The Wall Street Journal - 11 06 2020

2020·12.38 MB·English

****** THURSDAY, JUNE 11, 2020 ~ VOL. CCLXXV NO. 136 WSJ.com HHHH $4.00
DJIA26989.99 g282.31 1.0% NASDAQ 10020.35 À0.7% STOXX600 368.15 g0.4% 10-YR.TREAS. (Newissue), yield0.744% OIL $39.60 À$0.66 GOLD $1,713.30 g$1.40 EURO $1.1379 YEN107.12
Fed Plans
Barriers Removed After Days of Protests Over Floyd Killing
What’s
To Keep
News
Rates at
Business&Finance Low Level
F
ederalReserveoffi- For Years
cialssignaledplansto
keepinterestratesnear
zeroforyearsandsaidthey
werestudyinghowtopro-
Unemploymentin
videmoresupporttothe
batteredU.S.economy.A1 fourthquarteris
(cid:2)Grubhubagreedtocom- forecastatabout10%
binewithEurope’sJustEat
amideconomicdamage
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backonUberinasurprising
twistinthemergerrush BYNICKTIMIRAOS
amongfood-deliveryfirms.A1
(cid:2)TysonFoodssaiditisco- WASHINGTON—FederalRe-
operatinginaJusticeDepart- serveofficialssignaledplansto
mentprice-fixingprobeun- keep interest rates near zero
deraleniencyprogramthat for years and said they were
willallowthefirmtoavoid studyinghowtoprovidemore
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stocktomorethan$1,000a afterthekillingofGeorgeFloyd.Mr.Floyd’sbrother,Philonise,testifiedbeforeCongressatahearingonpolicebrutality.A4 JeromePowellsaidWednesday
shareafterMusksaiditwas atavirtualnewsconferenceaf-
timetobeginvolumepro- teratwo-daypolicymeeting.
ductionofthecompany’sall- U.S. to Launch Advanced Trials The commitment from the
electricsemitrailertruck.B1 central-bankchiefcomesasthe
virushasforcedthenationinto
(cid:2)Starbuckssaiditwould
arecession,endingthelongest
closesometraditionalcafes Of Possible Vaccines This Summer economicexpansiononrecord,
andopenmoreto-goloca-
and sent unemployment to
tionsasthechainbetsmore
post-World War II highs. In
onconvenienceandspeed.B1
projections released Wednes-
(cid:2)TheLaborDepartmentis day,mostofthe17Fedofficials
strugglingtodocumentaccu- whoparticipateintherate-set-
ratelyhowmanyworkersare BYPETERLOFTUS andInfectiousDiseases.Meant cused on whether they are coronavirus-vaccinetrials. ting meetings see the unem-
unemployedintherecession todetermineavaccine’ssafety safe and induce the desired AModernaspokesmancon- ployment rate averaging be-
causedbythecoronavirus.A2 The federal government andeffectiveness,theywould immuneresponse—toatleast firmed the plan for the NIH- tween 9% and 10% during the
planstofundandconductthe markthefinalstageoftesting. merittheplanning. fundedtrialofitsvaccine.An lastthreemonthsoftheyear.
(cid:2)SimonPropertyisscrap-
decisive studies of three ex- Moderna Inc.’s vaccine is “Wewillwanttousethein- AstraZeneca spokeswoman Thatwouldbedownfrom13.3%
pingitsdealtoacquireTaub-
perimental coronavirus vac- settobefirst,startinginJuly, vestigative resources of the saidthecompany’srecentcon- inMaybutstillwellabovethe
man,thelatestsignofthe
cines starting this summer, a followedinAugustbyoneco- countryasbestwecantoop- tractwiththeU.S.Biomedical 3.5%levelofFebruary.
pressuresafflictingtheretail
lead government vaccine re- developed by Oxford Univer- timizeusgettinganansweras AdvancedResearchandDevel- Stocks were little changed,
sectorandmallindustry.B1
searchersaid. sityandAstraZenecaPLCand quicklyaspossible,”saidLarry opmentAuthoritywouldsup- withtheS&P500indexclosing
(cid:2)Zara’sowner,Inditex, ThesePhase3trialsareex- in September by Johnson & Corey, a vaccine and infec- port a large study, which down 17 points, or 0.5%, at
saiditwouldcloseasmany pectedtoinvolvetensofthou- Johnson’s,hesaid. tious-diseasespecialistatthe Barda previously said would 3190.14 after initially rallying
as1,200storesandpivot sandsofsubjectsatdozensof The timetable suggests re- Fred Hutchinson Cancer Re- begininthesummer. followingtheFed’sstatement.
moreaggressivelytoward sites around the U.S., said searchers are making rela- search Center in Seattle and J&J said on Wednesday it PleaseturntopageA2
sellingfashiononline.B3 JohnMascola,directorofthe tively rapid progress advanc- memberofacommitteeadvis- planstostartthefirsthuman
vaccineresearchcenteratthe ing their vaccines through ing the National Institutes of studyofitsvaccineinthesec- (cid:2)Joblesspictureisclear
World-Wide
National Institute of Allergy earlier stages of testing—fo- Health on the design of the PleaseturntopageA7 despitereport’sflaws...........A2
(cid:2)Thefederalgovernment Tyson Has Nascar Bans Confederate Flag Amazon Rivals
planstofundandconduct
thedecisivestudiesof
threeexperimentalcorona- A Deal Strain to Win Edge
virusvaccinesstartingthis
summer,aleadgovernment
vaccineresearchersaid.A1 To Avoid
(cid:2)Amazonishaltinglaw-
enforcementuseofitsfacial- Charges Thepandemicofferedanopportunity,but
recognitionsoftware,adding
itsvoicetoachoruscalling ThriveMarketbuckledunderonlinesurge
forgreaterregulationofthe
technologyamidconcernover
BYBRENTKENDALL BYSEBASTIANHERRERA ersreachedtwoweeks.
itspotentialforracialbias.A4 ANDJACOBBUNGE About30%ofitemswereout
(cid:2)Aretiredfederaljudge Whencoronaviruslock- ofstockonsomedays.To
tappedtoreviewthecriminal TysonFoodsInc.,thelead- downssentAmericansintoa keepdeliverytimesfrom
S
caseagainstFlynnrebuked ingU.S.chickenproducer,said GE frenzyofpanicbuying,the slippingfurther,Thrive
A
theJusticeDepartmentfor it is cooperating in a Justice IM badnewscamealmostas madethepreviouslyunimag-
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(cid:2)TheStateDepartment C.
prosecution in exchange for D Amazon.comInc.inthe calledco-founderandChief
watchdogfiredbyTrump aidinginthecontinuingprobe ARE health-foodsectorsuddenly ExecutiveNickGreen.“Itfelt
toldlawmakersthatasenior J
ofotherpoultrysuppliers. NascarsaidWednesdayitwouldforbidtheConfederate foundcustomersflockingto PleaseturntopageA10
departmentofficialdiscour-
Afterreceivingagrandjury flag’sdisplay.BubbaWallace,theracingassociation'sonly itssiteasitsgiantrival
agedhimfromprobingU.S.
subpoenainApril2019,Tyson full-timeblackdriver,raisedtheissueinthewakeof struggledtohandleitsown
armssalestoapairofGulf discoveredthatsomeofitsem- nationwideBlackLivesMatterprotests.A4 pandemicbusinesssurge. Police Barred From
statesbeforehisouster.A3
ployeeswereimplicatedinthe Thrivenotchedrecordsales Using ID Software
(cid:2)Trumpsoughttoextin- allegedscheme.Thecompany andmembershipsign-ups.
guishagrowingnationalde- saiditapproachedtheJustice Thenitbuckled.Orders Amazon.comsaiditwon’tlet
bate,rejectingcallsforArmy Department,disclosingitsown balloonedtofivetimeswhat lawenforcementuseitsfacial-
baseshonoringConfederate actionsandseekingleniency. You’re Not the Only One Who Thrivecouldhandle.Deliv- recognitiontechnology...........A4
officerstoberenamed.A4 “Tysontookappropriateac- erytimesforsomecustom-
Forgot Things Under Lockdown
tions to address the internal
(cid:2)Theadministrationispro-
issues and has been fully co-
posingafar-reachingover-
operatingwiththeDOJaspart i i i Grubhub Jilts Uber
hauloftheasylumsystem
thatwouldmakeitharderfor ofitsapplicationforleniency Even those with superior memories
undertheDOJ’sCorporateLe-
applicantstowinhumanitar-
ianprotectionintheU.S.A3 niency Program,” Tyson said found monotony dulled their recall For Europe’s Just Eat
inastatementprovidedtoThe
(cid:2)Swedenclosedaninves- WallStreetJournal.
tigationintothe1986murder A Justice Department
ofPrimeMinisterPalme,but spokeswoman declined to BYJULIESTEINBERG smallcoterieofpeoplewithan Grubhub Inc. agreed to stockdeal,confirminganear-
themysterysurroundingthe comment. abilityresearchershavedubbed combine with Europe’s Just lierreportbyTheWallStreet
casewilllikelyendurebecause Tyson’spublicacknowledg- Ask Markie Pasternak what HighlySuperiorAutobiographi- EatTakeaway.comNV,turning Journal.Grubhubshareholders
theonlysuspectisdead.A18 mentofitsroleintheinvesti- shewasdoingonJune30,2007, calMemory.HSAMindividuals itsbackonUberTechnologies wouldreceive0.6710JustEat
gationcomesaweekafterfour and she’ll quicklyreminisce in typically remember nearly ev- Inc.inasurprisingtwistinthe shareforeachGrubhubshare,
(cid:2)TwoofChina’smost
chicken-industry executives, detail:SherodeherbiketoIce erythingthathashappenedto scramble for mergers among nowworthjustover$65after
celebratedathleteshave
including employees of Pil- HouseCoffee&CreameryinDe themfromacertainage,includ- food-deliverycompanies. a decline in Just Eat shares
denouncedthecountry’s
grim’sPrideCorp.andClaxton Pere, Wis., and over a mango ingthecorrespondingdatesand Wednesday.
rulingCommunistParty.A8
Poultry Farms, were indicted smoothie, re- daysoftheweek. ByCaraLombardo, BasedonTuesday’sclosing
onchargesofpricefixingand vealed to her Thepandemic DanaCimilluca price,thedealvaluesGrubhub
CONTENTS Opinion..............A15-17 bid rigging. The Justice De- cousin a crush upendedallthat. andBenDummett at$7.3billion.
Business&FinanceB2,10 Sports.......................A14
partmentallegedchickencom- on a boy from Researchers say UberandGrubhubhadbeen
BusinessNews...B3,6 StayingInsideGuideA13
Crossword..............A14 Technology...............B4 pany executives and employ- church.Itwasa repetitivesched- The move would create a negotiatingacombinationfor
HeardonStreet...B12 U.S.News.............A2-7 ees for years exchanged Saturday. She ules dim the trans-Atlantic food-delivery weeks but the talks got
Life&Arts.......A11-13 Weather...................A14 details of their own pricing was wearing a ability for all of giantatatimewhenindustry boggeddownoverantitrustis-
Markets.....................B11 WorldNews...A8-9,18
and that of competitors via blueT-shirtfrom us to dredge up players are seeking scale to sues and Uber was already
phonecallsandtextmessages, her figure-skat- Quarantinedaze therecentpast— help them cope with a land- considering pulling the plug,
> at the same time that they ing team and and even those scape that includes booming according to people familiar
werenegotiatingsupplydeals AdidasAGshorts. withsomeofthemostpowerful demandbutalsofiercecompe- withthematter.
withrestaurants. Askherwhatshewasupto memories on Earth aren’t im- tition. Uber said in a statement
ThedefendantsincludePil- duringquarantine,andhermind mune. Grubhub and Just Eat, thatthefood-deliveryindustry
grim’s Pride Chief Executive goesblank. Stay-at-homeroutinesmake whichisbasedintheNether- will need to consolidate to
s2020DowJones&Company,Inc.
AllRightsReserved JaysonPenn.Allhavepleaded ThisisunusualforMs.Pas- it hard to affix things in time lands, said late Wednesday reachitspotentialforconsum-
PleaseturntopageA6 ternak.Now26,sheispartofa PleaseturntopageA10 they plan to combine in all- PleaseturntopageA8
A2|Thursday,June11,2020 THEWALLSTREETJOURNAL.
****
U.S. NEWS
Jobless Picture Is Clear Despite Flaw in Report
BYERICMORATH
OECDCitesRisk
avoided.Acontractiononthat
The Labor Department is InNewLockdown scalewouldbetwiceaslargeas
strugglingtoaccuratelydocu- thedeclineforecastbytheInter-
ment how many workers are nationalMonetaryFundinApril.
unemployed in the recession However,theOECDtookthe
causedbythecoronaviruspan- Asecondwaveoflockdowns unprecedentedstepofoffering
demic,adifficultythegovern- tocounteraresurgentnovel twoseparateseriesofgrowth
ment has faced during other coronaviruswoulddealaterrible forecasts,reflectingthehigh
timesofrapidlychangingeco- blowtoaglobaleconomyal- levelofuncertaintyaroundthe
nomicconditions. readyfacingaseverecontrac- pandemic’scourse.Inasecond-
A “misclassification error” tion,theOrganizationforEco- wavescenario,theglobalecon-
caused the overall unemploy- nomicCooperationand omywouldshrinkby7.6%this
ment rate to be lower than it SS DevelopmentsaidWednesday. year.
wouldhavebeenotherwise,the RE TheParis-basedresearch Aresurgenceofthepan-
P
djoebpsarretpmoernt,treslaeiadseidnlatshtewMeeaky. OCIATED bieosdtyforreelecaassetsdfoonregorofwththeygelotom- ddaemmipctlahteerpathrtisialyreeacrowveoruyldthat
Itwasthethirdstraightmonth SS publishedbyaninternationalin- isexpectedin2021.Withouta
A
the department issued such a A/ stitution.TheOECDsaiditex- secondwavethisyear,the
warning. DOL pectedtheglobaleconomyto OECDexpectsgrowthof5.2%
N
Whilethefiguresmaydiffer, ME contractby6%thisyearifa nextyear.Withit,therebound
the error doesn’t change the SEA secondwaveofinfectionsand wouldbeamoremuted2.8%.
broaderstorytoldbytheunem- ELI containmentmeasurescanbe —PaulHannon
ploymentdata:Thenumberof AcareercenterinLawrence,Mass.A‘misclassificationerror’wasnotedinrecentU.S.unemploymentreports.
Americanswithoutjobsremains
historicallyhigh,andsignsofa Workersidentifyingas U-6andthe Changeinhoursworkedand JulieHatchMaxfieldinaninter- Andwereleasedseveralpages
labor-marketrecoveryemerged “employedbutabsentfrom unemploymentrate employmentfrompriormonth view.TheBLSflaggedthesitua- ofadditionaldocuments.”
inMayaspayrollsroseandthe work”maybeloweringthe tiontoU.S.CensusBureauinter- Economists appointed by
U-6 Weeklyhoursprivatesector
unemploymentrate,howeverit unemploymentrate viewers and in subsequent presidents from both parties
Unemploymentrate Employmentlevel
iscalculated,fellfromtheprior months provided additional say there is no sign the data
month. 20% Workerswho 20% U-6addspeople 5% training,includingholdingcon- were manipulated. Instead,
Theunemploymentratewas workedno marginallyattached ferencecalls. they said that data are most
13.3% in May but would have hoursshould tothelaborforceand Becausetheerrorhascontin- difficult to accurately collect
been16.3%withoutamisclassi- havebeen thoseworkingpart 0 ued to occur, interviewers in andreportduringtimesofex-
fication related to responses 15 classifiedas 15 timeforeconomic Junewillberemindedofproper tremechange.
thatworkersgavewhenasked unemployed, reasons. classificationprotocoldirectlyin “Iappreciatethefactthey’re
evenifstill
abouttheiremploymentstatus, thesoftwarewheretheyrecord being so transparent about
paid. –5
theLaborDepartmentsaidina surveyresults,shesaid. this,”saidKatharineAbraham,
specialnoteinthereport.The 10 10 WhiletheBLShasrecognized wholedtheBLSafterPresident
Aprilrateof14.7%wouldhave the misclassification, it has Clintonappointedher.Shelater
–10
been19.7%,theLaborDepart- maintaineditsusualpracticeof servedasaneconomicadviser
mentsaid.March’sratewould not reassigning survey re- toPresidentObama.“Theprob-
havealsobeenhigher. 5 5 sponses. lemisthisisanovelsituation
The misclassification, ac- –15 Somepeoplehaveraisedthe foradatacollector—inanor-
cordingtothedepartment,oc- prospect that the figures are maltimeyouwouldn’truninto
curred because many respon- Unemploymentrate being manipulated by the anything that would look like
dents to the survey of 0 0 –20 Trumpadministration. this,”shesaid.
householdsthatdeterminethe Jan. Feb. March April May June 2020 March April May Ms.Maxfield,whostartedat KeithHall,wholedtheBLS
unemployment rate reported 2019 thebureauin1999,saidthebu- under President George W.
themselves as “employed but Note:Seasonallyadjusted Source:LaborDepartment reau’smissionofaccuracyand Bush,saidhesympathizeswith
absentfromwork.”Suchaclas- transparencydoesn’tchangeby howdifficultitistoreportthe
sification in a more normal months should be counted as unemployed, according to the themisclassificationoccurring administrationoreconomicsit- figuresintimesofrapidchange.
timecouldincludethoseonva- unemployed. LaborDepartment,evenifthey inMarch,whenthepandemic’s uation. “It’s not like someone LaborDepartmentofficialshave
cation.Thedepartmentsaidin Those who worked zero werepaidorreceivedanother effectontheeconomywasbe- elsediscoveredthis,”shesaid. “been really transparent and
thelastthreejobsreportsthat hoursbecauseofthepandemic formofcompensation. coming clear, said Associate “Weputitinournewsrelease, haven’tchangedtheirmethod-
itbelievesmanypeoplefalling during the period of a survey TheBureauofLaborStatis- CommissionerforEmployment inabox,thatsaysyoushould ology—and that’s the exact
in that category in recent should have been counted as ticsrecognizedthepossibilityof and Unemployment Statistics pay special attention to this. rightthingtodo,”hesaid.
Fed Vows Mnuchin Backs
couldinflictontheeconomyby plefindingjobs,”hesaid. andtheTrumpadministration
changing consumer and busi- Mr. Powell lauded the re- have said they want to take
Low Rates nessbehavior. sponse from officials in Con- more time to evaluate which
More Business Aid
Last week’s report “was a gressandtheTrumpadminis- parts of the economy might
welcomesurprise.Wehopewe tration who approved around needmorehelp.
For Years get many more like it, but I $3 trillion in various emer- Thecentralbankcutinterest
think we have to be honest, gency-spendingmeasures.But rates to near zero in March
thatit’salongroad,”hesaid. heagainsuggestedmorecould amid the pandemic, and offi-
Evenwiththegain,thereare beneededasthescaleoflong- cialshaveracedtoputinplace BYRYANTRACY legislation.
still nearly 20 million fewer termdamagebecameclear. aseriesofprogramstolendto ANDAMARAOMEOKWE Lawmakers urged the offi-
ContinuedfromPageOne people employed than there “We’re doing a fair job of businesses,citiesandstates.In cialstoconsidergettingmore
The10-yearTreasuryyieldfell wereinFebruary,andMr.Pow- gettingthroughthesefirstfew addition,theFedhaspurchased WASHINGTON—Treasury help to struggling businesses
0.1percentagepointto0.728%. ellsaiditwaspossiblemillions months, more than a fair job. morethan$2trillioninTrea- SecretaryStevenMnuchintold byspeedingupEIDLloansand
InthenewFedprojections, ofpeoplewouldn’tgobackto The question, though, is that sury and mortgage securities lawmakers he supports addi- supportingadditionalfunding
all17officialssaidtheyexpect theiroldjobortheirpriorin- groupofpeoplewhowon’tbe since the pandemic sparked a tionalaidforbusinesseslarge in the future. “Survival was
ratesnearzeronextyear,and dustry,giventhepotentialfor able to go back to work massive flight for safe, cash- and small that have been hit thekeyandthefocus,butnow
15 of them projected rates reduced demand for goods or quickly—whataboutthem?”he likeassetsinmid-March. hardest by the coronavirus wehavetoturnfromsurvival
wouldstaytherethrough2022. servicesthatrequireincreased said. TheFedenteredthisweek’s pandemic. to recovery,” added Sen. Tim
“We’re not thinking about humancontact. HouseDemocratspassedlast meetingfacingsomepressure “Idefinitelythinkwearego- Scott(R.,S.C.).
raising rates. We’re not even “Itcouldbesomeyearsbe- monthafurther$3trillionaid frommarketstoclarifythepur- ingtoneedanotherbipartisan Thehearingfocusedinlarge
thinkingaboutthinkingabout forewegetbacktothosepeo- bill, but Senate Republicans chases, which it had been re- legislationtoputmoremoney part on the Paycheck Protec-
raisingrates,”Mr.Powellsaid. ducingeveryweek.Thecentral intotheeconomy,”hesaidata tionProgram,orPPP,acenter-
Fed officials projected the LookingAhead bankisbuyingupto$20billion WednesdayhearingoftheSen- piece of the government’s re-
economy would contract by in Treasurys this week, down ateSmallBusinessCommittee. sponse to the pandemic that
MostFederalReserveofficialsforeseekeepingtheinterest-rate
anywherebetween4%and10% from$50billionsixweeksago, “Whatever we do going for- has distributed more than
targetatitscurrentlevelthrough2022.
this year. Projections for next and $375 billion during the ward needs to be much more $500billioninforgivableloans.
yearwereunusuallyuncertain, weekofMarch23. targetedparticularlytothein- Mr. Mnuchin said he expects
Forecastsof17Fedofficials Unemploymentrate
with at least one official pro- Fedofficialshavebeensuc- dustries and small businesses mostbusinesseswon’thaveto
fortheratetarget
jecting an additional 1% con- Actual Medianofforecasts cessful in restoring market thatarehavingthemostdiffi- repay the funds: “I think the
traction while most expected Keptatcurrentlevel Fullrangeofforecasts functioning,butotherfactors, cultyreopening.” majorityofthismoneyisgoing
growthofaround5%. Oneincrease Four Centraltendency such as rising Treasury issu- Mr. Mnuchin demurred on tobeforgiveninthenextfew
Officials made one policy ancetofinanceeconomic-assis- whattheadditionalaidshould monthsandthatisourintent.”
change Wednesday by saying Throughtherestof2020 15% FORECAST tance measures, are threaten- look like, though he said it Sen. Susan Collins (R.,
they would maintain their re- ingtopushuplong-termyields couldincludetaxcreditsordi- Maine) said businesses that
centpaceofpurchasesofTrea- thissummer. rectfunding.Hesaidlawmak- have been required to remain
sury and mortgage securities, Last Friday’s employment ersalsoneededtoaddresssit- allorpartiallyclosedarerun-
10
effectively ending gradual, report sent the 10-year Trea- uationswhereunemployment ning out of their PPP funds,
Through2021
weekly reductions. They will suryyieldrisingby0.2percent- benefitspaypeople“morenot andsuggestedCongressmight
buyatleast$80billioninTrea- age point, to 0.94%, though toworkthanwork.”
surysand$40billioninmort- 5 yieldshadreversedthatriseby JovitaCarranza,headofthe
gagesecurities,netofmaturing Wednesday. SmallBusinessAdministration, Thehearingfocused
bonds,amonth. Through2022 With rates unlikely to go faced several questions about
inlargepartonthe
Mr.Powellplayeddownthe lower, another major element the Economic Injury Disaster
positivenewsfromlastweek’s 0 of officials’ evolving policy Loan,orEIDL,program,asep- PaycheckProtection
reportthattheeconomyunex- 2010 ’15 ’20 stance will center on how to arate initiative open to small
Program.
pectedlyadded2.5millionjobs communicatetheirlong-runin- businessesaffectedbythepan-
Notes:Numberofforecastrateincreasesarebasedonaquarter-pointchange.Unemploymentrate
inMay,highlightingthepoten- tentions,usingwhatisknown demic.Sheassuredlawmakers
isseasonallyadjusted.Centraltendencyexcludesthethreehighestandlowestforecasts.
tiallong-rundamagethevirus Sources:FederalReserve(forecasts)LaborDepartment(historicunemployment) asforwardguidance. there would be progress on a
Mr.Powellsaidofficialscon- large backlog of applications
CORRECTIONS (cid:2) AMPLIFICATIONS tinued discussions about for the program. Small busi- considerallowingthemtoap-
THEWALLSTREETJOURNAL whethertotietheirrateplans nesseshavereportedalackof ply for additional funds from
(USPS664-880)(EasternEditionISSN0099- tocertaineconomicoutcomes, communicationaboutthesta- thePPP,whichhadmorethan
9660)(CentralEditionISSN1092-0935)
(WesternEditionISSN0193-2241) such as inflation returning to tus of their EIDL applications $130 billion untapped as of
Editorialandpublicationheadquarters:1211 EvaDou,wholeftTheWall months of 2019, according to 2%andunemploymentreturn- andprocessingdelays. June6.
AvenueoftheAmericas,NewYork,N.Y.10036 Street Journal in February, theNationalWeatherService. ingtoitsrecentlowlevels. “I’m very pleased to an- Some of that remaining
PublisheddailyexceptSundaysandgenerallegal contributed to Saturday’s Ex- A U.S. Watch article Wednes- Alternateapproacheswould nounce that by next week all funding came from returned
holidays.PeriodicalspostagepaidatNewYork,
N.Y.,andothermailingoffices. change article about Huawei day about tornadoes incor- tie rate changes to specific oftheEIDLloanswillbeinthe loans.About$12billionworth
TechnologiesCo.founderRen rectlysaid186. datesandpotentiallycapyields process in the loan portal,” ofPPPloanshasbeenreturned,
Postmaster:Sendaddresschangesto
TheWallStreetJournal,200BurnettRd., Zhengfei. The article omitted oncertainTreasurysecurities Ms.Carranzasaid. Mr.Mnuchinsaid—afigurethe
Chicopee,MA01020.
thatcredit. Robert Bosch GmbH in- bypurchasingthemasneeded Shedefendedthedecisionto administration hasn’t previ-
AllAdvertisingpublishedinTheWallStreet
vestedinelectric-truckstartup toreinforcetheirrateguidance. limit the amount of disaster ouslydisclosed.
Journalissubjecttotheapplicableratecard,
copiesofwhichareavailablefromtheAdvertising FrenchWoodsperforming NikolaCorp.inadifferentin- The Fed’s actions have loans to $150,000 instead of Lawmakersalsopushedfor
ServicesDepartment,DowJones&Co.Inc.,1211
AvenueoftheAmericas,NewYork,N.Y.10036. arts camp holds dozens of vestmentroundthanCNHIn- buoyed financial markets for the usual $2 million cap the theSmallBusinessAdministra-
TheJournalreservestherightnottoacceptan shows every summer on its ternational NV. In some edi- now, with stock markets re- loanprogramoffers.“Iwantto tiontoprovidemoretranspar-
advertiser’sorder.Onlypublicationofan
advertisementshallconstitutefinalacceptanceof grounds, including dramas, tionsWednesday,aBusiness& centlyreturningtopositiveter- reassureeverymemberonthis encyaboutPPPloanrecipients.
theadvertiser’sorder. musicals and circus perfor- Finance article about Nikola ritoryfortheyear. committee it wasn’t an arbi- Several borrowers have
LetterstotheEditor: mances,andholdsothershows incorrectlysaidthecompanies Buteconomiccrosscurrents trarynumber.Itwasamatter comeunderpublicscrutinyaf-
Fax:[phone];email:[email protected]
inthetownsquareinHancock, investedinthesameround. havemadeithardtodiagnose of realizing we had over five terreceivingtheloans,includ-
Needassistancewithyoursubscription?
Byweb:customercenter.wsj.com; N.Y. A U.S. News article on Notice to readers the underlying damage from million applications in the ing local chapters of Planned
Byemail:[email protected] Tuesdayaboutlocalbusinesses thevirus. queue,”Ms.Carranzasaid. Parenthood and some well-
Byphone:1-800-JOURNAL(1-800-568-7625)
feelingthepinchofcampcan- Wall Street Journal staff WaitinguntilSeptemberto Sen. Ben Cardin (D., Md.) knowncompaniessuchasthe
Reprints&licensing:
Byemail:[email protected]; cellationsincorrectlysaidthe membersareworkingremotely unfurlanynewstrategymight saidthecap“reallymakesno LosAngelesLakersandShake
Byphone:1-800-843-0008 campholdsdozensofshowsin during the pandemic. For the give the Fed a better idea of sense today,” adding that he ShackInc.,bothofwhichhave
WSJbackissuesandframedpageswsjshop.com thetownsquare. foreseeablefuture,pleasesend how to calibrate it. By then, would be surprised at this sincereturnedthemoney.
Ournewspapersare100%sourcedfrom reader comments only by they could know more about pointiftheprogramrunsout Ms. Carranza declined to
sustainablycertifiedmills.
Therewere127tornadoes emailorphone,usingthecon- anyadditionaleconomicrelief offunds. discussindividualloanrecipi-
in Oklahoma in the first five tactsbelow,notviaU.S.Mail. fromCongress,theprospectfor Congress has provided entsandMr.Mnuchinsignaled
vaccinesandotherinformation morethan$60billionforEIDL individual loan data wouldn’t
GOTATIPFORUS?
SUBMITITATWSJ.COM/TIPS ReaderscanalertTheWallStreetJournaltoanyerrorsinnewsarticlesby abouthowthevirusspreadsas loans and advance grants bepubliclyreleased,asitisfor
[email protected]. commercialactivityresumes. through coronavirus-related someotherSBAloanprograms.
THEWALLSTREETJOURNAL. Thursday,June11,2020|A3
******
U.S. NEWS
U.S. Plans
Miami Beach Reopens to the Public With Restrictions
Stricter
Policy on
Asylum
BYMICHELLEHACKMAN
ANDALICIAA.CALDWELL
WASHINGTON—TheTrump
administration is proposing a
far-reaching overhaul of the
asylum system that would
makeitharderforapplicantsto
winhumanitarianprotectionin
the U.S. and would allow the
government to quickly deport
manymoreasylumseekersat
theborder.
The proposal, made public
WednesdaybytheJusticeand
Homeland Security depart-
ments,wouldmeanmostasy-
lum applicants are no longer
entitledtoafullcourtproceed-
ingtoheartheirclaims,asthey
arenow. SS
UnderU.S.immigrationlaw PRE
D
and international treaties the ATE
U.S.ispartyto,asylumisale- OCI
galprotectionanyforeigneron SS
A
American soil can apply for. LEE/
Applicants must prove they O
D
havefacedpersecutiononthe RE
basisofrace,religion,political WILF
opinion or a number of other SEAANDSUN:ChairsweresanitizedWednesdayonMiamiBeach.Newrulesincludenogroupsofover10people,andbeachgoersmusthavefacialcoveringsavailable.
factors.
The Trump administration
haslongarguedthatloopholes Government Misconduct
inthesystemmakeittooeasy
for migrants to apply for asy-
lum,aprocessthatcanstretch
onforyearsandforamajority Asserted in Flynn Case
ofapplicantsendsinthemlos-
ingtheircases.Untilthatjudg-
ment is made, asylum appli-
cantsarepermittedtoworkin
theU.S.,thoughtheadministra-
tionisseparatelycompletinga BYBYRONTAU cooperatingwitnessinspecial contempt—aligns with the
ruleunderwhichfutureappli- counsel Robert Mueller’s in- Court’s intent to treat this G(cid:2)v(cid:3) h(cid:3)(cid:4) (cid:5)h(cid:3) S(cid:5)(cid:6)(cid:4)s...
cantswouldn’tbeissuedwork WASHINGTON—A retired vestigationintoRussianinter- case,andthisDefendant,inthe
permits.Abacklogofmorethan federaljudgetappedtoreview ference in the 2016 election. samewayitwouldanyother.”
onemillioncasesarependingin thecriminalcaseagainstone- He was awaiting sentencing TheJusticeDepartmenthad
U.S.immigrationcourts. timenationalsecurityadviser pendingtheconclusionofhis nocommentonMr.Gleeson’s
Officials said Wednesday MichaelFlynnfoundevidence cooperation with the govern- brief.
that streamlining the process of misconduct by both the mentontheMuellerinvestiga- ManyRepublicanssaythat
to allow for swift decisions governmentandMr.Flynnand tion.Butlastyear,heswitched the prosecution of Mr. Flynn
“would eliminate removal de- urged that the retired three- lawyersandtacticsandsought epitomized shortcomings in
lays…thatservenopurposeand stargeneralbesentencedfor to have the charges against the FBI’s investigation into
eliminatethewasteofadjudica- thecrimehepleadedguiltyto himdismissed. Russian interference in the
tory resources currently ex- backin2017. Mr.Gleesonconcludedthat electionandthattherewasno
pendedinvain.” John Gleeson, a veteran Mr.Flynn“hasindeedcommit- legal basis for the agency to
Thegovernmenthasalready prosecutorandformerfederal tedperjuryintheseproceed- interview the former general
haltednearlyallasylumclaims judge,found“clearevidenceof intheearlydaysoftheTrump
attheborder.Underprovisions agrossabuseofprosecutorial administration—an interview
of a public-health emergency power”bytheJusticeDepart- thatledtohisresignationand
President Trump declared in mentina82-pagelegalfiling thechargesagainsthim.
March, officials can immedi- Wednesdaythatcriticizedthe Judge Sullivan appointed
atelyexpelpeoplecrossingthe department for its push to Mr. Gleeson to argue against
S
bgiovridnegrtbhaecmktaonMopexpiocrotuwniitthyoutot dMrro.pFtlyhnenc,raimnienaarllcyassuepapgoarintesrt REUTER ttoheexgaomveinrnemwehnett’hsemroMtiro.nFlaynndn (cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:16)(cid:8)(cid:17)(cid:9)(cid:18)(cid:19)(cid:10)(cid:20)(cid:11)(cid:20)(cid:12)(cid:13)(cid:14)(cid:6)(cid:15)(cid:8)
askforrefugeintheU.S. and confidant of President ST/ shouldbeheldincontemptfor
N
The new rules, if imple- Trump. R his behavior in court. Mr.
E
mented,wouldgivethegovern- The department “has en- AN Flynn’s lawyers have chal-
H
mentmoreleewaytodeemasy- gagedinhighlyirregularcon- AT lenged Judge Sullivan’s au-
lumapplications“frivolous”and ducttobenefitapoliticalally ON thority to appoint Mr. CallorEmailtoPurchase
J
permanentlybarapplicantsfrom of the President” and urged Gleeson—achallengethatwill (805)3906326|[email protected]
winningprotectionsintheU.S. that the judge deny an at- MichaelFlynn beheardonFridaybytheU.S.
Thenewproposedrulesalso tempt by the government to appealscourtinWashington. ShoptheCollectionatMISAHARA.COM
pleadedguiltyin
winnowdownthetypesofper- dismissthecharges. Inexaminingtherecordof
secution that would qualify Mr.Gleesonwasappointed 2017butlatersought the case, Mr. Gleeson con-
someoneforasylumoralesser by U.S. District Court judge cluded that the Justice De-
dismissalofcharges.
formofhumanitarianprotection. EmmetSullivan,whoisover- partment had departed from Handcrafted in New York
Itwouldnolongerrecognizethe seeingtheFlynntrial,toargue itsusualproceduresinarguing
claimsofapplicantswhoaretar- againstagovernmentmotion for the dismissal of charges
geted by gangs, terrorists, todismissthecaseandtoex- againstMr.Flynn.
“rogue”governmentofficialsor amine whether the retired ings, for which he deserves “Thereasonsofferedbythe
“non-stateorganizations.” generalshouldbeheldincon- punishment”forhisattempted Government are so irregular,
The new proposal would temptofcourtonthegrounds reversal of his initial guilty and so obviously pretextual,
alsolimittheabilityforpeople ofperjury. pleaandacceptanceofrespon- thattheyaredeficient.More-
tobegrantedprotectiononthe Mr. Flynn served for less sibility. over,thefactssurroundingthe
basisoftheirgender. thanamonthasMr.Trump’s “Irespectfullyrecommend, filingoftheGovernment’smo-
“These new rules are a firstnationalsecurityadviser. however,thattheCourtnotex- tionconstituteclearevidence
‘headsIwin,tailsyoulose’sys- In2017,hepleadedguiltytoa ercise that authority,” Mr. of gross prosecutorial abuse.
tem for asylum,” said Aaron single count of lying to the Gleeson wrote. “Rather, it They reveal an unconvincing
Reichlin-Melnick,policycoun- Federal Bureau of Investiga- should take Flynn’s perjury efforttodisguiseaslegitimate
sel at the American Immigra- tion about his contacts with intoaccountinsentencinghim a decision to dismiss that is
tion Council, an advocacy Russia’s ambassador to the ontheoffensetowhichhehas based solely on the fact that
group. “If you’re not outright U.S. in the weeks before Mr. already admitted guilt. This Flynn is a political ally of
banned,you’regoingtobede- Trump’sinauguration. approach—ratherthanasepa- PresidentTrump,”Mr.Gleeson
niedanyway.” Mr. Flynn was once a star rateprosecutionforperjuryor concluded.
Fired Watchdog Says He Was Pressured
BYCOURTNEYMCBRIDE OnMay15,Mr.Trumpnoti- House to undermine congres- verypoliticallysensitivedocu-
fiedCongressofhisintentto sionaloversight.Mr.Linicktold mentdesignedtodestroythe
WASHINGTON—Theformer terminateMr.Linick,andSec- thecommitteesthatthereview careerofaprofessionalState
State Department internal retary of State Mike Pompeo waslaunchedinresponsetoa Departmentofficial.”
watchdog fired by President hasaccusedMr.Linickofleak- requestfromCongress. At issue is a September
Trumptoldlawmakersthata ingtothenewsmediaandhas Asked about his relation- 2019 article published by the
seniordepartmentofficialdis- saidherecommendedthatMr. shipwithMr.Bulatao,Mr.Lin- Daily Beast regarding an in-
couraged him from probing Trumpfirehim.Mr.Linickhas ick told lawmakers and staff, quiryintoallegedpoliticalre-
U.S. arms sales to a pair of been on administrative leave “sometimes the relationship taliation by Brian Hook
Gulf states before his ouster sincethatdate. was professional; at other againstcareerdepartmentem-
lastmonth. Congressional Democrats, times,hetriedtobullyme.” ployees. Mr. Hook is the spe-
In June 3 testimony to whoareinvestigatingthecir- OnWednesday,Mr.Pompeo cial representative for Iran
threeHouseandSenatecom- cumstancesofMr.Linick’ster- said he hadn’t yet reviewed andaseniorpolicyadviserto
mittees,formerInspectorGen- mination, on Wednesday re- thefulltranscriptofMr.Lin- Mr. Pompeo and previously
eral Steve Linick said Under leasedatranscriptofhisJune ick’stestimony,butcriticized servedasthedepartment’sdi-
SecretaryofStateforManage- 3interview. theformerinspectorgeneral’s rectorofpolicyplanning.
ment Brian Bulatao told him Muchofthequestioningfo- performance. Mr.Linicktestifiedthatthe
hisoffice“shouldn’tbedoing cusedonaninquirybyMr.Lin- “SteveLinickwasabadac- article appeared “after we
theworkbecauseitwasapol- ick’s office into a May 2019 torintheinspectorgeneralof- submittedourreportonpoliti-
icymatternotwithintheIG’s emergencydeclarationthatfa- fice here,” he told reporters. cal retaliation within the Of-
jurisdiction.” cilitated arms sales to Saudi “Hedidn’ttakeonthemission ficeoftheSecretarytotheDe-
Mr. Linick said he resisted Arabia and the United Arab of the State Department to partmentforcomment.”
the“pressure”becausehisof- Emirates, two key allies in makeusbetter.” The State Department this
fice is required by law to re- Washington’sthen-intensifying Thesecretaryofstatesaid weekrequestedaformalinves-
view the department’s work confrontation with Iran. The Mr.Linickhadfailedtoprobe tigation of Mr. Linick by the
forcompliancewithapplicable declaration circumvented the the disclosure of information CounciloftheInspectorsGen-
lawsandregulations.Hetesti- traditional congressional re- on an investigation into al- eralonIntegrityandEfficiency,
fied that his office wasn’t view process, and lawmakers leged political retaliation an independent executive-
evaluatingthepolicymeritsof opposedtothearmssalesde- against career employees of branchofficethatservesasan
thedeclarationbutitsimple- nouncedthedeclarationasan- the department. Mr. Pompeo umbrellagroupforagencyof-
mentation. other effort by the White referred to the inquiry as “a ficesofinspectorgeneral.
A4|Thursday,June11,2020 THEWALLSTREETJOURNAL.
P W L C 10 11 12 H T G K R F A M 1 2 3 4 5 6 7 8 9 O I X X ****
U.S. NEWS
Amazon Bars Police From Some Software
BYASAFITCH
ProtestSurveillance there.Droneflightshavealso Democrats,someconservatives
Amazon.com Inc. said it is beenreportedoverSanAntonio aretroubledaswell.“It’sdis-
IsDrawingScrutiny
haltinglaw-enforcementuseof andDetroit,accordingtoaletter turbingtoseetoolsbuiltto
itsfacial-recognitionsoftware, Tuesdayfromaboutthreedozen gathermilitaryintelligencebe-
adding its voice to a growing Housemembers. ingusedtowatchU.S.citizens,”
chorusofcompanies,lawmak- WASHINGTON—Thegovern- Theletter,whichcalledfor saidBillyEasleyII,aseniorpol-
ers and civil rights advocates ment’suseofcutting-edgesur- ahalttosurveillanceofpeace- icyanalystatAmericansfor
callingforgreaterregulationof veillancetomonitorprotestsis fulprotests,alsocitesreports Prosperity,aconservativeor-
the surveillance technology comingunderscrutinybylaw- ofsurveillanceflightsbyother ganization.
amidwidespreadconcernabout makersandactivists,including agenciesusingconventionalair- CBPconfirmedthatthe
itspotentialforracialbias. conservativeswhoseeitasa craftoverWashington,D.C. agencyflewaPredatorover
“We hope this one-year threattoconstitutionalrights, “Americanshaveahealthy Minneapolisbutdisputedthe
moratorium might give Con- amidanationalrethinkingof fearofgovernmentsurveillance claiminthecongressionalletter
gress enough time to imple- theroleofpolice. thatstartedatthefoundingof thatdroneswereflownover SS
ment appropriate rules, and Theissuecametothefore ourcountryandhascontinued DetroitandSanAntonio.The PRE
A
we stand ready to help if re- afteraPredatordroneoperated tomoderntimes,”saidthelet- Minneapolisdroneflightwas M
U
qbluoegstpeods,”tWAemdanzeosndasya.iTdheinrea- bteyctUio.Sn.wCuasstoombsseravneddBfloyridnegroPvreor- itnegrsRigepnse.dAbnynalawEsmhaokoe(rDs.,inCcalu-d- fGirosvterrenpmoertnetdObvyertshigehPtr,oajencotno-n GTE/Z
O
tailing giant said it has been protestsinMinneapolisonMay lif.)andBobbyRush(D.,Ill.). partisanresearchgroup. HO
advocatingforstronggovern- 29inthewakeofthekillingof Whilethecongressional —JohnD.McKinnon DSE-
mentregulationoftheuseof GeorgeFloydinpolicecustody scrutinysofariscomingfrom andMichelleHackman APredatorBdroneatHollomanAirForceBaseinNewMexico. AN
facial-recognitiontechnology, HOLL
andCongressappearedready
totakeonthatchallenge. body-camera footage, and softwarefollowinglong-running nition technology should be mentsinalgorithmsandever- studyinDecember.
Police tactics and law en- called for restrictions on fed- criticismthatsuchtechnologies employedbydomesticlawen- fastercomputers.Butwiththe Tech companies have
forcement’suseoftechnology eral funding for local law-en- are less accurate on African- forcement agencies,” Mr. growingutilityofthetechnol- carved out different stances
has come under increasing forcementagenciesthatdon’t Americanandotherminorities’ Krishnawroteintheletter,ad- ogy—whichhasbecomeubiq- onhowtohandletheirfacial-
scrutinywiththewaveofna- restrictitsuseinthesameway. facesthanonCaucasians. dressed to five Democratic uitousasameansofunlocking recognition tools. Amazon,
tionwideproteststriggeredby AmazonhassolditsRekog- IBM’s new chief executive, membersofCongress,fourof smartphonesandmakingdigi- whichhasdefendeditsRekog-
the police killing of George nition face-recognition soft- ArvindKrishna,notifiedCon- themAfrican-Americans.“Ar- tal payments—academic re- nitionproductagainstcharges
Floyd. ware widely, including to po- gressofthedecisioninalet- tificialIntelligenceisapower- searchers and activists have ofbias,hadcontinuedtooffer
A police reform bill House lice departments and other ter Monday, in which he also fultoolthatcanhelplawen- raisedalarmsaboutembedded ittolawenforcement.
DemocratsintroducedMonday U.S.enforcementagencies.The advocated for police reform forcement keep citizens safe. racialandgenderbiases. Microsoft Corp., another
wouldprohibitfederallawen- company said it would con- and expanding educational But vendors and users of Al In a landmark study two major facial-recognition ven-
forcement’s use of real-time tinue to allow the use of its supportforpeopleofcolorfol- systemshaveasharedrespon- yearsago,MassachusettsInsti- dor,hassaiditishandlingthe
facialrecognition. toolsbyorganizationsthatde- lowing mass demonstrations sibility to ensure that Al is tuteofTechnologyresearchers technology cautiously. Presi-
Someactivistssaidthepro- ployfacialrecognitiontocom- againstwhatactivistsandpol- tested for bias, particularity foundsignificantdifferencesin dentBradSmithlastyearsaid
vision didn’t go far enough. bathumantraffickingandfind icymakershavedenouncedas when used in law enforce- theaccuracyoffacial-recogni- thecompanydeclinedtosellit
NeemaGuliani,seniorlegisla- missingchildren. institutionalized racism in ment,andthatsuchbiastest- tion systems, including IBM’s, toapolicedepartmentinCali-
tive counsel at the American InternationalBusinessMa- Americanpoliceforces. ingisauditedandreported.” dependingonsexandskintone. forniaoverconcernsitwould
CivilLibertiesUnion,saidlegis- chinesCorp.earlierthisweek “Webelievenowisthetime Facialrecognition’saccuracy Lateracademicworkbackedup beusedinmasssurveillance.
lationshouldprohibitalluseof saidithadstoppeddeveloping tobeginanationaldialogueon has improved dramatically in theexistenceofbiases,includ- —SebastianHerrera
facial recognition on police andofferingfacial-recognition whetherandhowfacialrecog- recent years, due to advance- ingamajorgovernment-funded contributedtothisarticle.
President Resists
George Floyd’s Brother Exhorts Lawmakers to Take Action
Push to Rename
Military Bases
BYMICHAELR.GORDON Ms. Lofgren immediately
ANDNANCYA.YOUSSEF backed the move. Mr. Blunt
noted that some states have
President Trump on made efforts to change their
Wednesday sought to extin- statues recently and added
guish a growing national de- that“asSpeakerPelosiisun-
bateoverwhether10U.S.Army doubtedlyaware,thelawdoes
baseshonoringConfederateof- notpermittheArchitectofthe
ficersshouldberenamed. CapitolortheJointCommittee
“MyAdministrationwillnot ofCongressontheLibraryto
evenconsidertherenamingof removeastatuefromtheCap-
theseMagnificentandFabled itolonceithasbeenreceived.”
Military Installations,” Mr. The statues at the Capitol
OL Trump said in a series of include Jefferson Davis, who
PO tweets. “Our history as the was elected president of the
RESS Greatest Nation in the World Confederate States, Robert E.
S/P willnotbetamperedwith.Re- Lee, the commander of the
OLD spectourMilitary!” Confederatearmy,andEdmund
YN Mr. Trump’s statements Kirby Smith, who resigned
RE cameafterthePentagonsaid fromtheU.S.Armytojointhe
AEL thisweekthatDefenseSecre- Confederate forces. The in-
H
MIC tary Mark Esper and Army scriptiononthestatuereads:
SecretaryRyanMcCarthywere “Florida’s memorial to her
GeorgeFloyd’syounger ignored.Pleaselistentothecall CongressionalDemocratsthis andrequirethatdeadlyforcebe open to renaming the bases mostdistinguishedsoldier.”
brother,Philonise,urgedlawmak- I’mmakingtoyounow,”Mr.Floyd weekunveiledlegislationthat usedonlyasalastresort. and after several prominent The practice of naming
erstomakechangestopolicing saidataHouseJudiciaryCom- wouldmakeiteasiertoprosecute SenateRepublicansarealso retired Army generals called bases after Confederate offi-
lawstoholdofficersaccountable mitteehearingWednesdayonpo- policeofficersformisconduct.The workingontheirownlegislation forthechange. cers started in 1917 and con-
formisconductandchangethe licebrutality.“Makethenecessary billwouldalsochangethestan- thatwouldcollectmoredataon The proposals have been tinuedintothe1940s.Itwasa
standardsforwhendeadlyforce changesthatmakelawenforce- dardforwhenofficerscanuse theuseofforce,amongother energizedbynationalprotests periodinwhichthereputation
shouldbeused. mentthesolution—andnotthe force—toonlywhennecessary measures. over George Floyd, a black of the Confederate generals
“George’scallsforhelpwere problem,”Mr.Floydsaid. ratherthanwhenreasonable— —KristinaPeterson man who was killed in police was romanticized in much of
custodyinMinneapolis. theSouth,andtheArmywas
“It’s time to rename the tryingtocurryfavorwiththe
bases,”DavidPetraeus,there- statesinwhichthepostswere
Nascar Prohibits Confederate Flags tired four-star Army general established.
and former Central Intelli- “In naming the bases, the
genceAgencydirector,saidin Armywasrespondingtowhite
an interview. He is recom- sentiment during a period of
mending that a diverse com- often violent segregation in
BYANDREWBEATON “We were aware of the hebroughtfootballtotheCar- Richardsonsellingtheteamto mitteeofretiredcivilianoffi- theSouth,”saidTySeidule,a
mostrecentconversationsur- olinas,whereheisfrom,when Mr. Tepper, a hedge-fund bil- cials, military historians and professoremeritusofhistory
Thecountry’sreckoningon roundingtheJerryRichardson the Panthers became the lionaire who paid a record retired commissioned and atWestPointandretiredbrig-
race hit the sports world statue and are concerned league’s 29th franchise and $2.2billion. noncommissioned officers be adier general whose coming
Wednesday,asNascarbanned theremaybeattemptstotake beganplayin1995. The revelations about Mr. convenedtotakeupthetask. book,“RobertE.LeeandMe,”
Confederateflagsatitsevents, it down,” the team wrote on Thesculpture,named“The Richardson’s behavior came “Wheneverthiswasraised, dealswithConfederatemonu-
andaNationalFootballLeague Twitter. “We are moving the Tribute,” was a gift from the duringtheincreasednational eveninrecentyears,therewas mentsandsymbolism.
teamremovedthestatueofits statueintheinterestofpublic teamtoMr.Richardsonforhis attentionplacedonsexualha- aresponsethatthiswasnotthe AmongthebasestheArmy
foundingowner,whohadbeen safety.” 80thbirthdayin2016,accord- rassment during the MeToo righttime,thatwewerefight- hasbeenconsideringrenaming
accusedofracistremarks. Whether the statue’s re- ing to the team’s website. It movement. Now, the statue’s ingtwowars,thatwehadthe are Fort Benning, Ga., named
The Confederate flag, Na- movalispermanentortempo- depictshimholdingafootball removal comes against the budget to worry about, that afterHenryBenning,aConfed-
scar said, “runs contrary to raryisn’tclear.DavidTepper, betweentwopanthers. backdropofanationalreckon- there was too much on our erategeneralandlaterajudge
ourcommitmenttoproviding whopurchasedtheteamfrom But in December 2017, ing over racism in the after- platealready,andthatwedidn’t ontheGeorgiaSupremeCourt;
awelcomingandinclusiveen- Mr.Richardson,hadpreviously Sports Illustrated reported mathofGeorgeFloyd’skilling. needtopickanotherfight,etc.,” Fort Bragg, N.C., named after
vironment for all fans, our saidhewascontractuallyobli- that multiple Carolina Pan- Thatnationwidemovement Gen.Petraeusadded. BraxtonBragg,aConfederate
competitorsandourindustry.” gated to keep it up. But mid- has hit close to home in the White House press secre- officerandNorthCarolinana-
TheConfederateflaghaslong day Wednesday, the street NFL, which was rocked for tary Kayleigh McEnany on tive; and Fort Hood in Texas,
beenacommonsiteatNascar outside Bank of America Sta- TheCarolina years by protests started by Wednesdaycharacterizedthe namedafterJohnBellHood,a
races,manyofwhicharerun dium,wheretheteamplaysin then-SanFrancisco49ersquar- push to rename forts as “a Confederategeneralknownfor
Panthersremoveda
intheSouth. Charlotte, N.C., was blocked terback Colin Kaepernick complete disrespect to the hiscommandduringtheSec-
Bubba Wallace, Nascar’s off,andaflatbedtruckhauled statueoftheNFL againstpolicebrutalityduring menandwomenwhothelast ondBattleofBullRunin1862.
lonefull-timeblackdriver,has awaythe13-footstatue. thenationalanthem.Inrecent bit of land they saw before SeanMacFarland,aretired
team’sex-owner.
spoken out against the pres- AspokesmanforMr.Rich- days,NewOrleansSaintsquar- they went overseas and lost Army lieutenant general who
enceofConfederateflags,and ardson, in a statement pro- terbackDrewBreesapologized theirlives,weretheseforts.” led the campaign against Is-
his car for a race Wednesday videdtoWSOC-TV,saidhehas forhavingsaidhedidn’tagree InCongress,HouseSpeaker lamicStateinIraqandSyriain
night would include “#Black- “made no public comments with such protests, and other NancyPelosi(D.,Calif.)called 2015and2016,saidtheArmy
LivesMatter” over the rear aboutthePanthersortheNFL thers employees received fi- starplayersmadeavideocall- for the Capitol to remove 11 has accepted change before,
wheel. sincethesaleoftheteamand nancial settlements from Mr. ingouttheleaguetodomore statues with ties to the Con- beginningwithPresidentTru-
Mr.Wallacehadraisedthe doesn’tplantodosonowasa Richardson.Theincidentsin- againstracialinjustice. federacy, repeating a call she man’s 1948 order to desegre-
issueonCNNonMonday.“No privatecitizen.” volved sexual comments or The flurry of events cata- madein2017.Thestatuesare gatethearmedforces.
oneshouldfeeluncomfortable “Hehasworkedtotreatall conduct directed toward lyzed a pivot inside the NFL. placedbystates,whichgetto Renamingthebasesisover-
when they come to a Nascar people fairly in his business women and a racial slur di- In response to the video the displaytwostatuesofnotable duenow,hesaid.
race. It starts with Confeder- and personal lives and, like rected at a black scout. An players made, Commissioner citizensintheCapitol. “WhyistherenoFortGrant
ateflags,”hesaid.“Getthem many other Americans, is NFL investigation substanti- RogerGoodellsaidtheleague “Monuments to men who orFortWashington?”hesaid.
outofhere.” troubled by recent events in ated the claims, with the waswrongfornotlisteningto advocatedcrueltyandbarba- “Theyareprobablytwoofthe
Also on Wednesday the Minneapolis, Charlotte and leaguefininghim$2.75million playersabouttheissueearlier rismtoachievesuchaplainly bestgeneralsthiscountryever
NFL’s Carolina Panthers re- around the country,” the forworkplacemisconduct.The and said he supports their racistendareagrotesqueaf- produced. How about Persh-
movedastatueofJerryRich- spokesmansaid. money was earmarked for right to peacefully protest. fronttotheseideals,”shesaid ing,Marshall,PattonorEisen-
ardson, who in 2018 sold the Mr. Richardson, 83 years causes that address gender Meanwhile,coachesacrossthe in a letter to Sen. Roy Blunt hower?Thisisagreatoppor-
franchisehefoundedafteralle- old,wasonceoneoftheNFL’s andracialissuesinthework- leaguehavesaidtheysupport (R.,Mo.)andRep.ZoeLofgren tunitytofixthis.”
gationshemadesexistandrac- mostprominentandpowerful place. theirplayersiftheychooseto (D.,Calif.),wholeadthejoint —NatalieAndrews
istremarkstoteamemployees. owners.AformerNFLplayer, ThecontroversyledtoMr. protest. committeeovertheCapitol. contributedtothisarticle.
THEWALLSTREETJOURNAL. Thursday,June11,2020|A5
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A6|Thursday,June11,2020 THEWALLSTREETJOURNAL.
U.S. NEWS
Chief Seeks a New Union Contract
More Cities
Moving to
BYJOEBARRETT One of the former officers councilsaidtheywouldbeen-
ANDANDREWTANGEL involved in the killing of Mr. gaging a broad base of the Ban Use
FloydpostedbailWednesday. communitytoworkoutwhat
MINNEAPOLIS—Minneapo- ThomasLaneposted$750,000 suchasystemwouldlooklike.
lisPoliceChiefMedariaArra- conditional bail and was re- Chief Arradondo said he Of Neck
dondosaidheisimmediately leasedfromcustody,according wouldn’tabandonhisdutyto
withdrawingfromcontractne- totheHennepinCountySher- protect the city until a new
gotiations with the city’s po- iff’sdatabase.Theotherthree systemisinplace.Healsoex- Restraints
lice union as he tries to get officerschargedinthecasere- plained why city leaders de-
aheadofadrivetodismantle mained in custody, records cidedtofleeapoliceprecinct
thedepartmentfollowingpro- show.DerekChauvin,theoffi- duringtheheightofriots,leav-
testssparkedbythekillingof cerseeninthewidelyshared ingittobelootedandburned. BYJONKAMP
GeorgeFloydinpolicecustody. video with his knee on Mr. He said his forces were ANDSCOTTCALVERT
Speakingatanewsconfer- Floyd’sneck,hasbeencharged stretchedthinaroundthecity,
ence Wednesday, Chief Arra- with second-degree man- SS responding to widespread Agrowingnumberofcities
dondo said he would consult slaughter.Thethreeothersin- PRE mayhem.Policewhoremained and states are moving to ban
D
expertstoreviewhowthecon- volved in the encounter, in- ATE insidethedepartment’sthird theuseofneckholdsbypolice
tract can be restructured to cluding Mr. Lane, have been OCI precinct were outnumbered followingprotestsoverthekill-
provide more transparency chargedwithaidingandabet- SS and surrounded, and a few ingofGeorgeFloydinMinne-
A
and flexibility to remake the tingsecond-degreemurder. NE/ protesters had breached the apolis.
force. He said he would seek AlsoWednesday,Minnesota MO station’sgates,hesaid. Thatcity,alongwithHous-
toincludenewpoliciesonuse Gov. Tim Walz called for a JIM “If individuals had gotten ton, Raleigh, N.C., San Diego,
offorce,officerdiscipline,the speciallegislativesessionbe- MinneapolisPoliceChiefMedariaArradondosayshewillseekto inside…there’sonlyacoupleof Denver and others have all
roleofsupervisorsandother ginning Friday to address a establishnewpoliciesontheuseofforce,amongotherchanges. waysthatscenariowouldhave taken or announced actions
matters that the union con- raftofchangestopoliceprac- ended, and none of them against chokeholds or other
tract has prevented from ticesandaccountabilityinthe Thespecialsessionalsowill tionsfordisbandingthepolice wouldhavebeengood,”Chief kinds of neck restraints that
changinginthepast. wakeofMr.Floyd’skilling. address funding issues stem- department. He also said he Arradondosaid. can incapacitate someone by
“Thereisnothingmorede- The Democratic governor mingfromtheslowdowninthe would seek to put in place a “Ididnotwanttoseecom- cutting off airflow or blood
bilitatingtoachiefthanwhen said changes to use-of-force economyduetothepandemic. systemtousedataonofficer munity members severely in- flow. A sweeping Democratic-
youhavegroundstoterminate rulesforpolice,includingban- “Minnesota is at a turning conduct to be able to inter- juredorworse,andIcertainly backed police-overhaul bill in
anofficerformisconductand ningchokeholds,aswellaspo- point. This is our chance to vene quickly in cases where didn’twanttoseethemenand the U.S. House includes a
you’re dealing with a third- lice disciplinary procedures, take strong action to combat officersaremisbehaving. womenwhowearthisuniform chokeholdban.
partymechanismthatnotonly arekeyissuesinapackageof persistent structural inequi- A veto-proof majority of injuredorworse,”headded. Mr.FloyddiedMay25after
allowsforthatemployeetobe 22 proposals he endorses. ties, pass substantive police citycouncilmembersonSun- ChiefArradondoalsoapolo- a police officer knelt on his
backinyourdepartment,but Otherproposalsincludefund- reform, and build a stronger dayvowedtodefundanddis- gized to news reporters and neck,andhiskillingdrewpar-
to be patrolling in your com- ing alternatives to policing; economy,” the governor said band the police department photographerswhohadbeenin- allelstothecaseofEricGarner,
munities,”hesaid. greater police oversight; and duringanewsconference. andreplaceitwithanewsys- juredbypoliceduringtheriots. whodiedafterhealsogasped
A police union representa- prosecutorial, investigatory ChiefArradondosaidheis tem based on a community He said he would investigate “Ican’tbreathe”whileheldina
tivedidn’trespondtoarequest andtrainingreform,thegov- pursuingthechangesaspublic healthmodelratherthanapu- whypolicefiredonthemwith chokeholdbyaNewYorkCity
tocomment. ernor’sofficesaid. officialsseparatelyexploreop- nitivemodel.Membersofthe rubberbulletsandteargas. policeofficerin2014.
“Thesearedangeroustech-
Schools Revisit How to Teach Future Officers niques and the prohibitions
makesense,”saidSethStough-
ton, an associate professor at
the University of South Caro-
linaSchoolofLawwhoprevi-
BYMELISSAKORN ouslyworkedasapoliceofficer.
The city of Minneapolis, in
Communitycollegesaround anagreementwiththeMinne-
thecountryareembarkingon sota Department of Human
reviewsofhowtheyteachfu- Rights,announcedreformson
turepoliceofficers,aimingto June5thatincludeanimmedi-
makechangesatthebeginning atebanonchokeholds.
stages of law-enforcement Raleigh announced its
trainingamidintensescrutiny chokeholdbanonTuesday.So
ofpolicingtacticsintheU.S. did Houston Mayor Sylvester
“Weneedtotakeresponsi- Turner,aDemocrat,whodrew
bilityforourowncurriculum,” anovationwhenheannounced
CaliforniaCommunityColleges theplannedbanandotherre-
Chancellor Eloy Ortiz Oakley forms during Mr. Floyd’s fu-
saidinawebinarondiversity neralinthatcity.
and equity on June 3. “We DouglasGriffith,vicepresi-
need to take a hard look at dentoftheHoustonPoliceOffi-
whatweareteachingourstu- cers’Union,saidtheyarewait-
dents, what the curriculum ingtoseethemayor’sexecutive
signals to our students and SS orderbeforecommentingonit.
RE
howwecanchangeit.” P But in general he said choke-
A
PoliceofficersreceivemuchM holdsaren’ttaughtorpracticed
U
Z
oftheirformaltrainingatpo-G/ inthecity.“It’sneverbeenan
N
lice academies, and the vast SC issuehereinHouston,”hesaid.
majorityofpolicedepartments AY/ Houstonandothercitiesare
R
requirememberstohaveonly UR basing the changes in part on
M
ahigh-schooldiploma. Y onessoughtby“8Can’tWait,”a
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incBruitmminaanlyjuaslstoiceeaartncdoemgrmeeus- RITTA pbyoliCcaem-repfaoigrmnZperrooje,catglarouunpchfeod-
B
nity colleges or universities. AgraduatingclassoftheLongBeach,Calif.,PoliceAcademylastyear.Manyofficersalsoearndegreesatcommunitycollegesoruniversities. cusedonendingpoliceviolence.
Justshyof52%ofU.S.police Therearetwomaintypesof
officers have at least a two- istration of justice associate Although there aren’t re- state’s58communitycolleges. ofthestate’slargestproviders neck restraints, Mr. Stoughton
year degree, according to a degrees generally include in- cent, comprehensive studies Lastyear,thesystemprovided oflaw-enforcementpersonnel. said. Chokeholds restrict or
2017study,while30%haveat troductionstotherulesofevi- onthebenefitsofcollegede- basiclaw-enforcementtraining QuentinJohnson,president blocktheflowofairthroughthe
leastafour-yeardegree. dence,criminallawandinves- grees among police officers, to nearly 2,400 people and ofSouthsideVirginiaCommu- windpipe. Vascular restraints,
In California, the majority tigations, as well as Dr. Gardiner said, some re- continuingeducationtoalmost nity College in Alberta, Va., sometimes known as carotid
of police officers, firefighters discussions of the role of po- viewssuggestthosewhowent 43,000others. whoisleadingthepanel,said holdsorsleeperholds,cutblood
and EMTs are trained at the lice in society. Electives can to college are more likely to Meanwhile,Virginia’scom- heaimstobringtogetherfac- flow to the brain and can
state’s community colleges. includetopicslikecurrentpo- embrace new methods of po- munity-college system estab- ulty,communitymembersand quicklyleadtounconsciousness.
Lastyear,thesystemawarded licing issues, the U.S. correc- licing,havefewerdisciplinary lishedapanellastweektoex- law-enforcement officials to Kneelingonsomeone’sneck
12,008 administration of jus- tionssystem,juvenilejustice, cases brought against them, aminethecurriculaitusesfor discussthetrainingprograms is in a separate category and
ticecertificatesordegrees. sociologyandpsychology. tend to use force less, and law-enforcementofficersatits andculturalandsocial-justice something that “should never
Mr. Oakley informed col- ChristieGardiner,aprofes- when they do, to use less 23 colleges. The goal, said issuesastheyrelatetopolic- happen,”hesaid.
legesoftherequestedreview sorofcriminaljusticeatCali- force. ChancellorGlennDuBois,is“to ing. Individual schools can Chokeholds that restrict
Friday,sayingthesystemhas forniaStateUniversity,Fuller- North Carolina’s State ensure that we are doing all thenchoosehowtoimplement breathing are broadly contro-
an opportunity to train first ton who conducted that 2017 BoardofCommunityColleges that we can to train officers therecommendations. versial, including with police.
responders in bias, culturally survey,saysstudyingthehis- on Friday voted to put as who can effectively protect, “Ourgoalistonotjusttake The Fraternal Order of Police
sensitive de-escalation tech- tory of policing can provide much as $100,000 from state serveandearnthetrustofev- a swing at what we might union,withmorethan350,000
niques and demilitarized ap- context for officers’ work. reserve funds toward in- eryVirginiacommunity.” thinkwouldbeagoodframe- members nationwide, pointed
proaches. And, she said, lessons on creased training related to Virginia’s community col- workforputtingtogetherand to a 2017 policy paper the
Currently, the community- stressmanagementtechniques law-enforcementde-escalation legesenrolledmorethan2,200 makingchangestothecurricu- group helped draft that de-
collegecourseworkforlawen- maylowertheuseofforcein andcommunityrelations.The students in criminal-justice lum,” Dr. Johnson said. “We scribed chokeholds as “ex-
forcement varies by school, training scenarios even money will be used to train programs last year, and Dr. really want to move the nee- tremelydangerousmaneuvers
butclassofferingsforadmin- monthslater. thosewhoruncoursesatthe DuBoissaidthesystemisone dle.” thatcaneasilyresultinserious
bodilyinjuryordeath.”
Once out of favor, too, ca-
Tyson Says laws,terminatetheoffending iarywasaleniencyrecipientin Other major chicken pro- ton and another company, rotidholdshaveregainedsome
conduct,takeremedialaction aninvestigationofpricefixing cessors, including Pilgrim’s, with some of the discussions popularityasawaytoimmobi-
and cooperate fully with the oncannedtuna. SandersonFarmsInc.andPer- lastingonlyabout30seconds. lize someone acting violently,
It Is Aiding department. Acooperationdealbetween dueFarmsInc.,disclosedlast “I have talked to a couple Mr.Stoughtonsaid.
Tyson said it reported the TysonandtheJusticeDepart- year that they received sub- company’s [sic] and they are But at least two cities, San
internalconductituncovered mentcouldeasesomeinvestor poenasintheJusticeDepart- thinking.02lbforSeptember,” Diego and Phoenix, have
Probe right away. “I am proud to concern as the $213 billion ment’s criminal investigation the Tyson employee that day banned the carotid hold since
leadacompanythattookap- U.S.meatindustryfacesscru- intochickenpricing. toldaTysonmanager,accord- Mr.Floyd’skilling,andCalifor-
propriate and immediate ac- tinyfromfederalagencies,as The extent of Tyson’s con- ing to the indictment, refer- nia Democratic Gov. Gavin
tioninreportingthewrongdo- well as civil lawsuits filed by ductintheallegedprice-fixing ringtoapotentialper-pound NewsomsaidFridayhewants
ContinuedfromPageOne ing we discovered to the supermarket chains, restau- couldn’tbelearned,butthere discount sought on chicken state lawmakers to eliminate
not guilty and a jury trial is DepartmentofJustice,”Chief rantsandconsumers.TheU.S. are some clues from last prices.“Onlybadthingisev- thepracticestatewide.
scheduledtobegininAugust. ExecutiveNoelWhitesaid. week’sindictment. eryoneelsedoesit,itwillbe Some unions have raised
AlawyerforMr.Pennsaidin Justice Department price- Tyson didn’t appear by hard not to do it.” The em- concernsabouteliminatingthe
courtlastweekthattheexecu- fixinginvestigationsoftenin- Thecompanysaidit name in the indictment, but ployeeworkedforTysonsince carotidholds.
tiveexpectstobefullyvindi- volveacompanythatseeksle- people familiar with the 1988 and the manager since “Ithinkthatthecarotidre-
reportedtheinternal
cated. Colorado-based Pil- niency. The department charges said the company is 2009,theJusticeDepartment straintwhenusedeffectivelyis
grim’siscooperatingwiththe promises confidentiality to conductituncovered identified as “Supplier-3” in saidintheindictment. agreattoolfortheofficers,of-
investigation,thecompanyhas those who self-report in the court papers, one of several AdaylaterTysonagreedto tenallowingasmallerofficerto
rightaway.
said.Claxtoncalledtheallega- leniencyprogram,whichithas chicken suppliers whose em- offer that discount, and the control a situation from a
tionsmeritlessandintendsto described as its most impor- ployeesallegedlysharedwith Tyson employee later that largersuspect,”saidSanDiego
contest them, a spokesman tantinvestigativetoolforde- oneanotherdetailsonpricing morning communicated with policeDet.JackSchaeffer,pres-
saidlastweek. tectingprice-fixingcartels. andbids. employeesofClaxtonandan- identofthelocalpoliceunion,
Under the Justice Depart- The financial benefits can Department of Agriculture is Tyson, as Supplier-3, ap- other,unnamedchickencom- inaradiointerview.
ment’santitrustleniencypro- be considerable, and compa- investigating meatpackers’ pears in the charges as both pany,theJusticeDepartment Det.Schaeffersaidthatpo-
gram, the first company to nies at times have raced one cattle-purchasing practices, an alleged participant in dis- alleged.Pilgrim’sMr.Pennon liceofficerswilladaptandthat
self-reportitsparticipationin anothertobethefirstonein whiletheJusticeDepartment cussionswithcompetitorsand March 31, 2015, was told by he hopes a replacement tool
a price-fixing conspiracy can the government’s door. Some issuedcivilsubpoenastobeef an object of scorn at other another Pilgrim’s employee canbefound.
avoid criminal convictions, leniencyrecipientsneverpub- andporkproducers,following times for selling what a rival thatTyson,Claxtonandother Some cities are aiming to
fines and prison time for its liclydisclosetheircooperation pressure from livestock pro- describedas“cheapchicken.” chicken companies agreed to strengthen existing policies.
cooperatingemployees.Aco- with the department or their ducers and some state attor- According to the indict- the discount, the indictment Philadelphia already bans
operating company also can admission of participating in neysgeneral. ment,afterapurchasingcoop- alleged, and on April 1, Mr. chokeholds and vascular re-
secure limits on monetary unlawfulconduct. Tyson,basedinSpringdale, erative sought a discount on Penn approved the same dis- straints, but Police Commis-
damagesitmighthavetopay Oneothercompanythatdid Ark., is the biggest U.S. meat chickenonMarch25,2015,an count. sionerDanielleOutlawsaidshe
inprivatecivillitigationcov- make a public disclosure in a processorbysales,producing employee of the company “Thebehaviorsetoutinthe would expand use-of-force
ering the same conduct. The recent probe was Thai Union aboutoneineveryfivepounds identifiedasTysonthefollow- indictment does not reflect rulesbyexplicitlybarringoffi-
company must admit to a Group,whichsaidin2017that of chicken, beef and pork in ing day called and spoke to the values of Tyson Foods,” cersfromsittingorkneelingon
criminalviolationofantitrust itsChickenoftheSeasubsid- thecountry. employees at Pilgrim’s, Clax- Mr.Whitesaid. aperson’sneck,faceorhead.
THEWALLSTREETJOURNAL. Thursday,June11,2020|A7
******
U.S. WATCH U.S. NEWS
Parents Assess Day-Care Risk
BYJOSEPHDEAVILA
ANDKATEKING
SS
RE Asthehard-hitday-carein-
P
OCIATED ditussctoryropnraevpiaruresssthourtedoopwenn,fDroinma
SS Longo, like many parents
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ME whetheritissafetosendher
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REFO 2-year-olddaughterbacktoher
O NewJerseychild-carecenter.
R
BO Theemergenceofmultisys-
RATTLE tinemchiilndfrleanm,amsaetroiroyusscyonnddriotimone
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HE potentially associated with
R/T Covid-19 that has affected
DDE morethan30childreninNew
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STOPHER LYoornkg,ohsaasigdi.vCeanlihfeorrnpiaau,sWe,aMshs-. JOURNAL
KRIDRIVE-THROUGHVOTING:TownClerkCarolHesselbachheldthe icnogrtdoendacnadseLsoausiswiaenlal.havere- STREET
boxforavotertodropoffhisballotWednesdayinNewfane,Vt. Ms.Longowantstoseehow ALL
wellherdaycaremanagesthe W
ECONOMY Federalrevenuefell25%last newregulationsitmustimple- THE
Consumer Prices Fell monthfromayearearlierto ment to reopen on June 15, FOR
$174billion,theTreasuryDepart- such as daily temperature N
A
Again Last Month mentsaidWednesday.Spending checks for children and new ELI
rose30%to$573billion. social-distancingrules,which NNI
U
U.S.consumerpricesdropped Inthefiscalyeartodate,the are now required in most B
A
forathirdstraightmonthinMay budgetgapstoodatarecord states.NewJerseyalsorecom- SS
asthepandemickeptshoppers $1.88trillion,up155%fromthe mends masks for children MELI
andtravelersathome,butthe firsteightmonthsoffiscal2019. above the age of 2 whenever Achild’stemperatureischeckedattheJerseyAvenueSmartStartAcademyinJerseyCity,N.J.
rateofdeclineininflationeased —PaulKiernan feasibleandcapsthenumber
asthecostofgroceries,rentand ofchildrenperclassto10. familiesofnonessentialwork- healthregulationsandhygiene makeitfinanciallychallenging
medicalservicesrose. FLORIDA “Ijustdon’twanttobethe ers. Day-care centers in Mas- requirements,accordingtothe for some businesses like Mr.
Theconsumer-priceindex, first one” back, said Ms. sachusettswerepermittedto EarlyCareandEducationCon- Magner’stosurvivebecauseit
Jacksonville in Lead
whichmeasureswhatAmericans Longo,40yearsold,wholives reopenMondayandKentucky sortium,whichrepresentslarge meanshiscentersmayhaveto
payforeverythingfromalcohol For GOP Convention in North Caldwell, N.J., and is set to lift restrictions on child-care companies—about turnsomefamiliesaway,once
tolawnmowers,fellaseasonally works as a business-develop- child-carecentersthismonth. 6,000centersacrosstheU.S. parentsbecomemorecomfort-
adjusted0.1%inMayaftercom- Florida’scampaigntolandthe ment manager for a Manhat- Only half of 386 families RadhaMohan,executivedi- ablesendingtheirchildrenback.
parabledeclinesof0.8%inApril RepublicanNationalConvention tan law firm. “I want to see from Massachusetts said they rectoroftheconsortium,said Mr. Magner said he de-
and0.4%inMarch,theLaborDe- appearedclosetomaterializing, thekinksworkedout.” wouldimmediatelycomeback federalsupportwasneeded. ferred rent at all six centers
partmentsaidWednesday. withofficialssayingatleastpart Day-careoperators,manyof whentheirdaycaresreopen,in “Foranindustrythatalready duringtheshutdown.Heowes
Excludingvolatilefoodand oftheeventislikelytomoveto which are struggling to stay asurveyconductedbyDaycares operated on incredibly thin $75,000 in back rent for one
energycategories,so-calledcore JacksonvillefromCharlotte,N.C. afloataftermonthsoflittleto United, a child-care advocacy margins,youarereallypushing locationandistryingtowork
pricesfell0.1%comparedwitha RepublicanNationalCommit- norevenue,saidtheyhavebeen groupinthestate.About45% theindustrytothepointofcol- out a payment plan with his
0.4%declineinApril,markingthe teeChairwomanRonnaMcDan- anxious to reopen but aren’t saidtheyneededmoreinforma- lapse,”Ms.Mohansaid. landlord,hesaid.
firsttimethatindexhasdeclined ielsaidWednesdaythatJack- sureifenoughfamilieswillre- tion and about 4% said they At Smart Start Academy, “Wearegettinghitleftand
inthreeconsecutivemonths,ac- sonville“isabsolutelyinthe turn.Manyoperatorssaidthe wouldsendtheirchildrenback whichrunssixchild-carecen- right,”hesaid.
cordingtotheLaborDepartment. front-runningposition.” nextfewmonthswilldetermine afewmonthsaftertheyreopen. tersinJerseyCityandHoboken Insomestatesthatrecently
—HarrietTorry “Wearegoingtokeep…the whethertheywillsurvive. “Ultimately it’s their deci- inNewJersey,abouthalfofthe reopened,child-careproviders
businessoftheconventionin Ms.Longo,whohasbeenon siontheyhavetomake,”said 350 families that were previ- said families are slowly get-
WASHINGTON Charlotte,”shetoldradiohost maternity leave since March Christopher Vuk, founder of ously enrolled plan to come tingmorecomfortablesending
HughHewitt.“Thatisforsure. caring for her son, now 2 DaycaresUnitedandownerof back when day care resumes, children back. Jaimie
Budget Gap Rose 92%
It’sgoingtobesmallerand months old, said she would the Rock and Roll Daycare saidco-ownerKarlosMagner. Batchelder,directorofRadiant
To $399 Billion in May scaleddown.Andthenweare likelywaituntilatleastAugust chain in Cambridge, Mass. “That’sgoingtoputusina KidsChildcareinDublin,Ohio,
lookingforadifferentcityfora tosendherdaughterback,so “They can either help us or bad position,” Mr. Magner said about 277 children were
TheU.S.government’sbudget celebration.” her day care can get accus- theycanburyus.” said.“Ithinkthatnumberwill enrolledinherprogrambefore
deficitrose92%inMayfroma Ms.McDanielalsomentioned tomedtothenewregulations As day-care providers pre- graduallyincreasethroughout the pandemic and by next
yearearlierto$399billion,as Nashville,Tenn.,Savannah,Ga., andtoworkoutstaffingissues. paretoreopen,theyalsofacea the calendar year, but I can week she expects to have
revenueplummetedandspending andPhoenixasamongthecities In recent weeks, states in- 30% increase in expenses to see one school starting with nearly200childrenonsite.
surgedoneffortstostemthe thathavecomeforwardwithin- cluding Ohio, Pennsylvania purchase personal protective 30 children when we previ- “MostparentsI’vetalkedto
pandemicandthefalloutfrom terest. and Rhode Island have lifted equipmentlikemasksandtore- ouslyhad130.” are just, ‘we need to go back
lockdowns. —AlexLeary restrictions on day care for trainstafftokeepupwithnew The 10-per-class cap will tonormallife,’”shesaid.
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Phase-3trialsofthreeexperimentalvaccines,includingModerna’s,aresettobeginthissummer.
U.S. Plans
Hutchinson Cancer Research whether people who receive
CenteronFriday. thevaccinesareinfectedwith
To Test There aren’t any vaccines thevirusanddevelopCovid-19
proven to work against the atlowerratesthanthosewho
newcoronavirus.Public-health getplacebo.
Vaccines authorities have said one or Thegovernmentmightplan
more will be needed before similarlylargetrialsforaddi-
lifecanfullyreturntonormal, tionalcoronavirusvaccinesin
becauseunlikedrugs,vaccines development, such as those
couldpreventinfectionsorat beingdevelopedbySanofiSA
ContinuedfromPageOne least prevent or limit the se- andMerck&Co.Dr.Coreysaid
ondhalfofJuly,andisintalks verityofCovid-19,thedisease testing plans for other vac-
with NIAID for the Phase 3 causedbythecoronavirus. cineshaven’tbeencompleted.
study,pendingtheoutcomeof An existing network of re- In May, Moderna said its
thefirststudyandapprovalby searchers who have run HIV vaccine,codesignedwithNIH
regulators.J&Jhadpreviously vaccine studies, which Dr. researchers,wasgenerallysafe
said it would start human Coreyleads,willhelptocon- and induced immune re-
testingbySeptember. duct the large coronavirus sponsesinasmall,early-stage
Separately, Pfizer Inc., vaccinestudies,hesaid. study. The second phase of
whichwithpartnerBioNTech The studies will be de- testingjustbegan.
SE has one of the more ad- signed,Dr.Coreysaid,toshow Human testing of the vac-
vanced vaccine candidates, moredefinitivelywhetherthe cinefromAstraZenecaandOx-
couldbeginitsPhase3trialas vaccines safely prevent dis- ford’s Jenner Institute has
earlyasJuly,apersonfamiliar ease.Researcherswouldstart started, but results haven’t
with the matter said. Pfizer thePhase3,NIH-fundedstud- beenreleased.
isn’t participating in the NIH iesonlyoncetheyhavesuffi- Researchershopethetrials
testingprogram. cientevidencefromtheearlier will yield answers within six
TheU.S.hassurpassedtwo testing that the vaccines are toeightmonthsoftheirstarts,
millioncoronaviruscases,with safeandelicitcertainimmune Dr. Corey said. Some vaccine
nearly 113,000 confirmed responsesinpeople,Dr.Corey developers have said their
deathsasofWednesdaynight, said.Thestudiesarealsosub- shots could become available
accordingtodatafromJohns jecttoclearancebyregulators. for emergency use on a
HopkinsUniversity. Each vaccine study is ex- shorter timeline, possibly as
Many vaccine candidates pectedtoincludeabout30,000 soonasthefall.
historically fail to make it people,somereceivingtheex- Thougheachvaccinewillbe
throughallphasesoftrials. perimental shots and others testedinaseparatetrial,the
“There’s a lot of optimism placeboshots,thoughthefinal companies are coordinating
inourcommunitythatavac- number of participants could certainaspects,suchasusing
cine should be possible, but vary, Dr. Mascola said. Each the same independent com-
we are very focused on the study will be conducted at mittee to monitor safety, ac-
factthatthathastobeproven morethan50sites,primarilyin cordingtoDr.Corey.Thiswill
inclinicaltrials,”Dr.Mascola theU.S.butpossiblyincluding allow researchers to better
saidinanonlinevideodiscus- othercountries,Dr.Coreysaid. compare how the vaccines
sion hosted by the Fred Researchers will track perform,hesaid.
A8|Thursday,June11,2020 THEWALLSTREETJOURNAL.
WORLD NEWS
China Lines Up Behind Its Street Vendors
Inapolicyreversal,
leaderswelcome
hawkers,amiddoubts
ofboosttoeconomy
BYJONATHANCHENG
China spent much of the
past two decades clamping
downonstreetvendorsinits
biggestcities,partofaneffort
to clean up the country’s im-
age, improve food safety and
hygieneandmoretightlyregu-
latecommerce.
Now,withChina’seconomy
contracting for the first time
sincethe1970s,Chineselead-
ers want to fill the streets
againwithhawkerstalls,food
trucksandotherkindsofside-
walkretailers.Thequestionis
how many will be willing to
heed the call, and how much
street vendors can move the GES
needlefortheworld’ssecond- MA
largesteconomy. YI
AfterChina’sgrossdomes- GETT
ticproductcontracted6.8%in SSE/
the first quarter of the year, RE
P
PremierLiKeqiangbrokewith NCE-
traditioninabandoningafor- A
R
msteaaldG,DhPetatrogldetlfeogris2la0t2o0r.sInin- GENCEF
May, Beijing needed to focus R/A
onensuringemployment. KE
A
Tothatend,Chineseleaders GB
haverolledoutastringofmea- GRE
surestosupporthiringforfresh ChinahasreverseditspolicyonstreetvendorslikeonesellingfoodnearaBeijingsubwayexitonWednesday,hopingtheycanhelprevivethecountry’seconomy.
graduates, migrant workers,
military veterans and millions support you,” he said, while tookoff,officialsandsomeciti- OneofChengdu’snewstreet Qingdao and Foshan have in- smallbusinesseshavebeenhit
ofotherworkerswhohavelost hailing streetside food stalls’ zens came to see street ven- vendors,LiZhenzhen,saidbusi- troduced similar measures the hardest by the pandemic-
theirjobsinthepandemic,with contributionsto“humanculi- dors as chaotic and unruly. nesswasstartingtopickupaf- loosening regulations for induced downturn. By target-
the official target of creating naryculture.” Dogged by complaints over ter she and a friend pooled streetvendors. ingeconomicactivitywithfew
nine million jobs and keeping Street vending was once a food-safetyviolations,counter- their resources in mid-May to China’sbiggestretailgiants, barrierstoentry,thehopeisto
theofficialurbanjoblessrateat vibrantpartofChina’sprivate feit goods and environmental sourcejewelryfromawholesale includingSuning.comCo.,Ten- quickly help lower-income
around6%orlower. economy,providingcheapand damage, vendors in some big market.Atthestart,theywent centHoldingsLtd.andAlibaba earnersfindastablefooting.
But the initiative that has handy products and services citieswereforcedintothesub- entire days without selling a GroupHoldingLtd.,arejump- But many also wonder
drawn the most attention is tocustomers.Withoutrenting urbsoroutofcitiescompletely. pairofearrings,butonSunday ingin,too,withcheaploans,lo- whether the hype around
Mr.Li’sefforttoencourageen- a booth or even hiring any Duringhisannualpresscon- alonetheypulledinsalestotal- gisticshelpandonlinepromo- streetstallshasmuchground-
trepreneurialismatthemicro staff, a vendor could start a ferenceinMay,thepremiersig- ing1,000yuan($140),enough tionsforownersofsmallstalls. inginreality.
scale—street stalls and small business almost right away, naled an apparent reversal of tocovertheirinitialinvestment. Meanwhile, Chinese investors “It definitely helps with
shops,whichhedescribedlast withatinyinvestment.These theCommunistParty’sverdict “I had been sitting idle at aresnappingupsharesofbeer employment,buttheextentof
week as being “as vital to businesseshelpedabsorbthe on vendors. He praised the homeformonthswithoutany brewers,somefoodproducers boosting overall economic
China as bigger and more vast population of laborers large southwestern city of income,”shesaid.“Ifthebusi- and a motor-vehicle company growthmaystillbeverylim-
high-endbusinesses.” who were fired as Beijing Chengdu, a metropolis of 14 nessreallygoeswell,Iwillcon- thatmakescargovansthatcan ited,”saidFanLei,aShanghai-
“Thecountrywillgetbetter movedtooverhaulitsbloated millionpeoplehesaidhadcre- sideropeninganonlinestore.” beconvertedintomobilestores. based economist at Sealand
ifthemarket,enterprisesand and inefficient state-owned ated100,000jobsinjustafew Inthepastfewdays,aslew Economists say there is Securities. “They don’t really
individual business owners companiesinthe1990s. weeksbyallowing36,000street of cities, including Shanghai, somelogictothegovernment’s haveothergoodoptionsinthe
survive and develop. We will After the Chinese economy vendorsbackontothestreets. Hangzhou,Nanjing,Changsha, push.Lower-incomepeopleand shortterm.”
Revered Sports Stars Slam Communist Party
Low Demand
Worsens
BYCHUNHANWONG Industrial
Two of China’s most cele-
brated athletes have de- GES Deflation
A
nouncedtherulingCommunist M
I
Pcoaurtnyt,raystuusnendingtodissepelainygforitas GETTY BYJOSHCHIN
sporting heroes lavish praise SSE/
on authorities for their per- PRE China’sindustrialdeflation
sonalsuccesses. OCK NCE- worsened in May, with fac-
HCbZnatoaahhavdmaivRiinddmooeeeoeyitiscsonniieernigtlenogisdvan—buCenuph-wbdssspiootoniohrntrcarehilec—tdsasemfswcraomhprithafphasaemoetni,saufa’pfsursrmoigeeoroihdsnmHtneoioaYvltelfhndoeer- GERRYPENNY/EPA/SHUTTERST FREDERICBROWN/AGENCEFRA fydfptMaooeersrraiamTtycyrece-hisgoscetamaifcntrspremodacutmpeochosxeruhdeineciicdtnaedtiorrsemorgysfopyl’.aosoneplrblaaeeianvrpdltgirhrdo3uaaeed.stna7murt%pfchlaoaieeneunirirdnrr--,
professedcampaigntotopple YeZhaoying,playingbadmintoninEngland,in1999,andhersoccer-starhusbandHaoHaidong,in2004,arehouseholdnamesinChina. China’s National Bureau of
theCommunistParty. StatisticssaidonWednesday.
In a Skype interview with While politically inclined China has qualified for the strictly observe the bottom China’s national governing May’s fall was bigger than
The Wall Street Journal from American athletes have in- tournament.Ms.Ye,now46,is line, and not be exploited by bodiesforsoccerandbadmin- April’s 3.1% decline and
theirhomeinSpain,thecouple creasinglyrebuffedpressureto one of China’s greatest bad- political forces with ulterior tondidn’trespondtorequests slightly sharper than econo-
doubleddownontheircallsfor stay silent—particularly amid minton players, winning the motives,”itsaid. tocomment.TheChineseFor- mistshadexpected.
thepartytobe“kickedoffthe thecontinuinguproaroverpo- worldchampionshiptwiceand InTuesday’sinterview,Mr. eign Ministry has dismissed Sluggish demand from the
stageofhistory,”whilerebuff- licebrutalityintheU.S.—itis reachingtheworldNo.1rank- HaoandMs.Yesaidtheyhave thecouple’scriticisms. U.S. and Europe weighed on
ing critics who accused them virtuallyunheardofforChinese ingduringthe1990s. long been disillusioned with “With regard to such pre- commodities, dragging down
ofbeingmanipulatedbyanti- sportsstarstoopenlycriticize Bothhaveremainedillustri- theCommunistParty,particu- posterousremarks,suchfarce, prices offered by China’s in-
Chinaforcesandbetrayingthe the Communist Party—much ousfiguresinChina,andgen- larlyitsapproachtomanaging wehavenointerestinissuing dustrialwholesalers,saidYang
state-runsportsmachinethat lesscallforitsdownfall. eratedtabloidheadlineswhen elite sports, which they de- comments,”aministryspokes- Weixiao,aneconomistatKai-
launchedtheircareers. Widely regarded as one of theymarriedlastyear. scribedasunprofessionaland mansaidlastweek. yuanSecurities.
“After retiring, we could China’sbest-everstrikers,Mr. After the couple’s live- overlyobsessedwithwinning. The couple said their anti- Meanwhile, China’s con-
have joined the system and Hao, now 50 years old, holds stream appearance, Titan Beijing’s mishandling of the partystancehasdismayedmany sumer inflation dropped to a
become officials,” but chose hiscountry’sgoal-scoringre- Sports,aninfluentialChinese initial coronavirus outbreak relativesandfriends.“They’ve 14-monthlowinMaybecause
not to, Ms. Ye said in the in- cord in international soccer sportsnewspaper,condemned anditseffortstocurbdissent asked ‘Have you gone mad?’ of easing food inflation. The
terviewonTuesday.“Itisthe and was part of the Chinese Mr. Hao and vowed never to inHongKongreinforcedtheir and said we’ve gone over- consumer-price index rose
system that obliterates peo- teamthatplayedatthe2002 publish stories on him again. resentmenttowardone-party board,”Mr.Haosaid.“Butthere 2.4%fromayearearlier,slow-
ple’ssenseofhumanity.” World Cup—the only time “Sportsstars,especially,must ruleinChina,theysaid. aresomewhosupportus.” ingfromApril’s3.3%growth.
FROM PAGE ONE
Grubhub to risk that regulators will seek tions.ForUber,itwouldcreate In January, Just Eat Chief talks had fallen apart before paniesdecidetomerge.
to block the deal or require amoreformidableglobalcom- Executive Jitse Groen called the coronavirus dented de- Other deals are unraveling
significantdivestituresisseen petitor, the largest outside of his Grubhub counterpart, mandforUber’scoreride-hail- asthepandemicupendsbusi-
Merge With as lower than it would be in China, Grubhub and Just Eat founder Matt Maloney, to ing business and added new ness and roils financial mar-
the case of a tie-up between said. broachthepossibilityofadeal impetus to its search for a kets,andtheGrubhub-JustEat
GrubhubandUber. DoorDashandUberareboth but didn’t submit a bid until deal. Demand for ride-hailing agreement could signal more
Just Eat Butstrikingatrans-Atlantic backedbyJapanesetechnology theUberdiscussionswereun- has since started to bounce activitytocomeasshutdowns
deal using stock as currency conglomerateSoftBankGroup der way in May, some of the back. ease and companies re-exam-
willbringitsownsetofcom- Corp. DoorDash and another peoplesaid.AnotherEuropean The companies had agreed inetheirprospects.
plications,andthetransaction player, Postmates Inc., both rival, Delivery Hero SE, also onapriceofabout1.925Uber Mall operator Simon Prop-
ContinuedfromPageOne willrequiresignofffromboth filedtogopublicearlierinthe considered a bid but decided sharesforeachGrubhubshare erty Group Inc. sought on
ers and restaurants. “That setsofshareholders. year. againstit. and had estimated potential Wednesdaytoterminatea$3.6
doesn’tmeanweareinterested InasignJustEatmayhave Consolidationhasbeenex- Mr.Maloney,whohasbeen cost savings could top $300 billionagreementtobuyTaub-
indoinganydeal,atanyprice, work to do selling its own pected and the need became negotiating a sale from his million,accordingtopeoplefa- manCentersInc.,arguingthat
withanyplayer,”itadded. shareholdersonthemerits,the morepressingasthepandemic Michigan cabin, has been miliarwiththematter.Atpre- itssmallerrivalhadbreached
JustEatTakeawaywascre- company’s American deposi- unleashed a torrent of de- friendly with Mr. Groen, who vious prices, that would have deal terms by failing to ade-
atedthisyearthroughthe$11.1 tary receipts dropped more mand. Grubhub, which went founded Takeaway.com, and valuedGrubhubataround$70 quately cut costs in response
billion merger of the U.K.’s than10%onnewsofthetalks. public in 2014 and operates UberCEODaraKhosrowshahi ashare. towidespreadshopping-center
Just Eat and Netherlands- Uber’s shares closed down otherbrandsincludingSeam- foryears. As soon as the potential closures.
based Takeaway.com. It roughly 5% Wednesday and less,wastheleaderinthein- Mr.GroenwillremainCEO dealwithUberbecamepublic, Private-equity firm Syca-
brought together one of the Grubhub’srose2%. dustry and the only major of the combined company, prominentpoliticiansincluding morePartnersscrappedadeal
biggest food-delivery compa- Thetie-upisunlikelytodi- playertoturnaprofit. which is expected to be 30%- Sen. Amy Klobuchar (D., lastmonthwithVictoria’sSe-
nies in the U.K. with Take- minishtheintensecompetition Butitsmarginscameunder ownedbyGrubhubsharehold- Minn.)voicedconcernsabout cret parent L Brands Inc. to
away.com, which had a big in the U.S. meal-delivery in- pressureinthepastyearasit ers. Mr. Maloney will run its its potential impact on cus- buyamajoritystakeinthelin-
presence in continental Eu- dustry, which has grown as spentmoneytowardoffcom- North America business and tomersandcalledontheFed- geriechain.
rope. newerentrantssuchasDoor- petition,andDoorDashisnow joinitsboard. eral Trade Commission and Globaldealvolumeisdown
GiventhatJustEatdoesn’t Dash Inc. grab market share the largest player in the U.S. UberhadapproachedGrub- JusticeDepartmenttoinitiate about47%sofarthisyear,ac-
haveapresenceintheU.S.,the with discounts and promo- market. hub earlier in the year but investigationsshouldthecom- cordingtoDealogic.
THEWALLSTREETJOURNAL. Thursday,June11,2020|A9
WORLD NEWS
U.S. Boosts Navy Presence
In a Tense Pacific Region
BYALASTAIRGALE The U.S. carrier deploy- ruscarrierswhowerekeptoff
ments come after the USS theships,accordingtoaNavy
The U.S. deployed two air- Theodore Roosevelt was official.
craft carrier strike groups to forced into port in Guam in Among new procedures,
the Pacific under new health lateMarchafterseveralcrew crew who come down with a SS
procedures to guard against members tested positive for fevercancallformedicalstaff RE
P
anothercoronavirusoutbreak, thecoronavirus,raisingques- withouthavingtowalktothe A
M
asChina’smilitarystepsupits tionsaboutU.S.militarypre- sick bay and potentially ZU
activityintheregion. paredness in the Pacific. The spread the virus, and can be PIX/
ThedeploymentsoftheUSS outbreak eventually infected isolatedindesignatedareason NET
RonaldReaganandUSSNim- nearly1,200andkilledone. board. Video messages on PLA
itz boost the U.S. naval pres- Rear Adm. George M. shipsrelaytheimportanceof VY/
A
enceinanareamarkedbyten- Wikoff, commander of the use of personal protective N
S.
sionwithChinaoverterritory. strike group led by USS Ron- equipment, hygiene and en- U.
Taiwan’s defense ministry ald Reagan, which departed courage social distancing RS/
YE
saidTuesdaythatseveralChi- from its home port of Yoko- whenpossible. B
nese jet fighters briefly sukainJapanonMonday,said “Thebottomlineisthatthe ALIE
crossed into Taiwan’s air de- theNavyhadlearnedtocreate mission endures and doesn’t NAT
fense identification zone, an a“bubbleofhealth”fromthe take a break for the virus,” TheUSSNimitz,above,andUSSRonaldReaganaretakingextracareagainstcoronavirusontheirmission.
area adjacent to coastlines experience of the USS Theo- Adm. Wikoff said from the
considered sensitive for na- doreRoosevelt. USS Ronald Reagan on a call intoacrisisintheNavyafter A study released on Tues- Between April 20 and 24,
tionalsecurity.Japanreported Crewmembersontheflotil- with reporters. “We continue then-acting Navy Secretary dayshowedthatmorethana the Navy and the Centers for
areturn-tripbyaChineseair- lasledbytheUSSRonaldRea- to promote regional security Thomas Modly fired the car- third of a sample of crew Disease Control and Preven-
craft carrier and its strike ganandUSSNimitz,whichleft with our partners and main- rier’scommander,Capt.Brett membersfromtheUSSTheo- tiontested382crewmembers
groupofsmallermilitaryves- SanDiegoonMonday,wereall tainaveryhighstateofreadi- Crozier, after Capt. Crozier doreRoosevelthadantibodies forantibodiesforthenewcor-
selsthroughJapan’ssouthern testedtwiceforthecoronavi- ness,”hesaid,whiledeclining wroteanddistributedamemo thatcouldneutralizethenew onavirus. Of those, 228 were
islandstringforthefirsttime rus over a two-week quaran- todiscussspecificareasofop- calling for more decisive ac- coronavirus, data that re- foundtohaveantibodies,and
in April, and tensions have tine period before embarka- eration. tion by the Navy to evacuate searchers said was a promis- 135 had antibodies with
also risen in the South China tion. The process identified The outbreak on the USS thecrew.Mr.Modlyresigned ingindicatorofatleastshort- enoughstrengthtoneutralize
Sea. someasymptomaticcoronavi- Theodore Roosevelt spiraled shortlyafterward. termimmunityafterinfection. thevirus.
China and India Move to Ease Standoff at Himalayan Border
BYRAJESHROY dozenarmoredvehicles,theof- The countries stood head- theirlong-runningcontestfor der,attemptingtomatchsimi- meetingsbetweenthetwomil-
ficialsaid.Indiaalsohaswith- to-headagainsteachotherfor globalinfluence.Disputeshave larearlierChineseefforts,may itaries,includingaface-to-face
NEW DELHI—India and drawn some of its forces and morethantwomonthsin2017 grown in the past decade also have been a factor in discussionlastweekbetween
China have started pulling vehiclesfromthefrontline. overastretchoflandbetween along their more than 2,000- China’s recent moves along seniorcommandersinMoldo,
back some of their troops China didn’t directly con- China and Bhutan, an Indian mileborder,withmuchofthe theborder,Mr.Pantsaid. on the Chinese side of the
from a standoff in disputed firmthatitstroopshadpulled ally,thatIndiaregardsaspiv- frontier contested and unde- Skirmisheshavebrokenout frontier.Theydiscussedways
borderareasintheHimalayan back or if it had made any otal to defending its claims fined. at other disputed Himalayan toavoidunplannedencounters
mountains, following recent specific changes along the Bothcountriesclaimsignif- borderpoints,includingatthe indisputedareasandhowto
talksbetweenseniormilitary border,butataregularnews icant chunks of each other’s siteoftheinitialflare-uplast avert escalation if the two
leadersanddiplomaticefforts briefing in Beijing, Chinese Areductionof territory.SomeinIndiaworry month, which saw scores of countries’ soldiers run into
tocalmtensions,accordingto Foreign Ministry spokes- thatChinaistryingtogradu- Indian and Chinese soldiers eachother.
troopsindicates
anIndiansecurityofficial. woman Hua Chunying said allyseizetheregion,oneslice shout at each other and ex- China and India have both
Chinesetroopshavemoved Wednesday that, “Currently, de-escalatingstrife, atatime. change physical blows. Some builtmoreroads,bridgesand
back several miles from the thetwosidesaretakingcorre- Therivalryhasescalatedas onbothsideswereinjured. military installations in and
anofficialsays.
front line at three disputed sponding actions to ease the tensionsrosebetweentheU.S. The two countries have aroundthedisputedregionsin
border-patrolpointsinoneof situationattheborder.” andChinaduringthecorona- since deployed thousands of recent years, increasing the
theareas,thesecurityofficial China and India fought a viruscrisis,analystssay. additional troops and arma- likelihoodofencounters.
said. “Reduction in troops war along the border in 1962 “China is clearly under ments to strategic border Furthertalksareplannedat
isn’tsubstantial,butitshows andthetwocountriesdispute against China. Tensions re- pressure, both domestically points, mainly near the high- lower command levels to re-
the intent of the two armies thelocationoftheirboundary mained high until the two andglobally,”saidHarshPant, altitudePangongTsolake,ex- solve outstanding issues in
toward de-escalating ten- inseverallocations.Flare-ups sides worked out a deal for professorofinternationalrela- pertsandIndianofficialssay. otherdisputedareas,including
sions,”theofficialsaid. betweenpatrolsanddisputes theirtroopstostepback. tionsatKing’sCollegeLondon. Removing troops from the nearthenorthernbankofthe
Chinese forces have re- about infrastructure, from The repeated border dust- A recent surge in Indian most volatile border areas is glacial lake, where the situa-
moved some temporary shel- roads to troop facilities, fre- upsandposturingbetweenthe constructionandtroopmove- seenasaconfidence-building tioncontinuestobetense,ac-
tersandwithdrawnnearlytwo quentlyoccur. two nuclear powers reflect ments on its side of the bor- exercise following weeks of cordingtotheIndianofficial.
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FROM PAGE ONE
Monotony because monotony makes it pansiontodebatingwhetherto prieve. Usually, she must con- hundredsandthousandsofpeo- Another HSAM individual,
moredifficultforourbrainsto cancel her spring break plans. tend with a steady stream of pleworld-widehaveHSAMand “Taxi” actress Marilu Henner,
anchorexperiencestoparticular That morning she had a flaky snippets, good and bad, that don’t know it. To qualify for 68,sayssheremembersevery-
Dulled dates.Forpeoplewithhighlysu- croissantfromaTraderJoe’ssu- can’t be turned off. “I always havingHSAMatUCIrvine,indi- thing from her Los Angeles
periormemories,forgettingde- permarket. Askedaboutherac- second-guess everything I’ve vidualstakememorytestswith quarantineandthat“thingsget
tailsisanunnatural,andbother- tivitiesonApril6,shethinksfor said and done,” Ms. Donohue questionssuchas,“Describein recordedquickly”inhermind.
Recall some, anomaly. Dr. Yassa said a moment and says it was a said,becauseshecanenvision detail your memory of every- Timehasn’trewrittenevery
theyaremorelikelytodwellon Monday.Thenshepauses.“Ac- thepastsovividly.Now,“Iwon’t thingthathappenedexactlyone lineforHSAMindividuals.Some
theirpastwithoutnewmemo- tually, I cannot remember too necessarilyreliveApril6.” year ago today” and “When can still excavate deep-seated
riestofocuson. manyspecificdetailsaboutit.” JacobHausler,a16-year-old weretheOscarsheldin1995?” memorieswithease.
ContinuedfromPageOne Dr.Yassa’spredecessorpub- Sometimesshewonderswhat Some have other talents Ms.Pasternak,whoworksin
(placeisn’tsomuchanissue). lishedapaperonHighlySupe- dayoftheweekitis.Thisisun- alongsideHSAM.Forexample, studentaffairsatAuburnUni-
Nearlyeveryone,itseems—su- rior Autobiographical Memory familiar territory because Ms. ‘Actually,Icannot JoeyDeGrandis,35,canidentify versity,saysshehasbeenporing
periorautobiographicalmemory in 2006, after a woman con- Donohue,30,sayssheremem- thedayadatefrom400years over older memories more in-
remembertoomany
ornot—haslamentedforgetting tactedhimdescribingherabil- berseverydayofherlifesince ago falls on, though 150 years tensely since her timeline
thingsduringlockdown. ity. UC Irvine has identified age 8, including, for example, specificdetails ago is his sweet spot. It took slippedawayafterMarch17.Re-
TheUniversityofCalifornia, about70peopleintheU.S.with ContinentalAirlinesFlight3151 himlessthanfivesecondsinan cently,ithassnappedback,she
aboutit.’
Irvineissoonlaunchingastudy HSAM.Some32caseshavebeen on Aug. 16, 2010, she took to interviewtocorrectlylinkJune said,duetotheprotestssparked
to understand how the social identifiedinItaly,saidProf.Pa- Knoxville,Tenn.Onthatflight, 12, 1878, to its corresponding bythekillingofGeorgeFloydin
isolationofthepandemiclock- triziaCampolongoofSapienza she had a Sprite and bonded day(Wednesday). policecustodyinMinneapolis.
down has affected memory, UniversityofRome,whichalso with the two children sitting Some HSAM people are so- Ms. Pasternak says she has
moodandemotions,saidDr.Mi- studiesthephenomenon. near her over wanting to go studentinPhiladelphia,sayshe cial-distancing with memories reliedonthetelevisionprogram
chaelYassa,directoroftheCen- Despitetheirseemingsuper- swimmingwhentheylanded. hashadworriesaboutforgetting intact. Jessica Derrick, an 11- “LastWeekTonightwithJohn
ter for the Neurobiology of powers,someHSAMindividuals “Ithoughtthesaying‘Ican’t life events, for fear of looking year-oldinLasVegas,saidshe Oliver” to help keep track of
LearningandMemory.Thetest appearedjustasconfoundedby rememberwhatIdidyesterday’ foolishinfrontofpeopleskepti- canpicturerecenteventsusing dates. But the show has aired
willbeofferedtoarangeofsub- quarantineastherestofus. wasjustanexpression.Ididn’t calabouthisrecall.Heremem- an image of a calendar in her severalsegmentsonthecorona-
jects,notjustthosewithHSAM. NicoleDonohue,ateacherin realizepeoplecouldn’tactually bers more clearly events that mind.Shesaysherrecollection virus,soshecannolongercount
Peopleneedso-calledcuesto Morris Township, N.J., with dothat,”shesaid.Onesurprise happenedonMondaysandFri- hasfalteredbrieflytwiceinher onittojogwhatshemighthave
formandretrievetheirmemo- HSAM,isabletorapidlytickoff shefoundinlockdown:Nothav- daysduringquarantine,withthe life, both times triggered by donethatweek.“WhatdidIdo
ries,saidDr.Yassa.Newinterac- everythingshedidonMarch6, ingaccesstoherrecentcacheof interveningdayslesscrisp. someonevomitingnearby.“My on May 3? John Oliver talked
tionsandvariedlocationshelp fromteachingU.S.westwardex- memorieshasbeenabitofare- Dr.Yassaestimatesbetween brainwassoupset,”shesaid. aboutcoronavirus—again.”
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GroupInc.,whichhavefiledfor given birth to their second nonessentialitemssuchaswa-
bankruptcy protection. Finan- child.Hewasgettingahandful terbottlesandyogamatsfrom
cial-services firm UBS Group ofhoursofsleeppernightand its website to concentrate on
AGrecentlypredictedtheper- didn’t shave for a month. He deliveringessentialslikefood
centageofgroceriessoldonline stopped working out. Outside and cleaning supplies. It tin-
will rise from 3% this year to of work hours, his time was keredwithitsfulfillmentpro-
15%by2025. consumedbyhisnewbornson cesses, processing orders for
Mr. Green, who is 35 years andlate-nightemailsandcalls high-demand products in one
old, launched Thrive in 2014 withexecutives. sectionofwarehouses.Itprior-
withthreepartners.Itsgoalis It was difficult to concen- itizedorderswiththelongest
toofferconsumersthekindof tratefromhissetupinthefam- deliverytimes.Itstoppedsell-
naturalandorganicfoodprod- ily’s guest bedroom. He took ing low-demand items in the
ucts sold by Amazon and its twomonitorsandhisMacBook backofthewarehouses,partly
Whole Foods Market unit at Proandsetupanofficeinhis so workers wouldn’t have to
whatThrivesaysarewholesale closet, placing the equipment wastetimefetchingthem.
prices. The Costco-like mem- on shelves near his T-shirts Gradually, the time to pro-
bership-based company takes andjeans.Hescrappedastra- cessordersmovedintheright
ordersonlineandpromisesde- learned the World Health Or- Earlier in March, Chief Fi- thought closing the online tegicplanandbuiltanewone, direction.InearlyMay,Thrive
liverywithintwotothreebusi- ganization had declared the nancialOfficerKarenCatehad store for one or two weeks staying up one night until 3 restored24-hourorderingtoall
ness days for most orders. coronavirusapandemic.People askedThrive’ssupply-chaindi- straightcouldsolvetheprob- a.m.tofinishit.Theplanre-ex- states. Some products remain
Supplierssendgoodstoware- werebuyinginapanic. rector to order five times the lem.“Asthebackloggrew,the aminedhiringgoalsandwhen outofstock.Mr.Greensaidit
housesinIndianaandNevada, Hekeptrefreshingthenum- usualamountofcannedgoods tensiongrew,”Mr.Greensaid. thecompanyshouldexpandits could be months until the in-
where they are sorted and bersuntillatethatnight.They andcleaningsupplies.Sheleft To some, limiting online fulfillment network, among ventoryisbacktofullcapacity.
packed by Thrive employees keptclimbing. outtoiletpaper.“IfIcouldgo storehoursseemedasensible otherthings,torampupfaster. Higher costs have reduced
and delivered throughout the Thrivealreadyhadbeenor- back,Iwouldchangethatone,” middle ground. Ms. Cate, the thepercentageofprofitmade
contiguousU.S.byFedExCorp. deringmorefromitssuppliers, shesaid. CFO, was skeptical. She said onorders,Mr.Greensaid.And
Frustrated members
andregionaldeliveryfirms. butitwouldn’tbeenough.“It ChiefMerchandisingOfficer shefeltThrivecouldgaincon- thestorehashadtodipintoits
Mr. Green calls Thrive the feltlikeanalternatereality,”he Jeremiah McElwee couldn’t trolofitsorderbacklogwith- Holdingontocustomersbe- cashreservestopayforaspike
“un-Amazon”because,hesays, said. “We thought we were find flour anywhere. While outlimitingmemberstoorder- came harder as Thrive strug- ininventoryexpenses.Butthe
itoffersacuratedselectionof preparing for a 10-year flood. Thrivehadincreaseditsorders ingduringworkinghours.She gledtohandletheorderinflux. year’srevenueprojectionshave
merchandise. Early on, many Instead, a 100-year flood was from suppliers, he discovered worried that members who Online,customerswerethreat- risen,andthecompanyisina
reluctant investors had the staringusintheface.” theycouldn’tdeliver.Pandemic worked during the day would eningtoleaveoverthedelays. strong cash position, he said;
same question: How would it Days later, the country buying,Mr.McElweesaid,had beshutout.Sherelentedafter Memberswerefrustratedand hedeclinedtoprovidedetails.
compete with Amazon or shifted into lockdown mode. farexceededThrive’sdemand seeing internal metrics that questioned why Thrive was Thrive’sgoaltoreachprofit-
WholeFoodsMarket? Within a week, Amazon was forecasts.Ithadtorebuildpro- showed delivery times would takingonnewcustomers. ability by the end of 2022
Mr.Greenwasbettingthat struggling to meet orders jections in real time. “There onlyincrease. Susan Crowe said Thrive hasn’tchanged,hesaid.“With
consumerswouldtryitoutfor promptly.OnMarch17,itsaid wasuncertainty,therewasfear On a midnight call, Mr. Marketextendedhermember- our growth accelerated,” he
itscarefullyselectedinventory it was prioritizing the ship- andtherewasanxiety,”hesaid. Green and co-founder and ship by three months at no said,“weexpecttogetprofit-
and competitive prices and ments of medical supplies, In daily Zoom meetings, ChiefTechnologyOfficerSasha charge after she complained ableevenfaster.”
stickaroundbecausetheyfeel household staples and other about20seniorexecutivesand Siddhartha decided to move about the limited hours. Ms. Thecompanyhopestoadda
goodaboutshoppingthere.He high-demand products. Toilet managersdebatedhowtode- forward with limiting the Crowe said she understands thirdwarehousetoitsdelivery
alsobilledthecompanyasso- paperandmanycleaningsup- crease demand. Some sug- hours. They told other execu- whyThriveexperiencedprob- networkbytheendofnextyear.
ciallyconsciousbyadheringto pliesbecameunavailable,and gested the company stop ac- tives the next day and insti- lems, but that the company Doingso,Mr.Greensaid,would
suchpracticesasnotoffering shippingwastakingweeksfor ceptingnewmembers.Others tuted the new policies on seemedtorecoverslowerthan allowittoshippackagesintwo
geneticallymodifiedproducts. some products. Amazon re- othergrocers. daysorlesstoalmost100%of
Thrive, which is privately tooleditswebsitetoencourage PandemicBoom Mr.Greensaidthecompany members,upfrom80%now.
held, eventually raised more shopperstobuyfeweritems. triedtobeupfrontwithmem- The lessons from the pan-
Onlinesaleshaverisensharplyduringthecoronaviruspandemic.
than $160 million. It now has A survey by investment bers about the problems. On demichavechangeditsfulfill-
more than 800,000 members bank Jefferies Group LLC WeeklyU.S.onlinesales,changefrompreviousyear March23,Thrivebeganalmost mentprocesses.Mr.Greensaid
whopay$60ayear.Although showed that almost one-third daily blogs on its website ex- Thrive will hold 20% more in-
Totalonlinesales Onlinegrocerysales
Thrive doesn’t disclose sales, of respondents said they plainingthelengthofshipping ventory and will work with a
Mr.Greensaidtheywereinthe turned to non-Amazon sites 140% delays, percentage of inven- largernumberofsuppliers.
hundredsofmillionsofdollars during the pandemic because torythatwasunavailableand Mr. Green said he is aware
120
annually. ofdeliveryandinventoryprob- what the store’s hours were of the high stakes as Thrive
lems. 100 fortheday. seeks to hold on to the more
At Thrive, new paid mem- In early April, when ship- than 100,000 new members
Boost in orders
bershipsign-upsinMarchand 80 ments from its Indiana ware- added during the pandemic.
OnMarch11,Mr.Greenwas April were up threefold from house were delayed two to Deliverytimeshaveshrunkat
60
preparingtoleaveworkwhen the prior year. But the same threedayslongerthanithad Amazon,whichhaspledgedto
heglancedatacomputermon- problemsthatplaguedAmazon 40 toldcustomers,Mr.Greensent invest $4 billion in meeting
itorshowingthecompany’sfi- ravaged Thrive. Customers anapologeticemailtoaffected customer needs and potential
nancialmetrics.Thatday’srev- rushed to buy cleaning sup- 20 members.Hetoldthemsafety measuresforsafetyandexpan-
enue line shot up like the plies, canned food and other precautionssuchassocialdis- sionduringtheoutbreak.
0
handleofahockeystick. essentials.Asix-monthsupply tancingatitswarehouseswere E-commerce is “seeing the
Hemessagedanexecutiveto oftoiletpaperranoutinthree March2020 April May addingtothebackup. futurenow,”saidMr.Green.He
makesuretherewasn’tabug days. Mr. Green wasn’t sure InanApril13videoblog,he isbetting,hesaid,thattheon-
Notes:Includesfood,household,healthandbeauty,baby,petandalcoholproducts;dataare
in the system. There wasn’t. howquicklythecompanycould throughMay23. told customers he, too, was line habits made during the
Checking CNN’s website, he addressthebacklog. Source:Nielsen waiting for his orders. “We pandemicwillcontinue.