The Wall Street Journal - 13 06 2020 - 14 06 2020

2020·28.24 MB·English

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It’s Not Do E-Tailors Measure Up?
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THE WALL STREET JOURNAL WEEKEND
SATURDAY/SUNDAY, JUNE 13 - 14, 2020 ~ VOL. CCLXXV NO. 138 HHHH $5.00
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Protest
Testing Truckers for Virus Snarls Africa’s Trade Routes
What’s
Leaders
News
Keep Up
World-Wide
Policy
P
rotestssparkedby
theMaypolicekilling Pressure
ofGeorgeFloydare
scheduledforthisweek-
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cities,whileorganizers
areeyeingasummerof Marchessetforthis
demonstrations.A1,A3
weekendandbeyond
(cid:2)TheCDCurgedAmeri-
tocallforreallocating
canstowearmasksanddis-
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rnuusmcbaesresofhsatvaetessu,rsgoemdeina REET Protests sparked by the
ST May police killing of George
placesarecitingthein- ALL Floyd are scheduled for this
creasesasreasontopause W
onreopeningplans.A6 HE weekend and next in several
T cities, while organizers are
(cid:2)TheU.S.bloodsupply FOR eyeing a summer of demon-
isatcriticallylowlevels N
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afterCovid-19shutdowns NS
A center the issues of racial in-
ofvenueswhereblood W
S equalityandlawenforcement’s
drivestypicallyoccur.A6 WILL treatmentofminorities.
(cid:2)TheTrumpadministra- SIDELINED:AlongEastAfrica’sborders,testingoftruckdriversamidfearsaboutthespreadofthecoronavirusiscreating High-profilepolicychanges
tionreleasedarulethat trafficjamsaslongas50miles.TruckerslikeSimonKaranga,above,mightwaitseveraldaysfortheirresults.A8 by schools, companies and
wouldrollbackObama-era public officials continued on
protectionsfortransgen- FridayinresponsetotheFloyd
derpatientsundertheAf- Over 1,300 China Medical Suppliers killing and subsequent na-
fordableCareAct.A3 tionaldialogue.ClemsonUni-
versity trustees agreed to
(cid:2)Policeinriotgearfanned
changethenameoftheSouth
outacrossHongKongaiming Gave FDA Same False U.S. Address
Carolinaschool’s honorscol-
toquashpossibleunreston
lege,continuingtoaddressits
theanniversaryofademon-
tiestoslavery.StarbucksCorp.
strationthathelpedgalvanize
saiditwouldmakeavailableto
lastyear’smassprotests.A8
employeesT-shirtsbearingthe
(cid:2)Trumpwilladdress sloganofthegroupBlackLives
WestPointgraduatesSat- More than 1,300 Chinese agent. No company by that proof of legitimacy. The FDA Matter, reversing an earlier
urdayatamomentwhen medical-devicecompaniesthat ByAustenHufford, nameexistsintheU.S.,accord- in May withdrew permission policy.NewYorkGov.Andrew
MarkMaremont
hisrelationshipswith registered to sell protective ing to databases of corporate fordozensofmanufacturersin Cuomo, a Democrat, signed
manymilitaryleadersare gear and other equipment in andLizaLin records.CCTC’spurportedad- China to export N95-style legislationallowingthedisclo-
underpressure.A5 theU.S.duringthecoronavirus dressisathree-bedroombrick masks to the U.S., reversing sure of law enforcement offi-
pandemiclistedastheirAmeri- U.S. who is available during house in Wilmington, Del., emergencyapprovals granted cers’disciplinaryrecords.
Business&Finance
canrepresentativeapurported business hours. These agents whosetenantsandlandlordsay themonthbefore. After three weeks of pro-
Delaware entity that uses a arethepointofcontactforthe theyknownothingaboutCCTC The FDA declined to com- tests, leaders of groups that
false address and nonworking FoodandDrugAdministration oranyChinesecompanies. mentonCCTC.Aspokeswoman have taken to the nation’s
(cid:2)Over1,300Chinesefirms phonenumber,accordingtoa to coordinate inspections, re- TheJournal’sfindingshigh- saiditsregistrationdatabaseis streetssaytheyarelookingto
thatregisteredtosellprotec- WallStreetJournalanalysis. callsorotherurgentneeds. lightflawsintheFDA’smedi- PleaseturntopageA6 PleaseturntopageA5
tivegearandotherequip- All foreign medical-device Atleast1,300registeredChi- cal-device database, where a
mentintheU.S.duringthe makersmusthavearepresen- nese companies have listed listing is commonly cited by (cid:2)CDCsetsguidelinesfor (cid:2)Protestersnegotiateover
pandemichavelistedastheir tativewitharealaddressinthe CCTCServiceInc.astheirU.S. sellersofprotectivemasksas safetyinpublic.........................A6 Seattle‘autonomouszone’....A3
Americanrepresentativea
purportedDelawareentity
thatusesafalseaddressand Investors Bet on Volatility, Global Economy Faces
nonworkingphonenumber.A1
(cid:2)Economicnumbersfor Steep Climb to Recover
Aprilcominginfrom Making Markets Even Wilder
aroundtheglobeshowpan-
demic-drivenlockdowns
droveacontractionthathas BYPAULHANNON and one of the few that re-
littleparallelinhistory.A1
portsmonthlygrossdomestic
(cid:2)Californiaisexamining Dramaticstockswingssparkboominginterestinariskytactic LONDON—Economic num- product—saidoutputinApril
Amazon’sbusinesspractices, bers coming in from around was down 20% from March
focusingatleastinpartonhow the world are laying bare a and25%fromayearearlier.
thecompanytreatssellers BYGUNJANBANERJI paniesoroilprices. stark truth: April was a crip- Scaledglobally,thatwould
initsonlinemarketplace.B1 Thepandemichascementeditsarrival, plingmonth. beequivalenttoa$1.15trillion
Marketswereoncedominatedbybulls luringfreshcashandinterestasstock Coronavirus-driven lock- lossinoutputduringthose30
(cid:2)Hertzwonabankruptcy
whothoughtstockswouldgoupandbears swingsjumpedtonewlevels.Sincethen,big downs implemented in coun- days, or roughly the annual
judge’sapprovaltoraiseup
whothoughttheywouldgodown.These movesinstocks—bothupanddown,includ- triesworld-widewereattheir outputofIndonesia,acountry
to$1billioninnewequity
days,anotheranimalisontherise.It ingadropofmorethan1,800pointsinthe strictest then, and drove a of270millionpeople.
fromacounterintuitive
doesn’tmuchcarewhatstocksdo,aslong DowJonesIndustrialAverageonThursday— globalcontractionthathaslit- “The key point is we will
rallyinthefirm’sshares.B1
astheydosomething. haveprovidedtraderswithampleopportu- tleparallelinhistory. lose a massive amount of
(cid:2)U.S.stocksrecovered Theseinvestorsarefocusedonvolatility, nitytoprofit. The depth of the decline globaloutput.Itwouldbeillu-
somelostgroundadayafter theamountofmovementinpricesover Volatilitytradinghasgrownsobigthat shows the challenges before sory to think we can freeze
sufferingtheirworstrout time.Inrecentyears,volatilityhasgone tradingonexpectedmarketmovescanitself returningtopre-pandemiclev- anddefreezetheglobalecon-
sinceMarch,butstillposted fromaspecialtyofderivativestraderstoa movemarkets.Betsonlowervolatilitycan els of activity, given that the omy without consequences,”
lossesfortheweek.B13 vehiclefortradinginitsownright.Inves- spuracyclethatmagnifiesperiodsofcalm. damage to business and said Jérôme Jean Haegeli,
torsbigandsmallarewageringhundredsof Atothertimes,thestrategiescanworsen householdincomesislikelyto SwissRe’schiefeconomist
(cid:2)Starbuckssaiditwould
billionsofdollarsonvolatility,includingby downturnsoncetheybegin. delayacompleterecovery. OfficialsattheU.S.Federal
makeT-shirtsbearingthe
bettingdirectlyonthemovesofmeasures Toolsusedtotradevolatility,suchasop- On Friday, Britain—the Reserve expect the national
“BlackLivesMatter”slogan
liketheS&P500,sharesofindividualcom- PleaseturntopageA10 world’ssixth-largesteconomy PleaseturntopageA2
availabletoemployees,re-
versinganearlierdirective
nottodisplaytheslogan.B3 Is There a Line at Trader Joe’s? EXCHANGE Surge of Online Sales
(cid:2)Californiahadsaidfilm Social-Media Spies Keep Track
andTVproductioncouldre-
sumeFriday,butfeware Puts Shoppers on Hold
readytoshout“lights,cam- i i i
era,action”justyet.B3 Grocery chain is crowded in the best of
times. That’s where watchers come in. BYSHARONTERLEP pers frustrated by delayed
NOONAN shipments and sluggish re-
GetReadyforthe A month after returning fundsforreturnedgoods.
too-small yoga pants he had Someshoppersarerunning
SecondCoronavirus
BYSTEPHANIEYANG tatocrackers. bought his girlfriend, Mark up against hourslong wait
Wave
A13 The quick shopping trip Quinn still hadn’t gotten his times to be able to talk with
Adir Yolkut, a 33-year-old came courtesy of Jacob moneybackfromLululemon. someone, online chats where
rabbi living in Brooklyn, was Shwirtz,wholivesacrossthe Like other annoyed online no one answers, and unre-
CONTENTS Opinion...............A11-13
preparingforavirtualschool street from Mr. Yolkut’s local shoppers,the55-year-oldexec- turned calls and emails. Even
Books.....................C7-12 Sports.......................A14
Food.....................D11-12 Style&FashionD2-3 singingshowwhenhenoticed TraderJoe’sandhastakento utivefromBoyntonBeach,Fla., angry tweets, often a surefire
Gear&GadgetsD8-9 U.S.News........A2-3,6 the tweet: No line at Trader socialmediaduringthecoro- calledandemailedthecompany waytogetacompanyresponse,
HeardonStreet...B14 Weather...................A14 Joe’s. naviruslockdowninNewYork to no avail. “You just couldn’t sometimessitunaddressed.
Markets....................B13 WkndInvestor.......B5
“I saw it in one of those to provide real-time updates getthroughtoanybody,itwas With stores closed for
Obituaries.................A9 WorldNews.......A7-8
heaven-partingmoments,”Mr. ofthelinesoutsidethestore. torture,” Mr. Quinn said, until months,customerscouldn’ttry
Yolkut said. Immediately, he “I just told a few people CHECKINGIN he finally got through and re- onitemsorreturntheminper-
> jumped in his car and drove about it and it took off from Tobounceback, ceivedhisrefund. son.Returnsarepilingup,and
overtotheneareststoreloca- there,”Mr.Shwirtzsaid,who hotelswillneedto As the coronavirus pan- shippingcompaniesarestrug-
tionintheCobbleHillneigh- has garnered about 2,500 reinventthemselves demicacceleratedtheshiftto glingtokeepupwithdemand,
borhood, returning home an Twitter followers looking for online shopping, customer- leadingtolongwaittimesfor
astheyreopen.
hourlaterwithbagsofgrocer- updates on the Trader Joe’s serviceoperationsforretailers deliveries,someretailerssaid.
s2020DowJones&Company,Inc.
AllRightsReserved ies including dried mangos, line.“Itreallystruckanerve.” B1 from Macy’s Inc. to Wayfair FedExCorp.andtheUnited
cheddarcheeseandsweet-po- PleaseturntopageA10 Inc.areoverwhelmedbyshop- PleaseturntopageA9
A2|Saturday/Sunday,June13-14,2020 THEWALLSTREETJOURNAL.
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U.S. NEWS
THE NUMBERS | ByJoCravenMcGinty
10,000 Steps a Day? Fewer May Be Fine.
Don’tbe 4,400stepsadayisbenefi- Knowingthatwalkingless WalkThisWay 10,000stepsadaywasbene- Inthefirstquarterofthis
discouragedif cial,accordingtoDr.Lee, isworthwhilecouldencour- ficial,thatstudyfound,but year,32.6millionwearable
youaren’t whohasanalyzedtherela- agepeoplewhofindthe Takingmorestepsperday sowaswalkingless. healthandfitnessdevices
clocking tionshipbetweenstepvol- highertarget—theequivalent isassociatedwithlower Itusedindividualswho valuedat$4.6billionwere
10,000stepsa umeandmortality. ofaround5miles—unattain- mortality walked4,000stepsadayasa shippedworld-wide,accord-
day. Herstudy,acollaboration able. referencepointandcom- ingtoRamonT.Llamas,re-
Men Women
Thatthreshold,often withresearchersatHarvard, “IfIhadtoputanumber paredthemwithpeoplewho searchdirectorformobile
30deathsper1,000adultsperyear
billedastheminimumfor theUniversityofTokyo,the onit,I’dsaytrytoget2,000 weremoreactive. devicesatIDC,amarketre-
goodhealth,originatedin UniversityofTennessee,the stepsmorethanyoualready Taking8,000stepswasas- searchfirmbasedinFra-
marketing,notmedicine, NationalInstituteonAging do,”Dr.Leesaid. 25 sociatedwitha51%de- mingham,Mass.
whenaJapanesecompany andtheNationalCancerIn- creasedmortalityriskover
launchedapedometerin stitute,examined16,741 Americanstypically 20 thestudyperiod,according Fitbit,aSanFrancisco
1965named,inEnglish,the womenwhorangedinage walkaround4,800 toPedroF.Saint-Maurice,a companythatspecial-
“10,000-stepmeter”withthe from62to101. stepsaday;Japanese 15 researchscientistattheNa- izesinactivitytrack-
slogan“Let’swalk10,000 Theyworehip-mountedac- take7,000to7,500;Austra- tionalCancerInstituteand ers,accountedfor2.2million
stepsaday.” celerometerstotracktheir liansandSwissnationals 10 oneofthestudy’sauthors. oftheunits.
“Thatreallyistheorigin,” movementsforatleast10 take9,000to10,000;andOld Taking12,000stepsaday “Ithinkthereisabeauty
saidI-MinLee,aprofessorof hoursadayoverfourtoseven OrderAmishcover14,000to 5 wasassociatedwitha65% inthe10,000-stepgoal,”said
medicineatHarvardMedical daysbetween2011and2015. 18,000. reductioninrisk. SheltenYuen,FitbitInc.’s
Schoolwhoresearchesthe Amongthegroup,walking Theresearcherssaidthe Ratherthanaimingfora vicepresidentofresearch.
0
roleofphysicalactivityin approximately4,400stepsa resultsoftheirobservational certainnumberofsteps,the “It’sveryeasytoremember,
2 4 6 8 10 12 14 16
promotinghealthandpre- daywasassociatedwitha study,whichwaspublished physicalactivityguidelines andformostpeopleit’sa
ventingdisease.“Itwasnota 41%reductioninmortality lastyearinJAMAInternal STEPSTAKENPERDAY,INTHOUSANDS publishedbytheDepartment targetthatisachievableand
scientificstudy.” comparedwithwalking2,700 Medicine,apeer-reviewed ofHealthandHumanServices getspeopletomovemore.”
Source:PedroF.Saint-Maurice,National
Sincethen,10,000steps stepsaday.Walkingaround journaloftheAmericanMed- CancerInstitute recommendgetting150min- Ifso,that’saplus.
hasbecomethedefaultgoal 7,500stepswasassociated icalAssociation,mightnot utesto300minutesofmoder- “Icannotemphasizemore
forfitnesstrackers,smart- witha65%reduction. applytopeoplewhoare 5,499stepsaday. ateexercise,suchasbrisk stronglyhowimportantphys-
phoneappsandevensome “Ifyoudoget10,000, more,orless,activethanthe Butaseparatestudypub- walking,eachweekor75min- icalactivityisforhealth,”Dr.
corporatewellnessprograms you’redefinitelygoingtoget womentheyanalyzed—a lishedlastmonthbyJAMA utesto150minutesofvigor- Leesaid.“Evenverymodest
whosefinancialrewardsare healthbenefits,”Dr.Leesaid. groupthatwasprimarily basedonarepresentative ousexercise,suchasjogging. amountsbenefityourhealth.
basedonthenumberofsteps “It’snotwrong,butitmight white,ofahighersocioeco- sampleofU.S.adultsage40 Butthesuccessofactivity It’snotlikeyouhavetogo
employeeslogeachday. beahardergoalforsome nomicstatusthanaverage andolderfoundsomething trackerssuggestsmanypeo- outandrunamarathon.”
Butwalkingasfewas people.” andwalkedanaverageof similar:Walkingmorethan pleprefertocountsteps. Orwalk10,000stepsaday.
U.S.WATCH
Low-Wage Workers Said Hardest-Hit by Virus
CLEMSONUNIVERSITY
BYNICKTIMIRAOS sharplyforthosegroups. Thereportsaidifeconomic a software and business-ser- seeingtheirformeremployers
‘Calhoun’ Stripped
“Thepathaheadisextraor- activityremainedweakdueto vicesprovider,revealspending shut down and hence experi-
TheFederalReservesaidse- dinarilyuncertain,”thereport virus-related disruptions, in- atsmallrestaurantshadfallen encing the scarring effects of From Honors College
veredisruptionsintheU.S.la- said.“Thepaceofrecoverywill cluding because consumers 80%fromayearearlierinearly permanentseparations,”there-
bormarketrelatedtothecoro- ultimatelydependontheevolu- aren’tconfidenttoresumepre- Aprilandwasstilldown50%in portsaid. ClemsonUniversitytrustees
naviruspandemicwerehitting tionoftheCovid-19outbreakin vious spending patterns even earlyJune. The Fed report said other unanimouslyagreedFridayto
workers with lower earnings, the United States and abroad asstatesandcountiesliftstay- “Takentogether,thesedata data suggest employers, after stripthename“Calhoun”from
includingminorities,especially and the measures undertaken at-home orders, more busi- suggest considerable risk of adding 2.5 million workers in itshonorscollege,astheSouth
hard. tocontainit,”theFedsaid,re- nessescouldfailorresumeop- failure for a large number of May,hadcontinuedtoincrease Carolinaschoolcontinuestoad-
Employment had fallen ferringtothediseasecausedby erationsatadiminishedscale, small businesses,” the report employmentsinceaLaborDe- dressitstiestoslaveryandthe
nearly 35% from February to thevirus. leadingmoretemporarylayoffs said. partment midmonth survey. Confederacy.
mid-Mayforworkerswhowere FedChairmanJeromePowell tobecomepermanent. Though overall unemploy- “Payrollemploymentwilllikely Thetrusteesalsoapproveda
previouslyearningwagesinthe saidWednesday,aftertheFed’s The report cited data from mentdeclinedinMay,thenum- move up again in June, albeit resolutiontoaskthestate’s
bottomfourthofwageearners, policymeeting,thatthecentral Homebase,aproviderofsoft- ber of unemployed workers fromwhatremainsaverylow GeneralAssemblyforpermission
thecentralbanksaidFridayin bankwaspreparingadditional ware that helps small busi- whohadbeenpermanentlylaid level,”thereportsaid. torestoreTillmanHalltoits
its semiannual report to Con- ways to support the economy nesseshire,scheduleandman- off rose by roughly 300,000 Thereportsaidmanywork- originalname,theMainBuilding.
gress.Higher-wageearners,by afterslashinginterestratesto age hourly workers, which fromApril. ershadleftthelaborforceal- BenjaminTillman,aformer
contrast,hadseenemployment zeroandpurchasingtrillionsof showedbetween30%and40% “Aslower-paidworkersare together because of difficulty SouthCarolinagovernorandU.S.
fallby5%to15%. dollarsofgovernmentdebtto ofbusinessestablishmentshave disproportionatelyemployedby holding jobs or finding work senatorwhodiedin1918,wasa
Becauselower-wageearners improvefinancialmarketfunc- goneinactivebetweenFeb.15 small businesses—which typi- duringmandatedbusinessclo- knownwhitesupremacist.
aredisproportionatelyAfrican- tioning.Officialsthisweekpro- and May 30 in sectors deeply cally have fewer financial re- sures,whichmeansofficialun- JohnC.Calhoun,whorepre-
AmericanandHispanic,unem- jected they would hold rates affected by social distancing. sourcesthanlargerfirms—they employmentmaynotfullycap- sentedSouthCarolinainCon-
ployment has risen more nearzerothrough2022. SeparatefiguresfromWomply, may be at heightened risk of turelabor-marketdisruptions. gressandservedasU.S.vice
presidentfrom1825-1832,was
Economic anardentsupporterofslavery.
thisyear,withU.S.GDPfalling —MelissaKorn
by 7.3%. If a fresh round of
Climb Will lockdowns can be avoided, it NEWYORK
expectstheglobaleconomyto
Cuomo Signs Police-
growby5.2%in2021,leaving
Be Steep it smaller than it was before Reform Legislation
thepandemicstruck.Afullre-
covery would take place only NewYorkGov.Andrew
in2022,orlater. CuomosignedintolawonFriday
The economic pain associ- asweepingpackageofpoliceac-
ContinuedfromPageOne ated with draconian lock- countabilitymeasuresthatre-
economytoshrinkbetween4% downsleftfewcornersofthe ceivednewbackingfollowing
and 10% this year. Next year, globaleconomyunharmed. protestsofGeorgeFloyd’skilling,
the economy could see any- OnApril13,Russianflorists includingoneallowingthere-
thingfrom7%growthtoafur- gathered in St. Petersburg to leaseofofficers’long-withheld
thercontractionofaround1%. destroysome5milliontulips, disciplinaryrecords.
A Fed report released Fri- chrysanthemumsandliliesto Thelawswillbanpolice
day said that if virus-related drawattentiontotheirplight. chokeholds,makeiteasierto
disruptions,suchasweakcon- RESS InKenya,workersattheMari- suepeoplewhocallpoliceon
P
sumer confidence, continued D dadiflowerfarmwerethrow- otherswithoutgoodreason,and
toweighoneconomicactivity ATE ingawayaquarterofamillion setupaspecialprosecutor’sof-
even after lockdowns end, OCI roses a day in early April as ficetoinvestigatethedeathsof
SS
more businesses could fail or H/A Europe’s shutdown throttled peopleduringandfollowingen-
scalebacktheiractivities.That HU demand. counterswithpoliceofficers.
could mean more temporary Y. “That was the worst time NewYorkPoliceDepartment
M
layoffsbecomepermanent. NA and it hit us hard,” said Jack spokespersonSgt.JessicaMcRo-
The evidence of the depth Thedepthofthecontractionpresagesahardclimbback.AstoreinDeerfield,Ill.,onThursday. Kneppers,Maridadi’sowner. riesaidofficials“willreviewthe
of economic pain in April is Uganda,oneofAfrica’stop finalversionofthelegislationand
stark. India recorded no new mist at BNP Paribas in Paris. previouslyownedhomes—the itwasin2002.Eighteenyears sugar exporters, which pro- utilizeitinamannerthatensures
autosalesinApril,according “Eventhiswordisnotenough bulkofthemarket—fellnearly ofgrowthwaswipedoutina duced500,000tonslastyear, greatertransparencyandfair-
totheFederationofAutomo- to qualify the scale. We are 18%inAprilfromamonthear- singlemonth. didn’t ship a single kilogram ness.”PatrickLynch,presidentof
bile Dealers Associations. In backtothe1980sintermsof lier,accordingtotheNational Friday’sfigures,alongwith ofsugarinApril,accordingto thePoliceBenevolentAssociation,
the U.K., only 197 autos were household consumption of Association of Realtors. Res- previousnumbers,suggestthe data from the country’s cen- said:“Wewillbepermanently
made, compared with about goods.” taurant reservations made U.K. economy is on track for tralbank. frozen,strippedofallresources
70,000inApril2019. Americans radically cut through the website Open- itsworstpeacetimeyearsince InSouthAfrica,miningpro- andunabletodothejob.”
ExportsfromGermany,one spending in April, which Table fell nearly 100% theGreatFrostof1709,when duction in the key platinum —AssociatedPress
of the world’s manufacturing forced whole service indus- throughoutmostofAprilcom- Europefrozeforthreemonths, andgoldproducerplungedby
powerhouses, fell by a third. tries to come to a standstill. paredwithayearearlier. devastating food crops and nearlyhalf. MICHAELFLYNN
InBosniaandCroatia,nosteel TheU.S.savingsratesoaredto The U.K.’s Office for Na- causingmassstarvation. TheOECDcalculatesthata
Judges Question
was produced. Clothing sales 33%—up from 8.2% just two tionalStatisticsestimatedon The collapse in output in second wave of lockdowns
inFrance,thehomeoffashion, months earlier—with Ameri- FridaythattheAprillockdown April around the world was laterthisyear—ifthecorona- Push to End Case
weredown67.4%. cans saving $6.15 trillion of cost the economy £30 billion unprecedentedinmanyways, virus were to come roaring
“Theshockwashuge,”said their income, Commerce De- in lost output ($37.8 billion), not least because it was cho- back—could cause the global Afederalappealscourton
Helene Baudchon, an econo- partment data show. Sales of andtookoutputbacktowhere senasawayofsavinglives. economy to contract even Fridayquestionedapushby
“This is the first recession moresharply,by7.6%.Theex- lawyersforMichaelFlynntocut
CORRECTIONS (cid:2) we knew was coming,” said pectedrecoveryin2021would shortajudicialinquiryintothe
THEWALLSTREETJOURNAL Chris Williamson, chief busi- also be weaker, with global Trumpadministration’sdecision
(USPS664-880)(EasternEditionISSN0099-9660) AMPLIFICATIONS nesseconomistatIHSMarkit. outputexpandingbyjust2.8%, todropthecriminalcaseagainst
(CentralEditionISSN1092-0935)(WesternEditionISSN0193-2241) “It’sthefirstdeliberatereces- leaving the economy much theretiredgeneralandformer
Editorialandpublicationheadquarters: sion.” furtherawayfromafullrecov- nationalsecurityadviser.
1211AvenueoftheAmericas,NewYork,N.Y.10036 Theenormityofthelossof erybyyear’send. Twoofthethreejudgesona
PublisheddailyexceptSundaysandgenerallegalholidays. ThenoseoftheReddyKilo- output in April means many Butitisunlikelytheglobal paneloftheD.C.CircuitCourtof
PeriodicalspostagepaidatNewYork,N.Y.,andothermailingoffices. watt cartoon character is a countrieswillinitiallyenjoya economywouldsufferanother Appealsvoicedconcernsabout
Postmaster:SendaddresschangestoTheWallStreetJournal, lightbulb. A June 6 Off Duty quick bounce, with double- April.Governmentsarelearn- whetheritwasproperforthem
200BurnettRd.,Chicopee,MA01020. articleaboutstampcollecting digit growth in many indica- inghowtomanagethevirus, totellthetrialcourtjudgehan-
AllAdvertisingpublishedinTheWallStreetJournalissubjecttotheapplicablerate incorrectlysaidthecharacter’s tors—creatingtheillusionofa andfuturerestrictionsareun- dlingthecasetoendhisexami-
card,copiesofwhichareavailablefromtheAdvertisingServicesDepartment,DowJones headisalightbulb. swiftreturntonormal. likelytobeasbroad-basedas nationoftheissuesaroundthe
&Co.Inc.,1211AvenueoftheAmericas,NewYork,N.Y.10036.TheJournalreservesthe However, the depth of the theinitialresponse. JusticeDepartment’smotionto
rightnottoacceptanadvertiser’sorder.Onlypublicationofanadvertisementshall contraction presages a steep “Even if we see some con- dismissthesinglechargeagainst
constitutefinalacceptanceoftheadvertiser’sorder. Notice to readers climbback,particularlyamid tainmentmeasurescomeback, Mr.Flynn.In2017,hepleaded
LetterstotheEditor:Fax:[phone];email:[email protected] Wall Street Journal staff uncertainty over when or they won’t be on the same guiltytoasinglecountoflying
Needassistancewithyoursubscription? members are working re- whetheravaccinewillarrive. scale,” said Laurence Boone, totheFederalBureauofInvesti-
Byweb:customercenter.wsj.com;Byemail:[email protected] motely during the pandemic. EconomistsatBankofAmer- the OECD’s chief economist. gationabouthiscontactswith
Byphone:1-800-JOURNAL(1-800-568-7625)
For the foreseeable future, icaexpecttheU.K.economyto “Weknowmoreaboutthevi- Russia’sambassadortotheU.S.
Reprints&licensing: pleasesendreadercomments grow 9% between April and rus, and they would be more Mr.Flynn’slawyersobjected
Byemail:[email protected] onlybyemailorphone,using June. But that would still targeted. The period of con- toJudgeEmmetSullivantap-
Byphone:1-800-843-0008
the contacts below, not via leave it 18% smaller than be- finementwouldbelighter.” pinganoutsidelawyertoargue
WSJbackissuesandframedpages:wsjshop.com U.S.Mail. forethecrisis. —Eun-YoungJeonginSeoul, againstthegovernment’smotion
Ournewspapersare100%sourcedfromsustainablycertifiedmills. The Organization for Eco- JoshuaMitchellin andaskedtheappealscourtto
ReaderscanalertTheWallStreet nomicCooperationandDevel- WashingtonandGabriele taketheunusualstepofforcing
GOTATIPFORUS?SUBMITITATWSJ.COM/TIPS [email protected] opment expects the global SteinhauserinJohannesburg thejudgetodismissthecase.
bycalling888-410-2667. economy to contract by 6% contributedtothisarticle. —ByronTau
THEWALLSTREETJOURNAL. Saturday/Sunday,June13-14,2020|A3
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U.S. NEWS
Trump
Ends an
ACA Bias
Protection
BYSTEPHANIEARMOUR
The Trump administration
onFridayreleasedarulethat
would roll back Obama-era
protectionsfortransgenderpa-
tients under the Affordable
CareAct,despitealast-minute
pushbyDemocratsandhealth
groupstoblockachangethey
saywillcurtailhealth-careac-
cessduringthepandemic.
The policy change could
leadtotransgenderindividuals
andothersintheLGBTQcom-
munity being denied health-
careservices,criticssay.
Therule,whichwilltakeef-
fectin60days,willonlybeen-
forced on Health and Human
Servicesprograms. RESS
Trumpadministrationoffi- AP
M
cialshavesaidthatthepolicy U
Z
is being changed to more VE/
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cwlohsicehlydhoeewsn’ttoetxhpelicAitClyAmteexnt-, ANCLE
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tiongenderidentityasapro- K
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tectedcategoryinhealthcare. MA
The provision has spurred a DestructionacrossmuchofMinneapolis,shownonMay27,andSt.PaulsetstheTwinCitiesapartfromothersitesofunrestfollowingGeorgeFloyd’skilling.
Twin Cities Ponder Who Set the Fires
host of lawsuits from states
and religious plaintiffs that
claimedtheexpandedprotec-
tionsareunlawful.
Some religious groups op-
posedtotheObama-eraprovi-
sionsaidhealthprovidersand Widespreadarson legedlyhelpedfuelafireata
insurers could be forced to InthedaysfollowingthedeathofGeorgeFloyd, Minneapolispolicestation.His
afterGeorgeFloyd’s
cover gender-reassignment authoritiesbelievearsonistssetfires lawyer said his client “got
procedures,whichtheyoppose. killingthreatensto throughoutMinneapolisandSt.Paul. caughtupinevents”aftertak-
Those objections were Firelocations ing part in peaceful protests.
complicaterecovery
raised in part by a 2016 law- Neighborhoods have been
suitfiledbyawomanagainst left without grocery stores,
heremployerafteritsinsurer BYANDREWTANGEL pharmacies and restaurants,
refusedtocoverherson’sgen- and in many cases workers
der-reassignmentsurgery.The MINNEAPOLIS—Eversince findthemselvesjoblessduring
childwasdiagnosedwithgen- protestersfloodedthestreets MINNEAPOLIS arecession.
derdysphoria. followingthekillingofGeorge Solomon Haile and Rekik
Criticsofthefinalrulesay Floyd in police custody, resi- Downtown Abaineh, the owners of Bolé,
tiehrefcohrandgoectworosuladnmdahkoesiptiteaalss-, dWehnotsbhuernreedhdavoewnwsoondmeraendy: Minneapolis UniversityAve. ST.PAUL aPnauEl,thloiosptitahnatrebsutasiunreasnstainndSta.
citing religious or other rea- businessesintheTwinCities, new fast-casual eatery they
sons, to discriminate against andwhy? were planning to open. They
LakeSt. Downtown
and reduce access to care for While a few arrests have St.Paul saidtheywereexploringstart-
transgenderpeopleortodeny beenmadesofar,thequestion ingafoodtruckwhileaiming
abortions.Theysaythechange continuestogolargelyunan- to maintain a foothold in the
wouldalsoallowhealth-insur- swered.“It’sperplexingascan scarredneighborhood.
Locationwhere
ancecompaniestodenycover- be,” said Cam McCambridge, “It’s our baby. It’s sad to
ageofcertainprocedures,such co-owner of a Minneapolis GeorgeFloyd see it burn down, but hope-
as hormone therapies or hys- building that housed Family waskilled fully we’ll come back bigger
terectomies, to people who DollarandO’ReillyAutoParts andbetter,”Ms.Abainehsaid.
identifyastransgender. storesbeforeitcollapsedinan MississippiR. 3miles Scott Dibble, a Minnesota
The rule would affect pro- overnightinfernoduringriot- 3km statesenatorwhoseneighbors
tections for the 1.4 million ingtwoweeksago. foundgascanistersstashedin
transgenderadultsand150,000 Thewidespreaddestruction Source:MinneapolisandSt.Paulfiredepartments hisapartmentbuilding’sdump-
transgenderteenagersages13 across much of Minneapolis sters, lamented that much of
to17intheU.S.,accordingto andSt.PaulsetstheTwinCit- rubble and interview wit- lington,acommercialreal-es- suretoarrestprotestersamid thedamageoccurredindiverse
the Williams Institute, a re- iesapartfromotherflare-ups nesses, William Henderson, tate developer with three claims of anarchists’ involve- neighborhoods.“Whosupports
searchgroupattheUniversity ofunrestfollowingMr.Floyd’s the ATF special agent in properties damaged or de- ment. the destruction of minority-
ofCaliforniaSchoolofLawin killing.Thearsonthreatensto charge in St. Paul, has cau- stroyed by fire, including an “There’snoevidenceofany and immigrant-owned busi-
Los Angeles that studies sex- complicatetheregion’srecov- tioned: “These investigations affordablehousingprojectand of that being present here,” nesses?”theDemocratsaid.
ual-orientation and gender- ery, as political leaders grap- aregoingtotaketime.” a shopping center. Mr. Wel- Mr.Kushnersaidatahearing Thechaosformanynights
identitypolicy. plewithcurbingpolicebrutal- Minnesota state officials lingtonsaidhewasoptimistic thisweek.Hedeclinedtocom- had residents on edge. They
Supporters of the change ityandracialdiscrimination. have pointed to unspecified thecommunitywouldrebuild mentonthearsonaccusation. kept watchful eyes outside
saytheObamaadministration ThefederalBureauofAlco- andunconnectedoutsiders,in- andaddressunderlyinginjus- Afederalprosecutordisputed theirhomesduringovernight
exceeded its authority by hol,Tobacco,FirearmsandEx- cluding white supremacists, ticesthatsparkedtheunrest. hisclaimofpoliticalinfluence. curfews,lookingforsuspicious
broadeningthenondiscrimina- plosiveshastakentheunusual anarchistsanddrugcartelsfor Theonlynon-Minnesotanto Inthecaseoftwolocalmen cars without license plates.
tionprovisions.In2016,afed- stepofdeployingtwonational turning peaceful demonstra- face arson charges so far is accused of setting fire to a Authoritieswarnedofbottles
eraljudgeinTexasagreedand response teams of agents to tions into violent riots that MatthewRupertofGalesburg, suburbangovernmentbuilding ofgasolineandotherincendi-
blocked the provision, saying investigateapproximately135 left scores of businesses Ill.Federalprosecutorsaccuse withMolotovcocktails,prose- ary devices hidden in bushes
the ACA didn’t extend civil- businessfiresintheTwinCit- looted,damagedordestroyed Mr. Rupert, 28 years old, of cutorscitedevidenceofanti- oralleyways.
rightsprotectionstotransgen- ies. The agency is working byflames. passingoutexplosivedevices policefervor.Inavideofrom Jim Stage, owner of the
derpeople. withlocalauthoritiesandthe Sofar,however,authorities to attack police and setting oneman’sseizedcellphone,he 102-year-oldLloyd’sPharmacy
The Trump administration Federal Bureau of Investiga- haven’t accused anyone fire to a Sprint store while voiced outrage at police be- inSt.Paul,saidheislesscon-
firstproposedthenewrulein tion. charged in local arson cases live-broadcastingonFacebook. havior, saying: “We need to cerned about who burned
May 2019. The change led by TheATFhasreleasedpho- withhavingextremistties,and Mr. Rupert’s lawyer, how- fightback.” down his business than in
HHS’s Office for Civil Rights tosandvideos,askingforthe mostofthehandfulofdefen- ever,saidhisclientwashand- Onecaseinvolvesa19-year- servingsome8,000patientsat
wasnecessary,administration public’s help in identifying dantsinarsoncaseshailfrom ingoutfirecrackersandexag- oldfromaMinneapolissuburb another pharmacy he owns—
officials said, because the suspects caught on security theTwinCitiesarea. geratingonsocialmedia.The whoallegedlyusedhandsani- andeventuallyrebuilding.
Obama-era interpretation cameraslightingfires,pouring “Sometimeswewanttolay lawyer, Jordan Kushner, sug- tizertolightafireinsideanu- “We have moved on,” Mr.
sowedconfusionandimposed accelerants and throwing an the blame on the outsiders, gestedhisclientfaceda“po- tritional-supplement store. Stagesaid.“Whathappenedis
unjustified costs and regula- apparentMolotovcocktail.As and maybe it’s us—I really litical prosecution,” given Another case involves a 23- done. Our call is to forgive
toryburden. agentsdigthroughburned-out don’t know,” said Steve Wel- whathecharacterizedaspres- year-oldSt.Paulmanwhoal- them.”
In Seattle, Protesters Negotiate
Over Leaving ‘Autonomous Zone’
BYJIMCARLTON nightactivistsdancedinfront A spokeswoman for Ms.
ofittorapmusic. Durkansaidofficerscontinue
SEATTLE—BlackLivesMat- “Ifthereisnopolice,there torespondtocallsinthearea
terprotestersnegotiatedwith is no problem,” Fekadu Shi- andthatsomepersonnelwere
localofficialshereFridayover beshi,animmigrantfromEthi- staffing the precinct Friday.
their terms for leaving a six- opia, said as he surveyed the Nopolicepresencewasvisible.
blockareathattheyhavecon- festivescene. Nationally, the occupation
trolled for most of the week Organizerssaythousandsof has provoked a furor in con-
withoutapolicepresence. peoplearelivingintheAutono- servative media. Republican
Theoccupationofwhathas mousZone,thoughmanyspend President Trump tweeted on
become known as the Capitol onlysometimetherebeforere- Thursday:“RadicalLeftGover- RESS
Hill Autonomous Zone, also turningtotheirhomes. nor@JayInsleeandtheMayor P
A
known as CHAZ, began when Local Black Lives Matter of Seattle are being taunted UM
Z
MayorJennyDurkanonMon- leadershavevowedtovacate andplayedatalevelthatour Y/
dayorderedpolicetoabandon once the city meets a list of greatCountryhasneverseen UCE
D
theEastPrecinctstation,which demands,includingcuttingthe before. Take back your city N
RE
had been the site of almost Seattle Police Department’s NOW.Ifyoudon’tdoit,Iwill.” A
K
daily confrontations between funding by half and redirect- Mr. Inslee said that while BlackLivesMatterprotestershavecontrolledasix-blockareaofthecityformostoftheweek..
officersandpeopleprotesting ing that money to help the theoccupationisunpermitted,
the killing of a black man, blackcommunity. hehopedforapeacefulresolu- pulloutoftheCapitolHillpre- a new way of living could be antifascism.”
GeorgeFloyd,byawhiteMin- “It’s a temporary occupa- tion. “What we will not allow cinct:“I’mangryabouthowall hopefullyindefinitely.” Nearby was a “Dream
neapolispolicemanonMay25. tionuntilwegetourdemands arethreatsofmilitaryviolence thiscameabout,”shesaid. Alongseveralblocksbarri- Board” to post messages on
Afterward, activists met,”saidJessicaKilpatrick,a againstWashingtonianscoming Some occupiers say they cadedoffbyprotesters,artists antiracism. It was filled with
swarmed the area, spray- BLMspokeswoman. from the White House,” the hopetoremainaslongaspos- painted sprawling murals on orange, pink and blue Post-it
painting graffiti and political Ms.Durkanhaspledgedto Democrat wrote on Twitter. sible. “It’s a reimagination of theroadwayasdanceparties notes, with messages like:
slogans on streets and build- investatleast$100milliondi- “The U.S. military serves to whatitlookslikeforaneigh- broke out on street corners. “Peoplearefinallylistening.”
ings,settinguptentsandtak- rectlyintominoritycommuni- protectAmericans,notthefra- borhoodtoreallylookafterit- People huddled along side- A young woman kneeled to
ing over an adjoining city tiesandtoestablishacommu- gilityofaninsecurepresident.” self,”saidtheRev.NealSharpe, walks that had been parti- addhermessage:“Fundteach-
park. The police station was nity-drivenBlackCommission. InastatementonYouTube, whosatatabooththatoffered tioned for uses such as a ers,notpolice.”
renamed “Seattle People De- Thecitycouncilisalsoexam- thepolicechief,CarmenBest, chaplainservicesonThursday “Conversation Café” where a —IanLovett
partment,” and on Thursday iningthepolicebudget. saiditwasnotherdecisionto night.“Thisisapictureofwhat signinvited:“Let’stalkabout contributedtothisarticle.
A4|Saturday/Sunday,June13-14,2020 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 ****
POLITICS
aroundDallas,Houston,Austin aspecialelectionlastmonth,spe- Thebankhaskeptclosetabs MitchMcConnellhasmovedfor- modestleadoverBiden,43%to
andSanAntonio.Theireffortsof- cificallynamingtwoinNewYork onlegislationthatwouldbanthe wardwiththebillevenas18Sen- 40%,asthecandidatebestable
ficiallyfocusonsevenHouse andoneinSouthCarolina.Asked saleofpoliceweaponryliketear ateRepublicansopposethemea- todealwithChina.
seats,butpracticallythattarget forcomment,aDemocraticCon- gasandrubberbulletstoHong sure,insteadhighlightingthe
listissmaller.Theyneedtode- gressionalCampaignCommittee Kongpolice,aChinesesanctions effortsofColorado’sCoryGardner TALKABOUTTHEDEFICITisn’t
fendseatsheldbyfreshman spokeswomanrespondedwitha billrelatedtoHongKong,andthe andMontana’sSteveDainesto justforRepublicans.Abipartisan
Reps.LizzieFletcherandColinAll- gifofaclownputtingonmakeup. 2020NationalDefenseAuthoriza- passthemeasure. groupofaround60Housemem-
red,whofacehighlytoutedGOP TheTexasDemocraticconven- tionAct,whichimposedconse- GardnerandDainesareeach bers,halfofthemDemocrats,are
recruits.AndDemocratssee tioncoincidedwithsomepolls quencesonBeijingforviolating facingcompetitiveraces,and circulatingaletteraskingthat
pickupopportunitiesinthreeopen showingacloseracebetween HongKong’sautonomy.Thebank, freshfederalfundsforoutdoor “furtherpandemic-responselegis-
WASHINGTON
races,alongtheMexicanborder PresidentTrumpandformerVice relatedly,disclosedthatitwas projectscouldprovepopularin lationincludeprovisionsforfuture
andintheHoustonandDallas PresidentJoeBiden,leadingtoan monitoringabillthatwouldboost ColoradoandMontana,giventhe budgetreforms”tobeaddressed
WIRE
suburbs.WendyDavis,aformer effectivesocial-mediacampaign U.S.diplomaticrelationswithTai- jobsthatlarge-scalemaintenance “whentheeconomyisstrong
Democraticgubernatorialcandi- askingsupporterstodonate$38, wan,whichwasstronglyopposed effortswouldcreate,aswellasa enough.”CongressionalDemocratic
daterunningintheAustinsub- symbolicofTexas’s38electoral byChina.“HSBCrespectsand tourismboost.McConnellsaidthe leadershavecriticizedMcConnell
Dispatchesfromthe
urbs,hasshownfundraising votes.Still,mostDemocratscon- supportsanylawsthatstabilize meritsofthebipartisanbill—not andotherRepublicansforprivileg-
Nation’sCapital strengthagainstGOPRep.Chip cedeflippingTexasatthepresi- thesocialorderinHongKongand theelection—motivatedhim. ingdeficitconcernsoverafunding
Roy.Othertargetsremain,butRe- dentiallevelremainshighlyun- revitalizeeconomicprosperityand “Yeah,it’sinproximitytotheelec- packageforhard-hitstateandlo-
publicanincumbentslikeJohn likelythisyear. developmentinHongKong,”the tion,butnobodysaidyououghta calgovernmentsthathasn’tcome
BYGABRIELT.RUBIN CarterandMichaelMcCaulhave banksaidlastweek.HSBCdidn’t quitdoingthingsjustbecause toavoteintheSenate.
builtsignificantwarchests. HSBCHOLDINGSPLChasquickly respondtorequeststocomment there’sanelection,”hesaid.
THETUSSLEOVERTEXAS Rep.TomEmmer,chairmanof replaceditsneutralityonHong onthelobbyingefforts. MINORMEMOS:SuperPACuses
HEATSUPasDemocrats’strategy theHouseRepublicans’campaign Kong-relatedissueswithsupport CHINA’SROLEinthecoronavirus autonomoussensorymeridianre-
inthestategetsafundraising arm,maintainsthattheGOPwill formeasureslimitingthecity’s OUTDOORRECREATIONFUND- pandemicbecomesararepointof sponsevideo—atypeofstimulus
boostandthepartyfeelsincreas- wintheHouse,aviewatodds autonomyfromChina,ashiftthat INGissettopasstheSenate agreementbetweentheparties, intendedtoprovokearelaxingre-
inglyconfidentofholdingonto withnearlyeveryindependent extendstoitsWashingtonlobby- nextweek,providingapotential WallStreetJournal/NBCNews sponse—tospreadamessage
theU.S.HouseinNovember.The forecast.“We’reprobablylooking ing.TheLondon-basedbank, politicalboontotwoRepublicans pollingfinds.Like85%ofRepubli- aboutvotersuppressioninSouth-
TexasDemocraticPartysaidithit atanumberof25[pickups]ata whichdoesthebulkofitsbusi- facingcompetitivere-election cans,some77%ofDemocratssay ernstates.…IvankaTrumpand
adigitalfundraisingrecord,tallying minimum,”hetoldtheJournal’s nessinChina,hasoverthepast racesintheWest.Thebillwould Chinadeserves“alot’’or“some’’ JaredKushner’sWashington
about$1.4millionthroughjustdig- NatalieAndrews,adding,“Thisisa yearincreasedits“monitoring”—a guarantee$900millionannually oftheblamefortheoutbreak. neighborsputupBiden2020yard
italdonationsbetweenJune1and snapshotthatwillchangeweekto legaltermwhosedisclosureim- fortheLandandWaterConserva- Thoseviews,however,maygive sign.…Sen.BernieSanderscriti-
June7,whenithelditsvirtual week.”Republicansneedanet pliesplanstolobbyonrelatedis- tionFund,whichpaysforconser- onlyasmallboosttoTrumpin cizesMcConnellforhiscoronavi-
convention. gainof17seats,andEmmersaid suesinthefuture—oflegislative vationandrecreationprojects,and theelection.WhiletheTrump rusresponse:“WhenEmperor
CongressionalDemocratssee thereare40seatsmorefavorable effortsaimedatcurbingChina’s alsodirectsoilandgasfeesto- campaignhasrunTVadsthat NeroplayedhisfiddleasRome
roomtogrowinTexas,especially toRepublicansthantheCalifornia dominanceanduseofforcein wardmaintenanceatnational portrayBidenasinsufficiently burned,atleastheprovidedsome
inthedenselypopulatedTriangle districtthatRepublicansflippedin thecity. parks.SenateMajorityLeader toughonChina,Trumpholdsa entertainmenttohiscourt.”
President’s Pitch Trump and
Biden Head
On the Economy
Back Out
Gets Complicated
Onto Trail
Trumpretainspollingstrengthonthe
issuebuthadmoreadvantagesin2016 BYALEXLEARY
AsPresidentTrump
BYMICHAELC.BENDER director,saidthepresident’s boundsbackontothecam-
ANDAARONZITNER economicargumentremains paigntrail,attendingfund-
hisoverridingpitch,buthe raisersandlininguprallies,
WASHINGTON—President saidvoterswillfavorthein- rivalJoeBidenistakingcau-
Trumphaslongviewedhis cumbentonotherissuesas (cid:2) tioussteps
stewardshipoftheworld’s thecontestunfoldsandashe awayfromhis
largesteconomyashisad- makeshiscase. THIS Delaware
ministration’sdefininglegacy. “Thefactthatthispan- WEEK home.
Withlessthanfivemonths demicinterruptedtheecon- Largeor
lefttocampaign,newpolling omyactuallymakesthepresi- small,theac-
showshehasfewotherad- dent’seconomicargument tionssignala
SS
vantagesinhisbidforre- stronger,”Mr.Murtaughsaid. RE newphase:Candidatequar-
P
election. Mr.Biden’scampaign, A antinesareover.Withthe
M
AWallStreetJournal/NBC meanwhile,issayingMr. U differentapproachescome
Z
Newspollthispastweek Trumpfailedtotakeaggres- PresidentTrumparrivingintheRoseGardenoftheWhiteHouseearlierthismonth. opportunities—andrisks.
showedvotersheavilyprefer sivepublic-healthstepsthat Mr.Trumpisdetermined
Mr.Trumptohandlethe wouldhavestemmedboththe andweplantoexploitthem: APartisanLensontheEconomy tosignaltovotersthecoun-
economydespitethereces- spreadofthevirusandthe Trumpmadetheeconomic tryisreboundingfromthe
Withineachparty,viewsoftheeconomyhaveshiftedinrecent
sion,whilefavoringformer economiccrisisthatresulted, crisisworse[and]Trumphas coronaviruspandemic,even
yearsaccordingtowhetherthatpartycontrolstheWhiteHouse.
VicePresidentJoeBiden,the accordingtoaninternalcam- noplan.” asthedeathtollmountsand
presumptiveDemocraticpres- paignmemoreviewedbyThe SomeTrumpcampaignad- Percentagesatisfiedwiththeeconomy,byparty casesriseinsomestates
identialnominee,onnearly WallStreetJournal.The visershavegrownconcerned thathaveliftedrestrictions.
everyothermatterthatthe memopointsoutnopartyhas abouttroublingpollsforthe Clinton G.W.Bush Obama Trump Thepresidentoftenap-
pollmeasured,including heldtheWhiteHousewithun- president,whileotherssay pearstobetryingtowill
100%
whomtheyplantovoteforin employmentover8%,andthat plentyoftimeremainsbefore thingshisway,andscenesof
November. thelastpresidenttofinishhis ElectionDay,accordingto crowdsgatheringoutside
Atthispointinthe2016 termwithanetjoblosswas peoplefamiliarwiththesitua- 80 restaurants—orshowingup
race,thesamepollshowed HerbertHoover,wholostre- tion.Thefirstfivemonthsof forlargeprotests—mayfeed
Republicans
Mr.Trumphadanadvantage electiontoFranklinD.Roose- 2020sawthethreatofwar hisgutinstinct.Hedesires
60
overthatyear’sDemocratic veltin1932. withIran,impeachment thetheaterandenergyof
nominee,HillaryClinton,in “Trumpisbroadcasting chargesonwhichthepresi- rallies,thefirstofwhichis
severalareas,includinghan- thathisstrategyistorunon dentwasacquitted,thecoro- 40 scheduledtotakeplaceFri-
Independents
dlingtheeconomy,dealing improvingtheeconomyafter naviruspandemicaswellasa dayinTulsa,Okla.,withoth-
withterrorism,changing acrisishebungledendedup recessionrelatedtoeconomic erstofollowinFlorida,
20
businessasusualinWashing- causinghistoricjobloss,”ac- lockdowns,andpeacefulpro- TexasandArizona.
Democrats
ton,effectivelygettingthings cordingtothememo,written testsandsomeunrestfollow- Asolidredstate,Okla-
doneandbeinghonestand byKateBedingfieldandAnita ingthekillingofGeorgeFloyd 0 homahasnosignificancein
straightforward. Dunn,twoseniorBidenadvis- whileinpolicecustodyin 2000 2010 thepresidentialfight,butMr.
TimMurtaugh,theTrump ers.“Therearetwomajor Minneapolis.Thedynamicsof Source:WSJ/NBCNewstelephonepolls,mostrecentlyof1,000adultsconductedAug.10-14,2019; Trumppointedtoitsrela-
campaign’scommunications flawsinthisdesperatescheme theelectioncouldshiftagain marginoferror+/-3.1pct.pts. tivelylowrateofvirusinfec-
beforeNovember. tions.Hiscampaignisalso
Separately,theeconomy’s competentlyandeffectivelyin toremindthenationofthe requiringanyonewhoattends
importancetovotersinthe thejob.Mr.Bidenhaddouble- economy’sstrength.Hehas tosignaliabilitywaiverand
generalelectionhaschanged. digitleadsonquestionsof soughtopportunitiestotout presumablywillforotherral-
Forthepastseveralpresiden- whowouldbesthandlethe theeconomysincetheslump, lies.Thesamemayapplyto
tialelections,theinfluenceof coronaviruspandemic,deal too.IntheRoseGardenlast attendeesoftheRepublican
economicissuesonhowvot- withhealth-careissuesand week,inthemidstofprotests NationalConvention,now
erscastpresidentialballots addresstheconcernsofmi- acrossthecountryforracial largelymovedtoFlorida.
haswanedaspartisanship norities.Mr.TrumpedgedMr. justiceandagainstpolicebru- TheriskforMr.Trumpis
hasincreased,analystssaid. Bidenonthequestionofwho tality,Mr.Trumpdepictedthe thatheappearstobemore
“Overthelast12years,it wouldbebetteratdealing freshlyreleasedjobsreportas concernedaboutre-election
SAVE
doesappearthatpeople’s withChina,43%to40%. a“tremendoustributeto thanhandlingthehealth
$170 pocketbooksandtheoverall While54%ofindependent equality.”Thejoblessratefell emergency.
stateoftheeconomymatter voterssaidtheytrustedMr. to13.3%from14.7%.Blackun- “PresidentTrumpisre-
lessfortheirpolitical Trumptohandletheecon- employmenttickedupto turningtothecampaigntrail,
TOP choices,”saidJohnSides,a omy,apluralityof45%to35% 16.8%from16.7%. tryingtoignorereality,”Mr.
VanderbiltUniversitypoliti- saidtheyplantovoteforMr. Theeconomicargumentin Bidensaidinastatement
cal-scienceprofessor. Biden,suggestingthatthe favorofMr.Trump’sre-elec- Thursdayasthenumberof
Whenaskedtorankthe president’sstrengthoneco- tionhasbecomemorenu- coronaviruscasesintheU.S.
12 mostimportantproblemsfac- nomicmattersdoesn’tauto- anced,campaignofficials surpassedtwomillion.
ingthecountry,Americansin maticallytranslateintovotes. said.Insteadoftalkingabout Theformervicepresident
arecentGallupsurveypriori- InJune2016,independent thestrengthoftheeconomy, isgettingoutaswell,slowly,
tizedpoorgovernmentleader- voterstrustedMr.Trump Mr.Trumpmustconvince maskon.Hehasheldtwo
ship,thespreadofthecorona- overMrs.Clintonwiththe votersthatheisbestsuited eventsinPhiladelphiaand
virusandthestateofrace economy,43%to19%,anda toleadacomeback,theysaid. wasinHoustononMonday
relationsaheadoftheecon- nearlyequalsharesaidthey TheCongressionalBudget tomeetwithmembersofthe
omy. wouldsupporthimforpresi- Officerecentlyloweredits familyofGeorgeFloyd,the
InthelatestWSJ/NBC dent.Independentsaccounted 2020-2030forecastforU.S. mankilledMay25whilein
Newssurvey,Mr.Bidenwas for13%ofvotersinthenew economicoutputby$7.9tril- Minneapolispolicecustody.
Wines You
favoredoverMr.Trumpby5 Journalsurvey,thesame lion,or3%ofgrossdomestic Thecampaignwantstoproj-
Need to Try percentagepointsonques- shareasthroughoutthelast product,andsaiditdoesn’t ectanimageofresponsible
tionsaboutwhowouldend presidentialelectionyear. expecttocatchuptoprevi- leadership,hopingtodrawa
politicalgridlockandby9 Beforetherecession,Mr. ouslyforecastlevelsuntilthe contrastwithMr.Trump.
pointsonwhowouldbehave Trumprarelymissedachance fourthquarterof2029. SomeDemocratsare
Plus
pleasedtoseeMr.Bidenstep
3BONUSBottles out,feelinghewasbeingun-
TrumpUrgesNew form.Norush.Ipreferanew tionalconventioncan’tconvene heardinthenationalconver-
andupdatedPlatform,short orisunabletoconductbusiness sation.Otherssaythelower
PartyPlatform
form,ifpossible.” intheconventionsiteorcity— profilehasbeenanassetfor
TheRNCexecutivecommit- meaningCharlotte—thenonlythe thegaffe-pronecandidate—
teevotedWednesdayonrules rollcallfornominatingacandi- andheisbeatingMr.Trump
PresidentTrumpsaidhe forthe2020convention,which dateforpresidentandvicepresi- innumerouspolls.
wouldliketosee“anewandup- willholdofficialbusinessin dentisallowed.Thatwillhappen “Peoplesayallthetime,
dated”RepublicanPartyplatform, Charlotte,N.C.,inAugustwitha withalimitednumberofin-per- ’Oh,wegottogetthevice
aftertheRepublicanNational limitednumberofdelegates,and sondelegatesinCharlotte. presidentoutofthebase-
Committeesaiditwouldcarry thebigconventionevents,in- Wednesday’svotemeans ment,’”formerVirginiaGov.
overthe2016planthisyear. cludingMr.Trump’sacceptance thepartyplatformcan’tbe TerryMcAuliffetoldfellow
Mr.TrumptweetedFriday speech,inJacksonville,Fla. modifiedandthe2016platform Democratsinarecentvideo
Go towsjwine.com/now morning:“TheRepublicanParty RNCrulesstatethatifthe willcarryoveruntil2024. chat.“He’sfineinthebase-
2WSJW1907 hasnotyetvotedonaPlat- committeedeterminesthena- —CatherineLucey ment.…LetTrumpkeepdo-
ingwhatTrump’sdoing.”
THEWALLSTREETJOURNAL. Saturday/Sunday,June13-14,2020|A5
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POLITICS
Trump to Address
West Point Amid
Rifts With Brass
BYCATHERINELUCEY strators. Mr. Esper, The Wall
ANDGORDONLUBOLD Street Journal reported, was
nearly fired over his opposi-
President Trump will ad- tionandatthesametimecon-
dressWestPointgraduatesSat- sideredresigning.
urday,embracingatraditional TheepisodethrustthePen-
roleforthecommanderinchief tagon into a crisis, having to
inamomentwhenhisrelation- decide between holding the
shipswithmanymilitarylead- line on the military’s core
ersareunderpressure. valuetostayapoliticalandre-
Mr.Trumphasclashedwith spondingtothecommanderin
topmilitaryofficialsabouthis chief,whowasdemandingthe WS
handlingofprotestsfollowing militarybemadeavailableto NE
G
thekillingofGeorgeFloydin restorelawandorder. R
BE
policecustody,aswellastheir Earlierthisweek,Mr.Trump M
O
openness to calls that bases rejectedthesuggestionthat10 BLO
honoringConfederateofficers ArmybaseshonoringConfeder- O/
G
be renamed. Those conflicts ateofficersberenamed.Under- RA
D
haveplayedoutasthenation scoring his conflicts with top AL
reels from a global pandemic leaders, his statements came Rep.KarenBass,aDemocratfromCaliforniaandchairoftheDemocraticBlackCaucus,atanewsconferenceonMonday.
and a national reckoning on afterthePentagonsaidMr.Es-
Lawmaker Gets New Spotlight
racerelations. per and Army Secretary Ryan
In an interview with Fox McCarthywereopentorenam-
News taped Thursday, the ingthebases.
presidentdefendedhisrecord Former Vice President Joe
withthearmedservices,say- Biden,thepresumptiveDemo-
ing:“Ihavegoodrelationships cratic presidential candidate, BYNATALIEANDREWS racism in the U.S. As chair- police reforms. The two first tivelylownationalprofile,the
with the military. I’ve rebuilt expressed his support on Fri- woman of the Congressional metintheStateAssembly,and 66-year-old’s political career
ourmilitary.” day for efforts by Sen. Eliza- WASHINGTON—Rep.Karen BlackCaucusandheadofthe now text and chat regularly. has been informed by earlier
On Thursday, Army Gen. bethWarren(D.,Mass.)toform Basshasbeenworkingtostop judiciary subcommittee on Mr. McCarthy has called her cases of police brutality. She
MarkMilley,thenation’shigh- abipartisancommissiontore- police abuse and harassment crime,terrorismandhomeland hisfavoriteDemocrat. tracesherfirsttimesprotest-
est-ranking military officer, namedefensefacilitiesnamed since 1973, the year George security,Ms.Basswasperfect Mr.McCarthyisn’tbacking ingpoliceviolenceandbrutal-
saidhewaswrongtohaveap- afterConfederateleaders. Floydwasborn. forthejob,aPelosiaidesaid. theDemocraticlegislation,but itytowhenshewasacommu-
peared with Mr. Trump at a Mr. Trump announced in Now, in the wake of wide- “Institutionalracismandall he also hasn’t criticized the nity activist in 1973 and was
photosessionneartheWhite April that he would speak to spreadprotestsoverthekilling of the disparities associated substance of the bill, and harassedbythepolice.
Housethatwasheldafterfed- West Point graduates, mean- ofMr.Floydinpolicecustody with that have been her is- raised the possibility of Ms.BassrepresentstheLos
erallaw-enforcementperson- ingcadetswhohadbeensent inMinneapolis,theCalifornia sues,”saidRep.JuliaBrownley changes to the bill in a com- Angeles neighborhood hit by
nel and National Guardsmen home due to the coronavirus Democrat is at the helm of a (D.,Calif.),whohasknownMs. mitteehearingnextweek. riotingandunrestinthewake
forcibly cleared the area of wouldhavetoreturntoWest sweepingefforttopasslegisla- Bassformorethanadecade. The 135-page bill Ms. Bass ofthe1992acquittalofpolice
peacefulprotesters. Point for the ceremony. The tion to ban chokeholds, no- Republicans, traditionally presentedonMondayincludes officers in the brutal beating
In a prerecorded speech, graduates, already commis- knock warrants and make reluctanttoregulatepolicing, legislation from black Demo- of Rodney King. At the time,
Gen. Milley said his presence sioned as second lieutenants otherpolicingchangesthatis arealsovoicingconcernsover cratic lawmakers that had she was leading the Commu-
createdaperceptionthatthe on May 23, started returning settogetavoteintheHouse Mr.Floyd’sdeathandarepull- gained little momentum on nityCoalition,anorganization
militaryis“involvedindomes- to the campus along New bytheendofthemonth. ingtogethertheirownpropos- Capitol Hill until the recent shefoundedinthelate1980s.
ticpolitics,”adding,“Ishould York’s Hudson River in late “IfIdidn’tdothisnow,ifI als, while signaling openness outrageoverMr.Floyd’sdeath. In 2004, she was elected to
nothavebeenthere.” May. didn’tpushashardasIpossi- to some parts of the Demo- “It’s almost as if people theCaliforniaStateAssembly.
Mr.Trumprejectedtheim- Tomanagehealthconcerns, bly could, I would live to re- cratic bill. President Trump searched for justifications so In 2008 she was elected
plicit criticism on Fox News, theeventhasbeendrastically gret it, because you never has pledged to work to ad- they didn’t have to do any- speaker and became the first
callingita“beautifulphoto,” overhauled.Theroughly1,100 knowwhenthesemomentsare dressracialdisparitiesbuthas thing,” Ms. Bass said about black woman to lead a state
in which he held a Bible in graduateswillbeseated6feet goingtocome,”Ms.Basssaid also vigorously defended law why the legislation lay dor- legislatureinthecountry.She
frontofachurch. apart and won’t shake the inaninterview. enforcement and aggressive mant,eveninanageofvideo- arrivedinCongressin2011.
Gen. Milley’s declaration president’shandwhentheyre- HouseSpeakerNancyPelosi policetactics. tapedassaultsinwhichpolice Tobuildacoalitionforher
came after both he and De- ceive their diplomas. Their (D.,Calif.)tappedMs.Bassto Thepolicelegislationcould conductcameunderfire. overhaul, Ms. Bass has spent
fense Secretary Mark Esper families will watch the pro- work on the legislation soon pass the House with Demo- TheGOP-controlledSenate the past two weeks calling
opposed a proposal by Mr. gram—movedfroma38,000- after the video of Mr. Floyd cratic votes alone, but Ms. is also crafting its own pro- into caucus meetings. She is
Trumptoinvokethe1807In- seat stadium to a parade gained national attention, BassistalkingtoRepublicans, posals, led by Sen. Tim Scott alsotalkingtoactivists,many
surrectionActtosendfederal field—vialivevideo. highlightingabusesagainstAf- including Minority Leader of South Carolina, the only of whom are pushing for
active-dutytroopsintoAmeri- —NancyA.Youssef rican-Americansandlaunching Kevin McCarthy (R., Calif.), blackRepublicansenator. changes beyond what Demo-
can cities to contain demon- contributedtothisarticle. a nationwide push to tackle whohasexpressedsupportfor While Ms. Bass has a rela- cratsareseeking.
Protesters
Keep Up
Pressure
ContinuedfromPageOne
keep up pressure on policy
makers,withafocusoncalling RESS
for overhauls of local police P
A
departmentsjustasmanylo- UM
Z
calities enter their budget- O/
planningseason. HOT
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“We’re not going to see it UR
N
quell until we see some hard KI/
S
systemic changes,” said R
A
P
ChanelleHelm,the40-year-old M
A
leadorganizerwithBlackLives NL
H
MatterLouisvilleinKentucky. O
J
Manyorganizersarepush- BlackLivesMatteranditsalliesplantocontinuedemonstrations,
ingcities’leaderstoreallocate likethisoneThursdayinNewYork,foratleastthenexttwoweeks.
somefundingforpolicing—of-
ten the largest chunk of a week they wouldn’t support first announcing their pres-
city’soperatingbudget—toso- fundinginnextyear’sbudget ence. In March, police used
cial services. They say doing foranyadditionalpoliceoffi- oneduringaraidthatresulted
so would ease some of the cers or militarized police inthekillingofBreonnaTay-
conflictspoliceareoftencalled equipment. But officials in lor, a 26-year-old black
on to address. Others are Houston,wherethefiscalyear woman. The Louisville Metro
pushing for specific changes, beginsJuly1,includedslightly CouncilThursdayunanimously
includingbanningchokeholds increased police funding in a bannedsuchwarrants.
orrequiringofficerstointer- $5.1 billion budget approved Themovementcouldculmi-
vene if they see another offi- Wednesday. nateinAugustwithaplanned
cerusingexcessiveforce. Organizers in Philadelphia march in Washington, D.C.,
BlackLivesMatterandaffil- have said prolonged civil un- featuringtheRev.AlSharpton,
iated organizers, including in resthelpsdeliverresults.City thecivil-rightsleader,andMr.
Philadelphia, New York City officials there put off a Floyd’s family. It will take
and Charlotte, N.C., are host- planned increase to police placeonthe57thanniversary
ing demonstrations for the fundingamidcallsfromactiv- of the March on Washington
next two weeks at least, in- istsinrecentweeks. ledbytheRev.MartinLuther
cluding onJuneteenth,which “Ourpositionisthatpublic KingJr.totheLincolnMemo-
iscommemoratedannuallyon pressureandpeoplestayingin rial, the site of his iconic “I
18th century rarity
June 19 to mark the end of thestreetsisactuallyhelping HaveaDream”speech. -
slaveryintheU.S. us,” said Krystal Strong, a “We’regoingbackthisAug.
In the weeks since Mr. memberofBlackLivesMatter 28 to restore and recommit irish wake table
Floyd’skillingbyMinneapolis Philly,whichishostingarally thisdream,”Mr.Sharptonsaid
police, what began as street plannedforSaturday. during his eulogy at Mr. Superior craftsmanship. Rare size. Remarkable history.
protests in that city have TheMajorCitiesChiefsAs- Floyd’s funeral. “Because just
Superiorinqualityandcraftsmanship,thisexceptionalIrish
grown into a national move- sociation, which represents likeatoneerawehadtofight
mahoganywaketablewasskillfullyconstructedwithfolding
mentfeaturinglargelypeace- policeexecutivesofthelargest slavery,anothererawehadto
sidepanelsforitsformerpurposeofsupportingacoffinfor
fulgatherings.Companiesare U.S. cities, said in a news re- fightJimCrow,anothererawe
showingsupportforthecause lease this week that a call to dealt with voting rights. This aCelticwake.Today,thesetablesarehighlyprizedand
at an accelerating clip, and reduce police funding is mis- istheeratodeal[with]polic- soughtafterasdiningtablesandarerarelyfoundoutside
congressional leaders say guided. ingandcriminaljustice.” ofIreland.Circa1770.673/4”wx471/2”dx293/4”h.#31-1359
some form of federal legisla- “Underfunding police can Thoughcrowdsinsomecit-
tionisneededtotackleexces- havedisastrousconsequences ieshavebecomesmaller,many
siveforcebypolice.Withpub- and hurt the communities protesters not involved in
lic polling indicating wide mostinneed,”thegroupsaid. planning demonstrations say
supportforsomeofthesepo- “Appropriatepolicefundingis theywanttokeepshowingup.
lice measures that activists more critical now than ever Trevell Burns, a 33-year-old
havelongsought,protestlead- before”toensuredepartments federalemployeewholivesin
ersaretryingtokeepupmo- can pay for technology like Baltimore, said he plans to
mentum. bodycamerasandtrainingin protest in front of the White
InTexas,wheremostcities areassuchasde-escalation. HouseuntilNovember. 622RoyalStreet,NewOrleans,LA • 888-767-9190 • [email protected] • msrau.com
operate on a fiscal year that InLouisville,demonstrators “Wehavetomakeiteasier
beginsOct.1,therewilllikely havehelddailyrallies,withno to have bad cops off the Since1912,M.S.Rauhasspecializedintheworld’sfinestart,antiquesandjewelry.
befightsoverpolicefunding, planstoletup.One,onThurs- street,”hesaid. Backedbyourunprecedented125%Guarantee,westandbehindeachandeverypiece.
asbudgetsarehammeredout day, was against no-knock —ElizabethFindell,Rebecca
over coming months. In Aus- warrants, which allow police BallhausandDustinVolz
tin,cityleadersindicatedthis to storm a residence without contributedtothisarticle.
A6|Saturday/Sunday,June13-14,2020 THEWALLSTREETJOURNAL.
****
U.S. NEWS
CDC Sets
Some Reopening Plans Put on Pause
Guidelines
BYTALALANSARI nouncement Thursday after deathsfromCovid-19,accord- Dailynumberofcon(cid:2)irmed 300 For Safety
“slightly elevated” confirmed ing to data from Johns Hop- coronaviruscases
As confirmed coronavirus coronavirusnumberswerere- kins.Thisweek,thereare2.02 New
casesintheU.S.surpassedtwo corded. million confirmed cases and Oregon Oklahoma Mexico In Public
million this week, driven in Some states that largely morethan113,000deaths.
partbysurgesinmorethana avoided the case levels and “TheU.S.hasfailedtoemu-
200
dozenstates,someplaceswere deaths that marked the pan- latethesuccessofotherhigh-
citingtheincreasesasreasons demic’s early days in some income countries that have
topauseonreopeningplans. places are now seeing record broughttransmissionwellun- BYBRIANNAABBOTT
OregonGov.KateBrownis hospitalizations. Experts fear der control through testing, ANDBETSYMCKAY
delayingthestate’sreopening thatloosenedrestrictions,the contact-tracing,andclearpub-
byaweekbecauseofa“signif- desiretorestarttheeconomy lichealthmessagingaboutthe 100 TheU.S.CentersforDisease
icantincrease”inCovid-19in- and summer’s approach led need for social distancing,” Control and Prevention urged
fections. “Think of it as a manyAmericanstobeginlet- saidJosephLewnard,assistant Americanstowearmasksand
statewide‘yellowlight,’”Ms. tingdowntheirguard. professor of epidemiology at distancethemselvesfromoth-
Brownsaid. Increasedtestingisonefac- theSchoolofPublicHealthat ersasstatesreopenandlarge
AsofThursday,Oregonhad tor behind the additional the University of California, gatheringstakeplace,including
0
5,237 cases, up from 4,474 a cases,butthegrowthiscaus- Berkeley. protests related to the killing
weekearlier. Whilethetotal ingalarmamongofficials,who InOklahoma’sTulsaCounty, M A M J M A M J M A M J ofGeorgeFloydandeventstied
number of cases has in- are worried about broader wherePresidentTrumpisset tothepresidentialelection.
creased, the percentage of spreadofthedisease. tohavearallynextweek,daily PercentageofdailyCovid-19teststhatarepositive The agency on Friday re-
positive tests in Oregon for The U.S. recorded its first confirmed cases hit a record leased two sets of guidelines
8%
Covid-19, the disease caused million cases over roughly high on three different days thatoutlinebestpracticesfor
by the coronavirus, has hov- threemonths,fromlateJanu- this week, according to data peopledecidingtogooutand
ered around 3% since the be- arytolateApril.Justoversix fromtheTulsaHealthDepart- 6 attendevents,includinglarge
ginning of June. During that weeks later, that figure has ment. gatherings.Theguidelinesrec-
time, the state has been per- growntomorethantwomil- The Centers for Disease ommendthatpeoplemaintain
4
forming an average of 2,800 lion,accordingtoaWallStreet ControlandPreventionissued a distance of at least 6 feet
testsaday. Journalanalysisofdatafrom its latest ensemble forecast, fromoneanother,avoidshak-
“This one-week pause will JohnsHopkinsUniversity. which now suggests there 2 ing hands or hugging, and
give public-health experts Nationwide,reportedcases likelywillbebetween124,000 keep hand sanitizer, a face
time to assess what factors haveincreasedbyanaverage and 140,000 total reported Oregon Oklahoma NewMexico coveringandtissueshandy.
0
are driving the spread of the of21,500adayoverthepast Covid-19 deaths by July The CDC also listed ques-
virus,”Ms.Brownsaid. twoweeks.OnJune5,theU.S. Fourth. The death toll in the May June May June May June tions that people should ask
Nashville’s Mayor John had 1.87 million confirmed U.S. crossed 100,000 two themselves when deciding to
Cooper made a similar an- cases and more than 108,000 weeksago. Sources:JohnsHopkinsUniversity;TheCovidTrackingProject(tests) go somewhere, such as
whethertheyarehigh-riskor
livewithsomeoneathighrisk,
Blood Reserves in the U.S. Are Critically Low and if the virus is spreading
withintheircommunity.
Thenewrecommendations
are meant to supplement,
BYAMYDOCKSERMARCUS ratherthanreplace,guidance
fromstateandlocalhealthof-
TheU.S.bloodsupplyisat ficials,theCDCsays.
critically low levels after “Iknowpeopleareeagerto
Covid-19shutdownshaveemp- returntonormalactivitiesand
tied community centers, uni- ways of life,” CDC Director
versities, places of worship Robert Redfield said. “How-
andothervenueswhereblood ever,it’simportantthatwere-
drivestypicallyoccur. member that the situation is
The American Red Cross, unprecedented and that the
which supplies about 40% of pandemichasnotended.”
the nation’s blood, said more In its latest guidance, the
than 30,000 planned blood CDCrecommendedthatevent
drives have been canceled plannersshouldlimitthenum-
sincemid-March. ber of people allowed in the
Even as some businesses, restroomatonetime,increase
schoolsandcommunitygroups outdoor air circulation when
makeplanstoreopenincom- possible and post signs re-
ingmonths,theyhavetoldthe mindingpeopletowashtheir
Red Cross they don’t antici- hands and wear face cover-
pate sponsoring blood drives ings.
inthenearfuture. S Themorepeoplethatinter-
“We are preparing for theAGE actandthelongerthatinter-
M
worst,thatwewillcontinuetoI action lasts, the higher the
Y
seealackofabilitytodospon-GETT risk,theagencysaid.
soredblooddrivesforatleastN/ Jay Butler, the CDC’s dep-
O
12months,”saidChrisHrouda,OLS utydirectorofinfectiousdis-
president of biomedical ser-OTT eases and Covid-19 response
vices at the American RedSC incident manager, said such
Cross. AnjaniqueBarberdonatedbloodlastmonthduringanAmericanRedCrossdriveattheFieldMuseumofNaturalHistoryinChicago. recommendationsapplytoany
Vitalant, another large large gathering, “whether a
blood-service provider, had Obloodisinthemostdemand existing blood-donation tool demand for blood has surged card via email to people who backyard barbecue or some-
6,800 blood-drive cancella- becauseitcanbegiventopeo- on its platform, for use in as they ramp up for elective come in to donate through thinglarger.”
tionsduetothepandemic,ac- pleinanybloodgroup. countries including Egypt, surgeriesthatwerepostponed June 30. Last month, the or- Dr. Butler said that more
cordingtoCliffordNumark,di- The Red Cross is fulfilling SenegalandKenya. becauseofthepandemic. ganizationofferedaRedCross stringentrestrictionsmightbe
rectorofmarketing. hospitals’ regular standing The tool became widely TheRedCrosssaiditpart- T-shirtbymailtodonors. necessary again in the future
Bloodcollectorsacrossthe bloodordersat75%ofplanned availableintheU.S.lastyear.It neredwithFacebooklastyear BrianGannon,chiefexecu- ifcasesincreasedramatically,
countrytypicallygetbetween volumes, and restocking or- notifiespeoplewhosignupas inJuneontheblood-donation tive of Gulf Coast Regional noting that those decisions
60% and 80% of their dona- ders are being supplied at donors when there are blood toolandhasuseditmorethan Blood Center in Houston, should be made more on the
tionsfromsuchblooddrives, 50%,toensureadequatesup- shortages at nearby centers. 150timestosendalertstopo- whichservesaround175hos- locallevel.
he said. The majority of the plies in case of emergencies, Facebook also said it is part- tentialdonorswhosignupfor pitalsandhealth-careinstitu- The CDC also included
nation’sbloodbanksnowhave accordingtoJessaMerrill,an neringwithAABB,anorganiza- notifications. tions,saidstartingSundayhis traveladvice,suchasminimiz-
a one-day supply or less of American Red Cross spokes- tionrepresentingtransfusion- Bloodbanks,hospitalsand centerwouldtestblooddona- ing use of common areas in
Type O blood, according to woman. medicineandcellular-therapy other collectors are looking tions for antibodies to the hotels, using options for on-
blood-bankofficials.Typically, Addressing world-wide companies and groups, to ex- forwaystomotivatepeopleto Covid-19 infection, a motiva- linereservationsandpayment
bloodbankstrytomaintaina shortages, Facebook Inc. said pand use of the tool among comedonate.TheRedCrossis tional offer that other blood and considering taking the
three-to-four-daysupply.Type Thursday it is expanding an hospitalbloodbanks.Hospitals’ offeringa$5Amazon.comgift centersalsohavebeenmaking. stairstoavoidtheelevator.
Firms Gave
thatCCTCwasnamedasU.S. said, the Chinese parent de- mentmighthaveseriouscon-
agent for a large number of cided to establish an official cerns about other aspects of
FDA False devicesregisteredthisyear. presence in the U.S., and in the company’s operations or
The CCTC registration de- MayregisteredCCTCServices thequalityofitsproducts.”
tails originated with China’s UnitedInc.,basedinColorado. Amongthehigh-profileus-
Address Shenzhen CCT Testing Tech- A company by that name ersofCCTC’sagencyservices
nologyCo.,theJournalfound. wasincorporatedinColorado wereeightChinesecompanies
Sound
The company said it was be- onMay13,staterecordsshow. on a list of around 90 firms
hind the listings that named About50companiesnowhave given special permission by
CCTCastheU.S.agentforso used CCTC Services United the FDA to import masks
ContinuedfromPageOne manyChinesefirms. Inc. as their U.S. agent, ac- meeting the Chinese KN95
Thinking ahelpfultoolforthepublicbut “Wedefinitelyaren’tafake cordingtoFDArecords. standardorotherinternational
doesn’t represent FDA ap- company,”saidTonyMo,ase- Afewissuesremain:Some standards.Becauseofashort-
proval,andtheagencydoesn’t niormanageratShenzhenCCT listings for CCTC Services age of protective equipment,
certifyregistrationinformation. Testing,referringtoCCTC. United with the FDA were theFDAinAprilallowedthose
Federal prosecutors last Shenzhen CCT Testing ad- madeinMarch,beforeitwas masks to be used in health-
weekfiledacriminalcomplaint vertises that it tests products incorporated; the Colorado caresettingseventhoughthey
Audiostorytellingonnewsyoucareabout, againstaChinesemanufacturer and helps Chinese companies Springsaddressisatamailbox hadn’tmetU.S.standards.
athomeoronthego. that listed CCTC as its agent, obtain FDA certification. The rentalstore,whichFDArules Regulators tested masks
charging that the listing was company charges 5,000 yuan frommanyofthosecompanies.
Browseourpodcasts:WSJ.COM/LISTEN partoffalseregistrationdocu- (about $700) to serve as FDA Althoughsomeperformedwell,
ments. The FDA investigator agent—usingitsU.S.contactin- ‘Wecan’ttake theFDAwassoalarmedbythe
saidinthecomplaint,filedina formation—andfileU.S.paper- quality of others that it with-
responsibilityfor
Brooklyn, N.Y., federal court, workforthemostbasictypeof drewapprovalformostofthe
that the agent didn’t respond maskregistration,ontopofthe others’badactions,’ companies.Alleightcompanies
toemailsandtherewas“prob- FDA’sannualregistrationcost thatusedCCTCasaU.S.agent
amanagersaid.
ablecausetobelieveCCTCisa ofroughly$5,000,Mr.Mosaid. were removed from the list.
fictitiouscorporation.” The company used a U.S. Onewaslaterrestored.
Prosecutorsallegedtheman- company-registrationagentto CCTC’slistedaddressinFDA
ufacturer, King Year Printing assist them in establishing a records is a Cape Cod-style
and Packaging Co. Ltd., ex- U.S. presence, he said. The don’tallow;thephonenumber rentalhomeinaquietWilming-
ported substandard masks to Shenzhen-based company got for the new agent listed in ton neighborhood. Its owners
the U.S. that were falsely theDelawareaddressfromthe FDArecordsdoesn’twork. are Richard and June Zappa.
brandedasN95respirators,po- U.S.agentabouttwoyearsago, Mr.MosaidShenzhenCCT Mr.Zappa,aretiredtriallaw-
2DJ7886 tpernotfieaslslyionpaultstiantgriUsk.S.. medical dhoidmne’tankndobwelieavneydbothdeyaadtdrtehses TtoesftinindgtihseinroowwanskUi.nSg.acglieennttss. ytheer,irsatidennaenitthserknthoewcoaunpyltehninogr
Allrightsreserved. malengedKanilthncagtosomYne’patalrarJiednosetupc.rolninnadeleddrteoptoocorttmheer- cTeomeusAaltdisilnsbgfoefrrcodhmwiadhnUnyg’.etSSd.hilreanentveszeprhs,otehinngedasCtaoCitrdTos. wisnaavi“dsoW.lsv“ueeWcdhheadiacnanbnoid’gtoidtiraneekgaseptorthehnasistspi,tbo”hinleishrtiyee- atechoibgeoonpurecetorgtarihtspeitonerhgraoetwudioistanehdsb.dineHrvieenesgssstauifigodsarehtdfoeorarisss-.
mpany,Inc. resNpeiraartloyr1m0o,0d0e0lsmwearseksreagnisd- athbeouctomKipnagnyYeianri,tiMallry. Mthoousgahidt biliFtiyndfoinrgotahUer.Ss.’abgaednatcitsioanbsa.”- ma“ilW,”esaigdetonleootsfthoef teonffaincitasl,
Co tered with the FDA in March the emails were a hoax, only sicrequirement,saidVernessa Elizabeth Hagin Derr. She
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wJones tfohrreoiuggnh-mMadaey,. Fmoorstaboofutth1e6m% lateMrrt.oMroeaaliczkentohweylewdgeerdent’ht.at Panodllanrodw,aafopramrtenreFrDaAtlaatwtorfniremy dthoeesFnD’tAr.eTchalelyifuasnuyalwlyasreftruormn
Do of them, companies listed CCTC Services Inc., the firm McDermottWill&Emery.“Ifa ittothepostoffice,shesaid.
2020 CCTCastheir agent,accord- listedinsomanyFDArecords, manufacturerisfalsifyingthat —ReddyZhao
©
ing to the Journal analysis. was never officially estab- thresholdinformation,it’seasy andQianweiZhang
ProPublica earlier reported lishedintheU.S.Thisyear,he tounderstandwhythegovern- contributedtothisarticle.
THEWALLSTREETJOURNAL. Saturday/Sunday,June13-14,2020|A7
****
WORLD NEWS
Covid-19 Reset Likely Slower Than SARS
Thecoronavirusis
detect, meaning reopenings HongKongbouncedbackfromtheSARSoutbreakrelatively contact with others, and ev- first. Then, after the WHO
morewidespreadand willbeslowerandmoretenta- fast.That'sunlikelythistime. eryonedonnedmasks. lifted its travel advisory on
tive. And because the entire The virus spread as far HongKonginJune2003,busi-
persistentthanthe
globe is infected, economies HongKong’sGDP Retailsales afieldasCanadaandVietnam. nessesthatdependedonvisi-
2003outbreak are less likely to fully revive Changefrompreviousquarter* Changefromayearearlier Public-healthofficialsfeareda tors also rebounded. Subway
untiltheirtrading,traveland 10% 20% full-fledgedpandemic,andthe trafficandvisitorarrivalsre-
businesspartnershaverecov- WorldHealthOrganizationad- coveredinaboutfourmonths;
BYPHREDDVORAK ered,aswell. vised against nonessential retailsalesandairlinetraffic
SARS
At the depth of 5 0 traveltoHongKongandparts inaroundsixorseven.
To see what economic re- theSARSdownturnduringthe ofChina.AirlinesbasedinAsia HongKongalsogotahuge
covery from Covid-19 could secondquarterof2003,Hong SARS lostabout$6billioninrevenue boost from mainland China,
looklike,somepeopleareex- Kong’s economic growth fell 0 –20 and 9% of traffic volume due which was booming then in a
amining the closest modern 2.4%fromthepreviousquar- toSARS—beforeCovid-19,the wayitisn’tnow.
equivalent: Hong Kong in ter,beforerebounding6.1%in Covid-19 mostseriousblowtheindustry That is not how this pan-
2003.Thatiswhentheterri- the third quarter. Al- –5 Covid-19 –40 has faced from an epidemic, demic is playing out. In Hong
tory’s economy was ravaged thoughSARSpummeledsome estimatestheInternationalAir Kong, as is the case every-
by severe acute respiratory industries,includingaviation, Transport Association. Hong where,governmentmeasuresto
syndrome—another epidemic theimpactlargelywaslimited –10 –60 Kong’s visitor arrivals fell al- control the coronavirus have
causedbyacoronavirus—and to Asia, and the epidemic 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12months 6m. Outbreak† 6m. most68%andhoteloccupancy been stricter, and the corre-
then staged a remarkable barelyregisteredintheglobal 2002/2019 2003/2020 before before later plummetedto18%. spondingeconomicblowmuch
comebackinlessthanayear. economy.Trade,whichdrives ButSARSultimatelyproved greater.HongKong’sretailsales
*Seasonallyadjusted †February2003forSARSandJanuary2020forCovid-19
Theoutbreakstartedearly HongKong’seconomy,actually Source:HongKongCensusandStatisticsDepartment to be much easier to contain fellmorethan40%inFebruary
in the year; by May, Hong grew more than 11% in 2003 thaninitiallyexpectedbecause andMarchfromayearearlier—
Kong’s economy was reopen- from2002. economicactivitytocontract orevenlonger,”hesays. itwasmostcontagiouswhileits aroundtriplethedeepestdrop
ing—liketoday.Sospeedywas This time around, Hong 6%thisyear—or7.6%ifasec- In many ways, SARS was victimswereclearlyill—unlike duringSARS.Visitorarrivalsin
the recovery that eight Kong’s economic output, as ondwaveofinfectionsforces eerilysimilartotoday’scrisis. Covid-19,whichcanbespread Aprilweredown99.9%.
monthsafterpatientsfirsthit measured by gross domestic countriesbackintolockdown. The modern world’s first by people who have no idea The entire world has
hospitals, Hong Kong was product, fell 8.9% in the first “Idon’tthinkwewillseea deadlycoronavirus,itemerged theyareinfected.SARSinfected thrown up barriers to travel,
hostinga$100millionconcert quarter from the previous V-shapedrecovery,”saysNich- insouthernChina,likelyfrom 8,000-pluspeopleinmorethan astheinfectionburnsthrough
series featuring the Rolling quarter and likely will stay olas Kwan, research director amarketsellingwildanimals two dozen countries before it oneregionafteranother.Most
Stones,PrinceandNeilYoung. negativeforatleasttwomore attheHongKongTradeDevel- toeat.Patientssufferedfrom burned out. Covid-19 has in- countries aren’t likely to lift
But a closer look quarters,forecastsSingapore- opment Council, who recalls fever,shortnessofbreathand fectedmorethansevenmillion thosesoon,meaningthateven
atSARSshowswhythistimea basedDBSBankLtd.Tradefor that in 2003, everything had pneumonia;around10%died. peopleglobally. if domestic demand starts to
sharprecoveryisunlikely—in thefirstquarterisdown10%. basically restarted by July. Mr. Kwan—then a re- By the summer of 2003, recover, the sizable parts of
HongKongoranywhereelse. Globally, economic output Thistime,HongKonghasthe searcheratHongKong’scen- with the help of some social the world’s economies that
Despitesomesimilaritiesto shrank 1.8% for the 35 major addedpressureofpoliticalun- tralbank—wasquarantinedat distancing and better protec- rely on travel and trade will
Covid-19, SARS proved much nationsoftheOrganizationfor restasChinatightensitscon- home for two weeks after a tions for health-care work- continue to suffer. Global air
easier to contain, and spread Economic Cooperation and troloverthepopulation. close friend was found to be ers,SARShadlargelyvanished. trafficprobablywon’trecover
lessbroadly.Thelatestdisease Developmentinthefirstquar- To get back to pre-Covid infected. Schools closed, res- Businesses catering to do- to2019levelsuntil2023,pre-
ismorepersistentandhardto ter. The OECD expects global levelswilltake“ayearortwo, taurantsshut,peopleshunned mesticdemandbouncedback dictsIATA.
Some People Already Are Primed to Fight Coronavirus
BYJASONDOUGLAS aid the body’s fight against infection.AsecondtypeofT- teersbetween2015and2018, resultofgettingacold. barelynoticetheyareinfected.
the new invader. Harnessing cellthatseeksoutanddestroys longbeforethecoronavirusre- Theemergingtheory:Expo- Dr.Setteandotherscientists
Researchers piecing to- the biological processes at cellshijackedbytheviruswas sponsible for Covid-19 ap- sure to other coronaviruses say, however, that these find-
getherhowthebody’simmune playcouldaidthesearchfora detectedinmostsubjects,they peared,andfoundasimilarim- earlierinlifehelpssomeindi- ingsarepreliminaryandfurther
system responds to the virus newvaccine,researcherssay. wroteinapeer-reviewedpaper munereactioninabouthalfof vidualsfightthenewinvader. workisneededtofullyunder-
that causes Covid-19 are ex- Ateamofscientistsatthe publishedinthescientificjour- those subjects when their Thetheoryhasmyriadim- stand how the virus interacts
ploring a tantalizing effect: LaJollaInstituteforImmunol- nalCelllastmonth. bloodwasexposedtothevirus. plications. It may suggest with its human hosts. It isn’t
Somepeoplewhohavenever ogy in California looked at Thefindingdispelssomeof Scientists in Singapore thereisadegreeofin-builthu- clear if such an immune reac-
encounteredthepathogenbe- bloodsamplesfrom20people the worries people had that found that some people who manresistancetothebugthat tionaffordsadegreeofprotec-
foreappeartobeabletomo- whocamedownwithCovid-19 thevirusthatcausesCovid-19 came down more than a de- lowersthethresholdforherd tionagainstinfectionortrans-
bilize parts of their immune andsubsequentlyrecovered. wasn’tcapableoftriggeringa cadeagowithSARS,causedby immunity,whentheviruscan missionofthevirus,orwhether
systemtowarditoff. The team found that when forcefulimmuneresponse,said acloselyrelatedcoronavirus, nolongerfindenoughsuscep- itaffectshowsevereaninfected
Thatresponsesuggeststhat theyreintroducedsynthesized Alessandro Sette, a professor could muster their T-cells to tiblehoststokeepspreading. person’ssymptomsare.Anout-
infectionwithothercoronavi- bits of the virus to the sub- ofinfectiousdiseaseandvac- fight the Covid-19 attacker. Italsomightoffercluesasto sidepossibilityisthatthereac-
ruses,suchasthoseresponsi- jects’ blood they mobilized cine research at La Jolla and Researchers in Germany also whysomeplaceshavebeenhit tionmightevenworsentheill-
ble for severe acute respira- white blood cells known as oneofthestudy’sleadauthors. havenotedthepresenceofT- harder by Covid-19 than oth- ness,bytrickingthebodyinto
tory syndrome, or SARS, and helperT-cellsthatcoordinatea The team also tested the cellsabletocombatthevirus ers, or why some people end thinking the new coronavirus
even the common cold, may broadimmuneresponsetothe blood drawn from 20 volun- in healthy donors, possibly a up on ventilators and others wasaharmlesscold.
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WORLD NEWS
China Ramps Up Social-Media Push
Hong Kong
Police
BYEVAXIAO Beijing’sadvantage. whichareblockedinChina.In whenitremovednearly1,000 nating searches for certain
Detain China’s Twitter efforts are recentmonths,Chinesediplo- accountsitsaidwereseeking hashtags by using what ap-
HONG KONG—A Chinese “nowhere near as sophisti- matsandofficialshavetaken to undermine pro-democracy pearedtobeathird-partycom-
government-linked effort to cated”asRussia’scampaignto toTwittertodefendBeijing’s protestsinHongKong.Twitter mercial bot network to boost
Protesters spread pro-Beijing messages influenceU.S.electionsin2016 handling of the coronavirus tipped off Facebook, which its posts, said ASPI. The bot
throughWesternsocialmedia andmoreakinto“bluntforce pandemicandattackWashing- scrubbedaccounts,pages,and networkallowedrecentlycre-
is clumsy but persistent, al- campaigns where they try to ton—inonecase,evenendors- groupslinkedtothesameop- atedaccountswithalmostno
lowingittoadaptandimprove kind of overwhelm the topic ingafringetheorythatthevi- eration.BothTwitterandFace- followerstoachieve“implausi-
BYJOHNLYONS overtime,accordingtoanew withalotofspam,”saidElise rusoriginatedintheU.S. book have since announced blyhigh”levelsofengagement.
ANDJOYUWANG analysis of mostly Chinese- Thomas,aresearcheratASPI. Theofficialshavebeensup- thattheywouldstoprunning Despitethemultiplewaves
language activity on Twitter However,theyare“astound- adsbystate-controlledmedia. ofcullingbyTwitter,campaign
HONGKONG—Policeinriot andFacebook. inglypersistent”inthefaceof Beijing’seffortstosowdis- operatorsappeartohavebeen
gear fanned out across Hong ResearchersattheAustra- multipletakedownsgoingback Beijingisclumsy, informationappeartopriori- abletospinupneworrepur-
KonginlargenumbersonFri- lian Strategic Policy Institute toSeptember2019,sheadded. tizespeedandscaleoverqual- posed accounts to fill the
butrelentlessin
dayinashowofforceaimedat cametothatconclusionafter “It’s something to watch be- ity, ASPI noted in its report, void—sometimes in a matter
quashingpossibleunrestonthe examining more than 20,000 causetheymightgetbetter.” spreadingitsviews whichalsoexamineddozensof ofdays,saidASPIresearchers.
anniversaryofademonstration usersthatformedthecoreofa In response to Twitter’s Facebookaccountsthatshared Even with Twitter’s most re-
onglobalplatforms.
thathelpedgalvanizelastyear’s networkofroughly174,000ac- shutdownofstate-backedac- identicalorhighlysimilarcon- centpurgeofsuspectaccounts,
mass protests against the en- countsthatTwitteronThurs- counts,China’sforeignminis- tent to those on Twitter and duringthefirstthreemonths
croachmentofmainlandChina. dayidentifiedascarryingout try on Friday said that those behavedsuspiciously—suchas of 2020, new social-media
Clustersofprotestersgath- a Chinese state-backed cam- who ought to be shut down by abruptly pivoting to post- postsexhibitingsimilarbehav-
eredaftersundownacrossthe paigntospreadpropaganda. areaccountsthatorganizeto ported by an army of anony- inginChinese. ioralreadyhaveemerged.
citytocommemoratetheday. Twitter said Thursday the smear China. “China is the mous accounts that helps to Mostofthepostsreleased As protests against police
Some sang a Hong Kong pro- accounts had been deleted. largestvictimoffalseinforma- spreadandamplifytheirmes- byTwitter,whichtargetedthe brutalityandracismflaredin
testeranthem,othersheldup ASPI’sanalysis,publishedFri- tion,”saidspokeswomanHua sages. Chinese state media Chinese diaspora, generated the U.S., social-media posts
anti-China signs. They were day,indicatesthatnewandre- Chunyingatanewsbriefing. also have sought to support littletraction,thereportsaid, that appeared tied to China’s
met with rows of riot police purposed accounts have al- China’s government has the campaign by buying ads with nearly 80% of accounts state-backed campaign criti-
whodetaineddemonstratorsby readyemergedonTwitterand ramped up efforts to spread onU.S.social-mediasites. havingzerofollowers.Alarge cized what they called the
thedozens.Thatfollowedsym- Facebook to disseminate the its views on some of the Twitter first identified the numbercontainederrors. U.S’s“doublestandard”ofhu-
bolicactsduringtheday,such same kind of messaging that world’s most popular social- Chinesestate-backeddisinfor- China’s Twitter campaign manrights—alineoftenused
asgroupsofsecondaryschool seekstospincurrenteventsto messagingplatforms,mostof mation campaign in August, hashadsomesuccessindomi- byChina’sforeignministry.
students linking together in
hand-holdingvigilsbeforebe-
ingdispersedbypolice.
“Tonight there is a risk of
arrest,” said Gary Li, a 28-
year-old activist and elected
memberofalocalrepresenta-
tive council in a Hong Kong
neighborhoodthatservedasa
gathering point for many of
last year’s mass rallies. “Last
yearwasthebeginningofthe
fightwhenHongKongpeople
acceptedtostartprotestingin
amoreradicalway.”
Themostlysubduedscenes
were a sea change from this
day last year, when tens of
thousands of mostly young
protestersconvergedonHong
Kong’s legislature to prevent
passageofanextraditionlaw
thatwouldhaveallowedChi-
neseauthoritiestobringHong
Kong residents to the main-
land for trial. For many in
Hong Kong, the law repre-
sented the end of the “one
country, two systems” agree-
ment that allowed the terri-
tory to largely govern itself
sincetheformerBritishcolony
wasreturnedtoChinain1997.
That protest devolved into
teargasandclasheswithpolice
soturbulentthattheday’sses-
sionwassuspended,energizing
theprotestmovement. TruckswaittocrossfromKenyatoUgandainthetownofBusia.Below,aworkertakesasamplefromatruckdrivertotestforCovid-19.Thoseinfectedwon’tbeabletoproceed.
Ayearon,muchofthemo- In East Africa, Virus Hinders Flow of Goods
mentumofthoseprotestshas
been damped in a crackdown
byHongKong’sChina-backed
authorities. Police have ad-
optedtacticssuchasmassar-
rests and a strategy of stop- BYNICHOLASBARIYO morethanamonth.
pingandsearchingyouthsnear AlongEastAfrica’sborders,
potentialprotestsites.Prose- KAMPALA, Uganda—Nor- medical workers in hazmat
cutors are charging those ar- mally, it takes Abdiyare Mu- suits take throat swabs from
restedwithseriouscrimesthat hamed, a 27-year-old truck truckdriversinmakeshiftclin-
couldbringyearsinprison. driver from Kenya, about a ics to test whether they have
China also has declared it week to make the 1,000-mile the virus that causes the dis-
would impose a new security trip from the Indian Ocean ease, creating traffic jams as
law on Hong Kong that will portofMombasatotheSouth longas50milesandbringing
targetcrimessuchassedition, Sudanese capital, Juba. Now, critical trade routes to a sud-
terrorism,subversionand“for- with African authorities con- denhalt.Localsonmotorbikes
eigninfluence.”Beijingsaidit cerned about a surge in racebetweenthetrappedvehi- (2)
woulddeployitsownsecurity Covid-19 cases among truck- cles to sell cigarettes, snacks AL
N
servicestoenforcethelaw. ers, the same journey takes andcannedsoda. R
U
“People look at us as dis- JO
ease carriers,” Mr. Muhamed REET
said Sunday in Busia, a busy ST
lakesidetownonKenya’sbor- ALL
W
derwithUganda.Afterspend- HE
ing10daysstuckontheside T
R
of a dusty tar road near the FO
N
frontier, he was preparing to O
S
N
wait a further three to five A
W
daysfortheresultsofhiscor- S
onavirus test. At night, he WILL
sleptunderhiswhite-and-or-
ange1996MANtruck. disruptions may cost sub-Sa- even prosperity,” Mr. Musev- munyu, chief strategy officer
IfMr.Muhamedisinfected, haranAfricabetween$37bil- enisaidlastmonth.“Muchof atNairobi-basedfreightlogis-
DIFFERENT NATIONAL ORIGINS.
he won’t be allowed into lion to $79 billion this year, the inbound and outbound ticscompanyKobo360.
Uganda and his freight com- has advised governments to cargoisours.” At the Busia border post,
panywillhavetosendanother set up field hospitals along TheUnitedNations’World truckers have to sign agree-
driver to haul his ship- keytransportcorridorsinEast Food Program said nearly ments prohibiting them from
ment—24 metric tons of AfricaandWestAfrica. 4,000metrictonsofsorghum interacting with locals along
SAME FAIR HOUSING RIGHTS. grain—to a United Nations Truckershaveemergedasa and fortified vegetable oil— therouteandrequiringthem
compoundinJuba. focalpointforepidemiologists destinedforrefugeecampsin tospendmostoftheirtimein-
Like essential workers ev- elsewhere. The U.S. Centers Uganda—aretrappedenroute sidetheirvehicles.Butdrivers
erywhere,truckdriversinEast for Disease Control and Pre- fromMombasa.Withsupplies say it is nearly impossible to
Africa,faceamuchhigherrisk vention warned last month dwindling,theagencyhascut complywiththenewrules.
ofcontractingthecoronavirus. thattruckdriversareatanin- dailyfoodrationsby30%for Hassan Kagimu, a 47-year-
The route they ply is one of creasedriskofexposuretothe 1.4millionrefugees. oldUgandandriver,recalleda
the continent’s busiest, coronavirusduetotheirclose Trade associations in troubling week in May, when
Itisillegalforlandlordsandrealestateagentstodeny stretching from the conflict- contactwithtruck-stopatten- Uganda have warned of im- histruckmovedjust2milesin
youhousingopportunitiesbecauseofyourethnicity.The tornSouthSudanandeastern dants,dockworkersandother pending shortages of fertiliz- three days. Frustrated, Mr.
FairHousingActprohibitshousingdiscriminationbased Congo to Indian Ocean ports truckdrivers.TheCDCadvises ers,fuelandtextiles. Kagimuabandonedhisvehicle,
onnationalorigin.Ifyoubelieveyouhaveexperienceda inKenyaandTanzania. drivers to limit time spent Yearsofneglectandinade- loadedwithpasta,andjoined
Ugandan border guards outsidethevehiclecabinsdur- quateinvestmenthaveleftthe locals in the nearby shops to
violationofyourrights,fileacomplaint.
have turned back more than ing fueling, loading and un- 100-year old railway network playagameofcards.
550truckerswhohavetested loading,andatrestandtruck that links Uganda and Kenya “Sitting in a stationary
positive for the virus since stops,tominimizerisks. dilapidatedandunabletocarry truckforthreedaysislikebe-
Gotohud.gov/fairhousing mid-May, representing more InEastAfrica,curbsonthe extracargo.Roadtrafficalong inginaprisoncell,”saidMr.
orcall1-800-669-9777 than two-thirds of the coun- movement of truckers could theroutehasmorethandou- Kagimu.“Itistoostraining.”
try’s confirmed cases. Health pummel some of the conti- bled during the past decade, His colleague, Moses
FederalRelayService1-800-877-8339
officialssaytruckersaccount nent’sfastest-growingecono- accordingtotheWorldBank. Maamba, a Ugandan coffee
for the bulk of the nearly mies.Raillinksacrossthere- Now,driverscomplainthat transporter, said he mixed
6,000 cases confirmed in gion are few and often in addition to risking their withhundredsofdrivers,who
Kenya, Uganda, Rwanda and outdated,meaningthatevery- health,theyfacehighercosts cook dinner at night below
SouthSudan. thingfrompetroltominerals, and threats from locals and theirtrucks,ashewaitedfor
TheWorldBankhasurged food or building materials is police. Many say they forgo histestresultsattheKenyan-
regionalgovernmentstodraw transportedbyroad. lunch breaks out of fear of Ugandanborder.
lessonsfromtheHIVepidemic Ugandan President Yoweri someone overtaking them in “Iwasluckymytestresults
that swept the continent in Musevenihascalleddemands trafficandlosingtheirplacein were negative,” the 43-year-
the1990s,whentruckerswere from citizens to close the the border queue. Expenses old said. “But many drivers I
FAIRHOUSING:THELAWISONYOURSIDE.
an important vector in the country’sbordertotrucktraf- for fuel and cargo security was with tested positive. I
spreadofthevirus.Thebank, fic suicidal. “We need that haveskyrocketed,threatening don’tplantoreturntoKenya
which estimates that trade cargo for our survival and theindustry,saidKagureWa- untilthiswholethingisover.”
THEWALLSTREETJOURNAL. Saturday/Sunday,June13-14,2020|A9
****
OBITUARIES
CHRISTEL DEHAAN NEMIR KIRDAR
1942 — 2020 1936 — 2020
‘Lucky Duck’ Funded Iraqi Banker Recycled
Schools for the Poor
Middle Eastern Riches
C
hristelDeHaan,animmi- Askedtodonatetoanorphanage
grantfromGermany,wasa operatedbyFranciscannunsin
secretarywhensheandher MexicoCity,shetraveledtherein
husband,Jon,devisedabusiness 1998toinspectthepremises. BYJAMESR.HAGERTY roomwasavailable.
planin1974. Theyweredismal,andshede- N Chasepromotedhimtooversee
Withaninvestmentofaround cidedthatsimplywritingacheck emirKirdargrewupexpect- bankinginpartoftheregion.By
$7,000,theycreatedResortCon- woulddonolong-termgood. ingtohelpgovernhisna- theearly1980s,hewassearching
dominiumsInternationalInc.,or Instead,shefoundedChristel tiveIraq.Hischildhood forArabtycoonstoformwhat
RCI,inIndianapolisasabroker- Housetooperateschools,provide playmatesincludedKingFaisalII. wouldbecomeInvestcorp.Many
ageserviceforownersofvaca- healthcareandgivecareeradvice Hisfather,whosefamilyhadbeen wereinterested,butonlyifthey
tionproperties.RCIallowspeople toyoungpeopleinneed.The alliedwiththerulingHashemite couldcontrolthecompany;hein-
toswaptimeslotssotheycantry nonprofitnowoperatesschoolsin clansinceOttomanEmpiredays, sistednosingleinvestorwould
differentresortsratherthanre- India,Jamaica,Mexico,SouthAf- wasamemberofparliament. holdsway.
turningtothesameoneeach ricaandtheU.S. Thatcareerplancrumbledwhen Onceafewinfluentialfamilies
year.Atfirstanovelty,theswap- Ina2010interviewwiththe thekingwasexecutedduringa signedup,othersstampededin.
pingoptionbecameastrongsell- IndianapolisStar,shesaidthe July1958coup.“Icouldseenofu- Mr.Kirdarsetuptemporaryhead-
ingpointfortimesharing. missionhadbroughtherjoy:“You tureformyselfinIraq,”Mr.Kirdar quartersinaHolidayInnsuitein
Aftertheirdivorce,Ms.De- getoutofbedeverymorning,and wrotelater.HemovedtotheU.S., Bahrain.Later,heboughtarun-
HaanwoncontrolofRCI,ex- yousay,‘Luckyduckme.’” earnedaneconomicsdegreeatthe downhotelandconverteditintoa
pandeditgloballyandsolditfor Ms.DeHaandiedJune6.She UniversityofthePacificinStock- headquarterswithwalnutpanel-
morethan$625millionin1996. was77andhadcancer. ton,Calif.,andfoundajobasa ing,marblefloorsandOriental
Thenshelookedforacause. —JamesR.Hagerty banktellerinArizona,whoseland- rugs.
scapevaguelyremindedhimof In1984,whenAvonProducts
home. Inc.wassellingtheTiffanyjewelry
Charismaandambitionpro- itsandlateratRobertCollegein business,heinterruptedafamily
RAJ MARPHATIA
pelledhimintoaninternational Istanbul. vacationinMarbella,Spain,toseal
1959 — 2020 careerwithChaseManhattan Aftercompletinghisdegreein thepurchasefor$135.5millionina
Bank.In1982,hefoundedhisown California,hemovedin1960tothe buyoutalsoinvolvingthemanage-
Bahrain-basedcompany,Invest- Phoenixarea,wherehehadcous- ment.Investcorphelpedexpand
Indian Immigrant corp.Itsmissionwastolink ins.Whileworkingasabankteller thebusinessinternationallyand
wealthyfamiliesintheMiddle atFirstNationalBankofArizona, tookprofitsthroughalistingof
Eastwithinvestmentopportuni- hesetaboutmakingconnections Tiffanyshares.
Made Mark in Law
tieselsewhere. throughLionsandRotaryclubs.At InvestcorpacquiredhalfofGuc-
Mr.KirdarheadedInvestcorp thebank,hewonacontestby cioGucciSpAin1988andsoonbe-
formorethan30yearsasit signingupthemostnewcustom- gansquabblingwiththeother
R boughtandsoldstakesincompa- ersandwaspromotedintoaman- mainowner,MaurizioGucci,over
ajMarphatia,whogrewup in1987camethreeyearsbefore niesincludingGucci,SaksFifthAv- agement-trainingprogram. howtomanagethemakeroflux-
inMumbai,movedtoJef- thatofBarackObama,whowas enueandTiffany&Co.,aswellas H uryloafersandhandbags.Aftera
ferson,Iowa,inthe thefirstblackpersonelectedto lessposhoperationssuchasreal ereturnedtoIraqin1962 seriesofcourtshowdownsand
mid-1970sunderaRotaryInter- headthescholarlyjournal. estate,CircleKconveniencestores andbeganstartingbusi- mutualthreats,Investcorpfinally
nationalexchangeprogramfor Mr.Marphatia,whoalso andamakerofvalvesandpumps. nesses,includingabakery boughthissharesin1993andlater
high-schoolstudents. earnedamaster’sdegreeinac- Thefounder,whoretiredfrom andaplastic-moldingfactory,and soldthecompanyatalargeprofit.
Headaptedwithoutapparent countingatNortheastern,made theboardin2017,diedJune8at thensellingthem.In1969,hewas Someinvestmentsflopped.In
effortfromcricketandavegetar- hiscareerasapartneratthelaw hishomeinCapd’Antibes,France. suddenlyarrestedandheldinajail 1993,InvestcorpboughtCamelot
iandiettobaseballandcheese- firmofRopes&Gray,wherehe Hewas83andhaddementia.Mo- formorethantwoweekswithout MusicInc.,thenthethird-largest
burgers.Whenhefirstsawa wasanexpertonprivate-invest- hammedAlardhi,aformerheadof anyexplanation,untilauthorities U.S.recorded-musicretailer.It
heavysnow,heinsistedonwalk- mentfundsandbasedinEast theOmaniAirForce,hasservedas sortedoutamisunderstandingin- filedforprotectionfromcreditors
inginitbarefootforafullersen- PaloAlto,Calif. executivechairmansince2015. volvingaU.S.companyherepre- underchapter11ofU.S.bank-
soryexperience.Hestayedonand Mr.Marphatia,whohadtwo Ina2013Memoir,“Need,Re- sented. ruptcylawin1996.
graduatedfromHarvardand daughtersandlosthiswifeto spect,Trust,”Mr.Kirdarsaidhe HefledtoBeirutandthenNew Evenso,Mr.Kirdar’sinitialidea
NortheasternUniversitybefore leukemiain2013,hadbeenunder followedhisfather’sformulafor York,wherehefoundworkin provedsound.“Myobjectivehas
earningadegreeatHarvardLaw treatmentforcancer.“I’menter- success:“Youmustbeneeded.You bankingandearnedanM.B.A.de- beentobuildanorganizationthat
School. ingtheendgame,”hetolda mustberespected.Youmustbe greeatFordhamUniversity. willlast,nottomakemoney,”he
Whilethere,hebecamethe friendthisspringasheprepared trusted.” Chaseaskedhimtodevelopa toldInstitutionalInvestorin1991.
firstnonwhitestudentelected forhomehospicecare.“Nomop- Thethirdoffivesons,Nemir strategicplanforthebankinthe Heendedupdoingboth.
presidentoftheHarvardLawRe- ing!”heinstructedhisfamily.He KirdarwasbornOct.28,1936,in MiddleEast.Hevisited14coun-
view,accordingtotheHarvard diedMay8atage60. Kirkuk.Hestudiedatahighschool triesandsleptinthesaunaatTeh- (cid:2)Readin-depthprofilesat
Crimsonnewspaper.Hiselection —JamesR.Hagerty inBaghdadrunbyAmericanJesu- ran’sHiltonHotelbecausenoother WSJ.com/news/types/obituaries
WORLDWATCH
ISRAEL SYRIA NORTHKOREA
U.A.E. Makes Appeal Economic Slump Pyongyang Says U.S.
To Stop Annexation Pressures Assad Relations in ‘Despair’
TheUnitedArabEmirates Scatteredprotestshave NorthKorea,onthesecond
madearareappealtotheIsraeli takenholdinSyriaamidgrowing anniversaryofthehistoricSing-
public,offeringclosersecurity angeroverthecrumblingecon- aporesummitbetweenKim
andcommercialtiesbetweenthe omy,testingtheauthorityof JongUnandPresidentTrump,
twonationsifPrimeMinister PresidentBasharal-Assadashe saidrelationswiththeU.S.had
BenjaminNetanyahubacked attemptstoconsolidatepower “shiftedintodespair”andprom-
awayfromhismovetoannex afternineyearsofconflict. isedtheregimewouldadvance
partsoftheoccupiedWestBank. Duringthepastweek,protest- itsnuclear-weaponsprogram.
TheU.A.E.’sambassadorto ersinthesoutherncityofSweida Inastate-mediareporton
theU.S.,YousefAlOtaiba,onFri- tooktothestreetswithchants Friday,RiSonGwon,NorthKo-
daypublishedanop-edinalarge againstMr.Assad.Somecalled rea’sforeignminister,questioned
Hebrewdaily,afirstforaGulf forthedownfalloftheAssadre- SS whetherrelyingontheclose
diplomat,singlingoutseveralpo- gime,aphraserarelyheardin PRE bondbetweenMessrs.Kimand
tentialareasforwarmerties,in- government-controlledareas. MA Trumpcouldeverimproveties
U
cludingbetweentheEmiratiand “Syriaisoursandnotforthe Z betweenthetwocountries.Mr.
A
Israelimilitaries.TheU.A.E.could houseofAssad,”thedemonstra- VI RiaddedthatPyongyangwould
bean“opengatewayconnecting torsinSweidashoutedinfootage ASS builda“morereliableforce”to
Israelistotheregionandthe fromthedemonstrationsshared K/T withstandthelong-termmilitary
U
world,”viaflights,logistics,me- onsocialmedia.Thedemonstra- NCH threatposedbytheU.S.
diaandmore,Mr.Otaibasaidin tionswereconfirmedbyalocal MIA Mr.Ri’ssharpenedtonewasa
YediothAhronothonFriday. monitoringgroup,Sweida24. DE shiftfromthesceneinSinga-
R
However,hewarnedthatthe Theprotestsshatteredata- DE poretwoyearsago,whenMr.
N
annexationprocesswouldharm booondirectcriticismofthere- A Trumpcalledthefour-hoursum-
X
progressinnormalizingrelations. gimeinareasunderitscontrol. ALE mit“fantastic”andcamerascap-
Israel’sforeignministry Securityforcesdidn’tintervene, WAVINGTHEFLAG:Russia’shydroflightteamdisplaysthecountry’sflaginSt.Petersburgon turedhis13-secondhandshake
spokesperson,LiorHaiat, butanactivistwhotookpart RussiaDay,aholidaymarkingparliament’s1990declarationofsovereigntyfromtheSovietUnion. withMr.Kim.
tweetedinresponsetoMr. wasdetained,promptingfurther Thetwoleadershavesince
Otaiba’sop-ed:“Peaceisanop- protestsdemandinghisrelease. forMr.Assad. sunktoalowagainsttheU.S. hamperedeconomicactivity. mettwicemoreandhavesent
portunityforthewholeMiddle RegimesupportersinSweida Theprotestscomeasthe dollarontheblackmarketear- Mr.Assadfiredhisprime eachotherletters.InSingapore,
East,andprovidespotentialfor respondedwiththeirownpro- Syrianregimebracesforaraft lierthisweek,pushingupprices minister,ImadKhamis,onThurs- thetwocountriespledgedto
usall.TheU.S.PeaceInitiativeis testWednesdaydenouncingU.S. ofnewchallengestoitswar- offoodandfuel. dayinwhatanalystssawasa bringpeacetotheKoreanPenin-
astartingpointtorealizethisvi- sanctions.Therewasalsoapro- batteredeconomy.Inflationhas Restrictionsonmovement bidtoscapegoathimforthe sulawithdenuclearizationand
sion.” regimerallyinthecoastalcityof soared,fuelingdiscontentwith imposedtocurbthespreadof country’seconomicwoes. newrelations.
—FeliciaSchwartz Tartous—abastionofsupport Mr.Assad.TheSyrianpoundhas thecoronavirushavefurther —IsabelColes —TimothyW.Martin
FROM PAGE ONE
Returns led to delayed refunds, and panystartedallowingcustom- Mr. Quinn, the Lululemon 20days,upfrom10to15days, BestBuyabout$400offraudu-
shopperswhoreturnedprod- ers back into stores with ap- Athletica Inc. customer, re- thecompanysaid. lent purchases made on his
uctsweeksormonthsagoare pointments last month, and ceivedaconfirmationfromthe Thecompany,planningfor credit-card account with the
Can Be a nowcallingbecausetheywant plans to fully open 800 loca- retaileronApril18thatitre- increased call-center volume electronicsretailer.Thecredit-
theirmoneyback. tionsonMonday. ceived the returned yoga throughout the summer, said card company refunded the
Wayfair had a large in- Macy’s,afrequenttargetof pants. Weeks later, when he itwouldshift500storework- moneyandissuedanewcard,
Real Drag crease in sales volume in re- social-mediaoutragefromdis- hadn’tgottenhismoneyback, ers to its call center in addi- buthewantstoalertBestBuy
centweeksthathasaddedto gruntled customers, apolo- hesaidhecontactedthecom- tion to 300 workers already totheproblemandensurethat
theproblemsshippingcompa- gized for long wait times on panyandreachedacustomer reassigned. Before the pan- hiscurrentaccountissafe.
nies face and led to record its customer-service website. serviceagentwhosaidthere- demic, Lululemon’s had 300 Hesaidhehasbeenunable
ContinuedfromPageOne customer-service demand, a A spokeswoman said service turn should process in a few call-center workers, said Ce- to reach anyone on an online
ParcelServiceInc.areadding spokeswomansaid.Thecom- levels are improving and days,butitdidn’t.Hesaidthe leste Burgoyne, a Lululemon chat and when he last called,
surchargestosomeshipments panyisadding500customer- should be back to normal in customer-service wait time executivevicepresident. the recorded line said there
in the U.S. to offset rising service workers to its U.S.- thecomingweeks. was 90 minutes, and emails Call-center volumes are wasa115-minutewaitandof-
costs and manage a surge of basedteamof1,800. Salesforce.comInc.,aseller went unanswered. He got his two-tothree-timesthenormal feredthatheleaveanumberto
packages. Best Buy Co., its stores ofcustomer-relationshipman- moneyback—$180forthetwo levelsduetoaspikeine-com- getacallback.Thatcallnever
For some companies, the mostly closed since mid- agementsoftware,saidweekly pants—afewweeksago. mercesalesandahighvolume came, he said, and Best Buy
situation is worse now than March,saidhighercustomer- customer-servicechatbotses- “You’dthinkacompanylike of mailed returns with fewer hasn’tansweredhisemailsor
early in the pandemic, when call volumes from shoppers sions for retailer and con- them,ashighendastheyare, openstores,shesaid. tweets, which he said usually
online buying surged amid unable to get in-person help sumer-goods clients have in- theywouldhavethatcustomer Ms.Burgoynesaidresponse getareactionfromcompanies
lockdowns, and businesses coupledwiththedisruptionof creased nearly fourfold since servicepiecefiguredoutalit- times to live chat and email because he has some 40,000
scrambled to get their cus- sendingcustomer-serviceem- theendofFebruary.Chatbots tlebitmore,”hesaid. arebacktonormal,whilecall- Twitterfollowers.
tomer-service teams working ployees to work from home, use artificial-intelligence- Lululemon’swaittimesare centerwaittimesareminimal. “It’s like the company
from home. That is because “meantwecouldnotrespond based algorithms to under- still longer than normal, and MattShapiro,a39-year-old doesn’t exist,” he said. “And
the volume of returns and tocustomersaswewouldlike standandanswertextorvoice thecompanyhasextendedits softwaredeveloperfromSeat- they just have a website up
overloaded shipping services and normally do.” The com- questionsfromcustomers. return-processingtimeto15to tle,isstillwaitingtohearfrom andnothingunderneath.”
A10|Saturday/Sunday,June13-14,2020 THEWALLSTREETJOURNAL.
****
FROM PAGE ONE
Spies Track
Oncehearrivedanhourbe- ing over the reins to their
fore the 9 a.m. opening time. friendswholivetwofloorsbe-
Lines at He ended up waiting 90 min- lowthem.
utestogetinside.“IthoughtI Adrian Moyer, a freelance
wasbeingsmart,”hesaid.Un- marketing consultant who
Grocery fortunately,“therewerealotof lives in Oakland, Calif.,
peoplethatwerealsotryingto launchedherownTraderJoe’s
besmart.” webcam in April, though she
Line watchers feel they saidithastakensomeworkto
can’tletdowntheiraudience. perfectthesetup.
ContinuedfromPageOne When the outbreak hit in The live stream has been
Thepandemichasmadegro- March, Joe Wanko and his thwartedbeforebyglarefrom
ceryshoppingadreadedneces- girlfriend Jessie Bricker had the sunlight, as well as her
sity.Social-distancingmeasures considered themselves lucky poodle Perry, who has a ten-
have limited the number of to live across from Trader dencytoknocktheoldiPhone
shoppers at one time, leading Joe’sinManhattan’sEastVil- 7overwhenshe’snotaround.
tolongwaitsjusttogetinthe lage.Theycouldtracktheline Shebrieflyrentedanearby
dooratsomestores. from their windows and pop Airbnbforachangeofscenery
Thedie-hardfansofTrader over at the most opportune andwascontemplatinganother
Joe’smaybewaitingthelon- andleastcrowdedtimes. shortsojournupuntilhernew
gest. The grocery chain is “People are always trying responsibilitiestookover.
knownforitsspecialtyitems, togettoTraderJoe’sforsome “Itwasseriouslyjustsoanx-
cultlikefollowingandubiqui- reason,”Mr.Wankosaid. iety-inducingtolookoutevery
tous lines that were bad In April, they decided to YER window and see this weird
O
enough before the pandemic. share their good fortune, M sightofthe6-feet-apartline,”
Now,evenastheeconomyre- starting a Twitter account to AN Ms.Moyersaid.“Nowit’slike,
RI
opens,queuesatseveralloca- post updates and observa- AD ‘No I can’t leave, I’ve got to
tions can stretch for blocks tions,inspiredbyMr.Shwirtz. AdrianMoyer’spoodle,Perry,sometimesknocksoverthephonemonitoringOaklandTraderJoe’s. keepthisprojectgoing.’”
beyondtheentrance. Mr. Wanko set up a live JenTarentino,adesignerat
Coming to the rescue is an streamtotakehisplacewhen viewhaveyettocrackthecode missesarequest. asking for updates on the Tiffany&Co.,livesaroundthe
informal network of Good Sa- he’s breaking for errands or oftheTraderJoe’sline,other “Ifeelthisresponsibilityto lengthoftheline. corner from her local Trader
maritanswhoarequarantined celebratingabirthday.During thanthatnoonewantstowait 200 people to get them the “Weweregettingcallsjust Joe’s and would go three or
with prime views of a local a trip out of town, he left outsidewhenitisraining. updated information,” Mr. constantly, especially at the four times a week before the
Trader Joe’s. As a public ser- watch duty in the hands of a “It’s still unpredictable,” Galpertisaid. beginning of coronavirus pandemic.Nowshealsorelies
vice, they regularly tweet or fellowTweeterinhisabsence. said Sebastien Galperti, who A Trader Joe’s spokesper- times,”Mr.Kuansaid. on Mr. Shwirtz’s alerts, and
broadcastupdatesonthelines “I’lldoitaslongasit’snec- startedmonitoringtheTrader sondeclinedtocomment. The live stream averages occasionallyprovidesherown
outside. essary,”hesaidofhisupdates, Joe’s store in Manhattan’s Jeff Kuan, who recently about10,000viewsaweek,ac- updatesontheline,whichshe
Before he discovered Mr. thoughhelooksforwardtoa MurrayHillthreemonthsago. graduatedfromtheUniversity cording to Mr. Kuan. He and canseefromherground-floor
Shwirtz’sfeed,Mr.Yolkutused return to normalcy. “I can’t Hesaidhewakesupearlieron of Pennsylvania’s Wharton his roommate are moving to apartmentonparticularlycon-
tostopbythestoreatrandom wait until I don’t have to do weekendstoaccommodateany SchoolinPhiladelphia,setup San Francisco this summer, gesteddays.
times,hopingtocatchtheline this.” early-morning inquiries, and awebcamtothelocalTrader buthavecomeupwithasuc- “It’slikeanightclubbutfor
atitsshortest. Even those with a 24-hour feels guilty whenever he Joe’s after classmates kept cessionplan:They’llbehand- groceries,”shesaid.
Investors
Assetsinhedgefunds Annualreturnsforvolatilitystrategies March16
thattradevolatility 50% 82.69
Bet on
$20billion ShortVolatility LongVolatility TailRisk 80
HedgeFund HedgeFund HedgeFund
25% Index Index Index
Volatility
0.3% 0.1%
70
10
0
ContinuedfromPageOne 60
tions, have flourished, with 0 –25
contracts tied to trillions of 2010 ’20 2010 ’20 ’10 ’20 ’10 ’20
dollars’worthofstockschang-
ing hands in any given week, CboeVolatilityIndex 50
according to data provider
TradeAlert.
“Itstartedoutasametric,”
AL 40
said Devesh Shah, who firstN
R
helped make the widelyOU
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wCbaotcehVedolavtoilliattyiliItnydegxa,uogre,VtIhXe,STREET 30
tradablein2004whilehewasALL
at Goldman Sachs Group Inc.,W
before retiring as a partner.THE
“Now...the genie is out of theFOR 20
bag and volatility is every-HY
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where.” RA
G
Today’s economic uncer-O
tainty means that volatilityHOT 10
P
tartailditiyngit,saenlfd,itshelirkeefloyretoaslstoayvoell--DWELL
ethveartepdroatsecitntvheesmtosreslvseesekfrotomeiit-,ULIEBI 0
J
or,increasingly,tomakemoney PaulBritton’sfirm,CapstoneInvestmentAdvisors,hasseveral 2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20
fromit. volatilitystrategies. Sources:HedgeFundResearch(assets);Eurekahedge(returns);FactSet(index) Note:2020figuresforassetsandreturnsareasoftheendofMarch.
“I don’t think there’s ever
been a time when there’s so Becker,adirectoratMilliman Thefirmstartedbuyingin- beenshelteringfromthepan- thatit’softenthetailwagging changes. Now, he said, he can
much uncertainty,” said Paul FinancialRiskManagement. expensive options and hedges demicononeofNewZealand’s the dog,” said Cem Karsan, a comfortably support himself
Britton, founder of Capstone The business of volatility tiedtotheVIX,thepersonfa- remoteislands,Mr.Chancon- seniormanagingpartneratvol- tradingvolatilityfull-timefrom
Investment Advisors LLC, one tookoffafterthefinancialcri- miliar with the matter said, sidersthefirm,whichoversees atilityhedgefundAegeaCapital his apartment in Manhattan,
ofthebiggestinvestmentfirms sis,asexchangeoperatorsand contracts that would pay out about$29millioninitstail-risk ManagementsLLC,whichover- usuallysittinginfrontofthree
specializingintradingvolatil- bankersdevisednew,andrisky, handsomely as major U.S. in- strategy, crisis-proof. March, sees about $250 million. “It’s computerscreens.
ity, managing roughly $7 bil- ways to trade it. The first ex- dexes began tumbling in late themostvolatilemonthinthe definitelyastructuralchangein Navigatingthemarketselloff
lion.“Thatistypicallygoodfor change-tradedproducttiedto February, abruptly ending the stockmarket’shistory,wasits howmarketswork.” this year has been trying. “I
volatilitypractitioners.Uncer- the VIX—known as Wall nearly 11-year bull market for bestmonthever. would love to take my blood
taintyisourfriend.” Street’s“feargauge”—wasin- stocks. Tail-riskvolatilitystrategies pressurewhileI’mwaitingfora
Turbulence
troducedin2009,shortlyafter It’sasharpshiftfromrecent followed by industry tracker trade,” he said. “I don’t think
marketsaroundtheworldcol- yearswhenbetsflourishedthat Eurekahedge have returned ThiswasondisplayinFeb- I’m on the edge of my seat. I
Explosive gains
lapsed. markets would remain calm. 57%thisyearthroughMarch. ruary 2018, during what be- thinkI’m2inchesoffofit.”
Tactics tracking volatility After the last recession, a Mr. Britton once addressed a In recent years, many cameknownas“volmageddon,” Thenotoriouslyriskyprod-
rangefromextremelyriskyto fear of steep stock losses room full of fellow volatility pointedtothepopulartradeof whentwovolatilityexchange- ucts have left others with big
relatively innocuous. Some spurred a rush into products hedge-fundmanagersathisan- betting against volatility as tradedproductscollapseddur- losses.Bydesign,manyofthem
trade volatility itself, tapping promisingtorisewhenmarkets nualconference,theGlobalVol- part of the reason markets ing a bout of turbulence, and consistently lose money over
derivatives tied to the VIX or aretumbling.Theensuingde- atility Summit, donning a red were so placid. Investors big again in March of this year. time,inpartbecauseofquirks
using options to express cadeofultralowinterestrates capwiththewords“MakeVol Somesaidoptionshedgingac- related to trading derivatives
whether market swings will ledinvestorsintoincreasingly Great Again” stitched on its tivity was exacerbating stock tiedtotheVIX.
shrink or swell. Sophisticated creativetacticstojuicereturns front in white letters. It was ‘Thegenieisout swings. This activity can also Therecentstretchofmarket
investors have long used eso- andgeneratesteadyincome. March2017,shortlyafterPresi- help drive swings in the last turbulence has been littered
ofthebagand
teric tools called variance OneofthestrategiesatMr. dent Trump’s inauguration, half-hour of the trading day, withsouredvolatilitybets.The
swaps,whichcansetthemup Britton’s firm, Capstone, that whencalmsweptthroughmar- volatilityis whenstocksarepronetoout- Alberta Investment Manage-
forexplosivegains—orlosses— involvesbettingonthediffer- ketsandstockssoared. size moves, according to re- ment Corp., which oversees
everywhere.’
basedonwhetherstockscrash ences in swings between the Many attendees of those searchfromBarclaysPLC. morethan100billionCanadian
orsoar. broaderstockmarketandindi- summitssayvolatilityisanas- Mr. Chan says hedging by dollars(US$73billion)inpen-
Morethanatrilliondollars’ vidualshareshasreturned12% set class of its own, akin to optionstradersandbuyingand sion and endowment funds in
worth of derivatives bets tied through May, according to a stocks and bonds as a must- selling by exchange-traded Canada, estimated it would
totheVIXhavechangedhands person familiar with the mat- haveinaportfolio.Mr.Britton andsmallturnedtosellingop- funds can drive stock moves, takelossesofaboutC$2.1bil-
this year, according to Cboe ter.Itsflagshipvolatilitystrat- saysinvestorsneedtolookto tions in a bid that markets particularly at the end of the lion on a volatility-related in-
GlobalMarketsdata,morethan egyhasreturned2%.Bycom- different strategies that will would stay tame. Dealers at day.Thatgiveshimanopportu- vestmentstrategy.
quadruplethefigureadecade parison,theS&P500wasdown generate returns in times of banksormarket-makingfirms nity to make money from the “Marketsbehavedinaman-
ago.Fundssittinginvolatility 5%,includingdividends,forthe market turmoil, with bond who were the end buyers of wildintradayswings. nernever-before-seenandthe
exchange-tradedproductsrose sameperiod. yieldsnearrecordlows. these options contracts often Likeothertraders,Mr.Kar- result was a very unfortunate
toahighofalmost$12billion, Another Capstone strategy, ErnieChanlaunchedhistail- hedgethemselvesinthestock sansaysthedistortionscreate loss,”CEOKevinUebeleinsaid
accordingtoFactSetdata,and designed to trade violent riskstrategyaftertakingsevere market, buying into falling opportunities for him to buy inawrittenstatement.
trading volumes for many swingsinthestockmarketdur- lossestradingcurrenciesinthe marketsandsellingintorising andsellderivatives,takingad- NewYork-basedhedge-fund
surged to a record during the ing crises, has returned 220% wakeofthe2011downgradeof markets. vantageofminusculepricedis- firmMalachiteCapitalManage-
recent tumult. At times this throughMay,thispersonsaid. U.S. Treasurys. That event At other times, the trades crepancies. ment LLC shut its doors in
year, a volatility product was Theseeventsarereferredtoas roiled markets and wiped out have been blamed for exacer- Access to exchange-traded March,citing“extremeadverse
among the most popular ex- “tailrisks,”eventswithasta- about a third of his firm’s as- batinginstability. fundshavemadeiteasyforin- market conditions.” Allianz
change-tradedproductsinthe tisticallyminuteprobabilityof setsatthetime.Hethoughta “The exposure in these de- dividualslikeDennisMurphyto GlobalInvestorssaiditwasliq-
entireU.S.stockmarket. occurring. volatility-focused strategy rivativesissosignificantnow join the trades. After the for- uidatingtwohedgefundsafter
Thisyear,assetsunderman- Thereturnsthisyeararein wouldshieldhisfirm,QTSCap- mer immigration officer re- heavy losses on stock options
agementforhedgefundstrad- partthankstoabetinJanuary ital Management, from taking Averagedailyoptionsvolumes ceivedapincongratulatinghim trades,TheWallStreetJournal
ingvolatilityhitarecord$19.4 that investors weren’t fully anotherbrutalloss.Itstrading for25yearsofgovernmentser- reported.
billion, according to industry graspingthegiantriskthatthe program,whichkicksinunder 25millioncontracts vice,hequitoutofdissatisfac- ChrisWalvoord,whoadvises
trackerHedgeFundResearch, coronavirusposedtotheworld. certain conditions, often goes tionwithhiscareer.Heinitially big investors at Aon Invest-
morethandoubletheamounta As the virus spread through quietforlongperiodsbeforea triedhishandattradingstocks mentsUSAInc.,saiditcanbe
20
decade ago. Such strategies ChinaandU.S.stockshovered burstofactivity. around earnings releases but difficultforsomeinvestorsto
have attracted big investors near records, Mr. Britton Mr. Chan was on a cruise didn’thavemuchluck. manage the risk that comes
likethe$395billionCalifornia flaggedthedangerataweekly shipinFebruarywhenhiscell- 15 “Thenafriendofminetold with complicated derivatives.
Public Employees’ Retirement meeting with his investment phonewasinundatedwithmes- me,‘Hey,didyoueverlookat Hisclients,includingpensions,
System,thelargestpublicpen- committeeinNewYork. sages.Aftermonthsofinactiv- thesethingscalledETFs?’”Mr. endowments and insurance
sion plan in the U.S., and the “Iwouldsay:‘VisualizeCNN ity,theprogramwastradingin 10 Murphy said. “I didn’t know companies,recentlyheldabout
VirginiaRetirementSystem. running a story where a afrenzy.“It’salmostlikeapan- whatanETFwas.Ihavenofi- $4.7billioninvolatility-related
Inotherstrategies,volatility healthymotheroftwofromthe demicpredictionsystem,”said nancialbackground.” investments.
isusedasametricdrivingbuy- Midwestdiesfromthecorona- Mr. Chan. “It detected that 5 Helandedonhisspecialtyin “Thetidegoesoutandyou
ingandsellingdecisions.About virus…andvisualizewhatthat somethingisnotgoingwellin 2016:theProSharesUltraVIX seewho’snotwearingaswim-
$330billionisinvestedinvola- means to the market,’” Mr. theworldanditstartedtolet Short-Term Futures ETF, suit,”hesaid.“Youdon’tknow
0
tility-control funds, up from Brittonsaid.“That’sgoingtobe ustrade.” known as UVXY, which tracks who’s doing a good job and
$123billionin2010,according playingfor72hours,nonstop, Based in Ontario, Canada, 1980 ’90 2000 ’10 ’20 complexderivativesandcanbe who’snotdoingagoodjobun-
to estimates from Joseph onloop.” whilehisbusinesspartnerhas Source:OptionsClearingCorp. easily traded on stock ex- tilyouhaveabigdislocation.”