, saving another $20,000 sessions, applying for cre- as her old life, she opines, also partially reopened Tuesday
her daughter’s situation. about an events producer. a month. Then she called her ative consultant gigs, design- and doesn’t need to be. for new registration and license
“There has to be this sense The decades had their ups mom: “Would you like a ing flower arrangements to “It will be interesting,” services.
that who you were is no lon- and downs, Ms. Gordon said. roommate?” sell online and helping she says. “It’s going to be New registration services will
ger there,” she said. “And I But business was always Ms. Gordon is faring rela- around the house. different, and I have to em- begin June 30 at the Wethers-
don’t think anyone can do steady, often keeping her tively well compared with And nearly every day, brace that.” field, Willimantic, and Danbury
that easily.” busy 14 hours a day, seven others in the events space, around 3 p.m., she has a branches.
“Yeah, we’re having some days a week. When the lock- said David Adler, founder meltdown. “Reality pokes anne.kadet@wsj.com —Associated Press

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THE WALL STREET JOURNAL. Wednesday, June 24, 2020 | A11

LIFE&ARTS

Travelers are rebooking trips to


Botswana, left, and Ireland, above.
UNIVERSAL IMAGES GROUP/GETTY IMAGES (2)

her the longer she waited, the


fewer options she would have to
find dates next summer, since ev-
eryone else was deferring. Ms.
Howell decided to reschedule the
exact same trip for June 2021:
That way she didn’t lose her de-
posit, but she does have to pay an
additional $2,000 for the annual
rate increase.
Even though she had been plan-

Booking Next Summer Now


ning the trip since September and
didn’t want to start from scratch,
Ms. Howell would have preferred
to cancel and rebook on her own
time. It is unclear whether there
will be a vaccine next year—or if
the camps she’s booked will even
That major international vacation you scrapped is already selling out for 2021 still be in business. “I’m excited to
go, but I’m uncertain it will really
happen,” she says.

D
BY NANCY KEATES have committed to hotels, resorts Mayfair district of London. Al- Henry Harteveldt, president of For Darcey Carr, the decision to
and safaris much further in ad- though the hotel has been closed travel research company Atmo- postpone rather than cancel her
eborah Pilla’s sum- vance than usual. since March, and people usually sphere Research Group, says that trip to Ireland was less about fear
mer travel is all “It’s incredibly full already,” don’t book more than 90 days in while many people are postponing of losing the deposit than it was
planned and says Wayne Nupen, the regional advance, he has been in continu- trips until next summer, no one about protecting the health and
booked. touring director for &Beyond, a ous contact with guests whose can really say what will happen, safety of her family and not being
Next summer, South Africa-based travel company stays were canceled and already because the course of the corona- able to secure a space at the loca-
that is. that arranges high-end tours in taken about a dozen bookings for virus remains so uncertain: “Book- tion of her dreams in the country
Dr. Pilla, a retired pediatric den- Asia, Africa and South America. He next summer. ings don’t always mean travelers.” where she was raised.
tist from New York, was supposed says 89% of clients with trips up- Susan Howell shares that uncer- The New York-based invest-
to go to Russia with her husband ended by the virus have rebooked tainty. She was scheduled to go on ment banker planned a wedding
and another couple in April. When the same itineraries for 2021. The a two-week journey with her fam- with 175 people at Dromoland
the coronavirus pandemic made
that impossible, she rescheduled
the exact same itinerary, including
private tours and hotels, for late
lodges and camps the company
uses have limited space, and
they’re also seeing new bookings
for next summer on top of the
89%
Clients of a South African travel
ily to South Africa and Botswana
this June to celebrate her daugh-
ter’s acceptance to medical school.
In April, the travel company she
Castle in Ireland’s County Clare.
When she started looking into re-
scheduling it, she found many of
the people she’d hired, such as
May 2021. Then, just to be safe, postponements. company that have rebooked for 2021 booked through told her she would the photographer, makeup and
she also reserved a vacation to Kensington Tours of Wilming- lose her deposit of $14,000 if she hair artists and the band, were al-
Sicily for June 2021. ton, Del., has already rescheduled canceled the trip because even ready filling up fast with bookings
“I definitely believe we’ll be up thousands of bookings since Janu- though the borders of the coun- for next summer.
and running by then, and I don’t ary, most to Europe and Africa, for In a study released earlier this tries were closed, the camps were Instead of June, as was planned
want to miss out,” she says. next year. “They spent months month, Tripadvisor reported that still planning on being open in this year, Ms. Carr picked a date in
Looking forward to next sum- planning, so there’s an emotional over a third of consumers surveyed June, and the borders might re- September.
mer? Then it might be a good idea attachment to where they were go- in late March reported rescheduling open by then. She says the hotel and all the
to start looking now. Travel agents ing,” says Alison Hickey, the com- a trip due to Covid-19 rather than Her travel insurance, which in- vendors honored the same rate she
say the majority of their clients pany’s president, who has dubbed canceling it, with another quarter cluded trip cancellation, didn’t would have paid this year. She ex-
are postponing, instead of cancel- it the Do-Over Trip. planning to reschedule a canceled cover a pandemic. pects almost all the guests will
ing, the big international trips “Last year we never would have trip at a later date. Two in five “I was in a bind,” says Ms. How- still attend, in part because they
they’d planned to take this year. had people making reservations a travelers said they rescheduled as a ell, who owns a custom home- will be much more grateful about
Worried about lost deposits, and year in advance,” says Jannes Soe- result of the travel restrictions or building company with her hus- being able to get away. “It will be
still eager to celebrate the occa- rensen, the general manager of the because their chosen destination band based in Lawrence, Mass. In even greater to be able to cele-
sions behind the expeditions, many Beaumont, a 73-room hotel in the was closed for visitors. mid-May, the travel company told brate,” she says.

FAMILY & TECH | JULIE JARGON


WHEN MY 10-year-old son re- ings to videogames and flags those
cently encountered a young adult where players can interact online.
making rude comments in a game
of “Minecraft,” he and his friends
told the interloper to leave their
Teach Kids How to Talk “The whole stranger-danger
movement did more to create anxi-
ety in children than it did to pro-
“world.” When he didn’t, my son
exited the world, resulting in all
to Strangers Online tect them,” said Michael Rich, di-
rector of Boston Children’s
the other players being booted. Hospital’s Center on Media and
Then he blocked the man from Child Health. “If you turn everyone
ever playing with him again. you don’t know into a danger, you
When he told me, I live in a pretty scary world.”
wasn’t horrified that Stranger-danger is rooted in
he was so exposed to highly publicized kidnapping cases
strangers online. In of the 1980s and resurfaced in the
fact, it provoked a early internet days. Those fears con-
feeling of pride. Why? tinue to shape how we parent and
Because it showed me view technology. So how do we let
that he’s learning how to spot bad go of them and prepare kids for lives
actors and deal with them. that are increasingly led online?
This wasn’t the first time he Experts I spoke to suggest a
ILLUSTRATION BY DAN PAGE

came across a stranger saying or graduated approach to allowing


doing things he didn’t like in an online interaction. Young children
online game, and it likely won’t be might be allowed to communicate
the last. He once blocked a teen- only with adults and friends their
ager who shared what my son only parents know and trust. FaceTim-
described as an inappropriate ing grandparents or texting friends
photo of his girlfriend. He has through a parent’s phone, or even
blocked others for swearing. an app with stringent safety fea-
At first I was uncomfortable. EXPERTS HAVE NEW ADVICE ABOUT MEETING AND INTERACTING WITH FRIENDS ONLINE tures, are ways to start. Later, par-
Wouldn’t it be better if he never ents can limit who they can play
had to experience these incursions with online by using parental con-
in the first place? But seeing how n Review the tech options. Rosa- n Never let your guard down. Teach game or social-media post. A trols in gaming systems, and relax
he handled them made me wonder: lind Wiseman, co-founder of Cultures kids to consider online-only friends as stranger who starts chatting about the controls as children get older
Are we doing children a disservice of Dignity, which supports the well- always on probation. “People who are personal things is a red flag. and demonstrate maturity.
when we lock everything down? Are being of young people, suggests sit- good at grooming kids are sophisti- At around age 10 or 12, “the
we better off giving them some free ting down together to look at how to cated enough to bide their time and n Don’t go off-platform. If some- training wheels start to come off a
rein and helping them develop the block, mute or report online players appear to be something else until kids one asks your child to go into a bit, and we go from using parental
digital smarts to navigate online who make them uncomfortable. “That let their guards down,” Dr. Rich said. one-on-one direct chat or another controls to online safety tools,”
safely, knowing we can probably shows them how to build compe- messaging service where there’s no Mr. Balkam said.
pull back if necessary? Could it pos- tence and prepare for if something n Stay on topic. It’s important to warn moderator, your child should know The tools my son used involved
sibly be a good idea to let kids in- happens,” she said. kids against veering off topic in a better than to follow. being able to immediately remove
teract with strangers? and permanently block someone
To gut-check myself—and to who isn't playing nicely. Although
make sure I’m not steering readers Family Online Safety Institute. sary to intervene on kids’ behalf, restaurants. It’s how we interact I’m proud of how he handled the
wrong—I called several experts in As the line has blurred between and even shut something down that matters, experts say. Just like situation, I don’t have blind faith
online safety. They confirmed that our online and offline worlds, ex- when there’s evidence of predators we tell our kids not to get into a that he will always make the best
there’s a rethinking of the conven- perts are advising parents to in their midst. Parents must re- car with, or accept candy from a decision. He is, after all, still a
tional wisdom around stranger weigh risks and rewards, and help main vigilant about that, especially stranger, we should emphasize to good 15 years away from having a
avoidance. children manage risks to get the now, when kids are spending more them never to reveal personal in- fully developed prefrontal cortex.
“I’ve been in this field since the rewards of playing games online time online than ever. formation to strangers online. His gaming console is in the
mid-90s when the advice was, or meeting people on social media, But a general rule to never talk “What we’re teaching our kids is family room, where we can hear
‘Don’t talk to strangers online.’ In Mr. Balkam said. “The way to be to strangers online seems as mis- to be respectful, and when they’re him talking while he plays. My
the 25 years since, the messaging risk-free is to disconnect all the guided and unrealistic as a rule to not being treated respectfully to husband joins in at random times,
has evolved and changed as the devices and switch off the router never talk to strangers in the real use the tools at their disposal,” said identifying himself as the dad, so
online world has evolved and until they’re 18. But then you take world. Pre-pandemic, we inter- Patricia Vance, president of the En- he understands who our son is
changed,” said Stephen Balkam, away all the rewards.” acted with strangers every day—at tertainment Software Rating Board, playing with and the players know
founder and chief executive of the There are times when it’s neces- the grocery store, in the park, in which assigns age and content rat- there’s an adult around.
A12 | Wednesday, June 24, 2020 THE WALL STREET JOURNAL.

LIFE & ARTS

Quarantine Pals
Are in Demand
For Screen Roles
Directors try to limit risk of contagion
by casting actors’ relatives in series
BY ELLEN GAMERMAN a working actor, liked the idea of
shooting in their London home.
ACTORS, MEET your new scene “The most fun experience was
partners: Mom and Dad. knowing the set very well and be-
Performers who live with other ing able to walk around freely, go-
people are among the lucky few ing to your room as if your room
getting work right now. Spouses, was your trailer,” he said.
roommates, children, parents and When the episode was about to
pets have emerged as the ultimate air, Mr. Marsan felt more excited
co-stars, able to perform close to than he had in decades. His children
each other at a moment when very had shared his professional world.
few others can. “It felt like my first gig again.”
A scene “can never really come In the original script for an-
alive until there is an actual hu- other episode of “Isolation Sto- Robert Glenister and his son, Tom, in an episode of ‘Isolation Stories.’ Below, Tara Summers, left, and Sienna Miller, who
man to engage with,” said Sienna ries,” a young woman cares for spent part of the lockdown with others in a house in upstate New York, performed in the ‘24-Hour Plays’ series.
Miller, who recently appeared op- her sick father. But the concept
posite longtime friend and fellow changed when Robert Glenister
actor Tara Sum- got the part of
mers in a piece the senior citi-
for the “24-Hour zen. Mr. Glenis-
Plays” series on-
‘We’re father and son, so ter does have a
line. Ms. Miller there was a shorthand,’ daughter who
chose to ride out
the crisis by iso-
said Robert Glenister of acts, but it was
his actor son
lating herself in acting together. Tom Glenister,
a house with six 24, who nabbed
other people, the role because
most of them ac- he was the one
tors, in upstate New York. “When living at home.
the lockdown began, a group of us “We’re father and son, so there
decided to form a little commune.” was a shorthand,” said Robert
A talented germ bubble is help- Glenister, 60. Without much time to
ful as the entertainment industry rehearse, he said, “there was an un-
takes slow and halting steps to get spoken understanding between us.”
back to business. Last week, the When Lauren Greenhall was
CBS soap opera “The Bold and the casting her 35-minute YouTube
Beautiful” returned to set for the beauty-contest spoof “The Miss
first time since mid-March, but Quarantine Pageant,” she searched
production paused the next day to for two comedians to play room-
refine Covid-19 testing procedures mates. After running through a list
for the cast and crew. of married actors, she knew she
The idea of a ready-made cast— wanted Courtney Maginnis. But
also known as a family—appeals to she felt extra confident because
some producers. she liked Ms. Maginnis’s newlywed
“We needed actors, plural, all in husband, Casey Salengo. “It wasn’t
one address isolating together,” like if I got her I would be stuck
said Jeff Pope, a producer of the with a lemon. I knew both would ally enjoyed it and loved spending a In the show, a lockdown comedy ments include Zosia Mamet and
recent ITV/BritBox lockdown be really good.” lot of time with my wife.” filmed over Zoom about stage ac- Evan Jonigkeit, Becky Ann and Dy-
drama “Isolation Stories,” which Ms. Maginnis plays a pageant Working with a significant other tors rehearsing a play remotely, lan Baker and John Gallagher Jr.
premieres in the U.S. this week. contestant stuck with a roommate can be tricky, especially in a new re- Mr. Tennant deliberately portrayed and Libby Winters.
Actor Eddie Marsan seemed like who annoys her, portrayed by Mr. lationship. Comics Taylor Tomlin- a simpering version of himself. “I “We’re both in a creative desert
a logical choice, with two sons, Bo- Salengo. “We’d been quarantined for son, 26, and Sam Morril, 33, had was much more sympathetic to right now because we can’t work
dhi and Blu, around the age of the many weeks—I don’t know if there been dating five months when the David—I wouldn’t be in real life,” in the real world, so it’s nice to be
boys in the script. Mr. Marsan was a lot of digging,” she said of her virus hit. They decided to shelter in said Ms. Tennant. able to make things together,” said
signed on after his sons agreed to efforts to get into character. Mr. Sa- place together at Ms. Tomlinson’s Co-star Michael Sheen’s partner, Ms. Mamet, who spent an after-
the idea. Bodhi Marsan, 12, already lengo didn’t miss a beat: “I person- Los Angeles home. Early in quaran- Anna Lundberg, made her TV debut noon wandering outside her up-
tine, they posted Instagram skits in the show. The women held their state New York home covered in
about their lockdown experience. own, a critic for the U.K’s New fake blood for the series.
Suddenly, two people used to Statesman wrote, describing “the Married actors Crystal Dickin-
being alone and working on the joy of seeing both actors’ partners, son and Brandon J. Dirden ap-
road were thrust into an intimate Georgia Tennant and Anna Lund- peared in a “24-Hour Play” that
FROM TOP: BRITBOX; THE 24 HOUR PLAYS; BBC/GCB FILMS/INFINITY HILL

domestic life. “To do this during a berg, out-acting the men.” used their own kindergartner
global emergency is terrifying and Performing in a house under Chase as a prop. In the comic
stressful and also kind of hilarious lockdown can be challenging. short, the couple battles over his
in how sci-fi it all feels,” said Ms. While trying to record their scene convoluted math problems for
Tomlinson. The couple said they in an attic, Ms. Miller and Ms. home-school. As the grown-ups
never would have been so public Summers had to dodge the occa- lose their sanity, 6-year-old Chase
with their relationship were it not sional photo bomber. “There was a delivers a long deadpan look into
for the pandemic. cat and a dog in the house,” said the camera.
When the idea of the recent Ms. Summers. “It was tricky trying Chase, who isn’t a professional
BBC series “Staged” came along, to stop the animals.” actor, was sometimes caught off
actor couple David Tennant and The “24-Hour Plays” series has guard by his new job. When his
his wife, Georgia, jumped at the been popular with actors shelter- parents rehearsed, he thought they
chance to participate after weeks ing in place together. The short were really fighting. And he was
cooped up at home. scenes, normally performed on no fan of endless takes. At one
“We’d been doing home school- stage but now a nearly weekly fix- point he told his mother: “I think
ing for a long time, and we were re- ture online, require a playwright, you got what you need.”
ally eager to not do that for a min- director and cast to complete a But he delivered. “I talked to
ute,” said Ms. Tennant, who has five new work in a single day. him like a real actor,” Mr. Dirden
Georgia and David Tennant in the BBC’s ‘Staged,’ a series filmed over Zoom. children including a new baby. Actor couples in recent install- said, “and he got it.”

MY RIDE | A.J. BAIME

Riding the BMW Motorcycle That 007 Made Famous


Atlanta-based Brooke Wilson, woman pulled out in front of me. I C. It was not going to be easy; 3½ hours there. I remember sitting for a 1998 BMW R 1200 C in Law-
43, an independent marketing con- T-boned her vehicle, and while I BMW only made the bike for about in the car with my gear on, helmet renceville, Ga. This was in 2012,
sultant and author of the Biker was fine, the bike was totaled. I was six years starting in model year in my lap, cash in hand. We got to and I still have that text. I wrote
Brooke Blog, on her 1998 BMW R heartbroken. I got an insurance 1998. You don’t see a lot of them. Asheville and the bike was a dud. I back, “This has to be a joke. The
1200 C, as told to A.J. Baime. check and while I could have gotten Through Cycletrader.com, I was so dejected. As we drove ad says the bike only has 749
just about any bike, I immediately found one in Asheville, N.C., and I home, all the sudden I got a text miles on it.”
I love city living. But one of the started hunting for another R 1200 convinced my mother to drive me from a friend with a Craigslist link My mother drove me straight to
great things about Atlanta is how Lawrenceville. The owner lived on a
fast you can be in the wilderness dirt road, and he had this garage
on a motorcycle. The Great Smoky full of car parts. He led us to the
Mountains, the Blue Ridge Park- back and there was this pristine
way, amazing roads in northern bike—the same model year, even
Georgia, North Carolina, and Ten- the same color as my first BMW. I
nessee—all of it is reachable on a asked, “How is it that this 14-year-
weekend trip, and there are camp- old bike has only 749 miles on it?”
grounds all over, some specifically He explained that he threw out his
geared for motorcycle riders. back shortly after he bought it and
When I started riding in 2000, all his wife now convinced him to sell
I knew was Harley-Davidson, and I the thing. We agreed on $6,500 and
bought a Sportster. But when my he was so excited that the bike was
Harley was stolen in 2006, a friend going to a good home, he gave me
recommended the BMW R 1200 C. all these bags and accessories. It
It was known for being the bike was a once-in-a-lifetime find.
James Bond rode in “Tomorrow With all the sad news about the
Never Dies.” I liked the idea of reli- pandemic, the bike has been a sav-
AUDRA MELTON FOR THE WALL STREET JOURNAL

able German engineering, but the ing grace. We have had glorious
bike also had that cruiser look and weather, and my friends and I have
feel I love. The bike was built for been riding more than ever. Even in
the kind of riding I wanted to do, campgrounds you can be social dis-
and it didn’t hurt that it had a little tancing. The camaraderie is a great
007 magic. I bought my first in part of it. There’s nothing like a
2006, a 1998 R 1200 C, and started cold beer around a campfire with
taking it on camping trips in the friends after a long ride.
mountains. I figured out how to Every now and then a stranger
carry everything I needed to sustain will approach me and say, “Hey,
myself, on this bike. is that that James Bond bike?”
In 2012, I was riding when a Atlanta resident Brooke Wilson with her 1998 BMW R 1200 C, which she uses for weekend camping trips in the region. Yep, it is.
THE WALL STREET JOURNAL. Wednesday, June 24, 2020 | A13

LIFE & ARTS


Bryan Lee, Joel Link, Milena Pajaro-van
de Stadt and Camden Shaw of the
Dover Quartet, left; pianist Aaron Diehl
at the Newport Jazz Festival, below

canceling entire summer festivals.


Few classical promoters recognize
that this year’s absence of stadium
and festival concert tours by pop/
rock icons opens up an opportu-
nity to get into the headspace of
potential new audience members
before they all gravitate to the pop
stars’ digital replacements. To do
so they need to focus attention on
one of classical music’s biggest as-
sets: its own tremendous inven-
tory of recordings and videos of
real, not virtual, performances.
FROM TOP: ROY COX; NIC ANTAYA/THE BOSTON GLOBE/GETTY IMAGES

Now is an ideal time for


promoters to get into the
headspace of potential
new audience members

So enough already with the pan-


demically clever Zoom ensemble
performances. It’s time to push out
the good stuff to new fans. This in-
cludes transitional pop-to-classical
material—such as daring videos by
the flamboyant piano duo of Greg
Anderson and Elizabeth Joy Roe,
CULTURAL COMMENTARY covers of pop anthems by the Phil-
adelphia-based Dover Quartet, and

Classical’s Opportune Moment


bluegrass-inflected new works by
Kentucky-born classical violinist
Tessa Lark.
On Broadway, some theaters
have reportedly considered one-
person shows as part of their
The pandemic offers the music genre a chance to reinvigorate itself ramping back up. That may be
minimally appealing for the theater
BY DAVID ROHDE audience, but classical music has a
ready-made, long-legitimized ver-
THE CORONAVIRUS pandemic is sion of the one-person show—the
a rolling catastrophe for all of the piano recital. More than one era
performing arts, and arguably the has been labeled the Golden Age of
genre that could suffer the most is the Piano, and with symphony or-
classical music. Yet the path back chestras struggling to figure out
to live performances draws atten- social distancing on stage, the time
tion to what the classical-music may be ripe for another one.
world has put off, mismanaged or Following World War II, Ameri-
allowed its own insecurities to cans didn’t just pack concerts by
block out. So the crisis could end European imports Arthur Rubin-
up as a blessing in disguise. stein and Vladimir Horowitz. The
In many places in America, the postwar period also saw the rise
classical audience is a snapshot of of the OYAPs—the Outstanding
the most vulnerable population for Young American Pianists, so la-
bad Covid-19 outcomes. But tell beled from a cliché phrase in many
concert presenters that it’s a prob- of their reviews. Of course, back
lem that their ticket holders are then, all of the OYAPs were young
overwhelmingly senior citizens, white guys. Today’s OYAPs include
and they’ll either tell you that it’s Aaron Diehl, an African-American
always been this way or they’ll classical/jazz crossover artist;
brag that they brought 150 high- Daniel Hsu, a native-born Califor-
school students to their last con- nian in his early 20s with aston-
cert in February. ishingly mature interpretations of
Yet it hasn’t always been this the traditional repertoire; and
way. Check the photos of any clas- other male and female keyboard
sical-music audience in the U.S. artists from diverse global heri-
from the 1950s to 1980s, and no- tages who bring their own unique
tice all the people who look like vibes to the concert stage.
they either came from the office If classical music wants to be a
or left the kids at home with a rel- big part of the future cultural pic-
ative or babysitter. Before the world blew up, a se- easy access to a much wider variety cup of coffee that morning. Tell ture, it can use some of its formats
And what about those high- lect few orchestras around the of music—with the 50 or so sub- me you are not blown away. But in to start returning sooner than
schoolers? Egged on by grant-dis- U.S., including the Seattle Sym- genres of “rock” music—than the acting as your influencer, I’ve other genres and get some ear-
pensing organizations, many con- phony and the Los Angeles Phil- tyranny of the Top 40 radio format saved you from the mountain of worms into new listeners’ heads. It
cert presenters paper their harmonic, had been seeing recent that greeted the baby boomers. inside-baseball program notes that will put the field in better shape
audiences with free tickets for stu- success in attracting an urban and Trying out something new comes you would have been handed in than it had been coming into this
dents compelled to show up in the near-suburban core of younger naturally to younger Americans if the concert hall about what this historic upheaval.
concert hall. These programs have adults to their regular concert se- they have a trusted endorser. music “means.”
merit in themselves, but they do ries. One of their insights in doing Try this experiment right now: Younger music fans know that it Mr. Rohde has conducted musicals
not solve the problem of getting so was to stop confusing the fact Go to YouTube and pull up any was the cancellation of spring and from “Oklahoma!” to “Rent” and is
millennial and adult Gen-Z ticket that younger adults don’t know video of the Dmitri Shostakovich summer tours by pop artists— a collaborative pianist, teacher
buyers to willingly fork over even classical music with the idea that Symphony No. 10, Second Move- from Taylor Swift to Alicia Keys and writer based in Washington.
$10 to spend an evening with the they don’t like classical music. ment. It’s over in five minutes, or and Journey to Justin Bieber—that He can be reached at
local orchestra or string quartet. Americans today grow up with four if the conductor had an extra started driving venue closures and @DavidBachToRock.

TELEVISION REVIEW | JOHN ANDERSON

An Epic of True-Crime
Obsession
“I’LL BE GONE in the Dark,” an the Dark”—words the GSK whis-
epic true-crime story for true- pered in a victim’s ear—will pro-
crime junkies, is also about a true- vide plenty.
crime junkie: Michelle McNa- Directed principally by doc vet-
mara—journalist, internet sleuth eran Liz Garbus (of last year’s first-
and “citizen detective”—whose rate “Who Killed Garrett Phillips?”)
posthumously published book along with co-directors Elizabeth
about her personal obsession, the Wolff, Myles Kane and Josh Koury,
“madman” she dubbed the Golden “I’ll Be Gone” isn’t just a story
State Killer, is the basis for the six- about unspeakable crime, though
part series. “I had a murder habit there’s plenty of that. There are
and it was bad,” she says. After an also remarkably courageous survi-
episode or two, viewers may find vors willing to talk about their hor-
they have a similar problem. rific experiences. There is much
“The great tragedy to me about time spent on McNamara’s obses-
this case is that it’s not better sions, not just with crime as an act,
known,” McNamara is seen saying but with the wreckage wrought on
during an interview in 2011, at victims’ lives, the holes that un-
which time she was on the virtual solved cases leave in the social fab-
trail of a figure known by the acro- ric, and the new opportunities pre-
HBO

nym EAR/ONS—the East Area Rap- sented by technological innovations


ist/Original Night Stalker, also —namely, the internet and DNA Writer Michelle McNamara, who helped solve the case of the Golden State Killer
known as the Visalia Ransacker, testing—that can help to solve the
who was eventually credited with previously unsolvable. “Somebody part a well-executed juggling act Woman’s Obsessive Search for the way that had never been done and
three separate crime sprees in the can now be wheeled out of their as well as a thoughtful examina- Golden State Killer,” was com- leading—through her True Crime
Sacramento and San Francisco ar- house for something they did in tion of the criminal justice system pleted after her 2016 death by fel- Diary website and subsequent pod-
eas between 1974 and 1986, and ul- 1957,” she says, with a mix of won- and its flaws, but sometimes the low crime journalists Paul Haynes cast—a group of like-minded, simi-
timately 50 rapes and at least a derment and satisfaction. celebration of McNamara throws and Billy Jensen and her husband, larly compulsive people doing the
dozen murders. McNamara coined She was also a person—no sur- matters off balance, and the focus comedian Patton Oswalt, who ap- same. Unlike the police, who inves-
the term “Golden State Killer” in prise—who liked puzzles, and the on where her obsessive nature pears throughout and whose mem- tigate crime as a job, McNamara
2013, at which point a suspect had one the filmmakers had to grapple would lead takes a little time to ories provide a palliative to the and company did it for what might
not yet been arrested. Those who with was integrating her story make sense. Is her book deadline, terrors being retold and re-en- be described as love. And, as we
can’t stand the suspense can em- with that of serial rape and mur- for instance, of any great signifi- acted. As Mr. Oswalt explains, as come to see, because they basi-
ploy McNamara‘s tool of choice— der in a way that wouldn’t feel cance given the gravity of the no one else likely could, McNa- cally couldn’t help it.
Google—to learn the current dispo- grossly out of proportion. Or ex- cases she’s writing about? Not re- mara was blazing a trail, using the
sition of the case. For those with an ploitative. Or just wrong. “I’ll Be ally. But have patience. internet in a way it had never I’ll Be Gone in the Dark
affinity for tension, “I’ll Be Gone in Gone in the Dark” is for the most That book, subtitled “One been used, investigating crime in a Begins Sunday, 10 p.m., HBO
A14 | Wednesday, June 24, 2020 THE WALL STREET JOURNAL.

SPORTS
Washington Hates Its NFL Team’s Name
City officials want the league’s social justice drive to take out the racial slur in the local team’s name
BY LOUISE RADNOFSKY elected officials of the city whose
AND ANDREW BEATON name is the only portion of the
team’s name they’ll say—when

T
Washington they’re not calling it “that R-word.”
he National Football It isn’t clear what else it would
League’s intensified ef- take for him to change his mind
forts to show its social about it. He’s also had help.
consciousness during a In the past, the NFL attempted to
time of reckoning over defend the name. In 2018, Goodell
systemic racism have bypassed one pointed to a Washington Post poll
glaring instance: the racial slur that about the name he described as
one of its teams uses for a name. “overwhelmingly positive” in sug-
The name of Washington’s team, gesting that Native Americans don’t
owned by Dan Snyder, has long find the name offensive. The poll
been the hardest icon to topple in showed nine in 10 Native Americans
sports, even as national and corpo- don’t see the name in a negative
rate pangs of conscience have taken way. In a 2013 letter to Congress,
out Aunt Jemima, “Gone With the the commissioner described the
Wind,” Confederate flags in Nascar name as a “unifying force.”
and Confederate statues in cities. More recent data suggests past
The same nationwide movement research underestimated Native
prompted NFL commissioner Roger Americans’ opposition to the name.
Goodell to deliver the league’s most One study in the past year showed
strident anti-racist message after a 49% of Native Americans were of-
group of the game’s most promi- fended by it, and that climbed to
nent players called out the league 67% among people who strongly
to do more. identified as Native American.
But that statement has made it The Supreme Court in 2017 ruled
difficult to reconcile its silence over that the government couldn’t reject
one issue it can control. The league trademarks that might be consid-
is amplifying messages to combat The NFL wants to fight racism but has remained silent about a team name that advocates and politicians call racist. ered disparaging or offensive,
racial injustice amid calls that one boosting the team in its effort to
of the game’s most prominent fran- comment for this article. The league back in the city under the current Kennedy Memorial Stadium—not at save its trademarks after the U.S.
chises employs a derogatory nick- and Goodell have in the past vigor- name. (The team’s current stadium the hands of protesters, but rather Patent and Trademark Office can-
name for American Indians and an ously defended the name. is in Maryland.) It could also stoke Washington’s convention and sports celed them in 2014.
eyebrow-raising image on its logo. The team’s most prominent cor- unrest among the league’s activist authority, which does business as The Washington Post has contin-
“One wonders if Dan Snyder can porate sponsors—FedEx, Bank of players, one of whom already Events DC. ued to use the name in its reporting
hold out much longer, in the face of America, Bud Light and Pepsi— brought up the issue recently on so- The authority said in a statement (as has The Wall Street Journal).
what looks as if it is a revolutionary didn’t comment when asked how cial media. that “removing this statue is a small Last week, however, the Post edito-
change in what people will anymore they felt about associating their “It needs to happen,” said one and an overdue step on the road to rial board published a call to
tolerate,” said Eleanor Holmes Nor- brands with the name in this cli- high-ranking league executive, who lasting equality and justice.” “Change the name of the Washing-
ton, Washington, D.C.’s nonvoting mate. But privately, people inside did not want to be identified dis- Washington was the last NFL ton NFL team. Now.”
delegate in Congress. “I understand the game say the name change cussing another team’s business. team to integrate in 1962—and did Many Washington, D.C., officials
that the word ‘Redskins’ is not must occur, though they also con- Even beyond the name, racism in so only after the Interior secretary at say they’re at a loss over what more
about an African-American, but it is tinued to say it’s up to Snyder, the team’s past has been prominent the time, Stewart Udall, threatened they could do to get a new name.
equally racist and equally opposed who’s vowed never to change it. in the past week. A monument to Marshall by telling him he would re- “The NFL, the league, needs to just
by African-Americans.” His continued refusal to do so former owner George Preston Mar- voke the lease on the D.C. stadium. say, either you do this or you’re no
It’s the one issue nobody associ- could also stymie the team’s efforts shall, who long blocked the team Snyder has held firm despite be- longer going to be able to play in
ated with the NFL is willing to for a new stadium, which Washing- from signing black players, came ing privately disparaged by execu- this league,” said David Grosso, a
speak publicly about these days. ton, D.C., lawmakers said in inter- down early Friday morning outside tives, fiercely hated by his team’s council member who has led the
Snyder and the NFL declined to views they will refuse to permit the team’s former home at Robert F. fans and openly sneered at by the push to scrap the name.

Novak Djokovic Tests Positive for Covid-19


BY JOSHUA ROBINSON tion remains a high-risk proposi- vaccine to compete. But that re-
tion. The other positive cases were mained a hypothetical situation.
SOME 4,000 PEOPLE PACKED Grigor Dimitrov of Bulgaria, Borna This debacle underlined why tour- FROM TOP: AL BELLO/ALLSPORT/GETTY IMAGES; DARKO VOJINOVIC/ASSOCIATED PRESS

into a Croatian stadium last Sun- Coric of Croatia, and Viktor Troicki naments would need to be so cau-
day for a strange and exotic spec- of Serbia, in addition to members tious.
tacle: a live tennis match, between of their respective entourages. It has earned Djokovic little
top-level pros, in front of fans. “We organized the tournament sympathy from his fellow pros.
It was the second leg of the at the moment when the virus has “Boneheaded decision to go
Adria Tour, a string of exhibitions weakened, believing that the condi- ahead with the ‘exhibition,’ ”
through the Balkans organized by tions for hosting the Tour had tweeted Nick Kyrgios. “Speedy re-
the No. 1-ranked men’s tennis been met,” said Djokovic, who con- covery fellas, but that’s what hap-
player Novak Djokovic. With the firmed on Tuesday that he and his pens when you disregard all proto-
coronavirus ebbing in the region, wife Jelena had both tested posi- cols. This IS NOT A JOKE.”
the series was supposed to be a tive at home in Belgrade, Serbia. During the tour, Djokovic and
step toward normalcy for a sport “Unfortunately, this virus is still his guests had done all sorts of
that has been shut down since present, and it is a new reality that things that were normal before a
mid-March. we are still learning to cope and global pandemic and completely Novak Djokovic had recently organized a string of charity tournaments.
Within 48 hours the tournament live with.” cringe-inducing in the middle of
had turned into something else: a Djokovic’s attitude toward the one. They embraced at the net af- never wearing a mask. to take—if we weren’t already—to
fiasco. Four of the players, includ- virus had already made headlines ter matches. They played pickup This latest flare-up may give the take this extremely seriously,” said
ing Djokovic, have since tested pos- once during the tennis shutdown basketball. They partied in a Bel- sport’s globe-trotting players more Andy Murray, who is playing an ex-
itive for Covid-19, sending a sharp when he said he would consider grade nightclub, where videos reasons to wait before resuming hibition in the U.K. instead of gear-
warning to the rest of the sports staying home if tournaments began show them limbo dancing, occa- play around the world. ing up for Wimbledon, which
world that any return to competi- requiring that players receive a sionally without shirts on and “It’s kind of a lesson for all of us would have started on June 29.

Weather The WSJ Daily Crossword | Edited by Mike Shenk


Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
50s d t
Edmonton 70s <0 1 2 3 4 5 6 7 8 9 10 11 12 13 66 “Fiddler on 27 Fool’s lack
70s 60s 60s 70s the Roof”
0s 28 Battleship letters
60s Vancouver
Vancouver Calgary
l
Calgary 60s 14 15 16
matchmaker
80s 70s 10s 29 Shopping cart’s
Seattle ip
Winnipeg 80s 17 18 19 67 Digs in a forest path
60s 50s 20s
20 21 22
Down 30 Org. that
Por
P d
Portland Montreal 30s
Helena
Bismarckk 1 “Insufficient facts supports shelters
80s 90s Ottawa 40s 23 24 25 26 27
Eugene
A g t
Augusta always invite 32 “Glengarry Glen
Billings Mpls./St.
pls /St Pau
Paul Toronto 80s 50s
70s 60s Albany
A Boston danger, Captain” Ross” writer
i
Boise 28 29 30 31
oux FFalls
Pierre Sioux k
Milwaukee rtford
Hartford 60s speaker 33 Mayo masses
70s 90s t
Detroit Buffalo
New Y
Yorkk 70s 32 33 34 35 36 2 It might make
80s Salt LLake
ake City
C es Moines Chicago
Des h g Cleve d
Cleveland Pit
P b h
Pittsburgh 34 Ohio buckeye, e.g.
Reno Cheyenne
h you bats
70s Philadelphia
hil d l hi 80s 37 38 39
Sacramento 70s h
Omaha
p i gfi ld
Springfield 35 Be morose
Denver
h g on D.C.
Washington DC 90s 3 Like rails and
n Francisco
San Kansas d p
Indianapolis 39 Drug that’s
C d
Colorado City
Top k
Topeka
C h
Charleston h d
Richmond 100+
40 41 42 43 44 quails
Las
100s p g
Springs 90s hit
Wichita St.. Lou
LLouis L
Lou
Louisville dropped
Vega
Vegas i h
Raleigh 45 46 47 4 Tailor’s creation
h
Nashville 41 Like sriracha hot
Angeles
Los A
Ange 100s Santaa Fe Oklahoma
kl h a C City
Cit Ch l tt
Charlotte 5 Pretenses
Memphisp
48 49 50 51 52 53 sauce, originally
Ph
Phoenix A b q q
Albuquerque 80s Atl C b
Columbia 6 It shares a
San Diego Little Rock t
Atlanta Warm Rain 42 Component of
Tucson
Tucson i gh
Birmingham 54 55 56 57 45-mile border
Ft. Worth D ll
Dallas Billboard
El Paso Cold T-storms with Canada
80s JJackson
k b
Mobile Jacksonville 58 59 60 61 rankings
40s 30s 90s 7 Timber wolf
A ti
Austin 90s Stationary Snow 43 Recipient of an
Newew Orleans l d
Orlando 62 63 64 8 The Jonas award
60s 80s an Antonio
San A Houston Tampa Brothers, e.g.
50s Honolulu
l l Miami
Showers Flurries 65 66 67 44 Noted diamond
A h
Anchorage 9 Container with dynasty
70s many layers?
Ice
ADDRESSING THE BALL | By Jim Holland 10 Treated with
49 Antitheses of
angels
U.S. Forecasts City
Today Tomorrow
Hi Lo W Hi Lo W City
Today Tomorrow
Hi Lo W Hi Lo W
Across 29 Chacun ___ 47 No longer tablets
50 Proficient
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Pole, e.g. goût (to each amusing 11 Savanna
Omaha 84 65 s 88 73 t Frankfurt 81 60 s 83 61 pc 51 Rabbit hole
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice his own) 48 What to pass grazers
Orlando 94 74 pc 96 74 pc Geneva 83 61 s 85 62 t 5 Obscene follower
Today Tomorrow Philadelphia 87 69 pc 85 68 pc Havana 94 76 pc 91 75 pc material 31 Cheer for before you 12 The Everly
City Hi Lo W Hi Lo W 52 Bulls and Bears,
Phoenix 110 82 pc 110 80 pc Hong Kong 91 85 sh 90 83 t capework practice Brothers, e.g.
Anchorage 62 49 c 64 50 c Pittsburgh 75 56 t 76 58 pc Istanbul 80 68 sh 82 70 pc 10 Absurdist e.g.
movement 32 Natchez 50 “So I take it 13 Sarcophagus
Atlanta 81 66 c 83 67 pc Portland, Maine 75 61 t 82 62 s Jakarta 89 77 pc 91 76 t
serpent 53 Strong point
Austin 87 72 pc 87 72 t Portland, Ore. 79 60 c 85 60 pc Jerusalem 80 62 s 79 63 s National that’s ___”
14 Cover, in a way 55 Box office choice
Baltimore 86 66 pc 85 66 pc Sacramento 98 61 s 100 60 s Johannesburg 65 37 pc 64 40 pc Historical Park 51 One-time 21 Polynesian
Boise 96 63 pc 89 61 s St. Louis 83 67 s 90 74 pc London 88 66 s 88 66 s 15 Prize setting carving 56 Figure skating’s
Boston 82 66 t 82 66 s Salt Lake City 94 67 pc 86 63 pc Madrid 94 67 pc 95 64 s
go-between
16 Cross to bear 36 Google Maps 22 ___ soit qui mal Lysacek
Burlington 84 58 c 83 60 pc San Francisco 73 56 pc 73 55 pc Manila 96 81 t 95 80 t 54 Superior court
Charlotte 87 69 pc 88 67 pc Santa Fe 88 56 pc 92 54 pc Melbourne 61 50 pc 62 43 pc 17 Singer Redding indicator feats suggested y pense (Order 57 Cereal choice
Chicago 78 60 t 82 65 pc Seattle 74 58 c 80 58 pc Mexico City 70 54 t 75 54 t by 20-, 32- and of the Garter 58 Exciting and
Cleveland 75 59 t 77 60 pc Sioux Falls 81 60 pc 86 66 t Milan 87 66 s 84 65 s
18 Cruise 37 Some are liberal
assignment 41-Across motto) excellent, in slang
Dallas 89 69 pc 87 72 t Wash., D.C. 86 70 pc 83 68 pc Moscow 77 52 s 80 60 pc 38 Trojans’ home:
Denver 89 61 t 89 57 pc Mumbai 89 79 t 90 81 c 19 React to red Abbr. 58 Spencer of 26 Select group 59 Fin, financially
Detroit
Honolulu
76 58 pc 79 60 pc
87 76 pc 87 75 pc
International Paris
Rio de Janeiro
89 64 s 91 67 s
80 66 pc 83 70 pc 20 Atlanta’s river 39 “We should!” “Good Morning
Previous Puzzle’s Solution
Houston 84 74 t 86 76 t Today Tomorrow Riyadh 105 75 pc 109 79 pc
America”
City Hi Lo W Hi Lo W
23 Burns often on 40 “Paper Planes” J E N G A P A S O K E G S
Indianapolis 78 59 pc 82 63 pc Rome 84 63 s 82 62 s PBS singer 60 2019 Taylor E T A I L E S T D H A U L
Kansas City 84 66 pc 89 73 pc Amsterdam 84 63 s 84 66 s San Juan 90 78 sh 90 79 pc Swift album S T A R K N A K E D A S I A
Las Vegas 107 84 pc 106 84 pc Athens 82 68 s 86 72 pc Seoul 74 71 r 80 68 r 24 Merger 41 Site of Governor S U N D A E U N L I K E L Y
Little Rock 86 65 pc 86 70 pc Baghdad 108 76 pc 107 78 pc Shanghai 87 74 t 85 75 t announcement, DeSantis’s office 61 Narrow inlets L A M P O O N I S T S
D I G S I T E S T P
Los Angeles 81 63 pc 79 62 pc Bangkok 95 80 pc 95 79 t Singapore 83 78 c 83 77 t of a sort 45 Winter hours in 62 “Yeah, sure!” O S L O E R S E S T E E
Miami 93 80 pc 93 81 pc Beijing 91 69 pc 83 67 t Sydney 64 49 pc 66 48 s F L A M E N C O D A N C I N G
Milwaukee 76 60 pc 81 63 pc Berlin 79 63 pc 81 64 sh Taipei City 100 82 pc 97 80 c 25 A bunch NYC 63 Clearly shocked F E D E X WO N O N T O
F T S D N A T E S T
Minneapolis 77 61 pc 85 66 pc Brussels 84 60 s 84 64 s Tokyo 78 70 c 79 73 sh 28 Luau entertainer, 46 You might walk 64 Summit B E A M B I T I O U S
Nashville 84 63 c 87 66 pc Buenos Aires 57 45 c 55 40 s Toronto 74 54 pc 76 59 pc L I N E I T E M A P A C H E
New Orleans 86 78 t 90 77 c Dubai 104 87 s 105 90 pc Vancouver 70 57 sh 70 57 pc briefly a mile for one 65 Gap buys I D O S H E A D L I G H T S
New York City 88 72 t 85 69 pc Dublin 67 55 pc 71 58 pc Warsaw 73 63 sh 79 63 pc M E D S E L MO C R A M P
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 88 62 pc 88 67 pc Edinburgh 74 56 pc 77 57 pc Zurich 80 52 s 81 57 s P R E Y D E S I S A D L Y


THE WALL STREET JOURNAL. Wednesday, June 24, 2020 | A15

OPINION
Covid Was a Punch in the Mouth BOOKSHELF | By George Melloan

If it’s true
that America
recently re-
warning recently disappeared
from the CDC website: “In the
coming months, most of the
populations.
It’s not a slur to say New
Zealand therefore is free-rid-
sponsible for disseminating
the virus globally), it didn’t
find a case until late Febru-
Exports
corded its
two-mil-
lionth coro-
navirus in-
U.S. population will be ex-
posed to this virus.”
Good news is relative in
such circumstances. Testing
ing on the world’s efforts. Its
strategy is also highly risky,
with its own high pain quo-
tient. The legality of Prime
ary. Otherwise New Zealand
might have been another It-
aly.
Even so, the country was
And Angst
BUSINESS
fection, then has grown rapidly, and new Minister Jacinda Ardern’s ac- embarked on a traditional
WORLD
the U.S. of cases are rising much faster tions hasn’t been tested while flatten-the-curve pandemic
Trade Wars Are Class Wars
By Holman W.
late 2018 is than hospitalizations. The av- she remains popular, but her plan until voluble World By Matthew C. Klein and Michael Pettis
Jenkins, Jr.
about to get erage age of those testing popularity is not guaranteed Health Organization officials (Yale, 269 pages, $28)

C
its first case. positive has dropped. Hooray. to last. The death forecasts returned from China with an
That is, a country of 328 mil- If you can’t stop the spread, underlying her plan were unprecedented and shimmer- hina’s Communist Party gave up on running a
lion people has yet to en- then remove the elderly and ing tale of a flu-like disease communist economy 40 years ago, and the rest is
counter the virus. Or if, as vulnerable from harm’s way. being contained and elimi- history. But Matthew C. Klein and Michael Pettis argue
seems plausible, the true in- That seems to be happening. New Zealand and the nated. that China faces big problems unless it alters the policies
fection rate is understated by If a vaccine arrives, many of The Ardern government that have propelled it to great wealth and global prominence.
90%, then the U.S. of 2010 is us will come through the epi- U.S. are opposites, promptly changed to an Ironically, their argument in “Trade Wars Are Class Wars”—
about to encounter the virus demic without ever encoun- but neither had a plan “elimination” strategy and that some Chinese have grown rich at the expense of
for the first time—a country tering the virus. If a vaccine yet now finds itself on the Chinese workers and consumers—has a Marxist flavor.
of 310 million people. doesn’t materialize, delaying for the pandemic. wrong side of the latest WHO China needs a redistribution of wealth, they say.
OK, this framing may be infections will prolong lives advice, which has taken to China gets prominent display in this book because the
dubious, but it’s clear the and give doctors time to de- stressing Sweden as a model authors focus on the relationships among the three big
next 99% of the country will velop treatments. More test- likely overblown. Her econ- for living with the virus trading nations, China, the United States and Germany.
have a very different Covid ing is probably also the best omy has long depended on rather than trying to defeat But the work is both global and historical in scope and has
experience than the first 1%. way to make sure people who tourists, foreign students and it. other interesting riffs, such as one on the success of the
Nosocomial infections, those have Covid and not a cold imported experts. The cost of Which brings us back to gold standard before it was scuttled by World War I. The
caused by the health-care will be less likely to go to a keeping it closed for years the U.S. We are discovering authors weave a complex tapestry of monetary, fiscal and
system itself, especially of the wedding and spray air kisses will be vast. Herd immunity more every day about the ef- social policies through history and offer opinions about
elderly and medically vulner- in all directions. has become a catch phrase ficacy of masks, of hand what went right and what went wrong.
able, are way down. Millions Nobody started off know- but never was exactly any washing, of some kinds of so- Messrs. Klein and Pettis are mainly demand-side
of Americans may turn out to ing what the best combina- country’s strategy, yet now cial distancing vs. other economists. They admire John Maynard Keynes but don’t
have some kind of resistance tion of steps would be. New New Zealand has adopted a kinds. We are in the early in- neglect such free-market
we don’t understand. The lat- Zealand has been hailed for strategy, in effect, of herd nings of the world’s encoun- stalwarts as Adam Smith.
ter idea has caught fire be- treating itself the way the vulnerability. This will prove ter with the new coronavirus, They aren’t Marxists, of
cause of the puzzling failure world should have treated its a colossal blunder if a vaccine though the hummingbirds of course, but redistributionists.
of the virus to spread more elder-care facilities, by seal- doesn’t arrive and the rest of cable news have moved on to The thesis of their book, they
than it has and because of ing itself off while the outside the world makes its peace the subject of race relations. say, is that “rising inequality
many specific examples of world seeks to quell the vi- with the virus. At their leisure, Americans within countries heightens
people who escaped infection rus. In truth, New Zealand’s will make sense of the lock- trade conflicts between them.”
in environments where they New Zealand can do this, strategy has been every bit as downs that swallowed up In short, they believe that trade
might have been expected to though, because it’s a wealthy accidental as America’s. It three months of their lives. If wars break out because elites in
contract Covid-19. and isolated society. And un- had fewer intensive-care beds the next 99% of infections can some countries exploit workers
A realistic picture of our mentioned is a corollary: Its than its peer countries. It had be endured without impover- to promote exports and amass
virus challenge has been elu- happy ending depends on a little testing and contact trac- ishing millions of us, it will wealth. Income inequality rises
sive amid the media slogan- vaccine being developed. A ing capability. Only because it raise interesting questions not only in the exporting nations
eering and calculated political vaccine can be developed, attracts long-staying tourists about why the first 1% but also in the importing ones,
positioning of our officials. A tested and proved only rather than hopscotching couldn’t have been managed where wages are driven down by
sensible and authoritative against active viruses in large business travelers (largely re- without doing so too. cheap imports. These disparities, they
assert, fuel political demands for trade barriers.
Thus for Messrs. Klein and Pettis, the international

The Police Reform Americans Want problems of recent decades have less to do with geopolitics
than with “massive transfers of income to the rich and the
companies they control. Regular people everywhere are
Suppose Con- home state colleague, Sen. Republicans, favor allowing His research also finds that being deprived of purchasing power—and tricked by
gress wanted Tim Scott, has been stopped individuals to sue police offi- many officers have excessive chauvinists and opportunists into believing that their
to seize the and questioned by Capitol Hill cers when they believe exces- workloads, forcing them to interests are fundamentally at odds. . . . The escalating trade
moment and police on multiple occasions— sive force has been used make high-stakes decisions dispute between the governments of China and the United
make real including while wearing his against them. Given this con- while not at their best. Re- States is the most obvious demonstration of the risks.”
progress on official Senate pin—while it sensus, legislators should be ducing workloads and provid- That’s a bit of a mouthful but an interesting take on the
POLITICS police reform. has never happened to him. able to reach agreement on ing housing subsidies would subject of globalization. It is of course true that global
What would It is impossible for officers the court-created doctrine of cost money, diminishing the trade is managed by governments, some protectionist and
& IDEAS
the two cham- to do their jobs effectively qualified immunity, which potential savings from trans- some less so. It’s also true that economic oppression by a
By William
bers do? when they don’t enjoy the makes it hard to hold officers ferring some current police ruling class is no stranger to the planet. Russian peasants
A. Galston
They would trust of the communities they accountable when they violate functions to mental-health endured serfdom for 300 years. Titled British land owners
begin by tak- are sworn to serve and pro- constitutional rights. professionals and other social lorded it over their tenants. Karl Marx and Friedrich Engels
ing to heart the words of tect. But without significant services. identified a problem but weren’t very good with answers.
Abraham Lincoln, spoken at changes in police practices, Police feel besieged on all Messrs. Klein and Pettis write: “Trade war is often
Ottawa, Ill., during an epic this trust can’t be rebuilt. Majorities of both sides. Federal legislators presented as a conflict between countries. It is not: it is a con-
1858 debate with Stephen Some of these changes will should extend an olive branch flict mainly between bankers and owners of financial assets
Douglas: “In this and like require federal legislation. parties’ voters back by incorporating the Protect on one side and ordinary households on the other.” For the
communities, public sentiment And here again the American measures to hold and Serve Act into compro- authors, a “trade war” is really an extension of the tension
is everything. With it, nothing people have spoken clearly, mise legislation. This bill, created by income inequality. “Rising inequality,” they say,
can fail; against it, nothing across party lines. A ban on officers accountable. which would make targeting “has produced gluts of manufactured goods, job loss, and
can succeed.” chokeholds and strangleholds law-enforcement officers for rising indebtedness. It is an economic and financial perver-
Today, 57% of Americans is supported by 68% of all violent attack a federal crime, sion of what global integration was supposed to achieve.”
believe police in dangerous Americans and 52% of Repub- Mr. Graham, the chairman is co-sponsored by Florida They argue that the U.S. has been a particular “victim” of
situations are more likely to licans, according to the Kaiser of the Senate Judiciary Com- Rep. Val Demings, reportedly these forces: “Absorbing the rest of the world’s excess
use excessive force against poll. Requiring police to give a mittee, has opened the door on the shortlist to be Joe Bi- output and savings—at the cost of deindustrialization and
black people, up from 34% in verbal warning, when possible, to this discussion. “We don’t den’s running mate. financial crises—has been America’s exorbitant burden.”
2016. The finding comes in a before shooting at a civilian is want to deter people from go- Whatever may be done at
June poll from Monmouth favored by 89% of Americans, ing into law enforcement,” he the federal level, much of the
University. In the same sur- including 83% of Republicans. says. “But we do want to have burden of rebuilding the rela- Globalization was supposed to achieve great
vey, 76%, including 71% of More than three-quarters of a sense of accountability. And tionship between police and things for a vast range of countries, not least
whites, say that discrimina- Americans, and more than 6 in to the extent that qualified African-American communi-
tion against racial and ethnic 10 Republicans, favor requir- immunity fosters a sense of ties will fall on states and lo- for their working-class citizens. Has it done so?
minorities in the U.S. is a “big ing states to release officers’ ‘It’s really not my problem,’ calities. There’s an obvious
problem.” disciplinary records, a mea- let’s take a look at it.” Al- place to start, by curtailing
Within the African-Ameri- sure that might have saved though President Trump has the practices that serve as The inequality theme echoes Thomas Piketty, the French
can community, 30% in a June George Floyd’s life. reportedly called this issue a daily irritants and foster a economist who made a big splash a few years ago. But how
Kaiser Family Foundation poll Most Americans want to “red line,” Senate Republicans sense of injustice. These in- true is it when applied to trade? The U.S. and China have
say they were treated unfairly create stronger incentives for shouldn’t allow him to pre- clude stop-and-frisk, traffic had a symbiotic relationship for decades: We buy their
because of their race during police to do the right thing— clude its consideration. stops for minor infractions goods, and they buy our debt. Partly by welcoming foreign
the past year. Forty-one per- and to pay a price when they While federal legislation such as broken taillights, and investment and know-how, China became super-productive
cent say they have at some don’t. A remarkable 95% should reform policing, it arrests for marijuana posses- and got rich, or at least some Chinese did. It also developed
point been stopped or de- would require police to inter- shouldn’t punish the police, sion, which already has been a sizable middle class. To say that the Chinese took advantage
tained by the police on ac- vene against, and report, the who are trying to do their decriminalized or legalized in of the U.S. has a Trumpian tone but doesn’t ring true.
count of their race, and 21% excessive use of force by fel- jobs under difficult condi- 26 states and the District of Americans willingly bought Chinese goods and the U.S.
say they were victims of po- low officers, a measure that tions. For example, my Brook- Columbia. Congress willingly sold them our debt. Despite Chinese com-
lice violence for this reason. could help tear down the ings Institution colleague We have arrived at a rare petition, America had full employment before the pandemic.
As South Carolina’s Lindsey “wall of silence” protecting Rashawn Ray has proposed moment when meaningful Cheap imports may hold down wages, but wages buy more.
Graham remarked during a re- wrongdoers from scrutiny. housing subsidies to enable change backed by both U.S. What does ring true is that China is in some trouble.
cent Senate hearing, there is Seventy-three percent of more officers to live within parties is within reach, and Authoritarian regimes invariably misallocate resources, and,
something wrong when his Americans, including 55% of the communities they serve. we dare not miss it. as the book details, the Communist Party has excelled at
economic waste. Its state-owned enterprises have run up huge
bank debts, many of which yield no interest and won’t be

Every Dog Has His Day in Court repaid. Indeed, the country is swimming in debt. The authors
say that “tightening credit” is needed but add that it could
end up “strangling investment before complementary
By Randy Maniloff In Twigg v. Ryland (1884), that interfering with dogs had posted a sign reading reforms have succeeded in lifting household incomes and

T
Maryland’s highest court up- while eating “is attended with “Beware of Dogs.” The state’s boosting domestic consumption.” If wage cuts and unemploy-
he Vermont Supreme held a jury’s decision that An- more or less danger of retalia- top dog court was uncon- ment result, China’s political system “might not survive.”
Court ruled this month drew Ryland, a butcher, was tion on their part.” cerned with technical non- Messrs. Klein and Pettis offer China some palliatives,
that Tyler Noyes could not liable for a bite inflicted John Domm was shooting compliance with the law and such as allowing collective bargaining and expanding the
seek damages from his grand- by his dog. The dog followed pool in a saloon when he was ruled that such a sign was social safety net. But although they allude to a key point,
parents for injuries sustained Mr. Ryland’s meat wagon as it bitten by a bulldog. A jury good enough, and even better, they fail to develop it. The Communist Party and its
when he was bitten by their was making deliveries. While awarded him $750. The Su- than “Bad Dog.” hangers-on have presided over an export-centered money
dog, Bobo. The decision, Mr. Ryland’s driver knew the preme Court of Illinois re- Volunteer work doesn’t help machine that created a wealthy elite resistant to change.
Bradley v. Bradley, follows a dog to be vicious, Mr. Ryland versed, concluding in Domm with only college applications. The authors are right in suggesting that the party should
long tradition of courts decid- did not. So he wasn’t respon- v. Hollenbeck (1913) that the Ask Chino, a part German have paid more attention to its own workers and consumers.
ing if owners are responsible sible in the eyes of the law. trial court misstepped when it shepherd pup. In Bermudez v. But the country’s rigid power structure prevents it from
for injuries caused by their prevented the jury from hear- Hanan (2013), a New York responding to the needs of its people. Despite some
canines. ing more about the dog’s per- court denied compensation for successful adaptations, the Communist Party still must rely
Some 200 years ago this Are owners liable for sonality. Shortly before the a serious facial bite that Chino on police-state tactics to keep itself in power. One doubts
month Connecticut’s highest bites? Depends on the attack, the dog was in a inflicted on a party guest in whether redistribution is in the cards.
court ruled in Hall v. Hall butcher shop and children his owner’s Brooklyn brown- As for the U.S. and other Western democracies—
(1820) that a dog-bite victim pooch’s personality. played and wrestled with him, stone. The judge was swayed Germany gets a great deal of attention in “Trade Wars
was not entitled to receive rode on his back and threw by photos showing Chino hav- Are Class Wars”—the authors’ arguments are even less
$175 from the dog’s owner him onto sawdust, all without ing a “loving and warm rela- convincing. These countries are advanced welfare states
that had been awarded by In Wolff v. Lamann (1900), incident. tionship” with individuals who and already practice massive income redistribution. Low
referees. a Kentucky appeals court re- A Florida statute holds he encountered as a therapy barriers and the relative absence of trade wars have
The road from Hall to versed a $1,000 jury award owners responsible for their dog for hospitals and nursing characterized their relationship for years.
Bradley is lined with thou- for an 11-year old girl who dogs’ bites, but it contains an homes. Sometimes a judge is Messrs. Klein and Pettis have written a much better
sands of judicial decisions ad- was attacked. The court ruled exception if the owner had dog’s best friend. book than their class-warfare themes might imply. It is
dressing seemingly every pos- that the jury should have been posted a sign stating “Bad worth reading for their insights into the history of trade
sible scenario of a dog gone instructed to consider that Dog.” The Florida Supreme Mr. Maniloff is an attorney and finance despite the frailty of its central thesis.
bad. But a common thread: the child was teasing the dog Court ruled in Romfh v. Ber- at White & Williams LLP in
judges taking care to ensure and attempted to take meat man (1952) that two bulldogs Philadelphia and an adjunct Mr. Melloan is a former deputy editor of The Wall Street
that the accused pooch gets a from him. The court observed were off the hook for a vi- professor at Temple Univer- Journal editorial page. His new book, “Bogus Science,” will
fair shake. that it is common knowledge cious attack since their owner sity’s Beasley School of Law. be published by Republic Books in January.
A16 | Wednesday, June 24, 2020 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Blocking Police Reform Is Now the Time to End Qualified Immunity?

D
emocrats are increasingly confident cer Derek Chauvin used against George Floyd In Pierson v. Ray (1967), the Su- cal confrontation would call into ques-
they’ll gain Senate control in Novem- in Minneapolis. Mr. Scott would condition fed- preme Court applied the common-law tion whether an arresting officer ap-
principle of qualified immunity to ac- plied too much force. Lawyers, doctors
ber, and for evidence watch how they eral grants to jurisdictions that restrict choke-
tions under Section 1983. In “Warren and engineers can take their time and
handle Republican Senator holds to when deadly force is Court Enabled Police Abuse” (op-ed, reason things out when they make de-
Tim Scott’s police reform bill Democrats may prevent authorized. Democrats want June 18), David B. Rivkin Jr. and An- cisions. They are not faced with life
this week. Democrats are sig- the Scott bill from a to make them a federal civil- drew M. Grossman call for “ending the and death decisions that must be made
naling they’ll block the bill rights violation. failed experiment of qualified immu- in the heat of the moment.
even from moving to the floor debate or amendment. Many jurisdictions such as nity altogether.” RICK MILLER
for debate, much less votes on New York, Dallas and Minne- The states can end the “failed exper- Wallingford, Pa.
amendments. apolis have banned choke- iment” without waiting for Congress to
This is cynicism squared, and it can only holds, but restraining men who are resisting act. Anything that violates Section As Messrs. Rivkin and Grossman
mean that Democrats feel they’ll pay no politi- arrests can be dangerous and difficult. A fed- 1983 likely violates state law as well. point out, Section 1983 civil-rights ac-
cal price for obstruction. Wide majorities of eral ban seems excessive. The “common law principle” may apply tions against police (and other public
to Section 1983, but the states are in officials) are for money damages. But
Americans in both parties want something Many cities also forbid “no-knock” search
control of their common law. They can who pays if there’s liability? Probably
done, but Democrats may be betting the media warrants that let police enter a dwelling with- change it by statute or by judicial deci-not the cop. The city that employed the
will blame defeat on President Trump and por- out announcement. No-knock warrants in sion. Every lawyer knows that, ever cop is usually also a defendant. The
tray the GOP as unreasonable. They may be drug raids are intended to prevent suspects since Erie Railroad Co. v. Tompkins city is normally liable for a cop’s mis-
right, but that’s unfair to the Scott bill that is from hiding evidence or arming themselves (1938), state courts and legislatures, conduct—respondeat superior. And the
a good-faith effort to nudge local police de- before police searches. Since there’s little and not the Supreme Court, have the city may well have agreed to indemnify
partments toward better practices. data on how often they are used or to what last word on the meaning of state law. the cop. The plaintiff’s attorney, proba-
Policing is a classic state and local power un- effect, it’s hard to know whether uninten- S. PAUL POSNERbly with a contingent fee agreement,
der the Constitution, so the federal role is lim- tional harm to civilians outweighs their pub- New York looks to the deep pocket—the city
ited to using money to leverage change. The feds lic-safety benefits. (which may be insured; insurance isn’t
Messrs. Rivkin and Grossman miss a free). Ultimately, it’s usually the city’s
contribute a small share of police budgets—a Mr. Scott’s bill would require states and cit-
major discrepancy when comparing taxpayers, not the cop, who pays. Thus,
mere 6% in New York City—but the money can ies to report data on their use to the Attorney police work to other professionals who by providing qualified immunity to the
matter if it’s tied to desirable policy. General. The AG would publish a public report are denied qualified immunity (medical cop, qualified immunity provides pro-
i i i on their use so states and cities can decide for professionals are granted qualified im- tection to the taxpayers. Qualified im-
The Scott bill sensibly stresses data collec- themselves whether and when they should be munity under Good Samaritan stat- munity isn’t a defense in a criminal
tion, which shouldn’t be controversial. His bill used. Democrats want to ban them. utes). No other civilian profession re- proceeding against the cop.
would require state and local governments to Democrats also believe that police brutality quires the frequent exertion of physical RICHARD T. FRANCH
report each year to the FBI’s National Use-of- against blacks is caused by systemic racism, force to achieve its goals. Every physi- Biltmore Lake, N.C.
Force Data Collection on police interactions though most evidence indicates that officers
that cause death or serious injury. Some police use excessive force due to panic or poor train-
departments already report this information, ing. Mr. Scott’s bill directs the Justice Depart-
but more data from more agencies could in- ment to develop a program to train officers in U.S. Should Return to the Iran Nuclear Deal
form training. how to de-escalate confrontations and respond Concerning your editorial “Iran’s pressure policy is nothing more than
Democrats want to go much further and re- to suspects with mental illnesses. Pre-Deal Deceptions” (June 10): The keeping the illegal sanctions in place
quire law-enforcement agencies to report traf- i i i JCPOA, or Iran nuclear deal, ad- with the aim of putting pressure on
fic stops and pat-downs by the race and ethnic- There are other differences, many of them dressed every concern regarding any the Iranian people.
ity of both the officers and civilians involved. worth debating. But that’s the point—debate peaceful nuclear work conducted by This policy has certainly affected
Their goal is to use a paint-by-colors “dispa- them. A Democratic filibuster would prevent the Iran. After two years of intensive ne- our economy and prevented—
rate impact” analysis to show “patterns and Scott bill from getting to the floor where Sena- gotiations all parties were satisfied through its bullying tactics and ille-
practices” of policing. This will make it easier tors could offer amendments and the Senate that all issues, including the possible gal extraterritorial sanctions—other
for the Justice Department to sue local police could work its will for a change. The GOP seems military dimensions (PMD) file which countries from conducting normal
departments under the 1994 Violent Crime united behind Mr. Scott’s bill so it would prevail was closed by IAEA in 2015, were ad- trade with Iran, but Iran is most as-
dressed. Your implication that they suredly not on its knees, is not beg-
Control and Law Enforcement Act. most of the time. But the House is also moving
were not is fallacious, and presum- ging for renewed negotiations and
Attorney General Eric Holder used this law a more command-and-control bill that Senate ably not endorsed by those countries will not ever negotiate its entirely
to obtain court-imposed consent decrees that Democrats favor, and differences could be that not only signed on to the deal, defensive missile program or its le-
federalized law enforcement in the likes of Bal- worked out in House-Senate conference. but continue to remain participants. gitimate regional national interests.
timore, Newark, Cleveland and Ferguson, Mo. Most of the hard work of police reform has To suggest that the U.S. should ALIREZA MIRYOUSEFI
Yet there’s little evidence that federal control to be done by states and cities, especially re- keep its so-called “new leverage built Mission of the Islamic Republic of
has reduced racial tension or improved polic- forming collective bargaining that makes it by maximum pressure” is inhumane Iran to the U.N.
ing in the 20 or so cities under consent decrees hard to dismiss bad cops. And that requires and unjust because the maximum New York
since the early 1990s. Democrats to take on police unions, one of
Harvard economist Roland Fryer has also their main political constituencies.
found that crime rises in cities where the feds No one should think federal reform will end Views on Free Speech, NBC and the Federalist
investigate in this fashion after a viral episode police abuses, but Mr. Scott’s bill goes a long Regarding Ben Domenech and Sean it seem weak-minded totalitarians,
of alleged police misconduct. The Scott bill’s way toward meeting Democratic priorities. It Davis’s “NBC Tries to Cancel a Conser- busy “deplatforming,” “demonetizing”
data will do more good. ought to be the basis for compromise—that is, vative Website” (op-ed, June 18): The and, ultimately, destabilizing.
Mr. Scott also wants to deter bad police unless Democrats think they can kill it, blame campaign Stop Funding Fake News TERESA R. MANNING
practices while leaving ultimate discretion to Republicans in the process, and ride the issue helps brands remove their adverts from National Association of Scholars
local officials. Take chokeholds of the kind offi- to November and control of all of Washington. websites that publish harmful misinfor- New York
mation and bigotry across the political
spectrum. Last year a British left-wing Messrs. Domenech and Davis claim:
News From the Non-Lockdown States website, rife with anti-Semitism, which
had suffered a collapse in advertising
“NBC News attempted this week to
use the power of Google to cancel our

G
revenue, said we took action because publication, the Federalist. The effort
OP governors have faced enormous me- (9.5%) compared to economically similar ones
we were “political Zionists.” failed, but it should serve as a warn-
dia pressure to lock down their states in that didn’t like Utah (4.6%). The authors characterize our cam- ing about the unchecked power of big
solidarity with Democrats, and some now Yet per-capita Covid fatalities in states that paigning as attacks on “free speech it- tech companies.”
are getting browbeaten to shut down again amid stayed open were on average about 75% lower self,” eliding the constitutional rights That the effort failed disproves the
coronavirus flare-ups. So it’s worth pointing out than those that locked down. One reason is that of all Americans with decisions taken assertion that big-tech’s power is “un-
that states that didn’t lock down this spring kept deaths in most states, regardless of whether they freely by companies in a free market. checked.” Even those of us who often
the virus under control and experienced fewer locked down, have been concentrated in nursing Everyone has the right to freedom of disagree vehemently with the content
deaths than most that did. home facilities and minority communities that speech, but there is no constitutional and editorial decisions of private com-
A new analysis by The Sentinel, a Kansas have higher rates of underlying health conditions or even moral right to be paid for that panies should be alarmed by hints,
nonprofit, compares the 42 states that shut and multigenerational housing. speech. Advertisers have the right to such as appear in the authors’ essay,
down most of their economies with the eight This is a main reason hospitalizations and choose that their brands aren’t associ- that the same government that we
ated with intolerance or bigotry; the rightly fear to exercise the power to
that did not. The latter group includes mostly deaths continued to surge in states like New
alternative would be to force them to directly censor peaceful expression
rural states with some small metropolitan ar- York, New Jersey, Illinois and Massachusetts do so—a clear nonsense. should exercise the power to punish
eas: North and South Dakota, Nebraska, Iowa, long after lockdowns took effect. About half of Google’s advertising system places private companies for their decisions
Arkansas, Oklahoma, Wyoming and Utah. Pri- deaths in New Jersey and Illinois have been in adverts across the internet using “pro- about peaceful expression.
vate employment on average fell by 7.8% be- nursing homes, and most others have been in grammatic” algorithms, meaning PROF. DONALD J. BOUDREAUX
tween May 2019 and May 2020 in these states dense low-income minority neighborhoods brands have no way of knowing where George Mason University
while plunging 13.2% in the others. where social distancing is difficult. their ads appear. This is how, in ex- Fairfax, Va.
Rural state economies generally rely more on Deploying more tests and protective equip- treme cases, household brands end up
“essential” services like agriculture and food ment can help shield these vulnerable commu- inadvertently funding terrorist con-
production, and some industries like energy nities, and citizens can do their part by donning tent or claims that dating underage Don’t Declare Covid Victory
girls, as the Federalist published, “is
and hospitality would have shed jobs regardless face masks in public indoor locations like super-
not without some merit.” We correct
Yet in Early Opening States
of the lockdowns. Still, private job losses were markets. But governors don’t need to intubate this information asymmetry by in- Your editorial “Lockdown States
higher in states that locked down like Colorado their economies to save lives. forming brands when their adverts ap- and the Jobless” (June 22) states:
pear on content that contradicts their “Job gains are much greater in states
values; in this instance, their stated that have reopened faster.” Well, if a
Mayhem in Seattle’s No-Cop Zone solidarity with Black Lives Matter. state is reopening quickly, the busi-

A
Those who truly value the free mar- nesses that are reopening will rehire
narchy might seem like harmless fun— said police “observed the location from a dis- ket must be the first to correct for its more workers. But this may be a
until somebody gets shot. On June 11, Se- tance” but “did not see a disturbance.” failures—that is the true way to honor short-term phenomenon if those
attle Mayor Jenny Durkan addressed the On June 20 at about 2:30 a.m., shots were the values of freedom held so dear by same states continue to experience
police-free “autonomous zone” declared in sev- fired. The city said that when police arrived they readers, and so cynically spoken of. increases in Covid-19 cases. If cases
IMRAN AHMED continue to go up, it’s very possible
eral city blocks by protesters and hangers-on. “were met by a violent crowd that prevented of-
CEO, Center for Countering Digital Hate that many customers will decide to
She characterized the neighborhood scene as ficers safe access.” The body-camera footage London stay at home, with or without the re-
“food trucks, spaghetti potlucks, teach-ins, mov- here is worth watching. The city said two injured imposition of restrictions. Let’s see
ies, free granola bars.” men were taken to the hospital “by CHOP ‘med- Hard to believe it needs to be said, how this plays out before declaring
Asked the same day on CNN how long this all ics.’” One of the men, a black 19-year-old who but top-down corporate censorship victory for the fast-reopening states.
might last, Ms. Durkan said: “I don’t know. We graduated high school a day before, died. (“demonetization”) not only doesn’t STEPHEN JENKS
could have the summer of love.” Not two weeks On June 21 at about 10 p.m., shots were re- remove “hate” from hearts or stop Carrboro, N.C.
later, here’s what has happened in or near what ported. A 17-year-old, wounded in the arm, was certain ideas, it drives all this under-
occupiers call the Capitol Hill Organized Protest, driven to the hospital in a private car. The city ground where it grows.
or CHOP: said he “declined to speak with detectives.” Why not refute ideas you don’t Pepper ...
like? Maybe squelching them means
On June 12, a man carrying a red container At a June 22 news conference, Chief Best said
you can’t. Present efforts to suppress
And Salt
ignited a wall and sidewalk outside the police’s she had a police report of a rape in the CHOP.
speech and thought by Google, Twit- THE WALL STREET JOURNAL
vacated East Precinct. “It’s time for people to go home,” Mayor Durkan ter and YouTube bring up an issue
On June 15 an auto-shop was allegedly broken said. The city will ask protesters to leave the similar to one raised by President
into and a fire set inside. The intruder “tried to CHOP at night. Police will return to the East Pre- Kennedy: If you make free expression
cut me with a box cutter,” the owner’s son told cinct “peacefully and in the near future,” though impossible, do you make violent ex-
KIRO. He said he pinned the perpetrator down, no specific time was given. “There should be no pression inevitable? Followed by more
and his dad repeatedly called 911, but nobody place in Seattle,” the Mayor said, “that the Seat- suppression? One wonders if this cy-
came. Onlookers demanded the man’s release, tle Fire Department and the Seattle Police De- cle is the real goal.
and the owner complied. “It was either that,” he partment can’t go.” You think? As the American Founders knew,
said, or “it was going to turn into mayhem be- On June 23 at about 5 a.m., a man in his 30s was free speech is the best course to test
ideas and make policy. Those against
yond mayhem.” shot in the calf. Police and medics met him outside
Later that day, police Chief Carmen Best said the CHOP and took him to the hospital. But the vic-
Letters intended for publication
officers “will respond” to incidents in the CHOP tim, the city said, “refused to provide any informa- should be emailed to wsj.ltrs@wsj.com.
that threaten life and safety. Other than that, tion about the circumstances surrounding the Please include your city, state and
“dispatchers and officers will try to coordinate shooting or a suspect description to officers.” telephone number. All letters are sub-
contact with the victim or caller outside of the This experiment in chaos shows: No police? ject to editing, and unpublished letters “I’m a bit disappointed. Tastes fine,
cannot be acknowledged.
CHOP boundaries.” Regarding the auto-shop, she Then no justice, and certainly no peace. but not very photogenic.”
THE WALL STREET JOURNAL. Wednesday, June 24, 2020 | A17

OPINION

Don’t Buy the ‘Annexation’ Hype Retirees’


By Eugene Kontorovich recognition of Jerusalem and the Go-
Security

I
srael is expected to announce
as early as next week that it is
lan Heights, and they proved entirely
hollow. Critics must explain why this
one should be any different.
Trumps Other
normalizing the legal status of
Jewish settlements in the
West Bank by fully applying
Others say Israel should desist be-
cause its actions would provoke a
possible Biden administration. This
Social Goals
Israeli civilian law. The U.S. is ex- is heads-I-win-tails-you-lose logic:
pected to recognize Israeli sover- Israel must accept Democratic poli- By Eugene Scalia

HAZEM BADER/AFP VIA GETTY IMAGES


T
eignty in these areas, marking the cies when Democrats are in office
culmination of a series of pro-Israel and also when they aren’t. President he Labor Department proposed
Trump administration policies, as Obama, by contrast, had no problem a rule Tuesday that will govern
well as the first step in its vision for allowing the United Nations Security how the $10.7 trillion invested
a negotiated process that could lead Council to pass an anti-Israel resolu- in private pension plans should be
to a Palestinian state. tion even after President-elect managed in light of the push to con-
There are many misunderstand- Trump asked him to veto it. sider the environment, social factors
ings about the planned move—start- U.S. recognition of Israeli sover- and corporate governance, or ESG,
ing with what to call it. It is widely eignty in parts of the West Bank when making investment decisions.
described as an Israeli “annexation” comes along with upfront Israeli According to Morningstar, from
of West Bank territory, also known Israeli soldiers stand guard near Hebron, June 14. commitments. Israel has agreed to a 2018-19 flows into “sustainable”
as Judea and Samaria. But annexa- temporary building freeze in areas of funds increased nearly fourfold, and
tion has a precise meaning in inter- was prepared to transfer some of the ation of a Palestinian state must be the West Bank that are under Israel’s the number of conventional funds
national law: the forcible incorpora- land to them. There was no point in preceded by the expulsion of all jurisdiction but where Israeli law claiming to consider ESG factors rose
tion by one state of the territory of hurriedly applying Israeli law to ter- Jews from its territory. The accep- isn’t being extended. This goes be- to 564 from 81. More than 3,100 in-
another state. The land to which Is- ritory that might not remain Israeli tance of an ethnic pre-cleansing was yond what the Trump administra- stitutional investors and businesses
rael seeks to apply its laws isn’t le- after a peace settlement. one of the reasons the U.S. had pre- tion’s Vision for Peace requires. Is- that provide investor services have
gally the territory of any other state, The current system of governance viously opposed the application of rael also knows that a future U.S. signed the United Nations Principles
nor has it been since Israel’s inde- was intended to be temporary, but Israeli civil law: to make life harder administration could repudiate sup- for Responsible Investment.
pendence in 1948. Neither the U.S. Israel retained it during decades of and more uncertain for Jewish set- port for Israeli sovereignty and rec-
negotiations, all of which resulted in tlers and thereby encourage them to ognize a Palestinian state anyway.
Palestinian rejection of internation- leave. President Trump’s peace vi- Israel’s friends are right to take A new Labor Department
Applying Israeli civilian law ally backed offers of statehood. In sion rightly rejects this illiberal no- such concerns seriously: The plan rule reinforces pension
the Middle East, nothing is as per- tion, which hasn’t been the basis of isn’t without risks for Israel. But
to West Bank settlements manent as the temporary. realized or proposed peace deals these can be addressed through a funds’ fiduciary duties.
wouldn’t preclude peace or Over the past 53 years, Jews have anywhere else in the world, from formal memorandum of understand-
returned to Judea and Samaria, ter- East Timor to Northern Cyprus. ing that would commit the U.S. to
violate Palestinian rights. ritories from which they had been, The application of Israeli law recognizing Israeli sovereignty and Many investors understandably
to a man, ethnically cleansed by the wouldn’t affect the treatment of Pal- not recognizing a Palestinian state want to do good while also doing
Jordanians in 1949. Today, more estinians. In the West Bank, they until the detailed Palestinian prereq- well. But the standards for ESG in-
nor the European Union recognizes than 400,000 Israelis live in West would continue to be governed by uisites in the Vision for Peace have vesting are often unclear and some-
the existence of a Palestinian state, Bank settlements, still governed by the Palestinian Authority. Israel’s been met to America’s and Israel’s times contradictory. Researchers at
and Israel’s sovereign claim to the an odd patchwork of military regula- Knesset wouldn’t rule over them. satisfaction. Such an agreement be- the Massachusetts Institute of Tech-
territory is superior to any other tions. As a result, property is gov- The Palestinian Authority would also tween the U.S. and Israel could be nology’s Sloan School of Management
country’s. Putting this move in the erned by obscure Ottoman land law. still have a chance to make peace. written to limit backsliding by the analyzed the methods of six different
same category as Russia’s seizure of Permitting for infrastructure proj- While all evidence suggests the au- next U.S. administration. ESG rating providers and found that
Crimea is entirely misleading. ects is difficult and burdensome. thority isn’t fundamentally serious The application of Israeli civil law their approaches—and results—di-
There is no one-word name for Most Israeli environmental regula- about statehood, U.S. recognition of to Jewish settlements isn’t an annex- verged significantly. In a comparison
what Israel plans to do because it is tions don’t apply. After five decades Israeli sovereignty in parts of the ation or an imposition on Palestin- of two providers’ rating systems, Re-
so technical and pedestrian. Israel of Palestinian rejectionism, it is hard West Bank may help bring it to the ians. It is a long overdue recognition search Affiliates found a wide gap in
already governs the territory in to argue that the legal regulation of table. It would show Palestinian of Israel’s legal and moral rights, a the same companies’ scores. Face-
question, as it has since 1967, when these communities must remain in leaders that turning down negotia- step that can no longer be deferred book received a top environmental
it liberated the land from a two-de- limbo until a far-off peace deal is tions weakens their hand. by the Palestinian refusal to make score from one provider and below-
cade Jordanian occupation. But at signed. Some Middle East experts say the peace. average from the other.
that time Israel didn’t fully apply its This doesn’t mean giving up on Israeli move could lead to violence, Other studies show that when in-
domestic laws there, leaving it under the possibility of a diplomatic settle- European sanctions or a reversal of Mr. Kontorovich is director of the vestments are made to further a par-
military administration. Israel ex- ment. Past peace efforts have been Israel’s warming ties with Arab Center for the Middle East and In- ticular environmental or social cause,
pected the Arab states to sue for based on the morally repugnant and states. But the same predictions of ternational Law at George Mason returns unsurprisingly suffer. Many
peace after the Six-Day War, and it impractical assumption that the cre- doom were made before Mr. Trump’s University Scalia Law School. managers likely find it challenging to
keep their fees low while verifying
that an investment offers the ESG

No, Police Racism Isn’t an Epidemic benefits its proponents claim. The
Securities and Exchange Commission
recently solicited public comment on
So far, we haven’t and black incomes grew at faster prove otherwise. Yes, cops some- about crime in their neighborhoods.” the appropriate treatment of funds
seen a shred of evi- rates that white incomes. Safer times abuse their authority, and fir- Fifty-nine percent of both blacks and that use terms such as “ESG” in their
dence that George neighborhoods help facilitate up- ing bad ones can be much too diffi- Hispanics said that “they would like names, and whether these terms are
Floyd’s death in po- ward economic mobility, which is cult. But states and localities can the police to spend more time in likely to mislead investors.
lice custody last something that the “defund the po- address those issues more effectively their area than they currently do, ESG investing poses particular
month was racially lice” crowd might keep in mind. than a one-size-fits-all fix from making them more likely than white concerns under the Employee Retire-
motivated. But for In the second half of the 20th Washington. Moreover, Republicans residents (50%) to respond this ment Income Security Act, or Erisa,
UPWARD
MOBILITY those looking to ex- century, these trends reversed. In should be wary of allowing liberal way.” the federal law governing private re-
ploit the incident, the 1960s, violent crime rates dou- activists to speak for the public. Democrats and Republicans seem tirement plans. At the heart of Erisa
By Jason L.
that doesn’t seem to bled, and they continued to increase We’ve known for years that groups to agree that more-uniform data col- is the requirement that plan fiducia-
Riley
matter. sharply until the early 1990s, when like Black Lives Matter are out of lection among police agencies would ries act with an “eye single” to fund-
The violence in step with most blacks, let alone most be a good thing. They’re right, but ing the retirements of plan partici-
the streets, and the liberal commen- of the country. it’s no guarantee that the media will pants and beneficiaries. This means
tary that toggles between justifica- The data don’t show racial In a 2015 Gallup poll taken after report the additional data or put it investment decisions must be based
tion and cheerleading, is fueled by as- Michael Brown was killed in Fergu- in context. We have plenty of data solely on whether they enhance re-
sumptions that racial discrimination bias in police use of deadly son, Mo., a majority of black respon- right now. Police shootings have tirement savings, regardless of the fi-
in policing is widespread, that low-in- force. A few viral videos dents said police treat them fairly, fallen precipitously since the 1970s. duciary’s personal preferences.
come minority communities are over- and far more blacks (38%) than Upward of 95% of black homicides in The department’s proposed rule
patrolled, and that black men are tar- don’t prove otherwise. whites (18%) said they “want a the U.S. don’t involve law enforce- reminds plan providers that it is un-
geted for their skin color rather than greater police presence in their local ment. Empirical studies have found lawful to sacrifice returns, or accept
for their behavior. There’s no denying communities.” Another Gallup sur- no racial bias in police use of deadly additional risk, through investments
that there was a time—in the living better policing and more incarcera- vey, published last year, asked black force, and that the racial disparities intended to promote a social or polit-
memory of many Americans—when tion helped bring crime under con- and Hispanic residents of low-in- that do exist stem from racial differ- ical end. Sometimes, ESG factors will
this was true. The question is how trol. In his 2007 book, “The Great come neighborhoods about policing ences in criminal behavior. The bear on an investment’s value. To
true it remains. American Crime Decline,” Franklin and found that these groups “aren’t problem isn’t a shortage of data but give an obvious example, if a factory
Activists and politicians with Zimring describes violent crime as a averse to law enforcement—in fact, a race-based narrative that is im- is leaching toxic chemicals into
their own agendas have taken the “regressive tax whereby the poor they are particularly concerned mune to any data that challenge it. groundwater, lawsuits and regulatory
Floyd episode and similar incidents pay much more” and observes that action are likely to follow, sapping
and shoehorned them into a pre-ex- “because both victims and offenders profits. A corporation with dysfunc-

Notable & Quotable: Grant


isting narrative about race and po- are concentrated among the same tional management will also typically
licing, but the reality is more com- disadvantaged populations, a major be a poor investment.
plex. Race relations and violent crime decline might produce a dou- But ESG factors often are touted
crime rates among blacks have ble benefit—fewer victims as well as From “U.S. Grant and the Colored United States, and this doubtless by for reasons that are nonpecuniary—
ebbed and flowed over the decades, fewer offenders arrested and pun- People,” an 1872 campaign pamphlet the President’s special direction. It is to address social welfare more
and policing has reflected these ished for serious crimes.” Between by Frederick Douglass. Last Friday a further obvious that color had noth- broadly, rather than maximize re-
changes. In the first half of the 20th 1990 and 2016 the overall homicide mob tore down a statue of President ing to do with the omission, because turns. One prominent firm’s manager
century, when black poverty was sig- rate fell by 34%, and among black Grant in San Francisco: other gentlemen accompanying the has said that its funds may choose in-
nificantly higher than it is today, and men it fell by 40%. Had the black ho- expedition to Santo Domingo equally vestments that offer a below-market
it was not uncommon for police offi- micide rate remained at 1990 levels There are many dissemblers and with myself, though white, failed to rate of return but further the firm’s
cers in the Deep South to belong to through that period, tens of thou- falsifiers of the Greeley party in the receive an invitation to dine at the goal of having a “positive effect on
the Ku Klux Klan, black crime rates sands of black men wouldn’t be alive South who are seeking the control of White House. . . . My second answer corporate behavior and to promote
and incarceration rates were signifi- today. the colored voters, by declaring to is that my devotion to General Grant environmental and social progress.”
cantly lower than what they would In response to the racial hysteria them that President Grant is not, and rests upon high and broad public That trade-off may appeal to some
become in later decades. over Floyd’s death, the Democratic never has been, a faithful and sincere grounds, and not upon personal favor. investors, but it is not appropriate
The criminologist Barry Latzer House and Republican Senate are friend of my race. . . . President I see in him the vigilant, firm, impar- for an Erisa fiduciary managing other
has noted that the homicide rate for hashing out a “policing reform” bill Grant’s course, from the time he drew tial, and wise protector of my race people’s retirement funds.
black men fell by 18% in the 1940s for the president to sign. This is be- the sword in defense of the old Union from all the malign, reactionary, so- What if two potential investments
and another 22% in the 1950s. It’s ing done out of political expediency, in the Valley of the Mississippi till he cial, and political elements that are economically indistinguishable—
probably not a coincidence that not necessity. There is no epidemic sheathed it at Appomattox, and thence would whelm them in destruction. He can nonpecuniary ESG factors be
black poverty declined by 40 per- of black suspects dying in police cus- to this day in his reconstruction policy is the rock-bound coast against the used as a “tiebreaker”? While we are
centage points over the same period, tody, and a few viral videos don’t and his war upon the Ku-Klux, is with- angry and gnawing waves of a storm- skeptical that such “ties” often occur,
out a deed or word to justify such an tossed ocean saying, thus far only the proposed rule would permit con-
accusation. . . . shalt thou come. sideration of nonpecuniary factors to
I have often been called upon to Wherever else there may be room break a tie, so long as the fiduciary
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY reconcile my exalted opinion of Presi- for doubt and uncertainty, there is examines the ESG claims carefully
Rupert Murdoch Robert Thomson
Executive Chairman, News Corp Chief Executive Officer, News Corp
dent Grant with the fact that I failed nothing of the kind with Ulysses S. and documents the basis for its con-
Matt Murray Almar Latour
to be invited with the Commissioners Grant as our candidate. In the midst clusion. The proposal would also al-
Editor in Chief Chief Executive Officer and Publisher of Inquiry to Santo Domingo to dine of political changes he is now as low a 401(k) plan to include an ESG
Neal Lipschutz Karen Miller Pensiero DOW JONES MANAGEMENT: with the President at the White ever—unswerving and inflexible. fund among its investment options,
Deputy Editor in Chief Managing Editor Ramin Beheshti, Chief Technology Officer; House. I have two answers to those Nominated regularly by the time hon- provided it is selected through ap-
Natalie Cerny, Chief Communications Officer;
Jason Anders, Chief News Editor; Louise Story, Chief
Kamilah Mitchell-Thomas, Chief People Officer; who inquire of me on this point. First. ored Republican party, he is clothed propriate diligence based on pecuni-
News Strategist, Product & Technology Officer
Edward Roussel, Chief Innovation Officer; The failure of the President to invite with all the sublime triumphs of hu- ary considerations and participants
Thorold Barker, Europe; Elena Cherney, News Christina Van Tassell, Chief Financial Officer me could not have been because my manity which make its record. That aren’t enrolled in it by default.
Features & Special Projects; Andrew Dowell, Asia;
Anthony Galloway, Video & Audio; Alex Martin,
OPERATING EXECUTIVES: personal presence on account of color party stands to-day free from alloy, ESG investing often marches un-
Kenneth Breen, Commercial;
Print & Writing; Michael W. Miller, Features & Jason P. Conti, General Counsel;
would have been disagreeable to him, pure and simple. There is either am- der the same banner as “stakeholder
Weekend; Emma Moody, Standards; Tracy Corrigan, Chief Strategy Officer; for he never withheld any social cour- biguity in its platform nor incongru- capitalism,” which maintains that
Shazna Nessa, Visuals; Matthew Rose, Frank Filippo, Print Products & Services; tesy to General Tate, the Minister ity in its candidates. U.S. Grant and corporations owe obligations to a
Enterprise; Michael Siconolfi, Investigations; Kristin Heitmann, Chief Commercial Officer;
Stephen Wisnefski, Professional News Nancy McNeill, Corporate Sales;
Plenipotentiary from the Republic of Henry Wilson . . .—the soldier and range of constituencies, not only
Gerard Baker, Editor at Large Thomas San Filippo, Customer Service; Hayti, a man of my own complexion. the Senator—are men in whom we their shareholders. Erisa requires
Paul A. Gigot, Editor of the Editorial Page;
Josh Stinchcomb, Advertising Sales; . . . It is, besides, impossible that can confide. No two names can better something different of retirement
Suzi Watford, Chief Marketing Officer; color is the explanation of the omis- embody the precious and priceless plans, however: A fiduciary’s duty is
Daniel Henninger, Deputy Editor, Editorial Page Jonathan Wright, International
sion to invite me, because the gentle- results of the suppression of rebellion to retirees alone, because under Erisa
WALL STREET JOURNAL MANAGEMENT: Professional Information Business:
Joseph B. Vincent, Operations; Christopher Lloyd, Head; men whom he did invite had dined and the abolition of slavery. We can one “social” goal trumps all others—
Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head with me daily during ten weeks on an no more array ourselves against retirement security for American
EDITORIAL AND CORPORATE HEADQUARTERS: American ship, under an American these candidates and this party than workers.
1211 Avenue of the Americas, New York, N.Y., 10036 flag, and in presence of representa- we can resume our chains or insult
Telephone 1-800-DOWJONES
tives of the leading presses of the our mothers. Mr. Scalia is U.S. labor secretary.
A18 | Wednesday, June 24, 2020 THE WALL STREET JOURNAL.
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Judges Slash
Award in J&J
Talc Verdict
Appeals court reduces More than 19,000 plaintiffs
had talcum-powder lawsuits
damages by over half, pending against J&J in U.S.
to $2.1 billion; upholds courts as of March 29.
Many suits allege that talc-
link to ovarian cancer containing powders caused
ovarian cancer in women who
BY PETER LOFTUS used it for feminine hygiene
for many years.
A Missouri appeals court on Other lawsuits say that in-
Tuesday upheld a jury verdict halation of the powder caused
MARK LENNIHAN/ASSOCIATED PRESS

that Johnson & Johnson’s tal- a rare cancer called mesothe-


cum powder caused ovarian lioma, which affects the lining
cancer in 22 women, though of the lungs.
the court reduced by more Plaintiffs’ lawyers also have
than half the $4.69 billion in alleged in some cases that the
damages J&J was ordered to talcum powder contained as-
pay. bestos, a naturally occurring
The Missouri Court of Ap- mineral linked to mesothe-
peals reduced total damages lioma.
Customers make returns to Saks Fifth Avenue employees at a sidewalk pickup and return desk in Manhattan earlier this month. to about $2.1 billion. J&J ear- J&J says its talc-based
lier Tuesday said the new powder is safe, doesn’t contain

Saks to Reopen New York Flagship


amount was about $2.2 billion asbestos, and didn’t cause can-
but subsequently said it was cer in people who used it. The
$2.1 billion. company has won cases in
The 2018 verdict, following court, but has lost some hefty

As Luxury Retailers Try to Reboot


a six-week trial in state court verdicts as well.
in St. Louis, was the biggest In the Missouri case, half of
award of damages in a series the 22 women have died from
of trials arising from lawsuits ovarian cancer, six before the
over the safety of Johnson’s trial and another five since it
BY SUZANNE KAPNER pers to leave the comfort of a safe and healthy environ- LVMH Moët Hennessy Louis Baby Powder, as well another ended, a spokesman for the
their homes to buy luxuries. ment for our customers, we Vuitton SA, swung to a loss of talc-containing powder, plaintiffs’ attorneys said.
Saks Fifth Avenue will re- Tourists, who have long knew we would have to exceed $64.6 million in the three Shower to Shower, that J&J J&J had appealed the jury
open its New York flagship provided fuel for the high-end the minimum requirements,” months to April 30, a period used to sell. verdict to the Missouri Court
store on Wednesday with ul- shopping corridor, will be Saks President Marc Metrick when most of its stores were J&J said the 2018 trial in of Appeals, saying plaintiffs
traviolet handrail cleaners on scarce. Some brands, including said in an interview. “Feeling closed due to the coronavirus. St. Louis “was a fundamentally failed to present substantial
its escalators, a remote video- Valentino SpA, are fleeing safe is as important to luxury Sales fell by nearly half to flawed trial, grounded in a evidence that baby powder
shopping service and a host of Fifth Avenue, which has as it ever will be.” $556 million. faulty presentation of the caused their ovarian cancer.
other measures designed to boasted some of the most ex- Every customer entering Bergdorf Goodman will facts.” The company said it In its decision, the court
make customers feel safe amid pensive retail rents in the Tiffany when its Manhattan start allowing customers to would pursue further review wrote that “the evidence,
the coronavirus pandemic. world. store reopens on Wednesday enter its Fifth Avenue store on of the case by the Supreme when viewed in the light most
Many of the steps, such as Saks, owned by Hudson’s will be paired with a sales as- Wednesday through private Court of Missouri. favorable to the verdict, re-
reserving elevators for older Bay Co., put together a task sociate who will escort them appointments. For shoppers Mark Lanier, an attorney veals Plaintiffs met their bur-
and vulnerable shoppers, go force to strategize how to re- around the store in an effort who can’t be pulled away from for the plaintiffs, said the ap- den to establish causation.”
beyond local government man- open stores almost as soon as to maintain social-distancing their beachside retreats, Berg- pellate court’s decision Tues- Talcum-powder verdicts
dates, such as requiring shop- it closed its Fifth Avenue loca- rules, according to a spokes- dorf Goodman started offering day “carefully holds companies and negative publicity over
pers to wear masks. Saks, Tif- tion on March 17. As of man. Staff will sanitize the free delivery to the Hamptons responsible for reprehensible the safety issue have weighed
fany & Co. and other Fifth Wednesday, all 40 Saks stores jewelry after each use. region last week. Saks is offer- conduct, while recognizing on J&J’s reputation and stock
Avenue anchors are reopening will have reopened. Tiffany, which is in the pro- ing a similar Hamptons deliv- limits of jurisdiction and puni- price in recent years.
and trying to convince shop- “To set the tone in creating cess of being acquired by Please turn to page B2 tive damages.” Please turn to page B2

Wirecard’s Ex-CEO Arrested After Billions Vanish State Sued


Wirecard AG’s recently de-
parted chief executive, Markus
until resigning last Friday.
Wirecard began to unravel
departure from the bloc.
In 2016, two investors who
For Bias in
Braun, was arrested by police,
days after the German pay-
ments company revealed a
last week when its auditors
said that it couldn’t verify the
existence of €1.9 billion ($2.1
bet on the company’s shares
to fall, issued a report accus-
ing Wirecard of corruption,
Not Hiring
more than $2 billion hole in
its books. It was a swift turn
of events, but followed years
billion) meant to be held in
trust accounts on behalf of the
company. The company later
corporate fraud and weak
money-laundering controls.
The company denied the alle-
Black Firm
of German regulators ignoring admitted the money was prob- gations at the time.
red flags about the once- ably an accounting fiction. BaFin didn’t take any steps BY DAWN LIM
promising company. Mr. Braun consistently de- to investigate the company’s
nied any wrongdoing at the numbers. A black-owned investment
KRISZTIAN BOCSI/BLOOMBERG NEWS

By Patricia company, attacking allegations Instead, last year, after the firm sued New Jersey for al-
Kowsmann, about its accounting practices Financial Times published a leged racial bias on Tuesday,
Ruth Bender as false and misleading. Mr. series of critical articles about saying officials told it that the
and Paul J. Davies Braun’s lawyers didn’t imme- Wirecard’s accounting, BaFin state’s pension fund was averse
diately respond to a request opened a probe against the to hiring money-management
Munich city prosecutors said for comment. lead reporter. It also took the firms owned by minorities.
Mr. Braun turned himself in to Mr. Braun’s arrest by a city uncommon step of banning Blueprint Capital Advisors
authorities late Monday and prosecutor is a black eye for short selling against the com- is one of the few U.S. invest-
accused him of “inflating Wire- Germany’s national financial pany—the only time it had ment firms founded by African-
card AG’s sales volume with regulator, known as BaFin. The company’s ex-CEO Markus Braun, seen last year, was accused by done so for a single entity. Americans. The Newark firm
fake income.” Prosecutors said “In all this, BaFin runs the Munich city prosecutors of inflating sales volume with fake income. Short sellers over the years said in court documents that
he was also under suspicion of danger of looking like a car- have written, met with or New Jersey’s pension office
making the company look more toon and a joke,” said Marc sures, which we have taken or of staff qualified to oversee tried to meet with regulators “usurped” its ideas and hired
attractive to investors and cus- Liebscher, whose Berlin-based have not taken, once we sort sprawling or complex busi- to raise concerns about Wire- money-management giant
tomers than it actually was, law firm is representing pri- out the immediate crisis,” nesses to siloed departments card or the regulator’s actions BlackRock Inc. to run Blue-
and possibly cooperating with vate Wirecard investors. BaFin President Felix Hufeld and a culture of passivity. related to the company, ac- print’s strategy. Blueprint al-
other perpetrators. The head of BaFin offered a told a conference in Frankfurt. The episode undermines cording to several of them. leges pension staff made efforts
He was released on €5 mil- mea culpa on Monday. Critics, including investors Germany’s standing as Frank- “You’ve got to believe that to block it from investing state
lion ($5.63 million) bail Tues- “I completely accept the and politicians, say the scan- furt competes against Paris and Please turn to page B12 money, turned against the firm
day. Mr. Braun was Wirecard’s criticism that all of us includ- dal has exposed weaknesses at Amsterdam to become the Eu- after it spoke up about being
largest shareholder and served ing BaFin have to review a Germany’s lead financial ropean Union’s top financial-  Wirecard hits a lifeline from treated unfairly and forced it
as CEO for nearly two decades couple of strategies and mea- watchdog, ranging from a lack services location after the U.K.’s SoftBank, Credit Suisse..... B12 into “punitive” terms.
It is rare for an asset man-
ager to sue an investor. Blue-

INSIDE New Employment Visa Curbs print said it oversees about


$175 million for New Jersey.
The firm also sued BlackRock
and Cliffwater LLC, a firm that

Draw Fire From Silicon Valley assisted the state pension fund
with investment decisions, al-
leging they profited at Blue-
print’s expense.
BY ASA FITCH panies employ. Apple Inc. Chief neering and other roles requir- “We would like to see people
ROBIN RAYNE/ZUMA PRESS

AND AARON TILLEY Executive Tim Cook, Tesla Inc. ing specialized skills that aren’t in C-suites and bureaucracies
CEO Elon Musk and Sundar Pi- always widely available in the held accountable for the things
Silicon Valley executives chai, CEO of Google parent Al- U.S. they do when no one is watch-
criticized President Trump’s or- phabet Inc., were among the Critics of the H-1B program ing,” said Jacob Walthour Jr.,
der suspending new immigra- executives who criticized the say it has allowed companies Blueprint’s chief executive, in
tion on several employment- action. Mr. Cook on Tuesday to avoid hiring American work- an interview.
based visas programs, warning said on Twitter he was “deeply ers in favor of cheaper foreign While Blueprint was trying
it could damage the U.S. tech disappointed by this proclama- labor. to get New Jersey to invest, a
SEMICONDUCTORS PROPERTY REPORT industry’s competitiveness and tion.” Amazon.com Inc. called The Trump administration top investment staffer told Mr.
Apple looks for Simon sees jeopardize domestic job cre- the measure shortsighted. said Monday’s order would pre- Walthour in 2016 that Blueprint
ation. Tech companies are among serve jobs for Americans amid stood higher chances of getting
a competitive edge buying tenants The temporary ban, an- the biggest employers of for- economic weakness—and soar- state money if references to be-
by making as a way nounced Monday, includes the eign workers in the U.S., lean- ing unemployment—stemming ing minority-owned were
its own chips. B4 to boost its malls. B6 H-1B type of visa for high- ing on the H-1B program to fill from lockdowns designed to scrubbed from pension memos,
skilled workers many tech com- software development, engi- Please turn to page B4 Please turn to page B12
B2 | Wednesday, June 24, 2020 * *** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE


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

A
Abu Dhabi National Oil
B6
B7
F
Mars............................B2
Mattel..........................B7
Microsoft ............. B4,B13
Unilever’s Skin-Lightening Cream
Attracts Louder Social Criticism
Facebook...A1,A6,B4,B13
Advanced Micro Devices Forever 21...................B6 N-P
A8
Alphabet...........A1,A2,B1 G Nike.............................A8
Global Infrastructure Oaktree Capital
Amazon.com Management.............B7
A1,B1,B4,B13 Partners....................B6
Greensill Capital.........B8 Ontario Teachers'
Apple ... A1,A2,B1,B4,B13 Pension Plan Board..B6
Aeropostale.................B6 H BY SAABIRA CHAUDHURI cording to Euromonitor, it
PepsiCo........................B2
B Home Depot................B3 Procter & Gamble.......B2 holds a 27% share of the skin-
BlackRock....................B1 Huaxun Fangzhou........10 Saks Holdings.............B1 Unilever PLC is facing care category in India, which
Blackstone Group ....... B7 Hudson's Bay..............B1 Simon Property GroupB6 fresh backlash against a skin- is Unilever’s second-largest
Blueprint Capital I SL Green Realty..........B7 lightening cream that is one market, behind the U.S.
Advisors....................B1 Industrial & Commercial Snam ........................... B6
BNP Paribas..............B12 SoftBank Group...B8,B12 of its better-selling products, Fair & Lovely became fa-
Bank of China.........B14
Brookfield Asset Infosys.........................B4 Starwood Capital Group as scrutiny mounts for brands mous through marketing by
Management.............B6

SAJJAD HUSSAIN/AGENCE FRANCE-PRESSE/GETTY IMAGES


Intel......................B4,B14 B7 that some say feed into racist celebrities and Bollywood
Brookfield Property T-W
Partners....................B6 J ideas and imagery. stars, as well as television ads
J.C. Penney..................B6 Target..........................B3 Fair & Lovely, Unilever’s showing glum, dark-skinned
C Tata Consultancy
Johnson & Johnson largest personal-care brand in young women whose pros-
Capital & Counties B1,B2 Services.....................B4
Properties.................B7 Tesla............................B1 India, has long been a target pects were transformed after
Cisco Systems.............B4 K-L
Tiffany.........................B1 for critics who say it promotes the women used the product
Cliffwater....................B1 Kroger..........................B3 T-Mobile US................B3
Coca-Cola...................B14 Kweichow Moutai.....B14 the suggestion that light skin to lighten their skin.
Unilever.......................B2
Credit Mutuel............B12 La-Z-Boy......................B8 UnitedHealth Group ... A8
is more attractive than dark. Some of those ads drew ac-
Credit Suisse.......B8,B12 L'Oreal.........................B2 United Natural Foods.B3 The company has for years de- cusations of racism, and Uni-
D-E Luckin Coffee..............B7 Venntel........................A6 fended the brand, which gen- lever in the early 2000s be-
Dell Technologies ......A1 M Walmart......................B3 erates more than $560 million gan shifting its marketing to
Deloitte ....................... B3 Mack-Cali Realty.........B7 Wang & Ma Government
Madison International Relations.................A10
in annual sales, saying it is a focus less on changing a
DZ Bank.....................B12
Ernst & Young...........B12 Realty........................B7 Wirecard .............. B1,B12 safe alternative to dangerous woman’s physical appearance
Extended Stay America Marathon Petroleum B13 WPP.............................B3 bleaching products. and more on imbuing her
Now, the owner of Dove with confidence.
soap and Ben & Jerry’s ice Fair & Lovely is Unilever’s largest personal-care brand in India and it Last year, Fair & Lovely
INDEX TO PEOPLE cream is under renewed pres-
sure to stop selling Fair &
generates more than $560 million in annual sales, stopped using longstanding
visuals showing a dark face
Lovely amid a broader rush by Unilever Chief Executive should be made between skin turning light. The spokes-
A F M consumer-goods companies to Officer Alan Jope’s promise— tone and a person’s achieve- woman said the brand has
Abernathy, Russell.....B7 Foley, Jane................B13 Main, Andy..................B3 address marketing, packaging in support of the Black Lives ment, potential or worth,” a shifted communication about
B Freund, Leigh..............A6 McCombe, Mark........B12 and products perceived as rac- Matter movement—to use the spokeswoman said. “We’re product benefits toward
McDonough, Christopher
Badley, Andrew...........B2 G B12 ist. The movement has picked company’s brands to “break aware that historic advertising “glow, even tone, skin clarity
Baxter, Soozan............B6 Gray, Jonathan............B7 P up momentum with the Black harmful stereotypes that con- is available on the internet, and radiance.”
Braun, Markus.....B1,B12
H Pierce, Sarah...............B4
Lives Matter protests that tribute to racism” was de- which is not in keeping with As part of its marketing
D S
have been fueled by the killing rided by some social-media the current values of the shift, Fair & Lovely offers ed-
Hohn, Christopher .... B12
Darrow, Kurt...............B8 of George Floyd in police cus- users who say Fair & Lovely brand.” ucation scholarships to young
Dickerman, Ronald......B7
J Schmidt, Susan .......... A8
tody in Minneapolis last profits from racism. Unilever also sells another Indian women and has
Seifert, John...............B3
DiSilvestro, Anthony..B7 Jilek, David ............... B13 Simon, David...............B6 month, among other events. “Top Chef” host and model skin-lightening cream, under launched a Fair & Lovely
E Jope, Alan...................B2 Simonetti, Katerina..B13 Johnson & Johnson re- Padma Lakshmi was among its Pond’s brand, while branded website that collates
Egelanian, Nick...........B6 K W cently said it would stop sell- those who criticized Fair & free online courses in subjects
Euteneuer, Joseph......B7 Krpata,, Petr.............B13 Walthour, Jacob Jr. .... B1 ing similar skin-lightening Lovely. “For years I’ve been such as English and market-
products under its Clean & saying that Fair & Lovely ing offered by third parties.
Clear and Neutrogena brands. needs to pack their fake cos-
Petitions calling for “The number-one purpose-
PepsiCo Inc. has said it is re- Unilever to stop
Award in The company will continue
to sell a cornstarch-based ver-
sion of Johnson’s Baby Powder
tiring the Aunt Jemima brand
of syrups, pancake mixes and
metics and GO!!” she wrote in
a recent Instagram post, say-
ing the brand had harmed her
selling Fair & Lovely
ful brand in our portfolio
world-wide is Fair & Lovely,”
Mr. Jope said at Unilever’s in-
other products, while Mars have gained backers.
J&J Talc in the U.S. and Canada. And it
will continue to sell both talc-
and cornstarch-based powder
Inc. is changing the name of
its Uncle Ben’s rice.
self-esteem.
Unilever is also facing scru-
tiny from its own staff over
vestor day in December, when
questioned about the brand.
While courses listed on the

Case Is Cut in other countries.


Last year, J&J recalled
about 33,000 bottles of its
Several online petitions
calling for Unilever to stop
selling Fair & Lovely have
Fair & Lovely, which is sold
widely in Asia, the Middle East
and Africa, and typically is
Procter & Gamble Co. and
L’Oréal SA are among other
site are free, the effort has
been criticized by some users
for the cost of getting certifi-
baby powder after the U.S. gained thousands of backers, available at Indian stores in companies selling popular cates and for overstating the
Continued from page B1 Food and Drug Administration including one started in early the U.S. and Europe. lightening creams. brand’s role in some of the
J&J shares fell 0.4% in trad- said a laboratory test found a June by a former Unilever At recent town-hall meet- Procter & Gamble and success stories recounted on
ing on the New York Stock Ex- small amount of asbestos in employee that has more than ings, employees have ques- L’Oréal didn’t respond to re- the Fair & Lovely website.
change Tuesday. one bottle. 12,500 signatures. tioned top Unilever executives quests for comment. Unilever declined to com-
In May, J&J said it would J&J said it issued the recall “This product has built about why the company sells Unilever launched Fair & ment on specific women
stop selling talc-containing out of an abundance of cau- upon, perpetuated and bene- skin-lightening products, ac- Lovely in India in 1975, cater- listed on its scholarship web-
baby powder in the U.S. and tion, and said subsequent test- fited from internalized racism cording to a person familiar ing to a South Asian prefer- site. The company said its
Canada, citing a decline in ing of the same bottle and lot and promotes anti-blackness with the matter. ence for light skin that some surveys show more than 80%
customer demand amid the by different labs found no as- sentiments amongst all its “Fair & Lovely upholds researchers link back to the of the site’s users find it use-
safety concerns. bestos. consumers,” the petition says. principles that no association region’s colonial legacy. Ac- ful and inspiring.
RICHARD B. LEVINE/ZUMA PRESS

During the first phase of New York’s reopening earlier in June, customers could opt for curbside pickup.

Saks Ready firmed Covid-19 deaths.


Throughout the country,
people who haven’t lost their
quired to wear face masks in
accordance with local rules.
Andrew Badley, an infec-

To Reopen jobs or been furloughed are


sitting on cash reserves as
they curtailed travel and other
tious-disease physician and
chairman of the Mayo Clinic’s
Covid-19 research task force,

Flagship expenditures during the lock-


downs. While they have
started spending some of that
said there is a long history of
using UV light to kill viruses.
Pertaining to escalators, where
money on home-improvement the light is contained in a box
Continued from page B1 projects, it is unclear if they and shines on handrails as
ery service for a $25 fee. are ready to shop for fashion. they roll by, the question is
Bergdorf is owned by Nei- Mr. Metrick said the lack of whether the duration of expo-
man Marcus Group, which tourists will hurt—the Saks sure is long enough to work,
filed for bankruptcy during flagship on Fifth Avenue de- he said.
the pandemic. rives about a third of its an- “It’s unlikely to be harmful
Mr. Metrick said he isn’t nual sales from such visitors— and it’s possible it could be ef-
losing sleep over the possible but hopes local shoppers will fective,” Dr. Badley said.
demise of Fifth Avenue, where pick up some of the slack. There won’t be any spa ser-
shops have been boarded up “We’ll have a more captive lo- vices or makeup applications.
since the pandemic forced res- cal consumer because they Instead, if shoppers want to
idents to shelter at home. won’t be traveling as much,” get a sense of how a particular
“Saks made Fifth Avenue a he said. eye-shadow shade will look,
luxury destination” ever since Those who are ill at ease they can ask a store associate
it opened its store there in entering a store during peak to try it on or test it on a
1924, he said. times, when it might be harder piece of paper.
He added that Saks could to social distance from other Shoppers who don’t feel
benefit if others pull out. customers, can make an ap- comfortable visiting the store
“Having brands open their pointment to visit Saks two at all can use curbside pick up.
own stores around us hasn’t hours before it opens or two They can also shop from home
been my favorite thing,” he hours after it closes, Mr. Met- virtually. “It’s Zoom shop-
said. “So if they want to close rick said. The store will oper- ping,” Mr. Metrick said, ex-
some stores, that’s fine with ate with reduced hours of 11 plaining that sales associates
me.” a.m. to 7 p.m. Monday through will walk customers through
New York City was an epi- Saturday and noon to 6 p.m. the store and show products
center of the virus, with more on Sunday. via video.
than 17,000 confirmed There will be 100 hand-san- Saks’s best customers will
Covid-19 deaths as of this itizer stations throughout the be eligible for a delivery ser-
week, but began reopening in 10-story building. Its 22 esca- vice, in which a stylist sends
early June as the number of lators will be equipped with items to their home and the
new cases and deaths virus-killing, UV handrail shoppers send back what they
dropped. In recent days, the cleaners. And both employees don’t want. “These are cus-
city’s health department has and customers in the New tomers who tend to spend a
reported fewer than 10 con- York City store will be re- lot,” Mr. Metrick said.
THE WALL STREET JOURNAL. Wednesday, June 24, 2020 | B3

BUSINESS NEWS

Ogilvy’s
Next CEO
Staying Open Can Cost Millions
Corporations outline
Hails From pandemic’s impact,
from pay increases
Deloitte to cleaning supplies
BY INTI PACHECO
BY SAHIL PATEL
A food distributor has paid
Advertising agency Ogilvy $20 million for testing and
has named a top consulting plexiglass. T-Mobile US Inc.
executive as its next leader, a has spent $50 million on extra
sign of how Madison Avenue is cleaning and safety gear. Wal-
seeking to reinvent itself to mart Inc. and three other big
keep up with the changes the retail chains have put more
rise of digital has had on its than $3 billion into higher sal-
business. aries, benefits and other
Andy Main, the global head Covid-19 measures.
of Deloitte LLP’s creative con- Staying open during the
sulting unit, Deloitte Digital, pandemic wasn’t cheap. Big
has been named global chief companies say they spent any-
executive officer of Ogilvy, where from hundreds of thou-
which is part of WPP PLC. He sands to almost a billion dol-
will succeed John Seifert, an lars in Covid-19-related costs.
Ogilvy veteran who earlier this Some say they expect the
year announced plans to step costs to keep rising in coming
down. quarters, even as they face un-

LUCY NICHOLSON/REUTERS
Ogilvy has been a key part certain demand from consum-
of WPP for many years. The ers.
agency was founded by the The figures include in-
legendary David Ogilvy in 1948 creased pay for front-line
and works on behalf of such workers, expanded cleaning
brands as Nestlé SA and Uni- and sanitization protocols, and
lever. Still, like many creative the purchasing of coronavirus
firms, the agency has been testing or personal protective Plexiglass barriers were installed at Kroger checkouts, among the $830 million in virus expenses the company reported for the quarter.
trying to restructure to equipment, according to a
streamline its operations to Wall Street Journal review of support heightened digital de- ily raising it in March. The hanced benefits, provided per- Carter said the company spent
better cope with demands recent quarterly reports and mand,” said Kroger Co. Chief company said it expects to sonal protective equipment $50 million just on cleaning
from marketers seeking more earnings-call transcripts. Financial Officer Gary Miller- spend $1 billion more this year and offered Covid-19 testing to and equipment for employees.
efficient ways of working. These are extra expenses and chip. than last on worker-related associates based on symptoms For the second quarter, the
“We have a great opportu- don’t reflect extra revenue or A group of U.S. labor unions expenses, including wages, and medical needs. company, which in April ac-
nity to help clients deliver sus- lost business. Some essential and socially responsible inves- paid leave and safety equip-  $640 million quired Sprint, said it expected
tainable growth by using retailers that were open as tors sent a June 16 letter to ment such as masks. Home Depot Inc. spent Covid-related costs of $350
Ogilvy’s creative genius to well as makers of safety gear the SEC calling for increased  $900 million $640 million in the quarter million to $450 million.
transform not only brands, but had a surge in revenue during disclosures, including the im- Walmart spent around ended May 3 on added em-  $20 million
entire businesses,” Mr. Main the lockdown. pact on cash flows, policies for $900 million in its quarter ployee benefits, which in- United Natural Foods Inc.
said. The disclosures provide an identifying sick employees and ended April 30. The company cluded weekly bonuses and ex- included Covid-19 testing for
In the past few years, man- initial picture of the costs of any material changes to execu- said this included masks, panded paid time off. Chief employees as part of its new
agement consulting firms in- doing business during a pan- tive compensation. gloves and bonuses for em- Financial Officer Richard expenses. The company said it
cluding Deloitte, Accenture demic and resulting restric- Here is a sampling of what ployees, additional cleaning McPhail said in mid-May much increased operating costs by
PLC and PricewaterhouseCoo- tions. Most companies haven’t companies have revealed. and expanded sick-leave pay. of that was from paid-leave $20 million and included the
pers LLP have encroached on broken out the added ex- Many of these examples are Walmart has about 1.5 million expenses that weren’t ex- use of partitions for workers
ad-agency turf by offering penses. In April, the Securities companies with quarters that employees in the U.S., and pected to recur. and decals in facilities to
competing marketing and ad- and Exchange Commission di- ended later than March 31 and more than 270,000 have taken  $117 million maintain social distancing.
vertising services—and luring rected companies to “provide included more of the lock- a coronavirus-related leave. In T-Mobile included a $117 The food distributor, which
advertising talent to work in as much information as is down. A clearer picture will May, executives said they ex- million “Covid-19-related had 21,000 employees as of
those shops. practicable” about how they come when more firms report pected similar costs in the costs” line item in its financial March, also increased pay. Jill
During his tenure at Del- were responding to the pan- their results for the current second quarter. statement for the quarter Sutton, the company’s general
oitte Digital, Mr. Main made demic. quarter, beginning next  $830 million ended March 31. The carrier counsel, said the company is
acquisitions for multiple cre- “We do expect some Covid- month. Kroger said in a June 18 se- said the amount covered an committed to investing in the
ative agencies and helped related costs to continue be-  $1 billion curities filing it had spent increase in employee payroll, safety and risk-management
steer the unit to $16 billion in yond the first quarter as we Target Corp. said last week more than $830 million in the third-party commissions and initiatives that kept its em-
revenue in 2018, up from $6 continue to invest in associate it would keep its starting wage quarter ended May 23. The cleaning enhancements. Chief ployees safe during the pan-
billion in 2014. and customer safety as well as at $15 an hour, after temporar- company increased pay, en- Financial Officer Braxton demic.

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TECHNOLOGY WSJ.com/Tech

By Making Its Chips, Apple Gains Control


Custom components
reduce costs, boost ‘Insourcing’ Move plier Intel in Portland, Ore.
It is part of the industry’s
performance and cut Ripples Through natural progression in pursuit

risk of product leaks The Chip Industry of greater performance, said


Carver Mead, an engineering
professor at the California In-
BY TRIPP MICKLE Apple Inc.’s decade-old stitute of Technology and for-
push to design its own silicon mer board member with Audi-
Apple Inc. built its gadget chips has roiled the semicon- ence Inc., a former Apple
empire by outsourcing produc- ductor industry. supplier.
tion to a vast ecosystem of Intel stands to lose about But he said the repercus-
chip makers and other compo- $2 billion in laptop chip sales sions have been harsh for Ap-
nent specialists. Under Chief annually, or 2% to 4% of total ple suppliers.
Executive Tim Cook, it is tak- revenue. The shares of other Even so, many continue to
ing a lot of that business back. chip makers have sunk in re- supply Apple, which provides
The company, which re- cent years as Apple has broad- substantial revenue, even as
leased its first iPhone processor ened the number of chips it they fear Apple will start mak-
in 2010, said Monday it plans to designs, forcing some suppliers ing the very components they

BROOKS KRAFT/APPLE/REUTERS
ship Macs later this year with to sell or exit businesses. provide it.
custom chips, a move that ends To power its appetite for “Everyone knows it could
a 15-year technology partner- more custom chips, suppliers happen, so it’s a conscious de-
ship with Intel Corp. Apple said said Apple has set up offices cision: Are you going to do this
the custom-designed chips are and wooed away engineers dance with the devil or say
more efficient and offer higher- from modem provider Qual- no?” Mr. Mead said.
performance graphics. comm Inc. in San Diego as well Apple declined to comment.
The plan fits into Apple’s as modem and processor sup- —Tripp Mickle
broader strategy of replacing Apple’s senior VP of hardware technologies, Johny Srouji, during Monday’s developers event.
many third-party parts with
components designed in house. customers and shareholders. and expertise it needed to de- analysts—can give Apple a two- Its success in designing ward independence from sup-
The technology giant’s built- The strategy springs from sign more components itself, year jump on competitors in custom chips over the past de- pliers has raised concerns.
for-purpose parts now account Apple’s philosophy—fostered former employees said. As it device performance because cade has cemented Johny During discussions to acquire
for about 42% of the costs of by its late co-founder Steve did so, it pushed its suppliers Apple can plan how multiple Srouji, head of hardware tech- Intel’s modem business, some
core iPhone components, ac- Jobs—that owning core tech- to incorporate custom features chips work together to limit nologies, as one of the most engineers opposed the deal,
cording to Wayne Lam, a tech- nologies provides a competi- into the parts they were pro- power consumption and free up important members of Apple’s arguing that the modem inside
nology analyst, up from 8% tive edge. Customized chips viding Apple. space inside iPhones and iPads executive team. He dictates iPhones had to meet wireless
less than five years ago. and sensors can help its It also needed a reliable for other components, analysts years ahead of time the fea- standards and couldn’t be cus-
Custom components have iPhone, iPads and Macs leap- chip foundry to make its chips. said. It also reduces potential tures in Apple’s chips that tomized in a way that bene-
cut costs, boosted perfor- frog rivals in battery perfor- It found such a partner in Tai- leaks of its product plans. power future devices. fited its products, people fa-
mance and increased Apple’s mance and features. It also wan Semiconductor Manufac- Apple’s chip division has Apple has acquired more miliar with the debate said.
control over future releases. can protect Apple from Chi- turing Co. over the past de- mushroomed over the past de- than a half-dozen semiconduc- Such tensions are natural as
The new Mac processors will nese rivals that buy univer- cade by having the supplier cade to thousands of engi- tor companies over the past a new strategy emerges, for-
shave $75 to $150 off the cost sally available parts. make its iPhone chips as de- neers, including the hundreds decade, including a $1 billion mer employees and analysts
of building a computer, esti- Apple relied on third-party mand for smartphones soared. it brought on by acquiring deal last year for Intel’s mo- said. They added that the
mate analysts, who say Apple components for years while it The initiative—called in- Raycer Graphics in 1999 and dem business. trade-off is worth it because
can pass those savings on to built the engineering depth sourcing by some suppliers and P.A. Semi in 2008. Inside Apple, the march to- of the control Apple gains.

New Work Sarah Pierce, a policy ana-


lyst at the nonpartisan Migra-
tion Policy Institute, said com-
port our country’s critical infra-
structure.”
The administration’s new
Tech and outsourcing companies are among the biggest users of
the H-1B visa program to bring skilled foreign workers to the U.S.
mixed history, agreeing on re-
opening the economy during
the pandemic and disagreeing

Visa Curbs panies could contest the order policy will block about 167,000 Top employers in FY2019 with H-1B visas by... on climate change.
in court on the basis they al- visa holders and their family ...initial approvals* ...continuing approvals† The number of visas allowed
ready invested money on immi- members from coming to the Amazon.com Cognizant a year is capped at 65,000, al-

Draw Fire gration fees and attorneys for


the visa-approval process now
cut short. Most new H-1B visas
U.S. through the end of the
year, in addition to another
158,000 people who get green
Google
3,026

2,678
Tata Consultancy Services
5,859
11,783 though exemptions and addi-
tional quotas for people with
advanced degrees from U.S.
are granted in the spring cards but are blocked from Tata Consultancy Services Deloitte universities typically swell the
Continued from page B1 through a lottery with an Oct. 1 coming until restrictions are 1,733 4,293 number of work visas granted.
contain the new coronavirus. start date. They typically cost lifted, the Migration Policy In- Microsoft Amazon.com A large portion of H-1B visas
Microsoft Corp., Google, Ap- thousands of dollars to process. stitute estimates. 1,701 4,186 has gone to Indian workers his-
ple, Facebook Inc., Intel Corp. Tech companies have em- While tech companies are Cognizant Microsoft torically. The Department of
and Cisco Systems Inc. each braced remote work during the among the largest users of 1,580 3,560 Homeland Security, in a report
had thousands of H-1B visas ap- coronavirus pandemic, which H-1Bs, outsourcing companies Facebook Google
covering fiscal 2014 applica-
proved last year, according to could make it easier for them with their main operations in tions, said 70% of H-1B appli-
1,518 3,333
government data. Amazon and to cope with new immigration India, such as Tata Consul- cants were born in India.
IBM Infosys
its cloud-computing subsidiary restrictions. Rich Lesser, CEO tancy Services Ltd. and Info- 1,164 2,895
The new restrictions send a
were among the largest recipi- of Boston Consulting Group, sys Ltd., dominate the approval message to talented workers
Apple Capgemini
ents, together winning approval said that, given the success numbers. Such companies make overseas “that they’re not wel-
1,136 2,727
for more than 8,000 H-1B visas, companies have had operating large numbers of applications come here,” said Jyoti Bansal,
which last for three years, in a distributed workforce, the for the visas and typically pro- *Includes 'new employment' or 'new concurrent employment' †Includes anything other than an entrepreneur and investor
the 12 months through Sept. visa order could lead some em- vide workers to U.S. companies 'new employment' or 'new concurrent employment', for example: continuing employment, who came to the U.S. in July
change of employer and amended petitions
30. ployers to locate more work that would rather not make Note: Figures may not include all subsidiaries. 2000 on an H-1B visa. Mr.
The new visa restrictions are abroad, denting job prospects permanent hires, an activity Source: U.S. Citizenship and Immigration Services Bansal went on to found and
set to take effect June 24 and domestically. that has drawn scrutiny from sell his company, AppDynamics,
last through the end of the Microsoft President Brad U.S. authorities in the past. leading tech cluster has hinged “In my experience, these to Cisco in 2017 for $3.7 billion,
year. They will keep hundreds Smith said Monday that now U.S. tech executives say at- on foreign-born talent, and skillsets are net job creators,” and now runs San Francisco-
of thousands of immigrants was “not the time to cut our tracting skills from overseas many of its top executives, in- Tesla’s South Africa-born Mr. based Harness Inc., a software-
from coming to the U.S. for a nation off from the world’s tal- has been crucial both for their cluding the CEOs of Microsoft, Musk said. “Visa reform makes delivery automation firm.
range of jobs, from highly ent or create uncertainty and companies and for the health of International Business Ma- sense, but this is too broad,” he —Lauren Weber
skilled engineering to manual anxiety. Immigrants play a vital the industry as a whole. Silicon chines Corp. and Alphabet are posted on Twitter. Mr. Musk and Michelle Hackman
labor. role at our company and sup- Valley’s evolution into a world- foreign-born. and the president have had a contributed to this article.

Amazon to Launch
$2 Billion Climate Fund
BY DANA MATTIOLI significantly in the last de-
Notice pursuant to Article 84 of Issuers’ Regulation cade. Global venture capital
Amazon.com Inc. is launch- and private-equity invest-
(adopted by Consob with resolution no. 11971 of 14 May 1999 and subsequent amendments) ing a $2 billion internal ven- ments in clean energy reached
ture-capital fund focused on $10.5 billion in 2019, up 6%
INCREASE OF SHARE CAPITAL TO SERVE PRIOR PUBLIC EXCHANGE OFFER FOR ALL THE technology investments to re- from the previous year and
ORDINARY SHARES OF UNIONE DI BANCHE ITALIANE S.P.A. duce the impact of climate the highest since 2010, accord-
Notice is hereby given that the minutes of the meeting of the Board of Directors of Intesa Sanpaolo S.p.A., change, the latest sustainabil- ing to BloombergNEF. Invest-
ity initiative from the technol- ments in new energy ventures
which was held on 16 June 2020, were registered on 19 June 2020 with the Torino Company Register. At the
ogy giant after criticism of its and climate-change mitigation
aforementioned meeting, the Board of Directors, in execution of the powers granted at the Extraordinary environmental record. strategies come from a variety
Shareholders’ Meeting of 27 April 2020, approved a share capital increase for a consideration (aumento The new fund, which will be of sources, including tradi-
del capitale sociale a pagamento), without pre-emption right pursuant to Article 2441, paragraph 4, first called the Climate Pledge tional venture capitalists, bil-
sentence, of the Italian Civil Code, to serve the prior public exchange offer (offerta pubblica di scambio pre- Fund, will invest in companies lionaires, governments and
ventiva, “OPS”) for all the ordinary shares of Unione di Banche Italiane S.p.A. (“UBI Banca”). across a number of industries, companies in energy, automo-
As illustrated most recently in the Board of Directors’ report prepared pursuant to Article 2441, paragraph