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Risks of
What’s
News A Deeper
Global
Slump
Business & Finance

R isks of the worldwide

economic slowdown
turning into a steeper slump
are rising, finance officials
around the globe are warn-
Escalate
ing, as strong inflation, high Finance officials warn
energy costs and climbing rising borrowing costs
interest rates take hold. A1
 U.S. workers in China’s
and high inflation boost
domestic chip industry are chances of a recession
in limbo under new Ameri-
can export-control rules that
BY ANDREW DUEHREN
prohibit U.S. citizens from
AND YUKA HAYASHI
supporting China’s advanced
chip development. A1
WASHINGTON—Risks of the
 Goldman Sachs plans to worldwide economic slowdown
KEVIN FRAYER/GETTY IMAGES

fold its biggest businesses turning into a steeper slump

into three divisions, un- are rising, finance officials
dertaking one of the big- around the globe are warning,
gest reshuffles in the Wall as strong inflation, high energy
Street firm’s history. A1 costs and climbing interest
rates take hold.
 Three senior KFC exec-
Another bad U.S. inflation
utives gave notice that
Chinese President Xi Jinping surrounded by senior members of the government at the end of the opening ceremony Sunday. report last week is likely to
they will retire at the end

Xi Sets Ambitions for China,

keep the Federal Reserve lift-
of November as rising in-
ing interest rates at a rapid
terest rates threaten to re-
clip. That could help spur the
duce lump-sum payouts
U.S. dollar higher, further ele-
for corporate pensions. B1
vating the cost of imports and

Warns of Force Over Taiwan

 Activist investor Star- debt service for many coun-
board has a sizable stake in tries. Key energy producers are
Splunk and plans to push crimping supply, feeding price
the software maker to take pressures and slowing eco-
action to boost its stock nomic activity, particularly in
price, according to people Europe. New data from China
familiar with the matter. B1 BY CHUN HAN WONG He recalled his efforts to curb ing loud applause. showed consumer spending
 P&G, Netflix and Tesla
corruption, rally public support Grip Tightens Mr. Xi directed parts of his falling sharply, another sign of
HONG KONG—President Xi for the party and champion Tactics in purges echo the speech to addressing concerns cooling economic growth.
highlight a busy coming
Jinping of China cast himself as China’s political system as a methods of Mao Zedong and about China’s ties to the rest of The uncertainty in the
week of earnings as persis-
the decisive helmsman his counterweight to Western lib- Deng Xiaoping.......................... A8 the world, amid rising geopolit- global economy has roiled
tent inflation and climb-
country needs in surmounting eral democracy. ical tensions and Beijing’s own markets, driving some wild
ing interest rates stoke
great adversity, pledging to A campaign of “self-revolu- Covid-imposed isolation, reaf- swings. Markets had been hit
talk of a recession. B3
build a more secure, powerful tion,” marked by forceful crack- der in Hong Kong and curtail- firming his support for globali- by almost relentless selling
 SPAC sponsors made and egalitarian nation as he downs on corruption and politi- ing what he called separatist zation and adherence to a de- heading into a short-lived rally
profits while investors in signaled plans to extend his cal dissent, Mr. Xi said, has activism in the island democ- cades-old national policy of toward the end of last week.
the businesses brought to decadelong rule. “ensured that the party will racy of Taiwan, which Beijing “reform and opening up.” This coming week, as more
market experienced signif- In a Sunday speech, opening never change in quality, change claims as its territory. While Mr. Xi warned of companies plan to post third-
icant losses as the blank- a Communist Party congress its color, or change its flavor”— He reiterated that Beijing risks, challenges and “even dan- quarter results, expectations
check-company boom fiz- where he is set to defy recent party parlance for threats to won’t renounce the use of force gerous storms” ahead, his re- for corporate earnings have
zled in recent years. B4 norms and claim a third term Communist rule in China. in unifying Taiwan, so as to de- port to the congress largely Please turn to page A2
as party chief, Mr. Xi issued a In televised remarks deliv- ter outside interference and promised a continuation of his
World-Wide robust defense of his record, ered from Beijing’s Great Hall splittist elements. “The com- firm-handed rule at home and a  The Outlook: Recession is
shaking off concerns over of the People, Mr. Xi also plete unification of the mother- more assertive exercise of called more likely..................... A2
Covid-19, a sluggish economy claimed significant successes in land must be realized, and it power abroad, including by  Bear-market rally seen in wild
 China’s Xi Jinping in a and troubled ties with the U.S. fighting Covid-19, enforcing or- will be realized,” he said, draw- Please turn to page A8 shifts................................................ B1
speech to a Communist Party
congress cast himself as the
decisive leader his country
needs in surmounting great
adversity, pledging to build
a more secure, powerful
Chip Rules Snag ‘Sad World’: Meta’s New
and egalitarian nation as
he signaled plans to extend
his decadelong rule. A1, A8
U.S. Executives Flagship Is Falling Short
 Russia’s failure to estab- BY LIZA LIN after spending years working
lish air superiority in the AND KAREN HAO in Silicon Valley for U.S. chip
war’s early days was a criti- makers or semiconductor
Documents depict a glitchy metaverse with uninterested users
cal blunder, Western military SINGAPORE—U.S. workers equipment firms, according to
officials say, leaving Moscow hold key positions throughout the companies’ filings. Nearly a year after Mark Zuckerberg re- ments show.
unable to stop Ukrainian at- China’s domestic chip indus- Their work histories reflect branded Facebook as Meta Platforms Inc. in Most visitors to Horizon generally don’t
tacks on the invader’s forces try, helping manufacturers de- the free flow of talent across a bet-the-company move on the metaverse, return to the app after the first month, and
with U.S.-supplied artillery velop new chips to catch up companies and borders over internal documents show the transition the user base has steadily declined since the
and other weapons. A6 with foreign rivals. Now, those the years. Some were drawn to grappling with glitchy technology, uninter- spring, according to the documents, which
 Democratic candidates workers are in limbo under China through initiatives in- ested users and a lack of clarity about what include internal memos from employees.
outraised their Republican new U.S. export control rules cluding the country’s “Thou- it will take to succeed. By comparison, Meta’s social-media prod-
opponents in 10 of the that prohibit U.S. citizens sand Talents” program, which ucts, including Facebook, Instagram and
most-competitive Senate from supporting China’s ad- was introduced in 2008 by the By Jeff Horwitz, WhatsApp, together attract more than 3.5
races as the midterm cam- vanced chip development. Chinese government to boost Salvador Rodriguez billion average monthly users—a figure
paigns headed into the fi- At least 43 senior execu- research standards. and Meghan Bobrowsky equivalent to almost half the world’s popula-
nal stretch before Election tives working with 16 publicly The Commerce Department tion. Horizon is currently reaching less than
Day, filed reports show. A4 listed Chinese semiconductor imposed export controls this While Mr. Zuckerberg has said the transi- the population of Sioux Falls, S.D.
companies are U.S. citizens, month over an array of chips tion to a more immersive online experience Horizon is designed to be a sprawling col-
 U.K. leader Truss is bat- according to an examination of and chip-making technology, will take years, the company’s flagship meta- lection of interactive virtual spaces, or
tling to save her job after company filings and official marking the U.S.’s biggest verse offering for consumers, Horizon worlds, in which users appearing as avatars
what many political analysts websites by The Wall Street salvo against China’s tech in- Worlds, is falling short of internal perfor- can shop, party and work. Yet there are
and members of her Conserva- Journal. Many of them hold C- dustry so far. mance expectations. rarely any girls in the Hot Girl Summer
tive Party regard as the worst suite titles, from chief execu- In a rare move that caught Meta initially set a goal of reaching Rooftop Pool Party, and in Murder Village
start to a British premier- tive to vice president and the industry off guard, it also 500,000 monthly active users for Horizon there is often no one to kill. Even the com-
ship in modern times. A20 chairman. sought to restrict the use of Worlds by the end of this year, but in recent pany’s showcase worlds, such as Questy’s, a
 The protest movement Almost all of the executives American know-how by bar- weeks revised that figure to 280,000. The virtual arcade featured in a Super Bowl com-
sweeping Iran spread to Teh- moved to China’s chip industry Please turn to page A4 current tally is less than 200,000, the docu- Please turn to page A12
ran’s Evin Prison, with de-
tained dissidents chanting an-
tigovernment slogans before
violence erupted and a deadly
A Salt-Loving Nation Tries Hard INSIDE Goldman to Combine
fire engulfed the facility. A20 To Shake the Habit
 The State Department is
expanding outreach to U.S.
technology firms to get
i i i Businesses Into 3 Units
Researchers in Japan are developing BY JUSTIN BAER Motors Co., the people said.
REUTERS

them more involved in some The reorganization could be

top national-security chal- high-tech chopsticks that trick eaters Goldman Sachs Group Inc. announced within days, the
lenges, U.S. officials said. A5 plans to fold its biggest busi- people said. Goldman is sched-
BUSINESS & FINANCE nesses into three divisions, un- uled to report third-quarter
JOURNAL REPORT BY MIHO INADA Beer maker Kirin Holdings KFC parent loses dertaking one of the biggest earnings Tuesday.
5G Technology: The Co. has developed chopsticks reshuffles in the Wall Street It is unclear how the make-
TOKYO—Pickled squid in- that deliver an electric current
managers as interest firm’s history. over will shake up Goldman’s
space race for satellite nards and cucumbers in brine to trick taste buds into tasting rates hit pension Goldman will combine its senior leadership team, though
networks. R1-12 are among the foods that make a lot of salt in foods that have plans. B1 flagship investment-banking at least a few executives will
Japanese meals strik- only a little. Dipping the and trading businesses into have new roles, the people
CONTENTS Outlook........................ A2 ingly salty. Don’t forget utensils into a bowl of one unit, while merging asset said. Marc Nachmann, the
Arts in Review... A15 Personal Journal A13-14
Business & Finance B2,5 Sports........................ A16 the soy sauce. low-sodium miso soup and wealth management into firm’s co-head of trading, will
Business News...... B3 Technology............... B4 Government health makes it taste like the another, people familiar with slide over to help run the com-
Crossword.............. A16 U.S. News............. A2-5 officials worry all that real thing. A four-posi- the matter said. Marcus, Gold- bined asset- and wealth-man-
Heard on Street..... B8 Weather................... A16
Opinion.............. A17-19 World News A6-8,20
salt is driving high tion dial controls the man’s consumer-banking arm, agement arm, they said.
blood pressure, a condi- degree of saltiness, and will be part of the asset- and The reorganization is the
tion sprinkled across it works for soups, wealth-management unit, the latest step in Chief Executive
> half the adults in Japan. stews and other dishes PERSONAL JOURNAL people said. David Solomon’s push to shift
Yet rather than trying with liquid. Designer Ralph Lauren A third division will house Goldman’s center of gravity to-
to remake Japanese cui- Maneuvering the transaction banking, the bank’s ward businesses that generate
sine, food researchers high-tech chopsticks—
holds his first fashion portfolio of financial-technol- steady fees in any environ-
are working to sate salt still in the laboratory show on the West ogy platforms, specialty lender ment. It also reflects the firm’s
s 2022 Dow Jones & Company, Inc.
All Rights Reserved lust without sodium’s stage—is less than ele- Coast. A14 GreenSky, and its ventures struggle to overcome skepti-
unsavory side effects. Please turn to page A12 with Apple Inc. and General Please turn to page A5
A2 | Monday, October 17, 2022 * * THE WALL STREET JOURNAL.

U.S. NEWS
THE OUTLOOK | By Harriet Torry and Anthony DeBarros
ECONOMIC
Recession Now Seen as More Likely CALENDAR
Monday: China’s National Bu-
reau of Statistics releases third-
quarter gross domestic product,
The U.S. is forecast to en- Economists surveyed in October by The Wall Street Journal forecast a 63% likelihood the The past few years have along with September retail
ter a recession in the coming economy will head into recession within 12 months as the Federal Reserve raises interest rates been volatile for the U.S. sales and fixed-asset invest-
12 months as the Federal Re- to battle inflation. economy as it faced shocks ment, a measure of infrastruc-
serve battles to bring down including the Covid-19 pan- ture and equipment investing.
persistently high inflation, Probability the U.S. is in a U.S. Gross Domestic Product, When do you expect the demic and Russia’s invasion China’s economy expanded at a
the economy contracts and recession in next 12 months annual change Federal Reserve to reverse of Ukraine. In 2019, before the 0.4% annual rate in the second
employers cut jobs in re- including today course and make its next pandemic hit, the economy quarter, its weakest growth rate
Forecasts in 2022:
sponse, according to The Wall rate cut? grew 2.6%. GDP contracted in more than two years.
100% April June July Oct.
Street Journal’s latest survey 1.5% in 2020 and bounced Tuesday: The Federal Re-
of economists. Q1 2023 back strongly in 2021, posting serve releases September fig-
On average, economists put 80 3.0% 5.7% growth. This year, as ures on industrial production,
63% Q2 ’23
the probability of a recession Forecasts for annual consumers and businesses which measures the output of
2.5 GDP growth continue
in the next 12 months at 63%, Q3 ’23 grapple with high inflation factories, mining and utilities. In-
60 to decline.
up from 49% in July’s survey. 2.0 and supply-chain issues, econ- dustrial output decreased 0.2%
Q4 ’23
It is the first time the survey omists expect the economy to in August from the prior month.
pegged the probability above 40 1.5 Q1 2024 eke out growth of 0.2%. The National Association of
50% since July 2020, in the Home Builders releases its Octo-

I
wake of the last short but 1.0 Q2 ’24 nterest-rate increases by ber housing-market index,
20
sharp recession. Q3 ’24 the Fed are expected to based on a survey of home
0.5
Their forecasts for 2023 further slow demand for builders on single-family housing
RECESSION 2025,
are increasingly gloomy. 0 0 or later housing next year. Economists market conditions. The index de-
Economists now expect gross 2011 ’15 ’20 2022 ’23 0 10 20 30% expect home prices to decline clined in September for the
domestic product to contract 2.2% in 2023, measured by ninth consecutive month to its
in the first two quarters of the U.S. Federal Housing Fi- lowest level since May 2020
the year, a downgrade from Economists in October were The Fed will raise interest rates ... nance Agency’s seasonally ad- amid higher construction costs
the last quarterly survey, more likely to say that the Fed justed purchase-only house and rising interest rates.
when they penciled in mild will raise interest rates too ... too much and October survey price index. That would mark Wednesday: The U.K.’s Office
much, causing unnecessary cause unnecessary
growth. On average, the econ- July survey the first such decline since for National Statistics releases
economic weakness. economic weakness
omists now predict GDP will 2011. inflation data for September.
contract at a 0.2% annual rate The Fed has raised its The U.K.’s consumer-price index
in the first quarter of 2023 ... about the right benchmark federal-funds rate rose 9.9% in August from a year
and shrink 0.1% in the second amount to balance by 0.75 point at each of its earlier, down from a 10.1% rise in
growth and inflation
quarter. In July’s survey, they last three meetings, most re- July as gasoline prices dropped.
expected a 0.8% growth rate cently in September, bringing The Commerce Department
in the first quarter and 1% ... too little and allow the rate to a range of 3% to releases September figures on
Note: Annual GDP change is from
growth in the second. fourth quarter to fourth quarter
inflation to remain 3.25%. Another uncomfortably new residential construction
Employers are expected to Source: Wall Street Journal surveys
too high high inflation reading for and building permits. Housing
respond to lower growth and of economists 0 10 20 30 40 50 60% September is likely to keep starts rose 12.2% in August from
weaker profits by cutting jobs the Federal Reserve on track the month before while building
in the second and third quar- “ ‘Soft landing’ will likely casts suggest that they expect which was 3.5% in September, to increase interest rates by permits decreased 10% in the
ters. Economists believe that remain a mythical outcome a recession to be relatively will rise to 3.7% in December 0.75 percentage point at its same period.
nonfarm payrolls will decline that never actually comes to short-lived. Of the economists and 4.3% in June 2023. Econ- meeting next month. Canada’s statistics agency
by 34,000 a month on aver- pass,” said Daniil Manaenkov, who see a greater than 50% omists’ average forecast for Economists on average ex- releases inflation data for Sep-
age in the second quarter and an economist at the Univer- chance of a recession in the the jobless rate at the end of pect the Fed to lift the fed- tember. Canada’s annual inflation
38,000 in the third quarter. sity of Michigan. A soft land- next year, their average ex- next year is 4.7%, and they eral-funds rate to 4.267% in rate rose 7% in August from a
According to the last survey, ing occurs when the Fed pectation for the length of a expect it to stay broadly at December, which implies at year earlier.
they expected employers to tightens monetary policy recession was eight months. that level through 2024. least one more increase of 0.5 The Fed releases its periodic
add about 65,000 jobs a enough to reduce inflation, The average postwar reces- While a 4.7% unemployment point that month. They see compilation of economic anec-
month in those two quarters. but without causing a reces- sion lasted 10.2 months. rate is low by historical com- the federal-funds rate peaking dotes collected from businesses
Forecasters have ratcheted sion. For the year as a whole, parison and indicative of the at 4.551% in June next year. around the country, known as
up their expectations for a re- “The coming drag from they expect the economy to current worker shortage, it Most economists expect the Beige Book. The report will
cession because they increas- higher rates and stronger dol- grow 0.4% in 2023, through suggests that the Fed’s efforts that the Fed will eventually include details from businesses
ingly doubt the Fed can keep lar is enormous and will the fourth quarter compared to bring down inflation will have to reverse course and on inflation, employment and
raising rates to cool inflation knock off about 2.5 percent- with the fourth quarter of the inflict some pain on workers. start cutting rates late next output growth.
without inducing higher un- age points from next year’s prior year. In 2024, they see “The Federal Reserve is year or in early 2024. Thursday: The National Asso-
employment and an economic GDP” growth, said Aneta the economy growing 1.8%. choosing between the lesser The survey of 66 econo- ciation of Realtors reports sales of
downturn. Some 58.9% of Markowska, chief economist of two evils—take a recession mists was conducted Oct. 7 to previously owned homes in Sep-

S
economists said they think at Jefferies LLC. “In light of till, forecasters expect with a rise in unemployment 11. Not every economist an- tember. Existing-home sales fell
the Fed will raise interest this, it’s hard to imagine how the labor market to today or risk a more corro- swered every question. for the seventh straight month in
rates too much and cause un- the U.S. can avoid a reces- weaken in the months sive and entrenched inflation August to a seasonally adjusted
necessary economic weak- sion.” and years ahead. They predict taking root,” said Diane  Recession talk rises as earnings annual rate of 4.8 million, the
ness, up from 45.6% in July. Economists’ average fore- the unemployment rate, Swonk of KPMG. season ramps up....................... B3 weakest rate since May 2020.

Economic because the strength of the

dollar keeps the pressure on
our currencies,” Barnabás
tion of the Petroleum Export-
ing Countries and its Russia-
led allies recently announced a Heating Bills This Winter
Outlook Virág, deputy governor of Hun-
gary’s central bank, said Mon-
day at an event sponsored by
major production cut, which
raised oil prices. The Interna-
tional Energy Agency warned
Expected to Top Last Year’s
Darkens the Institute of International
Finance.
The U.S. economy has
Thursday the decision could be
a tipping point for the global
economy to enter a recession. BY RYAN DEZEMBER Historical and forecast average household winter heating
shown signs of resilience this There is no official defini- expenditures by energy type
Continued from Page One year. The labor market is cool- tion of a global recession, but High fuel prices have been Heating oil Propane
been heading down. ing but remains healthy. U.S. many economists said one es- a big driver of inflation, COLD WINTER
International Monetary retail spending was unchanged sential element is economic pumping up the cost of sum- $2,500
BASE CASE FORECAST
Fund Managing Director in September from August and growth falling below popula- mer travel and air condition- 2,000 WARM WINTER
Kristalina Georgieva said last up 8.2% from a year earlier, the tion growth, or roughly 1.1%. ing, and federal energy fore- 1,500
week at a gathering of global Commerce Department said The World Bank forecasts casters say that staying warm
finance officials in Washington Friday. global growth of 1.9% next this winter will be more ex- 1,000
Years refer to
that “the worst is yet to come.” The IMF forecasts the U.S. year. pensive as well. 500
October through March
“Across many economies,” economy will expand 1% next “That’s dangerously close to Americans should expect 0
she said, “recession risks are year, down from 1.6% this year. a world recession,” said David bigger home-heating bills
rising.” Economists polled by The Wall Malpass, World Bank Group compared with last winter, 2016-17 2022-23 2016-17 2022-23
Economies representing Street Journal put the proba- president. thanks to higher prices for Electricity Natural gas
more than a third of global bility of a U.S. recession in the Another risk to the global natural gas, heating oil, pro-
output will contract next year, next 12 months at 63%, up economy is the danger that pane and electricity as well as
while the world’s three largest from 49% in July’s survey. rapidly rising interest rates slightly colder weather, the
economies—the U.S., the Euro- The U.S. economy’s momen- will trigger financial-system U.S. Energy Information Ad-
pean Union and China—will es- tum worries other countries disorder, the IMF warned in a ministration said in its sea-
sentially stall, the IMF fore- because it gives the Fed lati- report last week. sonal outlook.
casts. Overall, the fund projects tude to raise interest rates A U.K. tax-cut plan aimed at Government energy special-
2.7% growth in 2023, down even more, Sri Mulyani Indra- stimulating growth triggered a ists predict it will cost $931 to 2016-17 2022-23 2016-17 2022-23
from 3.2% this year. wati, the finance minister of major bond selloff last month warm the typical home that is
“The situation is worse than Indonesia, said in an interview. that forced the Bank of Eng- heated with natural gas be- Source: U.S. Energy Information Administration
Aziz Sunderji and Thaddeus Chambers/THE WALL STREET JOURNAL
during Covid-19,” Mohamed A weakening global econ- land to step in to stabilize the tween this month and March.
Maait, the Egyptian finance omy, high interest rates and a financial system. The U.K. gov- That is up 28% from a year
minister, said Wednesday on a strong dollar “really can hurt ernment reversed key parts of earlier in nominal terms. If it As recently as August, the at all-time highs, while Rus-
panel hosted by the Center for the plan Friday, partly because gets colder than federal outlook for winter-fuel prices sia’s invasion of Ukraine cre-
Global Development. of the market reaction. weather forecasters expect, looked a lot worse for con- ated insatiable demand in Eu-
Many of the policy makers
at last week’s meetings in
‘The worst is yet to Economic policy makers
around the world are monitor-
heating bills could be 51%
more than last year for homes
sumers. Natural-gas futures
hit shale-era highs above $10
rope for overseas shipments
of liquefied natural gas.
Washington see high U.S. infla- come....Across many ing stresses in financial mar- with gas-fueled furnaces and per million British thermal Natural-gas prices have de-
tion and the Fed’s response as
a central threat to their own
economies, recession kets, knowing from history
that climbing interest rates can
boilers, which is nearly half of
U.S. households. A 19% year-
units, and the amount of gas
in storage was more than 12%
clined by about a third since
then.
economic prospects. risks are rising.’ cause threats to financial sta- over-year jump is anticipated below normal levels. Sky-high
The U.S. consumer-price in- bility from unexpected sources. if it is a warm winter. coal prices kept gas consump-  Europe’s energy resolve faces
dex rose 8.2% in September Lending from the Fed’s so- The base case for those tion among U.S. power plants test this winter........................ A7
from a year earlier, with core called discount window for who burn heating oil—mainly
prices—which exclude volatile all countries in the world,” emergency loans ticked up in in the Northeast, where low
food and energy prices—rising Mrs. Sri Mulyani said. recent weeks, to $7.67 billion imports and closed refineries CORRECTIONS  AMPLIFICATIONS
6.6%. That was the fastest rate “A global recession is very as of Wednesday, the highest have reduced supply—is for
in four decades, a sign of possible,” she said. level since June 2020. 27% greater expense. Those Readers can alert The Wall Street Journal to any errors in news articles by
emailing [email protected] or by calling 888-410-2667.
strong underlying price pres- Russia’s war in Ukraine The Fed also lent $6.5 bil- with propane, popular in rural
sures. weighs on the world economy. lion to two foreign central areas, and electric heat are ex-
The core-CPI reading likely It has hampered exports of banks last week, part of stand- pected to pay 5% and 10%
keeps the Fed on track to raise food and fertilizers from the ing arrangements to extend more, respectively, if tempera- THE WALL STREET JOURNAL
its benchmark interest rate by countries, endangering 345 dollars and relieve pressures in ture forecasts hold. (USPS 664-880) (Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
0.75 percentage point next million people, the IMF said. dollar-funding markets. “Winter energy expendi- Editorial and publication headquarters:
month. The report heightens Russia has throttled back natu- “The thing I’m mindful of is tures for most households are 1211 Avenue of the Americas, New York, N.Y. 10036
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Periodicals postage paid at New York, N.Y., and other mailing offices.
slowdown in rate increases. sending manufacturers there that is readjusting to an ex- winter,” said Joseph DeCarolis,
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The Fed’s rapid rate in- reeling and pushing many traordinary shock,” said Kan- EIA administrator. “Much
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“All of us would like to “face a host of significant Nick Timiraos down from summer highs as
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THE WALL STREET JOURNAL. Monday, October 17, 2022 | A3

U.S. NEWS

Lyft Fights
Newsom on
Measure to
Fund EVs
BY PREETIKA RANA

Lyft Inc. is leading the fight

for a new green tax in Califor-
nia, pitting the ride-sharing
company against the governor
over who should pay for the
shift to electric vehicles.
San Francisco-based Lyft is
the biggest financier of efforts
to pass a November ballot
measure that seeks to make
the wealthiest Californians pay

MATT HOUSTON FOR THE WALL STREET JOURNAL

some of the costs of transi-
tioning to greener forms of
transportation and fund wild-
fire prevention. Lyft and other
supporters are proposing an
additional 1.75% tax on income
earned over $2 million for the
next 20 years, arguing that
more money is needed to engi-
neer the state’s shift to cleaner
energy.
Gov. Gavin Newsom—who
has backed some of the strict- Damage from Hurricane Ian was seen in Florida’s Fort Myers Beach. Ian is expected to set a record for boat loss, surpassing superstorm Sandy.

Boat Salvage Is Big Business After Ian

est environmental laws in the
country—surprised many in
California when he came out
against the ballot measure,
known as Proposition 30. The
Democrat is appearing in a
television ad calling it “a cyni- BY PETER GRANT vager, part psychologist to guy came up and said, ‘This and persuade them to wait for Services International Inc.
cal scheme devised by a single calm the nerves of emotional your boat?’ ” Mr. Smith re- professionals to salvage their When big hurricanes hit, Sea
corporation to funnel state in- Heather O’Brien makes a liv- owners. called. “I said: ‘Yep.’ He said: boats, rather than accept offers Tow typically boosts its opera-
come tax revenue to their ing rescuing small boats and “I’m taking the time to ‘You’re sitting on my car.’ I from amateurs. A mishandled tions in stricken areas by mov-
company.” yachts in the waters near Fort speak to everyone who calls, to said: ‘Well, I couldn’t have job can do more damage to a ing in teams from other re-
Lyft rebuts Mr. Newsom’s Myers, Fla. Since Hurricane say: ‘I understand this is helped that.’ ” boat than the storm. gions.
suggestion, saying that tax Ian, she has been busy. stressful,’” says Ms. O’Brien. Gene Johnson, who has “Some people are using Sea Tow crews have been
revenue would go to state On a typical weekend this “Please be patient.” spent summers on his boat in tractors. Some people are put- out on the water since the day
agencies leading the transition time of year, Ms. O’Brien might Hurricane Ian is expected to Fort Myers, was at his main ting lines on trucks to yank it after the storm hit. With rein-
and that none of it would be get a dozen or so calls for help, set a record for boat loss, sur- residence in White Bear Lake, out the yard,” she said. “They forcements from other Sea Tow
earmarked for the ride-sharing mostly from locals who need a passing superstorm Sandy, Minn., when the storm hit. He just want your $5,000 and then franchises, it now has four
tow because their boat ran out which in 2012 caused about saw a television newscast of a want to move on to the next crews working with tow boats,
of gas or their battery was de- $650 million in damage to heavily damaged zone where one.” barges, cranes, trailers and lift
pleted. After Ian, she received about 65,000 boats, according his 63-foot yacht lay in the Still, much of the initial tow- bags.
Both camps say they more than 2,000 calls, many of to officials in the insurance, background. Its name, Front ing and untangling has fallen to Sea Tow’s trickiest salvages
support cleaner a much more serious nature. salvage and boating industries. Page, was clearly visible. marine-services businesses like have included pulling a 26-foot,
The Category 4 storm left The hurricane’s final tally prob- “It was shocking,” he said. the one owned by Ms. O’Brien’s center-console boat out of a
energy; they disagree boats and yachts of all sizes ably won’t be known until after “For my wife, it was a lot of husband, Pat O’Brien. Tools of commercial building in Fort
on who should pay. stuck between buildings or tan- the monthslong process of ex- tears.” the trade include cranes, Myers Beach. Crews used a
gled in mangrove trees. Others tracting boats from where the Both Messrs. Smith and barges, air bags and winches to crane to avoid further damage
were smashed into cars, or storm deposited them, then ei- Johnson said that their boats place boats in trailers or, if to the vessel and property, lift-
stacked on top of each other ther junking or repairing them. are probably totaled and they they are seaworthy, in the wa- ing the boat to the back of a
industry. The company has like pickup sticks. Greg Smith, a Fort Myers aren’t planning to replace ter for a tow. Chain-saws are trailer.
provided almost all of the Ms. O’Brien, general man- resident, went looking for his them. “It’s not the way I for when a vessel is beyond Other boats have been
$47.8 million backing Prop 30, ager of Sea Tow Fort Myers, is 56-foot charter fishing boat the wanted to retire,” Mr. Smith salvation and needs to fit into wedged into swimming pools.
which was originally proposed now methodically helping ex- day after the hurricane and said. a dump truck. Cranes and trailers have to be
by environmental groups. tricate these stranded and found it crushing a vehicle Ms. O’Brien said one of the The O’Briens’ business is used to extract them, with
The No campaign has so far sunken vessels from the land across the street from where hardest parts of the job is try- one of 94 franchisees of straps that crews use to turn
raised $19 million from donors and sea, acting as part sal- his marina used to be. “This ing to calm down boat owners Southold, N.Y.-based Sea Tow the boats after they are lifted.
such as the California Teach-
ers Association, Netflix Inc.

Solar Power Weathered Storm’s Hit in Florida

Chief Executive Reed Hastings,
Sequoia Capital’s Michael
Moritz and Silicon Valley in-
vestor Sam Altman, according
to campaign filings. The cam- BY JENNIFER HILLER lines and stronger power poles, homes in Medley are linked, lar infrastructure has weath- communities to the grid.
paign said it spent roughly that helped them weather the and solar on the roof of one ered hurricanes unscathed Aging infrastructure and ex-
half of the money raised on Neighborhoods powered by storm and its aftermath. home has the ability to power while some has sustained dam- treme weather events are af-
airing Gov. Newsom’s ads. solar panels with backup bat- At the new Medley neigh- neighboring houses, said Ar- age—a continuing area of study fecting electric reliability
Both camps say they sup- teries weathered the direct on- borhood south of Tampa, util- chie Collins, chief executive of for the National Renewable En- across the U.S., causing more
port the switch to cleaner en- slaught of Hurricane Ian in ity Tampa Electric Co. has a pi- Tampa Electric, a subsidiary of ergy Laboratory. To figure out businesses and homeowners to
ergy. They disagree on who Florida, utilities and developers lot project with 37 new homes Emera Inc. best practices, the laboratory buy backup generators and so-
should pay for it. said, keeping the lights on equipped with utility-owned “They were isolated from has looked at factors including lar-plus-storage. Microgrids,
Some 80% of the $100 bil- throughout the storm while rooftop solar and home batter- the grid, and they rode through system siting and design, main- which can create islands of
lion in tax revenue the mea- millions of others lost power. ies. When Ian knocked out the entire hurricane without tenance and avoiding things power for campuses, busi-
sure could generate over the At least three solar-powered power to about 295,000 cus- any loss of power, whereas the such as solar rooftop over- nesses or neighborhoods amid
next two decades would be communities near Fort Myers tomers in the area, Medley was neighbors who weren’t on that hangs that can catch the wind. a wider blackout, grew more
spent on charging stations and and Tampa made it through Ian disconnected from the rest of microgrid unfortunately did Ian wrought significant than sevenfold between 2010
motivating consumers to buy without losing electricity. Some the electric system, but it lose power,” Mr. Collins said. damage to Florida’s electric in- and 2019, according to the in-
electric vehicles, according to also had hardened electrical in- never lost power. No power system is storm- frastructure, especially to dis- dustry group Edison Electric
the state Legislative Analyst’s frastructure, including buried The power systems of the proof. In recent years, some so- tribution lines that connect Institute.
Office. About 20% would be
used to combat fires. Trans-
portation and wildfires ac-
count for most of California’s
carbon emissions.
Polls showed the measure
Tourism Fatigue Triggers Ballot Items in Coastal Maine
had a good chance of passing BY JON KAMP barking passengers at 1,000 a
in the left-leaning state until day. In a wrinkle, that item re-
Mr. Newsom jumped into the Voters in Bar Harbor, mains on the ballot despite its
fray with the ad campaign last Maine, a tourism hot spot in backers pulling support after
month. Prior polls had shown the state known as Vacation- reaching an agreement with
support well above 50%, but land, are set to soon decide union groups meant to address
an October poll by UC Berke- whether to turn back incoming emissions concerns by develop-
ley’s Institute of Governmental waves of cruise passengers. ing shore-based power stations.
Studies showed support slip- If the ballot question passes The concept of tighter re-
ping below 50%. on Nov. 8, it would require Bar strictions remains a live debate
Companies such as Lyft Harbor to limit the number of in Bar Harbor, which is located
stand to benefit if the proposal disembarking cruise-ship pas- on Maine’s Mount Desert Island
is passed because California sengers to 1,000 a day. Today, and is a stopping point for many
ASHLEY L. CONTI FOR THE WALL STREET JOURNAL

requires 90% of ride-share ships with a capacity of tourists heading to Acadia.

miles to be traveled on zero- roughly 4,000 guests regularly Some business owners there
emission vehicles by 2030. anchor there, sending thou- say the passengers don’t over-
That transition is expected to sands of people into the small whelm the town and have be-
result in huge spending as downtown’s streets or vehicles come vital contributors to the
drivers have to change vehi- bound for nearby Acadia Na- economy. “We live and die by
cles and companies have to tional Park. the cruise-ship schedule,” said
help ensure they have conve- Some days feature multiple Robin Wright, who owns a local
nient charging stations. ships of varying sizes. Charles deli, bakery and pastry shop.
Lyft’s spending on Prop 30 Sidman, a 72-year-old investor Her deli sold 157 lobster rolls
is “kind of like a drop in the behind the citizen’s petition, on a recent October day after a
bucket” compared with the said cruising passengers are big ship arrived with thousands
costs of electrifying its fleet, clogging the small town of of passengers, triple what her
said Robert Mollins, an analyst roughly 5,200 people and have Some Bar Harbor residents complain about clogged streets, but the foot traffic is good for local shops. sales would look like without
covering the ride-share indus- become off-putting for locals the influx, she said.
try for Gordon Haskett Re- and visitors alike. ships a day—after a temporary An industry group, Cruise said Jackie Levesque, 68, who is The town courted cruise
search Advisors. “It’s going to “We are overrun,” Mr. Sid- pandemic halt. Lines International Association, concerned about the environ- ships decades ago to help ex-
be a struggle to get electric man said. “We think tourism is Bar Harbor has tried some said it and its members are mental impact of big cruise tend the tourism season beyond
vehicles in the hands of ride- a good thing, we like to share it. measures to manage cruise-vol- committed to sustainable tour- ships. Labor Day. But concerns about
share workers just because of But too much of a good thing ume concerns. The town’s pri- ism practices in port communi- The local chamber of com- the ships’ impact were growing
the affordability,” he said. turns into a bad thing.” mary ship anchorage is now ties around the world. “Collabo- merce generally supports the before the pandemic and con-
Electric truck and SUV The cruise volume is typi- tucked behind a small island ration with community leaders, town and industry agreement, tinued after cruising resumed,
maker Rivian Automotive Inc. cally heaviest in September and near the downtown area, ob- residents, port authorities, and said Alf Anderson, the cham- said Kevin Sutherland, Bar Har-
and electric-scooter startup October as leaf peepers arrive scuring ships there from view. others is key to providing solu- ber’s executive director. But he bor’s appointed town manager.
Lime have also endorsed Prop to see the heavily forested The town also reached an tions that also safeguard the said the ballot measure’s tighter A consulting firm in 2021 found
30. Uber Technologies Inc. said state’s colorful foliage. And agreement with the cruise in- economic health of communi- limits are too drastic. slightly more than half of those
it isn’t involved in the cam- numbers have been growing, dustry this year that would cap ties,” the group said. Elsewhere in coastal Maine, surveyed there held negative
paign and instead is focused with the ships back in monthly passenger volume at Some residents say the town voters in the state’s largest city, views on the impact of cruise
on its own efforts to get driv- force—167 are expected to call 65,000 in September and Octo- didn’t go far enough. “Smaller Portland, are also to decide via a tourism. “We are experiencing
ers and riders to make the on Bar Harbor this year, and ber, a reduction of about 30% ships are what we think we referendum next month whether this feeling of too much,” Mr.
switch to EVs. there are sometimes multiple from current limits. need for sustainable tourism,” to cap the number of disem- Sutherland said.
A4 | Monday, October 17, 2022 P W L C 10 11 12 H T G K R F A M 1 2 3 4 5 6 7 8 9 O I X X ***** THE WALL STREET JOURNAL.

U.S. NEWS

Money Pours Into Senate Campaigns

Democrats outraise Through Saturday, about Cash on hand in competitive Top Senate race ad spending Democratic Lt. Gov. John But the incumbent, who is
$330 million from party com- Senate races* since Labor Day† Fetterman outraised celebrity leading in the polls, enters the
GOP opponents in mittees and outside groups surgeon Mehmet Oz in Penn- final weeks with slightly more
$0 million 10 15 Democrat Republican Total
most close races that has gone into television, social sylvania’s Senate race, $22.4 cash on hand, $4.5 million to
media and radio advertising Raphael $0 million 50 75 million to $15.9 million. Mr. $3.5 million.
will determine control since Labor Day across the 10 Warnock Oz’s total included a $7 million In Ohio, Rep. Tim Ryan, a
(D., Ga.) Georgia
competitive states, according loan from himself. Mr. Fetter- Democrat, raised more than
BY CHAD DAY to data from AdImpact. That man started October with twice as much as J.D. Vance,
AND JOHN MCCORMICK figure includes some spending Mark Kelly Pennsylvania more money in his campaign an author and venture capital
by the national parties in coor- (D., Ariz.) account than Mr. Oz, $4.2 mil- investor. Mr. Ryan, a 10-term
Democratic candidates out- dination with various cam- lion to $2.5 million. congressman, raised $17.3 mil-
Nevada
raised their Republican oppo- paigns. In Arizona, Democratic Sen. lion, compared with $6.9 mil-
nents in 10 of the most compet- Advertising purchases by Marco Rubio Mark Kelly raised more than lion for Mr. Vance. But Mr.
itive Senate races as the GOP party committees and (R., Fla.) Wisconsin $23 million, more than four Vance, who gave his campaign
midterm campaigns headed leadership-linked groups have times the $5.1 million reported a $700,000 loan, started Octo-
into the final stretch before largely offset any Democratic Herschel Arizona by Republican challenger Blake ber with more than twice as
Election Day, new fundraising campaign cash advantage, Walker Masters, whose total included much in his campaign account,
reports filed with the Federal AdImpact data show. From La- (R., Ga.) a personal loan of more than $3.4 million to $1.4 million.
North
Election Commission show. bor Day through the weekend, Carolina $860,000. While Mr. Kelly Like Mr. Masters in Arizona,
More than $175 million Republican-backing groups spent nearly $35 million in the Mr. Vance benefited from mil-
Val Demings
flowed into the campaigns of have poured more than (D., Fla.) quarter, he still started this lions of dollars in advertising
Ohio
Democratic Senate candidates $202 million into advertising, month with more than $13 mil- funded by billionaire Peter
across those races in the third compared with $127 million by *As of Sept. 30 †Includes spending by the candidates and their allies on broadcast, cable and
lion in cash on hand, compared Thiel, a technology entrepre-
quarter, according to reports Democratic groups. satellite TV, as well as radio and digital through Oct. 14. with Mr. Masters’s $2.8 mil- neur, ahead of his GOP primary
filed over the weekend. That The largest share of those Source: Federal Election Commission (top cash); AdImpact (ad spending) lion. win in May. But he has strug-
compares to nearly $77 million ads are blanketing Democratic- Nevada Sen. Catherine Cor- gled to keep up with Mr.
for opposing Republican cam- held seats in Georgia and Ne- Democratic campaigns with an ported raising more than $26.4 tez Masto raised $15.3 million Ryan’s fundraising since then,
paigns. vada and GOP-held seats in edge over their opponents, big million from July through Sep- and started October with and the Senate Leadership
The filings show Senate Pennsylvania and Wisconsin, money doesn’t always result in tember, while spending more roughly $5.1 million in the Fund, a Republican super PAC
campaigns from both parties in states with the tightest races electoral success. In 2020, for than $34.8 million. bank. Her opponent, former allied with Senate Minority
competitive states are burning and where control of the cur- example, Republican Sen. Su- Mr. Warnock started the fi- Nevada Attorney General Leader Mitch McConnell, has
through cash, with more than rently 50-50 split Senate will san Collins of Maine won re- nal stretch of the campaign Adam Laxalt, reported cash on had to move into the state in a
half of the 20 major party cam- likely be decided. The nonpar- election by nearly 9 percent- with $13.9 million in cash re- hand of $4 million after rais- significant way to bolster his
paigns spending more than tisan Cook Political Report age points despite being serves, compared with $7.4 ing $6.2 million. campaign.
they raised in the quarter. Still, rates those contests as tos- outraised nearly 3 to 1 by her million for his Republican op- The $20.4 million raised by A win by Mr. Ryan in a state
the money spent by campaigns sups. Seats in Arizona, Colo- opponent. ponent, former football star Democratic challenger Lt. Gov. Republican Donald Trump
has been dwarfed by the spend- rado, Florida, New Hampshire, Georgia Sen. Raphael War- Herschel Walker. Mr. Walker Mandela Barnes in Wisconsin twice won by 8 percentage
ing by super PACs, the cam- North Carolina and Ohio are nock, a Democrat, raised and raised $11.7 million and spent was significantly more than points, would sharply alter
paign arms of the national par- also considered competitive. spent the most of any Senate just slightly less than that the $12.3 million collected by Democratic prospects of win-
ties and other outside groups. While the reports show candidate. His campaign re- over the quarter. Republican Sen. Ron Johnson. ning control of the chamber.

VALERIE PLESCH FOR THE WALL STREET JOURNAL (2)

Afghan Children
Face Bureaucratic
Tangle in the U.S. Abdul Basit Nahibi, above left, is one of the many Afghan unaccompanied children who have received no news about when, if ever, they
will see their parents again. Above, Mahsa Zahrabi with her foster parents, Katlyn Williams and Phil Williams, at home in Stafford, Va.

BY JESSICA DONATI who came to the U.S. without Mary Giovagnoli, senior Mahsa’s case worker has since Lutheran Social Services of He got separated from his
either parent, after being sepa- counsel at Kids In Need Of De- shared an application that the National Capital Area, parents and siblings at Kabul
Mahsa Zahrabi, an Afghan rated from them in the chaos fense, which represents about needs to be filled out and sent both declined to comment. airport after making it
teenager who was evacuated at Kabul airport during evacu- 70 unaccompanied Afghan to the State Department. While waiting for answers, through the gate with an un-
to the U.S. on her own after ation flights more than a year children, says it took months “They had no clue how Mr. and Mrs. Williams helped cle and three cousins.
being separated from her fam- ago. The majority have been of advocacy to push the gov- long the process will be, and Mahsa apply for asylum in the His uncle, Murad Ali
ily at Kabul airport last year, placed with a family member ernment to create a reunifica- didn’t detail how the attor- U.S. several months ago. Like Bikzad, a former U.S. Embassy
was sleeping on the floor in or friend, according to the Of- tion policy at all. Meanwhile, neys are working or are in- all Afghans brought to the guard, lost his wife and one of
her aunt’s unfinished base- fice of Refugee Resettlement, troubled relations with the volved,” Mrs. Williams said, U.S. last year, Mahsa’s right to their children at Kabul air-
ment in Virginia when a leaving fewer than 100 in gov- Taliban, the lack of an em- describing her call with the remain in the country will ex- port, and they got left behind
healthcare worker visited the ernment care. bassy presence and limited agency. “I asked why this pro- pire after two years, along as well. He lives with the
home. The government stops mon- flights have restricted evacua- with all her documentation. three children who made it
The healthcare worker, who itoring unaccompanied chil- tion efforts to a trickle. The Afghanistan Adjustment out and his nephew, Abdul Ba-
had been called to check on dren soon after their release to “There’s very little written Act, which is supposed to sit, in a one-bedroom apart-
the girl after Mahsa went to a a guardian. The Biden adminis- down on paper about this,
More than 1,550 grant evacuees a permanent ment in Virginia.
local hospital with a panic at- tration says that any family nothing that has been handed Afghan children came status in the U.S., has yet to The children sleep in the
tack, was alarmed by her living separated at the Kabul airport out to people,” Ms. Giovagnoli pass in Congress. bedroom, while the uncle
conditions. The healthcare is eligible for a seat on a very said. “I think it is in many
to the U.S. without Mahsa attends school, is sleeps on the couch. The rent
worker tapped into her net- limited number of evacuation ways, a classic bureaucratic either parent. studying to get her driver’s li- is days overdue, and he has
work of churches and volun- flights out of Afghanistan, but hesitancy to want to provide cense and works at a restau- borrowed money from a
teers and found her a foster families and their legal advo- information that could change rant on the weekend to make neighbor to cover the bills.
family instead. cates have received conflicting from day to day.” money to send home. She is in Other families in the block are
“I never told anyone be- guidance about the process. Mahsa’s new foster par- cess wasn’t started for Mahsa regular contact with her helping him look after the
cause I didn’t care. I came The State Department de- ents, Katlyn and Phil Williams, sooner, and the case worker mother in Afghanistan. children, and advocate for
here, that’s the biggest thing clined to answer questions waited months for a refugee couldn’t give me any clear an- Ten-year-old Abdul Basit him, he said.
that happened in my life. I can about the cases described in resettlement agency to pro- swer. If I hadn’t reached out Nahibi is one of the many Af- Many more Afghan parents
go to school. I can go out. this article, citing privacy con- vide details on the process. last week we’d still just be ghan unaccompanied children are in the reverse situation,
That’s all we want. Freedom,” siderations. It didn’t answer They found out last week that waiting.” who have received no news after leaving one or more chil-
said Mahsa, who was 16 when questions about how it priori- the agency hadn’t gathered all The agency responsible for about when, if ever, they will dren behind. They, too, have
evacuated in August 2021. tizes who to evacuate or how the information needed to get Mahsa’s case, the Lutheran see their parents again. He received little or no informa-
Mahsa is one of the more to get on its list for evacua- her family on the State De- Immigration and Refugee Ser- has been taken to the emer- tion about how to reunite
than 1,550 Afghan children tion. partment’s list for evacuation. vice, and its local affiliate, the gency room for panic attacks. their families.

Chip Rules nies’ access to U.S. talent deliv-

ers a direct blow to the heart
of China’s attempt to move up
U.S. citizens, according to the
company’s website and its lat-
est annual report.
being affected include Chinese
flash memory chip designer Gi-
gaDevice Semiconductor Inc.,
be enough to kill it, said Anne
Hoecker, a partner at manage-
ment consulting firm Bain &
Those employees have contin-
ued to perform other tasks at
the company, he said.

Entangle the technology chain, said Dane

Chamorro, a Washington, D.C.-
based head of global risk and
Mr. Yin, whose company is
listed on the Shanghai Stock
Exchange, spent almost 20
an up-and-coming designer of
flash chips used in automobiles
and personal computers. Gi-
Co. in its semiconductor group.
“There’s one thing China has
been very consistent about—
ASML, the Dutch chip equip-
ment maker, confirmed it sent
an internal email to its U.S. em-

Executives intelligence at business con-

sulting firm Control Risks.
“The technology is nothing
years working at Silicon Valley
companies including Intel Corp.
and Applied Materials Inc.,
gaDevice’s deputy chairman,
Shu Qingming, and a director,
Cheng Taiyi, hold U.S. pass-
their need to build up an indig-
enous source of semiconduc-
tors,” she said. “They will
ployees on Wednesday, asking
U.S. staff—both U.S. citizens
and foreign nationals living in
without the people there to where he was chief technology ports, the company’s latest an- continue to put a lot of money the U.S.—to refrain from ser-
Continued from Page One make it work,” he said. officer of its Asian unit before nual report says. in it, and they will continue to vicing, shipping or providing
ring U.S. persons from sup- For many senior executives he left to found AMEC. GigaDevice didn’t respond to progress.” support to any of its customers
porting China’s advanced chip at Chinese companies, the rule The Shanghai-based com- requests for comment. Many companies, including in China until further notice.
development or production will likely force them to decide pany, which makes etching ma- KingSemi Co., which pro- KLA Corp. and Lam Research, The new rules also could af-
without a license. The depart- between their jobs and their chines key to turning silicon duces the most advanced coat- have already suspended the fect employees of Chinese com-
ment defines U.S. persons to U.S. citizenship or permanent wafers into semiconductors, is ing and development equip- work of engineers and other panies that have operations in
include U.S. citizens, perma- resident status, Mr. Chamorro viewed as a rising national ment in China and supplies less-senior staffers in China the U.S.
nent residents, people who live said. The rules require all U.S. champion in the sector, though giants including Taiwan Semi- while they seek clarity on the Yangtze Memory Technolo-
in the U.S. and U.S. companies. persons to apply for a license it still lags behind global lead- conductor Manufacturing Co., rules, or licenses to continue gies Co., China’s leading mem-
Several companies, including to continue working in Chinese ers such as Lam Research Corp. told investors that it is assess- their work, The Wall Street ory chip maker, maintains a
Beijing-based Naura Technol- advanced chip development. and Applied Materials. In its ing the impact of the new di- Journal previously reported. Santa Clara, Calif., office, with
ogy Group Co. and Dutch Among prominent U.S. exec- latest annual report, the com- rectives. An executive director, Naura Technology Group, more than a dozen employees
equipment maker ASML Hold- utives in China is Gerald Yin, pany said it received more than Chen Xinglong, holds a U.S. which has a unit making semi- in the U.S., according to
ing NV, have suspended their founder and chairman of Ad- $50 million in subsidies from green card, the company’s lat- conductor equipment, issued LinkedIn. They include a direc-
U.S. employees from continuing vanced Micro-Fabrication the Chinese government in est annual report says. warnings to its U.S. employees tor of engineering, the head of
work that could now be re- Equipment Inc., or AMEC, one 2021. While the withholding of tal- within mainland China to sus- U.S. NAND design, and the
stricted while they seek clarity of China’s largest chip-making AMEC and Mr. Yin didn’t re- ent—along with all the other pend work with clients that it head of North American sales
on the rules, the companies equipment vendors. He and six spond to requests for com- restrictions—could signifi- believes fall under the new re- —Raffaele Huang
have said. current senior managers and ment. cantly slow the Chinese chip strictions while it awaits more and Rachel Liang
Restricting Chinese compa- core researchers at AMEC are Other companies that face sector’s advancement, it won’t clarity, a spokesman said. contributed to this article.
THE WALL STREET JOURNAL. * * * * * Monday, October 17, 2022 | A5

U.S. NEWS

Silicon Valley Security Aid Sought Goldman years, Goldman has sought to
sharpen its trading arm’s focus
on client service.

BY VIVIAN SALAMA
AND DUSTIN VOLZ
the State Department.
Presidential administrations
stering and drawing on our
country’s unique strengths—
capabilities among countries in
the North Atlantic Treaty Or-
Revamps Following the changes,
Goldman’s organizational chart
will look more like its peers.

The State Department is ex-

panding outreach to U.S. tech-
have long sought to forge
strong ties with Big Tech, urg-
ing the companies to share cy-
one of which is our industrial
and innovation base,” Mr.
Blinken said in a statement to
ganization. The government
must be a better intermediary
between U.S. tech firms and
Businesses A slide presentation from
Goldman’s 2020 investor day
offered a glimpse of what a
nology firms to get them more ber-threat intelligence, secure The Wall Street Journal. foreign governments in need of combined banking-and-trading
involved in some of the world’s agreements on the production Last year, the State Depart- their services, he said. Continued from Page One business would look relative to
top national-security chal- of advanced technologies or ment established a bureau of Since the start of the war in cism, from investors and even peers. At Goldman, the merged
lenges, from the war in Ukraine quietly cooperate on surveil- cyberspace and digital policy, Ukraine, large U.S. tech firms among some of its own execu- group would have delivered a
to growing competition with lance programs. and Mr. Blinken named former like Microsoft Corp. and Alpha- tives, over its ambitions for return on equity of 9.2% in
China, U.S. officials said. At the State Department, cy- technology executive and for- bet Inc.’s Google unit have been consumer banking. 2019, besting Morgan Stanley
Secretary of State Antony bersecurity has in years past mer Marine Corps officer Na- sharing cyber insights with The firm’s trading and in- and Bank of America Corp. but
Blinken is visiting Silicon Val- often been seen as a second- thaniel Fick to lead it. The bu- Kyiv and the public about the vestment-banking acumen has below what JPMorgan Chase &
ley Monday as part of the tier priority ceded to other fed- reau’s budget in the 2022 fiscal activities of suspected Russian been Goldman’s calling card Co. and Citigroup Inc. earned
push to make cybersecurity eral agencies, a perception a year was $41.2 million, includ- hackers. Major Western tech for decades, churning out mas- that year.
among the State Department’s new dedicated cyber office is ing a diplomatic engagement companies have suspended op- sive profits when the markets Bloomberg News earlier re-
leading priorities. He will trying to change, current and budget of $18.2 million. erations or withdrawn from the favored risk takers and bold ported that Goldman had
meet with corporate leaders former officials have said. Mr. Fick, the nation’s first country. Twitter, Inc., Meta deals. But investors often dis- planned to restructure its con-
“to highlight the key role for “We have a profound stake ambassador-at-large for cyber, Platforms Inc.,’s Facebook, and counted those successes, rea- sumer-banking arm and was
technology diplomacy in ad- in shaping our technological fu- said the war in Ukraine under- Alphabet’s YouTube and Google soning that they are harder to considering combining its as-
vancing U.S. economic and na- ture, and American diplomacy scored the need for greater have cracked down on fake sustain when market condi- set- and wealth-management
tional security,” according to has a key role to play in bol- alignment of cyber defensive feeds and hackers. tions turn. And in recent businesses.

U.S. WATCH
PITTSBURGH
Three People Killed,
One Hurt in Shooting
Two women and a man were
killed and a fourth person
wounded in a shooting, authori-
ties said.
Pittsburgh Public Safety offi-
cials said the gunfire occurred
near a busy North Side intersec-
tion at about 10 p.m. Saturday.
Public safety spokesperson
Cara Cruz said one woman died
at the scene. A second woman
and a man were pronounced
dead at Allegheny General Hos-
pital.
Another man who arrived at
the hospital was admitted in
stable condition with a gunshot
wound to a leg.
The Allegheny County medi-
cal examiner’s office Sunday
identified the two women killed
as 33-year-old Jacquelyn Mehalic
of Muncy and 59-year-old Betty
Averytt.
No arrests were immediately
announced.
—Associated Press

NORTH CAROLINA
Two Shot at College
Homecoming Concert
Two people were shot and
others were injured as they fled
gunfire that broke out at a
North Carolina college homecom-
ing concert on Saturday night,
officials said.
Officers called to the campus
of Livingstone College in Salis-
bury around 11 p.m. found two
people shot and others who
were hurt as attendees fled the
gunfire, city officials said. Offi-
cials didn’t release details of
their conditions.
There was a fight during the
concert and one person, who
isn’t a Livingstone student, fired
one or more shots, police and
school officials said in a joint
statement.
—Associated Press

BOSTON
Four People Stabbed,
Expected to Survive
An arrest has been made in
connection with the stabbings of
four men in Boston early Sun-
day.
Officers responded to a re-
port of a stabbing in the area of
Stuart and Tremont streets at
2:10 a.m. where they arrested a
39-year-old Dorchester man. He
is accused of stabbing four men,
who are all expected to survive,
police said.
Two of the victims were
found at the scene. The two

THANK YOU
other men went to area hospi-
tals.
The suspect is expected to
be arraigned on four counts of
assault with intent to murder
CHRISTOPHER CLARK

GOVERNOR KELLY
and four counts of assault and
battery by means of a danger-
ous weapon, police said.
—Associated Press

ARIZONA
Many Still Without
Power After Storm Pratt Industries Opens High-Tech
Roughly 2,000 people across
metro Phoenix were still without
power early Sunday morning, a
day after intense storms
Box Factory in Wichita, Kansas
brought rain, wind and hail.
Officials with SRP and APS,
the two major utilities serving Pratt Executive Chairman Anthony Pratt and Gov. Laura Kelly tour the 1 million sq. ft. factory
Maricopa and Pinal counties,
said between them more than
13,000 customers lost electricity
by 6:30 p.m. Saturday.
The National Weather Service
said winds were as strong as 69
miles an hour. Pratt Industries is one of the largest corrugated box manufacturers in the United States.
At Phoenix Sky Harbor Inter- Our 100% recycled boxes save money and save the environment.
national Airport, all flights had
to be briefly halted Saturday
night. Numerous flights were www.prattindustries.com
also delayed.
—Associated Press
A6 | Monday, October 17, 2022 THE WALL STREET JOURNAL.

WORLD NEWS
Failure to Control the Skies Hurts Russia
Without air superiority, ters to provide covering fire
instead sat exposed to attacks
Moscow can’t stop from Ukrainian aircraft,
Kyiv’s offensive or drones and artillery.
Ukraine’s ability to protect
target precisely its air defenses in the war’s
opening weeks ranks alongside
BY DANIEL MICHAELS the defense of Kyiv, the capital,
in accomplishments that al-
Russia’s struggling invasion lowed its government and mili-
of Ukraine has faced problems tary to retain control over most
from poor coordination to un- of the country despite relentless
motivated soldiers, but over- Russian attacks, say analysts.
shadowing and aggravating all “The Ukrainians are in a far
was a critical blunder in the stronger position than they

YASUYOSHI CHIBA/AGENCE FRANCE-PRESSE/GETTY IMAGES

war’s early days, say Western would be if the Russians had
military officials: failure to achieved air supremacy,” said
win control of Ukraine’s skies. Douglas Barrie, a senior fellow
Without air superiority, for military airspace at the In-
Russia has been unable to stop ternational Institute of Strategic
Ukrainian attacks on its sol- Studies, a think tank in London.
diers with U.S.-supplied M142 Unlike Ukraine’s fight
High Mobility Artillery Rocket against Russian ground forces,
Systems, or Himars, and other which from the start was
weapons. Kyiv’s forces have aided enormously by donated
capitalized on Russia’s limited Western weapons, its air de-
ability to respond by retaking fense has relied largely on So-
hundreds of square miles of viet-era systems that Ukraine
territory from the invading has maintained and improved
army since early last month. over three decades. In many
Russia recently has reacted The debris of a Russian aircraft in Lyman, a city in eastern Ukraine that Kyiv’s troops recently took back from Russian forces. ways, Russia’s failure to dis-
to Ukraine’s battlefield suc- able the systems is more nota-
cesses by unleashing deadly things that cost Russia their large-scale invasion on Feb. grouped and managed to Ukraine firmly under Mos- ble because Moscow uses the
attacks on civilian targets us- advantage in the war,” said 24, military experts on both thwart Russian air attacks. By cow’s control. Russian bomb- same equipment, analysts say.
ing missiles and drones. But Jakub Janovsky, a military ana- sides of the fight assumed early March, Ukraine was ers were launching cruise mis- Mykola Bielieskov, a re-
even those strikes betray lyst with Oryx, an open-source Moscow would target shooting down growing num- siles from behind the search fellow at Ukraine’s Na-
weakness in Moscow’s air intelligence consulting firm Ukraine’s air defenses and bers of Russian planes and he- protection of Moscow’s air-de- tional Institute for Strategic
strategy, Western military an- that has tracked equipment quickly work to eliminate licopters. Ukraine’s air force, fense systems. Russian mili- Studies, a government think
alysts say, because it must rely losses throughout the war. them before pushing further. despite early losses, kept fly- tary helicopters in Ukraine tank, said Ukraine was able to
on remote aircraft rather than Russia’s Defense Ministry But after Russia achieved ing and engaged Moscow’s pi- moved increasingly cautiously. preserve its air defenses and
piloted planes, out of fear they didn’t respond to a request for some initial successes hitting lots in dog fights. As a result of that air force part of its air force by moving
will be shot down. comment on its air war in Ukraine’s antiaircraft systems By spring, Russian war- hesitation, Russian ground planes and defensive systems
“Failure to achieve air su- Ukraine. and disrupting its communica- planes were staying in Russian troops that might have relied from their normal locations
premacy is one of the decisive When Russia launched its tions backbone, Kyiv re- airspace or over parts of on their planes and helicop- and dispersing them.

Musk Says SpaceX to Cover Starlink Costs in Ukraine

BY MATTHEW LUXMOORE funding the Starlink service for played a crucial role in main- planned to keep paying for the the town hall that Russian Russian-appointed officials
Ukraine just a day after he said taining the country’s commu- Starlink service in Ukraine in- proxy officials have occupied blamed Ukraine for the explo-
KYIV, Ukraine—Elon Musk SpaceX couldn’t finance the nications during the war and definitely. His announcement since they declared Donetsk as sion in Donetsk, claiming it
backtracked on his complaints service indefinitely on its own. are deployed at hundreds of was praised by senior Ukrai- the capital of a breakaway had attacked using U.S.-pro-
over the cost of funding Star- “The hell with it,” Mr. Musk Ukrainian military outposts nian government officials. pro-Moscow state in 2014. vided Himars multiple-launch
link internet terminals in tweeted on Saturday. “Even where they allow commanders “Thank you for joining the Russia said this month that rocket systems. Kyiv didn’t
Ukraine and said his company though Starlink is still losing to call in artillery strikes or right side. Ukraine appreciates it had annexed Donetsk and comment on the allegations.
would continue to pay for money & other companies are coordinate operations in areas that,” Mykhailo Podolyak, an three other Ukrainian regions Video posted to social me-
them, as explosions rocked the getting billions of taxpayer $, where cell service is jammed aide to Ukrainian President that it has at least partly occu- dia by Russian state news out-
Russian-held city of Donetsk in we’ll just keep funding Ukraine by Russia. Volodymyr Zelensky, wrote in pied, but Ukraine has vowed to lets showed the gutted multi-
eastern Ukraine on Sunday. govt for free.” Mr. Musk didn’t provide response. regain control over the re- story building with its
Mr. Musk, the billionaire The 20,000 Starlink termi- further details in his tweet. Meanwhile, an explosion gions and has been pushing an windows blown out. Russian-
chief executive of SpaceX and nals estimated to be in opera- The Financial Times reported rocked the center of Donetsk advance into Russian-held ter- installed authorities there said
Tesla, pledged to continue tion across Ukraine have that he told the newspaper he in eastern Ukraine, damaging ritory in the east and south. two people had been injured.

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THE WALL STREET JOURNAL. Monday, October 17, 2022 | A7

WORLD NEWS

Europe’s Energy Resolve Faces Test Ukraine

Gets Help could also spark a contest be-
Europe is as ready as it can
be for a winter without Rus-
sian natural gas, but there is
tween North America and Eu-
rope for LNG supplies. Still
weather conditions, mean-
In Warm
no margin for error.

By Joe Wallace
while, would slow down wind
turbines, while a particularly
cloudy winter would reduce
Clothing
in London and solar-power generation. BY NANCY A. YOUSSEF

FRANK EINAR VATNE/AGENCE FRANCE-PRESSE/GETTY IMAGES

Margherita Stancati Weather forecasts for this
in Rome winter will firm up at the start WASHINGTON—In addition
of November. Early indications to artillery pieces, tactical ve-
Storage facilities of gas for point to the potential for cold hicles, light arms and other
heating and power generation and still weather late this weapons, the U.S. and its allies
are almost full, consumption is year, followed by milder con- have begun providing the
down and liquefied natural gas ditions in early 2023, accord- Ukrainians with warm materiel
tankers are steaming in. Eu- ing to the EU-funded Coperni- for their arsenal: parkas,
rope is in a stronger position cus Climate Change Service. socks, pants and other cold-
than feared in recent months, Another risk is that gas weather gear.
after Moscow slashed gas de- flows could fall short because With winter approaching on
liveries in retaliation for West- of technical malfunctions or the Ukrainian steppe, where
ern sanctions over the inva- politically motivated attacks. overnight lows can drop below
sion of Ukraine. The suspected sabotage of the freezing next month, U.S. offi-
However, much could go Nord Stream gas pipelines un- cials have said the provision of
wrong. One long cold spell or der the Baltic Sea and drones warm clothing is one way al-
a broken pipeline could upset Europe has filled storage sites to over 90% of capacity by buying as much natural gas as possible. spotted near Norwegian gas lies who are unable—or un-
the region’s preparations, platforms have highlighted the willing—to turn over lethal
threatening emergency ration- Natural-gas consumption by Europe's supplies of natural gas vulnerability of energy infra- weapons can contribute to the
ing, blackouts and a deeper households and companies structure. Ukrainian war effort. And it is
economic recession. Officials in Germany* Russia Norway Domestic Pipeline LNG U.S. Officials and analysts say expected to give the Ukraini-
and analysts say the willing- pipeline pipeline output other† other LNG Moscow might cut off the re- ans a battlefield advantage
ness of consumers to cut back 2.5 terawatt-hours a day 500 million cubic meters a day maining gas that arrives via over Russian forces, who have
on gas use will be key for get- pipelines through Ukraine and struggled with logistics
ting through the winter. A Average Turkey. Central and Eastern throughout the war.
mild winter would help, too. 2.0 400 European countries that still “Winter equipment can
2021
“This will be a winter domi- buy Russian pipeline gas, make a considerable difference
nated by fear and uncertainty,” 2022 above all Moldova, which gets for service conditions and for
1.5 300
Roberto Cingolani, Italy’s min- all its gas through Ukraine, are the troops. It impacts morale,
ister for energy transition, most vulnerable. reduces losses due to illness
1.0 200
said. “Barring catastrophes, Other risks include the po- and can substantially impact
such as extremely cold tential for long-lasting outages troops’ ability to sustain com-
weather, if we keep consump- 0.5 100 at French nuclear plants, bat operations,” said Michael
tion in check, we’ll get through which would increase the need Kofman, who heads the Russia
the winter fine. We just have 0 0 for gas in power generation. Studies Program at the Vir-
to hope nothing goes wrong.” Keeping gas consumption ginia-based think tank CNA.
1 2 3 4 5 6 7 8 9 10 11 12 2021 ’22
low is a key part of Europe’s The U.S. so far has provided
Europe is on the front line
of the energy conflict running *Excludes industry. Average is for 2018-21 †Includes Algeria, Azerbaijan and Libya plan for the winter. The EU is several thousand parkas,
in tandem with the war in Source: Bundesnetzagentur (Germany); S&P Global Commodity Insights (Europe's supplies) * targeting a 15% reduction in pants, hats and gloves, and has
Ukraine. Since launching its gas demand. committed to many more, said
full-scale invasion of Ukraine nent’s gas supply, according to it is needed in another. maxed out,” said Michael One unknown is how con- Army Col. Dave Butler, a
this year, Russia has throttled S&P Global Commodity In- Europeans are also cutting Bradshaw, professor of global sumers will respond to a com- spokesman for the U.S. Joint
gas supplies in what European sights, down from almost 30% their energy use—a necessary energy at Warwick Business bination of rocketing prices, Chiefs of Staff. The Pentagon
officials say is an economic at- before the war. Europe also step to prevent shortages later School. “We are up against the entreaties to burn less gas and said it couldn’t provide a
tack designed to weaken their imports a small amount of in the winter, officials say. hard reality that there are government-relief packages breakdown of how much win-
financial and military support Russian LNG. Where they can, companies in physical limitations to the designed to reduce bills. One ter clothing it had provided.
for Kyiv. Europe, in turn, is Floating LNG terminals are industries such as glass and ability to replace Russian gas ominous sign: When cold Canada’s Defense Minister
targeting Russian energy reve- being moored off European papermaking have turned to in the short term. That means weather struck Germany in Anita Anand said the country
nues with a looming embargo coastlines, which will enable coal and oil, or changed shift that doubling down on the de- September, demand leapt. would send up to 500,000
on oil imports. countries including Germany patterns to avoid using power mand-reduction side of the Officials in some countries pieces of winter clothing to
By buying as much gas as to unload and store more of when demand is at its peak. equation is vital.” say supply isn’t the main Ukraine’s military.
possible from Norway and the superchilled fuel. European Some factories have closed. If freezing weather jacks up problem. “The real problem Describing its donations to
LNG from the U.S., Europe has Union members have expanded Power producers are burning demand, however, stockpiles isn’t shortage but pricing,” Ukraine as humanitarian aid,
filled storage sites to more cross-border connections, for more coal. could drain and prices could said Mr. Cingolani, the Italian Bulgaria will provide 5,000
than 90% of capacity. Russian instance between Poland and “Europe is probably as well shoot to levels that hammer minister. “Citizens may be un- each of lined half-coats, leg-
gas arriving via pipeline ac- Slovakia, so that gas doesn’t prepared as it could be. The companies and government fi- able to pay their bills and gings, long-sleeved shirts, hats
counts for 6% of the conti- get stuck in one country when infrastructure is pretty much nances. Low temperatures businesses risk closing down.” and pairs of shoes.

Russian Troops in Belarus

Spark Fears of New Front
BY ANN M. SIMMONS

MOSCOW—An influx of

Meet
Russian troops and a surge in
military activity in Belarus is
stirring unease that its auto-
cratic leader, President Alex-
ander Lukashenko, could take
a more direct role in Moscow’s

Breanna,
faltering war in Ukraine.
VALERY SHARIFULIN/ZUMA PRESS

Belarus’s Defense Ministry

announced Sunday that the
aviation component of a fresh
Russian troop deployment had
begun to arrive in the country,
the day after ground forces Software Support Specialist at BoomTown.
started moving in. The new
contingents came less than a One of over 70,000 Google Career
week after Mr. Lukashenko Belarusian President Lukashenko has sounded more combative. Certificate graduates.
and Russian President Vladi-
mir Putin had agreed to posi- larus’s economy is fragile and ment. Mr. Lukashenko told
tion a joint group of forces his administration’s footing is Russian reporters Friday at a
near the border with Ukraine tenuous at best, they say. summit in Kazakhstan that Be-
to counter what the Belarusian “Lukashenko would be act- larus’s 70,000-strong army
leader described as a growing ing against the overwhelming would constitute the base of
threat to his nation from Kyiv majority of the public,” where the joint force and that there
and the West. opinion polls show little appe- wouldn’t be any need “to ask
Mr. Lukashenko previously tite for joining the conflict, for 10,000 to 15,000 people
allowed Moscow to use Be- said Artyom Shraibman, a Be- from Russia,” he said. Some
larus as a staging ground for larusian political analyst, now Western analysts have ques-
the Ukraine invasion. Tens of based in Warsaw. “It is very tioned the number of Belaru-
thousands of Russian troops politically risky for him.” sian troops that Mr. Lukash-
were stationed there and Rus- Hundreds of volunteers enko says are available.
sian warplanes took off from from Belarus have joined a Valeriy Revenko, head of
Belarusian bases. dedicated Belarusian battalion the Belarusian Defense Minis-
Mr. Lukashenko’s public to fight with Ukrainian forces try’s international military co-
comments have become more since the start of the war, con- operation department, wrote
combative in recent days, too. vinced that the path to politi- on Twitter on Sunday that a
He has suggested that cal freedom in Belarus comes little under 9,000 Russian
Ukraine is trying to draw Be- through first defeating the troops would be part of the
larus into the conflict, accus- Russian army in Ukraine. regional grouping of forces
ing Kyiv of plotting an attack In an interview with NBC and that their relocation
like the explosions that hit the on Friday, Mr. Lukashenko said would take several days.
Kerch Strait Bridge linking Belarus’s role in Moscow’s mil- If Belarus were to be pulled Google Career Certificates The certificates have
Russia to the Crimean Penin- itary campaign was limited directly into the conflict, it help job seekers like Breanna
sula, which Russia blamed on but his country supports Rus- likely wouldn’t fundamentally launch new careers in given me the opportunity
Ukraine. The Belarusian leader sia “in every possible way.” change the course of the war, fast-growing fields like IT to move into the field of
has also blamed the West for Belarusian defense officials, according to assessments by support, data analytics, and
pushing Kyiv toward a war who released images of Rus- military analysts. Belarus’s my dreams and get a job
more. Certificate graduates can
with Belarus, while Ukrainian sian troops being greeted by army is poorly equipped and that will actually fund my
connect with over 150 national
President Volodymyr Zelensky women in traditional dress and isn’t combat-ready having
has said Mr. Lukashenko is with the customary welcome never fought a battle in its 31 and local employers that basic life needs.
trying to create a pretext to of bread and salt, reiterated years of independence from the are hiring.
launch an attack on his coun- Saturday that the mission of old Soviet Union, they said. But
try. Mr. Zelensky recently the joint forces was solely de- having to wage war on another —Breanna Bradley
Learn more at Charleston, South Carolina
urged the Group of Seven fensive and with the purpose front could stretch Ukraine’s
wealthy nations to provide ad- of protecting Belarus’s border. manpower and resources. grow.google/certificates
ditional air-defense systems. They also referred to Belarus’s NATO hasn’t directly com-
But analysts say that taking economic union with Russia, mented on the prospects of Be-
a more direct part in the war known as the Union State. larus directly entering the war,
would be fraught with jeop- Russia’s Ministry of Defense but the alliance’s secretary-
ardy for Mr. Lukashenko, de- didn’t respond to a request to general, Jens Stoltenberg, has
spite his bellicose remarks, confirm the deployment of said that the allies agree that
and that he will likely resist Russian troops, their numbers Minsk must “stop acting as an
being drawn in further. Be- and the nature of their assign- accomplice to Putin’s invasion.”
A8 | Monday, October 17, 2022 THE WALL STREET JOURNAL.

WORLD NEWS

Xi Tightens
His Grip
With Purges
Campaign against be so fearful that they’d orga-
nize resistance against him.
corruption by China’s Mr. Xi’s tactics echo how
leader has targeted Mao Zedong and Deng Xiao-
ping undermined even party
even some old friends colleagues who didn’t appear
to pose serious threats or have
BY CHUN HAN WONG ambitions of challenging the
leader, historians say. The
Xi Jinping became China’s campaign has helped Mr. Xi al-
most formidable leader in de- ter the architecture of power
cades through anticorruption in China—and made him
purges that sidelined oppo- seemingly untouchable for
nents and suppressed any po- now as he looks set to claim a
tential challenge, real or per- third term as party chief in

ASSOCIATED PRESS
ceived, to his power. the coming week, the party in-
Some political watchers siders say.
thought the purges would ease The Communist Party’s pro-
once he settled into his role. paganda department and the
Ten years in, his methods have Chinese government’s public-
only grown more sophisticated ity arm, the State Council In- A child stands in front of a large screen showing photos of Xi Jinping near a car park in western China’s Xinjiang region.
and pervasive. formation Office, didn’t re-
Targets include a retired spond to requests for would find it difficult to speak rity in 2018. least three former secretaries, down that Mr. Wang ran.
member of the Communist comment. against the probe, they said. Mr. Sun allegedly received in recent years, according to When a Chinese court con-
Party’s top leadership and a Mao undercut perceived op- data collected by the WeChat people familiar with the mat- victed Mr. Dong for corruption
sitting Politburo member. ponents similarly in an ap- social-media app from an ex- ter. Efforts to reach Mr. Chen and handed him a suspended
Party enforcers punished some Existential fight proach known as “digging at ecutive at the app’s developer, weren’t successful. death sentence in January,
627,000 people for graft and A decade ago, Mr. Xi the foot of a wall,” according to Tencent Holdings Ltd., The In the case of Vice Presi- state media reports on the
other offenses last year, warned that the party faced Joseph Torigian, an assistant Wall Street Journal reported dent Wang, people familiar verdict cited Mr. Dong’s past
roughly four times the number an existential fight against professor at American Univer- last year. Mr. Sun was trying with him say he harbors no positions working under Mr.
in 2012, when Mr. Xi took corruption and ordered all-out sity who wrote a book about to use WeChat data to monitor ambitions to challenge Mr. Xi. Wang, in what party insiders
charge, party data show. efforts to combat the scourge. power struggles in the Soviet conversations among relatives Five years senior to the 69- saw as a pointed gesture to-
Mr. Xi now often uses sub- The highly popular crackdown Union and Communist China. of senior Chinese officials, and year-old Mr. Xi, Mr. Wang is ward the vice president.
tler methods as well, such as surprised many within the Like Mao and Deng, Mr. Xi glean information that could considered too old to be a via- In 2021, authorities de-
taking down officials’ associ- party with its intensity and might be thinking that “these benefit himself and Mr. Meng, ble successor. tained another businessman
ates with disciplinary probes persistence. While declaring people’s usefulness has according to people familiar Mr. Wang still commands close to Mr. Wang—Chen Feng,
and replacing them with his success in his antigraft efforts, passed, or are not intuiting with the investigation. considerable clout independent chairman and co-founder of
own protégés, party insiders Mr. Xi has continued to rein- what he wants correctly any- The party expelled Mr. Sun of Mr. Xi, party insiders and HNA Group, a conglomerate
say. He also reassigns oppo- vent the campaign, directing more, or he just wants more in September 2021 and accused political observers say, and based in the island province of
nents to less important roles, party inspectors to police po- pliant people in certain posi- him of political and financial therefore poses a latent threat. Hainan, where Mr. Wang once
or switches their portfolios to litical loyalty and enforce Bei- tions,” Mr. Torigian said. wrongdoing. State media iden- The two have known each served as party chief. Mr.
separate them from their jing’s policies. Party insiders say Mr. Xi tified key members of his al- other since at least the Chen’s whereabouts couldn’t
power bases. Mr. Xi’s unrelenting purges appears to have used some of leged “political clique,” includ- 1966-1976 Cultural Revolution, be determined and he couldn’t
Few are beyond Mr. Xi’s could ultimately consume the his subtler approaches against ing a former justice minister, when they were among mil- be reached for comment.
reach. That includes one of his party. They have antagonized Meng Jianzhu, a former Polit- lions of urban youth sent to
oldest friends, Wang Qishan, members of the political elite buro member and security work in the countryside at
who became China’s vice pres- and discouraged lower-level chief who retired in 2017. Mao’s behest. Nephew-in-law
ident in 2018, a ceremonial si- officials from making deci- Mr. Meng was a well-re-
Mr. Xi’s tactics echo Widely respected for his re- During Lunar New Year fes-
necure widely seen as a re- sions for fear of running afoul garded official who oversaw the methods of Mao cord as an economic-policy tivities this year, party inspec-
ward conferred by Mr. Xi. of Beijing. Mr. Xi himself has the abolishment of the notori- wonk, banker and politician, tors detained Mr. Wang’s
complained that bureaucrats ous program that China called
Zedong and Deng Mr. Wang earned the nick- nephew-in-law, Yao Qing, for
are failing to implement his “re-education through labor,” Xiaoping. name of “fire brigade chief” investigations related to Mr.
The former czar directives as they focus on which herded criminals and for troubleshooting political Yao’s connections with HNA,
Mr. Wang himself had protecting their careers. dissidents into work camps. crises. He stepped in as Bei- according to people familiar
served as China’s anticorrup- The purges also risk making Mr. Meng left office with his jing mayor in 2003 as the cap- with the situation. HNA came
tion czar for five years, when China’s political system less re- protégés holding key law-en- an erstwhile provincial security ital roiled from the outbreak to prominence with a string of
he ran the withering crack- silient by leaving senior leaders forcement posts, leaving him czar and three ex-regional po- of severe acute respiratory big-ticket acquisitions from
downs that helped Mr. Xi con- less willing to challenge Mr. Xi with considerable influence lice chiefs—all of whom re- syndrome, or SARS. As anti- 2015 to 2017, including stakes
solidate control in his earliest and debate policies. over the security apparatus. ceived prison sentences rang- corruption czar, he oversaw in Deutsche Bank AG and hotel
years in power. Over the past His technique has been Party investigators have ing from 14 years to de facto thousands of investigations chain Hilton Worldwide Hold-
two years, antigraft enforcers honed over his years in power, since taken down some of his life terms for corruption. and worked closely with Mr. Xi ings Inc., before falling into fi-
have increasingly gone after according to people familiar protégés, helping clear the In September, Mr. Sun re- in managing purges. nancial trouble that culmi-
people inside Mr. Wang’s po- with the practice. Mr. Xi asks way for Mr. Xi to put loyalists ceived a suspended death sen- Mr. Wang stepped down nated in court-led bankruptcy
litical and personal circles. trusted inspectors to quietly into key security roles. Efforts tence—effectively a life term from the party leadership in proceedings last year.
The party purged two of his prepare hundreds of pages of to reach Mr. Meng weren’t in prison—on charges of brib- 2017. He later became vice People who know Mr. Yao
associates in 2020—an out- evidence against a senior offi- successful. ery, stock-market manipula- president, joined the party’s believe the reasons behind his
spoken property mogul and a cial that he wishes to neutral- In 2018, Chinese authorities tion and illegal possession of top foreign-policy commission detention go beyond his HNA
senior party functionary. Offi- ize, they said. detained Meng Hongwei, a firearms. He couldn’t be and continued attending high- connections and serve as a
cials probing a bankrupt Chi- Mr. Xi would pinpoint the vice minister of public security reached for comment. level meetings. warning to Mr. Wang.
nese conglomerate took its official’s weaknesses and build who had worked closely with Similar tactics were applied Signs of Mr. Wang’s ebbing Mr. Yao, who is also the
chairman, a friend of Mr. a case that can tar the offi- the elder Mr. Meng (no rela- to Chen Yuan, the eldest son clout emerged in 2020, when grandson of former Vice Pre-
Wang, into custody last year, cial’s reputation within the tion) and served as president of Chinese revolutionary elder retired property tycoon Ren mier Yao Yilin, was released
then detained Mr. Wang’s party elite, particularly if the of Interpol at the time. The Chen Yun. The younger Chen— Zhiqiang, a friend of Mr. several months later, the peo-
nephew-in-law this spring, ac- target has a reputation for be- younger Mr. Meng was sen- who led state-owned China Wang, was purged after writ- ple said. It couldn’t be deter-
cording to people familiar ing honest and competent, the tenced to prison for 13½ years Development Bank for 15 ing an online essay criticizing mined if authorities accused
with the matter. people said. on corruption charges in Janu- years, as governor and then Mr. Xi’s handling of Covid-19. Mr. Yao of wrongdoing. He
Mr. Wang hasn’t been ac- Sometimes Mr. Xi authorizes ary 2020. He couldn’t be chairman, before retiring in Authorities detained Mr. Ren, couldn’t be reached.
cused of wrongdoing and has investigations against a close reached. His wife has decried 2013—is widely seen as a lead- expelled him from the party, In April, party inspectors
continued appearing publicly associate of a high-ranking offi- the case as trumped up and ing figure among “prince- and sentenced him to 18 years opened a probe against Tian
at state events. He couldn’t be cial under the pretext of dem- politically motivated. lings,” as descendants of cur- in prison for corruption and Huiyu, a veteran banker who
reached for comment. onstrating the associate’s hon- In April 2020, the party an- rent or former top officials are other charges. worked as an aide to Mr. Wang
By scrutinizing people close esty, thereby making it hard for nounced a probe against Sun known. He was once consid- Less than two weeks after while the latter was the top
to his longtime friend, party the senior official to intervene, Lijun, a law-enforcement vet- ered more influential within Mr. Ren’s sentencing, the official at state-run China Con-
insiders say, Mr. Xi is sending some of the people said. eran and one of the elder Mr. the party elite than Mr. Xi, party announced a probe struction Bank in the 1990s.
a message that he’ll dismantle If the investigation turns up Meng’s top protégés. During who is also a princeling. against Dong Hong, a close The party expelled Mr. Tian in
all potential power centers evidence of corruption, Mr. Xi his policing career, Mr. Sun Party inspectors have subordinate of Mr. Wang for October, accusing him of cor-
and intimidate opponents. But would raise the case in leader- held roles overseeing political opened investigations against much of the past three de- ruption, extravagance and mis-
because the challenge is indi- ship meetings and the high- security before his promotion more than a dozen of Mr. cades, who took a senior role using his powers for self-bene-
rect, those targeted might not ranking official in question to vice minister of public secu- Chen’s protégés, including at in the anticorruption crack- fit. He couldn’t be reached.

Speech nomic planning and develop-

ment.
Since taking power in late
ernized military—as a possible
timeline for his stint as para-
mount leader.
were present at the Great Hall
of the People, including retired
party elders. Mr. Xi’s immediate

Lays Out 2012, Mr. Xi has assumed a de-

gree of autocratic authority un-
seen since the Mao Zedong era
The party has pitched its
twice-a-decade congress as a
triumphant moment for China,
predecessor, Hu Jintao, occu-
pied a seat on the dais next to
the incumbent’s. Notable ab-

Ambitions and upended recent retirement

practices to allow himself to
stay in office indefinitely.
even as it confronts wide-rang-
ing challenges. Mr. Xi’s zero-
tolerance approach to Covid-19
sentees included Jiang Zemin,
the 96-year-old former leader
who served as general secre-
By taking a third term as has throttled the domestic tary for 13 years until 2002, as
Continued from Page One party chief, the 69-year-old Mr. economy with repeated lock- well as former Premier Zhu
KEVIN FRAYER/GETTY IMAGES

making the military combat- Xi would depart from the dec- downs and disruptions, exacer- Rongji, who turns 94 this
ready. adelong leadership cycle that bated by a property-market month.
“The work report was unam- his predecessor set and dis- slump. The congress, which ends
biguously about continuity,” Jo- mantle succession norms de- Tensions with the U.S. and Saturday, will vote on the pro-
seph Torigian, a professor in signed to prevent a return to a other Western powers have in- posed changes to the party
Chinese politics and foreign Mao-style dictatorship. Political tensified as they challenge Bei- charter and elect a new Central
policy at American University, analysts expect Mr. Xi to pro- jing’s push for technological su- Committee. The new Central
said on Twitter. “Although his- mote protégés and allies into President Xi Jinping addressing the party congress in Beijing. premacy, territorial claims over Committee will convene the
toric, this Congress will almost senior party roles and thereby Taiwan and continued support day after to choose the next Po-
certainly not signify fundamen- cement his political supremacy. for a New Era,” to simply “Xi der his watch, citing the party’s for Moscow following Russia’s litburo and its elite Standing
tal new policy directions.” The party has in recent Jinping Thought.” This would centennial last year, its stew- invasion of Ukraine. Mr. Xi Committee, the party’s top de-
In laying out his economic years increasingly described directly mirror “Mao Zedong ardship over a “new era” in didn’t mention the war in cision-making body.
goals, Mr. Xi renewed his prom- Mr. Xi as renmin lingxiu, or Thought,” which the party ex- Chinese socialism, and his cam- Ukraine during his speech, In his Sunday remarks, Mr.
ise of a new era of “common “people’s leader,” a designation alts as a guiding ideology sec- paign to eradicate rural pov- which wasn’t expected to go Xi didn’t say whether he plans
prosperity,” in which the party that echoes Mao’s title of weida ond only to Marxism-Leninism. erty. He also reiterated long- into detail on foreign affairs. to stay in power to fulfill the
exercises greater control over lingxiu, or “great leader.” Party Mr. Xi’s speech, lasting term goals that he first laid out Despite tightened security vision he outlined. Mr. Xi would
private capital and distributes insiders said the congress could about 104 minutes, was about five years ago: ensuring that and censorship, frustrations turn 74 by the end of his third
China’s wealth more evenly. confer more tokens of power half the length of his remarks China achieves a degree of “so- with Mr. Xi’s policies boiled term, two years younger than
Such efforts have unnerved en- on Mr. Xi, such as by formally at the 2017 congress. State cialist modernization” by 2035 over into overt dissent on Mr. Jiang was when he stepped
trepreneurs at home and inves- designating him renmin lingxiu broadcaster China Central Tele- and becomes a “modern social- Thursday, when a protest took down as party chief in 2002.
tors from abroad after sweep- and cementing his claim to be- vision said Mr. Xi’s address on ist power” by the middle of the place on a highway bridge in
ing regulatory crackdowns on ing on par with Mao as China’s Sunday comprised highlights 21st century. Beijing. Dark smoke swirled
Chinese tech giants and private greatest statesmen. from a full report that congress Some analysts have cited the over protest banners condemn- Watch a Video
businesses in recent years. Another possibility would delegates will review over the 2035 target—when Mr. Xi be- ing Mr. Xi as a “traitorous dic- Scan this code
Mr. Xi also trumpeted what involve shortening the label of coming week. lieves China should have be- tator”—a rare display of defi- for a video on
he called “Chinese-style mod- Mr. Xi’s political philosophy, “Xi In the Sunday speech, Mr. Xi come a more equal and pros- ance that was quickly snuffed Xi’s speech to
ernization,” doubling down on Jinping Thought on Socialism declared that the party had perous society with an out by local authorities. the Communist
his program of party-led eco- with Chinese Characteristics scored “historic victories” un- innovative economy and a mod- More than 2,300 delegates Party congress.
THE WALL STREET JOURNAL. Monday, October 17, 2022 | A9

EVER WONDER
WHEN HEALTH
WILL MAKE
THE WORLD
BETTER?
A10 | Monday, October 17, 2022 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. Monday, October 17, 2022 | A11

If the last few years have taught us anything, it’s that health is everything.
And now more than ever, health needs reinventing.
Health needs the power of wonder.

Wonder shapes business, government, and culture.

Wonder creates breakthroughs and looks at problems in new ways.
( It dares to be different.)

Wonder asks questions others are afraid to ask.

So why do we keep asking?
Because the world can be made better when we all wonder.

For instance, ever wonder why people don’t get the care they need?
Ever wonder why their care isn’t the best it can be?

Imagine if gaps in care could be eliminated.

If you could drive out waste and reduce spending
so that companies everywhere could save billions.

WONDER NO MORE.
SM

( )
¹ Sept. 2019. The American Institute of Stress. 42 Worrying Workplace Stress Statistics. © Evernorth 2022. All rights reserved. All products and services are provided by or through operating subsidiaries or affiliates of Evernorth.
Imagine if you could prevent back or hip surgery.
If problems could be treated early on, before they cause losses in productivity.

Imagine if the compassion and care of nurses could lower

the risk of infection and readmission from the comfort of your home.
If home treatments could be as effective as those in a hospital.
Or if data and predictive models could pinpoint the right person
to receive treatment for better outcomes.

Care can now be truly personal.

People can now have greater access to mental health care and counseling.
Good news for the 83% of US workers who struggle with work-related stress.(¹)
( It’s a wonder they have come this far without it.)

Ever wonder if there’s a health services company that could do all that for you?

Wonder no more.

See the power of wonder at Evernorth.com.

A12 | Monday, October 17, 2022 * **** THE WALL STREET JOURNAL.

FROM PAGE ONE

Japan Is to shake things up in low-tech

ways. They make soy-sauce
spray bottles to help people
no-salt version of his shop’s
packaged curry drew an acid
customer comment: “I ended

Trying to use it sparingly. Low-sodium

salt has particles of potassium
or other minerals to mimic a
up pouring sauce and ketchup
over it.”
Shifting focus from low-salt

Shake Salt salty taste.

One recipe for pickled Japa-
nese plums, known as ume-
foods to electronic taste-bud
fooling implements began with
a study at the National Univer-
boshi, has gotten a makeover sity of Singapore a few years
Continued from Page One by century-old food maker Ki- ago. Nimesha Narasinghe, who
gant. Diners have to tie a pow- shu Takada Kaen. The red led the study and is now at
ered control unit around their pickled plum typically is the University of Maine, said
wrist and string a cable to the served atop a flat bed of rice researchers learned how to in-
chopsticks. Researchers say to resemble the rising-sun flag crease the perception of salty
the next step is to shrink the of Japan. The company now and sour using a pair of chop-
electronics small enough to in- produces a plum pickled with sticks and a bowl with elec-
corporate into chopsticks. vinegar instead of salt and fla- trodes.

MIHO INADA/THE WALL STREET JOURNAL

The proof of the pudding— vored with honey. The trouble was that the ef-
or saltiness—is in the eating. A Fans say the sweet-and-sour fect lasted only a few seconds,
pinch of current from the con- taste is a good match for rice. meaning it worked best if a
traption boosts the perceived “Strictly speaking, it can no person gulped their soup in re-
saltiness by as much as 50%, longer be called umeboshi,” cord time.
the company said, a claim con- said company head Satoshi Kirin’s high-tech chopsticks
firmed in a recent miso soup Takada. Japan’s food-labeling have a similar problem. The
sampling. rules say the name applies effect doesn’t last long once
“We want the general popu- only to plums pickled in salt. the chopsticks are removed
lation to use this widely before Satoru Okamoto, 46, finds from the food. Still, operators
their hypertension gets seri- Ai Sato, a Kirin researcher, is working on high-tech chopsticks that enhance the saltiness of food. salt-reduced dishes generally of homes for the elderly, a
ous,” said Ai Sato, who is flavorless, an honest confes- group more likely confined to
working on the project. dium consumption in the U.S. lot longer than Americans. healthy diet of fish, tofu, vege- sion from the co-founder of an low-sodium diets for health
Japanese consume an esti- is about 3.4 grams. And, in a Japan has the highest life ex- tables and rice. The nation’s online shop that specializes in reasons, have been calling.
mated four or so grams of so- proportion mirroring Japan’s, pectancy among major nations: lofty rates of hypertension owe such foods. He has been on di- Salt-starved seniors will have
dium a day on average, twice 47% of American grown-ups 87.6 years for women and 81.5 more to how the food is pre- alysis for nearly two decades to wait at least until next year,
as much as what the World have high blood pressure, ac- years for men, about eight pared. Mackerel simmer in soy because of a kidney disorder the company said.
Health Organization recom- cording to the Centers for Dis- years longer than the U.S. sauce. Tofu cubes bob in salty that imposed dietary restric- Americans may be next in
mends. ease Control and Prevention. measure. miso soup. Vegetables pickle in tions. line. Kirin hopes to adapt its
Americans aren’t doing Despite similar salting hab- One likely reason for the salt. Some foods are easier to technology for forks and
much better. Average daily so- its, Japanese generally live a difference is Japan’s relatively Companies also are trying adapt than others, he said. A spoons.

Flagship yield. One user who said she

was homebound after a kidney
transplant said it was her

Of Meta principal source of recreation.

Beginners, however, can run
into trouble. Carlos Silva, a 41-

Falls Short year-old IT project manager in

Maryland, bought a Quest 2
and joined Horizon early last
year hoping to find more social
Continued from Page One interaction during the pan-
mercial earlier this year, are demic. On the first day, when
mostly barren of users. he went to the main meeting
According to internal statis- space, no one was there.
tics, only 9% of worlds built by “I was like, you know, this
creators are ever visited by at is the whole reason why I
least 50 people. Most are bought this thing,” he said.
never visited at all. “So I’m going to figure this
“An empty world is a sad out, how to find where to go
world,” said one document and how to meet people.”
summarizing the company’s These days, he runs tours in
efforts to herd users toward Horizon, helping new players
venues where they would en- find their way around. He said
counter others. interest in the tours peaked
A Meta spokesman said the around last Christmas. Back
MICHAEL NAGLE/BLOOMBERG NEWS (2)

company’s metaverse efforts then, he said, he was seeing

were always intended to be a up to 400 unique visitors per
multiyear project, and that it tour, but that number has
is making improvements, in- dwindled to 150 or less in re-
cluding many designed to keep cent months. The metaverse,
users safe. He said it is easy to he said, is about “the future in
be a cynic about the meta- like 10 years, not the future
verse, but that the company next year.”
continues to believe it is the Meta wants users to create
future of computing. their own worlds using Hori-
Horizon is accessible An avatar of Meta CEO Mark Zuckerberg spoke at an event promoting the company’s metaverse offerings, above. On Tuesday, Mr. zon’s tools, which allow them
through Meta’s Quest virtual- Zuckerberg unveiled the Quest Pro, a virtual-reality headset designed for professionals to use in the workplace. to take 3-D objects like cubes
reality headsets, which offer a and spheres and shape them
range of games and activities. erage consumers, but Mr. into things like trees and
Quest retention rates, meaning Zuckerberg said it would set a chairs. But less than 1% of us-
continued use by owners, have new standard for metaverse ers are creating their own
dropped in each of the past technology. He also promised worlds, the documents show.
three years, the documents that avatars would soon get
show. More than half of Quest legs in Horizon.
headsets—the entry model Meta has said it plans to ‘Pain points’
costs about $400—aren’t in expand the experience to more Meta’s researchers found
use six months after they are people with a web version of that, though many of Hori-
purchased, according to peo- Horizon for mobile devices zon’s early creators became
ple familiar with the data. and computers. It had said it unengaged, they could be won
In a survey of Horizon us- planned to launch that version back. “Many say they would
ers, Meta researchers said us- this year, but when asked on return if pain points are
ers reported that they couldn’t Tuesday if that was still the fixed,” read one memo about
find metaverse worlds they case, a spokesman said Meta creation attrition.
liked and couldn’t find other didn’t have any launch dates Many were frustrated by
people to hang out with. Other to disclose. another issue Meta is grap-
complaints included that “peo- pling with: how users can
ple do not look real” and that make money in the metaverse.
the avatars don’t have legs. ‘Freedom of identity’ On other social-media plat-
The researchers noted that Other tech giants, including forms, including TikTok and
the survey included only 514 Microsoft Corp. and Apple Inc., Meta’s Instagram, influencers
people because the available are developing products on the and other creators can make
pool of users to survey is belief that the metaverse is the money through brand en-
“small and precious.” next digital frontier. dorsements, among other
The number of Horizon us- Rolf Illenberger, chief exec- the next billion-user plat- Verge, Meta’s Metaverse Vice and tried to conduct an inter- things. There isn’t yet any-
ers online at the same time, utive of virtual-reality soft- form?”, Dare Obasanjo, lead President Vishal Shah wrote view with a small group, one thing similar in the metaverse.
known as concurrency, trails ware company VRdirect, said product manager for Horizon that the core thesis for the user replied: “You can report “Some creators have a de-
far behind both the socially fo- in an interview that Horizon and the metaverse platform, metaverse has proven to be on me, baby.” The user then sire to work full time in the
cused upstart VR Chat and has issues to address, but wrote: “You will have freedom strong. But stability issues and asked her to expose herself. metaverse,” said the Meta
Second Life, the pioneering cy- asked critics to have patience of identity and expression and complaints from creators, he One user who was flirting memo. “If there were full-time
berworld that was launched in and recognize that the indus- can hang out, work, play, said, are “making it too hard with a woman in the crowd roles with the right compensa-
2003, said people familiar try is still developing. “We’re learn, shop, create and more for our community to enjoy was interrupted by what ap- tion, some creators would
with the matter. trying to land on the moon, in an endless number of vir- the magic of Horizon.” peared to be his real-life girl- make building the metaverse
and people are complaining tual worlds that could not ex- Part of the problem, he friend yelling obscenities at their full-time day job.”
that the coffee machine’s not ist in real life.” said, is that Meta employees him in the background. While Meta has supported
Persistent bugs working,” he said. While Mr. Obasanjo said aren’t using the product According to the docu- some worlds with bonus pay-
To deal with persistent The metaverse was sup- that the metaverse—which is enough themselves. “The sim- ments, men outnumber women ments to the people responsi-
bugs and user complaints, posed to offer Meta a fresh accessible not just by virtual ple truth is, if we don’t love it, in Horizon by two to one. One ble for them, efforts to promote
Meta last month quietly put start as it faces other business reality headsets but PCs, mo- how can we expect our users safety feature Horizon has in- other forms of commerce are
Horizon on “lockdown,” mean- pressures and negative public- bile phones and augmented- to love it?” he wrote. troduced is an option for users still nascent. The most lucra-
ing it is pausing the launch of ity. The new strategy was an- reality products—has a better Among the persistent com- to create the equivalent of a 4- tive of Horizon’s worlds has cu-
new features until it improves nounced weeks after the leak shot at mass adoption than plaints from early adopters foot personal boundary for mulatively brought in $10,000
the current user experience, of thousands of pages of inter- augmented or virtual reality and testers, according to the their avatars to deter un- in “In-World Payments,” the
the documents show. nal records documenting the products, Meta hasn’t yet wanted physical contact. documents show, and a feature
The company’s metaverse struggles and societal down- pulled together a strategy for The next day, a male Jour- to tip creators has yielded total
challenges coincide with busi-
ness issues on other fronts, in-
sides of the company’s social-
media products, documented
investing in it.
“Currently it’s unclear
Despite setbacks, nal reporter visited a “house
party” in which he was one of
payouts of $470.
Sheharzad Arshad, a 39-
cluding increasing pressure on in a Wall Street Journal series where the metaverse fits in the company still two people in attendance. He year-old graphic designer in
its digital-ad business and
competition from social-media
called The Facebook Files.
The company’s announce-
the investment framework,“ he
wrote. ”We are overdue for a
believes it is the and the other avatar jumped
into a boxing ring and fought
Toronto, has built 18 worlds
since January, some inspired
app TikTok. Meta shares are ment that it was pivoting to reassessment of how we invest future of computing. for a round while wearing by movies he loves. His most
down more than 60% in the focus on the metaverse kicked and allocate resources.” jack-o-lantern sparring head- popular, “Spider-verse,” has
past year. The company has off a corporate rush to stake Meta has canceled or de- gear, then played beer pong. drawn roughly 20,000 visitors
lost more than $700 billion in claims on the new format. layed early metaverse-related The other avatar never spoke since he published it in May.
market value since the peak in Companies hired “chief meta- products, and current and for- documents, are that users and the game ended after He said the Quest 2 head-
September 2021. verse officers.” Hucksters sold mer employees said there is have trouble adjusting to the about 10 minutes. The re- set’s $399.99 sticker price is
At a metaverse-themed metaverse real estate. Luxury disagreement inside the com- technology, and that other us- porter’s avatar later fell into too steep for many of his
event on Tuesday, Mr. Zucker- brands Balenciaga and Prada pany about whether Horizon ers behave badly. the pool and couldn’t figure friends and family.
berg unveiled a new virtual-re- joined with Meta to promote should be focused on games On a recent night, a female out how to get out. There was Nonetheless, he said, he in-
ality headset called the Quest digital clothes, and even liquor or, as is Mr. Zuckerberg’s pref- Journal reporter visited one of no one around to help. tends to purchase the next
Pro, which is aimed at making makers such as Absolut Vodka erence, social connection. Horizon’s most popular virtual Some Horizon users said in version of the headset and dig
it easier for architects, engi- opened bars and distilleries in In a memo last month an- worlds, the Soapstone Comedy interviews they already spend even deeper into the meta-
neers and designers to work in the metaverse. nouncing the lockdown of Ho- Club. It had about 20 users, all many hours a day in the meta- verse. “The direction that
the metaverse. With a $1,500 In a Meta memo titled “AR, rizon, which was first reported appearing as avatars. When verse, entranced by the seren- they’re moving in, it’s really
price tag, it isn’t aimed at av- VR or the Metaverse: Which is by the tech publication the the reporter introduced herself dipitous interaction it can good,” he said.
 PERSONAL JOURNAL.
© 2022 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Monday, October 17, 2022 | A13

WORK
& LIFE
RACHEL
FEINTZEIG Better and Braver
P Public Speaking
alms sweaty, heart rac-
ing, face flushed. You’re
in front of a crowd at
work again, and it’s ter-
rifying.
Public speaking is
our most common fear, according
to psychology researchers, and
things have only gotten weirder af-
ter years spent in the protective

FROM TOP: YASARA GUNAWARDENA FOR THE WALL STREET JOURNAL; SALESFORCE
cocoon of Zoom. Facing just our
monitors, and maybe an audience
count ticking up in the corner, we
read from our notes and became
reliant on elaborate setups and Zoom addled
crutches (filters, Post-its peeking
over the screen.) presentation
Even those who’ve managed to
avoid it for months—keeping meet- skills; pros
ings virtual, heading out of town
this summer—are on the hook now. offer tips on
Many recently scored promotions,
and are now returning to oratory
getting your
responsibilities they didn’t have be- mojo back
fore. Fall conferences are back on,
as are blowout weddings where the
happy couple would like you to give
a toast. And that crowd, man.
They’re tough.
“Nobody wants to take the
trouble to come in and see you
read from your notes,” says public-
speaking coach Eileen Smith. “You
can just email them if that’s what Salesforce executive says Omid V. Ebrahimi, a clinical
you’re going to do.” LaShonda Anderson-Williams psychologist and Ph.D. student at
Your ability to communicate to likes to give herself a pep talk Norway’s University of Oslo and
a group can affect the trajectory of before addressing a crowd. Modum Bad Psychiatric Hospital.
your career, Ms. Smith says, The reaction stems from our
prompting others to view you as a origins as early humans dependent
leader—or not. phrases such as “what if,” “picture on our status in a group, says Mr.
The good news: You can get this” and “imagine.” Or refer to Ebrahimi, the lead author of a pa-
better. You can get braver. You can past successes by saying, “Remem- per on public-speaking anxiety.
stop telling circuitous stories with ber when.” Standing up to speak, we feel the
no point and blurting out off-color “That kind of language really pressure of being evaluated, risk-
jokes to hide your nerves. moves people,” Mr. Abrahams ing our place among our peers.
Rule number one is to consider says. “They see it in their mind. Remind yourself that that short-
your audience, says Matt Abra- They have a feeling about it.” term burst of stress can actually be
hams, who teaches strategic com- Of course, words are only half helpful, jolting you alert and en-
munication at the Stanford Gradu- the battle—or less, according to hancing your performance, he says.
ate School of Business. Everything Noah Zandan, the chief executive Remind yourself that for most peo-
you say and do should start with of Quantified, a communication- ple, nerves calm within three min-
this question: What do the people coaching software company. His dience 60%-70% of the time, he repeat advice back to her or invit- utes of taking the stage. And re-
listening to you need? What do firm has analyzed data from adds. Open your hands and move ing workers on stage to dance the mind yourself, it’s totally normal.
you want them to know, feel and 250,000 videos, examining how them around a bit, otherwise you’ll Cupid Shuffle. “I get nervous every time,” says
do after watching you? panels of viewers react to every- look like a robot. Try to make sure “People get invested in what LaShonda Anderson-Williams, who
Stories are a great way to con- thing from TED Talks to corporate you’re not repeating one specific you’re talking about,” she says of addresses crowds of physicians and
nect with listeners, he adds, but earnings calls. The upshot: Just gesture—that’s distracting. involving the audience. “It helps healthcare CEOs nearly every week
keep your anecdotes and examples 11% of whether someone is an ef- When Cynt Marshall, the CEO them remember.” as the chief revenue officer of
focused, making sure each one has fective speaker comes down to of the Dallas Mavericks, reviewed For big speeches, Ms. Marshall Salesforce’s healthcare and life-sci-
a key takeaway or emotion you content, according to surveys con- video of herself giving speeches, will practice five to 10 times aloud, ences business. Her advice? Smile.
want to impart. Stick to tried-and- ducted by Quantified. The rest can she was immediately struck by her ideally once or twice a day for the Lean in toward your audience. And
true structures, such as introducing be attributed to things such as the constant walking around the stage. week prior. And she prepares sev- before you hit that stage, tell your-
a problem, outlining the solution passion a person displayed and the “I’m driving myself crazy,” she eral versions in different lengths, in self you’re going to kill it.
and wrapping with the benefit. Or, presence they commanded. thought while watching. case time needs to be adjusted up “I self-talk until the moment I
compare and contrast two things, The best speakers vary their Observing yourself talk can be a or down. At one commencement, hear my name called,” Ms. Ander-
and then draw a conclusion. voices, so make sure to change up strange, brutal exercise. It can also organizers abruptly told her to pare son-Williams says.
Humor has the potential to en- your tone and volume, Mr. Zandan really help. Now Ms. Marshall her remarks to 15 minutes as they “Girl, you got this,” she assures
gage people, but it can also be says. Instead of dropping in a filler pauses in the left, middle and right moved the whole production inside herself out loud. “You were meant
risky. Don’t take aim at those who word such as “like,” pause. It will of the stage for several minutes because of rain. She already had for this.”
are below you in the office hierar- feel unnatural for a while. But tak- each, choosing one person in each cuts marked in her notes.
chy. And run jokes by people who ing a beat in between your section to make eye contact with. If you’re prepared, why do you
are similar to your audience mem- thoughts is a great way to show Whether addressing a crowd of still feel queasy? Even those who Managing Your Career
bers ahead of time. your audience you care, Mr. Zan- 30,000 for a college graduation or have their perfectly formatted note- Scan this code for a
Get granular with your words. dan says—you’re bringing them teaching a corporate group about cards in hand, partners sick of hear- link to join WSJ’s
Try time-traveling language, Mr. with you, giving them a chance to diversity and inclusion, Ms. Mar- ing them rehearse, might still have a networking challenge
Abrahams says, bringing col- reflect and catch up. shall keeps her presentations in- pounding heart and racing thoughts to make career-
leagues into the future with Make eye contact with the au- teractive, instructing students to as they get ready to address a group, boosting connections.

At left, Aaron Luo fences with ing is all about muscle memory,”
son Alexander, age 9. Below, says Mr. Luo. He finishes the work-
he repeats drills on a dummy out by fencing an opponent or plays
at Fencers Club in New York. games on a machine that flashes a
sequence of lights that he must hit
with the tip of his blade. He and his
three nights a week in New York. sons often repeat similar muscle-
ANTHONY GEATHERS FOR THE WALL STREET JOURNAL (2)

He works one-on-one with a coach memory drills at home.

to perfect technical skills, including Twice a week, he trains for 90
fakes and counterattacks. On minutes to two hours at a local
Wednesdays, he attends a group gym. Kettlebells are a staple of his
workout that pairs fencers with an strength workouts. His routine
opponent. The class ends with one changes weekly but focuses on low-
or two bouts against the same op- weight, between 25 pounds and 35
ponent. pounds, and high-intensity repeti-
On Saturday mornings, he trains tions with a cadence of 30 seconds
for three hours at the New Jersey on and 30 seconds off for each ex-
Fencing Alliance near his home in ercise. He does four sets of eight
Millburn, N.J. His sons participate in exercises that might include one-
a children’s program. Mr. Luo warms arm kettlebell swings and triceps
up with 30 minutes of yoga-in- push-ups on the kettlebells.
spired stretches such as downward Mr. Luo does cardio with ladder
dog, as well as with dynamic move- circuits focused on speed and explo-
ments including burpees and jump sivity. He performs four sets of
WHAT’S YOUR WORKOUT | JEN MURPHY squats. He then spends 45 minutes eight drills, such as five hops and a

CEO Carves Out Time for Fencing, Family

on footwork, which entails speed sprint, side-straddle hops and sin-
and combo moves such as a flèche, gle-leg shuffles, as quickly as possi-
a difficult attack technique where ble with 30 seconds of rest be-
the fencer extends his body as long tween drills. This summer, he used

M
any parents relive their ath- year to regain his fencing fitness, but Mr. Luo and his sons, Alexander, as possible. his road bike to build his endurance
letic glory days through their by 2016 he was competing again. In 9, and Sebastian, 6, began training He also performs at least 100 and rode hills to work on explosiv-
children. Aaron Luo must early 2022, Mr. Luo co-founded a for this season in August. His wife, wrist flicks against a dummy. “Fenc- ity. Sundays are his rest day.
choose between attending his sons’ second business, gourmet-food com- Jill Luo, has occasionally fenced but
fencing contests and his own. “When pany Mercado Famous. prefers to get her fitness fix at
tournaments overlap, it’s such a di- “Fencing is physically demanding, barre classes. Mr. Luo serves as a
lemma,” says Mr. Luo, who, like his but it leaves me clearheaded, so I’m strip coach—a designated sideline
sons, competes at a national level. very focused when I switch gears coach in fencing—for his sons. He
Mr. Luo, 42, fenced in high school and put my business hat on,” he provides tactical insights and advice
and competed with a club at the says. during the minute break in between
University of Massachusetts Am- Speed is at least as important as each of the three, three-minute pe-
herst. He took a 10-year hiatus from strength, Mr. Luo says. “When you riods of a bout. “I almost get more
the sport to co-found Caraa, a New are fencing, it is important to set a joy training them than competing
York-based luxury accessories certain rhythm, almost like a dance myself,” he says.
brand, in 2014. One year in as chief with your opponent, and if you can Mr. Luo tries to take part in three
executive, he knew he needed an effectively break that rhythm regional and three national events a
outlet for stress. So he dusted off through speed and tempo, you will year. He is ranked 26th in the nation
his epee, the largest and heaviest of gain advantage,” he says. He also in the veterans-under-50 class. His
the three fencing swords. likens the sport to chess. “Some goal is to compete at the interna-
He joined Fencers Club in New moves are set up like a trap,” he tional level in the next two years.
York and started training with a says, adding that the effectiveness
coach. He also re-embraced an in- of the traps “depends on how real The Workout
tense gym regimen. It took nearly a you can make them look.” Mr. Luo hones his fencing skills
 A14 | Monday, October 17, 2022 NY THE WALL STREET JOURNAL.

PERSONAL JOURNAL.

Ralph Lauren Goes West

Lauren’s brand to California was
OFF BRAND akin to a military operation. The
hospitality staff that works on his
RORY restaurants, including the Polo
SATRAN Bar in New York, were flown in to
Icon synonymous with East Coast debonair stages first California show

R
assure that every mouthful of
crispy iceberg lettuce and buttery
alph Lauren, at 83 one coconut cake was up to their
of the world’s most standards.
successful fashion de- As cozy as the experience
signers, still has might have felt, it is part of a mas-
dreams to conquer. His ter plan for expansion. “There’s a
latest one? California major opportunity to develop the
or bust. business here on the West Coast,”
For Mr. Lauren’s first show on said the brand’s president and CEO
the West Coast, he hosted friends, since 2017, Patrice Louvet, after
clients, celebrities and editors at the show. “Ralph is from New
the palatial Huntington estate in York, so that’s been the heart of
San Marino, Calif. More than half a the company, and he’s more famil-
century after starting his company, iar with that part of the country.”
Mr. Lauren is still selling “the While there’s been a store on Ro-
dream of a better life,” as he puts deo Drive since the 1970s, and
it. there’s now one in Century City, as
Over 100 looks, spanning collec- well, Mr. Louvet is eager to ex-
tions from the rustic Double RL to pand. He spent the last week scop-
the sophisticated Purple Label? ing out spots along the West
Check. A-list stars, including Jes- Coast, from Southern California up
sica Chastain, John Legend, Syl- to San Francisco and Seattle.
vester Stallone, and newlyweds To Mr. Louvet, expanding west
J.Lo and Ben Affleck, who married is worth the significant financial
dressed in Ralph this summer? investment in the show, from the
Check. Rafts of white calla lilies, white linen cushions on the seats
fancy pigs-in-a-blanket, silver to the leather napkin rings on the
bowls of roasted nuts? As many dinner table. “It’s always very dif-
checks as a Polo madras shirt. ficult to do a scientific calculation
“This is amazing for Califor- of this many dollars results in this
nia,” enthused Diane Keaton, who many dollars in return,” he admit-
attended in her signature ted. But the assets from the show,
hat and a sleek suit. The live-streamed to the public and
actress, who sat next to Ralph Lauren hosted friends, clients, editors and photographed ad infinitum, will
Mr. Lauren at the can- celebrities including, from left, Diane Keaton, Jennifer live on, as will the “brand percep-
dlelit banquet dinner, has Lopez, Ben Affleck and Jessica Chastain, at the palatial tion,” as Mr. Louvet termed it. Al-
incarnated Ralphness Huntington estate in San Marino, Calif. though they’re a tradi-
since she wore his mens- tional means, “when
wear-inspired pieces in you look at what drives
the 1977 movie “Annie brand heat, our great-
Hall.” Then, as now, she est peaks are actually
wears his Manhattan tai- driven by shows,” he
loring with a California said.
CLOCKWISE FROM TOP: CHRIS PIZZELLO/ASSOCIATED PRESS; RALPH LAUREN (2)

looseness—the intellectual How much of this is

freshly landed in Los An- about Mr. Lauren and
geles for a meeting. his image? “It’s at the
The career-first Cali- core of who we are as a
fornia celebration was im- company,” said Mr. Lou-
portant to Mr. Lauren be- vet. “We look back and
cause “Los Angeles is a forward at the same
unique place,” he said, but time. We look back at
the show is also about his our heritage and our
fantasy version of the purpose, and forward
West Coast. “Like any because we want to be
place, you bring something to it, ads were immediately buzzy, included plays on Western tropes, styles shown. But Ralph is Ralph, successful 20, 30, 40 years into the
and you build something even bet- prompting fond chatter on social including a segment of grinning wherever he goes. So the signa- future.”
ter,” he said. media. cowboys in Double RL indigo sep- tures of his brand, honed carefully As for Mr. Lauren, he hasn’t
Mr. Lauren promoted the show Fitting for a designer who arates, and Venice Beach surfer over the decades, were all there: lost his playful, Bronx-born cyni-
with a printed advertisement fea- grew up dreaming of becoming an types with crocheted hats and adorable children and debonair cism about Los Angeles. “I know a
turing himself—a vintage photo actor, the show captured pure cut-out swimsuits. “The world of old folks walking in the show, lot of people here, people I love,
showing a younger Ralph in a tur- Hollywood glamour. So: a silky Ralph Lauren world is many preppy Polo classics like V-neck and they haven’t moved,” he said.
tleneck sweater and breezy shorts white Gatsby-esque women’s suit; things, and so is Los Angeles,” ex- sweaters and madras pants. “So there must be something good
on a veranda in Cap Ferrat. The a golden strapless gown. He also plained Mr. Lauren of the range of The process of importing Mr. about it!”

Deciding on Medicare Advantage

As open enrollment starts, steps to take on choices
BY ALEX JANIN on a number of factors, in- generally isn’t required with
AND LESLIE SCISM cluding your financial risk traditional Medicare.

Y
tolerance. Many applicants If you decide to go with
ou’re about to be are drawn to Medicare Ad- Medicare Advantage, be sure
awash in ads for Medi- vantage by the promise of to ask the provider or inde-
care Advantage plans, overall low premiums and pendent agent with whom
the private alternative to tra- out-of-pocket expense caps. you are working whether
ditional Medicare. However, the plans often your doctors and prescrip-
Medicare’s open enroll- have higher deductibles and tions are within the net-
ment period runs from Oct. copayments. Medicare Part work’s coverage. Be aware
15 through Dec. 7. Sometimes D and Medigap plans often that coverage can change
called “Part C,” Medicare Ad- have higher premiums than from year to year.
vantage plans are offered by Advantage plans but cover
Medicare-approved private more healthcare services. Step Four: Understand
companies. Here are steps to Plans may boast coverage the limitations of agents’
decide whether to enroll in for extra benefits, such as recommendations.
traditional Medicare or Medi- hearing aids or gym member- The Centers for Medicare
care Advantage. ships, but they may only and Medicaid Services
cover a fraction of the cost. toughened its oversight of
Step One: Figure out To try to compare op- third-party marketing com-
your options. tions, experts recommend panies this year after a
The decision you
make when you
become eligible
at age 65 could
have major
health and finan-
cial conse-
quences. Original
Medicare in-
cludes Part A,
which covers
hospital care,
and Part B for
outpatient care.
Part D exists for
GETTY IMAGES

prescription
drugs. Consum-
ers can fill in
gaps in their de-
sired coverage
with supplemental coverage, running a cost-benefit anal- surge in consumer market-
known as Medigap. ysis using Medicare.gov’s ing complaints. One concern
Part C, the Advantage plan finder. addressed by officials was
plans, usually come as a bun- that many consumers
dle of A, B and D, and may Step Three: Understand wrongly believed that agents
offer extra benefits such as the potential limitations were presenting options for
vision, hearing and dental of your coverage. a wider range of plans than
coverage. Their branding as To what extent can you tol- those with which they actu-
one-stop shops is part of erate restrictions on your ally worked.
what makes them attractive. care? So now third-party mar-
The average beneficiary The majority of Medicare keting organizations, includ-
has access to 39 Advantage Advantage plans are HMOs, ing independent agents and
plans, the Kaiser Family which have a restricted net- brokers, must inform clients
Foundation reports. work of doctors, hospitals that they don’t offer all
While it is generally easy and health providers, and of- plans available in a given
to switch from original fer less flexibility than PPO area.
Medicare to Medicare Ad- plans, which offer access to
vantage plans, which don’t out-of-network providers at Step Five: Know where
use medical underwriting, higher costs. to go for help.
beneficiaries may face ob- Medicare Advantage In addition to using Medi-
stacles when switching the plans often require patients care.gov’s plan finder, check
other way. to obtain a referral to see a with your State Health In-
specialist, as well as prior surance Assistance Program,
Step Two: Do the math. authorization for certain which provides impartial in-
The route you take depends drugs or services, which formation.
 THE WALL STREET JOURNAL. Monday, October 17, 2022 | A15

ARTS IN REVIEW
Top: installation view: ‘Alexis
Smith: The American Way,’ below:
“Men Seldom Make Passes at Girls
Who Wear Glasses” (1985).

rehabbed gallery spaces. Framed

collages, which can sometimes
seem a frieze of postage stamps
when hung on a big museum wall,
have just enough heft here. The
larger works (see below), with
portions painted directly on the
wall, have breathing room and,
with some clever placement, are
positioned to surprise the viewer.
Although she never gave up
making them, Ms. Smith’s offhand,
ironically twee collages soon
morphed into installations contain-
ing horizontal rows of them.
“Tightrope,” “Sunset” and “Golden
State” (all 1980) are positioned in
white rooms with painted snippets
from period advertising, vertical
heliotrope stripes and a city sky-
line. (In their original gallery ver-
sions, sand covered the floor.) From
PHILIPP SCHOLZ RITTERMANN/MCASD (2)

there, she moved to gigantic piano

keys painted on the wall for “‘The
Promised Land’ for Peggy (from
Porgy & Bess)” (1981), and to “Star-
light” (1982), in which a painted
streamlined train, embellished with
simple collages of silhouetted pas-
sengers within train-window-
shaped metal frames, seems to
speed along the wall. All are re-cre-
ated in the La Jolla exhibition.
Perhaps the punchiest work in
ART REVIEW the show, however, is “Men Sel-

Southern California Collage

dom Make Passes at Girls Who
Wear Glasses” (1985), a big black-
and-white (no grays) wall portrait
of a scarfed Marilyn Monroe
whose sunglasses consist of two
quadrilaterally framed collages.
BY PETER PLAGENS “People who wind up doing a

A
lot of public art have a sort of
La Jolla, Calif. missionary quality,” Ms. Smith
lexis Smith is not quite has said, “the civic spirit of peo-
a feminist artist, not ple who would like to upgrade the
quite a conceptualist, environment.” This is a far cry
not quite an installation from Ms. Smith’s own work. She
artist, not always an avoids head-on polemics (a “polit-
ironist, and in the be- ical artist” Ms. Smith is not), pre-
ginning she wasn’t even Alexis ferring to slide or sneak into such
Smith. In her art, however, Ms. matters from the side; she’s a
Smith is at times all of those kind of concrete poet (remember
things. Collage—intimate and mu- them?), concerned as much with
ral-sized—is her metier, and her words as pictures. At heart,
sensibility is more literary than though—and at her best—Alexis
plastic. One could easily get the Smith is an intimist, which is per-
idea from the 50 works on view in haps why her large installations
“Alexis Smith: The American Way” with a lot of the content painted
at the Museum of Contemporary directly on the wall don’t entirely
Art San Diego in La Jolla that the cohere.
artist has read most of the Great In sum, Ms. Smith is a major
Books of the Western World and artist operating in a minor key.
seen almost every movie and stage Her work goes quietly but defi-
musical ever made. This is slyly ac- antly against the slick techno-pol-
complished by—to describe a typi- ish of Southern California art of
cal Smith collage—a small pictorial the time that was made almost ex-
souvenir from popular culture cou- clusively by men. “I threw over my
pled with a few typewritten words little delicate collages with a sin-
from, for example, a Raymond gle image and a piece of text in fa-
Chandler L.A. detective novel. vor of found objects and fragments
The artist was born Patricia Vija Celmins) convinced her to Southern California is sunny and said. ‘Hell, the guy’s a shamus. of text from pulp novels,” she said
Anne Smith in Los Angeles in 1949. change course. Unlike what was al- giddily prosperous, but a sinister Just think of that, Cooney.’” The back at the middle-beginning of
She changed her name to that of most standard operating proce- side lurks in the shadows. For Ms. quote is from “Clues and Souve- her art. “I don’t know what came
the movie actress when she was dure with Southern California art- Smith, those shadows were best nirs” (1971-72), the earliest work over me.” It’s a good thing for us—
only 17 years old. Her father was a ists, Ms. Smith didn’t go to depicted by the mystery writer in the exhibition, done when Ms. judging by this adroit and friendly
supervising psychiatrist at a state graduate school to get the usual Raymond Chandler, whom Ms. Smith was but a precocious 22 retrospective—that it did.
mental institution, and Ms. Smith’s master of fine arts degree; accord- Smith invokes in what she calls years old. A few more Chandler-
family lived on the grounds. She ing to the artist, graduate school “Chandlerisms”—little phrases isms are speckled throughout the Alexis Smith: The American Way
attended the University of Califor- consisted instead of employment plucked from his Philip Marlowe show—either as early small stand- Museum of Contemporary Art San
nia, Irvine, originally as a liberal- as a girl Friday with the architect novels. She invokes them not for alone collages, or framed collages Diego in La Jolla, through Jan. 29,
arts major, but taking one class in Frank Gehry. their actually mirroring postwar that are part of larger wall works. 2023
the school’s high-powered art de- Ms. Smith’s aesthetic and intel- Los Angeles, but for their lan- The exhibition is, by the way,
partment (its faculty included such lectual home is Los Angeles in the guage, their sound, their atmo- superbly installed in MoCA San Di- Mr. Plagens is an artist and writer
luminaries as Robert Irwin and late 1940s—the war is over, sphere: “‘Name of Marlowe,’ he ego’s more than ample, recently in Connecticut.

MUSIC REVIEW case, Mr. Lindberg heard Ms. Wang But in doing so, the composer cally preternatural ease.
perform both of Dmitri Shosta- achieves that rarest of admixtures, The piece also served to highlight

A Piano Premiere kovich’s delightfully robust concer-

tos at a single concert and, smitten,
offered to write her a work she
could call her own. He is hardly
a work that recalls the greatness of
others while creating a sound world
entirely his own. If the work has a
failing, it’s that the third movement,
the rapport now existing between
the orchestra and its music director.
Mr. Salonen has long been adept at
drawing attention to a given work’s

And a Partnership alone in this regard: In 2019, she

gave the premiere of a concerto
written for her by John Adams,
at least on first hearing, seems to
lack some of the sonic invention of
what proceeds it. But the interplay
architecture—perhaps it’s the com-
poser in him—but the transparent
textures and unity of purpose he
“Must the Devil Have All the Good between soloist and orchestra is drew from the San Franciscans only
BY DAVID MERMELSTEIN himself as a consequential com- Tunes?,” in which she partnered superbly balanced—neither party increased one’s pleasure in appreci-
poser. Now returned to the Golden with the Los Angeles Philharmonic seems shortchanged at any point— ating Mr. Lindberg’s craft.
San Francisco State in the only conducting job to under Gustavo Dudamel; and earlier and Mr. Lindberg’s cadenzas for Ms. Nor should Mr. Salonen’s gifts as
IF YOU’RE GOING to write a piano rival his earlier one, Mr. Salonen is this year, her friend Teddy Abrams, Wang in the first and second move- a programmer be slighted. Context
concerto for the audaciously gifted once more focusing attention on his may not be everything, but it can
Chinese-born superstar Yuja Wang, old friend. aid how a new work is received. By
then why not make it a humdinger? Commissioned by a group of six opening the concert with the Dan-
That’s certainly the approach that ensembles, including the San Fran- ish composer Carl Nielsen’s many-
the Finnish composer Magnus Lind- cisco Symphony and New York Phil- splendored yet underappreciated
berg took in composing his Piano harmonic (where Mr. Lindberg was “Helios” Overture, a true gem of a
Concerto No. 3, a 35-minute work of composer-in-residence from 2009 piece, Mr. Salonen set a high bar.
formidable technical challenges and through 2012), the new piece was Yet the risk paid off by placing the
winning musical ideas written ex- supposed to have its debut last new concerto within a larger Scan-
pressly for Ms. Wang and given its year—but in China, where Mr. Sa- dinavian tradition. Likewise, com-
premiere by the San Francisco Sym- lonen would not have led it, rather pleting the program with Bartók’s
phony led by Esa-Pekka Salonen at than in San Francisco. But pandem- Concerto for Orchestra, a 20th-cen-
Louise M. Davies Symphony Hall ics have a way of disregarding cul- tury landmark and the sole piece on
last Thursday night. tural imperatives, and so the pre- this bill’s second half, could have
Mr. Salonen, now in his third miere ended up stateside, once yielded unhappy comparisons. In-
CLOCKWISE FROM LEFT: JULIA WESELY; PHILIP GATWARD; ANDREW ECCLES

season as the orchestra’s music di- more reuniting the Helsinki natives, stead, it fixed Mr. Lindberg along a
rector, is also a Finn, and he and and marking the first time since proud continuum.
Mr. Lindberg are old friends, having 2013 that a work by Mr. Lindberg Because of its commissioning
effectively begun their musical ca- was given its first performance by structure, Mr. Lindberg’s new con-
reers side by side in Helsinki, Mr. Salonen. Over the years, the certo is guaranteed further hearings
where both acquired their initial conductor has led at least 20 differ- by an assortment of prestigious en-
fame. They were also born just ent Lindberg pieces, among them sembles. In fact, Ms. Wang brings it
three days apart, in June 1958, yet the premieres of five with the Los to Toronto this week, on Oct. 20
another link between two artists Angeles Philharmonic between 1998 Clockwise from left: Yuja Wang, Magnus Lindberg and Esa-Pekka Salonen and 22. And the New York Philhar-
who have, by design, crossed paths and 2005. monic will present it early next year,
repeatedly, with each enriching the Yet Ms. Wang was no less cen- in four concerts from Jan. 5 through
other’s career. tral to this new work’s creation, for music director of the Louisville Or- ments prove spellbinding, not least 10. But the work deserves exposure
Mr. Lindberg was little known in its character was specifically chestra in Kentucky, wrote one for because they require all manner of well beyond that. Whether, when
California when Mr. Salonen began shaped by the composer’s impres- her to perform with his group. subtle dynamic shifts that produce the time comes, other pianists can
programing his works at the Los sions of her abilities and affinities. Mr. Lindberg’s work, in three dis- a hitherto unappreciated kaleido- perform it as compellingly as Ms.
Angeles Philharmonic, where the (Mr. Lindberg’s two previous piano tinct movements, teases music lov- scopic quality in the pianist’s tone. Wang just has is a different matter.
latter enjoyed a 17-season tenure as concertos were also bespoke ers with homages to Ravel and De- And though they must, in fact, be
music director beginning in 1992— works—for Paul Crossley and Yefim bussy, Prokofiev and Rachmaninoff, extraordinarily difficult to play, Ms. Mr. Mermelstein writes for the
and ultimately achieved renown Bronfman, respectively.) In this Liszt and, in the finale, Gershwin. Wang dispatched them with typi- Journal on classical music and film.
A16 | Monday, October 17, 2022 * * THE WALL STREET JOURNAL.

SPORTS
The Rise of the Long Field Goal
More kicks than ever are coming from farther away, shortening the field for offenses and changing late-game dynamics
BY ANDREW BEATON

Baltimore Ravens coach John

Harbaugh faced a difficult decision
in a Week 5 game against the Cin-
cinnati Bengals. The game was tied,
both offenses were struggling to
score, and Baltimore’s drive had
stalled on Cincinnati’s 40-yard-line.
At his disposal, Harbaugh had
Justin Tucker, the kicker who just a
year ago made the longest field goal
in NFL history. Harbaugh was also
acutely aware of the risk from that
far away: a miss would give the
Bengals the ball back near mid-
field.
“That was not an easy choice,”
Harbaugh said afterward, “but in
the end, the scale tipped towards
Justin.”
The 58-yarder sailed through the
uprights. Tucker is perhaps the
greatest kicker ever, but he’s defi-
nitely part of something even big-
ger: an evolution of big feet inside
football.
Kickers now routinely attempt
and make field goals from distances
that once would have been aston-
ishing. They’re more powerful—and
more accurate—from farther and
farther away. This season, 23% of
field goal attempts have been from

CHARLES LECLAIRE/USA TODAY SPORTS

over 50 yards. The previous high,
which not so coincidentally was last
year, was 18%.
Entering just the sixth week of
the season, NFL teams in 2022 have
already attempted more field goals
of 50-plus yards than they did in
the entire 2000 season. Sunday was
yet another demonstration. Tucker,
shockingly, missed a 56-yard kick in
the team’s loss to the New York Gi- Chris Boswell kicked a 55-yard field goal on Sunday. NFL teams in 2022 have attempted more field goals of 50-plus yards than they did in the entire 2000 season.
ants. The Pittsburgh Steelers’ Chris
Boswell hit a 55-yarder that
bounced off the crossbar and then iron—giving teams more chances game, it can be a statistically wise this season have often been re- For some teams, though, this
over, which proved crucial in a to score in even smaller amounts gamble for a team to go for it on warded: Kickers entered Sunday 18 season has also been a reminder
20-18 win over the Tampa Bay Buc- of time. fourth and short in its own terri- for 22 on kicks from 55 to 60 yards that even in 2022, a long field goal
caneers. One of the minor crises in foot- tory. The reward of keeping posses- this season. (They were also 0-for-3 is no sure thing. The longest at-
Mike Westhoff, a special teams ball in recent years has been, in the sion and possibly scoring points on kicks 61 yards or longer until the tempt of the season, from 64 yards
coach in the league for decades, rat- eyes of some, the diminishing rele- outweighs the risk of possibly giv- Chiefs’ Harrison Butker hit a 62- out, missed in the final seconds and
tled off a number of reasons why vance of the foot. Special teams ing the ball to the other team with yarder against the Bills on Sunday.) sealed a painful 17-16 loss for the
now has become golden age of these days can feel less special than strong field position. When the op- “You’re seeing coaches more Denver Broncos in September.
lengthy kicks: Kickers are stronger ever. Kickoffs that result in a touch- tion is trying to keep the ball, or willing to attempt those field goals No situation exemplifies how this
than ever, rules have weakened the back are at an all-time high in 2022. willingly giving the ball back to the because you’re seeing the increased new mind-set can shift the dynam-
rush up the middle on attempts and Punts per game have reached an all- other team via punt, it can pay off accuracy,” said retired kicker Jay ics of a game quite like the Saints-
long snappers are as precise as time low in recent years. Teams are to go for it. Feely, now an analyst on CBS. Vikings game a couple of weeks
they’ve ever been because they’re more inclined to go for 2-point con- What’s even more telling than ago. It clearly reflected that, when
so protected. versions after touchdowns now that when teams attempt kicks this far coaches believe their kickers can ex-
“All of those things work in favor the distance for extra points has late in games is when they do it ecute from far distances, it shortens
of the kicker,” Westhoff says. “If been pushed back.
Kickers are stronger even earlier. Deep into the fourth the field for their offense. The
you don’t have a kicker in the 90% Rule changes have driven much than ever and rules have quarter, up against the clock, an of- Saints attempted two 60-plus yard
[range], then you have to go get an- of this. A good deal of it is also ana- fense might feel little choice but to kicks in the final two minutes.
other kicker.” lytical: modern offenses go for it
weakened the rush up try to send one through the up- The first from kicker Will Lutz
These powerful kicks have also more than ever. And every time a the middle on attempts. rights. Earlier in the game, a coach sailed through to tie the game. Un-
enabled a strategic shift: coaches team passes or runs the ball on has two other options: attempting fortunately for New Orleans, Min-
are more prone to letting their kick- fourth down, that eliminates a field to convert the fourth down or punt- nesota retook the lead with 29 sec-
ers try even at distances where it goal or punt. ing to try to pin the opponent near onds left with a 47-yard field goal.
isn’t an especially high probability Yet there’s something curious The same idea has applied to its own end zone. These days, though, that’s plenty
proposition. Kickers can execute about this phenomenon that in field goals. Some teams will go for In this gray zone—where a team of time to get a kicker into position.
from farther away because they many instances has taken the ball it in hope of a touchdown instead of is far enough out that it could still The Saints did just that when they
have an increasingly long leash to away from kickers. In some in- settling for three points. But the punt, close enough that it might set up Lutz for a 61-yarder.
do so. stances, the same logic empowers notion that field position has been kick or go for the fourth down con- When it sailed off his foot, it had
This has a huge influence on the them even further. devalued also works to a kicker’s version—the idea of punting is in- the distance. It looked like it would
game. An offense used to feel like When a team goes for it on benefit: Long field goals can result creasingly becoming obsolete. More be good. Then it doinked off the up-
it was in comfortable scoring posi- fourth down, part of the thinking in three points or giving the oppos- often, teams are going for it or right. It ricocheted and nailed the
tion only on a small area of the that underpins the decision is that ing team the ball near mid- kicking. Punting, from inside the crossbar. The ball bounced the
field. Now, that patch of grass en- field position can be overrated. De- field. Coaches who have calculated opponents’ 40-yard-line, is on track wrong way—and the kick was no
compasses nearly half of the grid- pending on the situation of the that risk and let their kickers rip to be down 44% from a decade ago. good.

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.
Edmonton 30s <0 1 2 3 4 5 6 7 8 9 10 11 63 Gave rise to
12 13 23 “___, ergo sum”
40s
50s 20s 64 Chest muscles, 24 Urgent requests
Vancouver 60s 0s 14 15 16
70s Calgary
r for short 25 Nonsense,
40s 50s 10s
60s Seattle 70s Winnipeg 17 18 19 65 Warrior princess informally
20s
Portland
of TV 26 Fourth prime
Montreal 20 21
Helena 60s 30s Down
Bismarck
30s Ottawa 28 Floating at sea
Augusta 40s 22 23 1 “Dancing Queen”
Eugene
Billings 29 Dynamite
Mpls./St. Paul Toronto Boston 50s
Boise Albany
Al n 24 25 26 27 28 29 30 31 32 group inventor
Hartford
80s Pierre Sioux Falls Detroit Buffalo 60s 2 King with three 30 Blow away
Milwaukee New York
Cleveland 33 34 35 daughters
Reno
Cheyenne Des Moines 70s 31 Missouri or
Omaha Chicago 40s Philadelphia
Sacramento Salt Lake City
Denver 60s Springfield
Pittsburgh 80s 36 37 38 39 3 Parking lot Monongahela
C
Washington D.C. souvenir
San Francisco 70s Topeka Kansas Indianapolis
90s 32 Ranch animal
Charleston Richmond 40 41 42 43
Colorado City
60s Las
Springs Wichita 50s St. Louis Louisville 70s 100+
4 Alan of “The 37 Queen who
80s Vegas Raleigh Kominsky
Nashville 60s 44 45 46 financed a 1492
Los Angeles 50s Charlotte
Santa Fe Oklahoma Cityy Memphis Method” voyage
90s Phoenix Albuquerque Columbia 47 48 49
San Diego Little Rock Birmingham
Atlanta
5 Number of 39 Plant person
Tucson 40s Warm Rain letters in “Roma”
Ft. Worth Dallas Jackson 80s 50 51 52 53 54 55 56 57
El Paso 41 High point
50s 70s Mobile Jacksonville Cold
6 Loyal
70s T-storms 58 59 42 Team lists
20s 60s
Austin
80s 7 Travails
New Orleans Orlando 45 Dollhouse
30s 80s San Antonio
Houston Tampa
Stationary Snow 60 61 62 8 Winter hrs. in accessory
Anchorage Honolulu 80s WA
40s 60s
Miami 63 64 65 49 Where you might
Showers Flurries 9 Peloponnesian find spam
50s 70s
War victor
Ice MENTAL GYMNASTICS | By Naomi Klarreich 10 Insect on Utah’s 50 Wound cover
Forecasts and graphics provided by AccuWeather, Inc. ©2022 51 Muscle condition
& Daniel Shapiro flag
U.S. Forecasts City Hi
Today
Lo W
Tomorrow
Hi Lo W City Hi
Today
Lo W
Tomorrow
Hi Lo W Across 22 Minor criticism 41 Piazza San ___
11 Similar 52 Diana who played
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; Emma Peel
Omaha 49 19 s 47 20 s Frankfurt 72 58 c 64 46 r (Vatican plaza) 12 Arizona Museum
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice 1 Alan of “M*A*S*H” 23 Washington or 53 Make a lot, say
Orlando 87 70 t 83 59 pc Geneva 71 54 pc 71 52 s
43 Last letter of Natural
Today Tomorrow 5 “NOT a name Cleveland, for 54 “Wait ___!”
Philadelphia 69 45 sh 56 39 pc Havana 88 69 t 89 70 t History location
City Hi Lo W Hi Lo W Phoenix 85 67 s 88 68 s Hong Kong 84 72 c 74 69 sh for just any example 44 Where Simone
13 “The windows to 55 French head
Anchorage 46 38 r 45 36 c Pittsburgh 51 33 c 42 36 c Istanbul 68 60 pc 67 61 c cotton swabs,” 24 Home of Biles might
Atlanta 73 39 s 54 36 s Portland, Maine 60 52 c 57 37 sh Jakarta 92 78 sh 91 79 t testify in support the soul” 56 Reclined
per its website “Antiques
Austin 70 55 r 69 42 s Portland, Ore. 73 51 pc 75 49 s Jerusalem 78 58 s 77 57 s
Roadshow” of legislation? 18 Nixon finger 57 Hit for the Village
Baltimore 69 38 c 54 36 s Sacramento 78 54 pc 85 53 s Johannesburg 76 57 t 78 56 t 9 It may cause
46 Do the wrong formations People
Boise 77 44 s 76 44 s St. Louis 52 28 s 49 30 s London 65 46 c 64 53 pc you to hang 27 Snacks for
Boston 62 52 sh 57 42 r Salt Lake City 73 47 s 74 48 s Madrid 76 56 pc 81 59 pc your head Simone Biles? thing 21 Is suffering 59 Cut off
Burlington 58 43 r 53 34 pc San Francisco 68 56 pc 73 56 s Manila 87 78 c 87 78 t 47 Outscore
Charlotte 77 40 sh 56 34 s Santa Fe 50 36 t 62 39 s Melbourne 64 43 c 71 49 pc 14 Ballpark 33 Whopper Previous Puzzle’s Solution
Chicago 41 31 pc 47 31 pc Seattle 69 50 pc 70 50 s Mexico City 78 57 sh 71 58 r beverage 34 Prohibition 48 Enjoy Aspen R O D S S T O P S L AM
Cleveland 45 36 c 46 38 sn Sioux Falls 43 13 s 43 16 s Milan 73 56 s 75 56 pc E X I T T O R I C M E N U
15 Browser posted at a 50 Window-washing B E E R B A R R E L I V E S
Dallas 70 48 pc 66 41 s Wash., D.C. 70 45 c 56 39 pc Moscow 50 41 r 51 45 c addresses beach, perhaps no-no A N T I A R T R E E D I T S
Denver 64 38 s 68 42 s Mumbai 91 78 t 89 78 c P E R A N G
16 Slammer 35 Give off 53 Without doubt
Detroit
Honolulu
47 36 sh 46 36 sn
88 71 s 86 70 pc
International Paris
Rio de Janeiro
67
82
58 sh
72 c
71 55 c
82 72 r 58 Mattress parts
R I T E S
O N U S
P R I N T E R S
F I E R C E E A T
Today Tomorrow
17 Where Simone 36 “The King” M E L T E N F O U R A D O
Houston 77 57 r 73 44 s Riyadh 94 68 s 95 68 pc Biles might keep 38
Indianapolis 45 29 pc 48 30 c City Hi Lo W Hi Lo W Rome 75 57 s 76 57 pc What you get 59 What Simone E E L R E C E N T S C A N
D E C O D E R S B E T T Y
Kansas City 52 22 s 47 24 s Amsterdam 63 49 sh 61 41 c San Juan 86 75 sh 88 76 sh her gold medals? when you drive Biles might use L O U S E A
Las Vegas 85 63 s 87 63 s Athens 73 61 s 70 58 s Seoul 60 38 s 58 35 s 19 Biscotti flavoring someone home, to cut metal? F I L I P P O T E N S E S T
I T E M O R G A N D O N O R
Little Rock 68 37 s 56 32 s Baghdad 103 69 s 102 70 s Shanghai 69 53 pc 67 51 pc for short 60 One might be
Los Angeles 78 63 pc 84 66 pc Bangkok 88 71 pc 89 71 s Singapore 88 78 c 86 78 t
20 Professional F A D E N A I L S N O D E
acute or obtuse A L A S L A C E SWA Y
Miami 87 75 t 88 70 t Beijing 63 34 pc 64 36 pc Sydney 67 58 sh 72 62 c entertainers 39 Hair salon
offering The contest answer is SEMI PROFESSIONAL.
Milwaukee 42 33 pc 48 32 c Berlin 74 59 c 62 44 r Taipei City 77 66 r 70 66 r 21 Spots for games 61 Finished Hinted at by 38-Across (TEN-FOUR), there are 16
Minneapolis 37 23 pc 41 26 s Brussels 64 53 sh 62 46 c Tokyo 74 64 r 65 55 sh and concerts 40 A really long time 62 Ear-related Across clues that consist of two words of lengths
Nashville 61 30 s 53 31 s Buenos Aires 65 60 pc 68 63 c Toronto 50 38 sh 45 38 c ten and four letters. The first letters of the
New Orleans 80 56 sh 66 47 s Dubai 98 80 s 97 80 pc Vancouver 62 47 pc 61 47 pc Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

answers to those clues spell the contest answer.

New York City 65 47 sh 56 40 pc Dublin 57 41 pc 58 51 c Warsaw 69 53 pc 65 43 sh
Oklahoma City 65 36 pc 57 33 s Edinburgh 55 42 c 54 40 c Zurich 71 52 pc 70 49 pc
THE WALL STREET JOURNAL. Monday, October 17, 2022 | A17

OPINION
Stocks Can Always Get Cheaper BOOKSHELF | By Meghan Cox Gurdon

Are
cheap
stocks
yet?
When I was a
Intriguing. If they could turn
around their business, it
could be a bargain. I won’t
eraged derivatives. When
rates rise, investors get mar-
gin calls to put up more col-
be worth single digits.
Currency dislocations in
Asia and Russia in 1997 and
‘R’ Is
young Wall
Street analyst
visiting insti-
tutional in-
ever say cheap! I kept an eye
on it and visited a year later.
Because of losses and restruc-
turing charges, the company
lateral, so they sell more
bonds, which causes interest
rates to rise even higher,
triggering more selling. This
1998 crushed markets. It feels
similar today. There is more
than $13 trillion in foreign
dollar-denominated debt that,
For Russia
INSIDE
VIEW vestors in
Boston, I sat
only had $4 a share in cash
and, sure enough, the stock
“doom loop” was halted, at
least temporarily, after the
as the dollar rises, gets more
expensive to pay back. And
Muppets in Moscow
By Andy
in a money traded at $4. After another Bank of England’s interven- now price controls are being By Natasha Lance Rogoff
Kessler
manager’s of- year, it had $3 a share in cash tion. A previous doom loop set up to limit the effects of (Rowman & Littlefield, 265 pages, $26.95)

I
fice noting and the stock was worth $3. I involved portfolio insurance, higher energy costs on con-
his framed prints of horse- stopped visiting. It eventually which automatically sold as sumers in the U.K., Germany n 1993, commercial airplanes landing in Moscow were
back riders in red jackets on went out of business. No fu- stocks went down, intensify- and elsewhere—another po- jammed with church and business types eager to
a fox hunt. He asked me what ture, no upside. ing the 1987 stock-market tential doom loop requiring establish a hold in the rowdy, risky atmosphere of
I thought about a particular Market bottoms form when crash. And remember the im- more subsidies if energy costs newly post-Soviet Russia. Among the influx of hopeful
tech stock. I walked him everyone is negative. The In- plosion of Archegos that rise. foreigners was an intrepid American television producer
through my forecast for the ternational Monetary Fund forced selling? That was only It’s hard to buy during this named Natasha Lance. As a teenager, Ms. Lance had been
company and said the stock says the world economy is last year. We could see many period of dwindling expecta- so enamored of Russian literature that she’d changed her
was a buy. “Why?” he asked. headed for “stormy waters.” more. tions. Is sentiment negative name from Susan to the more romantic and Chekhovian
I said, “Because the stock is Ray Dalio, who founded the enough? Are crypto blowups alternative. Fluent in Russian, having studied in the Soviet
cheap.” hedge fund Bridgewater Asso- behind us? I doubt it. Wait Union, Ms. Lance arrived in Moscow with an agenda that
Big mistake. He launched ciates, thinks we’ll see five The bottom still feels for all the cockroaches to fell somewhere between the commerce and religion of
into a 10-minute tirade, years of “negative or poor dance in the sunlight. Eventu- her fellow passengers. At the behest of the Children’s
screaming, “Who are you to real returns.” JP Morgan CEO far off as bad earnings ally there will be capitulation, Television Workshop, she had been tasked with creating a
know if a stock is cheap? Jamie Dimon says stocks reports and defaults with the meme-stock-buying Russian edition of “Sesame
Have you ever lived through a could fall another 20%. Is Reddit crowd dumping shares Street.”
downturn?” He even told me that negative enough? It’s a begin to surface. and curling up in a fetal posi- The popular educational
my tie was too expensive be- start, given that few said tion under their desks, swear- program had transformed
fore he threw me out of his these words a year ago. ing off stocks forever. They children’s television in the
office. Ah, the service busi- My sense is there is more Last week we learned that caused the top; they’ll create U.S. after its launch in 1969,
ness. But I never again said a ugly stuff coming. Eighty per- former Peloton CEO John Fo- the bottom. and as those planes were
stock was cheap and instead cent of hedge funds are down ley borrowed against his in- Dawn always follows our entering Russian airspace in
focused on fundamentals, and dumping their losers. flated shares and now, with darkest hours. After the meek the early 1990s—when Boris
emerging trends, expectations Short-term interest rates are the stock down 95% from its are washed out, markets go Yeltsin was president and the
and market sentiment. heading to 5% or higher, $162 peak, margin calls are back up, driven by the next world had not yet heard of
Cheap stocks can always which means stocks will trade coming fast and furious, trig- wave of productive entrepre- Vladimir Putin—the creators of
get cheaper. Companies such at a lower price-earnings gering more selling and prob- neurs. We need visibility on “Sesame Street” had already
as Peloton, Carvana and Rob- multiple. Even worse, quar- ably more margin calls. The inflation and interest rates established a fleet of nearly
inhood are down 80% to 95% terly earnings misses are bad advice that entrepreneurs rolling over to bring contrar- two dozen foreign co-
from their peaks. Buy the dip, starting, and, like cock- should borrow against shares ian nibblers back to the mar- productions. Tweaked for local
right? Be careful—the biggest roaches, you never see only instead of selling happens ev- ket, figuring the earnings- tastes, the American show’s
mistake is looking backward, one. ery cycle. It’s stupid. Debt miss cockroaches are finally cheerful, progressive mix of short animated segments, live
not forward. In the U.K., higher interest kills. We don’t yet know how dead. Once that happens, we actors and idiosyncratic Muppets appealed to families in
Later I worked as an in- rates triggered selloffs of prevalent this is. Heck, we might start seeing upside countries as far-flung as Israel (“Rechov Sum”) and Mexico
vestment banker until I found gilts (bonds) by pension still don’t even know how earning surprises. Until then, (“Plaza Sesamo”). What delighted children elsewhere, it
out you had to be nice to peo- funds that had hedged or in- many Tesla shares Elon Musk remember, “cheap” stocks can was thought, would surely delight children in post-Soviet
ple. I discovered a graphics- sured against higher interest needs to sell to buy Twitter always get cheaper. Focus on societies. More to the point, for policy makers, a Russian
software company with a $5 rates with liability-driven in- at $54.20 a share. Without fundamentals. “Sesame Street” was a way to spread American values
stock and $5 a share in cash. vesting products—think lev- his bid, Twitter’s stock might Write to [email protected]. such as racial and ethnic tolerance, the legitimacy of non-
traditional sex roles, and the vigor of an open society.
Ms. Lance had a daunting task. Once in the chaotic

Mexico’s Military Gets Hacked Russian capital, she would have to identify creative and
technical collaborators, find trustworthy ruble-rich
investors, and, not least, secure a broadcaster capable of
Mexico’s Pres- the ruling party—and orga- Noticias, another Mexican Mexicans also deserve to sending an initial series of 52 episodes across 11 time
ident Andrés nized crime. news outlet, there are a total know what action has been zones. In a sparkling memoir of the era and the enterprise,
Manuel López Mexico has five regional in- of five intelligence reports in taken using the reports. “Muppets in Moscow,” Natasha Lance Rogoff (as she is
Obrador ran telligence-gathering centers the leaks—one in 2019, three AMLO, as the president is now) re-creates the frantic and vertiginous efforts to
for office in that combine the work of in 2021 and one in August— known, has said there won’t launch “Ulitsa Sezam” against what turned out to be
2018 as an agents from the defense min- linking Mr. Bermúdez to be any investigation. Sedena tremendous headwinds.
AMERICAS honest politi- istry, the Navy, the National crime groups. has remained silent. This is “Translating Sesame Street’s ebullient and idealistic
cian out to Intelligence Center, the Na- This might be chalked up generating the sense of a outlook to Mother Russia was not only incredibly difficult,”
By Mary
clean up cor- tional Guard, the attorney to local links between the nar- coverup and fears that Mexi- Ms. Lance Rogoff writes, “but also incredibly dangerous.”
Anastasia
ruption. Now general and the office of secu- cos and politicians except that can authorities, out of greed When she had left Russia as a student, the country had
O’Grady
the largest rity and citizen protection, or Tabasco is the president’s or terror, have given in to the been in the dour grip of communism. When she returned
computer SSPC. These agents gather in- home state and former Gov. cartels. as a television professional, former Soviet industries were
hack in Mexican history and formation and file reports López Hernández is now the There is also fresh evidence sluicing into the hands of gangsters and oligarchs; chic
new revelations suggesting that are combined and sent to president’s minister of gov- from the hack that the mili- restaurants and hotels were springing up on Moscow
that the government uses spy- the National Intelligence Fu- ernment—the de facto deputy tary demands a greater role in boulevards; and bombs were going off in limousines and
ware to surveil citizens are sion Center, which is the president. the economy. Writing for the newsrooms, without it always being clear who had planted
rewriting that narrative. country’s nerve center for se- Proceso reported Mr. Ber- online news outlet Latinus on them or why. People were going unpaid; people were on the
In September Mexicans curity intelligence. múdez’s claim that the crimi- Oct. 3, Isabella González ex- take. The collapse of 70 years of control and propaganda
learned that a group calling nal group he is alleged to lead plained that the leaked emails had left many Russians demoralized and bewildered.
itself Guacamaya hacked Sed- doesn’t exist. He stressed that reveal a plan for two new mil-
ena, Mexico’s ministry of na- Leaks show the army he “cannot answer for the itary companies to serve tour-
tional defense. The hackers 7,000 police under his com- ists on the Yucatán Peninsula, It was tricky, adapting a television show
claim to have pinched some has information mand” and “he questioned the which would become “the sev- beloved of gee-howdy Americans to a proud
six terabytes of data. In lay- linking drug cartels veracity of the hacked Sedena enth and eighth companies
man’s terms, this could documents,” the paper wrote. established by the Army since people steeped in melancholy and loss.
amount to nearly five million with the ruling class. Proceso said that Mr. López [AMLO] took office.”
pages of text—although it’s Hernández didn’t respond to If this weren’t enough to
probably less because it in- requests for comment. unnerve Mexicans, the Mexican Every foreign gambit needs a fixer, a local who can pull
cludes photos and videos. An Oct. 5 story on the The U.S. war on drugs in- NGO Network for the Defense strings and interpret social and business cues. For Ms.
Even the most ambitious hacked data by the Mexican evitably corrupts institutions. of Digital Rights, working with Lance Rogoff, this role was played by a resourceful and
members of the fourth estate newspaper Proceso said that Mexico’s large and wealthy other transparency groups in- volatile old friend from her student days, Leonid Zagalsky.
haven’t been able to digest during his time as governor neighbor with an appetite for cluding the Toronto-based Citi- It is he who secures her an early meeting with the oligarch
the full contents of the leaks of Tabasco, Adán Augusto Ló- consuming illegal substances zen Lab, alleged earlier this Boris Berezovsky. Over a tense lunch, Berezovsky (a fan of
in the weeks since an organi- pez Hernández put three men was bound to enrich the month that since 2019 the gov- Big Bird, it seems) agrees to fund the Russian portion of
zation acting as an intermedi- in positions of authority at Latin underworld, which was ernment has used Pegasus spy- the show’s expenses—but when his limo gets blown up he
ary for Guacamaya began pro- the local SSPC and in the Ta- bound to use its profits to ware to hack into devices of at leaves the country and Ms. Lance Rogoff is back where she
viding access to the stolen basco State Police who were bribe officials and weaponize least one human-rights activist started. It is a cycle that repeats. Finding a broadcaster for
files. But journalists are ea- named by the southeast intel its operations. and two journalists. Pegasus is “Ulitsa Sezam” proves even more difficult, as assassination
gerly nibbling on a veritable center “as members of the Ja- Yet organized crime is now designed to track terrorists takes out one supporter after another.
feast of data and reporting on lisco New Generation Cartel.” tearing Mexico apart, and al- and criminals, but former Some of the most fascinating passages in “Muppets in
what they’ve found. I have not According to Proceso, the legations that Mr. López Obra- President Enrique Peña Nieto Moscow” deal with the cultural clashes that arose in
downloaded it but have been southeast intelligence center dor’s own cabinet members was accused in 2017 of using it adapting a show beloved of gee-howdy Americans to a
reading the Mexican press. “even referred to one of them are part of it can’t be to spy on his political adver- proud people steeped in melancholy and loss. “Russia has
One conclusion that’s hard as the ‘alleged leader’ ” of an- shrugged off. For the sake of saries. AMLO has promised a long, rich, and revered puppet tradition dating to the
to avoid from the tidbits other criminal group in Ta- the nation and of people like those days are over. But then sixteenth century,” scoffs one collaborator. “We don’t need
shared so far is that the army basco: “Hernán Bermúdez Re- Mr. Bermúdez, who maintains AMLO has made lots of prom- your American Moppets.” One writer’s script comes in with
has a lot of information about queña, who remains at the his innocence, an investiga- ises, many of which seem to a line about Russian folk musicians feeling “sadness in their
alleged connections between head” of the SSPC in the tion seems in order. Short of have slipped away. souls as they play a song of suffering.” Another writer
the political class—including state. According to Aristegui compromising operations, Write to O’[email protected]. suggests using a live-action sequence to teach the letter D :
“His storyboard depicts a sad furry Muppet slowly mop-
ping a linoleum floor and the letter D comes up on the

A Plan X for Elon Musk’s Twitter screen as a voice narrates: ‘D for Depressia.’ ” When Ms.
Lance Rogoff suggests teaching teamwork with a segment
showing kids operating a lemonade stand, her inter-
By Dennis Kneale Musk was ejected as CEO. president is banned for life government requests and pro- locutors are horrified. One of them tells her: “Only des-

A
X.com renamed itself Pay- while the regimes of China, viding targets with the right perate, poor people sell stuff on the street to survive and
ssuming Elon Musk goes Pal and focused on online pay- Russia, Iran and Afghanistan to object and respond. it’s dangerous.”
through with his take- ments, selling to Ebay a year tweet lies and anti-American Twitter has insisted its Throughout “Muppets in Moscow” we toggle between
over of Twitter, he’ll later. Mr. Musk bought the vitriol with impunity. fake-audience bot problem Russia and New York, where Ms. Lance Rogoff’s public-
have to make a real business X.com domain from PayPal in Twitter also should hire amounts to only 5% of total television bosses struggle to accept that doing business in
out of a company that lost al- 2017, saying he had no plans outsiders to conduct an inde- users. Quantifying the real ex- Moscow is “like doing business with the American Mafia
most half a billion dollars on for it. Mr. Musk’s Twitter pendent audit of all previous tent is doable, and Mr. Musk in Chicago, but with onion domes.” Finances are a constant
$5 billion in revenue last year could bring community to company communications re- should disclose those results worry, and the inconsistencies of banking (and backers)
and trails TikTok and Snap in commerce. Influencers and garding censorship requests too. continually threaten to sink the operation. As “Ulitsa
audience reach. He envisions their fans could provide digi- Thwarting flimflam will be Sezam” approaches its air date, the author, now married
something bigger. “Buying tal word of mouth, tied to harder because of the human and pregnant, stuffs $8,000 into her maternity bra to keep
Twitter is an accelerant to membership privileges such as Before creating the factor at play. Lately, I am in a few people paid.
creating X, the everything exclusive discounts, secret in- hot demand and making new On Oct. 22, 1996, the first episode of “Ulitsa Sezam”
app,” he tweeted on Oct. 4. stant sales and access to new ‘everything app,’ he friends on Twitter: Scarlett, went out on the airwaves. Ms. Lance Rogoff writes
Imagine a platform for products. needs to solve the Una, Vivi, Junia, Cheryl, Ava, movingly of stepping outside on the night of the premiere,
banking, payments, stock trad- First he’ll have to address Julie, Enron (she must’ve been looking up at high-rise apartment blocks and realizing from
ing, crypto investing, profes- three thorny problems: Twit- company’s problems. teased a lot as a kid), Linda, the “colored lights reflecting in the windows, shifting
sional and personal services, ter’s quashing of conservative Lucy, Vera, Miranda, Carolina, simultaneously,” that all sorts of families were already
news, entertainment, and re- and nonconforming views, the Jessica, Faye and Wendy. tuning in. The show became hugely popular. For a dozen
tail—an amalgam of the Apple audience-inflating bots that by any government-related These names are on 16 ac- years, millions of children across the former Soviet Union
app store, Netflix, the Sales- Mr. Musk cited for wanting to party—a violation of the First counts that have sent me pri- learned letters and numbers and concepts with Elmo and
force platform for app devel- pull out of the deal, and flim- Amendment’s prohibition vate messages, all of them Grover and their specially designed companions Kubik,
opers, Tradeshift and PayPal. flam consumer scams. against government-imposed adorned with profile photos of Businka and Zeliboba. And then in 2010—“no longer
This vision dates to 1999, He should start by moving prior restraint on free speech. women 30 or 40 years youn- supported by Putin’s people at the television networks”—
when Mr. Musk co-founded Twitter out of Silicon Valley This litany of past govern- ger than I am. This is in just “Ulitsa Sezam” went off the air. An era of exuberance and
X.com, an early online bank. A to Texas, Florida or another ment meddling should be fully the past two months. They re- optimism was well and truly over.
year later X.com acquired politically friendlier place. revealed to the public. Mr. ally seem to like me.
Confinity, a cash-strapped ri- Next up, lift the lifetime ban Musk should create a formal Mrs. Gurdon, a Journal contributor, is the author of
val that had a more successful on @realDonaldTrump. It is process for logging, disclosing Mr. Kneale is a writer “The Enchanted Hour: The Miraculous Power of Reading
service called PayPal, and Mr. unthinkable that a former and adjudicating all future based in New York. Aloud in the Age of Distraction.”
A18 | Monday, October 17, 2022 * **** THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

The Thoughts of Chairman Xi A Warning to Heed on Xi Jinping’s Intentions

T
he most important election in the world abroad that marked the first 30 years after Kevin Rudd’s op-ed “Security, Not dia (after seven meetings with Prime
this year is no election at all. It’s a coro- Mao. He has occupied and militarized disputed Growth, Is Xi’s Focus” (Oct. 13) is Minister Narendra Modi!) for some
worth reading, twice. square miles of tundra in Ladakh, and
nation. When China’s Communist Party islands in the South China Sea, though he had
In 2009 Mr. Rudd was first to no- Indonesia over Natuna’s offshore wa-
anoints President Xi Jinping promised not to. He has
for a third five-year term this His China combines fanned disputes with India,
tice that China’s leaders had grossly
misinterpreted the 2007-09 financial
ters. Mr. Xi also very foolishly offered
a “two systems” deal to Taiwan while
week, it will confirm China’s Marxism-Leninism with Australia and Japan, and he is crisis for the “general crisis” of capi- crushing Hong Kong’s version.
combination of aggressive na- menacing Taiwan militarily. talism from which there is no recov- I remain a skeptic, however, of any
tionalism and Communist ide- nationalist aggression. He is building a military that ery, and which Soviet leaders had Chinese military adventures against
ology that is the single biggest can project power globally awaited for decades. The result was Taiwan. When Rep. Nancy Pelosi flew
threat to world freedom. It all and hold the U.S. homeland that China abandoned its “peaceful to Taiwan and noble columnists hit
but guarantees an era of confrontation between vulnerable. Mr. Xi believes in a potent combina- rise” policy to assert or loudly reas- the front pages with dire warnings of
China and the U.S. tion of Marxism-Leninism at home and nation- sert territorial claims against Japan, imminent war (seconded by China ex-
i i i alist expansion abroad. India and the insular countries in be- perts who speak no Chinese), I wrote
tween. With China at the time coop- that China isn’t Russia, self-sufficient
We say this with regret, and not only be- All of this in service of Mr. Xi’s view that
erating much more willingly than the in energy and food. Without the 95
cause war with China would be a catastrophe. Communist China is destined to replace the U.S. Europeans with the Obama adminis- million metric tons of annual soybean
When China embarked on its reform project un- as the world’s leading power. He said in his tration’s Keynesian big-spending re- imports and other multimillion ton
der Deng Xiaoping in the early 1980s, there was speech Sunday to the Party Congress that China covery plans, there was no interest in proteinic imports as a result of sanc-
reason to hope that the Middle Kingdom might is offering humanity a “new choice” that is an Washington in Mr. Rudd’s warning, tions and a blockade, China would
eventually leave behind its murderous Commu- alternative to the democratic West. As Sinolo- not even when it was laid out in Aus- soon be back on a Mao diet.
nist past. For a time, into the 2000s, that still gist Kevin Rudd has noted, Mr. Xi has revived tralia’s 2009 defense white paper This reveals the surviving limits to
seemed possible as reforms continued and Chi- the Mao-era slogan about “the rise of the East that presaged today’s “Indo-Pacific” Mr. Xi’s powers. He has been speaking
nese living standards increased. and decline of the West.” containment of China. about “food security” for years, but
The bet, which was worth taking for the sake China has weaknesses. The state direction of Now Mr. Rudd tells us that Presi- local authorities continued to sell ara-
of a better world, was that China would follow capital has led to excesses and inefficiencies dent Xi Jinping has leveraged his “an- ble land to developers. Unless China
ticorruption” blackmail powers over develops a capacity for landless agri-
the path of other East Asian nations that that have slowed the country’s breakneck other Communist Party officials into a culture on a massive scale, any Chi-
evolved into democracies as the middle-class growth. So has Mr. Xi’s zero-Covid policy. China domination so complete that he can nese ruler will have to choose between
grew. But China’s Communist Party has never must also import much of its food and energy, become Mao II, infallible leader for war and food. But if Mr. Xi is elevated
relinquished its grip on power as the authori- making it vulnerable in a crisis. life. This despite Mr. Xi’s destructive to Mao II, I hope that this time Mr.
tarians of Taiwan, South Korea, Indonesia and The country’s demographics are daunting, as attack on China’s high-tech enter- Rudd’s warning will be heeded.
the Philippines did. it will likely grow old before its average stan- prises (this year Alibaba had to fire EDWARD N. LUTTWAK
In his book “The Hundred-Year Marathon,” dard of living matches that of the West. With thousands of employees), his refusal Chevy Chase, Md.
Michael Pillsbury makes a powerful case that his desire at age 69 to remain in power for an- to either import Western vaccines or Mr. Luttwak is author of “The Rise
Chinese war hawks have been biding their time other five years, and maybe for life, Mr. Xi is tolerate some contagion, and a foreign of China vs. the Logic of Strategy”
all along until China was strong enough to chal- also setting the country up for a succession di- policy that enduringly antagonized In- and other books.
lenge U.S. power. But there were enough differ- lemma that could become messy.
ences in elite opinion in China to think that even i i i
the Party wasn’t monolithic in its views. Mr. Xi’s But none of this should make the U.S. san-
consolidation of power has ended that debate, as guine about the Xi challenge. It is the most for- When Government Officials Play the Market
he has become the most powerful and committed midable the U.S. has faced since World War II, Regarding “U.S. Officials Trade This article brings to light the lack
Communist leader since Mao Zedong. with economic and military power backed by Stocks of Firms Agencies Oversee” of oversight, the power of insider in-
In a decade Mr. Xi has crushed all dissent, ideological conviction and nationalist ambition. (Page One, Oct. 12): The denials by the formation and monetary gain with re-
imposed a vast censorship regime, and created The West has been slow to recognize the seri- people involved are right out of the spect to employees of government
an intrusive surveillance regime beyond any- ousness of the threat, but perhaps the corona- political playbook, and if the viola- agencies. It also sheds light on the
thing the East German Stasi imagined. He has tion of Mr. Xi will be the catalyst for a biparti- tions uncovered in the article weren’t hypocrisy in our government with re-
erased the autonomy for 50 years that China san awakening. so inappropriate, they would be laugh- gard to transparency and government
able. Congress should require senior oversight of other industries.
had promised Hong Kong and made Xinjiang A U.S. response to Xi Jinping’s challenge is a
officials to place all investments in a Case in point: In 2010, as part of
province a prison camp for the Uyghurs. subject for other editorials on other days. But blind trust while holding government the Patient Protection and Affordable
He has also restored the Communist Party to any response has to start with the recognition jobs. This should apply to members of Care Act, the government made a hul-
the commanding heights of the economy, putting that the U.S. military isn’t currently prepared to Congress as well since some have a labaloo over the Physicians Payment
decades of market reform in reverse. Private meet China’s threat, as Seth Jones argues nearby. history of similar trades. Why should Sunshine Act requiring manufacturers
companies that grew large have been subjected If Mr. Xi becomes convinced China has an advan- any of us be surprised by the selfish of medical products or pharmaceuti-
to political control and state-owned companies tage in hard power, he will find a moment to act behavior of those whose salaries and cals to report to the Centers for
receive preference in capital allocation. Theft against Taiwan or some other U.S. strategic in- benefits are paid by their neighbors? Medicare and Medicaid Services any
from foreign businesses, inside and outside of terest. The U.S. must rally its confidence and re- ROB THORNHILL payments to physicians of more than
China, is a state-sanctioned practice. sources, and soon, if it doesn’t want a world San Diego $10. Many times this came in the
form of lunches or promotional mate-
Mr. Xi has also abandoned the restraint dominated by Xi Jinping thought.
Your investigation reveals another rials (e.g., pens or educational aides).
facet in need of improvement: the As a result, pharmaceutical reps, who

Biden and Democratic Norms widely varying rules and guidance served a vital role and helped provide
among agencies and the judiciary. One new product information in busy

D
clear, consistent set of rules should medical practices, have essentially
emocrats have spent six years warning word on the law under the Constitution. suffice, such as those governing the disappeared from offices.
about the threat to democratic norms This is the same Court, by the way, that last independence of certified public ac- Government ought to keep its own
and institutions, and sometimes they’re week denied a request by Mr. Trump to inter- countants. That might be a good place house in order and apply the same
even right—the Jan. 6, 2021 riot being Exhibit vene in his legal fight over the classified docu- to start for any organization, whether rules of transparency and oversight
A. But they’d have more credibility if they ments seized from his Mar-a-Lago home. Mr. public, private or nonprofit, whose in- in their domain before mandating
stopped undermining democratic institutions Trump wanted the Court to overturn an 11th dependence is paramount. regulations in other sectors.
EDWARD ABAHOONIE RONALD G. FRANK, M.D.
when it suits their political purposes. Circuit Court of Appeals ruling that barred a
Sparkill, N.Y. West Orange, N.J.
President Biden is a leading offender on that special master from examining some of the
score these days, and he did it again last week classified records. The Biden Justice Depart-
by attacking the Supreme Court at a Democratic ment opposed the Trump request, and the High
fundraiser. “I view this off-year election as one Court essentially agreed without dissent.
Visitor Visa Backlog Is Hurting U.S. Tourism
of the most important elections that I’ve been There have been many such Supreme Court Joe Lonsdale’s op-ed “The Other partment’s visitor visa backlogs are
engaged in because a lot can change because rulings against what many Republicans think Immigration Crisis: Endless Visa also constricting business and leisure
the institutions have changed. The Supreme of as their partisan interests. One for which Mr. Waits” (Oct. 10) raises alarms about travel to the U.S.
Court is more of an advocacy group these days Biden in particular should be grateful was the the effect of visa-processing delays The consequences are real. Would-
than it is a, even-handed about it,” the Presi- Court’s refusal to second-guess lower-court rul- on the U.S. job market, but that’s only be travelers are selecting other coun-
dent said at an event for Delaware Rep. Lisa ings that found no fraud that would have over- one example of visa delays wreaking tries to visit. In 2023 alone, the U.S.
havoc on the economy. The State De- is projected to lose 6.6 million poten-
Blunt Rochester. turned the 2020 election.
tial visitors and $11.6 billion in lost
This is a smear against the Court. It’s fair to The reason millions of Americans don’t take spending as a result of likely interna-
criticize this or that opinion, or its broader le- Democratic fears about democracy seriously is The Science of Government tional travelers being unable to ob-
gal philosophy. It’s also fair to say that the Su- because they can see that Democrats don’t re- tain a visitor visa to travel to the U.S.
preme Court’s future is at stake depending on ally believe it. They watched the party spend Grant Equity Requirements in a timely manner. With a recession
which party controls the Senate. money this year to boost Republican candidates Regarding Lawrence Krauss’s “Even looming, the U.S. can’t afford to turn
But calling the Court an “advocacy group” who claim Mr. Trump won in 2020 because the Science Grants Bow to ‘Equity and In- away billions of dollars in visitor
that disdains “even-handed” justice undermines Democrats figure they’ll be easier to beat. Now clusion’” (op-ed, Oct. 13): The new spending. The Biden administration
confidence in the rule of law. It’s every bit as we see the President who claims to revere dem- grant requirements are consistent with must give priority to this issue and
corrosive as Donald Trump’s attacks on judges ocratic norms trash the legitimacy of the insti- particle physics. The government is get visa wait times down to 21 days.
merely providing “action at a dis- GEOFF FREEMAN
as partisans. Probably more so because it’s an tution that upholds the rule of law. It takes two
tance,” the quantum idea that two par- CEO, U.S. Travel Association
attack on the entire Court, which gets the last to undermine democracy. ticles can interact even though they Washington
aren’t connected; for what can be more

Illinois Bids to Entrench Union Power disconnected than the federal govern-
ment and the scientific community? Covid Changed Everything

I
The rules expand on the “wave-particle
Lisa Wolfe points to the results of
llinois unions are feeling bullish at the ers’ “economic welfare and safety at work.” duality,” whereby a quantum entity can
a 2018 Arizona referendum that over-
prospect that a ballot amendment this No- The Illinois Policy Institute says more than be simultaneously a wave and a parti-
turned a pro-school-choice law (Let-
vember could codify their political power 350 state labor laws would be in jeopardy, and cle. In Washington, this means being
ters, Oct. 8). I wouldn’t bet on the
in the state constitution. They are also hoping the measure includes an outright ban on a productive and destructive simultane-
same result today. Beginning in March
that this could be a blueprint for Big Labor right-to-work law that lets workers decide ously. Physics can explain everything.
2020, many K-12 schools switched to
STEPHEN HORWITZ
across the country. whether to join a union. remote learning. Parents got to see
Bethesda, Md.
In a recent radio interview with WMAY, Illi- In 2019 the Chicago Teachers Union tried what their kids were learning. Many
nois AFL-CIO President Tim Drea was asked to include housing in its contract negotia- didn’t like it, and public schools are
why Amendment 1 is necessary when Illinois tions, tweeting that “[o]ur proposals de- hemorrhaging students. Arizona par-
You Need a Degree for That ents may have changed their minds.
is one of the most pro-union states and labor mand more staff to support families in dan-
Your editorial “Justice Jackson’s TONY LIMA
unions already have unprecedented political ger of losing housing, and advocate for a
‘Race Conscious’ History” (Oct. 8) Hayward, Calif.
sway. “I gotta tell you,” Mr. Drea said, “we’re program that financially helps (support states, “It doesn’t take a Harvard Ju-
getting a lot of interest on this amendment staff members) and new teachers purchase ris Doctor to understand the phrase
from other states.” a home.” Mayor Lori Lightfoot objected, but ‘equal protection of the laws,’ and to
That should be an Aha! moment for Illinois Amendment 1 would give the union constitu- know that treating citizens differ-
Pepper ...
voters who must have been puzzled at the tional backing that it could use for more le- ently based on race is the opposite.” And Salt
push to protect unions when they already verage in negotiations and for legal backup But you fail to state the corollary:
THE WALL STREET JOURNAL
dominate government in Springfield and Chi- in court. that an Ivy League degree is indeed
cago. Mr. Drea said it is important to enshrine Per the Illinois Board of Elections records, required to believe the opposite.
workers rights into the state constitution “so among the contributors to the ballot measure LARRY CIOLORITO
they can’t be taken away by the constantly have been several unions far from Springfield. Darnestown, Md.
shifting political winds and politicians.” The International Union of Operating Engi-
Shifting political winds? If only. Democrats neers gave $1 million (Washington, D.C.), the CORRECTION
hold supermajorities in both houses of the UA of Journeymen and Apprentices of the
state Legislature, and they don’t decide what Plumbing and Pipefitting Industry gave $1 mil- The Oct. 14 op-ed “Peculiarities
to eat for breakfast without an assent from the lion (Annapolis, Md.) and the United Brother- Abound in Georgia’s Elections” mis-
spelled the name of Carrollton, Ga.
leaders of government unions like the teachers hood of Carpenters and Joiners of America
and the American Federation of State, County gave $1 million (Washington, D.C.).
Letters intended for publication should
and Municipal Employees. Unions tried this gambit in Michigan in be emailed to [email protected]. Please
Unions want Amendment 1 because its lan- 2012 and lost 57% to 42%. But if Amendment include your city, state and telephone
guage would expand collective-bargaining 1 succeeds in Illinois, expect to see it on the number. All letters are subject to
subjects beyond wages and benefits to the ballot in many states—especially California, editing, and unpublished letters cannot “Would Monsieur care to keep
be acknowledged.
broad catchall of anything that affects work- Washington, Oregon and New York. the sad poet look?”
THE WALL STREET JOURNAL. Monday, October 17, 2022 | A19

OPINION

America Needs a New Civil Rights Act

By Philip Hamburger most up-to-date views on race under pressure or inducements to discrimi-

I
the guise of barring racial discrimi- nate—as revealed by Operation
t is time for a new civil-rights nation. Yet the response is muted be- Choke Point. This Obama-era Justice
act that addresses the dangers cause the assault on dissent is subtle Department program pressured
of our time, not merely those and many critics within the profes- banks to deny payment services to
of the 1960s. sions are fearful. PayPal is excep- disfavored but lawful businesses—an
The threat again comes tional only in its ham-handedness, effort at rule by boycott rather than
from discrimination, but now by the and we can’t assume market reme- by law.
federal government as well as states dies will suffice for more sophisti- The solution is to recognize and
and private organizations. Most wor- cated discrimination. clarify the common-carrier antidis-
risome is federal and state encour- Private organizations don’t al- crimination duties of private compa-
agement for private entities to dis- ways act on their own. Government nies. The Texas free-speech statute
criminate against Americans with works through social-media plat- recently upheld by the Fifth U.S. Cir-
dissenting views. Also significant is forms to censor Americans who re- cuit Court of Appeals (in NetChoice
discrimination that bars Americans fuse to follow orthodoxy on Covid-19 v. Paxton) requires large social-me-
from participating in services ordi- and election fraud. It uses interpre- dia platforms to live up their com-
narily open to the public. tations of Title IX, which bans sex mon-carrier duty by refraining from
discrimination in schools, to require viewpoint discrimination. A new
private regulation of speech about civil-rights act could apply common-
The 1964 law targeted sex, including dissent on sexual poli- carrier duties to payment systems,
tics. For decades the federal govern- such as PayPal and GoFundMe, so
racial discrimination. ment has demanded that universi- they don’t discriminate (except as al-

DAVID KLEIN
Today’s problem is the ties establish institutional review lowed in narrow circumstances by
boards to license much academic in- common-carrier principles or by an-
suppression of dissent. quiry and publication, predictably titerrorism and anti-money-launder-
with a tilt against scholars whose ing rules).
views are deemed old-fashioned or funding leaves much discretion for the extent they exercise the power A civil-rights law encompassing
An example of the latter is Pay- insensitive. abuse. of government. Just because gov- these three principles would be
Pal’s recent announcement that it States are no better. Many leave The funding justification for regu- ernment power is privatized doesn’t much less intrusive than the old
will confiscate $2,500 from custom- the regulation of lawyers to bar as- lation increasingly reaches not only mean it should escape the ordinary civil-rights laws, which apply
ers who spread “misinformation.” sociations, some of which are adopt- subsidized programs but entire insti- limits on such power. So when insti- broadly to private employers and
The company later claimed the ing rules that penalize lawyers for tutions. And almost every major in- tutional review boards, Title IX otherwise take aim at private dis-
announcement was “incorrect infor- “discrimination,” understood to in- stitution receives federal funding. So committees, bar associations or crimination. This act would restrict
mation”—dare one say “misinforma- clude insufficiently advanced opin- the potential for privatized govern- other professional organizations ex- private parties only if they exercise
tion”? But it turns out that PayPal ion. Some police forces tie promo- ment discrimination is nearly unlim- ercise delegated legislative or judi- government power, if they cooperate
still threatens to take $2,500 from tions to education—provided by ited. In education, conditions on cial power, they should be vulnera- with the government in enabling it
customers for promoting “intoler- organizations that discriminate funding interfere with academic ble to pay damages for their to evade the First Amendment, or if
ance that is discriminatory.” Perhaps against the unwoke. speech and the freedom of private viewpoint discrimination. they function as common carriers by
it should fine itself. If federal or state governments institutions. Second, government shouldn’t be holding their services open to the
At least PayPal’s sharp treatment engaged in viewpoint discrimination, The first step in a constitutionally able to use private organizations to public.
of its customers ensured a sharp re- they would violate the First Amend- more modest approach would be to evade the First Amendment. So We live at a time when government
action. Many canceled their ac- ment. But they seem to think they recognize that government power when private entities cooperate with and private parties unite in censori-
counts, and the company’s stock can evade constitutional limits by shouldn’t be exercised in ways that government to execute its policies ousness. Government runs its power
price dropped 6% in one day. When getting private entities to do their discriminate. On this basis, a new that violate the First Amendment, through private entities and uses
companies are too crude in their dirty work. civil-rights act could bar discrimina- they should be accountable. The so- them to discriminate, and many of
censoriousness, cancellation can go One way to control such behavior tion in the exercise of government cial-media platforms, for example, them discriminate in crucial services
two ways. would be to follow the example of power. At the governmental level, shouldn’t be allowed to cooperate that traditionally have been open to
Too often, however, private and civil-rights laws that tie antidiscrim- this would prohibit viewpoint dis- with the government in carrying out all. Such discrimination will further
government discrimination isn’t as ination principles to federal funds crimination by federal and state offi- its viewpoint discrimination. divide our society by making dissent
candid and doesn’t provoke a con- and other privileges. Title IX, for in- cials and make their discrimination Third, private entities that gener- a basis for exclusion. A new civil-
centrated response. Private profes- stance, conditions federal education subject to suits for damages without ally hold themselves open to the rights law is profoundly necessary.
sional organizations—for example, funding on the absence of sex dis- qualified immunity. public also shouldn’t be permitted to
those overseeing lawyers and even crimination. But as should be obvi- The bar against discriminatory discriminate. This is especially im- Mr. Hamburger is a professor at
real-estate agents—are taking aim at ous from Title IX, conditioning anti- exercises of government power portant because such enterprises are Columbia Law School and CEO of the
practitioners who don’t have the discrimination principles on federal would also reach private bodies to often vulnerable to government New Civil Liberties Alliance.

If You’re Hunting for Heresy, You Aren’t a Scientist

Florida Surgeon to begin with, and the vast majority subjected to peer review and pub- any clinical trial data, based on a Or recall how Dr. Fauci and for-
General Joseph of whom now have some immunity lished with all the data disclosed projected benefit-harm analysis that mer National Institutes of Health
Ladapo stirred a from prior infection or inocula- so that the scientific community didn’t undergo peer review. Pfizer director Francis Collins conspired
hornet’s nest when tion—outweigh the risks. can replicate the findings.” on Thursday issued a press release to discredit the authors of the
he released an This is a fair and important dis- Centers for Disease Control and claiming the boosters produced a Great Barrington declaration, which
analysis of state cussion to have, but the so-called ex- Prevention studies, including the stronger antibody response to the urged focused protection on the
death and vaccine perts don’t want to have it because ones that were used to support newer variants compared with its vulnerable while liberating young
LIFE
records that they worry it will undermine their government vaccine and mask man- original Wuhan vaccine, but it in- people from lockdowns. “There
SCIENCE
showed young men assertion that vaccines are an unal- dates, aren’t peer-reviewed by out- cluded no data. needs to be a quick and devastating
By Allysia
experienced an loyed public-health good. Instead, side scientists, and the CDC’s un- Dr. Ladapo is being condemned published take down of its prem-
Finley
84% increased risk they are denouncing Dr. Ladapo as derlying data aren’t published for by the public-health pharisees for ises,” Dr. Collins wrote to Dr. Fauci.
of cardiac death “antiscience”—the same epithet outside scientists to replicate. breaking cardinal commandments Mr. Thorp participated in the
within four weeks of receiving an they’ve used against critics of lock- of science, which the government, takedown of this approach too,
mRNA vaccine. Actually, that’s un- downs, mask mandates and climate drugmakers and scientists who con- writing that the “risky and mis-
fair to hornets. They aren’t as policies. Joseph Ladapo is being form to the “consensus” violate all guided course” of “opening of col-
mindless or vicious as the self- But science relies on challenging the time. leges and schools has accelerated
anointed experts attacking Dr. assumptions and debating evidence. condemned for something Some experts have taken to the spread of the virus and will
Ladapo. People who refuse to do this so-called public-health Twitter to quibble with Dr. mean untold suffering among both
Eric Topol, director of the shouldn’t call themselves scientists. Ladapo’s methodology. No study is students and the people to whom
Scripps Research Translational In- This includes the editor in chief of experts do all the time. flawless, and Dr. Ladapo includes a they are now spreading the virus.”
stitute and one of America’s leading Science, H. Holden Thorp, who on section in his analysis acknowledg- Imagine how much bigger youth
Covid scolds, condemned Dr. Thursday published an ad hominem ing its limitations. He tweeted: “I mental-health problems and learn-
Ladapo’s study as “baseless, reck- attack on Dr. Ladapo purporting to Food and Drug Administration love the discussion that we’ve ing loss would be if the “consen-
less, and irresponsible” because it be a defense of science. rules require that trial data for vac- stimulated.” sus” hadn’t been challenged.
seemingly contradicted the expert A “credentialed scientist from cines and drugs be made available Mr. Thorp characterized Dr. Now Mr. Thorp calls for a purge
consensus that myocarditis caused outside the field”—Dr. Ladapo to the public after their approval. Ladapo’s “move” of encouraging de- of scientists like Dr. Ladapo who
by vaccines is “typically mild and trained in internal medicine— The FDA didn’t do so for the bate as coming “from page 1 of the challenge the consensus: “Until the
fully resolves in nearly all affected” shouldn’t question the “scientific Covid-19 vaccines. Scientists seek- anti-science playbook.” The actual scientific community deals with
(emphasis added). consensus in a public manner that ing to replicate the safety and effi- antiscience playbook is the one Mr. misinformation from within, it can-
The latter is probably true, but undermines trust in science,” as- cacy findings from Pfizer’s trial Thorp and his team are running: not expect to deal with it from
Dr. Ladapo’s study shows that some serted Mr. Thorp, a former college sued the agency to release the data. Smear scientists who question or- without.” One of America’s scien-
young men may experience severe administrator whose background is A federal judge forced the FDA’s thodoxy as “antiscience” to shut tific advantages over our adversar-
effects. And it’s far from clear, as in chemistry. “Unequal perspec- hand in January, but it still hasn’t down dissent. Remember Anthony ies is a political system that allows
Dr. Ladapo notes, that the benefits tives do not deserve equal time, released critical datasets. Fauci’s declaration that his critics free inquiry and discourse. Too
of the mRNA vaccines for young, and challenging scientific consen- The CDC also recommended the were “really criticizing science be- many scientists nowadays want to
healthy men—who were at low risk sus requires evidence that has been new bivalent Covid boosters without cause I represent science”? give it away.

The U.S. Isn’t Ready to Face China on the Battlefield

By Seth G. Jones deficiencies in America’s defense in- in a peacetime environment. In a ma- demand for weapons systems and the first missiles—not the last ones.

T
dustrial base that could jeopardize jor regional conflict—such as a war munitions required for one or more Filling inventories requires sustained
he Biden administration is the ability to fight a war with China. with China in the Taiwan Strait—U.S. major wars. Companies need to hire, multiyear investment. Brick-and-
doubling down on its recogni- The capabilities for fighting are also munitions needs likely would exceed train, and retain workers. Supply mortar investments for factories take
tion of China as America’s essential for deterring China. Wash- Pentagon plans and stockpiles. chains for the U.S. defense sector are even longer.
main competitor. The recently re- ington’s assistance to Ukraine has de- In nearly two dozen iterations of a also not as secure as they should be, These challenges don’t have quick
leased National Security Strategy and pleted U.S. stocks of some weapons Center for Strategic and Interna- with some businesses shutting down or easy solutions. That means we
the soon-to-be-released National De- systems and munitions, such as tional Studies war game that exam- or moving supply chains overseas— have to begin now. One step is for
fense Strategy—Congress has already Stinger surface-to-air missile sys- ined a U.S.-China war in the Taiwan the Pentagon to reassess total muni-
received a version of the latter—con- tems, M777 howitzers, 155mm am- Strait, the U.S. expended all its joint tion requirements for one or more
clude that China poses the most sig- munition, and Javelin antitank mis- air-to-surface standoff missiles and The invasion of Ukraine major wars. This might include mod-
nificant threat to the U.S. What ad- sile systems. long-range precision-guided antiship eling the expenditure rates of critical
ministration officials haven’t said, These challenges highlight an even missiles within the first week of the has exacerbated critical guided munitions among land, naval
however, is that the U.S. isn’t fully more serious concern: The U.S. de- conflict. These missiles are critical deficiencies in America’s and air forces in a major conflict at
prepared to fight a major war against fense industrial base is inadequately because of their ability to strike Chi- various levels of intensity.
China. prepared for the wartime environ- nese naval forces from outside Chi- defense industrial base. The Pentagon also needs to focus
The war in Ukraine has exposed ment that now exists. It is operating nese defenses. on targeted investments in key muni-
The U.S. is not the only country tions and weapons systems, such as
facing this challenge. In a recent war sometimes to unfriendly countries. long-range precision strike and inte-
game involving U.S., U.K. and French In other cases, there aren’t alter- grated air and missile defenses.
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY forces, the U.K.’s Third Division ex- native sources for key weapons sys- These investments should include
Rupert Murdoch Robert Thomson hausted national stockpiles of critical tems and munitions. The Javelin, for signing multiyear contracts.
Executive Chairman, News Corp Chief Executive Officer, News Corp munitions in just over a week. instance, relies on a rocket motor During World War II, U.S. and al-
Matt Murray Almar Latour Solving these problems will take without a major secondary option. lied defense industrial production
Editor in Chief Chief Executive Officer and Publisher
time. There are also significant vulnerabili- was essential to defeating both Ger-
Karen Miller Pensiero, Managing Editor DOW JONES MANAGEMENT: Defense companies are generally ties with some rare-earth metals, on many and Japan. But it didn’t happen
Jason Anders, Deputy Editor in Chief Daniel Bernard, Chief Experience Officer; unwilling to take financial risks with- which China has a near monopoly; overnight. If the U.S. is serious about
Neal Lipschutz, Deputy Editor in Chief Mae M. Cheng, SVP, Barron’s Group; David Cho,
Barron’s Editor in Chief; Jason P. Conti, General
out contracts in place, including mul- other elements such as titanium and competing with China, it needs to
Thorold Barker, Europe; Elena Cherney, Coverage; tiyear contracts. While the U.S. De- aluminum; semiconductors and other put its money where its mouth is.
Andrew Dowell, Asia; Brent Jones, Culture, Counsel, Chief Compliance Officer; Dianne DeSevo,
Training & Outreach; Alex Martin, Print & Chief People Officer; Frank Filippo, EVP, Business fense Department signs multiyear microelectronics. The defense industrial base is a criti-
Writing; Michael W. Miller, Features & Weekend; Information & Services, Operations; Robert Hayes, contracts for ships and airplanes, it Finally, time is a major constraint. cal place to start.
Emma Moody, Standards; Shazna Nessa, Visuals; Chief Business Officer, New Ventures; generally does not sign multiyear It can take roughly two years to pro-
Elizabeth O’Melia, Chief Financial Officer;
Matthew Rose, Enterprise; Michael Siconolfi,
Josh Stinchcomb, EVP & Chief Revenue Officer,
contracts for munitions. This risk duce some types of missiles and sys- Mr. Jones is senior vice president
Investigations
WSJ | Barron’s Group; Jennifer Thurman, Chief aversion is compounded if companies tems, such as the Patriot Advanced and director of the International Se-
Paul A. Gigot Communications Officer; Sherry Weiss, Chief have to make additional capital in- Capability PAC-2/PAC-3 air- and mis- curity Program at the Center for
Editor of the Editorial Page Marketing Officer vestments, especially brick-and-mor- sile-defense system, Tomahawk V, Strategic and International Studies
Gerard Baker, Editor at Large
EDITORIAL AND CORPORATE HEADQUARTERS:
tar ones. air-launched cruise missile, and long- and author, most recently, of “Three
1211 Avenue of the Americas, New York, N.Y., 10036 There are also workforce and sup- range precision strike missile. These Dangerous Men: Russia, China, Iran
Telephone 1-800-DOWJONES ply-chain constraints on increased lead times are generally to deliver and the Rise of Irregular Warfare.”
A20 | Monday, October 17, 2022 THE WALL STREET JOURNAL.

WORLD NEWS

U.K.’s Truss Struggles to Save Her Job

BY MAX COLCHESTER party or is she irreversibly set of the government by the who are vocally loyal. John soon is a trade-off,” says Tony is almost certain to raise in-
damaged? The outlook for her prime minister,” said Robert Redwood, a lawmaker and Travers, politics professor at terest rates faster than it oth-
LONDON—Having fired her tenure in Downing Street ap- Halfon, a Conservative law- supporter of Ms. Truss’s re- the London School of Econom- erwise would to contain the
chancellor of the exchequer pears grim, analysts say. Some maker. Another called on Ms. forms, said the prime minister ics. Ousting Ms. Truss “might inflation the plan would fuel.
days ago, U.K. Prime Minister in the party privately predict Truss to quit. “The game is up,” should remain. Those who be the least weird thing to There followed a series of
Liz Truss is battling to save she could be pushed out as Crispin Blunt, a Conservative want her out “want to stop all do.” If she is evicted from of- embarrassing setbacks for the
her own job after what many soon as this week. Downing lawmaker, told the U.K.’s Chan- tax cuts, plunge us into reces- fice within the coming two prime minister. Ms. Truss on
political analysts and mem- Street declined to comment. nel 4. sion and claim they warned us. months, Ms. Truss would be- Friday fired Kwasi Kwarteng,
bers of her own party regard When asked about Ms So far senior cabinet mem- Their economic remedies come the shortest serving her longtime political ally and
as the worst start to a British Truss’s economic plan, Presi- bers remain, publicly at least, would be a return to austerity. prime minister in British his- co-author of the economic
premiership in modern times. dent Biden said, “I wasn’t the loyal. “We are going to do They are playing political tory, beating the record of plan. To replace Mr. Kwarteng
Ms. Truss’s popularity rat- only one that thought it was a games at the expense of peo- George Canning who died in as chancellor of the exchequer,
ing is the lowest of any British mistake.” He described the ple’s lives and hopes,” he office in 1827 after 119 days. she named Jeremy Hunt, a for-
prime minister since the early outcome as predictable. wrote on Twitter on Sunday. Ms. Truss’s experiment with mer health minister who
1990s, according to polls, after “I doubt if she can last long,
The outlook for the The rate of collapse in Ms. Reaganomics—big tax cuts backed her rival Rishi Sunak in
a turbulent few weeks that I give her at most a few weeks, new leader’s tenure Truss’s political authority is combined with spending in- the leadership contest.
saw her plan to boost growth maybe less,” said Vernon Bog- unprecedented in modern Brit- creases—turned into a rout. During his first full day on
through the biggest tax cuts in danor, professor of government
in Downing Street is ish politics. What started a Investors expressed concerns the job on Saturday, Mr. Hunt
a generation cause turmoil on at King’s College London. Top grim, analysts say. month ago as a grand plan for about the scale of borrowing announced he was effectively
U.K. financial markets, forcing of mind for many Conservative the ruling Conservatives to re- required to fund both tax cuts abandoning her economic
the new leader to retreat from lawmakers will be whether Ms. shape Britain through ambi- and an energy subsidy for the plan—warning voters that
her signature economic pro- Truss is so toxic now that go- tious economic reform has British public and businesses some taxes would need to rise
gram—the pillar of her cam- ing to the polls would mean an things differently, charting a now boiled down to utilitarian at a time of high inflation and and some spending cuts take
paign to replace ousted former electoral wipeout and cost new course for growth,” Ms. political calculus as lawmakers fast-rising interest rates. place to reassure financial
Prime Minister Boris Johnson them their jobs. “They will be Truss wrote on Twitter on weigh whether orchestrating Higher interest rates and infla- markets that Britain’s finances
just six weeks ago. motivated by fear of losing Sunday. On Friday, she said the third defenestration of a tion increase borrowing costs were stable. He will present a
Now, Conservative Party their seats,” he said. she still wanted to press ahead Tory prime minister in as and put government finances new economic budget on Oct
lawmakers are weighing a ba- On Sunday, several Tories with reforms like deregulation many years would hurt or im- on a precarious footing. 31. Mr. Hunt denied that he is
sic calculation: Can the party called for Ms. Truss to reset that might help spur the slug- prove their electoral chances. The public, meanwhile, be- now effectively running the
head to elections, which must her premiership. “There has to gish British economy. “The threat of electoral came alarmed at the prospect government. “The prime min-
be held within two years, with be, in a pretty short time, an There are still some in the wipe out versus the curiosity of much higher mortgage pay- ister is in charge,” he told the
Ms. Truss as the face of the apology and a fundamental re- libertarian wing of the party of having another leader so ments as the Bank of England BBC on Sunday.

Iran Protests Spread

With Uprising at Prison

KOOSHA MAHSHID FALAHI/MIZAN NEWS AGENCY/ASSOCIATED PRESS

BY BENOIT FAUCON cording to officials and hu- gime event turned into an an-
AND DAVID S. CLOUD man-rights activists. tigovernment protest. The
By Sunday morning, author- government has denied re-
The protest movement ities said they were back in sponsibility, saying the girl
sweeping Iran spread to a Teh- control, but the unrest marked died from a heart condition.
ran prison known as a symbol another indication that the By the accounts of both ac-
of political repression in a new country’s Islamic leadership is tivists and the government,
challenge to the Islamic Repub- facing one of the gravest tests the violence at Evin began on
lic, with detained dissidents in its 43-year existence. The Saturday.
chanting antigovernment slo- protests that first focused on In the women’s ward of the
gans before violence erupted the country’s mandatory hijab, prison, some inmates broke
and a deadly fire engulfed the or headcovering, for women down the door of the two-story
facility, activists said. have morphed into something building housing around 45
Authorities said the fire larger, calling for the end of prisoners, and moved into the
killed four inmates and the strict Islamic governance staff area of the prison yard,
blamed a planned escape at- ushered in with the country’s where they started chanting
tempt on Saturday for the 1979 revolution. antigovernment slogans, said Authorities said four inmates died at the blaze at Evin Prison, a complex in north Tehran.
mayhem at Evin Prison, a While authorities said the Atena Daemi, a human-rights
complex in north Tehran that prison violence had nothing to activist in Tehran who was re- told. Women reported seeing The government has ar- When prisoners from Ward
serves as a political prison for do recent protests, witnesses leased from Evin eight months guards armed with rifles aim- rested hundreds of protesters, 7 broke out of their building,
dissidents and foreigners. A and advocates for the prison- ago after seven years impris- ing at them with laser sights, jailing the most politically ac- they freed prisoners in Ward
large fire was visible at Evin ers said the extraordinary in- oned there. She said she had which project a visible beam. tive ones in Evin, said mem- 8, Ms. Daemi said.
from the densely populated cident at Evin was another heard accounts of the riot from Two women prisoners— bers of the protest movement Among those in Ward 8 was
neighboring communities, and sign that the leaderless move- eight families, who received Sepideh Kashani, an environ- and human-rights activists. Emad Shargi, an Iranian-Ameri-
loud bangs were heard ment was spreading beyond brief calls Sunday from prison- mental activist, and Zahra Sa- More than 15,000 inmates can incarcerated on what the
through much of the night. the government’s control. ers in Evin’s women’s ward. faei, a political activist—were are said to be held at the U.S. has called false charges, ac-
The melee started in a ward Protests continued across A prison guard warned the overcome by the tear gas and sprawling complex on the out- cording to his sister, Neda
of the prison that houses in- Iran over the weekend, accord- women, some of whom needed treatment, Ms. Daemi skirts of Tehran. Authorities Sharghi. She talked to him
mates convicted of financial ing to footage verified by Sto- weren’t wearing mandatory said, citing accounts from the said Saturday’s melee began in briefly Saturday night by phone,
crimes and other criminal of- ryful, which is owned by News headscarves, that they would families. Ward 7, which is supposed to she said, hearing shooting and
fenses but quickly spread to Corp, the parent company of be killed unless they went “They said everybody in the be for inmates convicted of fi- yelling in the background.
areas where political prisoners The Wall Street Journal. In Ar- back into the building, Ms. women’s ward is safe, but the nancial crimes. The inmates “He was moved from where
and dissidents are held, dabil, a town in northwest Daemi said, citing the ac- situation is tense,” Ms. Daemi set fire to a sewing workshop, the riots were,” she said. “We
prompting guards to bring in Iran, there were demonstra- counts told by the families. said. “Due to the large amount according to Iran’s state me- haven’t been able to get much
reinforcements and firefight- tions after a teachers’ associa- Guards fired tear gas and of tear gas used in the prison, dia, adding that some prison- more information.”
ers to put down the protests tion said a schoolgirl was threw “something like a gre- some of them have burning ers had blades and tried to es- —Aresu Eqbali
and extinguish the fire, ac- beaten to death after a pro-re- nade,” Ms. Daemi said she was eyes and shortness of breath.” cape the prison. contributed to this article.

WORLD WATCH
FRANCE MALTA
Thousands Rally Nation Marks 5 Years
Against Rising Prices Since Car Bomb Killing
Thousands of protesters, in- Malta on Sunday marked the
cluding France’s newly crowned fifth anniversary of the car
Nobel literature laureate, piled bomb slaying of investigative
into the streets of Paris on Sun- journalist Daphne Caruana Gali-
day, in a show of anger against zia with calls for justice, just
the bite of rising prices and two days after two key suspects
cranking up pressure on the gov- reversed course and pleaded
ernment of President Emmanuel guilty to murder on the first day
Macron. of their trial.
The march for wage in- Ms. Caruana Galizia’s rela-
creases and other demands was tives, Maltese activists and the
organized by left-wing oppo- Maltese president of the Euro-
nents of Mr. Macron and lit the pean Parliament gathered at the
fuse on what promises to be an site of the bombing on the small
uncomfortable week for his cen- Mediterranean island nation to
trist government. lay flowers. They were joined by
Transport strikes called for the sister of Italy’s crusading
Tuesday threaten to dovetail anti-Mafia investigator, Giovanni
with wage strikes that have al- Falcone, who was himself assas-
ready hobbled fuel refineries and sinated by the mob in a highway
MOHAMMED BADRA/SHUTTERSTOCK

depots, sparking chronic gasoline bombing in Sicily in 1992.

shortages that are fraying Ms. Caruana Galizia, who had
nerves among millions of work- written extensively about sus-
ers and other motorists depen- pected corruption in political and
dent on their vehicles, with giant business circles in the EU nation,
lines forming at gas stations. was killed Oct. 16, 2017, when a
Mr. Macron’s government is bomb placed under her car deto-
also on the defensive in Parlia- nated as she was driving near
ment, where it lost its majority her home. The murder shocked
in legislative elections in June. Throngs of demonstrators marched Sunday on the streets of Paris to protest inflation and call for wage increases. Europe and triggered angry pro-
That is making it much harder tests in Malta.
for his centrist alliance to imple- TURKEY miles northeast of Istanbul. said Mr. Erdogan. He said prose- provided by a union representa- A 2021 public inquiry report
ment his domestic agenda The explosion was caused by cutors had been assigned to in- tive and reviewed by The Wall found that the Maltese state “has
against strengthened opponents. Mine Disaster Poses firedamp, or flammable gases in vestigate the cause of the explo- Street Journal, says that the to bear responsibility” for the
In a speech to the Paris Challenge for Erdogan the mine, said Turkey’s Minister sion, which took place in a state- mine’s “production depth” murder because of the culture of
march, far-left leader Jean-Luc of Energy and Natural Resources owned mine. reached 300 meters in 2019. impunity that emanated from the
Mélenchon charged that Macron A deadly explosion at a state- Fatih Donmez. Turkish opposition figures and “This deepening increased the highest levels of government.
is “fried” and that his leadership owned coal mine near Turkey’s Turkish Interior Minister Sül- union officials raised accusations risk of severe accidents like sud- When the trial opened Friday
is plunging France into “chaos.” Black Sea Coast poses a new eyman Soylu said that 110 work- that the disaster was caused by a den gas eruption or firedamp ex- for brothers George Degiorgio
Organizers claimed that more challenge for the government of ers had been in the mine at the failure to uphold safety standards. plosion,” the report says. and Alfred Degiorgio, the alleged
than 140,000 protesters President Recep Tayyip Erdogan. time of the explosion. At least 11 Deniz Yavuzyilmaz, an opposi- Turkish Hard Coal Enterprises, hitmen reversed their pleas and
marched. Paris police said they The blast Friday evening of the rescued miners were tion lawmaker from a nearby the state-owned company that pleaded guilty to carrying out
didn’t have an immediate esti- killed at least 41 people while treated at hospitals, according to province, tweeted what ap- operates the mine, pushed back the murder and were sentenced
mate for the size of the crowd dozens of others were rescued, Fahrettin Altun, an aide to Mr. peared to be an excerpt of a on the accusations. “In all our to 40 years in prison apiece. The
that filled squares and streets. some after being trapped for Erdogan and the head of the 2019 report from Turkey’s Court establishments in our institution, sentencing brought to three the
Demonstrating at Mr. Mélen- hours underground, Turkish au- Turkish government’s communi- of Accounts, a government au- production is carried out in strict number of people serving time,
chon’s side was French author thorities said. cations directorate. diting agency, that described a accordance with the mining oc- after Vincent Muscat pleaded
Annie Ernaux, who won the No- Mr. Erdogan traveled Satur- “We see that many fatal di- heightened risk of accidents at cupational health and safety guilty last year for his part in
bel Prize for literature this year. day to the site of the disaster in sasters are taking place in our the mine. A copy of what ap- rules,” the company said. the murder.
—Associated Press the town of Amasra, about 180 mines. We cannot accept that,” peared to be the same report, —Jared Malsin —Associated Press
 HEARD ON THE STREET: HIGH STAKES FOR PELOTON B8

BUSINESS & FINANCE

© 2022 Dow Jones & Company. All Rights Reserved.

Last Week: S&P 3583.07 g 1.55%

* * * **

S&P FIN À 0.20% S&P IT g 3.23%

THE WALL STREET JOURNAL.

DJ TRANS À 0.21% WSJ $ IDX À 0.79% 2–YR. TREAS. yield 4.507% NIKKEI 27090.76 g 0.09%
Monday, October 17, 2022 | B1

See more at WSJ.com/Markets

Bear-Market Higher
S&P 500 performance, year to date
0% 24 times
J F M A M J J A S O
–5

–10 22 Rates Spur

Rally Seen in –25%
–15

–20
20
Turnover
At KFC
Wild Shifts
BY AKANE OTANI Investors had also grown in-
S&P 500 price/earnings,
next 12 months
18
BY HEATHER HADDON

Senior managers at Yum

AND KAREN LANGLEY creasingly pessimistic. The 16 Brands Inc.’s KFC are leaving
share of individual investors the chicken chain, with the
Stocks slumped most of last who believed stocks would be Oct. 13 company citing the effect of
week. Then they unexpectedly lower in six months rose last 15.7 times higher interest rates on pen-
14
surged Thursday, only to tum- week to 56%, hovering above sion plans.
ble again Friday. its long-term average for the The Louisville, Ky., brand’s
What is driving the wild 46th time in 47 weeks, accord- U.S. chief operating officer,
swings? ing to the American Associa- 12 chief financial officer and na-
Some investors say the mar- tion of Individual Investors. tional field operations director
2013 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 ’22
ket’s roller-coaster ride as of “Markets never move in one have all notified Yum Brands
late seems like a classic bear- direction day after day after Bearishness among individual investors S&P 500 stocks trading at Inc., KFC’s parent, that they
market rally: a case of beaten- day for weeks on end, whether 52-week lows will leave the chicken chain at
down markets temporarily it be a bull market or a bear 60% 200 the end of next month, accord-
bouncing higher, only to re- market,” said Nicholas Colas, Oct. 13 ing to company messages
sume selling off. co-founder of DataTrek Re- 50 viewed by The Wall Street
175
Stocks have often posted search. “The more volatility 150 Journal.
some of their biggest gains of you get on the downside, the 40 Yum in an internal message
the year amid their worst sell- more likely it is you get these to employees and franchisees
offs, like after the dot-com snapback rallies.” 30 100 attributed the departures to
bubble burst in 2000, in the In theory, once the market rising interest rates’ impact on
months before Lehman Broth- has fallen enough, it might 20 its company pension plan.
ers collapsed in 2008 and after seem like investors have priced Oct. 13 “Because of these interest
56% 50
the start of the Covid-19 pan- in all the bad news that could 10 rates, some associates across
demic in 2020. That is because possibly materialize. The S&P Yum! and its brands who qual-
sometimes one-sided bets 500’s 25% decline this year, for Weekly ify for pensions have decided
0 0
against the market can become instance, has put it on course to retire in 2022,” KFC wrote
so big that investors wager for its worst year since 2008 2020 ’21 ’22 Jan. 2022 June Oct. in one of the messages.
that prices have dropped too and is greater than the median Note: Data shows stocks at 52-week intraday lows A Yum spokesman said that
much—making it, in their eyes, peak-to-trough decline for Sources: FactSet (performance, P/E, stocks trading at 52-week lows); American Association of Individual Investors (bearishness) a small number of U.S. em-
a good time to start buying stocks in recessions going back ployees were enrolled in the
again. to 1949, according to Goldman slide further down the line. premium for stocks when they over the summer, only to tum- pension plan, which was
Some of that dynamic ap- Sachs Group Inc. In the case of Adding to the pressure: On can get higher returns from ble to new lows for the year closed to new participants in
peared to be in play last week. the selloff at the beginning of Friday, the yield on the bench- less-risky Treasurys. weeks after Federal Reserve 2001.
Markets had been hit by al- the pandemic, stocks eventu- mark 10-year Treasury note That helped the stock-mar- Chairman Jerome Powell Most of them have decided
most relentless selling heading ally held their ground after rose to 4.005%, its highest set- ket selloff resume. The Dow stressed at the Jackson Hole, to continue with the company
into their short-lived rally bottoming in March 2020. tle since October 2008 and up Jones Industrial Average fell Wyo., economic symposium rather than pursue retirement
Thursday. The S&P 500 had Yet many investors are wary from just 1.496% at the end of 1.3% Friday, erasing nearly half that the central bank’s job was this year, and retirements are
fallen in 16 of the previous 20 of the potential for more pain, last year. Higher interest rates of its gains from the previous nowhere near done. an expected part of business
trading days and had dropped especially because stocks have present another headwind to day, which marked its biggest Investors and analysts operations, he said.
to its lowest level in nearly made several attempts at a markets because investors of- one-day rally since November blame the market’s malaise on The size of lump-sum pay-
two years. bounceback this year, only to ten are less willing to pay a 2020. Stocks also ran higher Please turn to page B5 outs in corporate pension
plans depends on what are
known as Internal Revenue

Murdoch Plan Elevates Son, Bets on Scale

Service-set segment rates,
which are affected by bench-
mark interest rates.
As interest rates climb, it
Nearly a decade ago, Rupert Both companies could bene- erties. Those people also said iar with the situation has major voting stakes in can be financially beneficial
Murdoch decided it was a fit from being bigger, they say. the companies could join said. Robert Thomson, the each company—about 39% in for an employee later in their
sound strategy to split his me- Fox is a slimmer company af- forces in sports betting, a News Corp CEO, who has had a News Corp and 42% in Fox career to retire and take the
dia empire in two. Now, he ter selling off major entertain- growing sector where each good working relationship Corp. The 91-year-old media lump sum before potentially
ment assets to Walt Disney Co. side has interests. with Lachlan Murdoch, could baron now effectively controls escalating segment rates re-
By Joe Flint, years ago. News Corp has Mr. Murdoch’s succession retain a large role, they said. the trust, but when he dies his duce the payout.
Keach Hagey and struggled to lift its stock price, planning is also at a different There are several hurdles to four adult children, who each The Federal Reserve in late
Amol Sharma despite making strides in its point than several years ago, completing a deal. Special have votes, will have substan- September approved its third
publishing and digital real-es- when both his sons had major board committees at each tial say in the companies’ fu- consecutive interest-rate in-
wants to put it back together. tate units. roles at the companies. Now, company were recently created ture. There could be signifi- crease of 0.75 percentage
People familiar with Mr. The combined company his younger son, James Mur- to study the proposed transac- cant takeover interest in his point, and the U.S. central
Murdoch’s proposal to reunite would have more balance-sheet doch, is no longer involved in tion. They would have to agree media properties, deal makers bank is expected to keep lift-
Wall Street Journal parent strength to pursue acquisi- operations. Lachlan Murdoch, on financial terms, such as the in the industry say. A bigger ing rates to reduce inflation.
News Corp and Fox News par- tions, people close to the pro- who is co-chairman of News relative value of one company company could make any un- Accountants who work with
ent Fox Corp. point to a num- posed deal said. Some of them Corp and executive chairman to the other in a stock deal. A wanted takeover attempts corporate clients and employ-
ber of differences—within the said the companies would be and chief executive of Fox, majority of the non-Murdoch- more challenging. ees said that the impact of the
companies, industry and Mur- on stronger footing to compete would likely see a significant family shareholders also would Some media executives, in- benchmark interest rate’s
doch family—between now and for digital-ad dollars, using the expansion of his responsibili- have to approve a deal. cluding people close to Fox march higher this year is lead-
when they were split in 2013. scale of their combined prop- ties in a merger, people famil- Mr. Murdoch family’s trust Please turn to page B2 Please turn to page B2

Activist Starboard Exxon Taps Ex-GM Executive to Turn

Takes Stake in Splunk Its Carbon Unit Into a Money Maker
BY CARA LOMBARDO appearing at an activist-invest-
AND LAUREN THOMAS ing conference, the 13D Moni-
tor Active-Passive Investor BY COLLIN EATON
Activist investor Starboard Summit, Tuesday, and is ex-
Value LP has a sizable stake in pected to detail the fund’s Exxon Mobil Corp. hopes an
Splunk Inc. and plans to push plans then, the people said. outsider who most recently
the software maker to take ac- Splunk, founded in 2003, headed General Motors Co.’s
tion to boost its stock price, ac- makes software used by com- driverless-car unit can shake up
BRANDON THIBODEAUX FOR THE WALL STREET JOURNAL

cording to people familiar with panies’ information-technology its efforts to build a climate-
the matter. and security operations to friendly business unit.
Starboard’s stake is just un- monitor threats and analyze The oil giant recently tapped
der 5%, the people said. The data. Dan Ammann, a former invest-
hedge fund often targets soft- It has a market value of ment banker and longtime GM
ware companies that could $11.4 billion after the shares executive, to lead its fledgling
benefit from operational and dropped nearly 40% this year low-carbon business. Mr. Am-
margin improvements or be at- amid a broader selloff of tech- mann’s task is daunting: turn a
tractive takeover targets. nology stocks. In late March, new unit intended to cut carbon
Starboard founder and Chief its market value was nearly emissions into a profit center.
Executive Officer Jeff Smith is Please turn to page B2 The selection is an unusual
choice for the company, known
for a conservative culture that

INSIDE prizes hiring employees out of

school and typically promoting
senior leadership from within
Exxon plans to offer carbon capture services to other companies. Its Baytown, Texas, facility.

its ranks. Mr. Ammann, a New The venture, created in Feb- for years used technologies ide captured at a CF Industries
Zealand native, never worked ruary 2021 and dubbed Low such as carbon capture to cut manufacturing site in southeast-
for an oil company before join- Carbon Solutions, is focused on emissions from its operations, ern Louisiana. Exxon said it
ing Exxon this summer. He was technologies that complement but it plans to offer those as a would sequester up to 2 million
once a contender to become Exxon’s fossil-fuel business by service to other companies. “If metric tons of emissions annu-
GM’s chief executive and later cutting emissions associated you want to actually have a ally from 2025, pumping the
clashed with current CEO Mary with them. The technologies in- measurable impact to some- carbon underground at a site it
Barra, said people familiar with clude capturing carbon emis- thing as massive as climate owns in Vermilion Parish. Exxon
the matter. sions from industrial sites and change, you have to have a vi- didn’t disclose the financial
At Exxon, Mr. Ammann says storing them underground. The sion to build a business; that’s terms of the agreement.
he will attempt to run the new economics of many of the tech- actually really enormous,” Mr. Exxon established the low-
unit like a startup within a sto- nologies are unproven, and car- Ammann said. carbon unit last year as inves-
BUSINESS NEWS RETAILING ried oil-and-gas company that bon-capture projects have a The unit on Wednesday an- tors pressed the company to
Netflix and Tesla are Budget-friendly possesses vast resources and high failure rate globally be- nounced its first commercial gear up for a shift in global en-
engineering prowess. “In many cause of technological problems. deal under Mr. Ammann, an ergy demand toward cleaner re-
among the companies apparel chains draw ways, we’re starting with a A big part of the job is figur- agreement with ammonia pro- sources and months before it
spotlighting a busy price-sensitive blank sheet of paper,” Mr. Am- ing out a workable business ducer CF Industries Holdings lost a proxy battle to hedge
earnings week. B3 shoppers. B3 mann said, “but with this in- model for the unit, said Mr. Am- Inc. Exxon will transport and fund Engine No. 1. During one of
credible set of capabilities.” mann, 50 years old. Exxon has permanently store carbon diox- Please turn to page B2
B2 | Monday, October 17, 2022 * **** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE

These indexes cite notable references to most parent companies and businesspeople

Kroger Pauses Stock Buybacks

in today’s edition. Articles on regional page inserts aren’t cited in these indexes.

A Garmin.........................R5 R
AEye............................B4 Goldman Sachs .... B1, B3 Royal Caribbean..........B4
Albertsons.............B2,B3 H S BY KRISTIN BROUGHTON the transaction closes.
American Airlines.......B3 Hasbro.........................B3 Kroger had $19.28 billion in
Samsung Electronics..R8
American Express.......B3 Grocery giant Kroger Co. is net debt as of Aug. 13, com-
I Semtech......................R9
Apollo Global .............. B4 Silicon Laboratories....R9 pausing share buybacks ahead pared with $18.98 billion a year
Apple......................R4,R5 International Business
Machines...................B3 Snap.............................B3 of its planned acquisition of ri- earlier, according to S&P Global
ASML Holding.............A4
J
Starboard Value..........B1 val Albertsons Cos. Inc., aiming Market Intelligence, a data pro-
AST SpaceMobile........R5
T to use the additional cash to re- vider.
B Johnson & Johnson....B3
duce its debt as it closes one of “In this current market,
Taiwan Semiconductor
Bank of America.........B5 K Manufacturing..........A4 the biggest deals in U.S. gro- given rising rates and a weaker

PATRICK T. FALLON/REUTERS
C Kroger .................... B2,B3 Tekkorp Capital...........B2 cery-industry history. economic cycle, investors are a
Cantor Fitzgerald........B4 M T-Mobile.................R4,R5 The blockbuster transaction bit more cautious around com-
CNX Resources ........... B4 Meta Platforms..........A1 U comes amid a slowdown in deal panies with high debt levels,”
D Microsoft .................. A12 Union Pacific...............B3 making, economic uncertainty said Rupesh Parikh, an analyst
Delta Air Lines ........... B3 N United Airlines............B3 and concerns among investors at investment firm Oppen-
E
UnitedHealth Group....B8 about companies that carry heimer & Co Inc., referring to
Naver...........................R8
V high levels of debt. Financing the additional debt the com-
Emera..........................A3 NTT..............................R8
Verizon Communications costs for companies across the The deal is one of the biggest in grocery-industry history. pany is taking on to fund the
Exxon Mobil................B1 P B3 credit spectrum have been ris- transaction. Kroger’s shares fell
F Peloton Interactive.....B8 Y ing in recent months since the data provider. nificant amount of cash for 7% on Friday, closing at $43.16.
Flutter EntertainmentB2 PepsiCo........................B3 Federal Reserve started raising Kroger will temporarily when we close the transaction,” Halting buybacks will free
Yangtze Memory
Ford Motor.............B2,B4 Q Technologies.............A4 interest rates to combat infla- pause buybacks with the goal Chief Financial Officer Gary up cash on the balance sheet
G Qualcomm...................R9 Yum Brands.................B1 tion. of giving priority to debt reduc- Millerchip said Friday during that the company can use to
Cincinnati-based Kroger said tion after the transaction an analyst call. The company deleverage, in addition to cash
Friday that it will pay for the closes, the company said. didn’t respond to a request to from the combined earnings of
INDEX TO PEOPLE $24.6 billion deal with cash and
proceeds from a new debt fi-
The company repurchased
$309 million in shares during
make Mr. Millerchip available
for an interview.
the two companies and cost
savings, analysts said. The com-
nancing. The company secured the quarter ended Aug. 13 and Kroger aims to achieve a ra- panies both have stores in loca-
A-G McCarthy, Barry..........B8 Sang-chul, Kang..........R8 a 364-day, $17.4 billion bridge said in September its board au- tio of net debt to adjusted tions including Southern Cali-
Ammann, Dan.............B1 Millerchip, Gary .......... B2 Smith, Jeff..................B1 loan from Citigroup Inc. and thorized a new $1 billion repur- earnings before interest, taxes fornia, Washington state, Texas
Collins, Archie.............A3 Murdoch, James ......... B1 Steele, Gary................B2
Murdoch, Lachlan ....... B1 Wells Fargo & Co., it said in a chase program. and depreciation of 2.3 times to and Washington, D.C., and said
Griffin, Jeff.................B2
Murdoch, Rupert.........B1
T securities filing. The loan is the Kroger had $1.1 billion in 2.5 times within 18 to 24 Friday they expect to sell over-
J-K Titus, Wayne .............. B2
P second-largest global bridge cash and temporary invest- months after the deal closes, lapping stores to help win regu-
Johnson, Matt ............ R9 Tomasi, Pablo..............R8
Kim, Woojune.............R8 Parikh, Rupesh............B2 loan this year, trailing Broad- ments on its balance sheet as of which is expected in early latory approval for the transac-
R V com Inc.’s $32 billion loan as Aug. 13, down from $1.8 billion 2024. That figure stood at 1.63 tion. Moody’s Corp. affirmed
M Vornholt, Trip..............B2
Maheswaran, Mohan..R9
Rothgery, Monica........B2 part of its deal announced in at the beginning of the year. times as of Aug. 13. The com- Kroger’s investment-grade
Malladi, Durga ............ R9
Z May to buy VMware Inc., ac- “We would expect, as we’ve pany on Friday didn’t say what credit rating but changed its
Mazawey, Lou.............B2 S Zuckerberg, Mark.......A1 cording to Dealogic, a financial paused buybacks, to have a sig- its leverage ratio will be after outlook to negative from stable.

Managers months about whether to re-

tire now as the auto maker
disclosed the revised segment
Activist
Leave rates to beneficiaries. Most of
those individuals decided to
take the lump sum this year,
Has Stake
Yum’s KFC he said.
A Ford spokeswoman said
the company in a notice last
In Splunk
month told pension holders
Continued from page B1 about the interest-rate in- Continued from page B1
ing some company veterans to creases and how they could af- $24 billion and at the peak in
move up their retirements, fect lump-sum cash-outs. Po- September 2020 was above
cashing out traditional pen- tential retirees have until the $35 billion as the pandemic
sion benefits sooner than end of November to decide if stoked demand for cloud com-
planned rather than risk their they want to retire by Dec. 1 puting. Earlier this year, when
dropping in value due to and cash out their pensions Splunk was without a chief ex-
higher rates. before the IRS segment rates ecutive and its shares had
At Yum, those retiring in- affect their holdings, she said. plummeted following a series
clude KFC Chief Operating Of- In one scenario, Mr. Titus of disappointing earnings re-
ANGUS MORDANT/BLOOMBERG NEWS

ficer Monica Rothgery, who said, a 60-year-old Ford ports, it attracted takeover in-
worked at the company for 30 worker was trying to decide terest from at least one strate-
years across its Taco Bell, whether to retire early and gic suitor. Networking giant
Pizza Hut and KFC brands. take a lump-sum pension pay- Cisco Systems Inc. made a
KFC CFO Trip Vornholt, ment, given the rising IRS takeover offer valued at more
who the company said would rates. Her lump-sum pension than $20 billion for Splunk,
retire on Nov. 30, has worked payment, currently valued at The Wall Street Journal re-
at Yum since 1997 and helped $1 million, would drop to ported in February, noting that
the chicken brand with a U.S. around $700,000 if she waited the companies weren’t in ac-
turnaround, the company said As interest rates climb, it can be financially beneficial for an employee later in their career to retire. until after Dec. 1 to retire and tive talks at the time. There
in one of the messages. had the higher IRS segment isn’t a sign that has changed.
Also set to retire is Jeff that the KFC leadership team August. monthly segment rate for pen- rate applied, he said. Splunk named Gary Steele
Griffin, KFC’s director of na- will continue to deliver on the Many traditional pension sions based on corporate bond “They were enjoying their as its CEO in March after for-
tional field operations, who strategic vision to accelerate plans allow beneficiaries to re- yields, which are affected by careers, but this forced them mer Chief Executive Doug Mer-
the company said has worked the growth of the brand in the ceive monthly payments upon rising benchmark rates. to take a look at retiring ritt stepped down from the role
for the brand for 34 years. U.S.” retirement until their death, or In August, the IRS’s first- sooner,” Mr. Titus said. He late last year. Mr. Steele is the
“No one in KFC U.S. knows KFC, the second-biggest a lump sum upon exiting the tier segment rate climbed to said he expects segment rates founding CEO of Proofpoint
more about our operations and chicken chain by U.S. sales be- company. 3.79% for the first five years of will continue to increase, and Inc., an information-security
fried chicken than he does,” hind Chick-fil-A Inc., got a Companies take into ac- projected retirement cash pension holders might not be company that was acquired by
one of the messages said. boost from customers loading count various factors to deter- flow, up from 0.66% in August able to benefit from lower lev- software-investment firm
KFC said it was filling Mr. up on its family chicken buck- mine a lump sum, including an 2021. The higher the IRS re- els for some time. Thoma Bravo in 2021.
Griffin’s position with two cur- ets after the Covid-19 pan- individual’s age and rates per- vises its segment rates For many companies, early The same week as Mr.
rent leaders, as one executive demic hit. taining to pensions set by the monthly, the smaller a lump- retirements mean losing expe- Steele’s announcement, Hell-
couldn’t replicate the breadth The brand’s U.S. same-store IRS. sum pension payout to a re- rienced employees, as well as man & Friedman LLC disclosed
of his operations knowledge. sales fell 7% in the quarter The IRS’s calculations try to tiree. the challenge of managing a 7.5% stake in the software
The three executives didn’t ended June 30 compared with account for the total value of a Wayne Titus, managing di- large cash-outs in corporate maker, in a bet on the company
respond to requests for com- last year’s period, though, as traditional pension at one rector at Michigan-based Sa- pension plans, said Lou and him. That came after Silver
ment. “Yum has a deep bench federal stimulus programs point in time by calculating vant Wealth Management, said Mazawey, a Washington-based Lake made a $1 billion invest-
of experienced leaders across wound down and excitement how much it would be worth he counseled about half a principal at Groom Law Group ment in the company last year
the system,” the Yum spokes- from a 2021 chicken-sandwich today given an assumed rate dozen longtime employees at who advises companies on to help support a transforma-
man said. “We’re confident launch leveled off, Yum said in of return. The IRS resets its Ford Motor Co. in recent benefits. tion of the business.

Murdoch deal said the companies were

together once before and can
navigate a reunion.
being cleaved from Fox News
and entertainment assets, ex-
ecutives at the companies said
The combined assets of
News Corp and Fox could pres-
ent a stronger offering to ad-
“The Best Solution to Hearing What People Say on TV” Newsweek

Proposal Fox News would bring its

robust business to the mix but
also legal risks for the com-
each side would benefit from
an increased focus on its busi-
ness. Backers of a deal now are
vertisers in a marketplace in-
creasingly dominated by large
tech players, according to peo- SAVE REG $24999

Boosts Son $
50 SALE $19999
bined company. It faces defa- making a different case. ple familiar with the matter.
mation lawsuits by voting-ma- One area of potential coop- News Corp and its subsid-
chine companies—a $2.7 eration between Fox and News iaries have been at the fore-
billion claim from Smartmatic Corp is sports betting, which front of striking content deals
Continued from page B1 USA Corp. and a $1.6 billion many media companies are ea- with large tech platforms, in-
and News Corp, said they don’t suit from Dominion Voting ger to tap into. Fox has a part- cluding Alphabet Inc.’s Google,
see major strategic benefits of Systems—stemming from re- nership with Flutter Enter- Apple Inc. and Meta Platforms
merging the two companies marks Fox News anchors and tainment PLC’s Stars Group on Inc., formerly known as Face-
and were perplexed at the guests made alleging wide- Fox Bet, an online and mobile book. The additional leverage
move for such a deal now. spread election fraud in the betting platform. from Fox’s sports and news as-
Some of the people see po- 2020 presidential election. Fox News Corp this year en- sets could help with future ne-
tential risks in mashing to- has denied wrongdoing, de- tered into a partnership with gotiations, though some of
gether the vastly different fending itself on First Amend- the Las Vegas digital sports- these programs, such as the
journalistic brands of Fox ment grounds, and said it was gambling investment firm Tek- Facebook News tab, seem un-
News and News Corp, whose covering newsworthy matters. korp Capital for an online likely to continue at current
Dow Jones unit publishes the When News Corp split up in gambling platform in Austra- levels amid growing regulatory
Journal. Others close to the 2013, with publishing assets lia. pressure around the globe.

Can’t Hear
Exxon Taps lifespan of its oil-and-gas assets
by reducing their carbon foot-
print. Others accuse Exxon of
into GM, according to people fa-
miliar with the matter. That dis-
agreement contributed to his
work as expected or the proj-
ects proved too expensive to op-
erate, according to a 2020 study Voices On TV?
Ex-Auto greenwashing—only paying lip-
service to climate-change solu-
tions to protect its public image.
departure from GM in Decem-
ber 2021, the people said. Mr.
Ammann declined to comment.
by researchers at Canada’s Car-
leton University, the University
of California, San Diego, and
The AccuVoice® AV157 Speaker
uses patented hearing aid technology
to create 12 levels of dialogue clarity.
Executive Mr. Ammann rejects allega-
tions of greenwashing and said
he believes he and his team
At Exxon, Mr. Ammann said
he is trying to get his employ-
ees comfortable reaching out to
elsewhere.
Exxon has begun to build a
backlog of projects similar to
Flat-screen TVs use tiny speakers with tinny sound.So many
people have to use closed-captioning to watch a movie or
have the support of Exxon CEO other companies despite not its CF Industries agreement sporting event. Our patented hearing aid technology lifts
Continued from page B1 Darren Woods and other lead- knowing exactly how Exxon’s and expects more projects to voices out of the soundtrack and clarifies them. The result
the most expensive activist ers. “I wouldn’t be here if I capabilities can help potential become economically viable as is remarkable. The AV157 has 12 levels of voice boost
campaigns ever, the fund ar- didn’t think we were extremely customers curb emissions. Tak- technology improves and costs – in case you need extra clarity. Only 17" wide, it fits just
gued Exxon didn’t have a viable serious about what we’re do- ing that step is what brought fall over time, Mr. Ammann about anywhere. Hookup is simple – one connecting cord.
business plan for the transition. ing,” he said. about the agreement with CF said.
Exxon has vowed to spend As the chief executive of au- Industries and is what it will “You’re going to go from an
$15 billion through 2027 curb- tonomous-vehicle company take to generate more business, environment where the costs
ing its emissions and helping Cruise, Mr. Ammann and Ms. he said. are pretty high and the policy is Great Sound. Made Simple.
other companies do the same. It Barra disagreed about the direc- Carbon-capture projects have kind of nascent, where only a
has said its low-carbon invest- tion of Cruise, with Mr. Am- a poor commercial record. More very small slice of projects 866-367-9869
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marily serve to prolong the in-house longer and integrate it cause the technology didn’t technology and lower costs.”
 THE WALL STREET JOURNAL. NY Monday, October 17, 2022 | B3

BUSINESS NEWS

Tesla, Netflix Lead Busy Earnings Week

BY KATHRYN HARDISON Companies such as Johnson The streaming giant reported biggest deals in the history of
& Johnson, which reports on back-to-back quarters of sub- the U.S. grocery industry.
Procter & Gamble Co., Net- Tuesday, and Procter & Gam- scriber losses, but the company United and American will
flix Inc. and Tesla Inc. highlight ble, reporting Wednesday, will in July forecast adding a million give a glimpse of the pace of
a busy coming week of earnings provide glimpses into how con- new users in its third quarter. travel demand in recent months,
as persistent inflation and sumers are handling higher Netflix is preparing to launch an as investors wait on a fuller re-
climbing interest rates stoke prices and whether they are ad-supported tier as a way to covery of business travel. Delta
talk of a recession. changing purchasing patterns. lure customers and improve its Air Lines Inc. last week said the

HELEN SLOAN/SMPSP/NETFLIX
Consumer healthcare giant Hasbro Inc. will post its average revenue per user. outlook for travel remains
Johnson & Johnson, tech bell- quarterly results on Tuesday, Tesla and IBM will report healthy heading into the winter
wether International Business with investors hoping to hear earnings Wednesday. Tesla’s re- holidays and U.S. travelers are
Machines Corp. and the invest- about how toy trends are shap- sults come as the stock faces venturing to Europe despite
ment bank Goldman Sachs ing up ahead of the holiday sea- pressure after the company re- travel disruptions this summer.
Group Inc. are also slated to re- son. PepsiCo Inc. this past week ported vehicle deliveries that “As we look into the fourth
port their latest quarterly re- indicated that demand is hold- fell short of Wall Street esti- quarter, there’s nothing that
ports. Investors will hear from ing up well for its brands, which mates, and as founder and CEO gives me pause to think that
airlines, including United Air- Netflix is scheduled to post its latest results on Tuesday. include Doritos chips and its Elon Musk has renewed plans to this momentum isn’t going to
lines Holdings Inc. and Ameri- namesake sodas, even as prices buy Twitter Inc. for $44 billion. continue,” CEO Ed Bastian said.
can Airlines Group Inc., rail- Express Co. and Verizon Com- and other central banks have are up 17% on average from last Earnings for the S&P 500 Other companies slated to re-
roads such as Union Pacific munications Inc., are on tap to been aggressively raising inter- year. It raised prices in recent companies are on track to rise port include Bank of America
Corp., and social-media com- report. est rates to slow price increases. weeks again and is monitoring 1.6% this period, while revenue Corp. and Charles Schwab Corp.
pany Snap Inc. The latest earnings round Large banks last week noted in how consumers respond. “Our is projected to grow 8.5%, Fact- on Monday, private-equity firm
About 66 companies in the comes as investors weigh a quarterly updates that the eco- brands are being stretched to Set said. Blackstone Inc. on Thursday,
S&P 500 companies are slated number of recent economic in- nomic picture remains uncer- higher price points, and con- Supermarket operator and American Express on Fri-
to report earnings this week, ac- dicators, from flat retail spend- tain, with indications consumers sumers are following us,” CEO Albertsons Cos. Inc. will report day. Telecommunications com-
cording to FactSet. Eight mem- ing in September to inflation are spending at a healthy clip Ramon Laguarta said last week. its earnings Tuesday, on the panies AT&T Inc. will report its
bers of the Dow Jones Industrial hitting a new four-decade high and businesses and households On Tuesday, Netflix is sched- heels of Kroger Co.’s plans to quarterly results on Thursday,
Average, including American in the U.S. The Federal Reserve remain in good shape. uled to post its latest results. buy the company in one of the followed by Verizon on Friday.

Total price for a four-item shopping basket across retailers*

Primark

Shein

H&M

Forever 21

Old Navy

Uniqlo

Express

WH E N O PP OR TU N IT Y S TR I K E S
Gap
$0 $25 $50 $75 $100 $125 $150

*Items include: women's camisole top and skinny jeans; men's graphic T-shirt and sweatpants
Note: Pricing data excludes discounts
Source: GlobalData PLC
TAKE AC TIO N
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Apparel Shoppers across all major asset classes, CME Group can help
you seize opportunities at precisely the right moment.
BY SUZANNE KAPNER Primark, owned by Associ-
ated British Foods PLC, plans to
Let the battle for the $5 T- have 60 U.S. stores by October VISIT CMEGROUP.COM/OPPORTUNITY
shirt begin. 2026, up from 13 now. Shein,
Primark, Shein and other the Chinese online retailer
budget-friendly retailers are known for its cheap and trendy
winning over U.S. shoppers with apparel, is making a bigger push
cut-price clothes as high infla- in the U.S. by opening new dis-
tion has made many people tribution centers here, although
more price-sensitive. it has recently experienced a
GU (pronounced “G” “U”) backlash on social media over
earlier this month opened its the harmful environmental ef-
first U.S. store, selling such fects of fast fashion.
items as $30 sweaters and $60 After emerging from bank-
puffer coats. Owned by Japan’s ruptcy in 2020 with new own-
Fast Retailing Co., GU offers ers, low-price retailer Forever 21
clothing and accessories about said this past week that it plans
20% cheaper than those sold by to open 14 new U.S. stores
retail-chain sibling Uniqlo. through June 2023. And shop-
“This is the perfect time for pers continue to flock to fast-
GU to enter the U.S. because of fashion chains Zara and H&M.
the value we offer,” GU Chief Ex- Melissa Sheer of Summit,
ecutive Osamu Yunoki said at N.J., used to buy her T-shirts at
the new store in Manhattan’s Gap, but recently switched to
SoHo neighborhood. Shein. “When you can get a T-
This new generation of low- shirt for $5 at Shein, why would
price retailers is aiming to shake I pay $24.99 at Gap?” said the
up the U.S. apparel market the 49-year-old owner of a public-
same way that such fast-fashion relations company.
chains as H&M and Zara did a Ms. Sheer said even though
generation ago. Shein, Primark the Shein shirts are of lower
and GU offer low prices every quality, made of a polyester
day rather than requiring con- blend rather than the cotton
sumers to wait for sales and dis- and modal used by the Gap,
counts. they hold up well enough. “With
Retailers selling low-price inflation, price is taking prece-
apparel—Walmart Inc., T.J. dence over quality for me right
Maxx and Ross Stores Inc., for now,” she said.
example—have been winning An analysis by Neil Saunders,
customers from full-priced a GlobalData managing director,
chains in recent years. Value found that Primark had the low-
chains captured 22.4% of U.S. est prices on a basket of similar
apparel spending in 2021, up goods, followed by Shein, H&M
from 19.1% in 2014, according to and Forever 21. Old Navy, Gap
research firm GlobalData PLC. and Uniqlo were more expen-
The land grab is raising the sive, sometimes by a multiple as
stakes for such retailers as Gap high as four times. The basket
Inc. and Macy’s as they grapple in the analysis included a
with uncertainty around con- women’s camisole top and
sumer spending. skinny jeans and a men’s
Spending by U.S. shoppers graphic T-shirt and sweatpants.
slowed in September from a Founded in 2006, GU has
month earlier as rising prices about 450 stores, mainly in
made everything from food to Japan and elsewhere in Asia.
electronic devices less afford- The retailer’s lease in New York
able for them. Consumer prices, City’s SoHo neighborhood is for
excluding those for food and en- one year, Mr. Yunoki said. GU is
ergy, grew at the fastest annual hunting for another New York
rate in four decades. Apparel location that would be about tri-
prices last month were up 5.5% ple the size of the 2,900-square-
from a year ago. foot SoHo store he added.
LUCAS JACKSON/REUTERS

Derivatives are not suitable for all investors and involve the risk of losing more than the amount originally
deposited and profit you might have made. This communication is not a recommendation or offer to
buy, sell or retain any specific investment or service. Copyright ©2021 CME Group Inc. All rights reserved.

Sellers of cut-price clothing such as Primark are gaining ground.

B4 | Monday, October 17, 2022 * * THE WALL STREET JOURNAL.

BUSINESS & FINANCE

SPAC Sponsors Win Big

THE TICKER
MARKET EVENTS COMING THIS WEEK

Money managers who AEye share price has SPACs are essentially pub- port quarterly holdings.
fallen since it completed licly listed pools of cash in For sponsors that sold
ran the companies a SPAC merger search of private companies to shares of companies that rose
profited as stock $10
merge with—providing an al- in value, gains were particu-
ternative to an IPO. The spon- larly lucrative. Apollo Global
investors faced losses sors who form the SPAC—pri- Management Inc. put $14 mil-
8 vate-equity managers, hedge lion from an Apollo-run fund
BY ELIOT BROWN funds and the occasional ce- into a company that merged

SUN YILEI/REUTERS
lebrity—commit an average of with the electric-vehicle com-
Since AEye Inc. went public 6 5% of this initial funding and pany Fisker Inc. in 2020. Apollo
by merging with a special-pur- raise the rest from stock in- sold at least $64 million of
pose acquisition company in 4 vestors, according to the re- shares in the first quarter of
August 2021, shareholders searchers. 2021, and disposed of its re-
have had a rough go. The la- When the SPAC sponsor maining 12.9 million shares Tesla is expected to report per-share earnings of $1.01 Wednesday.
ser-technology company’s 2 completes a merger, the spon- some time in the second quar-
stock is down over 90% in the sor gets a bonus typically ter of 2021, records show. Monday EIA status report Expected 235,000
midst of missed revenue pro- 0 Weekly equivalent to 20% of the value Based on Fisker’s lowest share Empire Manufacturing
Previous change in stocks in
Leading indicators
millions of barrels
jections and the rout in of the SPAC. Many investors price in the second quarter, Sept., previous -1.5 Aug., previous
Sept. 2021 ’22 Crude-oil stocks up 9.9
growth stocks. and academics have criticized Apollo would have garnered Oct., expected -5.0 down 0.3%
Gasoline stocks up 2.0
The company that ran the Source: FactSet this bonus—known as a pro- about $140 million from those Earnings expected Sept., expected
Distillates down 4.9
SPAC fared better. The finan- mote—as overly generous sales. Estimate/Year Ago down 0.3%
Housing Starts
cial-services firm Cantor $54 million, giving them aver- given that it can lead sponsors The profits came as Fisker’s Bank of America Philadelphia Fed
Aug., previous 1.575 mil.
Fitzgerald LP invested less age annualized returns of 110% to profit even if the SPAC’s in- share more than doubled to 0.78/0.85 survey
Bank of New York Sept., expected
than $10 million in the deal, on their initial investment in vestors are down over 90% in above $20 soon after the Sept., previous -9.9
Mellon 1.10/1.04 1.480 mil.
but reaped at least $35 million the SPACs, the authors found. many cases. Regulators from merger. Fisker’s share price Oct., expected -5.8
Charles Schwab Mort. bankers indexes
in fees related to the listing, “There is no question that the Securities and Exchange has since fallen to less than $7 Earnings expected
1.05/0.84 Purch., previous
share sales and the value of the sponsors had great returns Commission called SPAC spon- from its $10 initial merger Estimate/Year Ago
Equity LifeStyle down 2.0%
remaining holdings, securities at the same time that public sor compensation costly and price. Had Apollo held its AT&T 0.61/0.66
Properties 0.37/0.38 Refinan., prev.
filings show. market investors had very drafted rules to make it more shares, it would be sitting on a Blackstone 0.98/1.28
down 2.0%
A Cantor spokeswoman negative returns,” said Jay transparent to investors. gain of more than $70 million. Tuesday Earnings expected
Danaher 2.26/2.39
didn’t respond to requests for Ritter, a finance professor at Backers of the promote Cantor Fitzgerald’s arrange- Capacity utilization Estimate/Year Ago Marsh & McLennan
comment. An AEye spokes- the University of Florida who structure say it allows spon- ment with AEye and other Aug., previous 80.0% Abbott Laboratories 1.15/1.08
woman declined to comment. wrote the paper along with sors to be compensated to SPACs was more complex than Sept., expected 80.0% 0.95/1.40 Philip Morris Int’l
As the air has come out of Minmo Gahng at the Univer- take the risk to launch a SPAC, that of the typical sponsor. Industrial production Elevance Health 1.35/1.58
the SPAC boom of recent years, sity of Florida and Donghang given that sponsors get little if Cantor, which has an invest- Aug., previous 7.15/6.79 Union Pacific 3.07/2.57
a clear winner emerged: the Zhang at the University of they don’t complete a merger. ment-banking arm, served as down 0.2% IBM 1.79/2.41
money managers who oversaw South Carolina. Share prices of The rate, they say, is set by the underwriter of the initial Sept., expected up 0.1% Procter & Gamble Friday
the blank-check companies and more than one-third of the 339 the market, and it has fallen IPO of the SPAC, generating Earnings expected 1.55/1.61 Earnings expected
who kept making profits even SPACs that merged with pri- some as competition has about $4 million in fees, secu- Estimate/Year Ago
Prologis 1.29/0.97 Estimate/Year Ago
in the face of significant losses vate companies since 2020 are grown. rities filings show. Then, when Goldman Sachs American Express
Tesla 1.01/0.62
to stock investors. down more than 80%, accord- The promote “is fully and the SPAC merged with AEye, it 7.75/14.93 2.40/2.27
Stock-market investors in ing to the data-tracking firm fairly disclosed and has been received $25 million more in Intuitive Surgical Thursday HCA Healthcare
SPACs that merged with pri- SPAC Research. for decades,” directors of the fees for marketing, merger ad- 1.12/1.19 3.88/4.57
Johnson & Johnson EIA report: natural-gas
vate companies since 2015 lost The authors’ data doesn’t in- SPAC Association trade group visory and acting as the place- Previous change in stocks in Huntington Bancshares
2.48/2.60 0.38/0.22
an average 37% of their invest- clude subsequent investments wrote in a comment to the ment agent for a slug of addi- billions of cubic feet
Lockheed Martin up 125 Regions Financial
ment a year after the merger that sponsors often make in the SEC in June. “If investors tional investment in the deal, 6.66/2.21
through the end of September, companies when they merge. want to support a sponsor and securities filings show. It dis- Existing home sales 0.59/0.66
Netflix 2.14/3.19
according to the authors of a That means that for some pay them 50%, it’s their right.” posed of one million shares in Aug., previous 4.80 mil. Schlumberger
Truist Financial
forthcoming paper on SPACs poorly performing stocks, the Precise sponsor returns can the first two quarters of 2022. Sept., expected 4.70 mil. 0.55/0.36
1.19/1.20
in the Review of Financial sponsors have worse overall re- be difficult to track. Sponsors If it had sold at the lowest Initial jobless claims Verizon Communications
Studies, an academic jour- turns than for the figures ex- usually only report individual share price during those quar-
Wednesday Previous 228,000 1.29/1.41
nal. At the same time, SPAC amined in the study. sales if they serve on merged ters, it would have brought in Building Permits
* FactSet Estimates earnings-per-share estimates don’t in-
managers, known as sponsors, The mismatch of fortunes is companies’ boards or hold $2.3 million. Cantor held $6.5 Aug., previous 1.517 mil. clude extraordinary items (Losses in parentheses) u Adjusted
turned an average investment largely due to the way SPAC large stakes. Hedge-fund man- million in AEye stock as of Sept., expected for stock split Note: Forecasts are from Dow Jones weekly
of about $8 million into about sponsors are compensated. agers that run SPACs also re- June 30. 1.540 mil. survey of economists

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The Marketplace
To advertise: 800-366-3975 or WSJ.com/classifieds
Junk-Rated Firms Seek
CLASS ACTION Right Time to Tap Investors
BY NINA TRENTMANN
LEGAL NOTICE
CNX Resources Corp. was
UNITED STATES DISTRICT COURT IF YOU ARE A MEMBER OF THE SETTLEMENT
initially planning to raise funds
EASTERN DISTRICT OF MICHIGAN CLASS, YOUR RIGHTS WILL BE AFFECTED
SOUTHERN DIVISION BY THE PROPOSED SETTLEMENT AND in the bond market in January,
PALM TRAN, INC. AMALGAMATED TRANSIT YOU MAY BE ENTITLED TO A MONETARY but the natural-gas firm decided
UNION LOCAL 1577 PENSION PLAN, Individually PAYMENT. If you have not yet received a full Notice to wait until its earnings were
and On Behalf of All Others Similarly Situated, Plaintiff, and Claim Form, you may obtain copies of these out at the end of the month—
documents by visiting the website for the Settlement,
JUSTIN MERRIMAN/BLOOMBERG NEWS

v. CREDIT ACCEPTANCE CORPORATION, BRETT A.

www.CreditAcceptanceSecuritiesSettlement.com, or by
only to find that Russia’s inva-
ROBERTS, and KENNETH S. BOOTH, Defendants. sion of Ukraine in late February
contacting the Claims Administrator at:
Case No. 20-cv-12698 effectively closed the market for
Honorable Linda V. Parker Credit Acceptance Securities Litigation
c/o JND Legal Administration speculative-rated companies.
SUMMARY NOTICE OF PENDENCY AND P.O. Box 91300 The Canonsburg, Pa., com-
PROPOSED SETTLEMENT OF CLASS ACTION AND
MOTION FOR ATTORNEYS’ FEES AND EXPENSES
Seattle, WA 98111 pany, which is rated below in-
www.CreditAcceptanceSecuritiesSettlement.com vestment grade, waited until
(877) 654-1993
To: All persons and entities that purchased or otherwise August, and then until Septem-
acquired the publicly traded common stock of Credit Inquiries, other than requests for information about the ber before it pulled the trigger,
Acceptance Corporation during the period from status of a claim, may also be made to Lead Counsel:
May 4, 2018 through August 28, 2020, inclusive, and
raising $500 million at 7.375%
LABATON SUCHAROW LLP that will come due in 2031. CNX CNX Resources waited months to raise funds in the bond market.
were damaged thereby (the “Settlement Class”) Michael P. Canty, Esq.
YOU ARE HEREBY NOTIFIED, pursuant to Rule 23 of 140 Broadway
is using the proceeds to pay
the Federal Rules of Civil Procedure and an Order of the New York, NY 10005 back $350 million in 2027 bonds Bond and leveraged loan sales tive-grade rated businesses in-
United States District Court for the Eastern District of [email protected] that carry a slightly lower cou- by high-yield companies cluding auto maker Ford Motor
Michigan, that Lead Plaintiffs Ontario Provincial Council (888) 219-6877 pon of 7.25%. “We timed it just through Oct. 14 of each year Co. and cruise operator Royal
of Carpenters’ Pension Trust Fund and Millwright Regional about as well as it could be Caribbean Cruises Ltd. secured
If you are a Settlement Class Member, to be eligible to share
Council of Ontario Pension Trust Fund (“Lead Plaintiffs”),
on behalf of themselves and all members of the Settlement
in the distribution of the Net Settlement Fund, you must timed,” said Alan Shepard, the Bonds Leveraged Loans new funding in recent weeks,
submit a Claim Form postmarked or submitted online no company’s chief financial officer. according to Refinitiv. Dearborn,
Class, and Defendants Credit Acceptance Corporation
later than December 2, 2022. If you are a Settlement Class
(“Credit Acceptance”), Brett A. Roberts and Kenneth S.
Member and do not timely submit a valid Claim Form, you “We’re constantly looking at Mich.-based Ford borrowed
Booth (collectively, the “Individual Defendants” and, with refinancing to keep our maturi- $600 million from investors for
will not be eligible to share in the distribution of the Net $750 billion
Credit Acceptance, “Defendants” and, together with Lead
Plaintiffs, the “Parties”) have reached a proposed settlement
Settlement Fund, but you will nevertheless be bound by all ties out as far as possible be- 6.5% that will mature in 2062,
judgments or orders entered by the Court, whether favorable cause the high-yield market is and agreed to a $1.75 billion
of the claims in the above-captioned class action (the
or unfavorable.
“Action”) and related claims in the amount of $12,000,000 so fickle,” he added. “It can 500 green bond, which has a coupon
(the “Settlement”). If you are a Settlement Class Member and wish to exclude close down for long periods of rate of 6.1% and matures in
yourself from the Settlement Class, you must submit
A hearing will be held before the Honorable Linda V.
a written request for exclusion in accordance with the time, so if you’re not careful, 2032. The company declined to
Parker on December 7, 2022, at 1:00 p.m. via Zoom video you get caught out.” comment.
instructions set forth in the Notice so that it is received no 250
conference from Courtroom 206 of the United States District
Court for the Eastern District of Michigan, Theodore Levin
later than November 16, 2022. If you properly exclude Executives at junk-rated com- Royal Caribbean, based in
U.S. Courthouse, 231 W. Lafayette Blvd., Detroit, MI,
yourself from the Settlement Class, you will not be bound panies are facing sharply higher Miami, recently raised $2 billion
by any judgments or orders entered by the Court, whether
48226 (the “Settlement Hearing”) to determine whether financing costs as the Federal 0 in funds to redeem debt that
favorable or unfavorable, and you will not be eligible to
the Court should: (i) approve the proposed Settlement as
share in the distribution of the Net Settlement Fund. Reserve continues to raise rates, would have come due in 2023,
fair, reasonable, and adequate; (ii) dismiss the Action with leading some to look for alter- 2018 ’19 ’20 ’21 ’22 agreeing to pay investors be-
prejudice as provided in the Stipulation and Agreement Any objections to the proposed Settlement, Lead Counsel’s
of Settlement, dated August 24, 2022; (iii) approve the Fee and Expense Application, and/or the proposed Plan natives, while others like Mr. Source: Refinitiv tween 8.25% and 9.25% for
proposed Plan of Allocation for distribution of the proceeds of Allocation must be filed with the Court, either by mail Shepard swallow the increase in notes that will mature in 2029.
of the Settlement (the “Net Settlement Fund”) to Settlement or in person, and be mailed to counsel for the Parties in price in return for later due demands have options, includ- “We have access to capital,”
Class Members; and (iv) approve Lead Counsel’s Fee and accordance with the instructions in the Notice, such that dates. While there is limited ing renegotiating with lenders Naftali Holtz, the company’s
Expense Application. The Court may change the date of the they are received no later than November 16, 2022.
Settlement Hearing without providing another notice. You
pressure overall as many busi- or searching for investors in the CFO, said last month.
do NOT need to attend the Settlement Hearing to receive a
PLEASE DO NOT CONTACT THE COURT, nesses refinanced in 2020 and private credit market, which But financing options have
DEFENDANTS, OR DEFENDANTS’ COUNSEL
distribution from the Net Settlement Fund. Instructions to REGARDING THIS NOTICE
2021 when funding was cheaper grew sharply in recent years. tightened and the worsening
join the video conference will be posted on the Settlement and investor appetite stronger, Companies can do follow-on or economic outlook could hurt
website and Lead Counsel’s website. high-yield companies with im- at the market offerings to sell consumer-facing companies in
www.CreditAcceptanceSecuritiesSettlement.com mediate financing needs have to equity to the secondary market, particular, with a chunk of re-
find the right time to tap inves- said Anna Pinedo, co-leader of cent downgrades falling into
tors, corporate bankers say. the capital markets practice at that category, according to S&P
BUSINESS OPPORTUNITIES PUBLIC NOTICES TRAVEL “This is a market of windows Mayer Brown LLP, a law firm. Global Ratings.
and our advice for clients is to And the high-yield bond “For a generation, we had a
be ready to access those win- market isn’t closed, it just be- decline in interest rates and a
NOTICE TO: ALL FORMER SECURITY HOLDERS
OF EXECVISION, INC., a Delaware corporation dows when they present them- come more expensive, bankers decline in borrowing costs. That
DRY EYE SOLUTION® (“ExecVision”)
The current sole stockholder of ExecVision, Mediafly,
selves,” said Alexandra Barth, said. Companies raised $15.7 has led to higher and higher
All natural dry eye treatment Inc., has filed a Petition in the Delaware Court of co-head of the leveraged capital- billion in speculative bonds in debt loads and lower credit rat-
Chancery under Section 205 of the Delaware General
Product brand acquisition offering Corporation Law seeking validation of defective markets business at Deutsche the third quarter, compared ings,” said Gregg Lemos-Stein,
Distributed in the U.S.A., S. Korea, China corporate acts related to the conversion of Vorsight,
LLC, a Virginia limited liability company, into a Delaware
Bank AG. “Even if the market is with $85.7 billion during the chief analytical officer for cor-
Current sales $22 million U.S. corporation, Vorsight, Inc., which subsequently changed choppy, there are options.” prior-year period, according to porate ratings at S&P.
541-660-5231 No Text messages its name to ExecVision (the “Petition”). The Petition Antarctica Expedition this December?
seeks to validate putative actions taken in December Opportunity for group (maximum 4) to join
Those opportunities are Refinitiv, a data provider. Av- Low rates in recent years
[email protected] 2015 including: (1) the conversion of Vorsight, LLC into professionally-guided self-drive crucial for finance chiefs as erage coupon rates for such brought with them weak cove-
a Delaware corporation, (2) the conversion of ownership
Antarctic expedition including South Pole.
interests in Vorsight, LLC into stock of ExecVision,
(3) adoption of the initial bylaws of ExecVision, and Starts 15 December 2022. Interested? there is about $11 billion in deals climbed to 7.63% in the nant requirements, meaning
(4) the election of David Stillman, Stephen Richard, Email Arctic Trucks: [email protected] high-yield bonds coming due third quarter, up from 5.13% a some borrowers didn’t have to
Mudar Yaghi and Robert Means as the initial directors
COMMERCIAL REAL ESTATE or ExecVision. The legal proceeding is captioned: IN RE through the end of the year, year earlier, Refinitiv said. take out hedges to protect
EXECVISION, C.A. No. 2022-0588-VCC. The Petition and followed by roughly $62 billion The average yield on lever- their exposure to floating
related filings are available for review during regular
office hours at the Office of the Register in Chancery in 2023 and $107 billion in aged loans rose to 9.42% in the rates, for example, the Secured
in the Court of Chancery of the State of Delaware, 500
North King Street, Wilmington, Delaware 19801 (the THEMARKETPLACE 2024, according to Deutsche third quarter, when companies Overnight Financing Rate.
Business For Sale By Owner “Courthouse”). If you have questions, you may contact
Petitioner’s counsel: R. Judson Scaggs Jr., Morris, Bank. Adding loans and revolv- borrowed $125 billion, com- That can spell trouble down
Nichols, Arsht & Tunnell LLP, 1201 North Market Street, ADVERTISE TODAY ing-credit facilities, speculative pared with a year ago when the road as both the London
Turn key roll off dumpster P.O. Box 1347, Wilmington, DE 19899-1347, rscaggs@
rental business. Upstate morrisnichols.com. The Court will hold a hearing on (800) 366-3975 companies have maturities of lower-rated businesses took out interbank offered rate and
the Petition at 1:30 p.m. on October 27, 2022 at the
NY. Great reputation Courthouse. Any written objection to the Court granting For more information visit: around $1.47 trillion through $296.8 billion in leveraged term SOFR traded higher in
and room to grow clientele. validation of the defective acts requested in the Petition
wsj.com/classifieds 2027, ratings firm Moody’s In- loans, with yields averaging recent months and exceeded
Serious Inquiries only. must be received by the Court and Petitioner’s counsel

518-429-0575
on or before 5:00 p.m. (EDT) on October 25, 2022. You
may also appear and object in person at the hearing. © 2022 Dow Jones & Company, Inc. vestors Service said last week. 4.57%, Refinitiv said. 3.4% for one-month tenors on
All Rights Reserved. Companies with urgent cash In addition to CNX, specula- Oct. 14, according to Refinitiv.
THE WALL STREET JOURNAL. Monday, October 17, 2022 | B5

BUSINESS & FINANCE

STREETWISE | By James Mackintosh
Bear stocks looking cheaper than
they have in some time. The
S&P 500 traded late last week

Market Swings Remain a Mystery Market at 15.7 times its projected

earnings over the next 12
months, down from 21.5 times

With volatil-
ity comes op-
S&P 500 12-month
forward price-to-
Intraday swings offer mixed signals
10/13/22
Rally Seen at the end of last year, accord-
ing to FactSet. On Thursday,
175 stocks in the U.S. bench-
portunity. And 3669.91 mark traded at new 52-week
what volatility! earnings ratio 5000 S&P 500 points 3/17/20 Continued from page B1 intraday lows, the highest
Thursday saw highlighted when market 2529.19 a difficult economic environ- number since the stock mar-
24 times 4500 fell then rallied, swing of
the biggest in- ment. Inflation has remained ket’s mid-June low.
RECESSION at least 5.55%
traday gain in the S&P 500 stubbornly high, despite the With stocks on sale, many
since the wild swings as stocks 22 4000 8/09/11 Fed raising interest rates at its investors are eager to get in at
were approaching their lows in 1172.53 most aggressive pace since the the ground floor of an eventual
3500
March 2020. On Friday much 20 10/28/97 1980s.
of the rise was given Expectations for corporate
3000 921.85
back. Could the opportunity be 10/23/08 earnings have been coming
that—whisper it—the swings
18
908.11 down, and high mortgage
The more volatility
2500
are a sign that the great bear
16
1/03/01 rates have pinched the hous- on the downside, the
market of 2022 is finally get- 1347.56 ing market.
ting close to bottoming out?
2000
Over the coming week, in-
more likely it is you
The truthful answer is that 14
1500
vestors will get a look at cor- get a snapback rally.
no one has a good explanation porate earnings from compa-
for the huge price moves. 12 nies including Bank of
1000
There is talk of short covering, America Corp., Netflix Inc.
psychologically important lev- Intraday bounces at least as big as and United Airlines Holdings rally. That means they are fo-
10 500
els for the market technicians Thursday's (highlighted) are often Inc., as well as fresh data on cused on any sign of a devel-
and put options reaching pay- followed by a fall back to a new low. existing-home sales. opment that would spark a
8 0
out points, but none can be “All of a sudden, we’ve got turnaround, like when the Fed
proved. ’90 2000 ’10 ’20 1997 2000 ’05 ’10 ’15 ’20 elevated uncertainty on both finally gets to the point of
Fundamentals certainly Source: Refinitiv valuations and earnings,” said slowing or stopping its inter-
don’t provide an explanation, Brad McMillan, chief invest- est-rate increases.
because the big news was that again before it becomes clear They were followed by large will have a soft enough eco- ment officer at Commonwealth The trouble is identifying
inflation was coming in hotter that the Federal Reserve’s rate bear-market rallies that fiz- nomic landing for earnings to Financial Network. “It’s the when exactly that move is hap-
than expected, pushing up increases—the most obvious zled out. Investors who rise next year by at least the deep uncertainty in both of the pening. “Everybody wants to
bond yields and initially hitting threat to stock prices—are bought and held at that point 7.9% forecast by Wall Street an- factors that literally we ha- be first in line to call that
stock prices. done. would have regretted it by the alysts, stocks look reasonably ven’t seen since the financial pivot,” said Michael Cuggino,
“It’s interesting that a piece time the low came in March cheap at about 16 times for- crisis.” president and portfolio man-

E
of news that we would think is ven bond investors are 2009. ward earnings. That’s down In his work as a financial ager at the Permanent Portfo-
a crystal-clear negative turned beginning to argue that There were similar tempo- from an overpriced 22 times at adviser, Mr. McMillan said he lio Family of Funds.
out to be positive,” says Russell the rise in bond yields rary but large rallies after the the start of the year. has reduced equity positions
Napier, a market strategist and makes them a good value de- big intraday jumps in October My concern remains that for some clients in recent
keeper of Edinburgh’s Library spite the threat of more rate 1997, August 1998, April 2000, there is a high chance the months because of elevated Watch a Video
of Mistakes, a collection dedi- rises on the way. January 2001, July 2002, May economy weakens next year market volatility and the pos- Scan this code
cated to market errors. “That’s In this way of telling it, 2010 and August 2011 (the last and earnings come in worse sibility that interest rates con- for a video on
telling us something—we just someone thought Thursday’s a brief burst of optimism than expected. The lagged im- tinue to rise. how inflation is
have to work out what.” fall meant prices were down shortly after the downgrade of pact of tighter monetary policy This year’s selloff has had handled around
Viewed in hindsight, the enough to start buying. Once the U.S. credit rating). will hit hard. Europe faces re- one silver lining. It has left the world.
large intraday bounces during prices started to rise, others The bad news: Out of all cession combined with the risk
the pandemic were a sign that who had been waiting for a low similarly large intraday re- of energy shortages if the win-
the market just wanted to go worried that they might miss bounds since 1990 at least as ter is cold. Geopolitics are
up. Investors were deeply pes- out, and piled in, some perhaps large as Thursday’s, only two— grim, while China remains
simistic, so anyone who was because of technical factors, those of March 2020 and Octo- committed to its economy-
likely to sell already had. aka, lines on charts, others to ber 1997—were sustained. The crushing zero-Covid policy.
When buyers stepped in, they lock in a profit on put options others lasted a maximum of Stock prices have come

REGINALD MATHALONE/NURPHOTO/ZUMA PRESS

overwhelmed the remaining or short bets that make money three months before making down a lot, so it is possible
sellers. when prices fall. new lows. investors are anticipating all
Investors are again deeply It is a plausible story. But go this bad stuff. Personally, I

T
pessimistic. At the same time, back through history and you he good news: Except in doubt it and expect this to be
the size of the fall in prices has will see that similar intraday the 2001 and 2008 cases, merely another bear market
many actively discussing when rallies didn’t often mark the the new lows weren’t rally. But there is no denying
it might be time to buy, with low and tended to miss the much below the low reached that we’re closer to the bot-
the S&P down 26.7% at Thurs- true bottom by many months. on the day with the big bounce. tom than we were, so it isn’t
day’s low since the start of the Since 1990, the biggest Maybe huge gains amid a surprising that investors are
year. The combination of the days with intraday rebounds mood of deep gloom tell us we again trying to work out when
pessimism and the willingness after a fall came amid the tur- are getting close to lows, even to buy, rather than when to
to buy raises the likelihood moil that followed Lehman if it tends to work out badly sell. Eventually they’ll be
that the market starts going up Brothers’ collapse in 2008. the first time. If you think we right. United is among several companies reporting earnings this week.

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B6 | Monday, October 17, 2022 THE WALL STREET JOURNAL.

MARKETS DIGEST
New to the Market Dow Jones Industrial Average S&P 500 Index
Last Year ago Last Year ago
Public Offerings of Stock 29634.83 s 338.04, or 1.15% last week Trailing P/E ratio 17.46 23.79 3583.07 t 56.59, or 1.55% last week Trailing P/E ratio * 17.85 30.49
High, low, open and close for each of P/E estimate * 16.19 19.07 High, low, open and close for each of P/E estimate * 16.37 21.87
IPOs in the U.S. Market the past 52 weeks Dividend yield 2.40 1.81 the past 52 weeks Dividend yield * 1.80 1.32
Initial public offerings of stock expected this week; might include some All-time high 36799.65, 01/04/22 All-time high 4796.56, 01/03/22
offerings, U.S. and foreign, open to institutional investors only via the
Rule 144a market; deal amounts are for the U.S. market only Current divisor 0.15172752595384 65-day moving average
Symbol/ Pricing 37000 4650
Expected primary Shares Range($) 65-day
pricing date Filed Issuer/business exchange (mil.) Low/High Bookrunner(s) moving average
10/18 10/28 Intensity Therapeutics Inc INTS 2.2 4.00/ RothCptlPtnrs,Benchmark 200-day 35500 4450
2021 Biotechnology company Nq 5.00 moving average
developing treatments for
cancer.
10/20 2/22 Beamr Imaging Ltd BMR 3.0 5.00/ FordhamFinancialManagement 34000 4250
Provider of video encoding, Nq 5.00
transcoding and
optimization solutions.
32500 200-day moving average 4050
10/18 3/4 Alopexx Inc ALPX 3.0 5.00/ FordhamFinancialManagement
Clinical stage Nq 5.00
biotechnology company Week's high
developing novel immune
therapeutics. DOWN UP
31000 3850

t
Monday's open Friday's close
10/19 9/23 Prime Medicine Inc PRME 8.9 16.00/ JPM, GS, MS, Jefferies
Gene editing and Nq 18.00 Friday's close Monday's open

t
sequencing technology
company. 29500 3650
Week's low
Lockup Expirations Bars measure the point change from Monday's open
28000 3450
None expected this week
O N D J F M A M J J A S O O N D J F M A M J J A S O
Primary
IPO Scorecard NYSE weekly volume, in billions of shares market Composite

t
t
Performance of IPOs, most-recent listed first Scan this code
36
% Chg From % Chg From Get real-time U.S. stock quotes and track
Company SYMBOL Friday3s Offer 1st-day Company SYMBOL Friday3s Offer 1st-day 24
IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close 12 most-active stocks, new highs/lows, mutual
Hudson Acquisition I 10.01 0.1 ... Third Harmonic Bio 17.06 0.4 –13.3 0 funds and ETFs..
HUDAU Oct. 14/$10.00 THRD Sept. 15/$17.00 O N D J F M A M J J A S O Available free at WSJMarkets.com
TenX Keance Acquisition 10.03 0.3 ... Wearable Devices 0.97 –77.2 –65.9
TENKU Oct. 14/$10.00 WLDS Sept. 13/$4.25 *Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.; † Based on Nasdaq-100 Index

Spring Valley Acquisition II 10.09 0.9 EF Hutton Acquisition I –0.2

SVIIU Oct. 13/$10.00
–0.1
EFHTU Sept. 9/$10.00
9.98 0.3
Major U.S. Stock-Market Indexes Nasdaq Composite
Aquaron Acquisition 10.02 0.2 ... Yoshiharu Global 1.03 –74.2 –75.2 Latest Week 52-Week % chg t 331.02, or -3.11%
AQUNU Oct. 4/$10.00 YOSH Sept. 9/$4.00 High Low Close Net chg % chg Low Close (l) High %chg YTD 3-yr. ann.
Dow Jones
last week
dMY Squared Technology 9.96 –0.4 –0.4 bioAffinity Tech 2.62 –57.3 –68.4
DMYY.U Sept. 30/$10.00 BIAF Sept. 1/$6.13 Industrial Average 30428.82 28660.94 29634.83 338.04 1.15 28725.51 • 36799.65 -16.0 -18.4 3.4
Laser Photonics 4.91 –1.8 90.3 Shuttle Pharmaceuticals Hldgs 3.44 –57.7 –91.1 Transportation Avg 12898.55 12172.34 12503.38 26.06 0.21 11999.40 • 17039.38 -17.7 -24.1 6.8
10750
LASE Sept. 30/$5.00 SHPH Aug. 31/$8.13 Utility Average 877.27 823.64 847.11 -16.32 -1.89 838.99 • 1071.75 -5.7 -13.6 -0.5
Qomolangma Acquisition 10.03
QOMOU Sept. 30/$10.00
0.3 0.4 Hempacco
HPCO Aug. 29/$6.00
2.78 –53.7 –64.3 Total Stock Market 37391.57 35161.32 36056.21 -641.48 -1.75 36056.21 • 48929.18 -22.3 -25.9 6.0

Global Star Acquisition 10.02 0.2 0.5 Jeffs' Brands 0.98 –76.6 –63.6
Barron's 400 896.17 861.38 862.18 -12.00 -1.37 825.73 • 1127.2 -17.2 -22.1 8.6 10500
GLSTU Sept. 20/$10.00 JFBR Aug. 26/$4.16 Nasdaq Stock Market
10250
Nexalin Technology
NXL Sept. 16/$4.15
1.28 –69.2 –43.1 Onfolio Hldgs
ONFO Aug. 26/$5.00
1.10 –78.0 –54.2 Nasdaq Composite 10766.69 10088.83 10321.39 -331.02 -3.11 10321.39 • 16057.44 -30.7 -34.0 8.6
Corebridge Financial 20.02 –4.7 –3.4 PaxMedica 2.17 –58.7 –55.8
Nasdaq-100 11152.89 10440.64 10692.06 -347.41 -3.15 10692.06 • 16573.34 -29.4 -34.5 10.9
CRBG Sept. 15/$21.00 PXMD Aug. 26/$5.25 10000
S&P
7 10 11 12 13 14
Sources: Dow Jones Market Data; FactSet 500 Index 3712.00 3491.58 3583.07 -56.59 -1.55 3577.03 • 4796.56 -19.9 -24.8 6.5 October
MidCap 400 2327.86 2191.72 2245.21 -21.68 -0.96 2200.75 • 2910.7 -18.3 -21.0 5.6 DJ US TSM
Public and Private Borrowing SmallCap 600 1129.13 1061.11 1091.05 -2.68 -0.25 1064.45 • 1466.02 -20.0 -22.2 5.4
t 641.48, or -1.75%
Treasurys Other Indexes last week
Russell 2000 1747.84 1641.94 1682.40 -19.75 -1.16 1649.84 • 2442.74 -25.7 -25.1 3.8
Monday, October 17 Thursday, October 20
NYSE Composite 14041.94 13278.56 13607.31 -190.95 -1.38 13472.18 • 17353.76 -19.3 -20.7 1.8
Auction of 13 and 26 week bills; Auction of 4 and 8 week bills; Value Line 513.87 484.41 495.91 -9.39 -1.86 491.56 • 696.4 -25.8 -26.2 -1.0 36800
announced on October 13; settles on October 20announced on October 18; settles on October 25 NYSE Arca Biotech 4745.51 4471.72 4615.01 21.43 0.47 4208.43 • 5815.27 -18.1 -16.4 3.0
Wednesday, October 19 Auction of 5 year TIPS; NYSE Arca Pharma 768.09 737.88 757.21 10.20 1.37 737.50 • 887.27 1.9 -8.5 9.1
36200
Auction of 17 week bill; announced on October 13; settles on October 31 KBW Bank 102.30 92.73 98.19 0.64 0.66 94.66 • 147.56 -28.3 -25.7 -0.2
announced on October 18; settles on October 25
PHLX§ Gold/Silver 104.04 95.33 96.42 -6.89 -6.67 91.40 • 167.76 -27.0 -27.2 2.6
PHLX§ Oil Service 69.89 65.14 66.72 -2.521 -3.64 49.14 • 88.37 2.9 26.6 0.9 35600
PHLX§ Semiconductor 2347.22 2089.82 2162.32 -194.43 -8.25 2162.32 • 4039.51 -34.8 -45.2 10.8
Currencies Cboe Volatility 34.53 31.14 32.02 0.66 2.10 15.01 • 36.45 96.4 85.9 30.0 35000

Nasdaq PHLX 7 10 11 12 13 14
U.S.-dollar foreign-exchange rates in late New York trading Sources: FactSet; Dow Jones Market Data October
US$vs, US$vs,
Fri YTDchg Fri YTDchg
Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
Americas Vietnam dong .00004143 24135 5.6
International Stock Indexes Commodities and
Argentina peso .0066151.6711 47.7 Europe Latest Week 52-Week Range YTD
Currencies
Brazil real .1878 5.3256 –4.4 Czech Rep. koruna .03952 25.304 15.7 Region/Country Index Close % chg Low Close High % chg
Last Week YTD
Canada dollar
Chile peso
.7205 1.3880
.001039 962.01
9.8
12.9
Denmark krone
Euro area euro
.1307 7.6502 17.0
0.9722 1.0286 17.0
World MSCI ACWI 552.08 –1.94 550.37 • 758.86 –26.9 Close Net chg %Chg % chg

Colombiapeso .000213 4698.01 15.6 Hungary forint .002329 429.45 32.3

MSCI ACWI ex-USA 246.56 –2.18 244.35 • 352.75 –28.4 DJ Commodity 1026.26 -33.40 -3.15 8.46
Ecuador US dollar 1 1 unch Iceland krona .006919 144.54 11.4 MSCI World 2376.64 –1.70 2367.69 • 3248.12 –26.5 Refinitiv/CC CRB Index 276.69 -8.92 -3.12 19.07
Mexico peso .0498 20.0769 –2.1 Norway krone .0935 10.6966 21.5 MSCI Emerging Markets 863.33 –3.83 854.53 • 1301.13 –29.9 Crude oil, $ per barrel 85.61 -7.03 -7.59 13.83
Uruguay peso .02423 41.2650 –7.7 Poland zloty
Russia ruble
.2024 4.9401 22.6
.01596 62.650 –16.2
Americas MSCI AC Americas 1363.36 –1.86 1363.36 • 1836.68 –25.4 Natural gas, $/MMBtu 6.453 -0.295 -4.37 73.00
Asia-Pacific
Sweden krona .0886 11.2915 24.7
Canada S&P/TSX Comp 18326.35 –1.38 18206.28 • 22087.22 –13.6 Gold, $ per troy oz. 1641.70 -58.80 -3.46 -10.17
Australian dollar .6202 1.6124
.1391 7.1910
17.1
13.1
Switzerland franc .9946 1.0054 10.2 Latin Amer. MSCI EM Latin America 2121.95 –3.84 1912.59 • 2761.97 –0.4
U.S. Dollar Index 113.33 0.53 0.47 18.09
China yuan
Hong Kong dollar .1274 7.8501 0.7
Turkey lira .0538 18.5816 39.5 Brazil BOVESPA 112072.34 –3.70 96120.85 • 121570.15 6.9
WSJ Dollar Index 105.09 0.82 0.79 17.35
India rupee .01213 82.418 10.6
Ukraine hryvnia .0271 36.9500 35.1 Chile S&P IPSA 3041.31 –2.18 2631.83 • 3546.47 8.4
Euro, per dollar 1.0286 0.002 0.19 16.98
Indonesia rupiah .0000648 15427 8.2
UK pound 1.1183 .8942 21.0 Mexico S&P/BMV IPC 45443.35 –0.62 44626.80 • 56609.54 –14.7
Yen, per dollar 148.75 3.43 2.36 29.23
Middle East/Africa
Japan yen .006723 148.75
Kazakhstan tenge .002101 476.01
29.2
9.4 Bahrain dinar 2.6518 .3771 0.04
EMEA STOXX Europe 600 391.31 –0.09 382.89 • 494.35 –19.8
U.K. pound, in dollars 1.12 0.009 0.81 -17.33
Macau pataca .1236 8.0889 0.7 Egypt pound .0509 19.6627 25.2
STOXX Europe 50 3367.28 –0.33 3310.09 • 3866.60 –11.8
52-Week
Malaysia ringgit .2127 4.7020 12.9 Israel shekel .2817 3.5499 14.2
Eurozone Euro STOXX 369.75 0.11 359.45 • 487.72 –22.8 Low Close(l) High % Chg
New Zealand dollar .5562 1.7979 23.0 Kuwait dinar 3.2190 .3107 2.7 Euro STOXX 50 3381.73 0.19 3279.04 • 4401.49 –21.3
DJ Commodity 893.10 1264.48 6.32
Pakistan rupee .00457 218.875 24.2 Oman sul rial 2.5975 .3850 –0.01 Austria ATX 2749.82 –0.22 2647.43 • 4057.59 –28.8 l
329.59 15.64
Philippines peso .0169 59.024
.7011 1.4264
15.7
5.8
Qatar rial .2746 3.641 –0.03
.2661 3.7575 0.1
Belgium Bel-20 3387.10 0.62 3313.82 • 4402.32 –21.4 Refinitiv/CC CRB Index 218.39 l
Singapore dollar
South Korea won .0006936 1441.67 21.3
Saudi Arabia riyal
South Africa rand .0545 18.3606 15.2
France CAC 40 5931.92 1.11 5676.87 • 7376.37 –17.1 Crude oil, $ per barrel 65.57 l 123.70 4.05

Sri Lanka rupee .0027397 365.00 79.9

Germany DAX 12437.81 1.34 11975.55 • 16271.75 –21.7 Natural gas, $/MMBtu 3.561 l 9.680 19.28
Taiwan dollar .03127 31.975 15.4 Close Net Chg % Chg YTD%Chg Greece Athex Composite 832.32 2.24 779.20 • 971.09 –6.8 Gold, $ per troy oz. 1623.30 l 2040.10 -7.10
Thailand baht .02610 38.310 15.3 WSJ Dollar Index 105.09 0.8440.809 17.35 Israel Tel Aviv 1872.68 0.27 1775.89 • 2071.10 –5.3
114.10 20.62
Sources: Tullett Prebon, Dow Jones Market Data Italy FTSE MIB 20930.81 0.14 20353 • 28163 –23.5 U.S. Dollar Index 93.35 l

Netherlands AEX 630.58 –2.55 630.58 • 827.57 –21.0 WSJ Dollar Index 87.84 l 105.14 18.90
Portugal PSI 20 5340.00 –0.27 5190.28 • 6349.21 –4.1 Euro, per dollar 0.8559 l 1.0422 19.31
Russia RTS Index 990.66 –1.43 742.91 • 1919.58 –37.9 Yen, per dollar 112.78 l 148.75 30.19
South Africa FTSE/JSE All-Share 64271.36 –2.14 63263.94 • 77536.12 –12.8 U.K. pound, in dollars 1.07 l 1.38 -18.65
Spain IBEX 35 7382.50 –0.73 7261.1 • 9182.6 –15.3
Sweden OMX Stockholm 712.85 1.50 690.07 • 1045.27 –31.3 Go to WSJMarkets.com for free
NOTICE OF PUBLIC SALE Switzerland Swiss Market 10329.34 0.20 10072.62 • 12970.53 –19.8 access to real-time market data.
U.K. FTSE 100 6858.79 –1.89 6826.15 • 7672.40 –7.1

NOVA-Skywire HoldCo, L.P. (“NOVA”) Asia-Pacific MSCI AC Asia Pacific 137.85 –3.43 135.8 • 201.1 –28.6

will conduct a secured party sale by way of

Australia S&P/ASX 200 6758.80 –0.06 6433.4 • 7592.8 –9.2
China Shanghai Composite 3071.99 1.57 2886.43 • 3681.08 –15.6
public auction (the “Auction”) of the owner- Hong Kong Hang Seng 16587.69 –6.50 16389.11 • 26136.02 –29.1
ship interests of Xchange Telecom LLC (the India S&P BSE Sensex 57919.97 –0.47 51360.42 • 61765.59 –0.6

“Borrower”) comprising NOVA’s collater-

Japan NIKKEI 225 27090.76 –0.09 24717.53 • 29808.12 –5.9
Malaysia FTSE Bursa Malaysia KLCI 1382.47 –1.67 1373.36 • 1618.54 –11.8
al (the “Collateral”). Such Auction is being Singapore Straits Times 3039.61 –3.38 3039.61 • 3445.01 –2.7
conducted pursuant to Section 9-610 et seq. South Korea KOSPI 2212.55 –0.91 2155.49 • 3049.08 –25.7

of the Uniform Commercial Code and ap-

Taiwan TAIEX 13128.12 –4.19 12810.73 • 18526.35 –27.9
Source: FactSet; Dow Jones Market Data
plicable law, including securities laws. The
Auction will be conducted on the follow- Consumer Rates and Returns to Investor Benchmark Yields and Rates
ing date and time and at the following loca- U.S. consumer rates Selected rates Treasury yield curve Forex Race
tion: November 4, 2022, 10:00 A.M. E.T at A consumer rate against its Five-year ARM, Rate Yield to maturity of current bills, Yen, euro vs. dollar; dollar vs.
the offices of Jones Day, 250 Vesey Street, benchmark over the past year notes and bonds major U.S. trading partners
Bankrate.com avg†: 5.38%
32nd Floor, New York, NY 10281. All bid- Raymond James Bank, NA 3.00% Tradeweb ICE 5.00%
5-year 5.00% Friday Close t 28%
ders must qualify in advance of the Auction St. Petersburg, FL 800-718-2265
adjustable-rate 4.00 WSJ Dollar Index
by contacting counsel for NOVA – Thomas mortgage (ARM) t Clinton Savings Bank 3.50% 14
s
3.75
Clinton, MA 888-744-4272 3.00
Wearsch, Esq. at 216-586-7015 or twearsch@
2.50 Florence Savings Bank 4.00% 0
jonesday.com. Counsel with provide written 2.00 Euro
5-year Treasury
t

Florence, MA 800-644-8261 s
note yield One year ago
t

bidding procedures. Pre-qualification re- 1.25 Hanscom Federal Credit Union 4.63% 1.00 –14
s
quirements will include certain obligations 0.00
Hanscom AFB, MA 800-656-4328
0.00 Yen
–28
and representations required by applicable N D J FMAM J J A S O RTN Federal Credit Union 4.75% 1 3 6 1 2 3 5 7 10 20 30 2021 2022
2021 2022 Waltham, MA 781-736-9900 month(s) years
securities laws. Parties that do not pre-quali-
3-yr chg maturity
fy for the Auction shall not be permitted into Yield/Rate (%) 52-Week Range (%)
Sources: Tradeweb ICE U.S. Treasury Close; Tullett Prebon; Dow Jones Market Data
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
the Auction. The Collateral will be offered
Federal-funds rate target 3.00-3.25 3.00-3.25 0.00 l 3.25 1.25 Corporate Borrowing Rates and Yields
for sale in bulk only, which means the suc- Prime rate* 6.25 6.25 3.25 l 6.25 1.25 Spread +/- Treasurys,
cessful bidder at the Auction must bid on Yield (%) in basis pts, 52-wk Range Total Return
Libor, 3-month 4.19 3.91 0.12 l 4.19 2.19
Bond total return index Last Wk ago Last Low High 52-wk 3-yr
and be prepared to purchase all of the Col- Money market, annual yield 0.24 0.22 0.07 l 0.24 -0.48
Five-year CD, annual yield 2.14 2.08 0.41 l 2.14 0.62 U.S. Treasury, Bloomberg 4.370 4.220 -14.05 -3.39
lateral. For Auction rules and a list of the 30-year mortgage, fixed† 7.21 6.98 3.09 l 7.21 3.27 U.S. Treasury Long, Bloomberg 4.210 4.070 -29.81 -9.05
Collateral, contact Thomas Wearsch, Esq. at 15-year mortgage, fixed† 6.42 6.14 2.42 l 6.42 3.07 Aggregate, Bloomberg 5.000 4.820 n.a. 32 67 -15.89 -3.64
216-586-7015 or [email protected]. Jumbo mortgages, $647,200-plus† 7.25 7.01 3.09 l 7.25 2.85 Fixed-Rate MBS, Bloomberg 5.060 4.890 n.a. 18 85 -15.58 -4.28
Five-year adj mortgage (ARM)† 5.38 5.35 2.82 l 5.38 0.85 High Yield 100, ICE BofA 8.662 8.406 427 249 552 -12.968 -1.125
New-car loan, 48-month 5.99 5.77 3.41 l 5.99 1.34 Muni Master, ICE BofA 3.647 3.659 -8 -17 10 -9.527 -1.371
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 8.926 8.608 474 316 496 -23.213 -6.577
banks.† Excludes closing costs.
Sources: FactSet; Dow Jones Market Data; Bankrate.com Sources: J.P. Morgan; S&P Dow Jones Indices; Bloomberg Fixed Income Indices; ICE BofA
THE WALL STREET JOURNAL. Monday, October 17, 2022 | B7

CLOSED-END FUNDS
Listed are the 300 largest closed-end funds as 52 wk 52 wk Prem12 Mo Prem12 Mo Prem12 Mo
measured by assets. Closed-end funds sell a limited Prem Ttl Prem Ttl Fund (SYM) NAV Close /Disc Yld Fund (SYM) NAV Close /Disc Yld Fund (SYM) NAV Close /Disc Yld
number of shares and invest the proceeds in securities. Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret
Unlike open-end funds, closed-ends generally do not Franklin Univ FT 7.14 6.28 -12.0 8.0 BR MH NJ Qly MUJ 12.24 11.21 -8.4 6.4 Eagle Point Instl Income NA NA NA NS
buy their shares back from investors who wish to cash BlackRock ESG Cap Alloc ECAT 15.76 12.94 -17.9 -30.4 NuvCorEqAlpha JCE 11.58 13.83 +19.4 -1.2 KKR Income Opportunities KIO NA 10.65 NA 11.0 BR MH NY Qly MHN 11.26 9.55 -15.2 6.2 Equalize Community Dev 9.29 NA NA 2.8
in their holdings. Instead, fund shares trade on a stock BlackRock Hlth Sci Tr II BMEZ 17.81 14.81 -16.8 -40.2 NuveenNasdaq100DynOv QQQX 19.59 21.29 +8.7 -20.7
exchange. NA signifies that the information is not
Nuveen Global High Inc JGH 12.08 10.53 -12.8 12.8 BR MuniYld MI Qly MIY 12.28 12.10 -1.5 5.4 FedProj&TrFinanceTendr 9.84 NA NA 3.0
available or not applicable. NS signifies funds not in BlackRock Hlth Sciences BME 40.38 39.05 -3.3 -11.8 Nuv Real Est JRS 7.80 7.21 -7.6 -30.6 PGIM Global High Yield GHY 11.92 10.13 -15.0 11.9 BR MuniYld NY Qly MYN 10.89 9.22 -15.3 6.0 Flat Rock Core Income 19.71 NA NA 7.0
existence for the entire period. 12 month yield is BlackRock Innov and Grow BIGZ 8.50 6.94 -18.4 -56.8 Nuveen Rl Asst Inc & Gro JRI 12.53 10.78 -14.0 -25.8 PGIM High Yield Bond ISD 13.21 11.25 -14.8 10.9 BlackRock NY Mun BNY 11.12 9.62 -13.5 6.2 InvDYCrOpp:A 11.28 NA NA NS
computed by dividing income dividends paid (during BlackRock Res & Comm BCX 10.29 8.77 -14.8 -2.6 NuvS&P500DynOvFd SPXX 14.11 15.59 +10.5 -5.3 PGIM Sh Dur Hi Yld Opp SDHY 16.42 13.95 -15.0 9.0 EVCAMuniBd EVM 9.85 8.39 -14.9 5.4 InvDYCrOpp:R6 11.28 NA NA NS
the previous 12 months for periods ending at month-
end or during the previous 52 weeks for periods BlackRock Sci&Tech T II BSTZ 20.49 16.80 -18.0 -53.5 NuvSP500BuyIncFd BXMX 11.99 12.02 +0.3 -11.8 PioneerHilncm PHT 7.35 6.26 -14.8 11.9 InvCaValMuIncTr VCV 10.31 9.03 -12.4 6.0 InvDYCrOpp:Y 11.28 NA NA NS
ending at any time other than month-end) by the BlackRock Sci&Tech Trust BST 29.54 28.35 -4.0 -40.7 ReavesUtilityIncome UTG 25.47 25.22 -1.0 -18.5 WstAstHIF II HIX NA 4.24 NA 13.4 InvPAValMuIncTr VPV 11.13 9.54 -14.3 5.8 Invesco Sr Loan A 5.90 NA NA 6.3
latest month-end market price adjusted for capital BlackRock Utl Inf & Pwr BUI 19.61 19.02 -3.0 -19.7 Tortoise Enrgy Infra Crp TYG NA 30.23 NA 8.4 Western Asset Hi Inc Opp HIO NA 3.62 NA 9.7 InvTrInvGrNYMu VTN 11.08 9.74 -12.1 5.6 Invesco Sr Loan C 5.92 NA NA 5.5
gains distributions. Depending on the fund category,
either 12-month yield or total return is listed. CLEARBRIDGEENGYMDSOPP EMO NA 26.30 NA 13.4 Tortoise Midstream Enrgy NTG NA 33.60 NA 11.8 Western Asset Hi Yld D O HYI 12.26 11.34 -7.5 10.1 Nuveen CA AMT-F Qual MI NKX 12.56 11.50 -8.4 5.6 Invesco Sr Loan IB 5.90 NA NA 6.6
Source: Lipper CLEARBRIDGEMLP&MDSTMTR CTR NA 27.53 NA 7.6 VDivInt&PremStr NFJ NA 10.59 NA -25.6 Other Domestic Taxable Bond Funds Nuveen CA Val NCA 8.96 8.19 -8.6 3.6 Invesco Sr Loan IC 5.90 NA NA 6.4
Friday, October 14, 2022 ClearBridge MLP & Midstm CEM NA 31.49 NA 7.2 V Art Int&Tech Opps AIO NA 15.13 NA -31.1 Allspring Multi-Sector ERC 9.22 8.30 -10.0 12.9 NuveenCAQtyMuInc NAC 12.05 10.67 -11.5 5.8 Invesco Sr Loan Y 5.90 NA NA 6.6
52 wk ChnStrInfr UTF 21.33 21.14 -0.9 -18.5 Income & Preferred Stock Funds Apollo Tactical Income AIF NA 11.81 NA 9.2 NuvNJ Qual Muni Inc NXJ 12.76 10.75 -15.8 5.9 OFS Credit Company OCCI NA 8.23 NA NA
Prem Ttl Cohen&SteersQualInc RQI 11.40 10.99 -3.6 -26.1 CalamosStratTot CSQ 12.42 12.20 -1.8 -27.7 Ares Dynamic Crdt Alloc ARDC NA 11.27 NA 10.0 Nuveen NY AMT/Fr Qual MI NRK 11.24 9.79 -12.9 5.8 Yieldstreet Prism NA NA NA 8.1
Fund (SYM) NAV Close /Disc Ret CohenStrs Real Est and I RLTY 14.18 12.54 -11.6 NS CohenStrsLtdDurPref&Inc LDP 19.99 18.37 -8.1 -26.2 BlackRock Mlt-Sctr Inc BIT 14.42 14.24 -1.2 10.4 Nuveen NY Qual Muni Inc NAN 11.71 9.99 -14.7 5.5 High Yield Bond Funds
Cohen&Steers TotRet RFI 11.11 12.30 +10.7 -19.9 CohenStrsSelPref&Income PSF 19.88 17.83 -10.3 -30.4 BlackRock Tax Muni Bd BBN 16.79 16.01 -4.6 8.9 Nuveen OH Qual Muni Inc NUO 13.91 11.93 -14.2 4.5 Apollo Diversified Cd:A NA NA NA 6.9
General Equity Funds CohenStrsTaxAvPreSecs&I PTA 19.81 17.22 -13.1 -25.2
CohenStrsREITPrefInc RNP 19.70 19.67 -0.2 -20.3 DoubleLine:Oppor Crdt Fd DBL 14.35 13.91 -3.1 9.5 Nuveen PA Qual Muni Inc NQP 12.61 10.60 -15.9 5.4 Apollo Diversified Cd:C NA NA NA 6.9
Adams Diversified Eq Inc ADX 17.11 14.53 -15.1 -17.7 Dividend and Income DNI 15.11 NA NA NA
Columbia Sel Prm Tech Gr STK 22.02 23.15 +5.1 -25.1 EVLmtDurIncm EVV 10.14 8.94 -11.8 13.0 Nuveen VA Qlty Mun Inc NPV 11.63 11.77 +1.2 4.7 Apollo Diversified Cd:F NA NA NA 7.1
Central Secs CET 40.42 34.35 -15.0 -14.0 FirstTrIntDurPref&Inc FPF 18.18 15.74 -13.4 -32.7
DNP Select Income DNP 7.99 10.05 +25.9 0.3 Franklin Ltd Dur Income FTF 6.97 5.95 -14.6 13.4 PIMCO CA PCQ 9.88 14.02 +41.9 5.6 Apollo Diversified Cd:I NA NA NA 6.9
CohenStrsCEOppFd FOF 10.01 9.81 -2.0 -24.3 15.57 15.00 -3.7 -24.4
Duff&Ph Uti&Infra Inc Fd DPG 10.93 12.30 +12.5 -3.3 JHanPrefInc HPI J Han Investors JHI 13.01 11.87 -8.8 10.9 PIMCOCAMuniII PCK 6.20 6.46 +4.2 6.0 Apollo Diversified Cd:L NA NA NA 6.9
EVTxAdvDivIncm EVT 21.99 21.70 -1.3 -18.6 JHPrefIncII HPF 15.43 15.30 -0.8 -24.1
EtnVncEqtyInc EOI 14.49 14.77 +1.9 -15.6 MFS Charter MCR 6.55 5.83 -11.0 10.4 52 wk Apollo Diversified Cd:M NA NA NA NS
GabelliDiv&IncTr GDV 21.73 18.65 -14.2 -26.4 HnckJPfdInco III HPS 13.80 13.95 +1.1 -21.9
EtnVncEqtyIncoII EOS 15.34 15.47 +0.8 -29.4 NuvCorePlusImpact NPCT 11.69 10.00 -14.5 12.0 Prem Ttl Opprtnstc Crdt Intrvl;I 10.04 NA NA NS
Gabelli Equity Tr GAB 4.54 4.97 +9.5 -18.4 J Han Prm PDT 11.80 13.04 +10.5 -17.0
EVRskMnDvsEqInc ETJ 7.85 8.07 +2.8 -20.1 Nuveen Taxable Muni Inc NBB 15.83 15.01 -5.2 8.3 Fund (SYM) NAV Close /Disc Ret PIMCO Flexible Cr I;A-1 7.52 NA NA 9.6
GeneralAmer GAM 40.34 33.85 -16.1 -17.5 LMP CapInco SCD NA 11.25 NA -15.2
ETnVncTxMgdBuyWrtInc ETB 12.56 14.06 +11.9 -6.4 PIMCO Corp & Inc Oppty PTY 10.72 11.96 +11.6 12.1 General Equity Funds PIMCO Flexible Cr I;A-2 7.52 NA NA 9.6
JHancockTaxAdvDiv HTD 20.92 20.25 -3.2 -9.3 Nuveen Multi-Asset Inc NMAI 12.34 10.66 -13.6 NS
EtnVncTxMgdBuyWrtOpp ETV 11.70 13.06 +11.6 -13.6 PIMCO Corp & Inc Strat PCN 11.15 11.87 +6.5 11.4 Alternative Strategies:I 4.89 NA NA -22.3 PIMCO Flexible Cr I;A-3 7.52 NA NA 9.3
Liberty All-Star Equity USA 5.54 5.60 +1.1 -27.0 Nuveen Pref & Inc Opp JPC 7.60 6.70 -11.8 -26.5
EvTxMnDvsEqInc ETY 10.78 11.12 +3.2 -16.1 PIMCOHilnco PHK 4.55 4.59 +0.9 12.3 BOW RIVER CAPTL EVGN;II NA NA NA N PIMCO Flexible Cr I;A-4 7.52 NA NA 9.3
Liberty All-Star Growth ASG 4.95 4.85 -2.0 -39.4 Nuveen Fd JPS 7.38 6.45 -12.6 -29.2
EtnVncTxMgdGlbB ETW 7.85 8.07 +2.8 -20.7 PIMCO IncmStrFd PFL 7.89 7.84 -0.6 12.2 PIMCO Flexible Cr I;Inst 7.52 NA NA 10.2
Royce Micro-Cap Tr RMT 9.00 8.06 -10.4 -22.3 Nuveen Pref & Inc Term JPI 18.78 17.79 -5.3 -24.5 Specialized Equity Funds
EVTxMnGblDvEqInc EXG 7.40 7.29 -1.5 -23.8 PIMCO IncmStrFd II PFN 6.94 6.77 -2.4 12.4 WA Middle Mkt Inc 556.93 NA NA 5.9
Royce Value Trust RVT 13.65 12.33 -9.7 -26.2 Nuveen Var Rate P&I NPFD 18.80 16.95 -9.8 NS ArrowMark Financial Corp BANX NA 16.60 NA NA
Ecofin S&S Impact Term TEAF NA 12.50 NA -7.6 Putnam Prem Inc PPT 3.91 3.52 -10.0 8.7 Other Domestic Taxable Bond Funds
Source Capital SOR 38.25 34.97 -8.6 -14.4 TCW Strat Income TSI 4.93 4.61 -6.5 -14.9 Bluerock Total Inc+ RE:M NA NA NA NS
First Trust Energy Inc G FEN 14.40 14.75 +2.4 7.1 Western Asset Dvsfd Inc WDI NA 12.50 NA 11.3 AFA MMC;Inst 9.56 NA NA 5.9
Sprott Focus Trust FUND 7.57 7.04 -7.0 -9.8 Convertible Sec's. Funds CBRE GlbRlEst IGR 5.66 5.34 -5.7 -37.0
First Tr Enhanced Eq FFA 15.48 14.69 -5.1 -23.1 World Income Funds AFA MMC;Inv 9.54 NA NA 5.9
SRH Total Return STEW 13.58 11.06 -18.6 -14.9 AdvntCnvrtbl&IncFd AVK 11.73 10.43 -11.1 -34.6 CIM RA&C A 25.96 NA NA 6.1
FirstTrEnergyInfra FIF 15.48 13.20 -14.7 0.7 abrdn AP IncFd FAX 2.93 2.46 -16.0 13.1 Alternative Credit Inc:A 10.09 NA NA 6.9
Tri-Continental TY 28.36 25.69 -9.4 -13.1 CalamosConvHi CHY 10.27 10.24 -0.3 -30.1 MS EmMktDomDebt EDD 4.76 3.96 -16.8 8.0 CIM RA&C C 25.48 NA NA 5.4
Specialized Equity Funds FirstTrMLPEner&Inc FEI 8.36 7.26 -13.2 -1.4 CIM RA&C I 26.11 NA NA 6.4 Alternative Credit Inc:C 10.20 NA NA 6.1
CalmosConvOp CHI 9.75 9.80 +0.5 -30.7 PIMCO Access Income PAXS NA 14.94 NA NS Alternative Credit Inc:I 10.11 NA NA 7.2
abrdn Glb Prem Prop AWP 3.93 3.65 -7.1 -38.2 Gabelli Healthcare GRX 11.07 9.60 -13.3 -21.5 Ellsworth G&I Fund Ltd ECF 9.02 7.98 -11.5 -32.8 CIM RA&C L 25.78 NA NA 5.8
PIMCO Dynamic Income PDI 18.42 18.81 +2.1 13.6 Alternative Credit Inc:L 10.08 NA NA 6.6
Adams Natural Resources PEO 24.81 21.17 -14.7 31.4 Gab Utility GUT 3.27 6.71 105.2 -5.1 V Conv & Inc NCV 3.64 3.18 -12.6 -42.3 First Tr Real Assets;I 9.98 NA NA NS
PIMCO Dynamic Inc Opp PDO NA 13.03 NA 13.7 Alternative Credit Inc:W 10.08 NA NA 6.9
ASA Gold & Prec Met Ltd ASA 14.44 12.62 -12.6 -39.8 GAMCOGlGold&NatRes GGN 3.34 3.27 -2.1 -9.1 V Conv & Inc II NCZ 3.26 2.74 -16.0 -42.1 NexPointRlEstStrat;A 20.31 NA NA 12.5
PIMCO Stratg Inc RCS 4.32 4.84 +12.0 12.9 Angel Oak Str Crdt:FI 20.42 NA NA NS
BR Enh C&I CII 17.75 16.61 -6.4 -15.8 J Han Finl Opptys BTO 32.87 30.91 -6.0 -23.2 V Div Inc & Conv ACV 19.56 17.77 -9.2 -35.5 NexPointRlEstStrat;C 20.54 NA NA 11.6
Templeton Em Inc TEI 4.93 4.42 -10.3 16.3 Angel Oak Str Crdt:Inst 20.41 NA NA 15.1
BlackRock Energy & Res BGR 13.45 11.72 -12.9 19.6 Neuberger Brmn MLP & EI NML 7.76 6.32 -18.6 20.9 V Eqty & Conv Inc NIE NA 19.91 NA -24.6 NexPointRlEstStrat;Z 20.54 NA NA 12.7
Templtn Glbl Inc GIM 4.26 4.07 -4.5 10.1 BR Credit Strat;A 8.40 NA NA 6.8
BlackRock Eq Enh Div BDJ 8.65 8.30 -4.0 -10.5 Neuberger Nxt Gen Conn NBXG 10.86 8.73 -19.6 -48.2 World Equity Funds PREDEX;I 32.26 NA NA 22.1
WstAstEmergDebt EMD NA 7.83 NA 13.0 BR Credit Strat;Inst 8.38 NA NA 7.7
BlackRock Enh Glbl Div BOE 10.09 8.65 -14.3 -22.7 NubrgrRlEstSec NRO 3.23 3.22 -0.3 -30.2 abrdn Emg Mkts Eq Inc AEF 5.15 4.42 -14.2 -43.3 Western Asset Gl Cr D Op GDO NA 11.37 NA 10.8 PREDEX;T 32.47 NA NA 21.9
BlackRock Enh Intl Div BGY 5.07 4.34 -14.4 -24.8 NuvDow30DynOverwrite DIAX 14.75 13.92 -5.6 -14.3 abrdn Tot Dyn Div AOD 8.12 7.00 -13.8 -24.4 PREDEX;W 32.47 NA NA 21.9 BR Credit Strat;U 8.40 NA NA 6.8
National Muni Bond Funds BR Credit Strat;W 8.40 NA NA 6.8
Allspring Gl Div Oppty EOD 4.24 4.25 +0.2 -17.1 AllBerNatlMunInc AFB 11.69 10.26 -12.2 5.6 Principal Dvs Sel RA A 25.59 NA NA -3.7
BlackRock Capital Alloc BCAT 16.33 13.53 -17.1 -24.8 Principal Dvs Sel RA Ins 25.66 NA NA -3.4 BlackRock Mlt-Sctr Oppty 65.67 NA NA 9.7
BlckRk Inv Q Mun BKN 12.34 11.93 -3.4 6.5 BlackRock Mlt-Sec Opp II 67.53 NA NA 9.2
Calamos GloDynInc CHW 5.81 5.36 -7.7 -40.0 BlackRock Muni 2030 Tgt BTT 22.55 20.54 -8.9 3.6 Principal Dvs Sel RA Y 25.83 NA NA -3.2
A Week in the Life of the DJIA EV TxAdvGlbDivInc ETG 14.92 14.97 +0.3 -25.7 BlackRock Muni BFK 10.82 9.57 -11.6 6.8 The Private Shares;A 41.89 NA NA 0.8 CION Ares Dvsfd Crdt;A NA NA NA 5.7
CION Ares Dvsfd Crdt;C NA NA NA 5.8
EtnVncTxAdvOpp ETO 20.61 20.24 -1.8 -31.0 BlackRock Muni II BLE 11.24 9.98 -11.2 6.7 The Private Shares;I 42.44 NA NA 1.1
A look at how the Dow Jones Industrial Average component stocks FirstTr Dyn Euro Eq Inc FDEU 10.87 9.54 -12.2 -23.1 The Private Shares;L 41.37 NA NA 0.6 CION Ares Dvsfd Crdt;I NA NA NA 5.8
BlckRk Muni Inc Qly BYM 11.96 10.85 -9.3 6.3
Gabelli Multimedia GGT 3.63 6.16 +69.7 -24.0 Thirdline Real EstateI 10.13 NA NA 5.0 CION Ares Dvsfd Crdt;L NA NA NA 5.8
did in the past week and how much each moved the index. The DJIA BR MuniAssets Fd MUA 11.08 9.95 -10.2 5.4
GDL Fund GDL 9.86 7.93 -19.6 -6.5 USQ Core Real Estate:I 30.62 NA NA 18.8 CION Ares Dvsfd Crdt;U NA NA NA 5.7
gained 338.04 points, or 1.15%, on the week. A $1 change in the price BR MH Qly 2 MUE 10.96 9.75 -11.0 6.4
Highland Global Alloc HGLB 11.57 8.84 -23.6 1.2 USQ Core Real Estate:IS 30.66 NA NA 18.9 CION Ares Dvsfd Crdt:U2 NA NA NA 5.7
BR MuniHoldngs MHD 12.74 11.21 -12.0 6.4
of any DJIA stock = 6.59-point change in the average. To date, a India Fund IFN 17.57 15.76 -10.3 -19.9 Versus Cap MMgr RE Inc:I 30.35 NA NA NE CION Ares Dvsfd Crdt;W NA NA NA 5.8
BR MuniVest Fd MVF 7.50 6.56 -12.5 6.0
Japan Smaller Cap JOF 6.91 5.67 -17.9 -31.4 CNR Select Strategies 12.33 NA NA 0.0
$1,000 investment on Dec. 31 in each current DJIA stock component BR MuniVest 2 MVT 11.42 10.02 -12.3 6.6 Versus Capital Real Asst 26.45 NA NA 2.6
First Eagle Crdt Opps A 23.93 NA NA 7.3
LazardGlbTotRetInc LGI 14.38 13.26 -7.8 -26.9 BR MuniYield Fd MYD 11.31 9.96 -11.9 6.3 Wildermuth:A 13.39 NA NA 0.0
would have returned $24,849, or a loss of 17.17%, on the $30,000 Mexico MXF NA 13.22 NA -9.8 First Eagle Crdt Opps A2 23.93 NA NA NS
BR MuniYield Qlty MQY 12.42 11.04 -11.2 6.5 Wildermuth:C 12.67 NA NA -0.8
investment, including reinvested dividends. Miller/Howard High Inc E HIE 10.16 9.35 -8.0 -7.0 BR MuniYld Qlty2 MQT 11.00 9.94 -9.6 6.4 Wildermuth:I 13.53 NA NA 0.1
First Eagle Crdt Opps I 23.89 NA NA 7.9
MS ChinaShrFd CAF 16.27 13.55 -16.7 -31.9 BR MuniYld Qly 3 MYI 11.75 10.31 -12.3 5.9 First Trust Private Cr;I 9.81 NA NA NS
Income & Preferred Stock Funds
The Week’s Action MS India IIF 27.88 23.03 -17.4 -15.3 BNY Mellon Muni Bd Infra DMB 11.43 11.20 -2.0 5.5 FS Credit Income;A 11.28 NA NA 6.4
Alpha Alternative Assets 6.54 NA NA -21.9
Pct Stock price Point chg $1,000 Invested(year-end '21) MS CBRE Gl In Mg MEGI 13.93 11.88 -14.7 NS BNY Mellon Str Muni Bond DSM 6.29 5.74 -8.7 6.3 FS Credit Income;I 11.31 NA NA 6.6
Calamos L/S Eqty and DI CPZ 16.78 14.80 -11.8 -18.3
chg (%) change in average* Company Symbol Close $1,000 Templeton Dragon TDF 10.22 8.85 -13.4 -46.3 BNY Mellon Strat Muni LEO 6.56 6.04 -7.9 6.0 FS Credit Income;T 11.30 NA NA 6.1
Flat Rock Opportunity 18.91 NA NA -1.6
9.74 22.31 147.04 Amgen AMGN $251.34 $1,145 Templeton Em Mkt EMF 12.00 10.53 -12.3 -36.3 Del Inv Natl Muni Income VFL 11.30 11.14 -1.4 4.9 FS Credit Income;U 11.26 NA NA 5.8
Lord Abbett Spec Sit I:A 8.90 NA NA -8.2
9.50 8.43 -11.3 5.3 FS Credit Income;U-2 11.34 NA NA 6.4
8.91 2.72 17.93 Walgreens WBA 33.24 660 Prem12 Mo DWS Muni Inc KTF Lord Abbett Spec Sit I:I 8.90 NA NA -5.2 GL Beyond Income 0.44 NA NA NE
Fund (SYM) NAV Close /Disc Yld EVMuniBd EIM 10.97 9.65 -12.0 5.6 Variant Altrntv Inc:Inst 28.51 NA NA 8.6
5.68 6.11 40.27 3M MMM 113.63 659 EVMuniIncm EVN 10.87 9.65 -11.2 5.8 KKR CREDIT OPPTY;D NA NA NA 11.0
U.S. Mortgage Bond Funds Variant Impact;Instl 26.52 NA NA NS
5.23 4.58 30.19 Merck MRK 92.18 1,233 EVNatMuniOpp EOT 17.45 15.98 -8.4 4.5 KKR CREDIT OPPTY;I NA NA NA 9.2
BlckRk Income BKT 4.28 3.99 -6.8 9.4 Convertible Sec's. Funds KKR CREDIT OPPTY;T NA NA NA 8.4
4.92 5.21 34.34 JPMorgan Chase JPM 111.19 725 Invesco HI 2023 Tgt Term IHIT 8.49 7.88 -7.2 6.2 InvAdvMuIncTrII VKI 9.13 8.18 -10.5 6.7 Calmos Dyn Conv and Inc CCD 19.11 20.81 +8.9 -32.1
Invesco MuniOp OIA 6.08 5.73 -5.8 6.1 KKR CREDIT OPPTY;U NA NA NA 8.4
Investment Grade Bond Funds World Equity Funds Palmer Square Opp Inc 15.96 NA NA 7.1
4.28 9.97 65.71 McDonald’s MCD 243.16 922 Angel Oak FS Inc Trm FINS 14.96 12.55 -16.1 9.6 InvescoMuOppTr VMO 10.20 9.07 -11.1 6.5 ACAP Strategic:A 13.52 NA NA -45.5
InvescoMuTr VKQ 10.23 9.13 -10.8 6.4 The Finite Solar Finance 9.75 NA NA NS
4.09 6.42 42.31 Travelers TRV 163.30 1,061 BlRck Core Bond BHK 10.55 9.67 -8.3 8.8 ACAP Strategic:W 10.05 NA NA -45.0 Thrivent Church Ln&Inc:S 8.79 NA NA 3.2
BR Credit Alloc Inc BTZ 10.64 9.37 -11.9 10.5 InvescoQual Inc IQI 10.30 9.16 -11.1 6.3 CalamosGlbTotRet CGO 9.08 8.80 -3.1 -35.1
2.66 4.26 28.08 Johnson & Johnson JNJ 164.46 980 InvTrInvGrMu VGM 10.54 9.29 -11.9 6.4 World Income Funds
J Han Income JHS 11.28 10.33 -8.4 6.5 Primark Priv Eq Inv:I 10.95 NA NA -11.2 BlueBay Destra Itl E:A 22.78 NA NA 15.2
2.59 3.36 22.14 Boeing BA 133.15 661 MFS Intmdt MIN 2.99 2.75 -8.0 9.4 InvescoValMunInc IIM 12.64 11.46 -9.3 6.4 Sweater Cashmere 20.09 NA NA NS
MAINSTAY:MKDEFTRMUNOP MMD 16.39 15.60 -4.8 6.5 BlueBay Destra Itl E:I 22.78 NA NA 15.4
1.64 8.28 54.57 UnitedHealth Group UNH 513.13 1,032 Western Asset Inf-Lk Inc WIA 9.93 8.69 -12.5 21.8 Thornburg Inc Bldr Opps TBLD.O 14.91 12.88 -13.6 -21.0 BlueBay Destra Itl E:L 22.75 NA NA 14.9
Western Asset Inf-Lk O&I WIW NA 9.36 NA 15.0 NeubrgrBrm NBH 11.43 10.07 -11.9 6.6 VirtusTotalRetFd ZTR 6.37 5.93 -6.9 -22.9
Nuveen AMT-Fr Mu Val NUW 14.46 13.08 -9.6 3.5 BlueBay Destra Itl E:T 22.68 NA NA 14.7
1.60 0.71 4.68 Dow DOW 45.12 824 Loan Participation Funds Prem12 Mo Carlyle Tact Pvt Cred:A 8.24 NA NA 7.3
Apollo Senior Floating AFT 14.33 12.21 -14.8 8.2 Nuveen AMT-Fr Qlty Mun I NEA 11.94 10.64 -10.9 6.2
1.60 2.75 18.12 Honeywell HON 174.16 848 Nuveen AMT-Fr Mu CI NVG 12.68 11.39 -10.2 6.7 Fund (SYM) NAV Close /Disc Yld Carlyle Tact Pvt Cred:I 8.27 NA NA 7.8
BR Debt Strategy DSU 10.24 8.80 -14.1 8.1 Carlyle Tact Pvt Cred:L 8.23 NA NA 7.3
1.45 1.87 12.32 Walmart WMT 130.43 912 Nuveen Dyn Muni Opp NDMO 10.66 10.11 -5.2 8.9 U.S. Mortgage Bond Funds
BR F/R Inc Str FRA 12.58 11.07 -12.0 7.2 NA NA NA 0.0 Carlyle Tact Pvt Cred:M 8.27 NA NA 7.0
Nuveen Int Dur Mun Term NID 12.83 12.55 -2.2 4.5 Arca US Treasury
1.03 1.22 8.04 IBM IBM 120.04 932 BlackRock Floatng Rt Inc BGT 12.21 10.60 -13.2 7.1
Nuveen Mu Crdt Opps NMCO 11.39 11.02 -3.2 6.9 Ellington Inc Opp:A 8.36 NA NA 8.7 Carlyle Tact Pvt Cred:N 8.23 NA NA 7.9
0.86 Blackstone Sr Fl Rt Tm BSL NA 12.46 NA 7.1 Carlyle Tact Pvt Cred:U 8.28 NA NA NS
0.47 3.10 Coca-Cola KO 54.98 949 Nuv Muni Credit Income NZF 12.66 11.24 -11.2 6.5 Ellington Inc Opp:M 8.24 NA NA 9.6
Blackstone Strat Cr BGB NA 10.38 NA 7.6 Carlyle Tact Pvt Cred:Y 8.23 NA NA 7.6
NuvMuniHiIncOpp NMZ 10.39 10.04 -3.4 7.4 Loan Participation Funds
0.74 0.19 1.25 Intel INTC 25.91 516 Eaton Vance F-R 2022 TT EFL 8.66 8.63 -0.4 3.9 1WS Credit Income;A2 NA NA NA 6.9 Lord Abbett Cred Opps Fd 8.90 NA NA 7.6
Nuveen Muni Val NUV 8.93 8.39 -6.0 3.9
EtnVncFltRteInc EFT 12.48 10.92 -12.5 8.1 1WS Credit Income;Inst NA NA NA 6.8 Lord Abbett Cred Opps Fd 8.90 NA NA 8.4
0.65 0.81 5.34 Procter & Gamble PG 125.08 778 Nuveen Quality Muni Inc NAD 12.31 10.99 -10.7 6.3
EV SenFlRtTr EFR 12.29 10.78 -12.3 8.7 Nuveen Sel TF NXP 13.91 12.91 -7.2 4.1 AlphCntrc Prime Merid In 9.07 NA NA 11.7 Lord Abbett Crd Op:U 8.90 NA NA 7.6
0.45 0.39 2.57 Nike NKE 87.55 529 FT/Sr Fltg Rte Inc 2 FCT 10.87 9.53 -12.3 8.9 Oaktree Dvsfd Income;D 8.57 NA NA NS
PIMCO MuniInc PMF 9.20 10.59 +15.1 6.6 Axonic Alternative Inc NA NA NA 12.4
0.36 0.64 4.22 Caterpillar CAT 178.19 876 Highland Income HFRO 14.86 10.24 -31.1 9.5 PIMCOMuniIncII PML 8.48 9.57 +12.9 7.4 Blackstone FR EI D 20.73 NA NA 6.4 PIMCO Flexible EM I;Inst 7.69 NA NA NS
InvDYCrOpp:AX VTA 11.27 NA NA NA Pimco Muni III PMX 7.77 8.10 +4.2 7.1 Blackstone FR EI I 20.71 NA NA 6.6 National Muni Bond Funds
0.07 0.11 0.72 Chevron CVX 160.14 1,403 InvSnrIncTr VVR 4.17 3.72 -10.8 9.2 PioneerHilncAdv MAV 8.77 7.85 -10.5 6.4 Blackstone FR EI T 20.67 NA NA 6.1 Ecofin Tax-Adv Soc Impct 9.33 NA NA 4.9
–0.17 –0.07 –0.46 Cisco CSCO 40.20 654 Nuveen Credit Strat Inc JQC 5.80 4.95 -14.7 9.2 PionrMuniHiIncOppty MIO 11.81 10.22 -13.5 6.4 Blackstone FR EI T-I 21.18 NA NA 6.1 Lind Cap Pt Mun Cred Inc 8.55 NA NA NS
NuvFloatRateIncFd JFR 9.01 7.84 -13.0 8.8 PioneerMunHiIcm MHI 9.47 8.63 -8.9 5.8 Blackstone FR EI U 21.58 NA NA 6.1 Nuveen En HY Muni Bd:A1 7.04 NA NA 4.7
–0.36 –1.09 –7.18 Goldman Sachs GS 299.99 800 NuvFloatRteIncOppty JRO 8.94 7.77 -13.1 8.8 Putnam Mgd Inc PMM 6.19 5.80 -6.3 6.2 Bluerock HI Inst Crd:A 25.03 NA NA NS Nuveen En HY Muni Bd:A2 7.05 NA NA NS
–0.66 –1.21 –7.97 Visa V 182.62 847 Nuveen Senior Income NSL 5.29 4.53 -14.4 9.0 Putnam Muni Opp PMO 10.56 9.97 -5.6 6.5 Bluerock HI Inst Crd:C 25.03 NA NA NS Nuveen En HY Muni Bd:I 7.04 NA NA 5.7
High Yield Bond Funds RiverNorth Flx Mu Inc II RFMZ 14.97 13.14 -12.2 8.5 Bluerock HI Inst Crd:F 25.03 NA NA NS PIMCO Flex Mun Inc;A-3 9.45 NA NA 2.6
–1.22 –1.71 –11.27 Apple AAPL 138.38 783
AllianceBernGlHiIncm AWF 10.07 8.80 -12.6 8.8 RiverNorth Mgd Dur Mun I RMM 15.68 14.25 -9.1 7.6 Bluerock HI Inst Crd:I 25.03 NA NA NS PIMCO Flex Mun Inc:A1 9.45 NA NA 2.9
–1.28 –0.47 –3.10 Verizon VZ 36.38 739 Allspring Income Oppty EAD 6.83 5.96 -12.7 11.5 Western Asset Mgd Muni MMU 11.03 9.71 -12.0 4.8 BNYM Alcntr Glb MS Cr Fd 80.72 NA NA 9.6 PIMCO Flex Mun Inc;A2 9.45 NA NA 2.9
Barings Glb SD HY Bd BGH 14.09 11.99 -14.9 10.3 Single State Muni Bond CliffwaterClFd;I 10.49 NA NA 6.3 PIMCO Flex Mun Inc;Inst 9.45 NA NA 3.4
–1.58 –2.19 –14.43 American Express AXP 136.81 847 BR Corporate HY HYT 9.14 8.15 -10.8 10.9 BlackRock CA Mun BFZ 12.13 10.26 -15.4 5.0 CliffwaterElFd;A NA NA NA 7.4 Single State Muni Bond
–2.42 –5.68 –37.44 Microsoft MSFT 228.56 684 BlackRock Ltd Dur Inc BLW 13.11 11.76 -10.3 9.7 BR MH CA Qly Fd Inc MUC 11.94 10.54 -11.7 6.1 CNR Strategic Credit 7.90 NA NA 21.0 PIMCO CA FMI;Inst 9.66 NA NA NS
–2.78 –7.89 –52.00 Home Depot HD 276.43 679 Brookfield Real Asst Inc RA 15.24 16.80 +10.2 13.1
CrSuisHighYld DHY 1.98 1.71 -13.6 10.5
–2.79 –2.71 –17.86 Walt Disney DIS 94.45 610 DELAWAREIVYHIGHINCOPP IVH 11.25 10.01 -11.0 8.0
–5.37 –8.07 –53.19 salesforce.com CRM 142.22 560 DoubleLine Inc Sol DSL 11.72 10.79 -7.9 16.0
DoubleLine Yld Opps DLY 14.92 13.17 -11.7 10.3
Borrowing Benchmarks | wsj.com/market-data/bonds/benchmarks
*Based on Composite price. DJIA is calculated on primary-market price. First Tr Hi Inc Lng/Shrt FSD 12.29 10.56 -14.1 11.6
Source: Dow Jones Market Data; FactSet. First Trust HY Opp:2027 FTHY 15.53 13.24 -14.7 12.5
Money Rates October 14, 2022
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
Insider-Trading Spotlight guide to general levels but don’t always represent actual transactions.
Trading by ‘insiders’ of a corporation, such as a company’s CEO, vice president or director, potentially conveys Inflation Week —52-WEEK— Week —52-WEEK—
Latest ago High Low Latest ago High Low
new information about the prospects of a company. Insiders are required to report large trades to the SEC
Sept. index Chg From (%)
within two business days. Here’s a look at the biggest individual trades by insiders, based on data received by level Aug. '22 Sept. '21 U.S. government rates Other short-term rates
Refinitiv on October 14, and year-to-date stock performance of the company
Discount Week 52-Week
KEY: B: beneficial owner of more than 10% of a security class CB: chairman CEO: chief executive officer CFO: chief financial officer U.S. consumer price index Latest high low
ago
CO: chief operating officer D: director DO: director and beneficial owner GC: general counsel H: officer, director and beneficial owner All items 296.808 0.22 8.2 3.25 3.25 3.25 0.25
I: indirect transaction filed through a trust, insider spouse, minor child or other O: officer OD: officer and director P: president UT: Core 298.442 0.43 6.6 Call money
unknown VP: vice president Excludes pure options transactions Federal funds 5.00 5.00 5.00 2.00
International rates Effective rate 3.0800 3.0800 3.0900 0.0800
High 3.2500 3.2500 3.2500 0.0900 Commercial paper (AA financial)
Biggest weekly individual trades Week 52-Week Low 3.0500 3.0600 3.0600 0.0200 90 days 3.79 3.55 3.79 0.10
Based on reports filed with regulators this past week Latest ago High Low Bid 3.0700 3.0700 3.0800 0.0600
Offer 3.1200 3.0900 3.1200 0.0800
Libor
No. of shrs in Price range ($) $ Value
Date(s) Company Symbol Insider Title trans (000s) in transaction (000s) Close ($) Ytd (%) Prime rates One month 3.44300 3.31357 3.44300 0.08038
U.S. 6.25 6.25 6.25 3.25 Treasury bill auction Three month 4.19371 3.90871 4.19371 0.12363
Buyers Canada 5.45 5.45 5.45 2.45 Six month 4.68529 4.38471 4.68529 0.16050
4 weeks 3.250 2.920 3.250 0.020
Japan 1.475 1.475 1.475 1.475 One year 5.28314 4.99629 5.28314 0.27963
Oct. 5 TD SYNNEX SNX M. Miau DI 4,998 87.82 438,914 82.81 -27.6 13 weeks 3.510 3.340 3.510 0.045
Policy Rates 26 weeks 4.030 3.850 4.030 0.055 Secured Overnight Financing Rate
Oct. 12 Enviva EVA J. Ubben DI 200 49.90-51.75 10,138 48.03 -31.8
Oct. 12 T. Meth P 5 50.84 254 Euro zone 1.25 1.25 1.25 0.00 3.04 3.05 3.05 0.03
Oct. 12 W. Schmidt GC 5 50.18 252 Switzerland 1.00 1.00 1.00 0.00
Secondary market
Oct. 12 J. Keppler CEO 5 50.65 250 Value 52-Week
Britain 2.25 2.25 2.25 0.10 Latest Traded High Low
Oct. 10-11 Veris Residential VRE A. Katz A. DI 725 11.20-11.51 8,222 12.06 -34.4 Fannie Mae
Australia 2.60 2.60 2.60 0.10
Oct. 10-11 M. Nia CEOI 87 11.38-11.53 996 30-year mortgage yields DTCC GCF Repo Index
Sept. 30 Dragonfly Energy Holdings DFLI J. Grossman CEOI 485 10.36 5,025 Overnight repurchase 30 days 6.410 6.337 6.485 2.452 Treasury 3.052 32.960 3.065 0.015
Sept. 30 K. Propper DI 485 10.36 5,025 U.S. 3.04 3.07 3.09 0.01 60 days 6.539 6.446 6.625 2.477 MBS 3.100 27.500 3.175 0.018
Oct. 6 TeraWulf WULF B. Pascual BI 1,587 1.78 2,825 1.09 -92.8
Oct. 10-12 Rocket Cos. RKT J. Farner CEO 90 6.66-6.77 602 6.67 -52.4 Notes on data:
Oct. 6-7 J. Farner CEO 59 6.56-7.02 399 U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks, and is effective September 22, 2022. Other prime
Oct. 7-10 CalAmp CAMP W. Cummins DI 150 3.95-4.04 602 3.25 -54.0 rates aren’t directly comparable; lending practices vary widely by location; Discount rate is effective September 22, 2022. Secured Overnight Financing
Rate is as of October 13, 2022. DTCC GCF Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs.
Oct. 10 Douglas Elliman DOUG H. Lorber CEO 100 3.99 399 4.61 -59.9 Value traded is in billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET.
Oct. 7-10 M. Liebowitz DI 100 3.92-3.93 392
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; FactSet;
Oct. 12 Dave & Buster's Entertainment PLAY L. Lehner O 12 32.81 399 33.41 -13.0 Tullett Prebon Information, Ltd.
Oct. 11 Coinbase Global COIN T. Lutke DI 6 67.61 373 63.59 -74.8
Oct. 7 BRT Apartments BRT J. Gould CEOI 15 18.96-19.25 289 20.25 -15.6
Cash Prices | wsj.com/market-data/commodities Friday, October 14, 2022
Sellers These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
Oct. 5 TD SYNNEX SNX M. Miau DI 4,998 87.82 438,914 82.81 -27.6 separate from the futures price on an exchange, which reflects what the commodity might be worth in future
Oct. 6-11 AutoNation AN E. Lampert B 573 100.39-104.58 58,148 101.34 -13.3 months.
Oct. 11 AutoZone AZO W. Rhodes CEO 15 2260.17-2287.44 33,001 2255.17 7.6
Friday Friday Friday
Oct. 6-11 W. Rhodes CEO 11 2218.57-2278.42 24,219
Iron Ore, 62% Fe CFR China-s 96.2 Wheat,Spring14%-pro Mnpls-u 11.4425
Oct. 5-7 Molina Healthcare MOH J. Zubretsky CEO 89 342.95-356.32 31,125 351.86 10.6 Energy Shredded Scrap, US Midwest-s,m n.a. Wheat,No.2 soft red,St.Louis-u 7.7475
Oct. 6-7 Palo Alto Networks PANW J. Goetz D 154 170.34-174.77 26,591 154.83 -16.6 Coal,C.Aplc.,12500Btu,1.2SO2-r,w 204.950 Steel, HRC USA, FOB Midwest Mill-s 760 Wheat - Hard - KC (USDA) $ per bu-u 10.1725
Oct. 7 1Life Healthcare ONEM A. Rubin CEO 1,371 17.03 23,348 17.02 -3.1 Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 16.250 Battery/EV metals Wheat,No.1soft white,Portld,OR-u 9.2000
Oct. 10-11 Dropbox DBX A. Houston CEO 990* 20.12-21.15 20,147 20.17 -17.8 Metals BMI Lithium Carbonate, EXW China, =99.2%-v,w 72875 Food
BMI Lithium Hydroxide, EXW China, =56.5% -v,w 71900
Oct. 5-6 Moderna MRNA S. Bancel CEO 90* 122.40-126.31 11,206 134.00 -47.2 Beef,carcass equiv. index
Gold, per troy oz BMI Cobalt sulphate, EXW China, >20.5% -v,m 8601
Oct. 6 First Watch Restaurant Group FWRG T. Glynn DI 675 14.80 9,992 15.21 -9.2 Engelhard industrial 1665.00 BMI Nickel Sulphate, EXW China, >22%-v,m 5464 choice 1-3,600-900 lbs.-u 225.88
Oct. 6 M. White DI 675 14.80 9,992 Handy & Harman base 1649.30 BMIFlakeGraphite,FOBChina,-100Mesh,94-95%-v,m 770 select 1-3,600-900 lbs.-u 197.71
Oct. 11 NVIDIA NVDA M. Stevens DI 85 115.80-117.66 9,902 112.27 -61.8 Handy & Harman fabricated 1830.72 Broilers, National comp wtd. avg.-u,w 1.2174
LBMA Gold Price AM *1676.40
Fibers and Textiles Butter,AA Chicago-d 3.1750
Oct. 5-7 Cloudflare NET M. Prince CEOI 157 55.48-62.60 9,279 45.70 -65.2 Cheddar cheese,bbl,Chicago-d 212.50
LBMA Gold Price PM *1648.10 Burlap,10-oz,40-inch NY yd-n,w 0.7550
Oct. 3 JAZZ Pharmaceuticals JAZZ B. Cozadd CEO 45 134.02-135.80 6,097 133.21 4.6 Cheddar cheese,blk,Chicago-d 205.00
Krugerrand,wholesale-e 1717.09 Cotton,1 1/16 std lw-mdMphs-u 0.8615
Oct. 11-13 Keurig Dr Pepper KDP R. Gamgort OD 150 38.00-38.02 5,702 37.33 1.3 Maple Leaf-e 1758.17
Milk,Nonfat dry,Chicago lb.-d 149.00
Cotlook 'A' Index-t *102.65 Coffee,Brazilian,Comp-y 1.9651
Oct. 5 LPL Financial Holdings LPLA D. Arnold CEO 20 240.27 4,805 238.54 49.0 American Eagle-e 1758.17 Hides,hvy native steers piece fob-u n.a. Coffee,Colombian, NY-y 2.6782
Mexican peso-e 2119.83 Wool,64s,staple,Terr del-u,w n.a.
Oct. 11-13 Tricida TCDA B. Isern BI 360 11.99-12.53 4,433 12.28 28.5 Eggs,large white,Chicago-u 3.5150
Austria crown-e 1613.62
Oct. 10 Arista Networks ANET K. Duda O 40* 106.73-116.72 4,318 100.37 -30.2 Grains and Feeds Flour,hard winter KC-p 23.55
Austria phil-e 1725.31
Hams,17-20 lbs,Mid-US fob-u 1.14
* Half the transactions were indirect **Two day transaction Silver, troy oz. Barley,top-quality Mnpls-u n.a. Hogs,Iowa-So. Minnesota-u 92.27
p - Pink Sheets Engelhard industrial 19.0500 Bran,wheat middlings, KC-u,w 232 Pork bellies,12-14 lb MidUS-u 1.4743
Handy & Harman base 18.2650 Corn,No. 2 yellow,Cent IL-bp,u 6.6500 Pork loins,13-19 lb MidUS-u 1.2425
Handy & Harman fabricated 22.8310 Corn gluten feed,Midwest-u,w 219.9 Steers,Tex.-Okla. Choice-u 145.00
Buying and selling by sector LBMA spot price *£17.1900 Corn gluten meal,Midwest-u,w 659.0 Steers,feeder,Okla. City-u,w 175.00
(U.S.$ equivalent) *19.1750 Cottonseed meal-u,w 475
Based on actual transaction dates in reports received this past week Coins,wholesale $1,000 face-a 18942 Hominy feed,Cent IL-u,w 198 Fats and Oils
Other metals Meat-bonemeal,50% pro Mnpls-u,w 368 Degummed corn oil, crude wtd. avg.-u,w 64.0000
Sector Buying Selling Sector Buying Selling LBMA Platinum Price PM *873.0 Oats,No.2 milling,Mnpls-u 4.2775 Grease,choice white,Chicago-h 0.7350
Basic Industries 756,617 1,979,656 Finance 14,734,309 9,340,052 Platinum,Engelhard industrial 916.0 Rice, Long Grain Milled, No. 2 AR-u,w 34.25 Lard,Chicago-u n.a.
Capital Goods 10,369,750 2,751,525 Health care 2,208,720 91,864,116 Palladium,Engelhard industrial 2103.0 Sorghum,(Milo) No.2 Gulf-u n.a. Soybean oil,crude;Centl IL-u,w 0.6855
Aluminum, LME, $ per metric ton *2374.0 SoybeanMeal,Cent IL,rail,ton48%-u,w 480.50 Tallow,bleach;Chicago-h 0.7400
Consumer durables 197,047 685,569 Public Utilities 1,116 984,645 Copper,Comex spot 3.4505 Soybeans,No.1 yllw IL-bp,u 13.5300 Tallow,edible,Chicago-u 0.8850
Consumer non-durables 283,980 6,141,394 Technology 2,200 95,045,657
Consumer services 1,291,857 32,438,378 Transportation 0 0 KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; D=CME; E=Manfra,Tordella & Brookes; H=American Commodities Brokerage Co;
Energy 73,944 3,900,414 K=bi-weekly; M=monthly; N=nominal; n.a.=not quoted or not available; P=Sosland Publishing; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; V=Benchmark
Mineral Intelligence; W=weekly; Y=International Coffee Organization; Z=not quoted. *Data as of 10/13
Sources: Refinitiv; Dow Jones Market Data Source: Dow Jones Market Data
B8 | Monday, October 17, 2022 THE WALL STREET JOURNAL.

HEARD STREET ON
THE
FINANCIAL ANALYSIS & COMMENTARY

Peloton Rows for Broke Peloton Interactive share price

$175

150
40,000
Worldwide desktop
views for rower pages
on onepeloton.com by
date since Peloton
Row’s preorder launch
30,000
What’s at stake amid Peloton’s latest premium hardware launch? Everything 125

100
The stakes have never been data, a Morgan Stanley analysis At a Goldman Sachs conference 20,000
higher for Peloton’s Chief Execu- shows that, after Peloton’s web traf- last month, Mr. McCarthy said he 75
tive Barry McCarthy. He has to fic fell 41% year on year for its June was “over the moon, excited” about
hope his efforts don’t go from quarter, traffic in September was the potential for this “fitness-as-a- 50
good, to better to bust. down 34% to “the lowest absolute service” offering, but said he worries 10,000
An Oct. 6 Wall Street Journal arti- traffic level since the start of Covid.” about it initially being profitable. He 25
cle based on an interview with Mr. Especially concerning, according to said he is nervous it will be a prod-
McCarthy suggested he was giving analyst Lauren Schenk, is such met- uct everyone wants but “the eco- 0 0
Peloton about six more months to rics buck the usual seasonal trends nomics are going to blow us up” be-
prove itself as a viable stand-alone for the business, with September cause the offering can’t immediately 2021 ’22 Sept. 19 Oct. 9
company. Mr. McCarthy later clari- traffic showing sequential declines earn money. Sources: FactSet (share price); Similarweb (views)
fied that there is “no time clock nip- for the first time. The solution for that seems to be
ping at our heels,” adding that if his Data from M Science shows sub- a continued reliance on Peloton’s ing economic backdrop suggests fail- new availability through outside
comments to the Journal suggested scriber churn reaccelerated in Sep- premium hardware. Its rower, which ure isn’t an option. YipitData shows channels like Amazon, Peloton has
there could be, then he misspoke. tember after improving in August. became available last month for pre- the rower’s preorders contributed been brought to the masses. That
After a whirlwind of business The firm is expecting a net loss of order, is priced at nearly $3,200 about 30% of Peloton’s gross con- doesn’t make every customer equally
changes since he took the helm in 7,000 connected fitness subscribers with no financing available—more nected fitness-product orders in valuable to its business, though.
February, Mr. McCarthy’s goals sug- for the period ended Sept. 30 on a than twice the cost of its lower- September, noting its initial contri- The way Peloton gets mocked in
gest Peloton continues to face near- sequential basis. Pelotons guidance priced bike and nearly as much as bution as a percentage of total or- popular culture reflects the shift in
term pressure. He is targeting break- suggested no change. its treadmill. It is part of Mr. McCar- ders was more substantial than its mood. A Simpsons episode this
even cash flow by the end of June Under Mr. McCarthy, Peloton has thy’s “good, better, best” strategy latest treadmill launch was last year. month shows Marge toiling at self-
after burning more than $2.3 billion been shifting away from its expen- which he believes can expand Pelo- Similarweb data suggest that ex- assembly of her new “Pedalon” bike,
in the previous fiscal year. And, de- sive hardware roots toward higher ton’s market size by servicing the citement was temporary. Worldwide only to hear her instructor declare in
spite that Peloton logged six straight margin subscription revenue. But, as gamut of customers from the cost- daily desktop visits to Peloton’s her first class, “I care about all of
quarterly losses, including a $1.2 bil- it works to expand beyond its initial conscious to those for whom money rower pages spiked Sept. 20 (the you. Except for the woman on the
lion loss in the most recent quarter, affluent customer base, he has intro- is no object. Peloton controls more day preorders became available) to bottom left [of the screen]. Your
he is setting his sights on growth. duced a bundled subscription plan than 70% of the shrinking premium nearly 37,000 but dwindled to well credit card was declined.”
So far, not so good, third-party that includes content and hardware connected fitness market. under 1,000 by Oct. 8. With its digi- Investors might want to start that
data suggest. Citing Similarweb for one affordable price. The rower’s price amid a worsen- tal app, bundled subscriptions, and time clock after all. —Laura Forman

Less-Crowded Covid Wards Can Keep Boosting Health Insurers

While a distressingly high number weak session for stocks overall. 40,000 for much of the year. staffing costs to insurers. But the in- enrolled in Medicare Advantage
of Americans are still being hospital- Management at other large insur- A closely watched metric known surance market is relatively concen- grew to 50% today from 25% a de-
ized daily for Covid-19, the number ers such as CVS Health, which in- as the medical loss ratio, or MLR, trated, giving companies pricing cade ago. Tim Noel, CEO of United-
dropped off in recent months. That cludes Aetna, and Humana has like- came in at 81.6% for UnitedHealth— power to pass much of that on in Healthcare’s Medicare & Retirement
helped drive a 28% rise in profit for wise signaled utilization might be better than what analysts expected the form of higher commercial pre- division, told analysts he likes his
the U.S.’s largest health insurer in trending favorably in the second half and lower than the 83% figure in the miums. Employer health premium “chances to outperform the indus-
the third quarter, and there are of the year, which could “translate same quarter last year. The lower rates are set to rise about 6.5% in try in 2023.” The catch for investors
other factors boosting growth, too. into EPS upside for managed care,” the MLR figure, the better for profits 2023 compared with a 3.9% rise this is UnitedHealth trades at a big pre-
From a financial standpoint, wrote JPMorgan’s Lisa Gill. because it represents the share of year, according to Scott Fidel, a mium to peers and stocks generally,
fewer hospitalizations have bene- Hospitals are where healthcare total healthcare premiums spent on healthcare analyst at Stephens Inc. fetching 21 times forward earnings,
fited margins for UnitedHealth costs are highest, and nearly 100,000 such things as medical claims. UnitedHealth outperformed its compared with 15.9 times for the
Group. It raised its profit outlook for Americans were hospitalized at the Not every big-picture trend is peers in grabbing market share in S&P 500. Julie Utterback, an analyst
the year Friday after posting a 12% peak of the Delta variant wave in the helpful. During a call with investors the Medicare Advantage space while at Morningstar, said investors seek-
increase in third-quarter revenue summer of 2021. That number Friday, UnitedHealth Chief Executive scaling up its Optum Health unit, ing to profit from managed-care
and handily beating analysts’ con- peaked this January at about Andrew Witty stressed medical costs which is benefiting from the growth growth might be able to find better
sensus estimates. Its shares rose 150,000 during the Omicron wave, will rise at a higher pace next year in value-based care. During the call, value with Cigna, CVS, Centene, Ele-
moderately Friday during a very but stabilized at around 20,000 to as hospitals pass on some higher Mr. Witty noted the share of seniors vance and Humana. —David Wainer

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with today

JOURNAL REPORT

5G TECHN OGY Monday, October 17, 2022 • THE WALL STREE NAL
ANDRÉ CARRILHO

T
HE DECADES-OLD satellite industry
is setting its sights on a target that
until lately looked unreachable: the
everyday smartphone.
A host of aerospace Better technology has convinced a
companies and startups are who’s-who of aerospace stalwarts—
plus some startups barely a few years
vying to develop satellite old—to develop satellite networks that
can talk to smartphones and other small gadgets on
networks that can talk to the ground. Among their most ambitious long-term
smartphones goals, which some industry executives call far-
fetched, is a fifth-generation mobile internet con-
BY DREW FITZGERALD nection that glides seamlessly between cellphone
Please turn to page R2
Fast.
Inside Reliable.
Secure.
Scan this code to watch a video on
how Google Maps
A GLIMPSE OF THE FUTURE
has evolved, using
A private 5G network extensive databases
enables autonomous of information to
robots to deliver lunch to create accurate maps.
workers at a South
Korean company R8

A Slow Start
Despite their huge potential, 5G-enabled
internet-of-things devices aren’t ubiqui-
tous yet R9
R2 | Monday, October 17, 2022 THE WALL STREET JOURNAL.

JOURNAL REPORT | 5G TECHNOLOGY

proved satellite technology and Companies with an ample from a regulatory perspective is Gates and telecom entrepreneur
cheaper rockets are the key fac- supply of cheap satellites still totally avant-garde,” Globalstar Craig McCaw, collapsed after
tors enabling satellite companies face a technical challenge listen- Chairman Jay Monroe says. then-partner Motorola pulled out
to target the mobile-device mar- ing for small devices designed to “They have to go to regulatory of the project in 1999. TerreStar,
ket en masse. But the proposals talk to cell towers that are only a authorities across the globe. It’s another satellite-internet
The Race for the still demand billions of dollars of
investment to succeed.
few miles away. Satellites whirl-
ing at least a couple of hundred
a heavy lift.”
Scott Wisniewski, AST Space-
startup, filed for bankruptcy pro-
tection in 2010 and was later
Satellite-Based The first space-based commu-
nications satellites in the 1960s
miles above the ground need es-
pecially sensitive antennas, and
Mobile’s chief strategy officer,
says his company’s growing list
swallowed by TV company Dish
Network Corp. Iridium and
Market for 5G followed geostationary orbits many of them, to serve a large of deals with cellphone carriers Globalstar’s networks both
perched more than 22,000 miles number of connected devices. like Vodafone Group PLC will avoided liquidation only after
Smartphones above the equator. The first suc- Aerospace companies are tak- pave the way for worldwide ser- the companies trimmed their
cessful internet satellites occu- ing different approaches to the vice. “All of telecom is regulated debt loads through the bank-
pied the same lofty space. power-over-distance problem. and getting licenses is normal ruptcy process.
Continued from page R1 That position maintains a con- AST plans to deploy more than course,” he says, adding that They also depend heavily on
towers near civilization and sat- stant position in the sky by sync- 100 foldable satellites nearly as “regulators are accustomed to revenue from the U.S. military
ellite beams out in the sticks. ing with the Earth’s rotation, al- wide as a tennis court to pick up talking to satellite operators in and other government customers
Apple Inc. made a down pay- lowing for a wide coverage area. relatively faint signals on the ways that they weren’t 10 years to keep the lights on.
ment on that dream in Septem- But the long-distance links put ground. Omnispace plans mid- ago.” Deeper-pocketed Amazon.com
ber when it unveiled Emergency high power demands on both size satellites as big as small The rivalry between cellphone Inc. has said its planned 3,200-
SOS via satellite, an iPhone fea- satellites and the devices linking cars, while Lynk’s plan calls for carriers and satellite operators satellite network, will cost more
ture that can send distress sig- to them on the ground. The sig- more than 5,000 smaller satel- has eased as new technology al- than $10 billion to start. And Mr.
nals from anywhere in the U.S. nals also take more than 500 lites about a yard across. lowed them to offer more ap- Musk has said SpaceX, which pi-
and Canada. Apple agreed to pay milliseconds to make a round pealing services, says Patricia oneered the business of low-cost
satellite company Globalstar Inc. trip—an eternity for modern in- Cooper, a former SpaceX execu-
up to $230 million next year for ternet applications. License to bill tive who previously led the Sat-
most of its network capacity, ac- Other companies split the dif- Satellite executives need more ellite Industry Association. SpaceX founder Elon Musk
cording to securities filings. Ap- ference through medium-Earth than just engineering know-how “They’re two sectors that speaks during a T-Mobile and
ple plans to launch the feature in orbits closer to the surface. and bundles of cash to get their have kind of been pitted against SpaceX joint event in August in
November. Those spheres often demand networks off the ground. They each other in the early spec- Boca Chica Beach, Texas..
Apple is just one company
getting into the satellite-smart-
phone business. Globalstar rival
Iridium Communications Inc. has
said that it is developing a
smartphone-capable service of
its own with an unnamed part-
ner. And smartphone maker Hua-
wei Technologies Inc. says its
newest handsets can send one-
way emergency messages
through China’s Beidou global
positioning system.
Such virtual emergency flares
are a far cry from phone calls
and text messages, let alone 5G
service, provided from space.
Squeezing high-speed internet
access into an affordable satel-
lite-linked smartphone is an
even steeper technical challenge.
Smartphones could also need
better components and software
to effectively reach moving tar-
gets.
“I’m personally a bit of a
skeptic,” says Iridium Chief Ex-
ecutive Matt Desch, calling such
seamless connections “not a ser-
vice that the public will see for
at least a few years.” A more
feasible goal, he says, includes
satellite-based text messages
that work as well on a smart-
phone as they do on the special-
ized satellite phones available to-
day.

Cash in orbit
The stakes of such a wager are
high for satellite ventures that heavy, hardened equipment to also need permission. trum-acquisition wars,” she says. launches partly with help from
typically spend several billion protect against solar radiation in Companies must navigate a “There was this sense of a zero- government contracts, will need
dollars apiece just to launch a zone known as the outer Van thicket of domestic and interna- sum game.” to lower the cost of sending pay-
their networks. The potential re- Allen belt. tional regulations that control loads aloft even further for Star-
wards from reaching even a Most of the space companies not only the satellites they link to become cash-flow posi-
sliver of the world’s more than now targeting the mobile market launch but also the voice and Beware falling rockets tive.
six billion smartphones are like- operate in a low-Earth altitude data services they plan to offer. Capital markets aren’t the only SpaceX, formally called Space
wise rich, assuming that compa- of 1,200 miles or less that lets The International Telecommu- crowded sphere for satellite Exploration Technologies Inc., al-
nies are able to make their ser- them fly close to their customers nication Union, a United Nations startups; space itself is filling up. ready generates revenue provid-
vices work on a global scale. on the ground. Such orbits hur- agency, oversees the registration The expanse is littered with dead ing broadband to homes, busi-
Several other satellite compa- tle through space at more than of satellite fleets that by their satellites and debris that haven’t nesses and other users with a
nies are trying to grab a share of 17,000 miles an hour, requiring a nature cover many countries. yet fallen to Earth. satellite dish for monthly rates
the cellular market. SpaceX, the swarm of satellites to keep any Companies that want to put up a Such junk traveling at thou- of $110 or more. Expanding that
rocket company led by entrepre- spot on Earth covered for more satellite fleet must go to the ITU sands of miles an hour could business to phones, cars and
neur Elon Musk, in August said than a few minutes. to register themselves, then usu- knock out active satellites with- other moving targets costs more
it will join with T-Mobile US Inc. Companies like Iridium and ally they must get a license from out careful planning. The cov- to maintain and could generate
to make its Starlink service com- Globalstar maintain a few dozen the countries that their satellites eted low-Earth segment is an es- less revenue per user, though it
patible with the U.S. cellphone satellites to reach their custom- cover. National agencies also pecially tricky place for would serve a bigger pool of po-
carrier’s network. The compa- ers, who rely on them for phone govern service through regula- transmitters that must be close tential customers.
nies said they would begin test- and text-message services for tions that tend to benefit first enough to the surface to reach “What are you going to charge
ing the service before the end of planes and ships, in disaster- movers that have already customers yet far enough away them for it if you’re spending
2023. Startups including AST stricken areas and on off-road launched satellites. from the atmosphere to avoid $10 billion to provide it?” Irid-
SpaceMobile Inc., Omnispace adventures. More data-intensive Globalstar and Iridium have prematurely burning up. ium’s Mr. Desch says. “There are
LLC and Lynk Global Inc. are internet services like Starlink amassed licenses in many coun- “The big challenge right now a lot of people thinking about
is environmental. Low-Earth or- how to best price this.”
bit is just a massive dandruff of Iridium doesn’t have to solve
orbital debris,” says Gerry the pricing problem because its
Any true mobile-to-satellite service must overcome basic Oberst, a senior counsel at law partners will offer the mobile
firm Hogan Lovells who deals service, Mr. Desch says. Several
challenges. Companies will need more-powerful smartphones, with telecom regulations. A cas- industry executives say future
more-sensitive satellites or a combination of both to make high- cading series of collisions could satellite service could come as
create a bigger field of junk that an add-on subscription that
speed data from space fit into a regular consumer’s palm. “could ruin access to space in smartphone makers or cellphone
the first place,” he adds. carriers charge.
Government authorities More-bullish market analyst
launching new businesses target- and Kuiper, a planned constella- tries to transmit data over lower worldwide are tackling the prob- New Street Research estimated
ing the mobile-device opportu- tion from Amazon.com Inc., will frequencies that are considered lem with new regulations. The that a truly “seamless” satellite-
nity. Older satellite companies require thousands of satellites better suited for reaching the Federal Communications Com- to-phone service with voice and
Inmarsat Inc. and Viasat Inc. operating in tandem. smallest gadgets on the ground. mission in September proposed data would be worth as much as
have justified a proposed merger Starlink already provides ITU registration doesn’t pre- new rules that would limit the $20 billion a year in the U.S. and
partly on the mobile opportunity, broadband internet access to vent new satellite companies lifespan of low-Earth orbit satel- many times that around the
arguing their combined scale will customers in homes, boats and from using the same airwaves, lites to five years, after which world. Recent interest from
help them compete. And OneWeb recreational vehicles. That ser- though it often creates a new they must drift or move them- SpaceX and Apple shows the
Ltd. and Telesat Corp. executives vice requires users to install a hurdle for companies that must selves into a controlled burn-up market’s promise, the firm wrote
have discussed expanding their pizza box-sized dish with a view show their new fleets won’t in- in the atmosphere. Earlier, ad in a recent note to clients.
services to address cellphones. of the sky to connect. terfere with other satellites al- hoc rules set no common limits “With Apple joining the fray,”
Starlink had more than 3,000 ready using the airwaves. That for the satellites. the firm said, “two trillion dollar
satellites active in early October, leeway has allowed SpaceX’s “Given an unlimited time, companies would now seem to
The challenges but even that figure might not broadband business to flourish there will be a lot of satellites— agree that the opportunity could
Any true mobile-to-satellite ser- be enough to satisfy its data- despite its lack of primary li- as long as we don’t turn space be massive.”
vice must overcome basic chal- hungry customers. Starlink’s censes. into an asteroid belt,” says Greg —Micah Maidenberg
lenges. Today’s satellite phones download speeds dipped in sev- But many countries require Wyler, a longtime satellite-indus- contributed to this article.
demand big battery packs pow- eral countries over the second newcomers to demonstrate that try executive who now leads a
MICHAEL GONZALEZ/GETTY IMAGES

ering large antennas to reach quarter, a likely side effect of us- their plans won’t interfere with startup called E-Space. Mr. FitzGerald is a Wall Street
their targets in the sky. Compa- ers crowding the network in ar- existing space networks already Journal reporter in Washington,
nies will need more-powerful eas with strong customer operating. Established satellite D.C. He can be reached at
smartphones, more-sensitive sat- growth, according to measure- companies say the approvals Cash crunch [email protected].
ellites or a combination of both ment company Ookla Inc. they accumulated over the years The history of the satellite busi- Mr. Maidenberg, a Wall Street
to make high-speed data from A SpaceX spokesman didn’t put them ahead of newer start- ness is littered with high-cost fi- Journal reporter in Washington,
space fit into a regular con- respond to requests for com- ups. nancial failures. Teledesic, a sat- D.C., can be reached at
sumer’s palm. Engineers say im- ment. “What they’re trying to do ellite constellation backed by Bill [email protected].
THE WALL STREET JOURNAL. Monday, October 17, 2022 | R3

JOURNAL REPORT | 5G TECHNOLOGY

Destination:
Earth Improving technology and
ample financing are fueling
billions of dollars of
investments in new satellite fleets designed to connect Circling the prize
ordinary customers back on Earth. Some aerospace Companies looking to build a network
companies are expanding systems they’ve already built, in space can launch their satellites
while other ventures are still planning their networks. into three kinds of orbits around the
Earth. Each path comes with its own
The upshot: Outer space is getting more crowded. advantages and drawbacks.

High fliers
The realm of TV broadcasters, weather
researchers and spy agencies, geostationary
satellites soar more than 22,000 miles above
the equator at nearly 6,900 miles an hour,
putting them in sync with the Earth's
rotation. That position lets a single satellite
cover a wide area, but long distances cause
slow internet data transfers and make it
harder for low-powered devices like
smartphones to communicate. EchoStar,
Inmarsat, Intelsat, Viasat and Telesat are Cost into space
among the internet providers that reach Public market investors
homes and businesses from these orbits.
and venture-capital firms
are plowing growing
sums of money into the
satellite communications
Along the median sector in recent years.
Medium Earth orbits hold communications
satellites as well as nation-sponsored
navigation systems like GPS. They fly
between 1,200 and 22,000 miles above the Satellite deal count
Earth through the outer Van Allen belt, a
disruptive solar-radiation zone that demands
heavy shielding to protect sensitive Year to date:
electronics. Some telecom companies like
350
263*
OneWeb and SES use these orbits to get a
wide coverage area, often in tandem with
other satellites at other altitudes.
300

Note: Coverage areas may not be exact

250

Close encounters 200

Many new communications companies aim for

a low Earth orbit at an altitude of under 1,200 150
miles at speeds above 17,000 miles an hour.
The close-in routes let spacecraft come as near 2017 ’18 ’19 ’20 ’21 ’22
to their customers as possible without hitting
the atmosphere, though they burn up in the sky
after a few years. Globalstar, Iridium and Satellite deals value
SpaceX's Starlink use low-flying orbits.
Amazon, AST SpaceMobile, Lynk Global and $7.1 billion*
Telesat are among the firms planning new
fleets in the same region. Lateral pass
$6 billion
Satellite operators are
Low Earth orbit coverage area testing how radio waves and
lasers can pass information
Satellite among satellites before it 4
constellation reaches the ground.

0
2017 ’18 ’19 ’20 ’21 ’22

Communication satellite
launches
1652†
1500

1000

Staying grounded 500

Most mobile devices connect to the

internet through Wi-Fi networks or
cellphone towers. Cellular networks
0
don’t cover all of the globe, but their
links to fiber-optic cables in the 2017 ’18 ’19 ’20 ’21 ’22
ground help them carry calls, stream
video and download software more
*As of Oct. 7. †As of Oct. 1.
cost-effectively than satellites. Source: PitchBook (deal count and value);
Jonathan McDowell's space object catalog (launches)

Phone home Levels of Service Build a better bird

Aerospace companies have long been able to beam data to dish-shaped Some space networks Satellite companies are improving the machines they launch into orbit by
antennas on the ground. Trading large amounts of data with a palm-sized can swap texts and other investing in research and development. New space ventures are also enjoying
smartphone is a different matter. short messages with economies of scale by placing big orders with parts makers or mass
smartphones. More producing individual components in-house.
Battery demanding tasks like
In-phone phone calls often require Tracking and
antennas control antenna
specialized satphones.
Solar Array
New ventures want to
enrich satellite service with
basic internet connections
Antenna
direct to smartphones, cars reflector
and other mobile
devices–fast enough for Propulsion
email, web browsing and tank
Software phone calls but too slow for
and circutry
streaming video.
Batterries
The most ambitious
Phone enhancing satellite companies aim to Satellite challenges
Smartphone makers like Apple have will also put new demands on recreate the experience of Engineers are improving satellites towers found on Earth.
developed specialized software that in-phone antennas originally a 5G wireless with more-sensitive antennas to Next-generation satellites must
allows regular smartphones to track designed for cellphone towers a few network–good enough for pick up relatively faint signals from also use precise propulsion
fast-moving satellites in the sky and miles away. Newer smartphone video calls, live sports and small devices on the ground. Some systems to stay on track and
ensure important distress messages circuitry could also include room for other apps–in areas that companies offer proprietary more-capable solar arrays and
reach their destination. Future radio frequencies specifically cell towers can’t reach. communications systems, while batteries to meet increasing power
satellite-to-smartphone technology intended for satellite links. others mimic standardized 5G cell demands.
Note: Not to scale
Sources: NASA; Inmarsat; Researchgate.com; PBKreviews.com; Congressional Research Service Drew FitzGerald and Kevin Hand/THE WALL STREET JOURNAL
R4 | Monday, October 17, 2022 THE WALL STREET JOURNAL.

JOURNAL REPORT | 5G TECHNOLOGY

A technician testing a second-generation

Globalstar satellite in 2010.

Satellite Mobile Phones Blasts From

Satellite’s Past

Have a Long—and Not 1990 | Motorola announces Irid-

ium, a satellite-telecommunica-
tions company with worldwide

So Illustrious—Past
coverage for their satellite-
phone service.

In 1990, Motorola announced plans ple’s and T-Mobile’s reliance areas, in war zones like
on satellite systems that have Ukraine and disaster areas
for the first mobile satellite phone. It other sources of income, like that have had service knocked
took a long time to actually happen. internet service and contracts out.
1991 | Loral Corp. and Qual-
with governments, will help Some of the new hype
comm launch Globalstar, a joint
BY JACKIE SNOW defray costs. Yet regardless of around satellite-phone service venture that also promises sat-
the cost savings, space-based looks like a lot of what ellite service for mobile-phone
connectivity still won’t replace plagued the first satellite-

W
users.
the network cellphones rely on phone space race, according to
HEN cell- ment approval for those today. Iridium Chief Executive Matt
1994 | Teledesic, with funding
phones first launches, as well as the spec- “Satellites are not a rival to Desch, who says his company from telecom billionaire Craig
started to trum needed for service, terrestrial networks,” Mr. should serve as a cautionary McCaw, Bill Gates and Saudi
grow in popu- slowed down the satellite- Prince al-Waleed bin Talal, an-
larity in the phone industry. The delay nounces plans for a satellite-
late 1980s, it meant that by the time Irid- based voice and data service to
wasn’t clear if the network ium went online, terrestrial begin in 2002.
that powered calls would cen- cellular services had had
ter on a terrestrial or satellite years to become much more 1998 | After spending north of
service. Neither system was widespread. $5 billion, Iridium’s system goes
particularly built out at the It didn’t help that at launch online with 66 satellites circling
time. Iridium’s phones were bulky the planet.
Satellites were appealing and cost more than $3,000,
because they could provide and users were charged up to 1999 | Iridium announces bank-
connections in the most iso- $7 a minute for the service. ruptcy, one of the largest in his-
lated areas of the planet, in- After spending over $5 billion tory to that point.
cluding the polar regions, out and landing few subscribers,
at sea or even on planes, Iridium went into chapter 11 2000 | The U.S. government
where no land-based networks bankruptcy protection less awards Iridium a $72 million
could reach. These satellite than a year later. Teledesic contract for two years of satel-
phones would need a direct launched only one satellite be- lite service—saving the satellites
line of sight to the sky to fore shutting down operations from being decommissioned by
work, but that didn’t diminish in 2002, the year that Global- a matter of days.
interest. star went into bankruptcy pro-
So, in 1990, when Motorola tection. 2001 | A group of private inves-
announced its plan for the Other issues contributed to tors buys Iridium out of bank-
first mobile satellite phone, these failures, including the ruptcy for a reported $25 mil-
with a project called Iridium, limited battery life of satellite Above, Globalstar employees at a control center in San Jose, Calif., lion.
both cellphone users and in- phones and the expense of before a rocket launch. Below, an Iridium satellite phone in 1998.
vestors were excited. maintaining satellite networks, 2002 | After a planned 840-sat-
Other companies soon according to Prakash Sangam, ellite network, Teledesic sus-
joined in with more satellite founder of Tantra Analyst, a pends operations after launch-
ventures. Defense-contracting technology research and advi- ing just a single satellite.
FROM TOP: VINCENZO PINTO/AGENCE FRANCE-PRESSE/GETTY IMAGES; ASSOCIATED PRESS; GETTY IMAGES (3)

company Loral Corp. and Qual- sory firm. Globalstar enters bankruptcy.
comm Inc. established Global-
star as a competitor in 1991. 2004 | Globalstar emerges from
Teledesic, which counted tele- New horizons bankruptcy.
com billionaire Craig McCaw Now, with satellites lighter
and Bill Gates among its inves- and cheaper to launch, compa- 2008 | Iridium is acquired and
tors, announced its plans in nies are taking another look at becomes public through a spe-
1994 for satellites that would satellite communications for cial-purpose-acquisition com-
provide both voice and data mobile devices—especially pany.
connectivity. Smaller outfits since cellphone service still
also hopped on the trend and covers only about 10% of the 2022 | Starlink and T-Mobile re-
planned their own networks. globe. veal plans for satellite coverage
Iridium launched its service In August, T-Mobile an- for T-Mobile’s customers.
on Nov. 1, 1998, with 66 satel- nounced a plan to let users
lites. The ceremonial first call connect to the Starlink system,
over the network was made by the satellite-internet division
then U.S. Vice President Al of SpaceX. Weeks later, Apple
Gore to Gilbert Grosvenor, the revealed that its latest iPhones Sangam says. “It’s always been tale that the satellite industry
great-grandson of Alexander will be able to send emergency an augmentation, or comple- takes time.
Graham Bell. texts even outside of land- mentary, to it.” “The biggest technology re-
based cellular range by con- All these new entries have quired for success in space is
necting to a satellite constella- established competition—Irid- patience,” he says.
The sky is falling? tion operated by Globalstar, ium came out of bankruptcy in
But the high cost of rocket which came out of bankruptcy 2001 and has since gone pub- Ms. Snow is a writer in Los 2022 | Apple announces SOS
launches and the years it took in 2004. lic. It has sold a million Angeles. She can be reached at satellite service powered by
to gain international govern- Unlike earlier efforts, Ap- phones, mostly used in remote [email protected]. Globalstar for iPhone 14.
 THE WALL STREET JOURNAL. Monday, October 17, 2022 | R5

JOURNAL REPORT | 5G TECHNOLOGY

Want to Text Your Friends From Anywhere?

Satellite-connected 1998, weighing about a pound and texts, though, because of technical
standing a foot tall with their an- limitations.
phones promise users tenna extended. They cost about Iridium announced earlier this
an ‘always connected’ $3,000, plus anywhere from $3 to year that it had an agreement to
experience. But they $20 a minute for calls. That was a develop its technology for use in
steep price for the average con- smartphones. Hiroshi Lockheimer,
have their limits. sumer, but proved very useful for Google’s senior vice president of
military personnel, journalists and platforms and ecosystems, said on
BY CORDILIA JAMES other people who spend signifi- Twitter that the company’s next

M
cant time in remote environments. version of Android would also
Today’s satellite phones and support communications with sat-
AKING calls communication tools come in a ellites.
from the wil- variety of forms for users to buy SpaceX and T-Mobile plan to
derness. Send- or rent. Then there are satellite create a satellite-to-cellular ser-
ing photos from devices that pair with a conven- vice to provide connectivity in
the most re- tional cellphone to deliver mes- wireless dead zones, but the first
mote corners of sages, such as the $300 inReach iteration, expected late next year,
the globe. And Messenger that Garmin recently will allow only text messaging.
doing it all introduced. Subscriptions for the Their plan involves embedding
from your cellphone. device, which weighs a quarter of cellular technology into satel-
That is the promise of the sat- a pound and can fit in the palm of lites—rather than the other way
ellite-based future. But don’t ex- your hand, range from $14.95 a around—so users can use existing
pect it soon. month to $64.95 a month. phones with the service. SpaceX’s
Major telecom and tech compa- Wes Siler owns Garmin’s in- Starlink satellites would provide
nies such as Apple Inc. are start- Reach Mini, another satellite- connectivity to U.S. customers via
ing to roll out features—like text communication device that pairs airwaves controlled by T-Mobile.
messaging, SOS alerts and loca- with his smartphone for off-the- With this technology, T-Mobile
tion tracking—that work with grid texting. His plan comes with users could send text messages
current or next-generation cell- unlimited messaging, but it services from remote places with- venture to where he can’t get and even photos from anywhere
phones instead of relying on sat- doesn’t let him make calls. In- out a clunky antenna or addi- help, he says. that was previously unreachable
ellite-messaging tools. stead, the 41-year-old adventure- tional tools. Users can’t send mes- Mr. Hogan says he will likely by terrestrial networks, a T-Mo-
But users should manage their travel writer from Bozeman, sages to anyone else, however, or rent or buy an additional satellite- bile spokeswoman says. The aim
expectations. The first version of Mont., prefers to rent a satellite receive them. communication device anyway. is for satellite texting to launch
this technology is a big step for- phone for about $200 for a two- The capability, built into the Redundancy is key, he says, espe- toward the end of 2023, she says.
ward for cellphones—but it likely week trip. “I rent a sat phone phones, directs users where to cially if Apple’s offering has bugs Voice and data would be available
won’t give us the “always con- only in rare circumstances where point their phone to stay con- to work out when it launches. later. Other companies, such as
nected” life people dream about. being able to make voice calls nected to the best satellite. It also “If you’re deep in the back- satellite startups Lynk Global and
Bandwidth constraints and tiny may be essential to arrange logis- lets people share their location country and you break your leg or AST SpaceMobile, are following a
antennas inside the phones mean tics or to coordinate rescue ef- with emergency contacts and something, you don’t want some- similar approach.
the capabilities of mobile devices forts in particularly risky circum- share a transcript of the messages thing that you’re pretty sure is “Technology development is
JOHNNY SIMON/WSJ, IMAGES: ISTOCKPHOTO/GETTY IMAGES

will be limited. Then there are im- stances,” Mr. Siler says. they send to emergency services. going to work,” he says. “You going to start out slow … and it
mediate issues: Devices have to He adds, “Buying a friend din- Apple says the service is free need a guarantee that it’s going to gets better and better,” says Wal-
have a clear view of the satellite ner afterward to come pull me for two years. It hasn’t detailed work.” ter Piecyk, an analyst at Light-
to work, which could make the out of a mud pit is a whole lot what it will charge afterward. Shed Partners, a technology, me-
connectivity less effective in hilly cheaper than calling a helicopter.” The satellite SOS feature is the dia and telecommunications
areas or places with other tall Apple’s Emergency SOS via only reason 25-year-old Mack Ho- Filling the sky research firm. “I’m a little skepti-
structures. satellite feature represents a first gan is considering upgrading his Other phone manufacturers are cal about how far it can go, but
step toward bringing satellite fea- iPhone 12 to the iPhone 14. Be- stepping up to offer satellite ser- there’s certainly plenty of incre-
tures to cellphones. tween his job as an automotive vices as well. Huawei’s Mate 50 mental opportunities.”
Decades of satellite chat Arriving in November in the journalist and his hobby visiting series gives users in mainland
The technology for satellite calling U.S. and Canada, Emergency SOS national parks, he spends a lot of China the ability to send short Ms. James is a Wall Street
has existed for decades—just not via satellite allows users of time in remote locales. Not having texts to other people via satellite Journal reporter in New York.
for regular cellphones. Satellite iPhone 14 models to send texts to a satellite device handy has lim- using China’s global Beidou satel- She can be reached at
phones first hit the market in and receive texts from emergency ited his plans—he never wants to lite network. Users can’t receive [email protected].

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R6 | Monday, October 17, 2022 THE WALL STREET JOURNAL. THE WALL STREET JOURNAL. Monday, October 17, 2022 | R7

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R8 | Monday, October 17, 2022 THE WALL STREET JOURNAL.

JOURNAL REPORT | 5G TECHNOLOGY

A special robot
uses its arms to
clean delivery
robots when they
return from a
delivery.

Images From a Private 5G Network Future

Depending on their business Airport announced a partnership
At a corporate headquarters in South Korea, needs, investment size and tar- with Japanese telecom company
autonomous self-driving robots deliver coffee, lunch geted services, enterprises seek- NTT Ltd. with aims to deploy
ing to set up a private 5G net- Europe’s largest private 5G net-
and packages. As network technologies improve, work system will be able to work. Other projects are being
their tasks will become more complex. decide between direct deploy- pursued in countries such as the
ment and enrolling in a plan U.S. and Japan.
BY JIYOUNG SOHN with a telecom provider, the The speed and extent to which

S
But for Naver’s private net- Samsung executive adds. private 5G networks are adopted
work, faster uploads are more Naver’s Mr. Kang says his by businesses and public agen-
important as the autonomous ro- company likely incurred more cies will depend on the gains
EONGNAM, South Korea—At the new headquarters of bots must continuously send upfront costs than it would have such networks offer over exist-
South Korea’s largest internet company, a fleet of self- massive amounts of data to the had it purchased a private 5G ing Wi-Fi and private 4G, says
driving robots whirl around delivering coffee, lunch- cloud—without lag. Thus, Sam- plan from a telecom company, Pablo Tomasi, principal analyst
boxes and mailed packages. sung says it engineered the pri- but he adds that owning the net- covering the private-networks
More than 100 of these autonomous robots, which vate system so that uplinks ac- work itself gives Naver more op- business at Omdia, a tech-mar-
look a bit like the droid R2-D2 from the “Star Wars” count for up to 40% of capacity. erational freedom. ket research firm.
films and go by the name “Rookie,” are operational at In South Korea, Naver’s private With growing data-usage “A key challenge for the pri-
Naver Corp.’s high-rise office building. The tower is 5G network operates on a sepa- needs, the direct-deployment op- vate 5G ecosystem will be to
specifically designed with bump-free flooring and han- rate frequency band from the tion may also be more cost-effi- prove that by using this technol-
dle-free doors that open via sensors to help the robots one telecom providers use, as cient in the long term than rely- ogy, you’re getting significantly
move around more easily. the government has designated a ing on a plan from a telecom better results that will justify an
Powering the robots is a critical technology: a private 5G network new band for such purposes. company, he says. enterprise adopting a new tech
that gives them a stable connection to the cloud, or virtual server, “Private networks can support at scale,” he says.
where their computing takes place, and where each unit’s learned intel- customized services for enter- The private-networks mar-
ligence is stored and shared. Having the hardware for this in the cloud prises with greater flexibility in Early movers ket—covering 4G and 5G—is pro-
keeps the robots small and less expensive to build, key requirements network configuration,” says The global market for private 5G jected to grow to $6.5 billion by
Woojune Kim, executive vice is still fairly new, with compa- 2026, nearly four times 2021’s
for broader adoption. more customized connectivity president and head of global nies and organizations in various $1.7 billion, according to Omdia.
The private 5G network, features alongside enhanced se- sales and marketing at Samsung countries in the process of vali- By 2024, 5G is expected to over-
jointly deployed by Naver and curity and privacy. Electronics’ network business. dating the different ways that take 4G as the dominant private-
Samsung Electronics Co.’s net- In South Korea, telecom com- A private 5G network also of- such ultrafast private networks network technology. Manufactur-
work business unit, enables ul- panies operate public and pri- fers enhanced security. The abil- could best be harnessed. ing, energy and utilities,
trafast connections, reducing vate networks on the same fre- ity for a company to own and Among the earliest movers is transport and logistics are likely
lags in data, across 28 floors and quency band. The public 5G operate its own telecommunica- Germany. In 2020, Mercedes- to be the biggest areas driving
eight basement levels. network serves tasks like tions network including the core Benz Group AG deployed a pri- private 5G, Omdia projects.
And it marks the world’s first streaming videos or surfing the infrastructure—in turn keeping vate 5G network in partnership Naver foresees that one of the
case of autonomous robots oper- web. Hence, telecom operators all the data on premise—as well with Ericsson for automobile most significant use cases for
ating on a private 5G network, typically designate around 80% as independent data-encryption production at the auto maker’s private 5G will be cloud-based
according to the companies. of their public-network capacity features are reasons clients seek “Factory 56” in the southern autonomous robots, and that the
“It’s not just a couple of ro- to “downlinks” and 20% for “up- to adopt private 5G networks, German city of Sindelfingen. In bots’ potential advancement will
bots on a test bed. It marks the links,” according to Samsung. Mr. Kim says. July, the operator of Frankfurt depend on continued progress in
first large-scale system of self- network technologies.
driving robots operating in a It is easier to collectively con-
fully 5G-enabled building,” says trol and upgrade the robots
Kang Sang-chul, an executive when all the underlying data is
heading the robotics technology managed through the cloud, says
project at Naver Labs. Mr. Kang of Naver.
“One robot could become
smarter with the data and opera-
Public vs. private tional experience it accumu-
Unlike public 5G networks oper- lates,” he says. “When such data
ated by telecom providers, pri- is shared more broadly via the
vate 5G is designed for exclusive cloud, multiple robots can bene-
use by a company or an organi- fit. And that’s why we see a big
zation. Depending on the regula- future in 5G-connected, ‘brain-
tory environment, firms else- less’ robots.”
where could work directly with The Naver executive says fur-
equipment vendors like Samsung ther leaps in 5G network tech-
or Ericsson AB to deploy a pri- nologies will be required to en-
EMANUEL HAHN FOR THE WALL STREET JOURNAL (2)

vate 5G network. They could also able the self-driving robots to

purchase a private 5G plan oper- perform more-complex tasks.
ated by a telecom company. In the near term, Mr. Kang
Naver, in partnership with says, the company is looking to
Samsung’s network business, deploy the same type of 5G-
was the first in South Korea to based robot system at its data
obtain a license to directly de- center in Sejong to assist server
ploy a private 5G network after maintenance and operations.
local regulators began allowing
the option last year. Ms. Sohn is a reporter for The
Compared with public 5G, a Wall Street Journal in Seoul.
private 5G network can offer An employee conducts quality-control tests on the robots at Naver. Email: [email protected].
 THE WALL STREET JOURNAL. Monday, October 17, 2022 | R9

JOURNAL REPORT | 5G TECHNOLOGY

ity, so for streaming video and being untethered from clunky
high-bandwidth data,” Mr. Ma- computers. Industries are begin-

Superfast 5G Gadgets
heswaran says. “It doesn’t ordi- ning to use 5G to control ma-
narily lend itself to a parking chinery in factories, minimizing
sensor or a light sensor.” downtime when they want to
Silicon Labs, a chip designer move that machinery around.

Are Off to a
that also specializes in circuits Companies are expected to even-
for low-power IoT devices, also tually use more 5G, too, equip-
hasn’t seen a swarm of 5G de- ping employees with more con-
Despite their huge potential, vices on the market, CEO Matt nected devices to help them
5G-enabled internet-of-things Johnson says. work and track how they’re do-

Slow Start devices aren’t ubiquitous yet

BY ASA FITCH
The technology holds promise,
he says, but the battery-con-
sumption issues combined with
the high cost could be a lasting
constraint on its growth. For the
ing.Those applications have
taken time to develop.
Durga Malladi, a senior vice
president at chip maker Qual-
comm Inc., one of the main
backers of the shift to 5G, says

I
T WAS ONE of 5G’s big the growth of IoT devices was
selling points: millions of part of the second phase of the
always-connected inter- broader 5G story—a stage that’s
net-of-things devices ex- still in relative infancy. The tech-
changing data wirelessly nical standards that define what
at lightning speed, revolu- 5G is are being updated over
tionizing the portability of time to cater to nonphone gad-
everything from aug- gets, he says, which 5G’s backers
mented-reality goggles to sur- hope will jump-start the market.
veillance cameras. As part of that advance, he
Several years into the 5G roll- says, “you’ll see the expansion of
out, the internet-of-things boom 5G to all kinds of new use cases
largely hasn’t happened. There and in turn creating new kinds
were about 4.4 million 5G-con- of devices that didn’t exist in the
nected internet-of-things devices 4G era.”
in the U.S. in 2021, according to Ms. Wendelken of IDC says is-
analysis firm International Data sues like the Covid-19 pandemic
Corp.—a sizable number but a and supply-chain disruptions
drop in the bucket compared caused by it have been another
with the nearly 100 million Swans Trail Farms in Snohomish, Wash., uses 5G soil-moisture probes in its apple orchards. unanticipated stumbling block
smartphones capable of 5G. for the internet-of-things mar-
The slow uptake for nonphone with the connectivity of their ex- when they run on long-lasting customers of these devices, 5G ket, constraining the growth in
gadgets had been expected, to an isting gear, she says. Many don’t batteries and rely on older con- connectivity costs many times as 5G-enabled devices. Despite
extent, during the 5G rollout, an- yet see that the features offered nectivity technology. The same much as relying on Bluetooth, those issues, IDC is still forecast-
alysts and industry executives by 5G—notably faster data-trans- constraint applies to many Wi-Fi and other means of ex- ing that there will be 187 million
say. Device makers and cellular mission speeds—are worth the smart-city devices, like parking changing data wirelessly, he 5G IoT connections in the U.S. by
network operators tend to focus price of an upgrade. meters that run on solar cells, says. 2026—an exponential growth
first on upgrading phones and “The majority aren’t using 5G and to retail-industry applica- “Think about an order-of- trajectory that supports the bull-
cell towers when new genera- technology because the return tions like digital price tags. magnitude different cost and an ish case for the industry.
tions of equipment come out. on investment isn’t yet there,” In some of those applications, order-of-magnitude different “Growth has been slower than
MERON MENGHISTAB FOR THE WALL STREET JOURNAL (2)

Only once that has been proven Ms. Wendelken says. where wired connections aren’t battery life, and what you end up some in the industry had hoped,
out do they turn to other growth possible, a 5G antenna could help with is that some applications but many factors related to the
segments like IoT. by transmitting data from small, are perfect for cellular and 5G, standard, the pandemic, and
The sluggishness this time, Long life battery-powered sensors to big and some applications will never supply-chain and economic is-
however, also illustrates how Another factor weighing on 5G is data centers for further process- be candidates,” he says. sues played a part,” Ms. Wen-
some users of IoT devices don’t that some of the most powerful ing. But there’s little role for 5G delken says. “There have been
yet see the financial logic in up- new internet-of-things applica- technology to be directly embed- fits and starts to each wireless-
grading to 5G, says Sandra Wen- tions demand long battery life ded into many internet-of-things Just beginning technology generation, and 5G is
delken, an IDC analyst. Health- that 5G devices can’t deliver. devices, says Mohan Ma- Still, some of 5G’s most ardent no different.”
care workers who use IoT Farmers have started to de- heswaran, chief executive officer backers say the internet-of-
devices to care for patients or ploy wireless soil-moisture sen- of Semtech Corp., which designs things wave is only beginning. Mr. Fitch is a reporter for
companies that use devices to sors to pinpoint irrigation, for chips for low-power devices. Augmented-reality and vir- The Wall Street Journal in
track employees’ work habits, for example, but those devices are “5G is really geared toward tual-reality goggles are becoming San Francisco. Email him at
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R10 | Monday, October 17, 2022 THE WALL STREET JOURNAL.

&   

TOGETHER FOR
Our Connected Future
     
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THE WALL STREET JOURNAL. Monday, October 17, 2022 | R11

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R12 | Monday, October 17, 2022 THE WALL STREET JOURNAL.

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