WSJ 03052024

BlinkenMeetsWithHostageFamiliesinIsrael

What’s News

 TheFederalReserve acknowledgedarecentsetbackinitsinflationfightbut saiditwasmorelikelyto keepinterestratesattheir currentlevelforlongerthan toraisethemagain. A1

 TheS&P500 extendedits recentslideafterthecentral bank’soutlook,falling0.3%and matchingtheNasdaq’ssession decline.TheDowrose0.2%. B10

 Exxonwassetto closeits

$60billiondealforPioneer followinganagreementwith antitrustenforcersnottoadd formerPioneerCEOScott Sheffieldtoitsboard,peoplefamiliarwiththemattersaid. A1

 Brazilianaircraftmaker Embraerisexploringoptions foranewmodeltochallengeAirbusandBoeing’s duopolyforlargejets. A1

 Agrowingnumber ofcompaniesareoffering401(k) plansthatpromiseemployeesadegreeofpredictability, withretirementpaychecks theycancountonforlife. B1

 CoreWeave,acloud-computingstartupbackedby Nvidiaandtailoredforartificialintelligence,nearlytripleditsvaluationto$19billioninafundinground. B4

 J&Jsaiditwould puttoa voteanearly$6.5billionsettlementofferfortensof thousandsoftalc-related personal-injurylawsuits. B1

 MLBfansinsome cities lostaccesstoBallySports regionalnetworksafterComcastandDiamondfailedto reachanewcarriagedeal. B2

 Qualcommreported a slightriseinquarterlysales asthemobile-phonechip companygrewitsfootprintin theautomotiveindustry. B3

Business&Finance World-Wide

 Hundredsofprotesters werearrestedacrossseveral campuses,asuniversities andpolicecrackdownon whattheysayareoutsiders escalatingpro-Palestinian demonstrations. A5

 Universityleadersare navigatingthemosttumultuous waveofstudent demonstrationssincetheVietnamWar withvariedstrategies. A5

 TwoRepublicans joined DemocratsintheArizona Senatetorollbackthestate’s neartotalbanonabortions, assomeintheGOPlookto reverseamajorpoliticalliabilityfortheparty. A3

 Asix-weekabortionban tookeffectinFlorida,adding toanxietiesintheSouth, whereaccesstotheprocedure hasnarrowedsincetheSupremeCourtoverturnedRoe v.Wadetwoyearsago. A3

 Rep.MarjorieTaylor Greene saidshewouldcallavotenext weekinalong-shoteffortto oustHouseSpeakerMike JohnsonovermanyRepublicancolleagues’objections. A4

 Proposalsfora restrictive newpoliticalfundinglawset offanoppositionstormin theformerSovietrepublicof Georgia,withcriticsaccusingRussiaofmeddlingin Tbilisi’sdomesticaffairs. A7

 Thesurprise announcementofanewprimeministerforHaitithreatenedto fractureatransitionalcounciltaskedwithchoosingnew leadersforthecountry. A7

 TheBidenadministration saiditwouldcancel$6billionin studentloansforpeoplewho attendedtheArtInstitutes. A2

 Died:PaulAuster,77,novelistandfilmmaker. A3

PLEAFORRELEASE: SecretaryofStateAntonyBlinkenmeetsinTelAvivonWednesdaywiththefamiliesofhostages kidnappedbyHamasintheOct.7attackonIsrael.TheU.S.ispressingforatemporarycease-firedealintheGazaStrip. A6

FTC,ExxonClearWayforMegadeal

Oilgiantagreesto freezeoutPioneerexCEOasconditionfor $60billionpurchase

BY COLLIN EATON

ExxonMobilissettoclose its$60billionmegadealfor PioneerNaturalResources followinganagreementwith antitrustenforcersnottoadd formerPioneerCEOScott Sheffieldtoitsboardofdirectors,accordingtopeoplefamiliarwiththematter.

TheFederalTradeCommissionwassettoallegeas soonasthisweekthatSheffieldengagedincollusiveactivitythatcouldhaveraised thepriceofoil,thesepeople said.TheallegationswillincludethatSheffieldsenthundredsofmessagestorepresentativesoftheOrganization ofthePetroleumExporting Countriesaboutmarketdynamics,includingpricingand productionlevels. Thereisnoallegationof anywrongdoingbyExxon,accordingtothepeople.

Theoilgiantwillenter

MedicareCostsHitCVS

CVSHealthpostedsharplylowerfirst-quarternetincomeand cutitsguidancefor2024,citinghighermedicalcostsinits Medicarebusiness,whichithasinvestedheavilyin. B1

intoaconsentdecreewith theFTC,agreeingtokeep Sheffieldofftheboard,the peoplesaid.Withthefilingof thatagreement,thedealbetweenExxonandPioneer couldclosewithindays. Sheffielddeclinedtocomment.

ExxonagreedinOctoberto buyPioneerfor$60billionin stock,markingitsbiggest dealsinceitmergedwithMobilinthelate1990sandthe largestoil-and-gasdealin twodecades.

TheHouston-basedoilgiantissettoacquirePioneer’s

massiveswathofprolificoil landintheMidlandBasinof WestTexas,wherethe smallershaledrillerhasoperatedfordecades. InDecember,thecompaniesdisclosedtheFTChad soughtadditionalinformation fromthecompaniesaboutthe deal,astepittakeswhenreviewingwhetheramerger couldbeanticompetitiveunderU.S.law. ExxonandPioneertoPleaseturntopageA2

BY NICK TIMIRAOS

WASHINGTON—TheFederalReserveacknowledgeda recentsetbackinitsinflation fightbutsaiditwasmore likelytokeepinterestratesat theircurrentlevelforlonger thantoraisethemagain.

Officialsheldtheirbenchmarkfederal-fundsratesteady Wednesdayatarangebetween5.25%and5.5%,the highestintwodecadesanda levelitreachedlastJuly,followingarunofeconomicdata thatrevealedsimmeringprice pressuresintheeconomy.

FedChairJeromePowell indicatedthatthebartocut interestrateshadgoneup,but thatthebartoincreaserates wasevenhigher.

“It’slikelytotakelonger forustogainconfidencethat weareonasustainablepath” tolowerinflation,Powellsaid. Hesaidheexpectedinflationwouldresumeitsdecline thisyear,butadded,“myconfidenceinthatislowerthan itwas.”

Atthesametime,Powell said,forofficialstoputrate increasesbackonthetable, theywouldneedpersuasive PleaseturntopageA2

BeijingBracesforaRematch OfTrumpvs.China

BY LINGLING WEI

Lastyear,asMikePompeo’smemoir, “NeverGiveanInch,”madetherounds amongChina’sleaders,onepassageinparticularenragedXiJinping.Thesecretaryof stateunderformerPresidentDonaldTrump wrotethattheU.S.should“grantfulldiplomaticrecognition”toTaiwan.

Xi’sangerattheremarkforeshadoweda broaderworrycoursingthroughBeijing:What awaitsChinashouldTrumpandhisinnercircleregainpower?

Trump’sfouryearsintheWhiteHousehad broughtturmoiltotherelationship.Whenhe leftin2020,Beijingbreathedasighofrelief. “Goodriddance,DonaldTrump!”theofficial

XinhuaNewsAgencysaidinanunusuallyexpressivetweet. NowChineseofficialsarequietlypreparing fortheprospectofTrump’sreturntothe WhiteHouse—andbracingfordramainits U.S.relationstoampupagain,accordingto peopleclosetotheChineseleadership’sthinking. PresidentBidenhasmadelifedifficultfor Beijing,too,bykeepinginplaceandevenexpandingTrump’stough-on-Chinaeconomic policies,andbybuildingupcoalitionswith U.S.alliestocounterChina.YetBidenhasalso soughttodialbackrancorwithBeijing,aneffortXiappreciates,thepeoplesaid. Acaseinpoint:Washingtontookcarenot PleaseturntopageA8

>

AnnualMeetingsCanBe RomanticatBerkshireHathaway iii WarrenBuffetthimselfhasjumpedin toserveasawingmanatOmahagathering

BY KAREN LANGLEY

Thisweekend,thousandsof investingaficionadoswilldescendonOmahatohearWarrenBuffettholdforthonbusinessandlife.Iftheyarelucky, theymightcatchapassionate shareholderproposal. Insomethingofa closelyheldsecret, thefamedBerkshireHathawayannualgatheringhasa romantichistory. Whilegettingengagedatafancyrestaurantorscenicoverlookisnice,aselect groupofcouplesacrossthe U.S.cantracetheirbigmomentbacktothewell-known weekendconfabinNebraska. “Believeitornot,Omaha doesn’thavetoomanyclaims tofame.Warrenwasoneof them,”saysNebraskanative MichaelDentlinger,onwhyhe askedRachelGogantomarry

himatapastBerkshireweekend. Buffetthasdubbedthe gathering“Woodstockfor Capitalists,”anditismore thanachancetohearfrom thelegendaryinvestorandattendtocorporateformalities. Planningtoproposeatthe Omahaevent?Ithelpsthat Berkshire-ownedBorsheimsjewelrystoreis convenientlynearby. Infact,onFriday,attendeescansipcocktailsatashareholderonlyshoppingnightat Borsheims,followed byapicnicdinnerand moreshoppingSaturdayeveningatthecompany’sNebraskaFurnitureMart.

Buffetthimselfhasbeen knowntomanthecounterat Borsheims,inspiringringpurchases.

“Itwassortofthismagical, once-in-a-lifetimekindof PleaseturntopageA8

BY ANDREW TANGEL AND BENJAMIN KATZ

WithBoeinginthethroes ofitslatestcrisis,oneofits smallerrivals,Embraer,isexploringoptionsforanew modeltochallengethe duopolyforlargejetsthathas dominatedtheindustryforalmostthreedecades. InternalassessmentsconductedbyEmbraerhavedeterminedthattheBrazilian companyhasthetechnological know-howandmanufacturing mighttodevelopanext-generationnarrow-bodyaircraft, itsfirstinthatmarketsegment,peoplefamiliarwiththe company’sstrategyandplanningsaid.Embraerhasamarketvalueofabout$5billion andspecializesinregionaland businessjets. Theplanewouldcompete head-onwiththesuccessors toBoeing’s737MAXandAirbus’sA320inacategorythat iskeyforbothmanufacturers. Greenlightingtheproject wouldalsorepresentapoten-

tiallymake-or-breakbet:New aircraftprogramstypically costtensofbillionsofdollars todevelop,cantakemorethan adecadefrominceptiontoenteringserviceandregularly don’tgettomarket.

GusKelly,chiefexecutiveof AerCap,oneofthebiggestaircraftlessors,saidhewouldn’t expectanynewEmbraer-derivednarrow-bodyjetuntil themid-to-late2030s,much asairlinesandlessorsmight welcomethecompetition.“I thinkit’salongshot,tobe honest,”KellysaidonaninvestorcallWednesday.“And evenifitdoescomeoff,I don’tthinkitwillberelevant forthenext15years.”

Whiletheplansarestillin theirinfancyandafinaldecisionhasn’tbeenmade,Embraerhasbeenlayingthe groundwork,includingassessingpotentialpayloadand rangerequirements.Embraer hasalsosoundedoutpotential financialandindustrialpartnersthatthecompanywould PleaseturntopageA4

MethodistChurchVotestoEndBanonOrdainingGayClergy

TheUnitedMethodist Churchismovingtoendits longstandingbanontheordinationofgayclergy,following decadesofdebateoverthe roleofLGBTQpeopleinthe church.

TheWednesdayvoteto endthebanpassedwith93% approvalattheMethodist Church’sfirstgeneralconferencemeetingsince2019.It waspackagedwithseveral othermeasuresthathadreceivedsubstantialsupport fromalegislativecommittee. DelegatesattheCharlotte, N.C.,conference(photo)also votedtopreventclergyand churchesfrombeingpunished forholding—orforrefusingto hold—same-sexweddings. Thevotetoallowtheordinationofpeoplewhomthe churchdescribesas“selfavowedpracticinghomosexuals”comesafteradecadeslongschismoverLGBTQ rights.ThousandsofcongregationshavelefttheChristian denominationinrecentyears. Thoughthebanhadbeen inplacefordecades,many clergymembersignoredit,

sparkingtheireofmoreconservativefactions.Thetopic cametoaheadatthechurch’s 2019generalconferenceinSt. Louis,wherealiberalfaction seekinginclusionforLGBTQ peoplefacedoffwithmore conservativemembers. Aplanproposedatthe timebyprogressivestoprovidemorelocaldecision-makingonsame-sexmarriageand LGBTQclergyfailed,whilea plantostrengthentheban passed.Theconferencealso approvedstricterpunishments forthosewhodisobeyed. Someliberalcongregations saidafterthe2019votethey wouldcontinuetoholdsamesexweddings. Thedenominationagreed toallowchurchestodisaffiliatefromtheMethodist Church,whileretainingchurch property,untiltheendof2023. Someoftheconservative churchesthatleftformeda separateentity,theGlobal MethodistChurch.That churchsaidWednesdayit wouldn’tcommentonthe UnitedMethodists’decisions. —VictoriaAlbert

U.S.WATCH

WASHINGTON,D.C.

MoreStudentDebt

WillBeCanceled

TheBidenadministrationon Wednesdaysaiditwouldcancel$6billioninstudentloans forpeoplewhoattendedthe ArtInstitutes,asystemofforprofitcollegesthatclosedthe lastofitscampusesin2023. Sayingthechainluredstudentswith“pervasive”lies,the EducationDepartmentisinvokingitspowertocancelstudentloansforborrowerswho weremisledbytheircolleges. TheEducationDepartment willautomaticallyeraseloans for317,000peoplewhoattendedanyArtInstitutecampusbetweenJan.1,2004,and Oct.16,2017. Intotal,theDemocraticadministrationsaysithasapprovedthecancellationofalmost$160billioninstudent loans.

KANSAS

—AssociatedPress

TwisterLeavesOne

ContinuedfromPageOne

gethersubmittedmillionsof documentsfortheantitrust probe,peoplefamiliarwith themattersaid. Theantitrustenforcerswill allegeSheffieldattemptedto coordinateananticompetitive campaigntocurtailoutputby Americanfrackers,which couldhaveraisedoilprices andthusbenefitedPioneer, thepeoplesaid.

Foryears,investorsurged frackerstostopoverspending ondrillingnewwellsand pumpingever-increasing amountsofcrude,andinstead tokeepproductionlargely flat,whichwouldincrease cashflowsandenablehigher returnstoshareholders.It tookyears—andthecrippling Covid-19pandemic—forshale producerstoagree.

U.S.frackersfiercelycom-

FedCites

Inflation Setback

ContinuedfromPageOne

evidencethathigherinterest ratesweren’tbringingdown inflation.

“That’snotwhatwethink we’reseeing,”Powellsaid.

“Thatwillbeaquestionthat thedatawillhavetoanswer.” Intherun-uptoWednesday’sannouncement,investorshadbeensquirrellyover theprospectthatPowell mightentertainrateincreases.Stocksmovedhigher afterPowellsaidhethought rateincreaseswereunlikely, butthentheyreversedcourse asinvestorsdigestedhiscomments.

TheS&P500roseasmuch as1.2%intheafternoon,then closeddownby0.3%,at 5018.39.Theturnaround

Exxon’s$60billiondealforPioneerwouldbethelargestoil-and-gasacquisitionintwodecades.

petedforyearswithOPECfor marketshare. Ata2017dinnerinHouston,shaleexecutivessatdown forafirst-of-its-kinddinner withMohammadBarkindo, whowasthenthesecretarygeneralofOPEC.Sheffieldattendedthedinner,during

markedtheindex’sbiggest blowngaininmorethana year.

TheNasdaqfell0.3%to 15605.48,whiletheDowJones IndustrialAverageendedup 0.2%at37903.29.

Yieldsonthe10-yearTreasurynotefell0.092percentagepoint,thelargestone-day declineinthreemonths,to closeat4.591%.

“Thehurdletohikeis higherthanthemarkethad pricedin,”saidMichaelde Pass,globalheadofrates tradingatCitadelSecurities. “Theyfeelcomfortablewith wherepolicyis.”

Separately,thecentral bankapprovedplanstoslow thecontinuingreductionof its$7.4trillionassetportfolio inabidtoextendthewinddownofemergencypandemic stimuluseffortsitlaunched fouryearsago.

Thecentralbankliftedinterestratesrapidlyfromnear zeroin2022tocombatinflationthatreacheda40-year high.

Thefed-fundsrateinflu-

whichBarkindodiscussed OPECnegotiationsoncutting oiloutput,amongothertopics. “They’retryingtofindout moreaboutU.S.shaleand we’retryingtofindoutwhat OPECisthinking,”Sheffield saidatthetime. Aftertheonsetofthepan-

encesotherborrowingcosts throughouttheeconomy,such asonmortgages,creditcards andbusinessloans.The30yearfixed-ratemortgage stoodat7.17%lastweek,up from6.61%attheendoflast year,accordingtoFreddie Mac.

Higherrateshavealso boostedtheU.S.government’s costofinterestpaymentson morethan$27trillioninpublicly-helddebt.Thoseexpensesareonpacetosurpass defensespendingthisyear.

Someanalystssaidthey weresurprisedthatPowell didn’tbegintoentertaina morewholesalerethinkabout whetherpolicywastight enoughamidsignsthatsome hard-hitsectorsoftheeconomy,includingmanufacturing andhousing,mightbe throughtheworstofthehit fromhigherrates.

“Theyarestickingtotheir storyuntiltheygetenough informationthattheyhaveto shift,”saidWilliamEnglish,a formerseniorFedeconomist whoisaprofessoratYale

demicin2020,ahistoricdrop inoildemandpromptedU.S. producerstodramaticallycut theirdrillingrigs,shutinwells andslowproductiongrowth. Theystuckwithcapitaldisciplineforyears,withPioneer andotherlargeshalecompaniesvowingmoreconservative

spendingandtosendmore cashtoshareholders.

Pioneerandmanyotheroil producersreapedbillions moreincashflowintheyears thatfollowed,anddistributed muchofthattoinvestors.Energypricesspikedin2022followingRussia’sinvasionof Ukraine.

AsTheWallStreetJournal previouslyreported,after yearsofrapiddrilling,limitationsonshalecompanies’inventoryofpotentialdrilling locationshavealsoprevented themfromspeedingupoilproductiongrowthtoprior highlevels.

Executivesandinvestment bankerscitedinventoryconcernsasacrucialdriverbehindawaveofmergersand acquisitionsthatbeganlast year.

Sheffieldstartedworking forPioneer’spredecessorcompany,Parker&ParsleyPetroleum,in1979.Thatcompany mergedwithanotherin1997 toformPioneer.Sheffieldhad retiredin2016butreturnedto thejobin2019.Heretiredfor asecondtimeattheendof 2023,afterthesaleofPioneer toExxonwasproposed.

interestratesmightnotbeas restrictiveaspreviouslyanticipated,castingdoubton whetherratecutswouldbe warrantedthisyearand whetherrateincreasesmight bebackinplayshould monthlyinflationreadings runatapacemoreconsistent withinflationabove3%.

“Ofcourse,we’renotsatisfiedwith3%inflation,”Powell said.“‘Threepercent’can’tbe inasentencewith‘satisfied.’”

DeadinSmallCity OnepersondiedonTuesdaywhenatornadoripped throughthesmallcityof WestmorelandinnortheasternKansas,destroying houses,RVsandoutbuildings, authoritiessaid.

PottawatomieCountyofficialssaidatornadostruck thecityofabout700people Tuesdayevening,destroying 22homes.

APottawatomieCounty spokespersonconfirmedthe singlefatality.Threepeople werereportedinjured,but noneofthemwerecritical, thespokespersonsaid. Tuesday’sstormscame justtwodaysaftertornadoes torethroughOklahomaon Sunday,killingfourpeople andinjuringatleast100.

—AssociatedPress

MARYLAND

MillionstoBePaid

InUnjustConviction

Marylandofficialson Wednesdayapprovedmore than$3millionincompensationforaBaltimoremanwho spent31yearsinprisonona wrongfulmurderconviction. Gov.WesMooreapologized toGaryWashington,whowas a25-year-oldnewfatherwhen hewasconvictedin1987of first-degreemurderandagun crimeinthefatalshootingof FaheemAlitheyearbefore. Nophysicalevidencelinked himtothemurder,according toMoore,andwitnessessaid thathewasn’ttheshooter. Washington,now63,wasreleasedinOctober2018. —AssociatedPress

Source:FederalReserve Note:Chartshowsmidpointofrangesince2008.

SchoolofManagement.“If thiscontinuestolookbadon theinflationfront,theywill havetorespondatsome point”byputtingarateincreaseonthetable,“butthey didn’tlaythegroundworkfor thattoday.” Policymakershadbeensurprisedlatelastyearbya stringofbenigninflation readings,openingthedoorto conversations aboutpotential cutsandfuelingmarketrallies.Butinflationinthefirst threemonths ofthisyearderailedhopes thatthecentral bankwouldbe abletofollow throughon thosecutsanytimesoon. Ameasureofinflationthat stripsoutvolatilefoodand energypricesstoodat2.8%in Marchfromayearearlier, downfrom4.8%inMarch 2023.Butthe12-monthmeasuremasksthemorerecent setbacks:Overthesixmonths throughMarch,pricesroseat anannualized3.0%rate,up from1.9%forthesixmonths endinginDecember.TheFed targets2%inflationovertime. SomeFedofficialshave saidinrecentweeksthathigh

Nevertheless,hesuggested thebartoresumerateincreaseswouldrequiresomethingmoreseriousthaninflationstallingoutaroundits currentlevel.“Ifwedidhave apathwhere…inflationis movingsidewaysandwe’re notgaininggreaterconfidence,well,thatwouldbea caseinwhichitcouldbeappropriatetoholdoffonrate cuts,”hesaid.

Powelloutlinedtwoother scenarios:Oneinwhichthe labormarketshowedmaterial andunexpectedweaknessand anotherinwhichinflationresumedthedeclineseenlast year.“Thosearepathsin whichyoucouldseeuscuttingrates,”hesaid.

Thecentralbank approvedplans toslowthe reductionofits assetportfolio.

ThestakesarehighforFed officials,who aretryingto navigatetwo risks.Oneis thattheyease toosoon,allowinginflation tobecomeentrenchedata levelabove their2%target. Theotheris thattheywait untiltheeconomycrumples undertheweightofhigher rates.

Democratshavebeennervousthathigherratesare sappingconsumersentiment andriskingaslowdownahead ofNovember’selections.Some economists,meanwhile,have saidgovernmentspending,includingoninfrastructureand subsidiesforclean-energyinvestment,iscomplicatingthe jobofbringinginflationdown byaddingmorefueltoeconomicactivity.

Journaltoanyerrorsinnews articlesbyemailing wsjcontact@wsj.com orbycalling 888-410-2667.

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ArizonaSenateVotestoRepealAbortionBan

TwoRepublicans joinwithDemocrats; governor’soffice promisessignature

BY ELIZA COLLINS

PHOENIX—TwoRepublicans joinedwithDemocratsinthe ArizonaSenatetorollbackthe state’sneartotalbanonabortions,assomeintheGOPlook toreverseamajorpoliticalliabilityforthepartyaheadof theNovemberelections.

ThemoveWednesday comesaweekaftertheArizonastateHousealsovotedto repealtheban.ThreeRepublicansjoinedwithallDemocrats inthatvote.

“Thistotalabortionban wouldhavejaileddoctors, threatenedthelivesofwomen acrossourstateandstripped millionsofArizonansoftheir bodilyautonomy,”Democratic

Gov.KatieHobbssaid.Herofficesaidshewouldsignthe billThursday.

TheArizonaSupreme Court’sdecisioninAprilto bringbacka160-year-old, near-totalbanontheprocedureinflamedthepoliticsin oneofthecountry’stopelectoralbattlegrounds,whichis noweffectivelygroundzerofor abortionpolitics.Ithasn’tgone intoeffectyetandthestate’s 15-weekabortionbanisstill thelawoftheland. However,becauseofaquirk inlegislativeprocedureinArizona,residentsarelikelyto spendmuchoftheirsummer underthe160-year-oldlawbecausebillsinthestatetypicallytakeeffect90daysafter thelegislativesessionends. Thestate’sDemocraticattorneygeneralhassaidsheis lookingatlegaloptionstokeep theCivilWar-erabanfromtakingplaceatall. RepublicanSens.Shawnna

BolickandT.J.Shopecrossed partylinestoadvancethe measure.Bothareseenas Democratictargetsinthis year’selection.Bolickisalso marriedtooneoftheSupreme Courtjusticeswhovotedtoreinstatetheban. Eventhoughthebanwas overturned,Democratsarestill expectedtocampaignheavily onaccesstotheprocedure hereandacrossthecountry, arguingthatformerPresident DonaldTrumpsoweduncertaintybynominatingjustices totheSupremeCourtwhorepealedtheconstitutionalright toanabortionandRepublicans willcontinuetopushtolimit accesstotheprocedure.

Arizonavotersareexpected toconsideratleastoneballot measuretoexpandaccessto theprocedurebeyond15weeks alongwithatleastahalfdozenotherstates.Oneof themisFlorida,whichputin placeasix-weekabortionban

Florida’sSix-WeekCurb Begins,FollowingGeorgia’s

BY LAURA KUSISTO

ATLANTA—WhenGeorgia bannedabortionaroundsix weeksofpregnancyin2022, thenumberofpatientsseeking theprocedureattheFeminist Women’sHealthCenterdwindledtoatrickle,confirming worriesfromabortion-rights advocateswhopredictedthe lawwouldoperatemuchlikea totalban.Then,aftertheinitialshock,theappointment trafficcameback.

OnarecentwarmAprilday, thesuburbanAtlantafacility wasalmostasbusyasitever was.Ithasbeenproviding abortionsthreedaysaweek, seeingabout30patientsaday. Andtheclinicrecentlyaddeda fourthdaytoaccommodate demand.

“Asix-weekbanisnotatotalban,”saidKwajelynJackson,theclinic’sexecutivedirector.Whileoperatingunder thenewlimits,thefacilityis “ultimatelyabletoseethousandsofpatients,”shesaid.

InneighboringFlorida,a six-weekbantookeffect Wednesday,creatingadditionalregionwideanxietiesin theSouth,whereabortionaccesshasnarroweddramaticallysincetheSupremeCourt overturnedRoev.Wadetwo yearsago.IfGeorgiaisany guide,Floridacanexpecta complicatedlandscapeahead: Feweroverallabortionsbut continuedaccessforwomen whoactfast,andbustlingactivityatclinics,thoughuncertaintyfordoctorsandpatients. Whilemorethanadozen

BY JAMES LEIGH

PaulAuster,theprolific Americannovelistbehindthe acclaimed“NewYorkTrilogy,” hasdied.Hewas77yearsold. Austerdiedathishomein BrooklynonTuesdayfrom complicationsfromlungcancer,accordingtohiswife,authorSiriHustvedt.Hewas surroundedby hisfamily. Austerwas bornin1947to Jewishparents inNewark,N.J. Inaninterviewwiththe Guardianlastyear,herecalled achildhoodincidentwhena boystandingnexttohimwas killedbyalightningstrike. “Beingrightnexttoaboywho wasessentiallymurderedby thegodschangedmywhole viewoftheworld,”hesaid. AftergraduatingfromColumbiaUniversityin1970and workingseveraloddjobs(includinganattemptatwriting pornographywhichheabandonedbecause“Iranoutof synonyms”),Austermovedto Parisforseveralyearsbefore returningtotheU.S.wherehe madealivingasatranslator ofFrenchliterature.

Austerwrotemorethan30 booksandwasshortlistedfor theBookerPrizeandvoted intotheAmericanAcademyof ArtsandLetters,theAssociatedPresssaid. “TheInventionofSolitude,” amemoirthatdealtwiththe deathofhisfather,garnered

stateshavebansonabortion throughoutpregnancy,restrictionsatoraroundsixweeks arelesscommonandmore poorlyunderstood.Thesesocalledheartbeatlawsgenerally prohibitabortiononcefetal cardiacactivitycanbedetected.ForGeorgia,thelimits havereducedabortionsby abouthalf,comparedwithactivitybeforetheban.

BeforetheSupremeCourt withdrewthefederalconstitutionalrighttoanabortion, womenhadarighttochoose theprocedureuntilfetalviability,oraround23weeksof pregnancy.Whileveryfew abortionshappenedthatlate, thesix-weekdeadlinecomes soonaftermanypregnant womenmisstheirfirstperiod.

Florida’sRepublican-led legislaturepassedthesix-week abortionbanayearago,butit wasn’tclearedtotakeeffect untilarecentstateSupreme Courtruling.Thatcourtalso

allowedareferendumonthe Novemberballotthat,ifapproved,wouldrestorebroad protectionsforabortion.

SouthCarolina’sSupreme Courtallowedaheartbeatlaw inrecentmonths,andlawmakersinIowaareaskingthehigh courttheretoallowasix-week bantotakeeffect.

Georgia’ssix-weekwindow haspromptedwomentopay closerattentiontowhenthey mightbepregnantandvisit clinicsearlier,researchersand providerssay.WomenarecallingtheFeministWomen’s HealthCenteriftheirperiodis evenonedaylateortheyhave thefirsthintofearlypregnancysymptomslikenausea, clinicstafferssaid.Anincrease inthenumberofpatients comingfromstateswithtotal bansalsohashelpedkeep numbersatclinicsup.

onWednesday,givingDemocratsanotheropportunityto castRepublicansasextremeon abortion.

“Acrossournation,wewitnessafull-onassault,stateby state,onreproductivefreedom. Andunderstandwho’sto blame.FormerPresidentDonaldTrumpdidthis,”VicePresidentKamalaHarrissaid WednesdayinJacksonville,Fla.

Trumpinaninterviewwith Timemagazinepublishedon Tuesdaydidn’tdirectlyanswer ifhewouldvetoanational abortionbanaspresident,sayinghedidn’tthinkabillwould gettothepresident’sdesk, adding:“It’saboutstates’ rights.”Askedifhewassupportiveofstatespunishing womenwhoseekabortionsor monitoringpregnanciestotry topreventabortions,hesaid thosedecisionsshouldbewith thestates.

Arizonaisseenasoneof themostimportantstates

aheadoftheNovemberelectionandvotersherecoulddecidewhocontrolstheWhite Houseandbothchambersof Congress.ThestateSenateand stateHouse,bothcurrently controlledbyRepublicans,are alsoseenashighlycompetitive.

Thedecisiontobringback theneartotalbanonabortion wasseenashelpfulforDemocratswhoareondefenseon othermajorissuesinthestate suchastheeconomyandimmigration. Bolickinalengthyfloor speechonWednesdaysaidshe opposedabortionand“wanted toprotectmorebabies,”which waswhyshewasvotingtoreturntothe15-weekban.Some Republicanshavearguedthat returningthestatetoa15weekrestrictioncouldhelp bluntthechancesoftheballot measurepassing.

Republicansinthestatelegislaturearealsoconsidering

gettingtheirownmorerestrictiveballotinitiativesonthe ballot,includingonemeasure thatwouldallowforabortion untilthebeginningofthe15th week,accordingtoastrategy memoreviewedbyTheWall StreetJournallastmonth. MostRepublicansinthe stateSenatewantedtokeep the160-year-oldban.“The epitomeofdelusionissayingI ampro-lifeyetvotingtorepeal anabortionban,”Sen.Anthony Kern,aRepublicanwhoopposedtherepeal,saidonthe Senatefloor. TrumpandKariLake,the expectedGOPSenatecandidate,bothhavesaidtheoutrightbangoestoofarand calledonthelegislaturetoremoveit.ButLakehasalsosaid inaninterviewwiththeIdaho DispatchinAprilthatgiven theattorneygeneralhadsaid shewouldn’tenforceit,“we don’thavethatlawasmuchas manyofuswishwedid.”

awayafteranultrasoundrevealsitistoolate.

Ifpatientstakeabortion pillsandtheydon’twork— whichoccasionallyhappens— itissometimestoolatetotry again,Georgiaproviderssay.

“Wecan’tprovidecareand thatcanbereallyhard,”said LisaHaddad,anAtlantaobstetrician-gynecologist.

Overall,thenumberof abortionclinicsinGeorgiaincreasedslightlyinthecouple ofyearssincethebantookeffect,accordingtoadatabase runbytheUniversityofCalifornia,SanFrancisco.

Thebanoffersatightand unpredictablewindowofjusta coupleofweeksformost womentogetanappointment afterbeingabletolearnthey arepregnant.Somepatients taketimeoffwork,findchild careandprocurefundsforthe procedureonlytobeturned

Mostpatientsattheclinic takemedicationtoendtheir pregnancies,thoughthecenter stilldoesperformanumberof surgicalprocedures.

Insomecircumstances,the Georgialawhaspushed womentocontinuepregnanciestheymightotherwisehave ended.NeeshaLewisfoundout shewaspregnantshortlyafter thesix-weeklawtookeffect. Sheknewnothingaboutthe newrestrictionsandlearnedit wastoolateforanabortion appointment.

Lewis,33yearsoldand raisingfourchildrenasasinglemother,saidfriendsand familypushedhertotravelto aclinicoutofstate.Shehas hadabortionspreviouslybut saidthelawputuparoadblockthathelpedherdecideto keepthepregnancy. Formonths,shewrestled withwhethershewouldkeep thechildherselfandwenttoan adoptionagency,whereshe wrotedownthelifesheenvisionedforthesonshewould soondeliver:bothamotherand afather,maybeevenabackyard andadog.Whenshefounda Floridafamilywhocheckedall thoseboxes,shemadeupher mindonadoption. Lewishadanemergency caesareanundergeneralanesthesia.Whenshewokeupafter theordeal,thebaby’snewfatherwascradlinghimandsayinghowproudhewasofher son.“I’msothankfulIdidnot gowithOptionA,”shesaid.

favorablereviewsuponits publicationin1982.Hegained renownfortheseriesofnovelsthatwouldbecomethe NewYorkTrilogy.Theseries, comprising“CityofGlass,” “Ghosts”and“TheLocked Room,”isapostmoderntake ondetectivefictionthatexaminesexistentialthemesof identityandknowledge. Thesethemeswouldbeexploredinhissubsequentfiction,particularlyin“Moon Palace,”“Leviathan”and “Timbuktu,”thelatterof whichistoldthroughtheeyes

ofMr.Bones,adogstruggling todealwiththefactthathis masterisdying. His800-pagenovel“432 1,”publishedin2017,wasafinalistfortheBookerPrize. Austeralsowroteanddirectedseveralfilms.Hecollaboratedwithco-directorWayne Wangonthe1995independentfilm“Smoke,”starring HarveyKeitelandWilliam Hurt,aboutaBrooklynsmoke shopanditsdiverseclientele. AusterandWangfollowed withasequel,thelargelyimprovised“BlueintheFace.”

Auster’sownlifewas struckbytragedyin2022 whenhissonDanielfromhis firstmarriagetowriterLydia Davisdiedfromadrugoverdoseafterhewascharged withthedeathofhis10month-olddaughter,Ruby. In2023,Auster’swifeSiri Hustvedtrevealedthather husbandhadbeendiagnosed withcancer.Hepublishedhis finalnovel“Baumgartner,” lastyear.

AusterissurvivedbyHustvedtandtheirdaughterSophie.

GreeneSaysSheWillForce VoteonOustingSpeaker

GOPhard-linerhas faultedJohnsonon governmentfunding, otherkeymeasures

BY LINDSAY WISE AND NATALIE ANDREWS

WASHINGTON—RepublicanRep.MarjorieTaylor Greenesaidshewouldcalla votenextweektooustHouse SpeakerMikeJohnson,marking thelatestchapterinanintrapartystrugglebetweenhardlineconservativesandthe GOP’sgoverningwing.

Greene’sdecisiontomove forwardwiththelong-shoteffort,overmanyRepublicancolleagues’objections,cameafter morethanamonthofholding thethreatovertheleader’s headandpushinghimtoquit.

“Ithinkeverymemberof Congressneedstotakethat vote,”theGeorgialawmaker saidWednesdayatapressconferenceinwhichsheaccused Johnson(R.,La.)ofsellingout hisconservativevaluesand tickedoffaseriesofpurported betrayals.“NextweekIamgoingtobecallingthismotionto vacate,absolutelycallingit,” shesaid.

Greeneandothercritics havefumedoverhowJohnson hasrepeatedlyturnedtoDemocratstohelppasslegislationto avoidgovernmentshutdowns andothercriticalmeasures, suchasa$95billionforeign-aid

lawthatincludedmoneyfor Ukraine,andthereauthorizationofacontentioussurveillancebillcalledtheForeignIntelligenceSurveillanceAct. Johnsonhasrejectedtheefforttopushhimoutandhas saidhedoesn’tplantoresign. Hehasarguedheisdoingthe bestjobhecangivenRepublicans’historicallysmall217-212 majorityanddefendedputting theUkrainebillontheflooras criticaltoprotectingU.S.allies. JohnsonsaidWednesday thatGreene’sdecisiontocall foravoteonthemotiontovacate“iswrongfortheRepublicanconference,wrongfor theinstitution,andwrongfor thecountry.”

Democratsarenowpoisedto sidewithJohnsonratherthan letasmallblocofGOPrebels kickhimout.Thatisachange fromlastyear,whenDemocrats votedalongsideeightGOPrebelstooustthen-SpeakerKevin McCarthy(R.,Calif.).

Democraticleadersmadeit officialTuesday,sayingthey wouldprotectJohnson,citing hisrecentdecisiontoallowa voteontheforeign-aidpackage, whichpassedbothchambersof CongressandPresidentBiden signedintolawlastweek.The announcementpromptedafuriousresponsefromGreeneand herally,Rep.ThomasMassie (R.,Ky.),whosaiditproved JohnsonwasaRepublican speakerinnameonly.

GreenesaidWednesdayshe waseagertotestDemocratson

theirpledgeheadedintothefall elections,whereRepublicans aretryingtoprotectandexpandtheirmajorityinthe House.“Ican’twaittosee DemocratssupportaRepublicanspeaker…aChristianconservative,”shesaid.

Greeneacknowledgedsheis unlikelytosucceedinousting Johnson,whichrequiresamajorityvoteintheHouse,but saidthemovewouldforce lawmakerstogoontherecord. Sheshowedoffa“MUGA”hat toreporters,sayingJohnson wasmoreconcernedwith makingUkrainegreatagain thangettinginlinewithformerPresidentDonaldTrump’s MakeAmericaGreatAgain movement.

Trumphasheldhisfireon Johnson,sayinglastmonth thatthesmallGOPmajorityin theHousewas“notaneasysituationforanyspeaker”and thatJohnsonwas“doingabout asgoodasyou’regoingtodo.” TheTrumpcampaigndidn’trespondtoarequestforcommentonGreene’slatestmove.

Greenetooktheinitialstep inMarchtoforceavoteonremovingJohnsonbyfilingamotiontovacatethechair.Inrecentweeks,MassieandRep. PaulGosar(R.,Ariz.)saidthey wouldsupporthereffort,butno othermembershavecomeon board.ThenextstepforGreene wouldbetocalluptheresolutionandforceavotewithintwo legislativedays,whilehopingin themeantimetobuildmoreRe-

publicansupport. “I’mgoingtochallengemy colleaguestothinkaboutitthis weekend,”Massiesaid.“Are yougoingtoembraceHakeem Jeffries,likeMikeJohnsonhas? Areyougoingtoembracethe uniparty?”

Gosarsaidhewouldprefer Greenehadwaitedtocallup thevote.Buthesaidhewould voteagainsttheexpectedeffort byJohnsonalliestotable,or block,thevote.

Jeffries,theleaderofHouse Democrats,saidWednesday thatRepublicanfrailtiesmeant a“bipartisancoalitionand partnership”wasneededto tameGOPchaosthatwasunderminingCongress.“Marjorie TaylorGreeneisthestarofthe show,theshowiscalledRepublicansGoneWild,”hesaid.

Republicans’tenuouscontrol oftheHousehascausedheadachessincethestartofthecurrentCongressinJanuary2023. IttookMcCarthy15roundsof votingtobeelectedspeaker, onlytobeoustedinOctober, settingoffthreeweeksofparalysisbeforeJohnsonwaspicked asacompromisecandidate. MostHouseRepublicans,bitter aboutthatexperience,nowopposetheefforttoremoveJohnsonandwarnitcouldhurtthe partyinanelectionyear.

“Ohenoughalready.Honestly,thecurtainneedstocome down,”saidRep.MarcMolinaro (R.,N.Y.)aboutGreene’sefforts. —VivianSalama contributedtothisarticle.

BY JOHN MCCORMICK

WAUKESHA,Wis.—Donald Trump,sprungfromhisManhattanhush-moneytrialthe dayafterbeingheldincontemptofcourtforviolatinga gagorder,spentWednesday onthepresidentialcampaign trailwherehedisparagedthe economyandthecourtproceedingshefaces.

Theformerpresident mostlystucktoissueslikeinflationandtaxesduringthe first55minutesofhis90-minuteappearanceinsuburban Milwaukee,beforepivotingto alengthycriticismofthefour criminalindictmentshefaces. HeheldasecondrallyWednesdayeveninginMichigan,anotherbattlegroundstate.

“IfIwasn’trunning,I wouldn’tbefacingmoreindictmentsthanthegreatAlphonse Capone,”Trumpsaidinareferencetothenotoriousmobfigure.“Neverforgetourenemies wanttotakeawaymyfreedom becauseIwillneverletthem takeawayyourfreedom.”

ThepresumptiveRepublicannominee—andthefirst formerU.S.presidenttofacea criminaltrial—notedthatthe juryhenowfacesisfroma heavilyDemocraticjurisdictionandsaidtheproceedings arebeingrunbya“crooked judge.”Underthetermsofthe NewYorkgagorder,Trumpis barredfrommakingstatementsaboutlikelywitnesses, prosecutors,courtstaffor theirfamilies,butheisallowedtocriticizethejudge.

ChristineConsiglero,a66year-oldrallyattendeeanda formercustomer-service workerfromNewBerlin,Wis., saidshethinksTrumpisbeing unfairlyprosecuted.

“Theyarejusthounding himtogivehimnegativepublicity,”saidConsiglero.“Idon’t alwaysagreewithhispersonality,butIdoontheissues.”

Trumpalsoreturnedtothe

eventsofJan.6,2021,disputingclaimsthathe“attacked” aSecretServiceagentinthe frontofhisvehiclebecausehe wantedtobedriventothe U.S.Capitol.“It’snotmy deal,”hesaid.“I’malover, notafighter.” Ifelected,Trumppromised toleadthe“largestdeportation”inthenation’shistory. “We’regoingtostoptheinvasion,”hesaid.

Theformerpresidentspent asignificantamountoftime talkingaboutinflation,which remainsstubbornlyhigh. “We’reinstagflationright now,”hesaid,usingaterm thatreferstoslowgrowth amidhighinflation.

Trumpcriticizedpro-PalestinianprotestersatColumbia UniversityinNewYorkand praisedtherapidabilityofthe NewYorkPoliceDepartment toclearoutabuildingand otherareasthathadbeenoccupied,callingita“beautiful thingtowatch.” Aftersayingthecitywas “undersiegelastnight,”he alsocomplainedaboutthe school’sleadershipandsaid theinstitution’sreputation hadbeenharmed. AthiseveningrallyinFreeland,Mich.,Trumpsaid:“I gottadotwoofthesethingsa day—youknowwhy?Because I’minNewYorkalldaywith theBidentrial.”Hedescribed thetrialas“fake.”

“Theydoittotryandtake yourpowersaway,takeyour candidateawaywho’skilling theminthepolls,”headded, asthecrowdbooed.

PresidentBidenspent WednesdayinWashington, withhismaincampaignactivityscheduledtobeanevening fundraiseratahotel.Vice PresidentKamalaHarrisspent thedayinFlorida—wherea six-weekabortionbanjust tookeffect—blamingTrump fornewabortionrestrictions instatesaroundthecountry.

need,thepeoplesaid,includingSaudiArabia’sPublicInvestmentFundandmanufacturingcompaniesinTurkey, IndiaandSouthKorea. AspokesmanforEmbraer saidthatwhilethecompany “certainlyhasthecapabilityto developanewnarrow-body aircraft,”itdoesn’thaveany plansforasizablenewproject atthistimeandisfocusedon sellingitsexistingmodels. Embraer’sambitionshave firmedinrecentmonthswith Boeinginturmoilaftera737 MAXjetoperatedbyAlaska Airlineslostafuselagepanel midflight,thepeoplesaid. TheaccidentpromptedU.S. air-safetyagenciestoputlimitsonBoeing’smanufacturing facilitiesandledtoanexecutiveshake-up,includingthe resignationofChiefExecutive DavidCalhounbytheendof theyear.

Boeingdoesn’thaveafirm planforhowitwillreplaceits decades-old737line.Thecompanyhassaiditcouldlaunch anewaircraftinthemiddleof thenextdecade,similarto Airbus’scurrenttimeline,but Calhounhassincesaidthata decisionwillfalltoafuture BoeingCEO. Newaircraftprogramsrequirelongleadtimestodevelop,preparesupplychains

businessfouryearsago.Embraerisstillawaitingfindings fromanarbitrationitfiledat theInternationalChamberof CommerceafterBoeingabandonedthedeal.

“I’vetalkedtoeveryoneat BoeingthatIcanpossiblyaddress,andthemessageisthe same:Getyouracttogether,” AmericanAirlinesCEORobert Isom—oneofEmbraer’sbiggestcustomers—saidonacall lastweek.

HelatersaidthatEmbraer comparativelyhas“delivered dayinandday outthroughout thepandemic nomatterthe concernsof theirsupply chain”andthat othermanufacturers“can learnalotfrom them.”

theE2-195regionaljetwhich enteredservicein2018,seats amaximumof146passengers comparedwithamaximumof 172seatsonBoeing’ssmallest narrow-body,the737MAX7. Still,theBraziliancompany coulduseaspectsofthedesignandtechnologyfromthe E2asthebasisforthenew aircraft,helpingtosubsidize someofthebillionsofcostsif itwentaheadwithanall-new design.

Newaircraft programs requirelong leadtimesto develop.

Manynew aircraftprogramsdon’tsucceed.MitsubishiHeavyIndustries,forexample,in2023pulledtheplug ona16-yearprojecttodevelopanall-newregionaljet. In2017,Bombardierwas pushedintohandingitslossmakingCSeriesaircraftprogramtoAirbusfor$1after BoeingpetitionedtheU.S. CommerceDepartmentto placeheavyimportdutieson thenewmodel. Embraeritselfdoesn’tcurrentlymanufactureanaircraft thatmatchesthesizeand rangeofBoeing’sorAirbus’s popularnarrow-bodies—jets thataredefinedbytheirsingleaisleandwhichformthe backboneoftheglobalaviationsector.Itslargestmodel,

Embraerisstillarelatively smallplayerintheworldof aircraftmanufacturingcomparedwith BoeingandAirbus.Thecompanylastyear delivered181 aircraft,with Boeingdelivering528and Airbusdelivering735jetsto customers. Airbushassaiditisprogressingtowardbringingits ownnewnarrow-bodytothe marketinthesecondhalfof the2030s. TheEuropeanplanemaker, theworld’sbiggest,hasbeen exploringmultipleoptionsfor upgradesthatcouldboostfuel efficiencyby20%to25%comparedwiththecurrent A320neomodel,includingnew engineandwingdesigns.The companyhasalsolongtouted thepossibilityofdevelopinga stretchedversionofits A220—therenamedCSeries aircraftitpickedupfrom Bombardierin2017. —SummerSaid andDougCameron contributedtothisarticle.

U.S.NEWS

Schools,PoliceCrackDownonProtests

Officialssayoutsiders havejoinedstudents andintensifiedtheir demonstrations

Hundredsofprotesters werearrestedacrossseveral campuses,asuniversitiesand policecrackdownonwhat theysayareoutsidersescalatingpro-Palestiniandemonstrations.

By ErinAilworth, AlyssaLukpat and JosephPisani

TheManhattandistrictattorney’sofficesaidabout280 peoplewerearrestedatColumbiaUniversityandCity CollegeofNewYork.Later Wednesday,FordhamUniversitycalledontheNewYork PoliceDepartmenttoclearan encampmentofsome30peopleinabuildingonitsLincoln Centercampus.TheNYPD saiditarrestedthosewhorefusedtodisperse.

TheUniversityofWisconsin-Madisonsaidpolicedispersedanencampmentandarrested34people.Tulane UniversityinNewOrleanssaid 14protesterswerearrested Wednesday,inadditiontothe sixarrestedadayearlier.

Universitiesandpolice havesaidpeopleunaffiliated withtheschoolshavejoined orintensifiedthedemonstrationsprotestingtheIsraelHamaswar.

NewYorkUniversity’s presidentsaidthatof133 peoplearrestedthereonApril 22,68weren’tcurrentstudents,facultyorstaff.Tulane saidtheoverwhelmingmajorityoftheprotesterswereoutsiders.NewYorkCityMayor EricAdamssaidoutsideagitatorswereco-optingtheprotestmovementatColumbia. TheUniversityofTexasat Austinsaid45ofthe79peoplearrestedoncampuson Mondayweren’tassociated withtheschool. “Thesenumbersvalidateour

Officersclashwithdemonstratorsastheyworktoremove anencampmentattheUniversityofWisconsin-Madison.

cratsand21Republicansvoting “no.”ThelegislationwouldrequiretheDepartmentofEducationtousetheInternational HolocaustRemembranceAlliance’sworkingdefinitionofantisemitismwhenenforcingfederalantidiscriminationlaws. TheIHRAdefinition,which includes“drawingcomparisons ofcontemporaryIsraelipolicy tothatoftheNazis”and“denyingtheJewishpeopletheir righttoself-determination,” hasbeencriticizedbygroups suchastheAmericanCivilLibertiesUnionforequatingcriticismoftheIsraeligovernment withantisemitism.

BrownandNorthwestern universitiesreachedagreementswithprotesterstoclear theirencampments.YaleUniversitysaidprotesterslefttheir encampmentTuesdayafterthe schoolthreatenedsuspensions andarrests.

Note:ThroughApril29andincludesrallies,marches,demonstrationsandsimilareventsatcollege andgraduateschoolsandsomedemonstrationsextendedbeyondtheidentifiedcampus.

Source:CrowdCountingConsortium

concernthatmuchofthedisruptiononcampusoverthe pastweekhasbeenorchestratedbypeoplefromoutside theUniversity,”UTAustinsaid. RepresentativesforprotestersatColumbiaandCityCollegeofNewYorksaid Wednesdaythatnonstudents

whojoineddemonstrationsat theirschoolswereactually membersofthecommunity, includingteachersandalumni. AttheUniversityofCalifornia,LosAngeles,dozensof counterprotestersgatheredat apro-Palestinianencampment’sperimeteraround11

UniversityLeadersTryRange OfTacticsonDemonstrators

BY MELISSA KORN AND DOUGLAS BELKIN

Anencampmentofpro-Palestinianstudentsdisbandedat BrownUniversitywithlittle fanfareonTuesday.

Meanwhile,attheUniversityofCalifornia,LosAngeles, onWednesdaymorningsuch protestsdevolvedintofistfightsandfireworks.AtColumbiaUniversityonTuesday night,policestormedanadministrationbuildingthathad beenbarricadedandfrogmarchedoutscoresofstudentswiththeirwristsziptiedbehindtheirbacks. Universityleadersarenavigatingthemosttumultuous waveofstudentdemonstrationssincetheVietnamWar withvariedstrategies—and variedresults.Theyarehaving toweighinputfromahostof constituencies,includingpoliticians,donorsandparents,all whileoperatingintheshadows oftheirspecificschools’protest history.Studentsafetyandfreespeechstandardsareatstake. Soarethewobblingbrandsof centuries-oldinstitutions. Leadingauniversity“isa lotliketapdancingonasurfboardinthemiddleofthe wavesbecausethereareso manystakeholdersandso manyconstituencies,”said TedMitchell, presidentofthe American CouncilonEducation.“Today, we’refacing thatcacophony beingraised to…anewand reallyacute level.” Inrecent days,police havearrestedhundredsof protestersatschoolsincluding theUniversityofTexasat Austin,EmoryUniversity,City CollegeofNewYorkandthe UniversityofArizona.Insome cases,policewerecalledinafternegotiationsorthreatsof academicdisciplinefailed. Schoolsaretakingsuchdifferentapproachestoprotesters partlybecausetheyareoperat-

inginalegalgrayareathat fallsattheintersectionoftwo setsofstudentrights:theright tospeakfreelyandtherightto pursueaneducationfreeofharassment,saidErwinChemerinsky,deanofthelawschoolat theUniversityofCalifornia, Berkeley.Studentsenjoyfreespeechprotections,butuniversitiesareobligatedtostepinif behaviorcrossesintoharassment.Wheretodrawthatline isn’talwaysclear. GregLukianoff,president andchiefexecutiveofthe FoundationforIndividual RightsandExpression,afreespeechadvocacygroup,said “universitieshaven’tstoodup forfreespeech consistently.”

Lukianoff saidtheschools failtomakeappropriatedistinctionsbetweenprotected speechlikeprotests,actsof civildisobedienceforwhich studentsmight expecttobedisciplinedand moreegregiousactionslikeviolenceorthreatsofviolence. Administratorshaveoften shiftedplansascircumstances onthegroundchanged. OfficialsatUCLAdidn’tinterveneimmediatelywhen protesterssetupanencampmentlatelastweekoutsidea campusbuilding,RoyceHall. OnSunday,spokeswoman

MaryOsakosaidUniversityof Californiasystempolicydirectsthecampusnottorequestpoliceinvolvementpreemptively,“andonlyif absolutelynecessarytoprotectthephysicalsafetyofour campuscommunity.”

Asmorestudentscomplainedaboutbeingharassed whiletryingtomaketheir waypasttheencampmentand asagatheringofcounter-protestersgrewmoreaggressive, theschooltriedanewtack. Policewerecalledinlate Tuesdaytobreakupbrawls amongprotesters,andUCLA canceledWednesdayclasses. AtColumbia,policeswept anencampmenttwoweeks ago,arrestingmorethan100 students.PresidentMinouche Shafikfacedharshcriticismfor whatsomecalledanoverlyaggressiveresponsetothetent citythat,participantssaid,remainedpeaceful.Theencampmentreappearedadaylater. Administratorsthenmet withnegotiatorsfromtheencampmentovereightdays,but saidtheyultimatelyreachedan impasse.Policeenteredcampus Tuesdaynight,arrestingmore than100peopleafteragroup ofprotesterstookoveranadministrativebuilding. Schoolleadersaren’tjust dealingwithstudentsatthis point.Facultyandstaffhave joinedsomeencampmentsand beenarrested.Outsidersare alsobelievedtobehelpingin coordinatingdemonstrations.

p.m.Tuesdayandtensionsescalatedquickly,accordingto videofromlocalTVnewsand witnesses.Thecounterprotestersdismantledmetalbarricadesaroundtheencampment,insomecasesthrowing thematthepro-Palestinian demonstrators. Videofromthescene showedasmallnumberofsecurityofficerspresentaround 11:15whowereoutnumbered andleftshortlyafter.LosAngelesPoliceDepartmentofficers arrivedtoassistcampuspolice atabout2a.m.,accordingto tweetsfromtheagency,and eventuallycalmedthesituation.

TaiMin,aUCLAsophomore whohasspenttimeintheproPalestinianencampment,said conflictswithcounterprotestersoccurredforseveralnights inarowandhave“beenescalatingandescalating.” Wednesdaymorning,campus wasquietaftertheuniversity

canceledclassesfortheday. CaliforniaGov.Gavin NewsomonWednesdaysaid thedelayedlaw-enforcement responsewas“unacceptable anditdemandsanswers.”

ManyJewishstudentshave saidtheyfeelunsafeamidrisingantisemitismwhileprotestershavesaidtheirdemonstrationsarepeaceful.Protesters arecallingontheiruniversities todivestfromcompaniesdoingbusinesswithIsrael.

WhiteHousepresssecretaryKarineJean-Pierresaid PresidentBidenismonitoring thecampusprotestsandthe policeresponsestothem.“EveryAmericanhastherightto peacefullyprotest,”shesaid. “Seizingbuildings,takingover buildingsisnotpeacefulprotesting.”

TheHouseofRepresentativesvoted320-91Wednesday topasstheAntisemitism AwarenessAct,with70Demo-

AtColumbia,policeon TuesdaynightraidedHamilton Hall,acampusbuildingstudentshadbarricadedwith vendingmachinesandsofas. ByWednesdayafternoon, therewerefewsignsleftofthe chaosoutdoorssaveforsome strayPalestinianflags. ColumbiaPresidentMinoucheShafikhasaskedthe NYPDtomaintainapresence oncampusuntilMay17,two daysaftercommencement. Columbiasaidtherewere noinjuriesduringthearrests whenHamiltonwasraided,althoughprotestersdisputed that.UW-Madisonsaidastate trooperwasinjuredafterbeingstruckintheheadbya protesterwithaskateboard.

—AlyssaChoiniere,Jon Kamp,WillHorner,Annie Linskey,TalalAnsari, ChristineMai-Ducand SuryatapaBhattacharya contributedtothisarticle.

WatchaVideo

Scanhereto seeavideoon theclashesat theUCLA encampment.

WORLDNEWS

BlinkenPushesCease-FireinIsraelVisit

Secretaryofstate meetsNetanyahu, whoisbettersetto resistU.S.pressure

TELAVIV—Secretaryof StateAntonyBlinkentraveled toIsraeltopressforatemporarycease-firedealinthe GazaStripthattheBidenad-

By RoryJones Carrie Keller-Lynn and MichaelR.Gordon

ministrationhopescoulddevelopintoamore-durable peace,andstresseditsconcernsaboutapossibleIsraeli offensiveinthetownofRafah.

BlinkensaidafterameetingwithIsraeliPrimeMinister BenjaminNetanyahuthathe toldIsraeliofficialsatemporarytrucewould“giveus somethingtobuildon.”And heputthefocusonHamas, sayingthegroupshouldtake thedeal.“Hamashastodecide,”Blinkensaid.

Israelhassaiditisreadyto sendadelegationtoCairo, whereArabmediatorsthis weekpresentedHamaswitha freshplantopausethefightinginexchangeforfreeing hostagesitholdsintheenclave.Theproposalisseenas thelastchancetodelayanIsraelioffensiveonRafah,which Netanyahuhassaidisneeded todestroyHamas’sremaining militaryunitsandcomplete

theaimsofthewar. Netanyahuisbetterpositionedtoresistpressurefrom Washingtonthanhewasseveralweeksago.InearlyApril, NetanyahuwaspubliclyrebukedbytheBidenadministrationoverIsrael’skillingof sevenaidworkersinwhatit saidwasamistakethatviolateditsrulesofengagement.

U.S.SenateMajorityLeader ChuckSchumerhadcalledpubliclyfortheprimeministerto bereplaced.AndNetanyahu’s pollnumbersweresuffering. Now,hispollnumbershave stabilizedinthewakeofIran’s drone-and-missileattackonIsraelisoilanditistheBidenadministrationthatisunder pressure,asprotestsagainst Israel’swarintheGazaStrip spreadacrossU.S.collegecampuses.BidenneedstheIsraeli leadertodeliverahaltinfightingthatcouldeasedomestic pressureovertheconflict. Atthesametime,Netanyahuremainsinaverytight spot.Membersofhissmall warcabinetarepushinghim tocutadealtofreehostages,

BY ANAT PELED AND JARED MALSIN

BEERSHEBA,Israel—When commandosretrievedRon Sherman’sbodyfromthetunnelunderGaza,Israeliofficials toldthe19-year-oldsoldier’s motherthathehaddiedatthe handsofhisHamascaptors. Atthetime,inmid-December,MaayanShermanhadno reasontoquestiontheiraccountofherson’sdeath.

Doubtsbegantoemergein theweeksafterwardwhena pathologist’sreportfoundthe soldier’sremainsshowedno signsoftrauma. MaayanShermanandthe motherofanothersoldier,Nik Beizer,thesameageandkilled atthesametime,begantheir owninvestigation.Theycalled thefamiliesofotherhostages, scannedHamassocialmedia andpepperedIsraeliofficials withquestions.Theirpersistencetookthemtotheoffices ofthemilitary’shostage-intelligencechiefinTelAvivand securedmeetingswithother seniormilitaryofficialsand eventhepresident.

Italsoextractedanadmissionfromtwoseniormilitary

officialsthatanIsraeliairstriketargetingaHamascommanderinNovemberhad killedtheirsons.

“Wehavetofindoutthe truthabouteverything,”Shermansaid.“Evenifthetruth is,‘Wehadtokillthem.’”

Israel’smilitaryofficialshaven’tpubliclyacknowledged thatthemendiedinanIsraeli airstrikeinnorthernGazain November.Theysaytheyhave givenalltheinformationthey havetothesoldiers’families. Inresponsetoquestionsfrom TheWallStreetJournalabout thedeathofthesoldiers,Israel’smilitarysaidithad“no informationaboutthepresenceofhostagesinthetunnel ofthecommanderofthe northerndivisionofHamas,at thetimeoftheattack.”

TheIsraelimilitaryisincreasinglyconfrontingagrim reality:Someofthehostages inGazahavebeenkilledinits militaryoffensivethere againstHamas.TheU.S.governmentbelievessomeof thoseheldintheenclavehave diedinIsraeliairstrikes,a personfamiliarwithAmerican intelligencesaid.Sometop Hamasleadersinthetunnels

HamashasexpressedconcernthatstatementsbyIsraeli officialsinrecentdaysindicatethattheyexpecttocontinuemilitaryoperations,despiteproposingaprolonged periodofcalmfortherelease ofhostages,mediatorssaid.

TheWhiteHousehasincreasinglyviewedNetanyahu asthemainobstacletoits broadergoalsintheGazawar. Evenso,theU.S.hasnochoice otherthantoworkwithNetanyahu,saidYossiShain,politicalscientistatTelAviv UniversityandaformerIsraeli parliamentarian. NetanyahualsocouldrequireU.S.supporttobatoff potentialwar-crimescharges againsttopIsraeliofficials, whichtheInternationalCriminalCourtiscurrentlyweighing.IsraeliPresidentIsaac Herzograisedtheissuewith BlinkenonWednesday.

TheU.S.hassaiditcan’t supportanIsraelimilitaryoperationinRafahwithouta plantomanagetheroughly onemillionPalestinianrefugeesshelteringthere.

Still,theU.S.alsoappears readytoblameHamasifa cease-firefallsapartandIsrael movesaheadwithanoperation. —SummerSaid contributedtothisarticle.

butministersontheright wingofhisbroadercoalition arethreateningtobringdown hisgovernmentifhereaches anagreementthatpreventsa Rafahoperation. Arabmediatorshavebeen tryingtobringIsraeland Hamastogethertoagreetoa dealdespiteseeminglycontradictoryaimsfromthetwo sides.Hamaswantsaceasefiretoincludelanguageabout apermanentendtofighting, whileNetanyahuhassaidhe won’tgiveupthefreedomto destroythegroupmilitarily.

IsraeliMothersSeekTruthonHowSonsDiedinWar

underGazaaresurrounding themselveswithhostages,Israeliofficialssaid. Thisaccountisbasedon dozensofinterviewswithhostages’families,freedhostages, currentandformerIsraeliand U.S.officials,andforensicand militaryexperts,aswellasa reviewofofficialdocuments surroundingthedeathof Shermanandotherhostages. Thearmy’sleaderssaymilitarypressurewillbring Hamastothetableandunlock hostagenegotiations.Butthe strategyhascomeatthecost ofsignificantcollateraldamage.Morethan34,000people havebeenkilledinGazasince thestartofthewar,mostof themcivilians,Palestinianofficialssay.Thefiguredoesn’t specifyhowmanywerecombatants.Amongthedeadfrom thewarinGazaarealsosome ofthoseheldhostagethere, includingsomekilledbyIsrael’sownforces.

Israeliofficialssaytheair forceconsultsintelligence aboutthewhereaboutsofhostagesinGazawhenitplans airstrikes,partofitsworkto avoidciviliancasualties,both PalestinianandIsraeli,during thewar,Israeliofficialssaid.

Israelhasofficiallydeclared46ofthemorethan 240hostagestakenonOct.7 dead,buthasonlyretrieved thebodiesofadozenofthem. SomeIsraeliandAmericanofficialsprivatelyestimatethat thenumberisfarhigher.Most ofthefatalitiesresultedfrom theHamas-ledattacksonOct. 7,includingsomewhowere killedbeforebeingbrought intoGaza,officialsandIsraeli healthauthoritiessaid.

Aroundthetimethatthe bodiesofShermanandBeizer wereretrievedfromGaza,Israelitroopsshotandkilled threepeoplewhoescapedtheir captors,havingmistakenthe hostagesformilitants.ThemilitarysaidinJanuarythatanairstrikehittargetsclosetotwo hostageswhowerelaterdeclareddead.InApril,theIsraeli militarysaidthatinthechaos ofHamas’sattacksonOct.7,its forcesstruckacarcarrying hostages,killingEfratKatz,a 68-year-oldIsraeliwoman. Otherfamiliesofdeadhostagesarestillsearchingfor answersandpublicacknowledgmentsofwhathashappenedtotheirlovedones sincetheyweretaken.

‘Byemom’ ShermanworkedfortheIsraelimilitaryofficethatdeals withcivilianaffairsinGaza. Hamasgunmenseizedhim andBeizerfromasmallmilitarybasejustnorthofthe GazaborderduringtheOct.7 attacksthatIsraeliauthorities saidleftabout1,200people dead,mostofthemcivilians.

KatyaBeizersitswithsketchesofherlatesonNikatherhomeinBeersheba,Israel.

Hidinginashelterinsidethe baseduringtheassault,Shermanreachedouttohismother asthegunfiregrewcloser.

“Byemom.Iloveyouguys,” Shermantextedhismotherat 7:12a.m.onOct.7.“They’re here,thisisit.It’sover.”

Thencamethefirstindicationthatthemenhadsurvived.Avideothatsurfaced laterthatdayshowedHamas militantsforciblydragging ShermanandBeizer,who workedinarmylogistics, throughagapintheconcrete wallintoGaza.

Thekidnappingbegan monthsinwhichbothmothers livedinastateofsleepless uncertainty.Theyknewlittle abouttheirsons’fate.They fearedHamas’sbrutalityand thedangersof Israel’sown militaryoffensiveinGaza.

OnNov.5, theIsraelimilitarytoldthe pair’sfamilies thatofficials hadreceiveda signthatboth menwerealive.

ingresumedaweeklaterwithoutanagreementtoreleaseIsraelisoldiersheldinGaza,for whomHamasisdemandingthe releaseofPalestiniansserving lifesentencesinIsraelijails.

Agrimknock

OnDec.15,Israelimilitary officersknockedonthedoors ofBeizer’sandSherman’s homestoinformthemthat theirsonshadbeenmurdered inHamascaptivity.Athird hostage,theFrench-IsraelicitizenEliaToledano,whohad beenkidnappedfromtheNova musicfestivalonOct.7,was alsofounddeadinthesame tunnelundernorthernGaza, militaryofficialssaid.

Shermanturneddownanofferofafullautopsy,hopingto getthefuneral overwith.

Officials continuedtosay publiclythatthe causecouldn’t bedetermined.

“Iwasalwaysafraidoftheairstrikes,” saidBeizer’smother,Katya Beizer.“Iaskedaboutthisin everymeetingthatIhad.‘How doyouknowyouarenot harmingthehostages?’”she sayssheaskedIsraeliofficials.

Inmid-November,military officialsaskedthemothersto provideDNAsamples.Officials alsoaskedaboutthemen’s identifyingtattoos,scarsand birthmarks.“Iunderstood somethingwaswrong,” MaayanShermansaid.

Laterthatmonth,Israel agreedtoacease-firedealwith Hamasinwhichthemilitants freedjustover100hostagesin returnforPalestinianprisoners.Nomilitary-agemenwere includedinthedeal.Thefight-

“Ididn’t wanttoknow whatHamas didtohim,”she said. Beizer wantedtoknow exactlyhowher sonhaddied. Thearmyhadn’tdetermined that,theofficerssaid.She electedforanautopsytotry tofindout.

InJanuary,theheadofthe Israelimilitary’s551stBrigade,whichcarriedoutthe mid-Decemberoperationthat retrievedthebodiesofthe threehostagesfromGaza,visitedthehomesofbothmothers.Hebroughtwithhimapathologist’sreport.The military,hesaid,couldn’trule outthattheyhadbeenkilled inanIsraeliairstrike.

Thenewssentthetwo womenonafranticsearchfor answers.Afterweeksofpressureonthemilitary,twosenior Israelimilitaryofficialstold thewomenthatanIsraeliair-

strikewasresponsibleforthe deaths.Thegasesreleasedbya bombexplodinginanearby tunnellikelysuffocatedthem, oneofficialtoldSherman.

Oneoftheofficials,Maj.Gen. NitzanAlon,theIsraeliofficer inchargeofhostageintelligence,acknowledgedtothe mothersinseparatemeetings inhisofficeontheedgeofTel Avivthattheirsonshadbeen killedas“asecondaryresult”of anIsraeliairstrike.Themilitary didn’tknowhostageswerein thetunnelwhenitlaunchedthe strike,Alonsaid.Theattackhad targetedandkilledaHamas leader,AhmedGhandour,the commanderofthegroup’smilitarywinginnorthernGaza.The otherofficial,themilitary’stop spokesman,DanielHagari,also confirmedtothemthatanairstrikewasthecauseofdeath. Shermanthoughtthemilitaryhadfinallyownedthemistake.Butinpublic,Israeliofficialscontinuedtosaythecause ofthesoldiers’deathscouldn’t bedetermined.Thefamiliesare stillpressingthegovernment tomakeitsfindingspublic. Israelimilitaryofficialstold thefamiliestheyarewaiting fortheresultsofatoxicology report,theirfamiliessaid.The Israelimilitarysaiditsrepresentativeshavegiventhefamiliesalltheverifiedinformationithas. Shermansaysshefeelsbetrayedbyhergovernment.“If youthinkabouttheworstcasescenarioforkillingsomebody’schild,Ithinkthisisthe worstoftheworst,”shesaid. Beizersaysshewantsher son’sdeathinvestigated,becauseshefeelsthegovernment’sactionsputthehostages atrisk.“Iunderstandthat whatIamdoingnowwon’t bringmysonback,unfortunately,butIwanttosomehow preventthenextincident.” —NancyA.Youssef contributedtothisarticle.

WORLDNEWS

ElectionBillRanklesGeorgia

Legislationisseen asaRussianployto weakentiesbetween ex-Sovietstate,EU

BY ANN M SIMMONS

Proposalsforarestrictive newpolitical-fundinglawhave setoffastorminGeorgia, triggeringdaysofstreetprotestsfromgovernmentopponentswhosayitrepresents Russia’slatestattempttoexportitslegalstandardsto countriesthatmadeupthe oldSovietUnionandareinsteadurgingadecisivebreak withMoscow.

Policeusedteargasandwatercannonstodisperseprotests Tuesdaynight,andtensionsremainedhighonWednesdayas Parliamentdiscussedabillrequiringpoliticalorcivilgroups thatreceiveafifthoftheir fundingfromabroadbelabeled as“foreignagents.”

Russiainrecentyearshas systematicallyusedasimilar lawtosidelineandstigmatize oppositionandcivil-society groups.Politicalanalystsin Tbilisihavewarnedthatthe rulingpro-MoscowGeorgian Dreampartyanditssupporters arenowmovinginasimilarly authoritariandirectiontoalign themselvesmorecloselytoRussianPresidentVladimirPutin.

Thebillthreatensviolators withsignificantfinesand placesGeorgia’sgovernment atageopoliticalcrossroads— simultaneouslyseekingapath towardjoiningtheEuropean Unionwhilealsomanaging Russia’sattemptstomaintain influenceinitshistorical backyard,whereStalinwas bornandwhichnowcommandsimportanttraderoutes totheCentralAsiansteppe andacrosstheBlackSea.

ManyGeorgiansarelosing interestinkeepingtieswith Moscowandareincreasingly lookingWest,however.Pro-Europeansentimentishigh,with pollsshowingthatmorethan 80%ofGeorgiansfavorjoining

HAITI

PremierNamed, SparkinganOutcry

Thesurpriseannouncementofanewprimeministeristhreateningtofracture arecentlyinstalledtransitionalcounciltaskedwith choosingnewleadersforthe gang-plaguedcountry. Fourofsevencouncil memberswithvotingpowers saidtheyhadchosenFritz Bélizaire,whoservedas sportsministerduringthe secondpresidencyofRené Prévalfrom2006to2011,as primeminister,takingmany Haitiansaback.Themembers whoopposeBélizaireare weighingoptionsincluding resigningfromthecouncil.

Apersonwithdirectknowledgeofthesituationsaidthe council’spoliticalaccordhad beenviolatedbytheunexpectedmoveandthatsome councilmembersareconsideringotherchoicesforpremier. Morethan2,500people werekilledorinjuredinHaiti inthefirstthreemonthsof 2024,theUnitedNationssaid.

—AssociatedPress

theEU.TheformerSovietrepubliclostroughlyafifthofits territorytoMoscow-backed separatistsinafive-daywarin 2008.Russiaiseagertoensure Georgiaremainsinitsorbit, someanalystssaid.

Asaresult,thelegislation isfacingabumpyrideinParliament,whereitneedsto passthreereadingstobecome law.Late Wednesday,the billpassedits secondreading, afterlawmakersfailedto completeavote thedaybefore.

Georgian PrimeMinister IrakliKobakhidzesaidafinal readingofthe draftlegislationwouldtake placeinacoupleofweeksand thatParliamentwouldthen overrideavetothreatenedby PresidentSalomeZourabichvili,Russiannewsagency TASSreported. Supportersofthebillargue thatitwouldbringtransparencytoforeigninfluencein domesticpolitics.Similarmea-

sureshavebeenadoptedby KazakhstanandKyrgyzstan, bothformerSovietrepublics thatremaininRussia’sorbit.

Butanalystswhofollow Georgianpoliticssaidthat adoptingthelegislationcould hinderthecountry’sprospects ofjoiningtheEU,which grantedGeorgiacandidate statusinDecember.

“Georgia standsatacriticalgeopolitical crossroads,” saidKornely Kakachia,apoliticalscientist atIvaneJavakhishviliTbilisiStateUniversity.“Should itleantoward authoritarian consolidation,itrisksjeopardizingitsEuropeanaspirationsanddemocraticfuture fortheforeseeablefuture.Simultaneously,asGeorgiabecomesmoreauthoritarian,it risksalienatingitselffromthe West,potentiallydrawing closertoRussia,Chinaand otherauthoritarianregimes.” Criticsoftheforeign-agent

WORLDWATCH

CHINA Covid-19Scientist IsLetBackinLab

Thefirstscientisttopublishasequenceofthe Covid-19virusinChinasaid hewasallowedbackintohis labafterhespentdayslocked outside,sittinginprotest.

ZhangYongzhenwrotein anonlinepostonWednesday, justpastmidnight,thatthe medicalcenterthathostshis labhad“tentativelyagreed” toallowhimandhisteamto returnandcontinuetheirresearchfornow.

Zhangwroteinaposton Weibo,aChinesesocial-media platform,thatheisnegotiatingaplantorelocatethelab inawaythatdoesn’tdisrupt histeam’sworkwiththe ShanghaiPublicHealthClinical Center,whichhoststhelab. Zhangandhisteamwere suddenlytoldtheyhadto leavetheirlabforrenovationsonThursday,settingoff thedispute,hesaidinanearlierpost.OnSunday,Zhang beganasit-inprotestoutside hislab.

—AssociatedPress

MEXICO SecretCrematorium

IsFoundinCapital Volunteersearcherssaid theyhavefoundaclandestinecrematoriumontheedge ofMexicoCity. InnorthernMexico,drug cartelsoftenusedrumsfilled withdieselorcausticsubstancestoburnordissolve bodies,buttherehasbeen littleevidenceofthatinMexicoCity.

CeciFlores,aleaderofone ofthegroupsofso-called searchingmothersfrom northernMexico,saidonsocialmedialateTuesdaythat herteamhadfoundbones, burialpitsandIDcards aroundacharredpitonthe outskirtsofthecity.

MexicoCityprosecutors saidtheywereinvestigating thefindtodeterminethenatureoftheremainsfound, andwhethertheywerehuman.Theprosecutor’soffice saiditwasalsoreviewingsecurity-camerafootageand lookingforpossiblewitnesses.

—AssociatedPress

billpointtotheSoviet-era connotationsoftheforeignagentlabelandhowMoscow— whichruledGeorgiauntilthe falloftheSovietUnionin 1991—hasusedthelawtosilenceanyoneconsideredan opponent,includingjournalists andhuman-rightsactivists.

“Russiaisenjoyingthe show,that’sforsure,”said NatalieSabanadze,asenior researchfellowattheRussia andEurasiaProgramatthe BritishthinktankChatham House.“Theonlypowerthat isbenefitingfromthisisdefinitelyRussiabecausethat putsGeorgiainaclearstandoffwithWesternpartners.” Sabanadze,whopreviously servedasheadoftheGeorgian missiontotheEU,addedthat ifGeorgiafailedtoprogresson itspathtoEuropeanintegration,“thereisnostandingin limbo,”shesaid.“Russiatakes over,whetherit’sliterallyor figuratively,buttheRussian influencewillincrease.” KremlinspokesmanDmitry Peskovhascalledattemptsto linktheGeorgianbillonforeignagentswithRussiaabsurd.

BRAZIL AtLeast8People

DieinHeavyRains

HeavyrainsinBrazil’s southernRioGrandedoSul statehavekilledatleast eightpeopleandleft21missingsinceMonday,thecountry’scivil-defenseagencysaid onWednesday. Anadditional11people wereinjuredandmorethan 1,400wereforcedtoleave theirhomesbecauseofdamagecausedbythestorms, theagencyadded.

Operatorsreportedelectricityandwatercutsacross thestate,andofficialsdetailednumerousincidentsof floodedroads,landslidesand collapsedbridgesaswater levelsofriversandstreams rosesharply.

Authoritiesactivatedthe BrazilianAirForcetoassist strandedpeople.Itdeployed twohelicoptersfortherescuemission.

Thedownpourstarted Mondayandwasexpectedto lastthroughFriday,civil-defenseauthoritiessaid.

—AssociatedPress

BY ISABEL COLES

Insideahangartuckedaway inwesternUkraine,dozensof workersinprotectiveclothing moldfiberglassmeshandassemblethepiecesintopotent weapons:long-rangedrones.

Witharangeofupto500 miles,thedronesmadehere aredesignedtomeetsurging demandasUkrainerampsup acampaignofstrikesdeepinsideRussianterritoryinthe thirdyearofthewar.

“There’salotoforderswe stillcan’tfulfill,”theplant ownersaid.

Facingsetbacksonthebattlefield,Ukraineisusinglongrangedronestoreachfarbehindthefrontlinewith Russianforces,hittingoilrefineries,airfieldsandlogistics. Thestrikesaimtosqueeze fuelsuppliestotheRussian militaryanddepriveMoscow ofexportrevenuetofundthe war.Bybringingthewar hometoRussia,Kyivcould alsocompelMoscowtoredeployair-defensesystemsaway fromthefrontlines.

Cheaperandmoreavailable thancruisemissiles,domesticallyproduceddronesenable Kyivtogetaroundpolitical constraintsonusingweapons suppliedbyWesternalliesin attacksonRussianterritory. Startupdronemakershave croppeduptomeetdemand withproductsrangingfrom thesleekUJ-25Skylinetoan unnamedmodelwithafuselagemadefromalengthof plumbingpipe.

Ukrainianofficialssaid dronesstrucktwooilrefineriesandanairfieldintheKrasnodarregionovernightinto Saturday.

Russia’sDefenseMinistry saiditsair-defensesystems shotdown50dronesonasingledaylastweekend,includingovertheMoscowregion. Fallingdebrisignitedfiresat energy-infrastructurefacilities intworegions,officialssaid. InApril,dronesstruckanoil refineryanddronefactoryin

Russia’sTatarstanregion some930milesfromtheborderwithUkraine,demonstratingthegrowingrangeof Ukraine’scapabilities. Thestrikesareabrightspot forUkraineasitsbattlefield prospectshavedarkened.The campaign,however,has emergedasafaultlinebetween KyivandtheBidenadministration,whichisconcernedabout theimpactonenergyprices.

Ukrainianofficialssaythey mustuseallavailablemeans toresistRussiaafteralengthy delayinthedeliveryofaid fromtheU.S.revealedthelimitsofWesternsupport.A$60 billionpackageofaidforKyiv wasrecentlyunblocked,but theinfusionofarmsandammunitionisunlikelytodramaticallyreverseKyiv’sfortunes. Ukrainianofficialssaythey plantomakethousandsof long-rangedronesthisyear. Intheearlydaysofthe war,Ukraineadaptedcommerciallyavailabledronessuchas theChinese-builtMugin-5, whichdefenseanalystHISuttonsaidwasusedinoneof thefirstattacksontheheadquartersofRussia’sBlackSea FleetintheoccupiedCrimean PeninsulainAugust2022. Thatandothersimilar droneshavegraduallybeen supplantedbyUkraine’sown designs—thoughtheyremain heavilyreliantoncommerciallyavailableChinesecomponents.

Thedronestypicallycarrya warheadof44pounds,accordingtoSutton,whohas identified19differentmodels usedinattacksonRussian territory,includingaballoon thatdropsmortarbombsfrom ahighaltitude. Costsrangefromabout $30,000to10timesthat much,onedronemanufacturersaid.Evenatthetopof therange,itisstillconsiderablylessthancruisemissiles thatWesterncountrieshave providedtoUkraineonconditiontheyonlybeusedinRussian-occupiedterritory.

Berkshire’s Romantic Meetings

ContinuedfromPageOne

thing,”recallsAdamWright,a financialadviserwhobought anengagementringandweddingbandfromBuffettata pastannualmeetingweekend. Buffetthasbeenthewingmanonproposals,including onceforhisgrandnephew AlexRozek,whowantedto proposetohisgirlfriend,Mimi Krueger,atthe2009share-

Beijing Bracesfor Turmoil

ContinuedfromPageOne

toantagonizeBeijingaround January’spresidentialelection inTaiwan,theself-ruledisland thatChinaclaimsasitsown,a matterinwhichithasrepeatedlywarnedtheU.S.notto meddle.

Someofficialsseebenefits forChinafromapotential TrumpwininNovember.In theirview,hecouldaccelerate whatXibelievesistheU.S.’s declineasthesingularworld power,causemorepolitical andsocialdisarrayinAmerica andpushawayalliesBiden haswonover,potentiallyhelpingBeijingrebuildrelations withEurope.

Butoverall,theybelievethe harmofasecondTrumpterm likelywouldoutweighanypotentialbenefits,thepeopleclose totheleadershipsay.Muchwill dependonwhowouldbein Trump’sinnercircle.

Pompeo,whohassaidhe’s opentojoiningasecond Trumpadministration,leadsa listof28formerTrumpadministrationofficialsBeijingputon asanctionslistandbanned fromenteringChineseterritory.ThedaybeforeBidentook office,aChineseForeignMinistryspokeswomanlabeled Pompeo“ClownoftheCentury”forhisallegationsthat Chinacommittedgenocide againsttheUyghurethnic groupinXinjiang.

Trumpandhistrade-war lieutenant,RobertLighthizer, haveopenlyadvocatedallbut cuttingoffChina’saccessto America’smarkets,technology andcapital.

“TheChinesebelievethatif TrumpreturnstotheWhite House,theupsidetotheU.S.Chinarelationshipwouldbe cappedbutthedownsideis bottomless,”saidYunSun,directoroftheChinaprogramat theStimsonCenter,aWashingtonthinktank.

China’sForeignMinistry saidinastatement,“whoever iselectedastheU.S.president, wehopetheU.S.willworkwith China”topromotethebilateral relationship.“Chinaopposes somepeopleintheU.S.using Chinarhetoricforelectionpurposes,”itsaid.

‘ReverseNixon’ Interviewswithpolicyadvisersinbothcapitalsaswell aspeoplewhohaveconsulted withChineseofficialsgivea pictureofthepreparationsin Beijing.

SomeChineseministries, suchasforforeignaffairs, trade,investmentandtechnology,havedesignatedofficials tobeU.S.electionwatchers, withafocusontheTrump camp. Oneimmediateconcernis thepotentialforanothertrade war.Chinesecompaniesare speedingupeffortstoexpand theiraccesstoadvancedtechnologiessuchasartificialintelligenceinregionsliketheMiddleEast,worriedthataTrump victorycouldquickenthepace ofU.S.techsanctionsagainst China. DespitecallsfromU.S.TreasurySecretaryJanetYellenand otherstostopfloodingthe world’smarketswithcheap goods,Chinaissetonastateleddrivetomanufactureits wayoutoftheworsteconomic headwindsinrecentdecades. Officialsreasonthatisthebest waytooutcompetetheU.S.,especiallyifTrumpreturnstothe WhiteHouse. SeniorChineseofficialshave steppeduptheircourtshipof Americanbusinessleaders, quizzingthemonwhothey thinkwouldbeinaTrumpcabinetandtryingtogetthemto

holdermeeting.“Justaskhow we’regoingtogettheeconomybackontrack,”RozekrecallsBuffettadvisinghim.

Whenthedayarrived, RozekandKruegerwerein theaudiencewhenBuffett saidtherewastimeforone morequestion.Rozekdeliveredhisline.

“Iwassittingtherewith myheadinmyhandstryingto disappear,”sherecalls.“Iwas like,ohmyGod…whatishe doing?”

Buffettrepliedthat“householdformations”wouldhelp— andaskedifthatgaveRozek anyideas.

“Ithinkso,”Rozeksaid. “Mimi,you’remybestfriend. Wouldyoubemywife?”

Thecrowdapplaudedas shetookinwhathadhappened,andgavearesounding, “Yes.”

EricLeFanteandCarrie FischermetatRiderUniversityinNewJerseyandbonded overtheirsharedinterestin business.

Later,heencouragedherto readBuffett’sshareholders’ letters.(Shewouldeventually buyhimacompilationofthem asabirthdaygift.)

Hehatchedaplan:Hehad heardaboutBuffett’sstintsat theBorsheimsjewelrycounter.“Youridol,howcool woulditbetobuythisring fromhim?”LeFanterecalls thinking.“ButIwantedCarrie toexperiencethatwithme.”

Inavideooftheproposal, Buffettshookthecouple’s handsandexaminedanecklaceLeFantewaspretending tobuy.ThenBuffettreached intohispocketandpulledout abox.“Thismightbesomethingmoreinteresting,”he said.“Let’stakealook.” “Oh,myGod,”Fischersaid, whenshesawthering. “Wow.”

LeFantekneltandasked hertomarryhim.Shesaid yes,andBuffettpouredthe champagne.Thecouplewore lanyardswiththeircredentialsfortheshareholdermeeting.

NowCarrieLeFante,sherememberssomethingofadivideinreactionstotheir

China’sEvolvingTies

story.“Myfinancialfriends knewexactlywhoWarrenBuffettwas—myotherfriends whoarenotreallyinthefinancialworldwerejustlike, whoisthisoldguywho’sgivingyouthisring?” Nonetheless,shelovedit:“I couldn’thaveaskedforabetterengagement.” OmahanativeDentlinger hadreadaboutLeFante’sengagementintheOmaha World-Herald,andenlisted Buffett’shelpforhisownproposal.Dentlingerhadanadvantage:HeworkedforNationalIndemnity,aBerkshire insurancecompany.Hecomposedaletterandsentitto headquarters. Buffettwaswilling.Aday

June29,2019:WhenTrumpstartedsettingtariffsonChinainearly2018toforceBeijingtochangeitsstate-led economicpractices,Beijinghitbackinkind.Above,TrumpandXiattheG-20leaderssummit.

March21,2023

XihascultivatedapersonalbondwithRussianPresident VladmirPutininrecentyears.Above,thetwotoastatareceptionfollowingtalksinMoscow.

lockintheirChinainvestments. TheBidenyears,withwars inUkraineandGaza,haveseen adeeperdemarcationingeopolitics,with,roughlyspeaking, theU.S.andEuropeononeside andChinaandRussiaonthe other.ATrumpwincouldmuddlethatconstellation.

AbigworryforXi,accordingtothepeopleclosetothe leadership,iswhetherTrump willdisrupthis“bromance” withVladimirPutin.Whenhe wasintheWhiteHouse,Trump repeatedlysoughttobringthe U.S.closertoRussia.

Xihascultivatedapersonal bondwiththeRussianleader andfearsthatifTrumpcozies uptoPutin,itcouldweaken Beijing’sownrelationshipwith Moscow,acrucialpartnerin Xi’sstandoffwiththeWest. Worse,someChinastrategistssay,Trumpcouldtryto pulloffa“reverseNixon.” MuchlikeformerPresident RichardNixonsoughtChina outtocountertheSovietUnion duringtheColdWar,Trump mightseektoturnMoscow againstBeijing. Fornow,WashingtonisfocusedonreducingBeijing’sassistancetoRussia.TheBiden administrationispressuring Chinatocutbackitssupport forRussia’sdefenseindustry— amessageSecretaryofState AntonyBlinkendeliveredtoXi andotherseniorofficialsonhis visittoChinalastweek.

Beijing’srelationswith WashingtonhaveenteredaperiodofrelativecalmsinceBidenandXimetinCaliforniain November,asummitintended tobreakadiplomaticimpasse afterasuspectedChinesespy balloonflewoverAmericalast year. Astheprogramwasbeing setforthesummit,theXiteam hadonewish:thatthetwo leaderstakeastrolltogether. Beijingwantedtobeamback totheChinesepublicamicable snapshotsofXiwithBiden— muchlikea2013summitproducedimagesofXiandformer PresidentBarackObamaleisurelytakingawalk—toshow thattheirleaderhadChina’s mostimportantbilateralrela-

tionshipundercontrol.

TheWhiteHouseaccommodatedthewish.Thefour-hour meetingatawoodsyestate outsideSanFranciscoincluded awidelytelevisedpromenade bythetwoleaders.

Theadministrationhasoftensaiditseekstomanagethe U.S.-Chinacompetitionresponsibly,eventhoughBidenhas largelycarriedontheTrump administration’stradestance.

“TheChineseknowwhat theydon’tlikeaboutBiden,” saidRickWaters,aformerseniorChinaofficialattheState Departmentandnowmanaging directorforChinaatEurasia Group,apolitical-riskconsultingfirm.“Buttheydoput valueinBiden’sefforttotryto stabilizetherelationship.”

Sincethesummit,despite theestablishmentofadozen workinggroupstorestarttalks ontradeandotherpoliciesand arecentphonecallbetweenBidenandXi,thereislittleactual negotiationgoingon.

Bidenofficialssayitwill taketimetogettoconversationsofgreatersubstance.In Beijing,apotentialTrumpvictoryisalsoafactor.

Nov.15,2023

Beijing’srelationswiththeU.S.haveenteredaperiodofrelativecalmsinceXiandPresidentBidenmetinCalifornialast year.Thesummitincludedawidelytelevisedpromenade.

TheChinese“likelythinkit makeslittlesensetocompromiseiftheBidenadministrationistogothewayofthe dodobird,”saidScottKennedy, aChinaexpertattheCenter forStrategicandInternational Studieswhorecentlyconsulted withofficialsandgovernment advisersinBeijing.

‘Badexperience’

Trump’ssurprise2016victoryupendedtheU.S.’slongstandingstrategyofdeepening economictieswithChina.

XiandhisunderlingsinitiallybelievedTrump’stough talkmaskedafearofChina’s economicstrength.When Trumpstartedsettingtariffs onChinainearly2018toforce Beijingtochangeitsstate-led economicpractices,Beijinghit backinkindeachtime,figuring thebusinessman-turned-presidentwouldeventuallyback down.

Tit-for-tatescalationfollowed.TheAmericanlevieson importsofChinesegoods endedupquadruplingfrom3% to12%onaverageduring Trump’sfirstterm.

Longusedtobeingthemore histrionicpartyintherelationship,China’sCommunistrulers foundthemselveshavingto dealwithanerraticdealmaker usingextremepressuretoextractconcessionsfromBeijing.

“UnderTrump,wehada badexperience,”LiuJianchao, aseniorpartydiplomatseen asChina’slikelynextforeign minister,saidataclosed-door sessionwithAmericanthink tanksearlierthisyear,accordingtopeoplewhoattended themeeting.

TheeconomiccosttoBeijing ofTrump’stariffs,retainedby Biden,isreal.ChinesecompaniesslappedwithtariffsexportedlesstotheU.S.,reduced hiring,spentlessonresearch anddevelopmentandwereless likelytostartnewventures,accordingtoresearchfromeconomistsatPekingUniversity, FudanUniversityandother leadingChineseuniversities. Overall,thedamagetoChina’s grossdomesticproductfrom thetradewarwasthreetimes ashighasthehittotheU.S., accordingtosomeChinese economists.

InWashington,Trump’sag-

aftertheannualmeeting,DentlingerandGoganarrivedat Borsheims.Buffettgreeted themandaskedhowlongthey hadbeentogether.“Twoyears isabouttimesomethinghappens,”Buffettsaid,andlifted asmallboxintoview. Dentlinger,morenervous aboutBuffett’spresencethan herresponse,kneltand poppedthequestion.“Iwas juststar-struck,”herecalls. “Ididthink,wow,Michael pulledthisoff,”RachelDentlingersays.“Anditgotallthe wayuptoWarrenBuffett.” TheDentlingersplantoattendFriday’sBorsheimsevent toreminisceandenjoyaparents’nightout—theynow havetwoyoungchildren.

gressivestanceonChinawasa hit.Abipartisanconsensushas sincetakenholdthattheU.S.’s previousengagementwithBeijinghadfailedinitsgoalto makeChinaadoptamoremarket-driveneconomicapproach. Still,Trump’stradewar didn’taccomplishitsmain goals.

Aso-calledPhaseOnetrade agreementsignedbetween WashingtonandBeijingin early2020wascenteredon China’spromisetoincrease purchasesofAmericangoods andservicesby$200billion overtwoyears.Accordingto estimatesbythePetersonInstituteforInternationalEconomics,Beijingfell40%short ofitscommitment.

TheU.S.didn’tgetthefundamentalreformsofChina’s economicpoliciesithad sought,suchasreducingstate subsidiesthatgiveChinese companiesalegupontheir foreigncompetitors.

Techsanctions

Fornow,abigpartofBeijing’splanningforapotential returnofTrumpinvolvestariffsandadvancedtechnology. Someeconomicofficialsare turningtobookssuchas“No TradeIsFree,”byLighthizer, Trump’stradestrategistwho negotiatedthePhaseOnedeal withBeijingandwhohasbeen floatedasacandidateforTreasurysecretaryinasecond Trumpadministration.

OtherBeijingofficialsareinvitingU.S.andotherWestern expertstoscenario-planning sessionsaimedatgaugingthe paceandthescopeofU.S.exportcontrolsshouldTrump winagain.

Already,accordingtoaFebruaryresearchreportby JimmyGoodrich,aChinaand semiconductor-industryexpert andsenioradvisertoRand Corp.,Chinesegovernmentresearchershavebeentryingto deepencooperationinareas suchasbiotech,quantumcomputingandAIwiththeAbu DhabiTechnologyInnovation Institute.

Aspokesmanatthegovernment-fundedinstituteinthe UnitedArabEmirates,aMiddle EasternallyofBeijing’s,saidit isaglobalresearchinstitute withover70partnershipswith organizationsin34countries. EffortsbyBeijingtoget aroundU.S.techsanctionsare likelytoaccelerateinthe monthsahead,Chineseanalystssay.WashingtonisconcernedthatChinesecompanies couldgettheirhandsonpowerfulAIchipsthroughother foreignentitiesthatbuythem fromtheU.S. Trumphassaidthatifreelected,hemightimposetariffs ofupto60%onimportsfrom China.It’sunclearhowsucha movecouldbecarriedout. PeopleclosetotheTrump campaignsaidthatasthepresidentialraceintensifies,Trump likelywilltrytocontrasthis gloves-offapproachtoChina withBiden’s,whichtendstobe moretargeted.

Aspokeswomanforthe Trumpteamreferredtohis pastremarksindicatinghe wouldtakeanaggressive stanceifhegetsbackinpower. “MyagendawilltaxChinato buildupAmerica,”Trumpsaid earlylastyear.“Asamatterof botheconomicandnationalsecurity,Iwillimplementabold seriesofreformstocompletely eliminatedependenceonChina inallcriticalareas.”

Chinahasalreadybeen shiftingitstradeawayfrom theU.S.andotherdeveloped economies.Areportbythe McKinseyGlobalInstitute showsthatdevelopingeconomiesincludingRussiaaccountedformorethanhalfof China’sgoodstradelastyear, upfrom42%in2017.

Initsstatement,China’s ForeignMinistrysaid,“thefact haslongproventhattrade warsandtariffwarsarenot beneficialtoeitherside.”

PERSONALJOURNAL.

RobustMarket FeelsLikeLie

ToJobSeekers

Applicantssaysgettinghiredisdeceptively hard;recruitersadmitsomelistingsarefake

changesjobsfrequentlyandsays she’sneverhadsuchahardtime landingoneinher15-yearcareer.

Thisweek’sjobsreport willprobablylookgreat. Butmanyworkerssay theyhaveneverfelt morestuck.

White-collarjob seekersconsistentlytellmeit’s hardertogethiredthanyou’d thinkinaneconomywhereunemploymentislessthan4%.They complainabouthiringmanagers whoghostthemanddrawoutthe interviewprocess.Theysayjob listingslingeroncompanies’careerpagesandnevergetfilled.Or getrepostedrepeatedly.

It’senoughtomakepeoplewho areoutofworkquestionwhether businessesareseriousabouthiring them.Afterall,leadingvoiceslike JPMorganCEOJamieDimoncontinuetowarnthattheU.S.hasn’t escapedthethreatofrecession.

Recruitersacknowledgetheuncertainoutlookisafactorandeven saysomejobsadvertisedarefake, designedtogivetheimpressionof companygrowthorbuildareservoirofrésuméstotapatalater date.Itisonethingnottogeta job.It’sanothertofeellikeyou’re beinggamed.Andit’swreaking havoconpeople’sself-worthand beliefintheircareerpaths.

Iwasmid-conversationwith KatherineBraun,aclinical-trial managerinthemedicaldeviceindustry,whenshereceivedatext fromarecruiter.Themessagesaid acompanysheplannedtointerviewwithhaddecidedtopause hiringfortheopenrole—forsix months.

“Sameold,sameold,”Braun toldme.“I’mjadedatthispoint.” She’sbeenlookingforwork sinceaone-yearcontractendedin November.Becauseofthefinite natureofclinicaltrials,she

Whatbothershermostisthe waysomeemployersseemtorelishbeingabletostringcandidates along.Oneflewherinforseveral hoursofface-to-faceinterviews thenneverfollowedup.

Numbersdon’tlie, exceptwhentheydo Aftervyingfortalentwithgenerouspayandwork-from-homeflexibility,companieshavereasserted controlovertheemployer-employeerelationship.Bosseswho preachedself-carenowsqueeze maximumefficiencyoutoftheir teamsandholdoutfor“perfect” hireswhentheyreluctantlyagree reinforcementsareneeded.

Onein50Americanworkers jumpedfromonecompanytoanotherinMarch,accordingtothe FederalReserveBankofPhiladelphia,amongthelowestratesin threedecades. Someworkersharborserious doubtsaboutthegovernment’s statistics,backedbythefactthat initialmonthlypayrolltallieshave beenwayoffattimes.Thenumber ofjobsaddedinDecemberwasultimatelyrevisedupby34%,while aneye-poppingJanuarytotal turnedouttobe27%smalleron review.

OtherswhotrustthatUncle Sam’seconomistsareactingin goodfaithstillsayyouhavetolook underthetoplinedatatounderstandthedourmoodinofficesandthepervasive feelingthatonlinejob portalsamountto nothingmorethan yourrésuméversusoblivion.

 CaraCrabbBurnhamhashad fiveinterviewsafter 500jobapplications.

MeikeishaScott-Parker,outof workasaprojectmanagersince January,recentlyclearedasecond-roundinterviewandbelieved anofferwasimminent.Butshe didn’tgetthejobbecauseshewas overqualifiedandtooexpensive,a recruitertoldher.

Afewdayslater,shesawthe samepositionrepostedwithan advertisedwagethatwas$10an hourlessthanoriginallylisted. Shefiguresthecompanyeither trimmeditsbudgetorconcluded thatitcouldfindadequatehelpat abargainprice.

“Thetruthis,hadthey askedme,Imighthave taken$10lessbecause ofthesituationthat I’min,”ScottParkersays.“The marketissoslow rightnow.”

Morethan three-quartersof thereportedjob gainsinthelatest monthwereconcen-

tratedinfoursectors:government, healthcare,construction,andleisureandhospitality.Jobsintech, finance,lawandaccountingwere essentiallyflatorslightlydown. Pickycompaniesand perfectcandidates Inflationandhighinterestrates contributetomanypeople’ssense thattheycan’tgetaheadevenif they’regoodearners,saysMark Hamrick,asenioreconomicanalystatBankrate.“Housingaffordabilityismiserablerightnow,and borrowingcostsareatthehighest levelsinageneration,”headds. Evenhomeownerswhobought attherighttimelamentthattheir investmentscan’tshieldthemfrom thefalloutofajobloss.CaraCrabbBurnhamissittingonavaluableassetintheMassachusettshomeshe purchasedin2020butsaysshe’s unabletoborrowagainsttheequity becausesheisunemployed.

“Ihaveallthismoneytiedup inthehouse,whichcouldsustain

meforseveralmoremonths,butI can’tgettoitbecauseIdon’thave enoughincometoshowIcould payitback,”shesays.

Crabb-Burnham,aregulatorycompliancemanager,hasresorted tocredit-carddebtinstead.She estimatesshehasappliedto500 jobssinceSeptemberandlanded fiveinterviews.

Recruitersconfirmthetheory thatcompaniesarenowpickier thanthey’vebeeninalongtime. JosephJewell,atechrecruiter, thoughthe’dfoundsomeonegreat forarecentjobopening,andwas stunnedwhenhisclientrejected theperson.Thereason?Thecandidatewasabig-picturethinker,and bossesfearedhewouldn’tbesatisfiedinarolethatsimplyrequires strongsoftware-writingskills. Thepositionremainsunfilled afterseveralmonths. “Ijustwanttotakemyheadand hititagainstthewall,”Jewellsays. “Imeetsomanycandidatesand think,‘Youshouldhaveajobalready.’”

BY JOE PINSKER

JeremyMorrisisusedtofriends makingfunoftheToyotaTacomahehasdrivenfor24 years.Hestillinsistsitwasoneof thebestmoneydecisionsofhislife. The45-year-oldfinancialadviser inCoeurd’Alene,Idaho,estimates hesavedmorethan$100,000by neverreplacingthepickup.Hisballparkfigurefactorsinwhathe wouldhavespentonanewcareveryfiveyears,minustheroughly $20,000hepaidforrepairsandupkeepover300,000miles.

Therehavealwaysbeenpeople whorelishdrivingcarstillthe wheelsfalloff,butthecaseforthis frugalpersonal-financemovehas grownstrongerasthecostsofcar ownershiphaveballooned.

Theaveragetransactionpriceon anewvehiclewas$46,660in March,comparedwith$39,950 threeyearsearlier,accordingtoEdmunds,anonlinecar-shopping guide.Repairandmaintenance costsareup8.2%year-over-year, andinsurancecostsareup22.2%, LaborDepartmentdatashow.

Theincreaseincarcostsisone ofthemanydevelopmentsthat haveledtohigherinflation.The FederalReserve,whichiswrapping upatwo-daypolicymeeting

Wednesday,hasattemptedtoaddressstubborninflationbyraising interestrates.Thathasalsomade autoloansmoreexpensive. Tocope,manyownersare squeezingmorelifeoutoftheircurrentride.U.S.vehicles’averageage hitarecord12.5yearsin2023,increasingforthesixthstraightyear, accordingtoS&PGlobalMobility. Higherautoprices,incombinationwithlongervehiclelifespans andnewtechnology,arechanging themathontheoptimalamountof timetokeepacar.ForMorris,the peelingblackpaintonhistruckonly makeshimfonderofit.

“Mylong-termplanwiththe truckisnevergettingridofit,”he said.

Betterwithage TomPiippoonceputuppicturesof customersandtheirvehiclesonthe wallofhisrepairshopinRudyard, Mich.,afterodometersreached 200,000miles.Thetradition stoppedyearsagoafterthemilestonebecamecommonplace.

“Iranoutofwall,”saidPiippo, whoseTri-CountyMotorsregularly seesvehiclesinthe200kclub.

Inthe1990s,carswith100,000 milesonthemwerenearingtheir end,butnowtheyareagingmore gracefully.Risingvehiclepricesalso haveledcustomers tohangontoold carslonger,Piippo said.Hesaidhe hearsthesame fromothermechanicsintheAutomotiveServiceAssociation,atradegroup. Manydriverscome intohisshopwith carsfromthelate

neededanewtransmissionlast year,thatnormallywouldhavebeen thecouple’scuetosell.Butbuying acomparablecarwas soexpensivethat theydecidedtoput $6,500intofixing theirsup.

“I’msogladnotto haveacarpayment rightnow,especially notan$800carpayment,”saidSteven Newton,a56-year-old federalcontractor. Newtonaddedthat theirtimeowningthe Fordmightonlybe halfwayover.

Ownerstypically considerunloading theirvehiclewhen theylearnofarepair thatwillcost10%or moreofwhatthey wouldpayforanew one,saidDruryofEdmunds.Hecautions thatpeopletendto underratethevalueof payingforamajorfix.

 JeremyMorris estimateshehas savedmorethan $100,000by stickingwithhis 2000Toyota Tacoma.

1990sandearly2000s. TheaverageageofAmericans’ vehicleshasrisensignificantlyover thepast50years,accordingtodata fromtheFederalHighwayAdministration.Theshareofcarsthatare 10ormoreyearsoldclimbedfrom 16.9%in1977to44.2%in2022. Thereareotherreasonsdrivers areholdingontotheircars.Newer modelshavebecomemoreexpensivetorepair.Seeminglysimple fixescanrunuplargebillswhen damageaffectssensors,screens andothernewtechnologythathas becomemorestandard. Andmoreownershavetakenout longerloansthatcanstretchoutto sixorsevenyears.“Peoplehave thatmentalityof,Iwon’ttradein mycaraslongasI’mstillmaking payments,”saidIvanDrury,director ofinsightsatEdmunds.

Yourmileagemayvary Theeconomicsoflong-termcar ownershipworkbetterwithsome

 LizNicklesofNewYorkCity saystoday’scarpricesstrengthen thecaseforstickingwithher2004 CadillacDeVille.

makesthanothers.LexusandToyotawerethetwowiththefewest problemsreportedbyownersinthe firstthreeyearsafterbuyingthem new,accordingtothelatestdependabilitystudybyresearchfirm J.D.Power. Electricvehicleshadsomeofthe highestratesofproblemsreported inthestudy,inpartbecauseoftheir batteriesandthattheytendto comewithmoretechnologybuiltin. Lowinventoriesandhighpricesin recentyearshavefurthercomplicatedthemathoncarpurchases, leadingsomedriverstorethinkthe inflectionpointatwhichitnolonger makessensetoholdontoavehicle. StevenandKristenNewtonof SilverSpring,Md.,oncereplaced theircarsroughlyeveryeightyears. WhenKristen’s2017FordEscape

“Somepeoplethink ifit’sgotanewengineorarebuilttransmission,it’snotworthmuch,and that’snotcorrect,”hesaid.

Buthesaidthereasondrivers typicallygiveuponacarissomethingmoreintuitive.Itiswhenthey losetrustinit.

‘Agiantvanillaice-cream baronwheels’ LizNicklesisproudlybringingup thenation’saveragevehicleage withherwhite2004CadillacDeVillenicknamed“ThePearl.”

“It’slikedrivingagiantvanilla ice-creambaronwheelsthrough NewYorkCity,”saidNickles,ababy boomerwhoisawriterandmarketer.“It’ssmooth.Itglides.”

Seeingtoday’scarpricesmakes herclingmoretightlytoThePearl. Financesaside,Nicklessaysthesedanfeelssturdyandpracticallyindestructible.

“Thewheelsarenevergoingto falloffofthatthing,”shesaid.“My wheelsarefallingoffbeforeits wheels,that’sforsure.”

BY CORDILIA JAMES

Whetherit’syour computerora mile-longtrain, theNo.1wayto fixtechproblemshasn’t changedinyears:Tryturningit offandonagain. Arebootisano-duhsolution, whichiswhyyourIThelpersalmostalwaysrecommenddoingthat first.Itturnsoutthatflippingadeviceoffandoncanresolvesoftware issuesandbugs.Thishasbeentrue fordecades.Computershaveadvanced,buttheystilllargelywork thesameastheearliestmodelsdid. Nowthatcomputerscomeinso manynontraditionaltechproducts likecarsandrefrigerators,rebootingisevenmoreusefulanduniversal,ITexpertssay.

Unlikeafactoryreset,rebooting maintainsyourpreferencesand datainsteadofreturningyourdevicetoitsoriginalsettings.It’salso notasriskyasinvasivetroubleshootingtechniquesthathaveyou disassemblingdevicesorsticking thingswheretheydon’tbelong.

KennyChan,aseniortechnologymanageratArchetype,aSan Francisco-basedcommunications andmarketingagency,sayshe getsabouttwotofourticketsa weekaboutissuesthatcould’ve beenresolvedbydoingareboot.

“Someuserscometomeand say‘Ijustdidtherebootandit didn’twork,butletmedoitwith youwhileyou’reonthecallwith me,’”Chansaid.“Itworkswhen I’mthere.”

Itisn’tjustcomputersand smartphonesthatworkbetterafterareboot.Sometimes,planes, trainsandautomobilesalsoneed tobeturnedoffandontoget backtonormal.Flightcrewsoften restartthein-flightWi-Fiandentertainmentsystemtomakethem work,whileatrainmightneedto rebootifit’shavingtechnologyissuescausedbyextremeweather, communicationslossesorpower failureonthetracks,saidanAmtrakspokesman.

JasonCerezo,52yearsold,had justsettledintohisseatona flightfromPortland,Ore.,toDallasforabusinesstrip whenthepilotnotified everyonethattheplane washavingtroubledisconnectingfromthe gateandrequiredarestart.Cerezo,the ownerofagraphic-designandweb-developmentagencyinChampaign,Ill.,laughedto himselfdespitehaving toleavetheplaneand reboard.

 JasonCerezotooka flightthatrequiredthe crewtorebootthe planesoitcouldleave thegate.

TheGadget-FixingMagic

OfRebootingEverything

“Everythingiscomputer-based, soturningaplaneoffandturning itbackonagainmakesperfect sense,”Cerezosaid.“That’dbethe firstthingIwoulddoifIwere troubleshootinganairplane.”

DoYour SnacksNeed AWarning Label?

BY ANDREA PETERSEN AND JESSE NEWMAN

Canalabelonpackagingmake useathealthier?

Aspartofthegovernment’s questtoimproveAmericaneating habits,theFoodandDrugAdministrationisconsideringrequiringfood manufacturerstoputnewlabelson thefrontofpackages.Thelabels mightflagcertainhealthrisks,such ashighlevelsofsalt,sugarorsaturatedfat.

Don’texpecttoseeawarninglabelinyourgrocerystoresoon,becausetheFDAisstillweighingits approach.Buttheagencyhopes thatclearerfoodlabelingcouldhelp usmakehealthierchoicesasit tacklestheriseofdiet-related healthproblemssuchasType2diabetesandcardiovasculardisease. Thefoodindustryispushing back,sayingthatthereisn’tenough evidencethatlabelscansignificantlychangeconsumerbehavioror thatsomelabelsunderdiscussion areconfusing.

Whatmaygoonpackages MostpackagedfoodsintheU.S.alreadydisplayanutritionlabel,usuallyonthebackorside.Thenewlabelsinconsiderationwouldbeon thefrontofpackages,accordingto theFDA,whichsaysitintendsto proposearulethissummer. OnelabelideatheFDAhastested usesred,yellowandgreentoconvey whetherproductsarehigh,medium orlowinaddedsugar,sodiumand

 TheFDAhastestedavarietyof front-of-packagelabelideas.

saturatedfat.Otherpotentiallabelsthatthe FDAhassharedstate howmuchofthosesubstancesaproductcontainsperserving.

Chile,Mexicoand othercountriesuse stop-sign-shapedsymbolsthatindicatean itemcontains,say,high levelsofsugar.Thelabelsappearonobvious treatssuchascookies, aswellasmanyketchups,yogurtsandbreakfastcereals.

Thesestark-looking warninglabelsareeasiertounderstandthan standardU.S.nutrition labels,researcherssay.

“Peoplearebusy.You mighthaveatoddler screamingatyou.It’s reallyhardtointerpretandmake senseofallthatinformationonthe backofthepack,”saidLindsey SmithTaillie,aleadingresearcher onfoodlabelingandassociateprofessorattheUniversityofNorth Carolina’sSchoolofPublicHealth.

Quickfix

Onecommonissuethatmightrequirearestartismemoryleaks, whichhappenwhenapplications havecodingerrorsthatcause themtooverloadthesystem.The leakscancausesluggishperformance,crashesandfreezes.Similarissuescanarisewhenyou keepadeviceonfortoolong withoutclosinganyprograms.

Turningoffadevicepauses thoseapps,stoppingtheleak.It clearsthedevice’sRAM,whichis theshort-termmemorystorage foracomputer’soperatingsystem,saysAaronGrady,Windows’ partnergroupprojectmanagerat Microsoft.

Whenauserturnsthedevice backon,applicationsopenwitha cleanslate,freefrombugsthat mighthavecausedhiccups earlier.

“Thisprocessissimilartotakingashortnapwhenyou’refeelingoverwhelmed,”Gradysaid.

“Whenyouwakeup,youfeelrefreshedandcantackleproblems moreeffectively.” Thisappliestoanyproduct thathassoftwarerunningonit, includingcars.Theyhaveonboard computersthatcontrolvarious systemssuchasBluetoothconnectionsandGPSnavigation.

Underthehood GurpiarGill,a27-year-oldteacher inSaskatchewan,Canada,drivesa truckforaconstructioncompany inthesummer.Twoyearsago,his bossboughta2021FordF-150for himtouse,butjusttwoweeksaftergettingthetruck,heturnedit onandnoticedthatthedigital dashboard’sscreenwasblank.

Gillstartedtopanic,skimming throughthevehicle’smanualand scrollingthroughcarforumsonlinetofindpossiblesolutions. Whennothingusefulcameup,he turnedoffthevehicleandwaited afewminutesbeforeturningit

onagain.Itworked.

“Iwasjustsurprised,”Gill said.“Ourtechnologyhas increasedsomuchandhasgotten soadvanced,butthisverysimple thingthatI’vebeenusingsince theearly2000stofixourvery firstWi-Firouterisstill working.”

Resetscanevenworkforsome hardware-relatedissues,Grady said,suchasconnectivityproblemsfromamalfunctioningport oranonresponsivescreen. Notallissuescanberesolved withareboot.Forexample,corruptedfilesonacomputer’shard drivewouldneedtobedeleted manually,Chansays,whichis whyinsomecasesyoumight havetoclearyourcomputer’s cachethathousesthosefiles. Still,thenexttimeyouhavea techproblem,channelyourinner ITpersonandthinktoyourself: “Haveyoutriedturningitoffand backon?”

Whatthesciencesays Since2022,theFDAhasconducted focusgroupsandanexperimental studyusingmockbreakfastcereal, cannedsoupandafrozenmealto assessconsumers’abilitytouse differentlabelstoevaluatethe healthfulnessofthefoods.

Scientificstudieshavegenerally foundthatfront-of-packagenutritionlabelsleadpeopletoidentify andchoosehealthierfoods.More countriesnowrequirethemonfood andbeveragecontainers.Others,in-

cludingFrance,theU.K.andAustralia,havevoluntaryprograms. Theidealfront-of-packagelabel, Tailliesays,issimple,visualand letsconsumerseasilyassesshow healthyaproductis.InMexico,a packageofOreos,forexample,containsfouroctagon-shapedlabels, oneeachforexcesscalories,sugars,saturatedfatsandsodium.Mondelez,whichmakes Oreos,saiditsupportsfront-ofpacklabelsthatdrawonthelatest scienceanddietaryguidance. Earlyresearchhasshownthat theoctagon-shapedwarninglabels,  FoodsanddrinkssoldinMexico featurewarninglabelsonthefront ofpackagesiftheyarehighin sodium,sugar,saturatedfatand calories.

whicharesupportedbysomeU.S. lawmakers,canchangepeople’s shoppingchoices.

AChileanlawrequiringlabelson thefrontoffoodanddrinkpackagesresultedinpeoplebuying fewerproductsthatnowhave warnings,saysCamilaCorvalán, professorofpublichealthnutrition attheUniversityofChile,who helpeddevelopthelabels.

Astudyoffoodanddrinkpurchasesfoundthatoverallcalories boughtfromproductsrequiredto havewarningsdroppedby23.8%, accordingtothestudypublishedin 2021inthejournaltheLancet PlanetaryHealth.

Afterthewarninglabelswere implemented,foodmanufacturers changedtheirproducts,too—byreducingtheamountofsodiumor sugar,forexample.

Industrypushback Stop-sign-likelabelslikeChile’sare anathematomanyinthefoodindustry,whoworrythatnewmandatorylabelscoulddemonizeproducts,accordingtoindustry lobbyists.

Suchlabelscouldunfairlyconveythatcertainfoodsarebadto eat,wheninfacta candybarmaynotbe healthy,butconsuming itinmoderationisn’ta problem,lobbyistssaid. Theindustrysays thelabelscouldposea threattoFirstAmendmentrightsandthat onlyCongresshasthe authoritytorequire them.Existingnutrition labelsofferconsumers sufficientinformation, foodindustrygroups say. AnFDAofficialsaid theagency’sworkis ongoing,andnotedthat ithasbroadauthority overlabelsonfood.

Lessonsfromonecountry InMexico,whichbeganrequiring warninglabelssimilartothosein Chilein2020,somefoodcompanieshavegottencreative.Somecerealboxesnowhavenearlyidenticalfrontsandbacks—andthe “back,”withoutthewarninglabel,is placedforwardonstoreshelves,accordingtoSimónBarquera,director ofthenutritionandhealthresearch centerattheNationalInstituteof PublicHealthofMexico,who helpeddevelopandevaluatethelabelprogram.

“Theyfindloopholes,”saysBarquera. Thereareindicationsthatfood manufacturersaremakingtheir productshealthiertoavoidlabels, Barquerasays.Mostpackagedcerealsarenolongerhighinsodium,he notes.Andconsumers’knowledge aboutwhichfoodsarehealthyisincreasing,headds.

“Ithinkmostpeopleknewthat thingslikepotatochipswerejunk food,”saysBarquera.“Butmany peoplethoughtready-to-eatcereals werehealthy.Andnowtheyknow it’sexpensivejunkfood.”

We’reonamissiontoprovideabillionmealsby 2030.Becauseover30millionAmericansdon’t knowwheretheirnextmealiscomingfrom.Itcould beanyone,evenyourneighbors.Let’sbreakthe cycleofhunger,together.

BY MARY TOMPKINS LEWIS

NLondon

otallartists’reputationsareburnishedby retrospectivesurveys oftheirwork,atleast notinthewaycuratorsimagine.

“AngelicaKauffman”atthe RoyalAcademyofArtsthrough June30,anexhibitionorganized byBettinaBaumgärteloftheAngelicaKauffmanResearchProject, withPerRumbergofLondon’sNationalGalleryandRoyalAcademy curatorsAnnetteWickhamandRebeccaBray,offersacaseinpoint. Includingoverthirtyworksbythe artist(1741-1807),manyneverbeforeshownintheU.K.,theshow servesasabackdroptoKauffman’s interestinglifestoryandherrelentlessaspirationstodistinguish herselfasahistorypainter.Like manyambitiousartists,however, Kauffmanoftensustainedherself bypaintingportraits,thenconsideredaratherpedestriangenre.As theexhibitionattests,itisherintimate,naturalisticlikenessesofher contemporaries,ratherthanher grandiosehistoricalnarratives, thatrepayattention.

BorninChur,Switzerland,and trainedearlyoninItaly,Kauffman wasaprodigy,andwidelyadmired forhercosmopolitangracesand broadknowledgeofart,musicand literature.Shewouldbecome— throughherowneffortsandbusinessacumenanddespiteanunfortunate,short-livedmarriage—one ofthewealthiestbourgeoiswomen inEuropeandararesuccessstory inanartisticspheredominatedby men.ThroughouttheshowKauffman’scalculatedself-portraits—in therusticcostumeofherancestors,asasteely-eyedobserverin herstudio,inelaborateantique dresswiththeattributesof disegno (atermencompassingboth theimaginativepowersandtechnicalskillstheartsrequired),and inotherpoeticguises—revealher tenaciouseffortstofashionher ownpublicimageand professionalpath.

InItaly,Kauffman metanumberof leadingculturalfigures,andherperceptivepaintingsof themenhancedher reputation.Avibrant, unidealizedlikeness oftheeminentGermanarthistorian andarchaeologistJohannJoachimWinckelmann,forexample, depictshimatwork onamanuscriptthat leansagainstanancientbas-reliefofthe mythicalThree Graces,areferenceto hisillustriouswritingsonthepursuitof beautyandtheclassicalidealinart.The canvas(1764),exe-

ARTS IN REVIEW

cutedinthesameyearinwhich Winckelmann’sseminal“History ofAncientArt”appeared,helped launchKauffman’sinternational career.Likewise,her1764portrait ofDavidGarrickdepictsthefamed Britishthespianunderbright lightsinherNaplesstudioashe turnsinhischairtogreetthe viewer,aninformal,unaffectedattitudethatmirroredtheactor’sfamouslynaturalisticapproachto hiscraft.

Intheshow’sfirstroom,these

Thesecrettobecomingalongrunningsitcomistodothe samething,differently.Doingit betterisadream.Withitsthirdseason,“Hacks”indicatesthatdreams mayactuallycometrue.Atthesame time,itisn’treallyasitcom. Justtocatchupaftertwolong years(season2beganinMay 2022),JeanSmart’scomedianDeborahVancewaslastseenpaying $800,000foraKandinskywork-onpaperinordertomanipulateherold boyfriend,Marty Ghilain(Christopher McDonald),intogivingherthemain stageathisPalmetto Casinoforonenight only.There,inabid foracomeback,she shotaconfessional comedyspecialso successfulitearned heravirtuallynew career.Thenshefired Ava(HannahEinbinder),herwriter andtheco-architectofhersuccess, settingthestageforseason3. Whichreframesthewholeshowas alovestory.

of“Hacks.”Ithasbeenafavoriteof manyformanyreasons,primarily Ms.Smart.Butonealwayshasto ask,howlongcantheparticipants keepitup?Theanswer,onceagain, is:Aslongastheywant.Notto lowerthebar,butmanyshowslast foryearswithoutmakingyoulaugh outloud.It’stragic.Also,notfunny.

Theseries remainsboth hilariousand sophisticatedin itsthirdseason.

Fearnot:NeitherDeborahnor Avaareinclinedtowardtoomuch sentiment.Butthatmaybewhy theycan’tlivewithouteachother. Chemistry,comedicandotherwise. Aswaswritteninapreviousreviewofthisshow,itiswithperverseifnotexactlymorbidcuriosity thatoneapproachesanewseason MAX

“Hacks”is,quiteoften,hilarious, andwithenoughsophisticationto makeitunsuitableforchildren,or thosewhocan’tfollowthecircular logicofitscomedy, whichbringsgagsalreadyusedbackinto theconversationina mannerthatmakes themfunnierthan theywerethefirst time.(Aprovencomedytechnique,which thevariouswriters herehaveexploitedto delightfulends.)Ibeganlaughingshortly afterepisode1began,chortlingfrequently,snortingoccasionally,as Deborahreveledinhernewsuccess, lustedafteralate-nighthostinggig shemissedoutonseveraldecades earlierandcametotherealization thattheonlyoneonwhomshecan relyformaterialthatfitherlikea sequinedpantsuitwasAva.

CreatedbyLuciaAniello,PaulW. DownsandJenStatsky,“Hacks”was inspiredlargelyifnotwhollybythe careerofJoanRivers,butMs.Smart hasmadethecharactersuigeneris.

Clockwisefromabove:Kauffman’s ‘PortraitofJohannJoachim Winckelmann’(1764);‘Cleopatra AdorningtheTombofMark Antony’(c.1769-70);and‘Portrait ofJoshuaReynolds’(1767).

twoengagingportraitsframe—and virtuallyeclipse—theartist’sicy, overtlytheatrical“PenelopeatHer Loom’”(also1764),animmense, embellishedcanvaswhoseoverwroughtimageofmaritalvirtue andsufferingfemalesubjectwere takenfromHomer’s“Odyssey”but leaveuscold.Asalsoevidencedin herfanciful“CleopatraAdorning theTombofMarkAntony”(c. 1769-70),orinthestagey,emotionalsceneofamedievalEnglish queensavingherstrickenhusband (“EleanorSuckingtheVenomOut oftheWoundofHerHusband, KingEdwardI,”1776),Kauffman wasknownfordepictingthestoriesofvalorouswomenfromhistory,literatureandtheBibleinher largenarrativeworks.Itseemsa stretchtoargue,however,asdo theshow’sorganizers,thatshe truly“reinvented”or“reinvigorated”thegenreofhistorypainting.Theartist’spredilectionfor delicatebrushwork,modulated color,andmisty,atmosphericef-

‘Self-PortraitWithaBustof Minerva’(c.1780-84).

fects,allvestigesoftheFrenchRococostyle,leftsuchimagesstarkly atoddswiththeirseeminglyheroic,moralizingthemes. Herpaintingsofcelebritiesand BritishGrandTouristsinItaly pavedthewayforKauffman’s movetoLondonin1766,where shewouldbecomeoneoftwofemalefoundingmembersofthe RoyalAcademyofArt.Johann Zoffany’smonumentalportrait (1771-72)oftheirmalecohortsin alifedrawingclasstherecaptures thewomen’ssubordinatestature. Assuggestedbytheirsmall sketchedportraitstackedtoa wall,femaleartistswereprohibited,forreasonsofpropriety,from studyingthenudemalemodel,a crucialelementintheconstructionofheroichistoricalpaintings thatwerethedomainofserious artistsandavoidinKauffman’s trainingthathasbeenemployed todefendherart’sdeficiencies. WhileherportraitoftheAcademy’sfirstpresident,SirJoshua Reynolds(1767),asascholarin

hisstudioandinthe shadowofhisforebear,Michelangelo, ingeniouslyextends Reynolds’scallfor paintingintheheroicGrandMannerto therealmofportraitureandundoubtedly shapedherownflattering“Self-Portrait WithaBustofMinerva”ofc.1780-84, Kauffman’sactual historypaintingsas awholelackedmore thananatomicalexpertise. Aftershereturned toItalyin1781,the artistcontinuedto submitcanvasesfor exhibitioninLondon. Althoughrespected byfellowacademicians,herhistoricalnarrativesoftenlanguishedinpopularityorbecameknownthroughengravings anddesignsforthedecorative arts.Suchlivelyportraits,however,asher“MichaelNovosielski” (1791)—awarm,Rubens-likeimage ofaRoman-bornarchitectholding thetoolsofhistradeandaplan— continuedtobesoughtafterand acclaimed.

WhileKauffman’sreturntothe RoyalAcademyislongoverdue andsuggeststhatherportraits maybeworthyoffurtherconsideration,italsoconfirmsthatthe workmostcloselyassociatedwith theartistdeservesthecriticismit haslongreceived.

AngelicaKauffman RoyalAcademyofArts,through June30 Ms.Lewis,whotaughtarthistory formanyyearsatTrinityCollege, Hartford,Conn.,writesaboutart fortheJournalandother publications.

Andnotametaphor.DeborahVance maybeawomanwhomadeitina timeandplace—mostlyLasVegas— thatwasdisinclinedtotakeherseriously,orhoweveronetakescomedians.Butsheharborsburning,selfish ambitionalongsideafearofnever havingdoneenough,orbeengood enough,oroffloppingthenexttime she’sonstage.Deborahmaybepositionedasthearchetypicalneurotic

tomakehermoresimplyhuman. ShealsoneedsAvalikeapie needsaface.Deborahlostherhusbandtohersister;herdaughterisa recoveringaddict;sheisahard-core lonerwithasupportstaffshe doesn’tdeserve—hermanager,

multigenerationalgapbetween

them—somethingthatisessentialto theshow’svibrancy—thereisabond betweenthetwoprincipalplayers.It iscriticalthatAvabeawriter,nota performer;Deborah needsanaccomplice,not arival.Andsheneedsa foil:TheburnsDeborah deliversonAva—about thesizeofherhands,for instance—aregiftsthat keepgiving.ButAvacan alsoburnback. Dotheyreconcile? Therearehiccups: “Hacks”is,toreiterate, notasitcom;itsstoryline isseason-longandmostly independentofsituations, thoughthereareexceptions.WhenIsaytheseriesdoesthesamething differently,itisnotalwaysgood:Lastseason, Deborah’sdisastrousroutineaboardalesbiansea cruisewastooexcruciatingforthisviewerto evengetthrough;this season,Avahasascene withherlive-inactress girlfriendthatis,similarly,anepic cringe.Inoneepisode,AvaandDeborahgetlostinthewoods—isit,at longlast,ametaphor?Itfeelsmore liketheinfamousChristmasepisode of“TedLasso,”akalandfill.Mostly, however,“Hacks”issublime,though I’mwondering,forthethirdtime around,whytheycallit“Hacks.” Hacks,season3 Thursday,Max Mr.AndersonistheJournal’sTV critic.

SPORTS

TheSwitchHitterIsGoingExtinct

BY JARED DIAMONDAND LINDSEY ADLER

Thehighest-paidplayeronthe NewYorkMetshasaproblem.He’scommittedtobeing aswitchhitter,butlatelyhelooks likeamajorleaguerfromoneside oftheplate—andatotalscrub fromtheother.

FranciscoLindor,theMets’ $341millionshortstop,hasarespectablebattingaverageasa righty.Asalefty,he’sbattingunder.200,whichhasgoneover withthelocalsaboutaswellas touristswhopronounce“Houston Street”likethecityinTexas.

Lindorknowsthatfansaren’t happy,andhehearsthecallson socialmediaforhimtogiveup switchhittingaltogether.He’snot interested.

“Itwillequalout,”Lindorsaid. “IfI’mfullylostfrombothsides, thenIworry.”Lindor’sdedication totheartofswitchhittingmakes himpartofadyingbreed.Baseballhistoryisfilledwithsuperstarswhosluggedfrombothsides oftheplate,fromMickeyMantle toEddieMurraytoChipperJones. Lindorwasinspiredtoswitchhit becauseofRobertoAlomar,the Hall-of-Famesecondbasemanwho alsohailsfromPuertoRicoand, likeLindor,woreNo.12.

Theprevalenceofswitchhittersacrosstheleaguesteadilyincreasedthroughthe1960sand ’70s,peakingin1992,whenthey accountedfornearly20%ofall plateappearances,accordingto StatsPerform.Overthepastthree decades,however,theratehas plummetedtosuchanextentthat switchhittershavenowbecome anendangeredspecies.

Just9.5%ofplateappearances thisseasonhavebeentakenby switchhitters.Ifthatholds,it wouldbethefirsttimethatnumberhasfallenbelow10%since 1976,nearlyahalf-centuryago.

“Switchhitting,”retiredMLB firstbasemanJ.T.Snowsaid,“is thehardestthingtodoinany sport.”

Snowwouldknow.Hewasa switchhitterforthefirstseven seasonsofhiscareerbutstopped tryingin1999andoptedtobatex-

clusivelyfromhisnaturalleftside. Hesayshewishedhehadmade thechangeearlier—justtwoseasonspriorwiththeSanFrancisco Giants,Snowhit.312asalefty and.188asarighty.

Butforplayerswhocandoit, switchhittingremainsaremarkabletrick.Switchhitterstraditionallybatleftyagainstright-handed pitchersandviceversa,ensuring thatcurveballsandslidersarealwaysbreakingtowardthem,not awayfromthem.

“Thebreakingballawayfrom youisthetoughestpitch,”said formerMLBplayerReggieJefferson,aswitchhitterearlyinhiscareer.“Whenyouswitchhit,you takethatoutoftheequation.” NickKrall,thepresidentof

baseballoperationsfortheCincinnatiReds,calledswitchhitting“a veryvaluabletool.”

That’sabigreasonwhythe Redshavenointentionofstopping oneoftheirburgeoningstarsfrom doingitanytimesoon,evenif therearesomegrowingpainsinvolved.EllyDeLaCruz,theteam’s 22-year-oldphenom,hassome prettydramaticsplitsofhisown. Fromtheleftside,heresembles ShoheiOhtani,hittingaround.300 andpostinganOPSnear1.100.His OPSasarightyisbelow.750. Nonetheless,theRedshaven’t evenconsideredthepossibilityof DeLaCruzditchinghisswitch-hittingaspirations.Thepotentialupsideistoohigh. “Hestruggledsome,buthe’s

26Chicken tenders?

28Victorian, forone

32Hogwash 33Civilrights leader Medgar

35Matching 36Bringtobear

31“Still mooing,”so tospeak 34Mammal withthe densestfur 35Retailgiant begunin1892

38Advocatefor theTruffula Trees

41Mushroom’s stipe,e.g.

42Titleof respectthat’s ananagram of6-Down

45It’shardon yourteeth

47“Ooh,sick burn!”

50Matches,ata pokertable

53Bookish bunch

54Halfofhex55Second personinthe Bible?

56Result

57Soba alternative

59Carrying waytoomuch, andapunny description offourAcross answersin thispuzzle

62Depend 63Fitforaking 642023’s“Cop Slide,”e.g. 65Lake borderingfour statesand oneprovince 66Loseground? 67Ultimatum word Down 1With 23-Across, adrenaline injectorbrand 2No-brainers? 3HitCtrl-V again 4Keyrings? 5Fossey’sfield 6Titleof respectthat’s ananagramof 42-Across

7“Iwasoutof townthat night,”e.g. 8Tricks,slangily 9Collegetown ontheshore ofCayuga Lake 10“Incidentally...,” online 11“Allowmeto emphasize...” 12Wellmixed 13“TheFaerie Queene” writer 18Some necklines 22Tuneuptarget 24Draftpick? 25Littleangels

22-years-old,”Krallsaid.“He’s makingadjustments.”

Givenalltheotherchanges thathavesweptacrossthesport overthepast30years,perhaps it’snosurprisethatswitchhitting isquicklyjoiningpitchersatthe plateandfour-pitchintentional walksasquirksofthegamegone by. Baseballhasbecomeobsessed withspecialization—reliefpitchers seeminglydesignedinalaboratory toneutralizecertaintypesofbatters,defensivewizardswhosesole purposeistocomeoffthebench attheendofgames,dedicated platoonsinkeyspotsofthe lineup.Thatapproachstretchesall thewaydowntotheamateur ranks,whereyoungplayersare

toldtoidentifytheirstrengthand focusonmaximizingitratherthan improvingtheirall-aroundskills. ToJefferson,that’sexactlythe problem.Increasingly,youth coachesarediscouragingplayers fromexperimentingwithswitch hittinginanefforttowinmore games.Jefferson,whonowworks asaplayeragent,sayshehasencouragedhisswitch-hittingclients tostickwithit,evenwhenthey haveexpressedadesiretoletit go.

“You’vegottostartatayoung age,andyou’vegottobewilling todealwiththefailure,”Jefferson said.“It’sahugeadvantage,andI thinkthegameiswrongfornot encouragingmoreguystodoit.”

Just9.5%ofplate appearancesthisyear havebeentakenby switchhitters.

Itwasn’talwaysthatway. Jones,theAtlantaBraveslegend whoputupsimilarstatsfrom bothsidesoftheplate,saidhisfatherinsisteditwouldmakehim moreversatileandhelphimstay inthelineupeveryday.

InJones’sera,theideaofa power-hittingswitchhitterwasn’t suchararity,withsluggerslike BernieWilliams,MarkTeixeira, CarlosBeltrándottingtheMLB landscape.Afewofthoseplayers remain,likeDeLaCruzandJosé RamírezoftheClevelandGuardians.Buttoday’sswitchhitters tendtobespeedyslaphitters lookingtotakeadvantageoftheir legsbybattingfromtheleftside, whichisclosertofirstbase.

Moreandmore,however,playersaredecidingthatit’sdifficult enoughtosucceedasabatter fromonesideoftheplatewithout tryingtohitfromtheotheras well.

Forthosewhoattemptit,the priceishoursandhoursofextra workinthebattingcage.Switch hittersneedtohoneandmaintain twodistinctswings,eachwithdifferentmechanicalflaws.

“EssentiallyI’mtwohitters,” Lindorsaid. Thequestionlatelyiswhether he’dbebetteroffjustbeingone.

TheBeekeeperWhoSaved AMajorLeagueBaseballGame

BY ROBERT O’CONNELL AND JARED DIAMOND

THECEREMONIALFIRST pitchisanhonorusuallybestoweduponacertainclass ofcelebrity.Butwhenthe ArizonaDiamondbackswere settostarttheirgame againsttheLosAngeles DodgersonTuesday,aftera lengthydelay,theydidn’t trotoutafamousmusician orabelovedretiredplayer tolobtheballinthedirectionofhomeplate. Instead,themanstandingonthemoundwas dressedinthefullballooningarmsandflappingheadgearofabeekeepingsuit. That’sbecauseMattHilton, aBlueSkyPestControlmanagerinPhoenix,wasthe onlyreasonbaseballcould beplayedatChaseFieldthat nightatall.

Thetroublebeganshortly beforethecontest’sscheduledstarttimeof6:40p.m., whenaswarmofbees buzzedinamassatthetop edgeoftheprotectivenettingbehindhomeplate.It wasaninsectinfestation straightoutoftheinfamous playoffgameinClevelandin 2007,whenahordeofLake EriemidgesattackedNew YorkYankeespitcher JobaChamberlain. Onlythisonehad thepotentialtobe muchmorepainful.

Aboutfiveminutes beforetheumpires weresettoshout,“Play ball!,”MikeRock,theDiamondbacks’vicepresident ofballparkoperations,receivedaphonecallfromKat McDonald,theseniormanagerofeventservices.She informedhimthatthestadiumhadsuddenlybecome anapiary.

WhenRockaskedhow manybeeshadlandedup there,McDonaldresponded, “Hundreds—nowait,thousands!”That’swhenheknew hehadaproblemonhis hands.TheDiamondbacks stalledthegame,surveyed theiroptionsandputina calltoBlueSky,theircorporatepartnerforpestcontrol.

AswarmofbeesinArizona.

“Ididmakeacalltoa competitor,justtosee,‘Are youcloseby?’”Rocksaid. ButitwasHilton—who waswatchingthefirstinningofhisson’sfinaltee ballgameoftheseasonin nearbySurprise—whose phonestartedbuzzing.He jumpedinhistruckand drovetheroughly35miles todowntownPhoenix,talkingthroughthelogistics withtheDiamondbacksen route. Withthepollen-richair, thisisprimeswarmingseasonforhoneybees,said SteveBuchmann,anadjunct entomologyprofessoratthe UniversityofArizona.But they’reusuallyso“gorged withhoney”thattheystick

hadn’tarrivedquickly,Rock said,thegamewasindangerofbeingpostponedaltogether.

WhileHiltonwasonhis way,thecrowdof28,667begantocheerasamemberof theChaseFieldgrounds crewbroughtoutascissor liftandprepareditforthe beekeeper’sarrival.Thepublicaddressannouncerinstructedfansto“please ‘bee’patient.”“LetItBe” playedoutacrosstheballpark.

“Itwaselectric,andit wasanexperienceIdon’t thinkwewilleverhave again,”DiamondbacksPresidentDerrickHallsaid.

Finally,Hiltonarrived. Sprayingandthenvacuumingupthebees,Hilton workedwhileaneager crowdobservedandapplauded.Thesoundsystem eggedthefanson,pipingin theBonnieTylersong“HoldingOutforaHero”whilehe removedtheDiamondbacks’ newblackandyellowguests. (Thebeeswerelaterreleasedinasafeplaceoff site.)

Finally,nearlytwohours afterthescheduledstart time,thebuzzingthronghad beenclearedandthegame wasscheduledtostart.The waitwassolongthattheDiamondbacksscratchedstartingpitcherJordanMontgomery.

Therewasjustonemore thingtodo.ThoughtheDiamondbackshadalreadygone throughtheirtypicalpregameceremonieshoursearlier,theythoughtitwas onlyfittingtohaveanotherfirstpitch—with Hiltonthrowingitout. “Ididn’tfeelvery prepared,”Hiltonsaid. “I’mnotthebest throwerintheworld,but Igaveitashot.” Theactualbaseballgame thatfollowedmighthave failedtoliveuptothepregameshow,buttheDiamondbackswonona10thinning,walk-offhomerun. Theteam’sXaccount knewjusthowtocelebrate: “CANYOUBEE-LIEVEIT?!?”

NewYorkMetsshortstopandswitchhitterFranciscoLindorhasstruggledasaleft-handedbatter.

Matt Hilton threwout thefirst pitch.

OPINION

Cookie-CutterCampusProtests

WONDER LAND

ByDaniel Henninger

Theremustbe somethingin thegenepool ofthehard politicalleft inthiscountry.Eventually,theviolencearrives. OnSaturday,Columbia Universityadministratorswroteinanemail thattheywouldn’tcallinthe NewYorkCityPoliceDepartmenttoavoid“furtherinflaming”whatwashappeningon theirbesiegedcampus.ColumbiaPresidentMinouche Shafik,theysaid,was“focusedonde-escalatingthe rancoronColumbia’scampus.”Naturally,theunrestrainedleftescalated.

EarlyTuesdaymorning, pro-Palestinianactivistswearingmasksandall-blackantifa-likeclothingbrokeinto andtookoverHamiltonHall, believeitornothometoColumbia’sstill-extantClassics Department.Themilitantsset upbarricades,smashedwindows,everythingwe’vecome toexpect.

Columbia’sGaza encampmentinvaded HamiltonHallthis weekviaInstagram.

At9o’clockthatevening, theNYPDarrivedinmassive numbers,enteredHamilton throughasecond-floorwindow,arrestedthe“students,” andputthemonpolicebuses. Withluck,they’llactuallybe prosecutedbyManhattanDistrictAttorneyAlvinBraggand expelledfromColumbia.These copswereoncecalledNew York’sFinest,andthiswasone oftheirfinesthours.

Soitreallyis1968allover againor,morerelevant,2020 andtheGeorgeFloydprotests.

PoliceofficersatColumbiaUniversity,April30.

TheFloydprotestsspreadalmostinstantaneouslytohundredsofU.S.cities,justasthe so-calledGazasolidarityencampmentssproutedonmany campuses.Itisn’tspontaneous.Thisismodernprotestas producedbythecookiecutter ofsocialmedia.

At1a.m.Tuesday,agroup calledColumbiaUniversity ApartheidDivestpostedonInstagramacallforan“urgent mobilization”atHamilton Hall.Earlier,thegroupsaid: “WewillnotmoveuntilColumbiameetsourdemandsor wearemovedbyforce.”This waseffectivelyamini-Hamas strategy—givetheauthorities nochoicebuttocomeafter you.It’sthemostbasicflipthe-scripttactic:Theperpetratorsofmayhemtransform themselvesintocamera-ready victimsof“stateviolence.”

AnarchylikethisisanopportunityfortheU.S.’senemies,andonehopestheFBI andDepartmentofHomeland SecurityhavethisPalestinejusticeactivityonitsradar. Whywaitforanotherdomesticactofterrortohappen?

Theencampments’defenderswillsaythatisanoverreaction,thatdespitetheviolenceatColumbiaandUCLA, theirprotestsareonlyabout conditionsinGaza.Thefact remainsthatGazaisinseparablefromHamasandIran,two entitiesinanetworkdedicated toattackingtheU.S.Addto thattherevivedterrorism unitsofIslamicState.Allofa sudden,wehavepro-Palestinianencampmentsspread

acrossacountrywithaporous,overwhelmedsouthern border.Nottoworry?

Itisworthaddressingthe notionthatmostofthestudentprotestersarepeaceful kidsmovedonlybyconcern fortheGazans.Forsome,possiblyso.Still,weliveinan ageinwhichmediadriveseverything,anditisdifficultnot toseehowadeptlythemedia hasbeenmanipulatedto shapepublicimpressionsof theencampments.

AlmosteverytimeaproGazastudentgetsaccesstoa mediamicrophone,onehearsa blandcommitmenttonothing morethaneasingthesuffering ofPalestinianwomenandchildren.Itsoundsrote,almost scripted.Whatseemstobegoingonhereisaconscious strategytoestablishanequivalenceofsincerity—afacadeof empathyisalwaysmandatory now—betweenthepro-PalestinianstudentsandtheJewish studentsresistingantisemitismonthesecampuses.

Theprotestersknowthat theirhighlytheatricalencampmentswillgenerateinterviews.Iftheycanrepeat earnestdeclarationsofhumanitarianconcernoften enough,anequivalenceofsinceritybetweenthemandJewishstudentswillcometodominatethemedianarrative. Thatequivalenceinturn achievesanothergoal:suppressingthehistoricalcontext ofthesecampusprotests.

Theimpossiblemissionof Israeli-Palestiniannegotiationsisdefinedbythenames

ofhistory:PresidentsBillClinton,GeorgeW.BushandBarackObama;Israeliprime ministersYitzhakRabin,Ehud Barak,ArielSharonandBenjaminNetanyahu.Palestinians’ interestsfordecadeswere representedbytheever-unreliablePLOChairmanYasser Arafatandnowthe88-yearold,near-irrelevantMahmoud Abbas.Thelistofnegotiatedand-violatedagreementsis long:Oslo,Gaza-Jericho,Wye, SharmEl-Sheikh,CampDavid, Annapolis.

Thestudents’naivetéand willful“rivertothesea”ignoranceabouttherealitiesofthe MiddleEastpeaceprocessis thebenignexplanation.More cynicaliswhathasemerged thepastweekastheactivists’ primaryinterest:forcinguniversityendowmentstodivest fromIsraelicompanies.

Thishaslittletodowiththe aftermathofOct.7.TheantiIsraelBDSmovement—boycott,divestment,sanctions— emergedaround2005.Itsmost pernicioustacticwastobanIsraelischolarsfromconferences atU.S.universitiesandelsewhere.Whenpeoplesayantisemitismhasbeenbuildingin universitiesforyears,thisis whattheyaretalkingabout. BDSmadeIsraelisshunned, second-classcitizensoftheacademiccommunity.

Thenthere’sJoeBiden.Becausehisre-electionteamassumesanequivalencebetweenyoungerDemocratic votersandtheGazaencampmentoccupants,theAmerican presidenthashimselfbecome ahostagetothehardestof theU.S.hardleft.Hewon’t crossthem,andtheyknowit. WhenMr.BidengetstoChicagoinAugustfortheDemocraticconvention,uber-left MayorBrandonJohnsonwon’t havethecops’backtheway NewYork’sEricAdamsdid thisweek.Oncurrentcourse, theBidencandidacycoulddie thissummerinChicago.

Writehenninger@wsj.com.

TrumpTauntsBidenOverFallDebates

ByKarlRove

WhenPresidentBiden toldHowardStern lastFridaythathe’d be“happytodebate”Donald Trump,theformerpresident immediatelyrespondedon TruthSocial:“Everyoneknows hedoesn’treallymeanit,but incasehedoes,Isay,ANYWHERE,ANYTIME,ANYPLACE.”

Theymayormaynotagree toparticipateinthethree eventsproposedbytheCommissiononPresidentialDebates.Thesewouldtakeplace Sept.16atTexasStateUniversityinSanMarcos,Oct.1at VirginiaStateinPetersburg, andOct.9attheUniversityof UtahinSaltLakeCity. AftertheSterninterview, TeamTrumptriedpressuring thecommissiontomoveupits scheduleandaddmoredebates.Whenthecommission refused,theTrumpcampaign invitednetworkstohostdebatesindependently“assoon aspossible.”Thatwon’tgo anywhere,notleastbecause Mr.Bidenwouldneveragree. Still,Mr.Trumpgainedtwo smalladvantagesfromthe back-and-fortharoundthe Sterninterview.First,hetook theopportunitytobuildpublic interestinseeingthetwomen tangle.Voterslikepresidential debatesandnowexpectthem. AndwhileMr.Trumpiscapableofblowinghimselfup,it’s likelyhe’ddowellagainstthe obviouslyancientMr.Biden. Second,ifdebatesdon’t

materialize,lastweek’smomentofcontroversyhelped buildthecasethatit’llbeMr. Biden’sfault.Thiscouldhurt himwithvoters,especiallyif journalistspressthepresident onwhyheduckedachanceto goheadtoheadwithhisopponentinaliveevent.Tobe sure,itdidn’thurtMr.Trump whenheskippedoutonthe GOP’sfive2024primarydebates.ButunlikeMr.Trumpin theprimaries,Mr.Bidenisn’t theoverwhelmingfavoritein November.

Still,evenifduckingthedebateswouldhurtMr.Biden, it’sdifficulttoseehowparticipatinginthemwouldhelp him.Maybeexpectationsare solowthatapassableperformancewoulddrawravepress reviewsandgrudgingacceptancefromswingvoters.But hispublicappearancesareriddledwithgaffes,verbalmisstepsandincoherentsentences.Mr.Trumpcanalso makeunhingedcomments,but heusuallyshowsmoreenergy. Let’shopepresidentialdebatestakeplaceanyway. They’veplayedanimportant roleinU.S.democracy.Sen. JohnF.Kennedy’stelegenicappearancein1960helpedhim winarazor-thinelection.PresidentGeraldFord’sblooperin October1976that“thereisno SovietdominationofEastern Europe”stoppedhisupward movement.Andin1980’ssole debatebetweenJimmyCarter andRonaldReagan,Reagan parriedMr.Carter’sattacks withgraceandwit,causing

undecidedvoterstoswinginto hiscolumn.

Debatesaren’talwaysdecisive.PresidentBarackObama recoveredfromadisastrous firstonewithMittRomneyin 2012andwoneasily.Sen.John McCainprobablywouldn’t havewonin2008ifhehad beenoneofhistory’sgreatest orators.ThesameforWalter Mondalein1984.Butinatight racelikethisone,debates couldreallyswingthings.

Willthetwomenface off?Ifso,whynotdoit thewayKennedyand Nixondidin1960?

It’struethatinthelasttwo elections,thequalityofthese eventsdeclined,duemostlyto Mr.Trump,amanofunregulatedemotions.Debatesnow haveanairofspectaclemore appropriatetorealitytelevisionthantoagreatnation choosingitsleader.Wehave mobsofdonorsandcheerleaders,partybigwigsandcorporateunderwritersinagigantic auditorium,hootingandhollering,with“specialguests”invitedtounsettletheotherside. It’sdistractingandjuvenile.

Sowhynotreturntohowit allbegan?Thefirstpresidentialdebatesbetweentheparties’nominees,Kennedyand Nixonin1960,weredonein smallTVstudios.Onlythe moderator,apanelofjournal-

istsandahandfulofnetwork executiveswerepresent.

Areturntosimplicitywould meanfewerdiversions—no cheeringorplayingtothe cheapseats,sincethere wouldn’tbeany.Amoredignifiedsettingmightmakeit costlierforcandidatestoact up.Itwouldbeeasierforthe moderatortoaskfollow-up questionsandgiveeachcandidateequaltime.Ifdebates lookedlesslikeaprofessional wrestlingmatchandmorelike aseriousdiscussion,voters mightgetaclearersenseof whowouldbeabetterpresident.Asimplersettingcould evenhelpMr.Trumpswayundecidedvoterswhojustwant tohearwhathe’ddoaboutinflation,theborderandthe worldwithoutthedramaand rage.

Ourpoliticsarebrokenata timewhenthenation’schallengesarelargeandimportant.Arealconversationbetweenthesetwomenonhow they’dleadAmericacouldhelp restorepublicconfidence.It mightevenhelpvotersbelieve theyhaveworthychoices. Therearelimitationstohow high-mindedadebatecould be,butweshouldwelcome anythingthatevenmarginally improvesthedegradedstateof ourpolitics.

Mr.Rovehelpedorganize thepolitical-actioncommittee AmericanCrossroadsandis authorof“TheTriumphofWilliamMcKinley”(Simon& Schuster,2015).

TheStockMarketCouldBeCalmer

ByJeffYass

Manyobserversarepuzzledbythelackofvolatilityinthestock market.Fromthewarin UkraineandOct.7topolitical dissensionandinflationat home,thereareplentyofreasonstobejittery.Whytherelativelycalmmarkets?

Considerthatabasketof 500stockswouldhardlyfluctuateifitscomponentswereindependentofoneanother,evenif eachindividualstockwasvery volatile.Suchisthebenefitof diversification.Thesameisn’t necessarilytruewhenanearly $9trillionGoliath,otherwise knownastheFederalReserve, entersthemarket.

AttheendofMay9,2023, theoptionsmarketimplied thatitwouldriseorfallapproximately1.5%basedonthe releaseoftheAprilconsumerprice-indexdatathefollowing day.Fora$44trillionmarket,

TheFed’sinterference createsvolatilityand raisescapitalcosts.

thatamountsto$660billion ineitherdirection.Thiscould happenonlyifstocksmoved largelyinlockstep,i.e.,ahigh correlationbetweenoneanother.TheFedcancreatethat outcomebetterthanreces-

sions,boomsorbustscan, thankstoitsabilitytobuyor selltrillionsofdollarsof Treasurys.

TheFedhasrecentlycalmed downbynotinjectinghuge amountsofmoneyintothe bondmarkets.Thishasmeant thatthecorrelationamong stocks,onascaleofzeroto 100,droppedfromthemid-40s tothemid-teensinabouta year.Mathematically,this meansthatthevolatilityofthe marketshasfallenfromabout 21%inMarch2023to12%today,eventhoughthevolatility oftheaveragestockisnearly unchangedatabout31%.

Economistsgenerallyassumetheequityriskpremium—ortheamountofextra

WhileYou WereOut

TheKingofDiamonds ByRenaPederson PegasusCrime,416pages,$28.95

Inclassiccop-speak,thebold,agileperphadaprac-

ticedM.O.,ormodusoperandi.Thejewelthiefwould approachoneofthemansionsofDallas’soilandtech millionairesatnightfromanearbycreekorwoodedpath, firstcallingaheadtomakesurethefamilywasout.He’d scaleaboundarywall,jimmyopenaslidingglassdoorto thegardenandcreepupthestepstothemasterbedroom, wherehe’dfindthejewelboxinwhichtheladyofthe housekeptthenecklaces,rings,broochesandearringsshe flauntedattheballsandgalassopopularwithBigD’s new-rich.Thefamilydogsneverbarkedattheintruder, wholeftwaffle-patternedfootprints.

Thethiefdidn’tgrabitall,butcarefullysnatchedthe bestpieces,leavingthedrossbehind.Shouldthecouple happentobeathomeandawakenedbyhispresence,he’d shinehisflashlightintheireyessotheycouldn’tseehis faceashedartedoff.Intheearly1960s,histakeranto$6 million;duringonespanin1961,helootedsixhomesfora $1.4millionhaul(allintoday’smoney).Hewaspromptly crowned“TheKingofDiamonds.” That’salsothetitleofRenaPederson’ssagaofthemasterthief’srampagethroughDallasandnearbyFortWorth morethanahalf-centuryago.Ms.Pedersonistheauthor offivebooksandtheonetimeeditorial-pageeditorofthe DallasMorningNews. Deeplyresearchedandfluidlywritten,herbookis somethingofashaggy-dog storyshortofhirsute poochesthatmeandersto thecircumstantialrevelation oftheculprit. Thevoidisfilledbyadetailedsocialhistoryofthe ClintMurchisons,H.L.Hunts, JimmyLingsandother primecustomersofDallas’s flashynewNeimanMarcus emporiumandtheparallel taleofthecity’smobdrenchedunderworld,partof the“DixieMafia.”Alongthe way,therearevisitstotheTopO’HillTerracecasino,the localgamblingmecca,andtheCipangoClub,“amixofEl MoroccoandRick’sCafe”renownedforits“allyoucaneat forathousanddollars”cuisine.

Therearecameoappearancesby,amongothers,Jack Ruby,thekillerofLeeHarveyOswald;JosephCivello,the mobbossofDallas;thestripperCandyBarr;andNFLstars PaulHornungandAlexKarras.Omnipresentarethecity’s earnestbutovermatchedcops,whosephoneswouldregularlyjanglewithnewsofthelatestbreak-in.“Becausehe evadedthepoliceforsolong,theKingofDiamondswasa superstarinburglaryranks,”writestheauthor.“TheHoudiniofthieves,invisibleasaghost,light-footedasFred Astaire,andabletodisappearintothenightbeforeanyone knewhewasthere.”

Ms.Pedersonchattilyinjectsherselfintothenarrative, quizzingvictimsandpotentialsuspectsaswellasthe cops.“Inmyownway,IwasasunassumingasAgatha Christie’srumpledMissMarple,”sheconfides,“butwithoutthehatandknitting....Afteryearsofnewspaper work,I’dlearnedhowtoaskquestionsandreadfaces.You couldsayI’dbeen around—oratleastnearby.”

TheKingpulledoffoneofhisflashiestjobsearlyinhis run,in1959,whenhehittheDallashomeofBrunoGraf,a Germanémigré,andhiswife,Josephine,anoilheiress. Theirmansion,designedbyEdwardDurellStone,resembledStone’sAmericanembassyinNewDelhi.Thesplashy dining-roomtablewasonaplatformsurroundedbya4foot-deepmoat,whichmadefornoveltabletalkifprecariousseatingandeating.

Onthenightoftherobbery,theGrafsstayedlateat— whatelse?—theJewelBallinFortWorthanddidn’trollin until3a.m.Exhausted,JosephineGrafstashedherjewelry inadressing-tabledrawerinsteadofthesafe.Whileshe snoozed,theKingcreptinandpocketedthegemsshe’d worntothedance—adiamondnecklace,earrings,ajeweledpinand,astheauthordescribesit,her20.4-carat ring“asbigastheAlamo,”ahaulworth$2.2million today.

moneyyoucanexpecttomake forbearingrisk—isabout25 basispointspervolatility point.A10%increaseinvolatilityincreasestheexpected returnorcostofcapitalby 2.5%.That’soneoftheunintendedconsequencesofthe Fed’sinterferinginthemarket—withoutwhichwecould expectmuchlowervolatility. Highercostofcapitalmeans lessinvestment,whichresults infewergoodsandservices thattheworldneeds.

ToparaphrasetheBeatles, allwearesayingisgivefree marketsachance.

Mr.Yassismanagingdirectorandaco-founderofSusquehannaInternationalGroup.

Earlyon,Ms.Pedersonintroducesustolikelythetwo unhappiestmenontheDallaspoliceforce:Capt.Walter Fannin,theheadoftheburglary-and-theftdepartment, andoneofhiscrackdetectives,theswaggeringPaul McCaghren.LikeRosencrantzandGuildensternin“Hamlet,”theyarefrustratedcharactersinthedrama,more oftenperplexedthannot.

Overtime,thecopsinterviewedmorethan2,000people andgavelie-detectorteststosome200ofthem.But becausesomanyofthetheftswereassociatedwithsocial events,thepolicebeganfocusingonpotentialsuspects fromthatworld—frequentescortsatdebutanteballs, eventplanners,florists,cateringstaffandothersinvolved withtheposhgalas.

Anathletic,social-climbingdoctordrewattention,along withaninteriordecorator,ahairstylistwhoprimped manyofthevictims,anItaliangalleryownerwhomade bustsofwealthypatronsintheirhomes,andalocaldoyennedescribedas“acrossbetweenAuntieMameand LadyMacbeth”whomighthavedirectedayoungaccomplicetostealthejewelry.Thecopsalsosuspecteda notoriousgigolo,pimpandgambler.Theyfollowedthe burglar’sfootprintshometoahouseownedbyamanfrom aprominenthardware-storefamily,onlytobestymiedby protectivepoliticians.

“TheKingofDiamonds”endsinconclusivelywiththe authorspeculatingthatthetheftsactuallyinvolvedthree ofhercharacters—onewhogottheoriginalideaandthen teamedupwithtwoothers.Still,it’squiteayarn.“When peoplelookbackontheKingofDiamondsera,”Ms.Pedersonconcludes,“theydon’tremembertheexcesses—and inequalities—asmuchastheyrememberthegreatflair andstyle.Theyrememberthelarger-than-lifecharacters wholivedwithgusto,partyingasiftherewereno tomorrow.”

Mr.Kosneristheauthorof“It’sNewstoMe,”amemoirof hiscareerastheeditorofNewsweek,NewYorkmagazine, EsquireandtheNewYorkDailyNews. Healwayscalledahead,makingsurenoone washome.Duringonelucrativestretch,he lootedsixhomesfora$1.4millionhaul.

PowellIsn’tTooWorriedAboutInflation I

fJeromePowellisworriedaboutaccelerating inflation,hesuredidn’tshowitathispress conferenceWednesdayaftertheFederalReserve’slatestpolicymeeting.

TheChairmanexpressedconfidencethatprices willsoonresumefallingtowardthecentral bank’s2%target,despiteaninflationaryreboundinthefirst quarter.Youmightevensayhe thinksthisrecent increaseis“transitory,”toborrow aphrasefrom2021hedidn’tuseWednesday.

TheFedChairmanoffers asunnyviewabout pricesandtheeconomy.

TheFederalOpenMarketCommitteemaintaineditsinterest-ratetargetforfedfundsat 5.25%to5.5%.Thishadbeensignaledafterthe inflationreportforMarch,whichcameinhot ata3.5%annualrate.ButMr.Powellsaidcurrent monetarypolicyisrestrictiveenoughtobring downprices,andhetookarateincreaseoffthe table:“It’sunlikelythatthenextpolicyrate movewillbeahike.”

Sowhythefirst-quarterpricerebound?His analysisfitstheFed’sviewthatmostofthepandemic-erainflationwasn’tcausedbyeasymonetarypolicy.It’stheresultofsupply-chaindisruptionsthatstillhaven’tentirelybeenfixed, especiallyforgoods.ThishelpstheFedexplain whythedeclineingoodspriceshasallbut stopped,afterhavingdrivenmostoflastyear’s inflationdecline.Mr.Powellalsocitedthestatisticallagincalculatingshelterprices,asrentsare nowrisingmoreslowly.

Buthisviewthatmonetarypolicyisrestrictiveseemedatoddswithhislistofsunnyeconomicstatistics.Heevendiscountedthefirst quarterslowdowninGDPgrowthto1.6%asundersellingeconomicstrength.Andhesaidthe labormarketcontinuestobetight,iflessso thanayearago.

Askedaboutthetalkof“stagflation,”which

Wisintheairsincethefirst-quarterreport,Mr. Powellsaid“Idon’tseethestag,orthe’flation.” Weagreethatgrowthcanco-existwithdeclininginflation.Butpricesareno longerfallingandassetprices arehighandinmanycasesrising.(Seecopper.)

Themarketsnonetheless lovedtheChairman’scomments.Equitiesjumpedabout 1%beforefallingbackattheclose.Awashout insemiconductorfirmssentthebroadermarketdown.

MarketsalsoseemedtocheerMr.Powell’s announcementthattheFedwillslowdownthe paceofassetrunoffonitsbalancesheet.The FedwillreducethedeclineinitsTreasuryholdingsto$25billionamonthfrom$60billion, startinginJune.Investorsperceivethisslower rateof“quantitativetightening”asaformof monetaryeasing.

TheFedwillkeepitspaceofdeclineinmortgage-backedsecuritiesatacapof$35billion amonth,thoughthatcapisrarelyreached thesedays.TheselloffinMBSsisconstructive sincetheFedshouldgetoutofthebusinessof capitalallocationbyfavoringhousing.The problemwithhousingthesedaysisashortage ofsupply,notalackofdemand.TheMBSpurchasesareanartifactofthe2008housingbust andshouldlongagohavebeenworkedoffthe Fed’sbalancesheet.

Mr.Powell’sdovishbetonpriceswillbewelcomeintheWhiteHouseandTreasury.Bond yieldsfellontheFednews.PresidentBiden needslowerratesforconsumerconfidence,and TreasurySecretaryJanetYellenneedsthemto financethemassivefederaldebt.Let’shopethe Fed’sinflationconfidenceisn’tastransitoryas itwasin2021.

Good-ByetoPermittingReform

hypasslawswhentheBidenAdministrationignoresthem?Thelatest exampleisanewrulethatpurports tocodifypermittingreformin Congress’sdebt-ceilingdeal lastyear.Instead,therulecreatesapocketvetoforfossilfuelsandpublicworkswhile rubber-stampinggreenprojects.Permittingreformfor we,butnotthee.

Biden’snewrulegives greenprojectsapass butnotpublicworks.

Membersofbothpartiesagreethe1969NationalEnvironmentalPolicyActneedlesslydelaysandincreasescostsforprojects.Housing, roads,pipelinesandenergyprojectsareroutinelystuckinthelaw’squicksand.Eventheclimatelobbyfretsthatpermittingwoesholdback itsgranddesigns.

Buildingtransmissionlinestoconnectsolar andwindprojectstothegridcantakeadecade. Renewableprojectsstallwhentheyintrudeon endangered-specieshabitats.Lastyear’sdebtceilingdealincludedmodestreformbyimposingpagelimitsonrulesandashotclockonenvironmentalreviews.

TheAdministration’snewruleignoresthe lawbymakingiteasytokillprojectsthatprogressivesoppose.TheWhiteHouseevenhad thenervetocallits489-pagebeautytheBipartisanPermittingReformImplementationRule, thoughthere’snothingbipartisanaboutit.

Therulewillrequireregulatoryagenciesto assessaproject’sindirectandcumulativeeffectsongreenhouse-gasemissionsratherthan merelyitsdirectenvironmentalimpact.So agencieswillhavetotallythemanydecadesof emissionsthatwouldpotentiallybecausedby thecombustionofnaturalgastransportedby aproposedpipeline.

Theywillalsohavetoidentify“reasonable

Ualternatives”that“avoidorminimizeadverse effects,”includingCO2emissions.Fossil-fuel projectscanberejectedifagenciesdecreethat renewablealternativesare betterfortheclimate.Regulatorscouldusethesame logictovetohighwayexpansionsbecausemoremass transitmightresultinfewer emissions.Agenciescould vetosuburbanhousingprojectsbydeciding thattherewouldbefeweremissionsifpeople livedincities.

Therulewillalsorequireregulatorstoconsidertheimpacton“environmentaljustice” communities—i.e.,racialandethnicminorities—andconsult“IndigenousKnowledge” whose“specialexpertise”willbegivenequal standingtothatofagenciesliketheNational MarineFisheriesService.

Thatis,unlessyou’rearenewableenergydeveloper.Theruleprovides“categoricalexclusions”fromenvironmentalreviewsforprojects thatagenciesdeterminewillhaveminimalimpactontheenvironment.Regulatorswillbethe judgeofwhatis“minimal.”

SenateMajorityLeaderChuckSchumer promisedWestVirginiaSen.JoeManchinhe’d takeuppermittingreforminreturnforsupportingtheInflationReductionAct.ButDemocratsinCongressblockedsignificantreforms, andnowtheAdministrationgutseventheminorreformsintheIRA.

“Onceagainthey’vedisregardedthedeal thatwasmade,theintentofthelawthatwas signed,andareinsteadcorruptingitwiththeir ownradicalagenda,”Mr.ManchinsaidTuesday. “Thiswillonlyleadtomorecostlydelaysand litigation.”He’sright,butheshouldhaveknown hewasbeingtakenforaride.

The‘OutsideAgitators’onCampus

niversitiesacrosstheU.S.arefinallyinvitingpolicetoclearoutprotestersviolatingschoolrules,butthat’snotthe endofthisstory.Recentdayshaveshownthat theprotestsaren’tmerelyburstsofstudent moralconcernaboutGaza.They’reoften guidedbyprofessionalleftistgroupsexploiting studentstofomentchaosandintimidatePresidentBiden.

OnTuesdaynightintoWednesday,theNew YorkPoliceDepartmentpeacefullyextricated protesterswhohadbarricadedthemselves intoHamiltonHallatColumbiaUniversityas wellasthoseattheCityCollegeofNewYork. Nearly300werearrested.Morethan30protestershavebeenarrestedattheUniversity ofWisconsin,Madison,35atCalState,72at ArizonaStateand100atWashingtonUniversityinSt.Louis. Schoolsaredoingtherightthingwhenthey callthepolicetoreestablishorderoverunruly mobs.Arobustfree-speechpolicydoesn’tconflictwithrequiringstudentstofollowcampus policiesorfaceconsequencesforactionsthat threatenJewishclassmates.

Thekeyishavinglinesthatareclearfrom thebeginningandthenenforcingthem.Inaletterthisweek,UniversityofChicagoPresident PaulAlivisatoswrotethatfreeexpressionisa “coreanimatingvalue,”andtheschoolwillact toprotect“evenexpressionofviewpointsthat somefinddeeplyoffensive.”Butalineisdrawn againstexpressionthat“blocksthelearningor expressionofothers”or“disruptsthefunctioningorsafetyoftheUniversity.”

Clearprinciplesarecriticalbecausetheprotestsaren’tlikelytoendsoon.Protestnetworks arebuildingandlookingforwardtoasummer

ofloveheadingintotheDemocraticconvention inChicagoinAugust.Organizedleftistgroups arenowpromotingandsometimesleadingthe protestsastheydidatColumbia,accordingto theNYPDandtheschool.

NewYorkMayorEricAdamsexplainedthat theColumbiaconflagrationwasfomentedby “outsideagitators”whohaveneitherthestudents’northeuniversity’sbestinterestsatheart. “Therewereindividualsonthecampuswho shouldnothavebeenthere,”themayorsaid,notingthatthosewhotookoverHamiltonHallwere “ledbyindividualsnotaffiliatedwiththeuniversity,”someofwhomwere“professionals.”

Videosshowprotestersusingtacticsthat aren’tknownbyyouraverageEnglishmajor. VideofromUCLAshowsprotesterssurrounding aJewishgirlknockedunconsciousbyotherprotesters.Thisiswhathappenswhenschoolpresidentsandotherleadersletprotestspersistand grow.Theyareinfiltratedbytoday’sprofessionalclassofleft-wingchaosagents.

Thepatternwillcontinueuntilthoseinauthorityputitdown,andtheschools’disciplinaryprocessismoreimportantherethanany trespassingchargesagainststudents.Those joiningthemobonthequadmaycovertheir faceswithkeffiyehstohidetheiridentityfrom potentialemployers,butviolatingrulesaftera warningwarrantsexpulsion,notmerelyslapon-the-wristsuspensions.

WhiteHouseSpokeswomanKarineJeanPierrehassaidthatantisemitismoncampusis unacceptable,butwhereisPresidentBiden?His moralequivocationonIsraelhastheprotesters thinkingtheycanchangehispolicies.TheprotestsarearunningcampaignadforDonald Trump.

HelpingUkraineIsinFloridians’Interest

IreadMarcoRubio’sletter(“Sen. RubioRespondsonMilitaryAidto Ukraine,”April29)sayinghedidn’t votetoaidUkrainebecausePresident Bidendidn’tacttocontrolourborder. Ibelievethisisanexampleofpoor governance.Theborderhasbeen poorlymanaged,butthatisn’tagood reasontodenymilitaryaidtoanally andopponentofoneofourenemies. Coincidently,todayIreceivedconfirmationofmywithdrawalfromthe RepublicanParty.Ihavebeena Republicansince1961whenIwas21. Thischangewasn’teasyforme.However,Mr.Rubio’sbehaviorregarding theborderandUkrainemakesmefeel alittlebetteraboutmydecisionto becomeanindependent.

WILLIAM H SCHAFFER Windsor,Calif.

Mr.Rubiowrites“Myconstituents electedmetorepresenttheirinterests inWashington.”Well,Iamoneofhis

constituentsanddefenseofUkraineis ofcriticalinteresttomeandmyfellowFloridians.IlivedinKyivin1993, workingforoneofthefirstU.S.businessestoenterthepostcommunist economy.TheUkrainiansImetwere overjoyedtobreaklooseoftheRussianyokeandenjoyfreedom,democracyandcapitalismforthefirsttime ingenerations. Indefendinghisvoteagainstmilitaryaid,Mr.Rubio’sdeflectiontoimmigrationisaredherring.Immigrationisalegitimateissue,butitbears norelationtotheperilthatRussia’s invasionofUkraineposes.Iwould hopethatMr.Rubio,whoseparentshe hasdescribedas“twohardworking immigrantsfromCuba,”wouldbe morecognizantofthethreatanaggressiveandunconstrainedRussia presentstothefreedomofFloridians andallAmericans.

WhatFatherFlanaganMeantby‘NoBadBoys’

JosephEpstein’sop-ed“Brandon JohnsonisNoFatherFlanagan” (April18)offersavalidcritiqueof government’sfailedresponsibilityto protectandsecureitscitizensand theirproperty.However,hemisapprehendsthemeaningandimplications ofFatherFlanagan’sstatement, “Thereisnosuchthingasabadboy.” FatherFlanaganwasrebukingthose inhisera,includingtheeugenics movement,whobelievedthatchildren bornfromthe“wrong”racesor ethnicitiesorotherwisefromthe “wrong”kindsofparentsweren’t worthsaving.Heunderstoodthat Christianteachingrequiresusto treatallpeoplewithdignityendowed byGod.Butthatteachingalsorecognizestherealitiesofsinfulness,and thatdignityrequirestakingresponsibilityfortheharmsflowingfromour sinfulacts.Herecognizedthelegitimacyofpoliceandtheimportanceof enforcingcriminallaws,butheresistedharshandunjusttreatmentof childrencaughtupincrime.Heofferedthosechildrenanopportunity

toliveinanenvironmentwherelove, responsibilityandfaithcouldhelp themdiscovertheirowndignityand thedignityofothers.

AsMr.Epsteinrecognizes, FatherFlanagansuccessfullyturned troubledboysintogoodcitizens.But hisprogramsarerootedinaJudeoChristianfoundationthatrelieson love—ofGodandofneighbor—to motivatechange.Loveisn’tthe strongsuitofgovernmentprograms. Government’stoolkitislimited;itcan provideformaterialneeds,butfear andcoercionareitsprincipaltoolsto motivatebehavior. Acombinationoffearandloveis requiredtoencouragebehaviorthat befitsaflourishingsociety.Themore loveanddignityiscultivated,theless fearisneeded.Thosewhoseekanswersingovernmentprogramsneed toconsiderthetruthpresentedby thelifeandworkofFatherFlanagan.

PROF. EDWARD A MORSE President,FatherFlanaganLeague SocietyofDevotion Omaha,Neb.

GavinNewsomHasaPresidentialRoleModel

RegardingKennethKhachigian’s “WhatEverHappenedtoGavin Newsom?”(op-ed,April23):Mr. Khachigian’scontentionisthatthe Californiagovernorisanempty suit,outofhiselementonthe nationalstage.Thepoorresultsof hisprogressivepoliciesinCalifornia andhislackofsubstancewere alreadyapparenttoanyonenot blindedbyglitz. Americamaydodgethebulletof

TheRotatUniversities BeginsWiththeFaculty

DanielHenninger(“TheCounterRevoltBegins,”WonderLand,April 25)correctlynotesthat“firingthe presidentwon’tclosethebarndoor” ateliteuniversitiesthathavebecome hotbedsofantisemiticandantiAmericanprotestsandintimidation. Butthenextstepshouldnotbeto “firetheadmissionsoffice,”asMr. Henningersuggests.Instead,gofor facultywhoindoctrinatestudents intotheirprogressiveworldview.

Theseprofessorsroutinelyengage inbehaviorthatisunacceptableinan academicsetting.Theydon’tbrook anydisagreement.Theysingleout Jewishstudentsformaltreatment. Theycancelorrelocateclassesto encouragestudentstoattenddemonstrations.TheycelebratetheatrocitiesofHamasasresistancetocolonialsettlersandkeeptheirstudents ignorantofMiddleEasthistory.

Manyoftheirstudentshaveno ideahowlongJewshavelivedin Palestineorwhatriverandseathey arechantingabout.Theyseemoblivioustothefactthattheyaresupportingrapistsandsadisticmurderers.Therotatouruniversitiesis deep.Butitstartswiththefaculty, notthestudents.

JOEL

M ZINBERG NewYork

TheCorporateTaxReality

RegardingPhilGrammandMike Solon’sexcellentop-ed“WhoPays CorporateTaxes?LookintheMirror” (April24):MiltonFriedmanshowed manyyearsagothatthecorporate taxisdoubletaxation.Sincecorporationsarejuristicpersonsownedby shareholders,theirprofitsaretaxed onceatthecorporatelevelandagain atthecapitalgainsordividendlevels. Theoptimalrateforthecorporate taxiszero.

MICHAEL AVARI FlowerMound,Texas

Lettersintendedforpublicationshould beemailedtowsj.ltrs@wsj.com.Please includeyourcity,stateandtelephone number.Alllettersaresubjectto editing,andunpublishedletterscannot beacknowledged.

Mr.Newsomdoingtothecountry whathehasdonetoCalifornia, butneversayneverwhenitcomes topoliticianswithagreatdealof ambitionandegoandlittleelse. ThemanwhomMr.Newsom hopestosucceedintheWhiteHouse wastheepitomeofmediocrity, failingtogaintractioninDemocraticPartypresidentialprimaries fordecades.Thenhehitthejackpot whencandidateBarackObama pickedhimashisrunningmatein 2008.Twelveyearslater,amida pandemicandexhaustingTrump drama,JoeBidenfromhisbasementpeddledareturntonormalcy andekedoutachancetoleadthe freeworldfrombehind. PresidentBidenneverhadstar power.Hedriftedwithpolitical winds,hadnegligibleaccomplishmentsandwasapoororatorwith agiftforplagiarism,hyperboleand falsehoods.Mr.Newsom’sstock maybedownbutMr.Bidenis proofthatlackofsubstancedoesn’t keepanambitiousmediocrityout ofcontentionforever.

DANA DAVIS St.Augustine,Fla.

Bragg’sCaseTaintsOthers

IagreewithKimberleyStrassel’s characterizationoftheso-calledhushmoneycase(“Democrats’‘Election Interference,’”PotomacWatch,April 26).Itsshoddinessdistressesme becausethecasetaintsothersagainst DonaldTrumpthatarelegitimate. TheNewYorkprosecutionaddscredibilitytotheclaimthatallthecases arepoliticallymotivatedandindoing sohelpsPresidentTrumppolitically. DoesPresidentBidenhavethepower topardonMr.Trumpbeforethetrial ends?Thatcouldbepoliticallysmart. JOHN PRIZER Maitland,Fla.

Pepper... AndSalt

“ThisisBorgnerandWesstincott. They’llbeyouroverlings.”

GEORGE KOVAC Miami

OPINION

EPA’sClimateDeceptionWon’tStandinCourt

ByChrisHorner

TheEnvironmentalProtectionAgencylastweekfinalizeda“suiteofrules” governingelectricityproducers.TheEPAfirstannouncedtheseair,soilandwater regulationstwoyearsago,astools toreducegreenhouse-gasemissions byforcingcoal-firedpowerplantsto closeprematurely.Therulesreflect theBidenadministration’s“wholeof government”approachtoimposing itsclimateagenda,whichputsideologicalambitionabovethelimitsof congressionallydelegatedauthority.

Ifthemajor-questions doctrinedoesn’tkillit,the ‘ruleagainstpretext’will.

SoonaftertheEPAannounced thisplanin2022,theU.S.Supreme Courtin WestVirginiav.EPA struck downtheObama-eraCleanPower Plan,whichalsosoughtwhatthe agencycalls“generationshifting,” fromfossilfueltorenewables.The courtfoundnoevidencethatCongresshadgrantedtheEPAthe sweepingpowerof“decidinghow Americanswillgettheirenergy.” Thissignaledtroubleaheadforthe Bidenstrategy,whichreliedonwhat wasalreadycreativerulemakingin theexpresspursuitofpreciselythat goal. Followingthatdefeat,theEPAlaboredtoshieldtheserulesfromthat sameconstitutionalchallenge.Buta standardemployedbytheSupreme

Courtagainstsupposedlydeceitful conductduringtheTrumpadministrationshoulddoomtheeffort.

Inspeechesandcongressional testimony,EPAofficialsdescribed thiscoming“suiteofrules”asusing “allofthetoolsinourtoolbox”to reducegreenhouse-gasemissions. Theycitedavarietyofstatutoryregimes,includingsomewithnoplausibleclaimtobeingvehiclesforreducingairborneemissions,likethe CleanWaterActandasolid-waste lawknownastheResourceConservationandRecoveryAct.

WhiletheCleanPowerPlan’sconstitutionalitywasstillpendingbeforetheSupremeCourt,EPAAdministratorMichaelRegansaidthenew ruleswouldfinishthejobtheplan began.Insayingthattheregulatory blitzwassynchronizedtoshutdown politicallydisfavoredcoal-firedgenerationplants,Mr.Regandescribed coercedretirementsas“thebest toolforreducinggreenhousegas emissions.”

Thatis,thelawswereenactedfor onepurpose,andtheagencyadmitteditplannedtousethemtoachieve adifferentpurpose.

Oursystemofgovernmentfrowns onregulators’lyingabouttheirreasonfordoingsomething.Supreme Courtprecedentisclearthat“an agencymust‘disclosethebasis’of itsaction.”In2019in Departmentof Commercev.NewYork,thecourt addressedallegationsthatthe Trumpadministrationincludeda citizenshipquestioninthe2020 censusforreasonsbeyondthoseacknowledgedintheadministrative record.Themajorityagreedthatto determinetherealfactorsdriving

EPAAdministratorMichaelRegan.

inclusionofthecitizenshipquestion, depositionsofsenioragencyofficialswereappropriate.Georgetown AdjunctLawProfessorJackThorlin hasdescribedthecaseasformally unveilingthe“ruleagainstpretext.”

Thenthecourtruledin WestVirginia,findingthattheCleanPower Plan’sgeneration-shiftinggoalpresenteda“majorquestion.”That changestheinquiryfromwhetheran agencyislawfullyexercisingadelegatedpowertowhetherCongress delegatedsuchapowertothe agencyatall.Themajorityspecificallyruledthatbeforeemploying regulationstocompelplantclosings, theEPAmustshowacleargrantof authorityfromCongress,whichthe agencyfailedtoestablishand,the courtnoted,itisunlikelyanyagency possesses.

LiketheCleanPowerPlan,the EPA’snewlyfinalizedreplacement rulerequiresadoptionoftechnology thatdoesn’texist.Moreremarkably, theagencysimultaneouslypublished therulesgoverningmercury,water emissionsandsolid-wastestorage, allofwhichithadclumsilypromised woulddriveplantstocloseand therebyreducegreenhouse-gas emissions.

EPAofficialsapparentlygrasp thattheopinionin WestVirginia prohibitsthepracticethatadmirers call“lawwhispering”or“teaching oldlawsnewtricks”—particularlyon majorquestionslikecontriving changesinourenergymix.Goneare paeanstoinventivewaysofcoercing plantstoretire.Withanewfound modesty,theadministrativerecord publishedforthesenon-greenhouse-

gasemissionsrulesdisputesclaims ofcausing“asignificantnumberof retirements”andattributesanygenerationshiftingtoInflationReductionActsubsidies. Thisploytododgeconstitutional analysisneednotsucceed.Thepreviouslyadmittedpretextbehindthe EPA’s“suiteofrules,”individually andcollectively,istoachievethe outcomethatthecourtin WestVirginia declaredtheagencyhasnoauthoritytopursue.Thedoctrine againstpretextdebutedin DepartmentofCommerce shouldtriggerreviewunderthemajor-questionsdoctrine;thedisingenuouseffortto avoiditpresentsanotherbasisfor review.CourtscantakeMr.Regan’s wordforitor,asintheTrump-era censuscase,orderdiscoverytodeterminewhatfactorstrulydrovethe agency’sdecisions.

ThegroupGovernmentAccountabilityandOversighthasarguedexactlythistotheU.S.CircuitCourtof AppealsfortheDistrictofColumbia, inanamicusbriefIco-authoredina challengetooneofthesuiteofrules (Kentuckyv.EPA). Thisargument shouldensureSupremeCourtreview oftheconstitutionalityofMr.Biden’s“wholeofgovernment”approachandspecificallythe“suiteof rules”theEPAassembledtoskirt major-questionsreview.

Bureaucraticworkaroundsof agencies’limiteddelegationsof powerareanaffronttothejudiciary andto“ourdemocracy.”TheBiden backdoorclimategambitisagood placetodrawtheline.

Mr.Hornerisanattorneyin Washington.

AlreadyaTravesty,theICCEyesChargesAgainstIsrael

ByEugeneKontorovich

TheprosecutoroftheInternationalCriminalCourtisreportedlyconsideringarrest warrantsagainstIsraelileadersfor allegedwarcrimes.Thiswouldbe thefirsttimetheICChastakenthis stepagainstaliberalWesterndemocracy.Suchchargeswouldallow unaccountablebureaucratsinThe HaguetoputIsrael’selectedofficialsontrialfordecisionsthey madetodefendtheJewishstate againstHamas.

Likemanyotherinternationalorganizations,theICCwascreated withhighideals.Itsofficials,however,havesincediscoveredthatgoingafterIsraeliseasierthanmaking adifferenceforglobaljustice.

TheICCisreportedlypreparinga casebasedonspeciousallegations fromanti-Israelnongovernmental organizations,UnitedNationsagencies,andthetestimonyofemployees atHamas’sAl-Shifaterrorhub.Israel,whichliketheU.S.haschosen nottojointheICC,can’tmountalegaldefensewithoutconcedingthe

ByAlanS.Blinder

Thefarrightfrequentlycalls PresidentBidenasocialist.He isn’t,butthechargeputshim ingoodcompany.Inthe1930s,RepublicanssimilarlylabeledPresident FranklinD.Rooseveltasocialisteven ashisNewDealpoliciesweresaving Americancapitalismfromthestrong leftistpoliticalcurrentsunleashed bytheGreatDepression.

Mr.Bidenisn’tabusinessman. He’sasmart,principledpolitician who’sdedicatedtoseeingcompetitivecapitalismflourishinAmerica— ashehasputit,“fromthemiddle outandthebottomup.”

PerhapsbecauseDonaldTrump hasrunbusinesses—anddespitehis havingdrivensomeoftheminto bankruptcy—manyAmericansseem tothinkhedidabetterjobofrunningtheU.S.economythanMr.Bidenhas,andwoulddobetteragainif re-elected.

Butthat’salsountrue.Although manyAmericansremainconcerned abouttheeconomy,themacroeconomicdatashowclearlythatit’sin greatshape,muchasitwasinearly 2020beforethepandemicstruck. Furthermore,Mr.Biden’sstarting

court’sauthoritytomicromanageits securitychoices.

WhiletheICCmightalsoindict Hamasofficials,itsdoingsoshould givenoillusionofbalance.Hamas hasacceptedICCjurisdiction,butno onebelievesitsleaderswillturn themselvesovertothecourt.Their ruleofterrorinGazameansthat barringtotalIsraelivictory,theycan disposeofinconvenientevidenceor witnesses.Hamas’satrocitiesarea sourceofpridefortheterrorist group. ThechargesalonewouldharmIsraelbyservingasadiplomaticcatalystforsanctionsandboycottsof theJewishstate.Butthediplomatic damagedependsonamistakenview oftheICC’slegitimacy.Itisn’tsome grand“worldcourt.”Thecountries mostlikelytousemilitaryforce havechosennottojoin.Mostofthe world’spopulationlivesoutsidethe ICC’sjurisdiction. Despitearoughly$200million annualbudget,theICChasconvictedonlysixpeopleofthemassatrocitycrimesitwascreatedtoadjudicatein2002.Numeroushigh-

pointinJanuary2021wasvastly morefraughtthanMr.Trump’s startingpointinJanuary2017— meaningtheeconomyimproved muchmoreunderMr.BidenthanunderMr.Trump.

Whatabouttheargumentthata businessentrepreneurwill“run”the U.S.economybetter?It’sbasedonat leasttwomajorfallacies.

DonaldTrumpmaybean entrepreneur,butthat doesn’tmeanhe’sagood stewardoftheeconomy.

Thefirstfallacystemsfroma simplepoint:Asinotherwalksof life,therearegoodbusinesspeople andbadbusinesspeople.

Goodbusinesspeopleinventnew productsorideas,orimproveexistingonesbyreducingcosts,enhancingcustomerappealandthelike. Theygenerallyputtheirown money—oftenaccompaniedbyother people’smoney—behindentrepreneurialventures.Iftheysucceed, theygetrichandtheeconomygets

PUBLISHEDSINCE1889BYDOWJONES&COMPANY LachlanMurdoch ExecutiveChairman,NewsCorp RupertMurdoch ChairmanEmeritus,NewsCorp EmmaTucker EditorinChief RobertThomson ChiefExecutiveOfficer,NewsCorp AlmarLatour ChiefExecutiveOfficerandPublisher

EDITORIALANDCORPORATEHEADQUARTERS 1211AvenueoftheAmericas,NewYork,N.Y.,10036 Telephone1-800-DOWJONES DOWJONESMANAGEMENT: DanielBernard, ChiefExperienceOfficer; MaeM.Cheng, EVP,GeneralManager,Leadership; DavidCho, Barron’sEditorinChief; JasonP.Conti, GeneralCounsel,ChiefComplianceOfficer; DianneDeSevo, ChiefPeopleOfficer; JaredDiPalma, ChiefFinancialOfficer; FrankFilippo, Chief TransformationOfficer; ArtemFishman, Chief TechnologyOfficer; DavidMartin, ChiefRevenue Officer,BusinessIntelligence; DanShar, EVP, GeneralManager,Wealth&Investing; AshokSinha, SVP,HeadofCommunications; JoshStinchcomb, EVP&ChiefRevenueOfficer,WSJ|Barron’s Group; SherryWeiss, ChiefMarketingOfficer LizHarris, ManagingEditor CharlesForelle, DeputyEditorinChief ElenaCherney, SeniorEditor; DavidCrow, ExecutiveEditor; ChipCummins, Newswires; AndrewDowell, Asia; TanethEvans, Associate Editor; BrentJones, Culture,Training&Outreach; AlexMartin, Print&Writing; MichaelW.Miller, Features&Weekend; PrabhaNatarajan, ProfessionalProducts; BruceOrwall, Enterprise; PhilanaPatterson, Audio; AmandaWills, Video PaulA.Gigot EditoroftheEditorialPage GerardBaker, EditoratLarge

ThecourtatTheHague considersbringingwholly speciouschargesagainst leadersoftheJewishstate.

profilecaseshavecollapsed. IncumbentdictatorssuchasSudan’s Omaral-BashirandRussia’sVladimirPutinhavesimplyignoredICC indictments.TwofutureKenyan presidents,includingtheonenow serving,wereindictedbytheICC overwidespreadinternalviolencein 2007-08.Itdidn’tevendenttheir politicalcareers.Twocountries—BurundiandthePhilippines—have withdrawnfromtheRomeStatute establishingthecourt.

TheICChasalreadyfailedatits goalofpromotingglobaljustice.Its onlychanceofredeemingitselfwith someconstituencyis,aswithall flounderingregimes,toappealto theoldestlowestcommondenominator—antisemitism.

better.Badbusinesspeopleoftentry tocreateorstrengthenmonopoly positions,orevenengageinfraudor near-fraud.

Goodbusinesspeoplepaythe workersandcontractorstheyhire. Badbusinesspeoplesometimes don’t.Instead,it’s,“Seeyouin court.”

Goodbusinesspeoplekeephonest booksandrecords,includingwhat theyreporttotheInternalRevenue Service.Badbusinesspeoplemay not.

Perhapsmostfundamentally,good businesspeopleappreciatetheimportanceoftheruleoflaw,bothto theirbusinesssuccessandtopreservingtheirwealth.Withoutlaws definingandprotectingproperty rights,therecanbenocapitalism.By contrast,badbusinesspeoplemay sneerattheruleoflawandregularlyskateclosetotheline,sometimesveeringoverintoillegality. Clearly,wewantgoodcapitalists, notbadones.Becausewetakethe ruleoflawforgranted,weoftenlose sightofhowcentralitistoawellfunctioningcapitalistsystem.Laws

FatherTedHesburgh(1917-2015), presidentoftheUniversityofNotre Dame,inaFeb.17,1969,lettertothe universitycommunity:

IbelievethatInowhaveaclear mandatefromthisUniversitycommunitytoseethat:(1)ourlinesof communicationbetweenallsegmentsofthecommunityarekeptas openaspossible,withalllegitimate meansofcommunicatingdissentassured,expanded,andprotected;(2) civilityandrationalityaremaintained;and(3)violationofanother’s rightsorobstructionofthelifeof theUniversityareoutlawedasillegitimatemeansofdissentinthis kindofopensociety. Nowcomesmydutyofstating,

TheICCcan’tdeterdictatorsand warlords,whofallintoitshands onlyoncetheylosepower—atwhich pointacellinTheHaguemightnot looklikeabadalternative.Leaders ofliberaldemocraciesfacedifferent calculations.Theyrotateoutof power,andtheirprivatebenefitsin officearerelativelyskimpy.The likeliestoutcomeofanICCcharge againstIsraelwouldbetomakeit harderforsmalldemocraciestodefendthemselvesfromaggressive neighbors.

Indeed,asnewsofthewarrants againstIsraelcirculated,Lebanon saiditwouldaccepttheICC’sjurisdiction,retroactivetoOct.7.This doesn’tmeantheIranianpuppet statehasgottenseriousabout bringingHezbollahtojusticeforits missilebarragesthathavedesolated Israel’snorth.Rather,Beirutknows thattheonlyrealeffectoftheICC canbetodelegitimizeIsraelforits defensivecampaign. SomeclaimthattheICCwillgo afterU.S.troopsnext.In2020,the ICCprosecutorshelvedaninvestigationintoallegationsoftortureby

providetherulesoftheeconomic game.Theygovernwhat’sallowed— includingwhatconstitutesfaircompetition—andwhatisn’t.Theyensureinvestors,workersand suppliersreceivewhattheircontractsstipulate.Theydefinehowa firm’sprofitseventuallygetsplitbetweenownersandtaxcollectors. Ourlegalframeworkisfarfrom perfect,andweneedtochangelaws fromtimetotime.Somestatutesare tooambiguous,whichiswhywehave asprawlingnetworkofcourtsand morethan1.3millionlawyersinthe U.S.Somelawsseemdownrightsilly orarchaic.Buttheydoproviderules, andthemeanstoenforcethem,rather thanlettingtheeconomydevolveinto anunrulyfree-for-all. Thesecondfallacyismoresubtle: Thegovernmentisn’tabusinessand shouldn’tberunonbusinessprinciples.Ingovernment,there’snosimple “bottomline”analogoustoprofitsfor acorporation;rather,therearemultipleobjectivesthatsometimesconflict.Therearealsomanyconstituencieswhoseinterestsmatter—not merelyshareholders.

U.S.troopsinAfghanistanwhen PresidentTrumpimposedsanctions onherandacolleague.AftertheBidenadministrationliftedthose sanctionsin2022,theICCpromptly reopenedtheinvestigation.The sameinternationalbureaucratswho flinchatthepossibilityofhaving theirU.S.travelrestrictedareinsistingthatIsraellivewithaswordto itsneck.

TheICCismoreapoliticalinstitutionthanajudicialone.Charges againstIsraeliofficialswouldappeasetheICC’sinternalcriticswho wantittoprosecuteWesternleaders—notmerelytheAfricandictatorsandwarlordsithastriedsofar. UnlikeAfricancountries,Israelcan’t quitthecourtinprotestbecauseit neverjoined.Theideaofinternationalcriminaljusticearoseoutof theHolocaustandcouldendup makingtheJewsintotheperfect scapegoat.

Mr.Kontorovichisaprofessorat GeorgeMasonUniversityScaliaLaw SchoolandascholarattheJerusalem-basedKoheletPolicyForum.

Ingovernmentdecision-making, fairnessistypicallymoreimportant thanefficiency.Andtheidealized principleis“oneperson,onevote,” not“onedollar,onevote.” Insideabusinesshierarchy, there’sgenerallyabossandalotof commandandcontrolbeneathhim orher.Insidethegovernment—apart fromthemilitary—it’smorelikebeg andcajole.Thepresidentcan’tbark orderstotheSenate.TheSenate can’tforcetheHousetobendtoits will.Evenwithinasingleparty,leadersmayfindthemselvesshorton followers.It’saboutcompromiseall thewaydown.

Icouldgoon.Thepointisthat theskillsthatmakeforsuccessin businessdon’ttransferreadilyinto thepoliticalrealm,asmanybusiness peoplehavelearnedthehardway. Soaskyourselfwhowouldmakethe betterstewardoftheU.S.economy. MybetisonJoeBiden.

Mr.BlinderisaprofessorofeconomicsandpublicaffairsatPrinceton.Heservedasvicechairmanof theFederalReserve,1994-96.

clearlyandunequivocally,whathappens if. ...Anyoneoranygroupthat substitutesforceforrationalpersuasion,beitviolentornon-violent,will begivenfifteenminutesofmeditationtoceaseanddesist. ...Ifthey donotwithinthattimeperiodcease anddesist,theywillbeaskedfor theiridentitycards.Thosewhoproducethesewillbesuspendedfrom thiscommunityasnotunderstandingwhatthiscommunityis.Those whodonothaveorwillnotproduce identitycardswillbeassumednotto bemembersofthecommunityand willbechargedwithtrespassingand disturbingthepeaceonprivate propertyandtreatedaccordinglyby thelaw. Afternotificationofsuspension, ortrespassinthecaseofnon-communitymembers,ifthereisnot withinfiveminutesamovementto ceaseanddesist,studentswillbenotifiedofexpulsionfromthiscommunityandthelawwilldealwiththem asnon-students. Thereseemstobeacurrentmyth thatuniversitymembersarenotresponsibletothelaw,andthatsomehowthelawistheenemy,particularlythosewhomsocietyhas constitutedtoupholdandenforcethe law.Iwouldliketoinsistherethatall ofusareresponsibletothedulyconstitutedlawsofthisUniversitycommunityandtoallofthelawsofthe land.Thereisnootherguaranteeof civilizationversusthejungleormob rule,hereorelsewhere.

BRINGINGHATETOANYONE. BRINGSMOREHATETOEVERYONE.

AsagraduateofColumbiaUniversity,Iamdeeplysaddenedbythehate andpolarizationtakingplacetodayonacampusIlovesomuch.Iam appalledthatthishatehasonlycontinuedtoriseandhasspawned growinglevelsofphysicalintimidationandthreatsofviolencethathave takenovercollegeanduniversitycampusesacrossourcountry.

Ibelievepoliticalissuescanbe,andmostimportantly,shouldbe debated.Theyshouldbedebatedvigorously.Butvicioushatespeechand physicalintimidation,preventingothersfromfeelingsafe,pursuingtheir studies,orhavingtheirvoicesheardiscompletelyunacceptable.

Theleadershipandfacultyofsomanyofourleadingeducational institutionshavefailedtheirstudents.Theyhavenotonlygivenuptheir positionsofauthority,butalsotheirmoralcompassesinupholdingthe coremissionsofthesecollegesanduniversities–toprotecttheir studentsandtheprinciplesofcriticalthinkingandfreespeech–toteach howtothink,notwhattothink.

Shoutingvile,hatefilledlabelsatstudentswhilehidingbehindmasksis notfreespeech—itiscowardice.Insteadofcollegesanduniversities teachingthecoreprinciplesoffreespeechanddebateourcountrywas foundedon,theyareemboldeninghatethatistearingtheircampuses, andouryouthapart.

Whenthisends,thesestudentscannotbepardonedforwhattheyhave done.Theyneedtobeheldaccountableinordertosendamessageto futuregenerationsofstudents–thatitisnecessarytoadheretothe rulesofcivilsocietyandthecodesofconductofacademiccommunities, andthatfreespeechmeansstandingbehindyourwordsandaccepting theconsequencesofyouractions.

ThemissionoftheFoundationtoCombatAntisemitism(FCAS)istobuild empathyamongallAmericans,youngandold,asawaytofighttherising hateinourcountry.Empathyisinnate–hateisalearnedbehavior. Unfortunately,today,hateisexactlywhatisbeinglearnedandtaughton campusesacrossourcountry.Today,andeveryday,atFCASweare standinguptoJewishhateand allhate,andIencourageournation’s universityleaderstoactwithcourageandwisdomsothatknowledge, nothate,iswhatisbeingproducedonournation’scampuses.

Scannowto watchthefilm andlearnmoreabouthowtonavigate therenewableenergytransition throughinventivesolutionslikePPA.

BUSINESS&FINANCE

©2024DowJones&Company.AllRightsReserved.

New401(k)sOfferMonthlyChecks

BlackRockintroduces fundsthatturna portionofsavings intopaymentsforlife

BY JACK PITCHER

Asmallbutgrowingnumberofcompaniesareoffering 401(k)plansthatpromiseemployeesadegreeofpredictability,withretirementpaycheckstheycancountonfor life. Thegoalistoturnaportionofretirementsavingsinto fixedlifetimepayments throughtarget-datefundsembeddedwithannuities. BlackRock ChiefExecutive LarryFinkbelievestheoption

“willonedaybethedefault retirementinvestmentstrategy.”Hismoney-management firmhaslauncheditsfirst suchfunds,whichFinkthinks

couldhelpaddresstheloomingU.S.retirementcrisishe warnedofinhisannualletter thisyear.

Energyprovider Avangrid,

basedinConnecticut,wasthe firstcompanytorollout BlackRock’snewLifePathPaycheckfundstoemployeeslast week.LifePathPaycheckis nowthedefaultinvestment optioninAvangridemployees’ 401(k)s.Thirteenotheremployershavesignedonto makeittheirdefaultoption, bringingthenumberofemployeesthatwillhaveaccess tothefundsto500,000. Thefundsinitiallylooklike thetarget-dateretirement fundsthathavebecomestandardinU.S.401(k)plans.They holdariskier,stock-heavy portfoliowhenanemployeeis young,andautomaticallyadjusttowardlower-riskassets likebondsasretirementage approaches.

WithLifePathPaycheck,the twististhatthefundsbegin investinginannuitycontracts atage55.Thatallocation growstoroughly30%ofthe portfoliobyage65.Anemployeehasfromage59.5until theyeartheyturn72tobuy anannuitywiththatallocation,lockinginamonthlypaycheckforlife.Theremaining 70%canremaininvestedin stocksandbondsorberedeemedforcash. Iftheemployeeoptsnotto buyanannuity,the30%allocationbehavessimilarlytothe fixed-incomeallocationin standardtarget-datefunds. Investorsinmost401(k)plans canalsoeschewtarget-date fundsentirely,andtakemore PleaseturntopageB2

BP’sAmbitionsFocusontheGulfofMexico

BY JENNY STRASBURG

THUNDERHORSEOIL

PLATFORM—Thishulkingproductionbase150milesoffshore fromNewOrleanshaslongembodied BP’soutsizeambitions intheGulfofMexicoandalso reflecteditsrecurringsetbacks. Stretchingroughlythree footballfieldsandpumping crudefrommorethanamilebelowthewater’ssurface,ThunderHorsein2005wasfound listingsoprecariouslythatitappearedindangerofsinking.

Onceitgotroaringin2008, threeyearsbehindschedule,it helpedBPcementitsposition asoneoftheGulf’sleading producers,capableofsomeof theindustry’sbiggesttechnical marvels.

Thenin2010,theDeepwater Horizonexplosioncausedthe biggestoffshoreoilspillinU.S. history,costingtheBritish companymorethan$60billion andyearsofpoliticalandreputationaldamage.

Now,threechiefexecutives and14yearslater,BPisagain bettingbigontheGulf.

ThunderHorseisentrenchedasoneofthecompany’ssteadiestproducers,and anewproductionplatform, calledArgos,wentonlinelast year.Ataboutone-thirdofthe size,Argoslinkstosubsea wellsandhasthecapacityto producemorethanhalfas muchoil—roughly140,000barrelsaday.BP,whichwillreport earningsnextweek,hassetits sightsonharder-to-reachdepositsintheGulf,requiring drillingtechniquestocopewith more-intensepressuresand highertemperatures.

InMarch,newCEOMurray Auchinclosswasaskedonstage ataHoustonenergyconference whatbusinessheismostexcitedabout.Hisanswer:the GulfofMexico.

Morespecifically,AuchinclosscalledoutthePaleogene, ageologicallayerwhereBP firstdiscoveredoilmorethana decadeago.Thecompanyplans todecidewhethertogoforwardwithbigprojectsthereeitherlaterthisyearornext.BP saysitcouldgainaccessto some9billionbarrelsofuntappedoil—amassivesupply.

“Ithinkwestandthechance toopenupthenextgreatbasin intheworld,whichisthePaleogenehereinourbackyardin

theUnitedStates,”Auchincloss said.

Nooil-and-gassupermajor hasmoreridingontheseGulf ofMexicowatersthanBP,investorsandindustryparticipantssay.BPisthesmallestof thesupermajorpack,soonto befurtherdwarfedasU.S.rivals ExxonMobil and Chevron seektocloserecentmegadeals, andlaggingbehindLondonbasedrival Shell insizeand shareperformance. Deep-waterprojectsare amongtheindustry’sbiggest playsatthemoment.Shellis activeinthewhite-hotNamibia discovery,whileExxonisenjoyingblockbusterproductionout ofGuyana.ShellandChevron

alsohavetheireyesonPaleogeneoilfindsintheGulfof Mexico.

BP,whichpulledbackfrom frontierexplorationinfavorof itsgreen-energypivotinrecent yearsunderformerChiefExecutiveBernardLooney,isn’tinvolvedinthosebignewdiscoveries.Asaresult,itsGulfof Mexicobusinessremainsthe coreofitsdeep-waterambitions. “Inaresourceindustry,resourcesmatter,sothiscouldbe seenasarelativedisadvantage,”saidRBCCapitalMarkets analystBirajBorkhataria. Still,heexpectsBPtotie newGulfprojectsintoitsexistinginfrastructure—anincumPleaseturntopageB10

BY ANNA WILDE MATHEWS

CVSHealth reported sharplylowerfirst-quarternet incomeandcutitsguidancefor 2024,hitbyhighermedical costsinitsMedicarebusiness. Theresultswillputpressure onCVSChiefExecutiveKaren Lynch,whohaspresidedover fiveearningsdowngradessince herfirstinvestordayin2021. Lynch,wholedAetnabefore takingoverasCEO,hasinvestedheavilyintheMedicare business.

CVSsharesfell17%on Wednesday,theirsharpestonedaydropsince2009.Thecompanylost$14.3billioninmarketcap,fallingto$70.7billion. Lastfall,CVSmadeseniors anenticingoffer:Iftheysigned upforthecompany’sAetna Medicareplans,theycould scorefreepickleballpaddles. Thebenefitmightalsofund golfclubs,fishingrodsandan arrayofotherequipmentappealingtospryretirees. Thegambitworked.EnrollmentinAetna’sMedicareproductssurgedthisyear.Butit turnedoutCVSgotmorethan itbargainedfor.

Thecompanycutitsguidancefor2024toatleast$7in adjustedearningsasharefrom $8.30.Ithadissuedtheearlier figurejustthreemonthsagoin adowngradethatthecompany saidatthetimewassupposed tocapturetheriskofrisingexpensesintheMedicarebusiness.Nowthosecostshave shotupevenfasterthanCVS expected.

Inadditiontoaggressively expandingenrollmentin Aetna’sMedicareAdvantage plans—theprivate-insurerversionofthefederalprogramfor theelderlyanddisabled— Lynchlastyearspentabout $10.6billionforOakStreet Health,amoney-losingclinic businessthattreatsseniors. CVSalsoboughtSignifyHealth, ahome-visitcompanylargely focusedonMedicare,fornearly $8billion.

Duringacallwithanalysts Wednesday,LynchsaidCVSis takingactiontomitigatetheissueswithitsMedicarebusiness,andthatitexpectedto gettoitstargetprofitabilityin threetofouryears.

“Wearecommittedtoimprovingmargins,”shesaid.“DePleaseturntopageB2

Johnson&Johnson saidit wouldputanearly$6.5billion settlementofferfortensof thousandsoftalc-relatedlawsuitstoavote,asteptowarda possiblethirdattemptbythe companytoresolvethosepersonal-injuryclaimsinbankruptcy. Thehealthcaregiantsaidit wouldseekvotesonthenew settlementproposalfrompersonal-injuryclaimantswhoallegethatitscosmetictalcproductscausedovariancancer.If three-quartersofallinjury claimantsvoteyes,J&Jcould placeacorporateaffiliatein bankruptcyasawaytobindall talcplaintiffstothesettlement terms,thecompanysaidon Wednesday. Theproposedplanwould

commitJ&Jtopayovarian claimantsapresentvalueof about$6.475billionover25 years,whichwouldrankasone ofthelargestmass-tortsettlementsever.

Evenifmosttalcclaimants voteyes,J&Jwouldstilllikely facelegalhurdlesinbankruptcycourtbeforeitsproposeddealcouldbeimplemented.

J&Jfailedintwoprioreffortstoresolveitstalcliabilitiesinbankruptcy.In2021,the companyshiftedresponsibility forthoseclaimstoanaffiliate calledLTLManagement,createdasavehicletotransfer pendingtalc-relatedclaimsto bankruptcycourtandstopfurtherjurytrials.LTLfiledseparatechapter11proceedingsin 2021and2023totrytodrivea settlementwithtalc-related PleaseturntopageB2

Tesla’smovethisweekto layoffmuchoftheteamresponsibleforcreatingthe largestandmost-successful electric-vehiclechargingnetworkintheU.S.threwtheindustryintoastateofshock andconfusion.

By JenniferHiller SeanMcLain and RyanFelton

ThelayoffshaltedconstructionworkatadozenSuperchargersitesinTexas.InNew York,propertyownersinnegotiationswithTeslawere toldthecompanywaswithdrawingfromdiscussions aboutaddingchargerstotheir sites.

Theupheavalcomesasthe EVindustrystruggleswith sluggishsalesgrowthanda

H

Hennessy,Paul.........................B4 Hjort,Viktor................................B3 Holmgren,Jennifer...............B3 I Ingrassia,Tim.........................B10 Intrator,Michael.....................B4 Isom,Robert..............................A4

BUSINESS&FINANCE

MLBFansLoseAccessinCableTiff

BY PATIENCE HAGGIN

R Rhyee,Charles..........................B2 S Schultz,Howard....................B11 Su,Lisa..........................................B11 Swift,Rebecca..........................B4 Sykes,Gene..............................B10 Sykes,Starlee.........................B10

T Tinucci,Rebecca......................B4 U Usoro,Mfon.............................B10

J Jassy,Andy................................B11 K Kelly,Gus........................................A1 Kephart,Jason..........................B2 L Larson,Craig............................B10 Liang,Charles..........................B11 Looney,Bernard.......................B1 Lynch,Karen................................B1 M McBee,Brannin.......................B4 Musk,Elon...................................B4 N Narasimhan,Laxman........B11 Nuttall,Scott...........................B10 P Philip,Dusty.............................B10 Pinter,Andres...........................B4 Pozzi,Gilberto........................B10

Medicare CostsHit CVSProfit

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spitetherecentchallengesin MedicareAdvantage,wefirmly believetheprogramcanremain acompellingofferingforseniors andaveryattractivebusiness forAetnaandCVSHealthover time.”SheaddedthatthediversityofCVS’sbusinesses—which includeitshugepharmacy-benefitmanageranditseponymous drugstoresaswellasAetna— positioneditwelltogrownext year. Thecompany’sMedicare woesreflectbroaderissues acrosstheinsuranceindustry, withcompetitorHumanaissuingitsownearningsmeltdown atthestartoftheyear.

ButCVSsufferedfromunluckytiming—thecompanyexpandedinthelong-prosperous Medicarebusinessjustasfederalregulatorsweresqueezing itandmedical-servicesuse amongseniorswastickingupward. MedicareAdvantagehas beenapowerfulengineof growthandprofitsforthe managed-careindustryfor years,fueledbyagingbaby boomersandagenerallyfavorableregulatoryenvironment. ButtheBidenadministrationis changingsomebillingrulesin awaylikelytocurtailmanyinsurers’results,anditrecently issuedpaymentratesfor2025 thatwerelowerthaninvestors expected.

Thefreesportsequipment wasofferedincertainMedicare plansthrougha“fitnessreimbursementbenefit”thatallowedAetnaenrolleestoseek repaymentforsportsandactivity-related expenses.The allowancecould rangefrom $360to$1,200 ayear,accordingtoAetna marketingmaterials—analluringoption forbudget-conscioussenior pickleballers. Thegolfclubsandpaddles weresignsofabenefitsbundle morebroadlypackedwith goodiestodrawnewcustomers duringMedicare’sannualfall enrollmentperiod.Analystsat TDCowenwhoexamined Medicareinsurers’offerings saidCVSwasa“notableoutlier”amongitscompetitorsfor itsincreaseofsenior-pleasing over-the-counterandflexible benefits. Aetna’sMedicareAdvantage

enrollmentattheendofthe firstquarterwas4.2million, upfrom3.46millionattheend of2023.Thecompanyearlier saidthatitsMedicareenrollmenthadovershotitsexpectationsbyaround200,000.

CVSsaidWednesdaythat newMedicaremembers weren’tringingupcostsata higherratethanotherenrollees.CVSreportedadjusted earningspershareof$1.31for thefirstquarter,wellbelow analysts’projectionsofabout $1.69,accordingtoFactSet.Net incomeforthequarterwas $1.12billion,or88centsa share,downfrom$2.14billion, or$1.65ashare,ayearago. CVSsaidinastatementthat theincomedroplargelyreflected“utilizationpressurein thecompany’sMedicarebusiness.”“Thisisworsethanpeoplewereexpecting,forsure,” saidCharlesRhyee,ananalyst withTDCowen.

CVSsaidmedicalcostswere about$900millionmorethan ithadexpectedinthefirst quarterbutabout$500million ofthosewerespecifictothat quarter.Amongthedrivers werehigheruseofoutpatient servicesandrisinginpatient hospitaladmissions,which showedsignsof easinginApril.

Thecompany saidtheimpact ofacyberattack onhealthcare claimsprocessorChange Healthcare,a unitofUnitedHealthGroup, hurtitsvisibilityintoemerging costincreases. CVS’srevenueforthefirst quarterwas$88.4billion,up from$85.3billionayearago. Aetna’smedical-lossratio,a closelywatchedgaugeofmedicalcoststhatreflectstheshare ofpremiumspentonmedical expenses,was90.4%,upfrom 84.6%ayearago.Thefigurefor themostrecentquartercame inabovetheFactSetanalyst projectionof88.5%.

MajorLeagueBaseballfans inmarketsfromLosAngeles toMiamistruckoutTuesday nightafter Comcast and DiamondSportsGroup failedto reachanewcarriageagreement,leavingsubscribers withoutaccesstoBallySports regionalnetworks.

Theblackoutaffects15regionalsportsnetworksthat broadcastlocalgamesof teamsincludingtheLosAngelesAngels,St.LouisCardinals anddefendingchampionTexas Rangers.Thenetworksalso provideaccesstoteamsincludingsomeNationalBasketballAssociationandNational HockeyLeagueclubs—but bothoftheseleaguesarein theplayoffs,wheregamesare availableonnationalbroadcasts. TheMLBteamsinareas withthemostComcastsubscribersincludetheAtlanta Braves,MinnesotaTwinsand MiamiMarlins,accordingtoa

New401(k) PlansPay Monthly

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orlessriskastheyseefit. Annuitiesarecomplex,and oneconcernabouttarget-date fundsusingthemistheexpense. “Therearefeesinthe spreadoftheannuitythatyou can’tsee.Thatopaqueness opensitselfuptothechance oflitigationrisk,”saidJason Kephart,directorformultiassetratingsatMorningstar. Itiswhymajoremployers arelikelyinterestedbutina wait-and-seemode,hesaid, givenconcernsaboutlawsuits

J&JOffers Talc-Suits Settlement

ContinuedfrompageB1

claimantsinbankruptcy.

Someanalystssaythetalc litigationhasweighedonJ&J’s sharepriceinrecentyears,and hasconsumedattentionfrom managementevenafterlast year’sspinoffofJ&J’sconsumerdivision,whichusedto sellthetalc-basedpowders.In October,J&Jtoldinvestorson anearningscallitwasexploringoptionsincludingathird bankruptcyfilingtoresolveits talcliabilitiesandthatitwould putanysettlementproposalto avotebeforehand.

“Sincethen,thecompany hasworkedwithcounselrepresentingtheoverwhelmingmajorityoftalcclaimantstobring thislitigationtoaclose,which weexpecttodothroughthis plan,”saidErikHaas,J&J’s worldwidevicepresidentoflitigation.

Injuryclaimantswillhave threemonthstolearnabout thetermsbeingofferedand haveanopportunitytovoteon

personfamiliarwiththematter. Comcastsaiditwould creditaffectedsubscribersfor thelostnetworksandthat mostcustomerswouldautomaticallyreceive$8to$10a month.“We’dliketocontinue carryingtheirnetworks,but theyhavedeclinedmultipleoffersandnowwenolonger havetherightstothisprogramming,”saidaComcast spokesman. Comcastdeclinedtosay howmanycustomerswereaffectedbytheblackout.

ADiamondspokeswoman saidComcastrejectedaproposedextensionandthatit wouldcontinuetoseekan agreementwiththecablegianttorestorethebroadcasts. Alternativesforaffected sportsfansincludeinternetTVserviceslikeFuboandDirecTVStream,whoseparent DirecTVreneweditsdistributiondealwithDiamondon Wednesday. Thedisputeisunfoldingas

inthelitigiousretirementplanspace. “Ifyoustarttoseealotof momentumwiththeBlackRock series,itwon’tbelongbefore moreplansofferthese,” Kephartsaid.

Some401(k) planadministrators,includingFidelity,give individualsthe optiontoconvertsavings intoinstitutionallypricedannuitiesatretirementthemselves. Proponentsofthefundswith embeddedannuitiessaythey helpsimplifytheprocessof turningaretirementnestegg intoanincomestreamthatwill last,withoutthehelpofafinancialadviserorwealthmanager. Unliketraditionalpension

Diamondworkstoemerge frombankruptcyandforge newcommercialagreements withdistributorsthattogether compriseitslargeststreamof revenue.

Comcast’scarriagedeal withDiamondexpiredatthe endofSeptember,whilethe largestregionalsportsbroadcasterwasinthemidstof bankruptcyproceedings,accordingtopeoplefamiliarwith thematter.Theyagreedtoan extensiononthesameterms astheoldcontract,whichexpiredattheendofApril.

Thecompaniesareatodds overwhetherallComcastsubscribersshouldhavetopayfor theirregionalsportsnetworks, thepeoplesaid.

IncableTV’sprime,subscriberspaidseveraldollarsa monthtoregionalsportsnetworksthroughtheircable bills,whethertheywatched thechannelsornot,subsidizingtheviewinghabitsofavid sportsfans.Theeconomicsof localsportsarechangingas

plans,401(k)retirementplans leaveworkerstofigureouta withdrawalstrategythemselves.Thatcanbeasourceof angstforretirees.Target-date fundshadan ugly2022when stocksand bondsfellsimultaneouslybut rebounded quicklyafterward.

Thefundsare calledasimpler waytoturna nesteggintoa revenuestream.

“Evenpeople whoknowhow tosaveforretirementstill don’tknowhow tospendforit,”BlackRock’s Finkwroteinhisannualletter. Asmoreofthebabyboomer generationretires,401(k)plan administratorshaveanincentivetoofferproductslikeannuitiesthatkeepretireesin theirplansforlonger.Keeping bigaccountsgivestheplans

thecompany’splan,whichcoversonlytalcclaimsrelatedto ovariancancer.Itwon’taddressasmallernumberof pendinglawsuitsallegingthe company’stalccausedtheasbestoscancermesothelioma. J&Jhasdeniedthatitstalc isunsafeandhaswonthemajorityofthejurytrialsithas facedontalcinrecentyears. Butsomejurieshavedelivered bigverdicts,includinga$2.1 billionawardJ&Jpaidin2021. Thecompanypreviously usedalegaltactictoisolatethe

company’stalcliabilitiesfrom therestofitsbusinesses.J&J firstshifteditstalc-relatedliabilitiesandassetstoaTexas subsidiary,usingastatelaw thatallowssplittingcorporate assetsfromliabilitiesthrough whatareknownasdivisional mergers.TheTexassubsidiary wasthenconvertedintoa NorthCarolina-basedentity— LTLManagement—beforefiling forbankruptcy. LTL’spriorchapter11filings openedapathforresolvingthe company’smasstortliabilities

moreconsumerscutthecord andembracestreaming,where itiseasiertopickandchoose whatprogrammingtopayfor. Consumersdon’twanttopay forcontenttheydon’twatch. Comcastwantstoreacha dealthatdoesn’trequireevery subscribertopayforBally Sportsregionalnetworks,peoplefamiliarwiththematter said.Suchadealcouldinvolve anewtierforwhichcustomerscanchoosetopaymore. Comcastalreadyhasthis rightforregionalsportsnetworksownedbysomeother companiesbutnotforDiamond’s,oneofthepeoplesaid. DiamondhastoldComcast thatitisn’teconomicallyviableforitsregionalsportsnetworkstobesoldinaspecial tieratthestartofanewdeal, anotherpersonfamiliarwith themattersaid.Initially,as Diamondworkstocomeoutof bankruptcy,thecompanyhas saiditcan’taffordtotakea revenuehitfromsellingthe channelsinanewtier.

moreleveragewiththeasset managersandrecord-keepers theyworkwith.

Forindividualssavingfor retirement,BlackRocksaysits fundshelpsolvethecomplexity andexpenseofannuitiesbyautomaticallyinvestinginthe contractsandofferingaccessto institutionalpricing.TheLifePathPaycheckfundsare cheap—withanannualexpense ratioof0.1%untiltheannuity contractsareaddedatage55, whenthefeeclimbsto0.16%. Theindustryaverageexpenseratiofortarget-date fundsis0.48%,accordingto Vanguard,butthebiggestprovidersofferfundsinthe0.1% range. Therearealreadyseveral productssimilartoLifePath Paycheck,butBlackRock’shas thelargestuptakesofar,with 14retirement-plansponsors signedon.

throughthetoolsofchapter11 whilekeepingitsbusinessoperationssafefromthevalue destructionthatwouldresult fromenteringbankruptcy. Plaintiffs’lawyersandsome membersofCongresshavecriticizedthecompany’suseof bankruptcy,arguingthatchapter11wasn’tmeantforsolvent, profitablecompanieslikeJ&J tousewithoutsubjectingallof theirassetsandliabilitiesto thecourtprocess.Thecompanyandsomepersonal-injury lawyershavearguedthatbankruptcycompensatesclaimants morequicklyandfairlythan theciviljusticesystem. DuringJ&J’spreviousattempttoresolveitstalcliabilitiesinbankruptcy,objecting claimantsarguedthatithad offeredpaymentstopeople whoshouldn’tqualifyforcompensationasawaytostuffthe ballotboxinfavorofasettlementthatwouldreducepaymentstolegitimatevictims. Personal-injurylawyerMike Papantonio,whosefirmrepresentssomeclaimants,saidon WednesdayifJ&Jsucceedsin itslatestoffer,“thisabusive tacticwillbecomeanimportantprecedentemboldening othercorporateentitiestoseek toavoidresponsibilityandsubverttheU.S.bankruptcysysteminthesameway.”

DoorDash’sResultsImprove AsTotalOrderValueSwells

BY PREETIKA RANA

DoorDash revenueroseto arecordanditsnetloss shranklastquarteraspeople orderedmoreonthedelivery appthantheydidduringthe heightofthepandemic.

DoorDashisthebiggest playerintheU.S.restaurantdeliverymarket.Whileitloses money,itsoperationalefficiencyandcostdisciplinerelativetopeerslike UberTechnologies havemadeitaWall Streetfavorite.DoorDash’s shareshavemorethandoubledinthe12monthsthrough Wednesday’sclose.

Uber,whichhasburned throughtensofbillionsofdollarsinthepastdecade, markeditsfirstyearofbeing aprofitablepubliccompanyin 2023.DoorDashhasn’toutlinedwhenitwillbecome

profitable,butanalystspolled byFactSetexpectittoreach thatmilestoneduringthesecondhalfofthisyear.

DoorDashreporteditsnarrowestlossasapubliccompanylastquarter.Itsaiditwill continuetoimproveitsadjustedearnings,whichcompaniesoftenpointtoinorderto signalapathtofutureprofits.

Totalordervalueonthe DoorDashapprose21%inthe Marchquarterto$19.24billion. DoorDash’srevenue—thecompany’scutfromthosetransactions—increased23%to$2.51 billion.Bothfiguresexceeded WallStreet’sprojections.

DoorDashrespondedtonew minimum-wagelawsinNew YorkCityandSeattle,aimedat boostingpayfordrivers,by raisingfeesforconsumersin thoseareas.Thatledtofewer ordersthanthecompanypre-

CompaniesTrim

DebtAmidHigh InterestRates

BY MIRIAM MUKURU

Thecurrenthighinterest rateshavepushedupthecost ofborrowingformostcompanies,forcingthemtofindways toreducetheirdebt,analysts said.

Marketshadexpectedmajor centralbankstostartcutting interestratesinthefirsthalfof 2024butstrongeconomicconditionsandinflationdatahave delayedthisprocess.Thishas keptrateshighforlongerthan marketswereanticipatingat thestartofthisyear.

Companies,especially higher-ratedcreditissuers,are startingtoreducetheirmountainofdebtinaneffortto lowertheirexpenses.

“Today’senvironmentisa strongincentivetodeleverage,” ViktorHjort,globalheadof creditstrategyatBNPParibas toldDowJonesNewswires, “Especiallyforthehigherqualitycompanies.” It’snotjusthigh-qualityinvestment-gradecompanieswho arereducingdebt,however. Thistrendisevidentamong riskier,high-yieldcompanies whohavesignificantdebtlevels. Whilehighlyratedinvestment-gradecorporationsare reducingleverageinaneffort tobringdownexpensesand boosttheircreditratings,the lower-ratedcompanieshave

BY YUSUF KHAN

Airlinesareseekingsustainablesourcesoffuel.Steel producersarelookingtoreduce theiroperatingemissions.And sports-apparelmakersareaimingtocutthevolumeofplastic inclothing.Onediscoverycould helpthemall:ayeast-likebacteriainrabbitdroppings.

InChicago,biotechnology firm LanzaTech saysitcan takecarbonemissionsandturn themintoethanol—achemical thatcanbeusedtomakesustainablefuelsaswellasplastics—usingthebacteria Clostridiumautoethanogenum. Butifthissoundslikea gamechangerinthequestfor clean-techsolutions,thereisa problem:Despitethecompany’stechnologyshowing promise,thebusinessisn’t makingmoney,itisfalling shortofitsearningspredictionsanditsstockcrashed. LanzaTechwassetupin NewZealandin2005bythen out-of-workbiologistsRichard Forster,whohassincedied,and SeanSimpson,withthegoalof creatinganewsourceofbiofuel.Aconditionthepairimposedonthemselveswas thatthefeedstockforproducingthefuelcouldn’tbeasource offood,suchassugarorcorn, toavoidcreatingcompetition forsuppliesthataretypicalof ethanol-basedfuels.Beingbiologists,theyturnedtobacteria andfoundthatoneparticular organismcouldholdthekey.

beenpushedtocutdebttostay afloat.

“Highyieldcompaniesare deleveraging,possiblyeven morethaninvestmentgrade companiesatthemoment.But thatisoutofnecessity,”Hjort said.

“Noteveryonecanmakeit, butwethinkthatthedeleveragingtrendovertimewill probablybeafairlybroadbasedprocess.”

Creditresearchcompany CreditSightsalsoexpects“some deleveraging”in2024,itsaidin anote.

ItcitedDutchpaintscompanyAkzoNobel,whichistargetingareductioninnetleveragedownto2.3timesbythe endof2024fromaround2.7 timesinMarch.

AnotherexampleisAmericangold-miningcompanyNewmont,whichisexpectedtoreduceitsdebt“towardits implied$5bnnetdebttarget,” CreditSightssaid. Thereal-estatesectorisparticularlylikelytoseethistrend ofpayingdowndebt.

“ContinentalEuropean[real estate]officeshavefacedanacceleratedcorrectioninasset valuesintheDec-23appraisal, whichhasputadditionalpressureonleverageratios,”Barclayssaidinanote.

Thishasforcedthemostleveragedcompaniestodeleverage,itsaid.

viouslyexpectedinthosecities,butimpactedlessthan1% oftotalorders.Totalnumber ofordersgrew21%to620mil-

lion,betterthananalysts’expectations.

DoorDashreportedalossof $25million,itssmallestsince goingpublicin2020.That comparedwitha$162million lossinthesameperiodayear earlier.Itsadjustedearnings beforecertainexpensescame inat$371million,itsstrongestyet,andslightlybetter thananalysts’forecast.Unprofitablecompaniesoften pointtothismetrictosignala pathtofutureprofits.

Thecompanyprojectedthat thetotalordervalueonits appwouldcomeinbetween $19billionand$19.4billionin thecurrentquarter.Analysts hadbeenexpecting$19.2billion.Italsoforecastadjusted earningsforthecurrentquarterbetween$325millionand $425million.WallStreetprojected$394million.

BY ASA FITCH

Qualcomm reportedaslight riseinquarterlysalesasthe mobile-phonechipcompany grewitsfootprintintheautomotiveindustryamidabuddingrecoveryinsmartphones.

TheSanDiego-basedcompanysaidrevenueforitslatest quarterrose1%to$9.39billion,aheadofanalystexpectationsof$9.35billioninaFactSetsurvey.Profitswere37% higherat$2.33billion,also higherthanforecast.

Thecompany’soutlookof $8.8billionto$9.6billionof revenueforthecurrentquarteralsocameinlargelyahead ofaWallStreetestimateof justover$9billion.

Theresultsfitintoamixed bagforchipmakersthatare racingtobenefitfromtheAI boomassomeoftheircore marketsadvancemoreslowly. PCshipmentsareexpectedto

riseby2%thisyearaftera longlull,accordingtotheInternationalDataCorporation, whilesmartphoneshipments— Qualcomm’smainsourceof revenue—areexpectedtorise 2.8%. Qualcommanditspeers hopethatawaveofnewdeviceswithAIcapabilitieswill promptconsumerstobuy phonesandPCs. Chipmaker AdvancedMicroDevices andservermanufacturer SuperMicroComputer reportedresultsTuesday thatdisappointedinvestors whowereexpectingmorefrom twocompaniesnearthecenter oftheAIboom.Themainchipmakingbeneficiaryofthat boomsofarhasbeen Nvidia whoseshareshaveclimbed about75%thisyear,sending itsvaluationover$2trillion.

 HeardontheStreet:AI hypevs.realsupply........ B11

“InEurope,thereal-estate sector,thereal-estateinvestmentTrust(REITs),isavery bigsectorandprobablythe bestexampleofapartofthe marketthatwilldeleverageaggressivelyoverthenextfew years.”

SomeEuropeanreal-estate companiesborrowedtoexpand wheninterest-rateswereat near-zerolevels.Whenborrowingcostsstartedrising,someof thecompaniesinthesector highlysensitivetoratemovementswerecaughtunprepared, BNPParibas’Hjortsaid.

“Nowmanyofthereal-estatecompaniesaredistressed, andtheyhavestartedtode-

Clostridiumautoethanogenumhasbeenknownabout sincethe1990s,andwasfirst isolatedinthefecesofrabbits. Itissimilartoyeast,which eatssugartomakeethanol—a processthathasbeenusedfor thousandsofyearstomake beerandbread—exceptthis bacteriaeatscarboninthe formofgastomakeethanol. Thecompany’sfounders askedthemselvesiftheprocess couldbescaled.Ifitcould,they hadthemeansofgenerating potentiallyalargesourceof ethanolwhilecuttingcarbon emissionsfromsomeofthe world’sdirtiestindustries. “Youcanfindcarbondiox-

leverage,”hesaid. TheEuropeanreal-estate sectorlooksattractiveascompaniesareexpectedtosignificantlylowerdebt,hesaid.

Somecompanieswillsimply overtimeretainmoreoftheir earningstopaydowndebt. Manycompanieswillalsosell assetstoreducedebt,orsell projectstoothers,includingto private-equityfirms.

Otherswillgototheequity marketandraiseequity,though thisis“verytricky”becauseit dilutessharevalueandcould causethesharepricetofall, Hjortsaid.

Supplyofinvestment-grade debtshould“starttoslowfrom

here”asaresultofthisdeleveragingtrend,Hjortsaid.

Forhigh-yieldissuersthe situationisdifferent.Manyof thesehighly-indebtedcompanieshavebeenpostponingissuingdebtduetohighrates.But nowtheywillbeforcedtoissue torefinancedebtmaturing soon,potentiallycausingsupply toincrease.

“Supply[ofhigh-yieldcorporatebonds]willactuallyneed topickupfromherebecause therefinancingneeds,which theyhavebeenpostponing,are actuallyquitehigh,”hesaid.

Forthemostindebtedcompanies,orthosewitharatingof CCCorlower,continuedhigh

levelsofinterestratescould meantroubleandBNPParibas expectscontinuedunderperformanceofthisareaofthemarket.

Overall,thistrendofcompaniesreducingdebtisagood signforinvestors,especiallyin thecaseofhigh-qualityinvestment-gradecredit,andislikely tomakecorporatebondsmore attractive.

“Itreducesrisk.Itprobably improvesratingsovertime,” Hjortsaid.

“Itcanreducebondsupply overtimeaswell.Soallof thesethingssortofmakes broadinvestment-gradecorporatecreditattractive.”

idefromalmosteverysteel millandrefinery.Youcan evenmakeitfromtrash,”LanzaTechChiefExecutiveJenniferHolmgrensaid. LanzaTech’sapproachisto takewastecarbonemissions fromanindustrialsiteandinjectthemintoabioreactor withthebacteria.Fromthere, thebacteriadigestthegasto produceethanolandaprotein coproduct. Iftheethanolisusedto makesustainableaviation fuel,LanzaTechsaidagreenhouse-gasreductionofupto 85%canbeachieved,with cutsinparticulateemissions ofmorethan95%,whencom-

paredwithtraditionaljetfuels.Forasteelplant,a30% dropincarbonemissionsis achievable,accordingtothe company.Giventheindustry aloneaccountsfor11%of globalemissions,thatcould provesignificant. Sofar,thecompanyhas commercialoperationsinfour steelplantsinChina,aswell asanoilrefineryinIndiaand ArcelorMittal’ssteelplantin Ghent,Belgium. IrinaGorbounova,vicepresidentofmergersandacquisitionsandheadofXcarbInnovationFundatArcelorMittal, saidthetechnologypotentially canhelptodecarbonizethe

company’soperationsand“in producingvaluableproducts fromourcarbonbearinggases whichcanhelpthedecarbonizationofothersectors.”

InMarch,LanzaTechsecuredamajorgovernmentwin with$200millioninfunding fromtheDepartmentofEnergy.Thecompanyandits partnerTechnipEnergieswill betrialingthetechnologyto producelow-carbonethylene. Othermajorbrandstesting LanzaTech’stechnologyincludeLululemon,whichhas startedincorporatingethyleneintosomeofitsclothing, and Unilever,whichisusing ethanolinsomeofthecompany’sdetergents.

LanzaTech’smostprized assetmaybeitssustainable aviation-fuelproject.In2020, itspunoutaseparatecompanycalledLanzaJet,toproduceSAFfromlow-carbon ethanol.LanzaTechowns25% ofthesubsidiary,withother majorshareholdersincluding SuncorEnergy andBritish Airwaysowner International AirlinesGroup.BillGatesbackedBreakthroughEnergy Venturesand Microsoft’sClimateInnovationFundare amongitssupporters.

“Weareahard-to-decarbonizesectorsoweneedallsolutions,”saidJonathonCounsell, groupheadofsustainabilityat IAG.“Intermsofsustainable aviationfuelit’stheonlyreal solutiontoreduceemissionsin theneartermandintermsof

solutionsforlonghaulitisthe onlyrealsolution.” LanzaJetcounts Southwest Airlines asoneofitscustomers.Theairlineinvested$30 milliontogetanewalcoholto-jetfuelfacilityinSoperton, Ga.,upandrunning.Thefacilityisduetoopeninthenext monthandisexpectedtoproduce10milliongallonsofsustainableaviationfuelayear. However,despitethecompany’ssuccessessofarand thebackingfromhousehold names,thestockmarketsofar hasn’ttakentoLanzaTech. Thecompanywentpublic viaaspecial-purposeacquisitioncompanyinFebruary 2023andinjustoverayearof publictradingontheNasdaq, thecompany’ssharepricehas fallen70%toroughly$3.Asis oftenthecasewithstartups, thecompanyhasn’tturneda profitsofar.Anditsannual guidancewarneditmaynever. Holmgrensaidthefallis duetoamarketdislikeofcompaniesthatgopublicvia SPACs,aswellasamistrustof newclean-energytechnologies. Missingitsrevenuetargetdidn’thelp.LanzaTechexpectedits2023revenuetobe intherangeof$80millionand $100million,butitfellshortat $62.6million. Thecompanyisseekingto boostrevenuebyscalingup throughmoresites,investing inkeypartnershipssuchas Technipanduppingitsshare ofLanzaJet.

LANZATECH(2)

AICloudStartupRaises$1Billion

Nvidia-backed CoreWeavenearly triplesitsvaluation inafewmonths

BY ASA FITCH

CoreWeave,acloud-computingstartupbackedby Nvidia,nearlytripleditsvaluationto$19billioninanew fundingroundthathighlights boomingdemandforthecutting-edgesystemsthatpower artificialintelligence.

The$1.1billionfunding roundwasledby Coatue,and followsaroundaboutfive monthsagothatvaluedsevenyear-oldCoreWeaveat$7billion. TheNewJersey-basedcompanyrentsoutchipshousedin datacentersacrosstheU.S.

BY KATIE DEIGHTON

Stockphotographerswho survivedthedisruptiveadvent ofdigitalcamerasandonline salesarebracingthemselves forthenextgreattechshock: generativeAI.

Somearepredictingthe worst.

“Thestockphotographyindustryisgoingaway,”said Connecticut-basedphotographerTonyNorthrup.“AIis endingitfortheremaining photographerswhofigured outhowtostayprofitable.” Photographers’concerns highlightagrowingunease withinthewidercommercial creativeindustriesthatAIwill wipeoutjobsthatuntilnow havereliedonartistictalent anddecadesofexperience.

Industriessuchasmarketing,publishing,musicand newshavelongreliedonstock photographytocreate,illustrateorpromotetheirproductsforlesscostthancommissioningphotoswould require.AI’snewcapabilityto generaterealisticimagesfrom simpletextpromptsisnow givingstockclientsanaffordable,fastalternativethat comeswithgreatercontrolof thefinalimage.

“I’mconcernedthatmy besteffortstobeacreative photographerandresponsible businessownerwillquickly becomeallfornaught,”said ShannonFagan,aMemphis, Tenn.-basedphotographer.“I anticipatethatitwillmakemy stockphotographycollection somewhatobsolete.”

Dwindlingroyalties

Thecompaniesthatbroker stockimagerysaydoom-mongeringisunfounded.ConsumersarestillprovinghostiletowardAI-generatedimages, andsoaremarketerslooking toconveyanairofauthenticity,accordingtoexecutives.

Realphotosofrealthings arestillindemand,saidPaul Hennessy,CEOofstockphotographyprovider Shutterstock,onanearningscallin February.“Wearenotseeing ourcustomersatanylevelof scalewithadesiretobuy, purchaseandutilizeAI-generatedimages,”Hennessysaid. Thestock-photocompanies arehedgingtheirbets,however,byintroducingAItools

thatcustomersusetocreate anddeployAIsystems.Itis partofanewcropofcompaniesofferingcloud-computing tailoredforAI.

CoreWeave’sleaders,who cametotheAIbusinessvia WallStreet,havemadethe companyintooneofthebig winnersoftheAIboomby movingfasterthanthetech giantsinofferingaccesstothe latestAIhardware.

Theyalsohavebeenableto securelargeallocationsof Nvidia’sbestchipstocaterto theAIniche.

“Webuiltourinfrastructurespecificallytargetedfor thatspecializeduse,”saidMichaelIntrator,thecompany’s chiefexecutive.“We’renot heretostoreyourmom’sphotos,andwedon’tsupportpeople’swebsites.” Buildingthatinfrastructure

PhotographerPeteSaloutos’s businessissufferingfromAI; animagegeneratedusing generativeAI,right.

oftheirown.Lackingsimilar options,stockphotographers can’tbesosanguine.

Topphotographersinthe ’70s,’80sand’90sroutinely earnedthousandsofdollars fromadagencies,recordlabelsandmediacompaniesfor onephoto.Lifewasgood—untildigitalphotography changedeverything.

“Thesupplyjusttotally outpacedthedemand,”said Washingtonstate-basedphotographerPeteSaloutos. Photoagenciesconsolidated andmovedtheirbusinesses online,expandingtheirlibrariesandreducingpricesand royaltiesintheprocess.

“AtonepointIwasgetting asmuchas$2,000fortheuse ofaphoto,andthatwentdown to2cents,”Saloutossaid.He stillshootsstockbutnolonger expectsgoodreturns.

Somanyofhispeersbowed outthattheindustry’strade association,theStockArtists Alliance,shutdownin2011. Otherphotographersturned multipleroomsintheirhomes intostudiosandbeganshootingthousandsofphotosaday, factory-linestyle,tomaintain thefiguresontheirroyalty checks.

Somesaytheycanrideout thislatesttechquake,confidentthatmachinesareno matchforartistry.

AntonioGuillem,thephotographerbehindtheinternetfamous“distractedboyfriend” stockphoto,saidhestillmakes goodmoneyfromstockthathe shootsinhis2,000-square-foot

outcharginginfrastructure. Statesstartedtoreleasethe firstwaveofabout$5billion forahighwaynetwork,approvedinthe2021federalinfrastructurelaw.

isenormouslyexpensive,for CoreWeaveandfortechgiants including Microsoft,Google and Amazon.com thatitcompeteswith.

CoreWeaveraised$642millionfrominvestorsinitsprior fundinground. Ithasalso raisedmoney throughdebt: InAugust,it collected$2.3 billionfrominvestorsina dealsecuredby itsNvidiachips. Intratorsaid moresuchfinancingswere onthehorizonandwouldhelp furtherfuelthecompany’sexpansion.

Thenew fundinground valuesthe companyat $19billion.

Otherinvestorsinthelatestfundingroundinclude MagnetarCapital, Altimeter

Capital, LykosGlobalManagement andFidelity,the companysaid. CoreWeavewillusethe fundingtosupporttheexpansionofitsdata-centerinfrastructure,Intratorsaid,movingbeyonda U.S.-centric footprintinto Europeand eventuallyelsewhere.Already inthepast year,thecompanyhasexpandedfrom threedata-centerlocationsto 14andhasquadrupleditsemployeecountto morethan550. Havingabroadgeographic reachisincreasinglyimportantforcloud-computingcompaniesasAIdemandshiftsto

adeploymentphaseinwhich gettingquickresponsesfrom datacentersneartheenduser ismoreimportant. ThefundingforCoreWeave comesamidgrowingconcern abouttherisingvaluationsof AIstartupsthathaveyetto buildviablebusinessesoutof thetechnology.SequoiaCapitalestimatedinMarchthat around$50billionhadbeen spentonNvidia’schipsduring theAIboom,butgenerative AIstartupsgatheredonly$3 billioninrevenue.

BranninMcBee,CoreWeave’sco-founder,saidthe companysawnosignofa changeindemandforAIcomputingpower.

“Ithasn’tpeakedandI don’tseeanysignsofpeaking,”hesaid.“Ifanything,I’d sayit’sstillmateriallyincreasing.”

studiooutsideBarcelona,althoughhenolongersellsthe 1,600licensesadaythathedid threeyearsago.

ThatAIlook

Thebiggestcompaniesin stockphotographytakethe sameline.AIimagerysometimeslooksuncannyorfake, andmostconsumersandcustomerswanttherealthing, theysay.

Stockcompanies’AImodels willalsorequireastreamof freshphotostoremainup-todate,especiallywhenitcomes toimagesofnewtechnologies andcurrentevents,saidRebeccaSwift, GettyImages globalheadofcreative.

AndAIisunlikelytodiminishstockphotographers’pay anyfurtherbecausecompaniesincludingGettyhaveto keeppriceshighenoughto maintaintheirownoperations,Swiftsaid.

GettyImages’2023creative revenue,itstermforstock sales,declined1.1%fromthe yearbeforeto$578.7million. Shutterstock’ssubscribersdeclined10.8%,althoughitssales increased. Adobe,whichowns astockphotobusinessaswell asproductslikePhotoshop, doesn’tbreakoutthesalesof itsindividualsubscription products.

Stockcompanies’optimism abouttraditionalphotography hasn’tstoppedthemfromracingtobuildtheirownAIimagetoolssotheycanserve thoseclientswhodowantAI

PublicPolicy.

Chinese EVMakers Report

BY JIAHUI HUANGAND BEN OTTO

BYD andahostofother

Chineseelectric-vehiclemakerspostedhighersalesand deliveriesinApril,offeringa signofreboundingdemand amidcontinuingpricewars andgovernmenteffortsto spurconsumptioninthe world’slargestEVmarket. WarrenBuffett-backedBYD, theworld’slargestmakerof EVs,saidWednesdaythatits totalsalesjumped49%froma yearearlierto313,245vehicles forthemonth.Thatwas3.6% higherthanMarchsalesand markedthecompany’ssecond straightmonthofsellingmore than300,000units. Shanghai-based NIO said deliveriesofitselectriccars morethandoubledfroma yearearlierto15,620vehicles, itshighestgrowthratesince October2022.Thattally, helpedbythereleaseofnew modelsduringthemonth, markedanincreasefrom 11,866deliveriesinMarch. DeliveriesofGuangzhoubased XPeng’sEVs,meanwhile,rose33%fromayear earlierandabout4%fromthe previousmonthto9,393vehicles.

Chinesesmartphonespecialist Xiaomi reported7,058 deliveriesinitsfirstmonthof sellingEVs,whiledeliveries from Geely’sZeekrEVbrand nearlydoubledfromayear earlierto16,089vehicles.

ContinuedfrompageB1

ecutivesatotherautomakers thatteamedwithTeslaon chargingdescribedwidespreadconfusion. Teslahaslongbeenthe brightspotinamessychargingworld,outbuildingand outperformingothercompaniestocreatetheclosestthing theU.S.hastoanationalhighwaynetwork,consideredthe linchpintogreaterEVadoption.ATeslapullbackinEV chargingcouldslowtheentire U.S.market. Teslahasbeenopeningup itsnetworktootherkindsof carsandchasing—andwinning—publicfundingforchargers,aboontotheBidenadministration’splanstobuild

Thelayoffscaughtsome employeesbysurprise.One personwhowaslaidoffsaid thatwhileitwasunderstood thecompanywasinaprecariousposition,thecharging businesshadbeenviewedasa priorityamongemployees. Teslasharesfell1.8%on Wednesdayafterdeclining 5.6%Tuesday. Thedeparturesbaffledthe chargingindustry.

AfterTeslaopenedits chargingtoothercars,major automakersspentlastsummer announcingaswitchtothe Tesla-designedchargingconnectorandsigningagreementstoallowtheircustomersaccesstotheTesla Superchargernetwork.

“Thisisbyallaccountsa dramaticmove,”saidNickNigro,founderoftheresearch andconsultinggroupAtlas

Teslashould“takethings morecarefullyinthefuture becauseincreasingamountsof peoplearedependenton them.Inthecaseofinfrastructureprojects,there’slots ofsitesthatareunderdevelopment,includingthosethat federalawards areattached to,”Nigrosaid. OnTuesday, ChiefExecutive ElonMusk postedonX, “Teslastillplans togrowtheSuperchargernetwork,justata slowerpacefor newlocations andmorefocuson100%uptime andexpansionofexistinglocations.” Someofthoselaidoffwoke upTuesdaytofindthemselves lockedoutofthecompany computersystemandlearned aboutthelayoffsinmessages totheirpersonalemailaccounts.

arttoday, competewiththe likesofMidjourneyandOpenAI’sDall-E,andbeinpositionasthetechimprovesand demandgrows. Lastyear,Adobeintroduced Firefly,animage-generatingAI modeltrainedonitsAdobe Stocklibraryandcontentinthe publicdomain,Shutterstock launchedanAIimagegeneratorpoweredbyOpenAIand GoogleAItech,andGettyImagespartneredwith Nvidia to createGenerativeAIbyGetty Images.AllmarkettheirAI productsascommerciallysafe, meaningtheytrainedthemodelsonimagesforwhichthey havetherights,andintroduced someformofcompensationfor thoseimages’photographers.

Fagan,theMemphis-based photographer,saidhereceived aone-offAI-trainingpayment fromAdobeStocklastyear thatamountedtoaround10% to12%ofhisannualincome fromthecompany.

“Insomeways,thismomentintimefeelslikethe calmbeforethestorm—borrowedtimebeforewewillall inevitablyneedtoadaptto spendourtimedoingsomethingelse,”Fagansaid.

Bend,don’tbreak Adobeisencouragingphotographerstousegenerative AItocreatemoreimagesand sellmorelicenses,saidScott Belsky,thecompany’schief strategyofficerandexecutive vicepresidentofdesignand emergingproducts.IfAdobe

“DearEmployee,”themessagebegan.“Asyouknow,we recentlyannouncedasignificantdecisionthatimpactsthe entireorganization,andyou directly.”

The Supercharger layoffscaught someemployees bysurprise.

TheInformationearlierreportedthatMusk,inaninternalemailsentlateMonday, saidhewould dismisseveryoneintheSupercharger group,andits seniordirector RebeccaTinucciwasleavingthecompany. Theworld’s most-valuable automakerlast weeksaiditsfirst-quarter profitplungedtoitslowest levelsince2021.Teslaplansto slashmorethan10%ofits globalworkforceamidbroader coolinginconsumerdemand forelectricvehicles.

Thechargingpullbackis thelatestblowtowaning growthinEVsales.

seesdemandforphotosof womeninredsweaters,forinstance,photographerscould useAItotweaktheirexisting picturesofwomeninblueand purplesweaterstocapitalize. Resistance,forBelsky,isfutile.

“Whenartistssaytome,‘I hategenerativeAI,whyare youevenallowingitinanyof yourproducts?’I’mlike,‘Because[otherwise]peopleare gonnagotoillegitimateplaces andyou’regoingtoendup gettingpaidnothing.’”Belsky said.“Thisisarevolution,this isthenewdigitalcamera,and wehavetoembraceit.”

Butothersquestionhow longitwilltakebeforegenerativeAIstopsincludingextra fingersinitsimagesandbecomesessentiallyimpossibleto distinguishfromrealphotos.

Northrup,theConnecticutbasedphotographer,nowconcentratesonotherprojects, suchastheYouTubechannel herunswithhiswifeandhis businesspublishingeducationalbooksonphotography.

“I’manoldtechguy,I’ve beenthroughitacoupleof times,”hesaid.“SoIhave constantlybeenlookingahead forthenextthingthat’sgoing tocrushallmydreamsand thestuffthatIbuilt.”

WatchaVideo

Scanhereto seeavideoon generativeAI andintellectual property.

Atthestartoflastyear,automakerswerehavingahard timekeepingupwithdemand forEVs,butthewellofwilling consumersprovedshallower thanexpected.Anearlywave ofadoptersmadetheirpurchasesandbylastsummer, dealersbeganwarningofunsoldelectricvehiclesclogging theirlots.Withinmonths,automakerswerescalingdown theirplansforEVsandadding hybridstotheirlineupsas thoseroseinpopularity. Atleastsomeofthereason forEVhesitancyisthenation’s fledglingchargingnetwork. Theabilitytorepowercarsin about30minutesandletdrivershopscotchfromchargerto chargeracrossthecountryis consideredessentialtoputting EVdriversatease. Teslaisknownforbuilding chargingstationscheaperand fasterthancompetitors.Itsinstallationsareuparound19% thisyearthroughMarch,to 1,526chargingports,according tothefirmEVAdoption.That ismorethanfourtimesas

Hybrid-vehiclespecialist Li Auto wasalaggardforthe month,withdeliveriesrising 0.4%fromayearearlier—and falling11%fromMarch—to 25,787vehicles.Theyear-overyeargrowthwasitsslowest monthlyexpansionsinceAugust2022. EVmakersinChinahave beenfacingslowingdemand growthinrecentmonthsamid overcapacityandlackluster consumptionstemmingfrom flagginggrowthintheworld’s second-largesteconomy.Many carmakersincludingheavyweights Tesla andBYDhave respondedwithroundsof pricereductionsthathavecut intobottomlines.

Pricecutsdeepenedin April,andenthusiasmforthe BeijingAutoShowandaraft ofmodelreleaseshelpedsentiment.Beijinghasbeenseekingtospurnewdemandas well.Agovernmentpolicyreleasedneartheendofthe monthofferedconsumersreplacingcarswithelectricor hybridvehiclesuptothe equivalentofnearly$1,400. Beijing-basedLiAutohas facedchallengesinitsentry intotheall-electricvehicle space,withitsfirstsuch modelmissinganalysts’sales forecastsinthefirstquarter afterdebutingwithaslightly higher-than-expectedprice tag.

Thecompanyalsoisnavigatingintensifyingcompetitionfrom Seres,anotherhybrid-carspecialistbackedby Chinesetelecomgiant Huawei Technologies.SeresoutdeliveredLiAutointhefirstquarter,tallying85,842unitsversusLiAuto’s80,400.

manypiecesofequipmentas thenearestchargingprovider. AndresPinter,co-CEOof BulletEVChargingSolutions, asubcontractorbuildinga dozenSuperchargersitesin TexasforTesla,saidall20of itscontactsatTeslahadbeen laidoff.Pinterreceivedaseriesofbouncebackemails— “Thisemailaddressisnolongervalid.Anyfutureemails senttothisaddresswillnot bereceived”—butnoother communicationfromthecompany.Hehaltedconstruction workatthesitesfornow. Othercompaniesbuilding chargingnetworksmightlook tocapitalizeonthepullback, saidCarleenCullen,cofounderandexecutivedirector ofCooltheEarth,whichadvocatesforEVadoptionandimprovementsinchargingreliability.“Withupgrades makingstationsmorereliable, Tesla’sslow-walkapproach maycauseshort-termmarket upheaval,butitwillresultina healthiercompetitivelandscape,”Cullensaid.

MARKETSDIGEST

LateTrading

Most-activeandbiggestmoversamongNYSE,NYSEArca,NYSEAmer. andNasdaqissuesfrom4p.m.to6p.m.ETasreportedbyelectronic tradingservices,securitiesdealersandregionalexchanges.Minimum sharepriceof$2andminimumafter-hoursvolumeof50,000shares. Most-activeissuesinlatetrading Volume

MARKETS

S&P500SlipsAfterFedMeeting

Nomajorsurprises fromcentralbankas indexesshow measuredmoves

BY SAM GOLDFARB

TheS&P500extendeditsrecentslideaftertheFederalReservekeptratesattheirhighest levelinmorethan20years.

WEDNESDAY’S MARKETS

Thebroadindexfell0.3%, deepeningitslossesfromTuesday,whenitregistereditslargestdropsincelateJanuary.The tech-heavyNasdaqComposite fell0.3%.The DowJonesIndustrialAveragerose0.2%, orroughly87points.

Investorshadwidelyexpectedthecentralbanktokeep ratesunchangedbutwereon edgeforcluesabouthowthey mightmovein2024andbeyondafterastringoffirmerthan-expectedinflationdata.

Duringhispostmeeting newsconference,FedChairJeromePowellsaiditwouldlikely takelongerthanexpectedfor thecentralbanktohaveconfidenceinflationismovingtowardits2%target.Buthealso tampeddownspeculationthat theFedmightneedtoraise ratesagaintofullycontrolinflation.

“Thegoodnewswasthat therewasnomajorsurprise,” saidKevinGordon,seniorinvestmentstrategistatCharles Schwab.HesaidtheFedwasn’t overreactingtotherecentinflationdatabutwasalsosignaling thatthebarwashighforcuttingrates.

StockshadbeenmixedheadingintoPowell’scomments. Theyjumpedbrieflyduringhis remarks,onlytolatergiveup thosegains.

Investorconcernsaboutinflationandinterestrateshave beentheprimarydragon stocksinrecentweeks.Aftera strongstartto2024,theS&P 500closedoutitsworstmonth sinceSeptemberonTuesday. Theindexisstillup5.2%this year.

Treasuryyields,which largelyreflectinvestorexpecta-

tionsforshort-termratesset bytheFed,slidearlyonin Powell’snewsconferencebut thenretracedmostofthosedeclines.Theyieldonthe10-year benchmarkTreasurynotewas sittingaround4.63%inlateafternoontrading,accordingto Tradeweb,downfrom4.683% Tuesday.Itisstillupsharply from3.860%attheendoflast year. TheFed’sinterest-ratedecisionandPowell’snewsconferencecappedabusydayfor traders,whoalsowereconfrontedwithabatchofeconomicdataandaslewofearningsreportsfrommajor companies. Areportofweaker-than-expectedmanufacturingactivity, anddropinjobopenings,had onlyamarginalimpactonmarkets,buttheearningsreports ledtobigmovesinsome stocks.

Onthepositivesideofthe

Source:FactSet

ledger,pharmaceuticalgiant Pfizer gained6.1%afterits first-quarterearningstopped analysts’estimates,thanksin

parttosignsofresiliencein salesofitsCovid-19treatment Paxlovid. Amazon.com gained2.3%

aftertheartificial-intelligence boompoweredgrowthinits cloud-computingbusinesses.

Amonglaggards, Starbucks fell16%afterthecoffeeseller reportedasharpslowdownin visits.Weakearningsalsodrove down CVSHealth sharesby 17%.

AtmiddayThursday,Japan’s Nikkei225wasup0.1%and HongKong’sHangSengIndex wasup2%.S&P500futures wereup0.5%.

AUCTIONRESULTS HerearetheresultsofWednesday'sTreasury auction.Allbidsareawardedatasinglepriceatthe market-clearingyield.Ratesaredeterminedbythe differencebetweenthatpriceandthefacevalue.

17-WEEKBILLS Applications $181,168,079,100 Acceptedbids $60,191,057,100 "noncompetitively $710,516,500 "foreignnoncompetitively $0

Thebills,datedMay7,2024,matureonSept.3,2024.

Promotes Partnerto DealRole

BY LAUREN THOMAS

GoldmanSachs haspromotedoneofitspartnersto helpdrivedealmakingefforts astheinvestmentbankaims tostayatopthecloselymonitoredrankingsofmergeradvisers.

DanBlankhasbeennamed co-chairofGoldman’sglobal merger-and-acquisitiongroup, accordingtoaninternalmemo seenbyTheWallStreetJournal.Henowholdsthetitle alongsideGeneSykes,TimIngrassia,DustyPhilipandGilbertoPozzi.

Blank,47,joinedGoldman in2021.Previously,heled MorganStanley’sNorthAmericanIndustrialsInvestment Bankingbusiness.

RecentlyatGoldman,Blank workedwiththeme-parkoperatorSixFlagsonitsmerger withindustryrivalCedarFair andwithportable-building providerMcGrathRentCorpin itsdealtobeacquiredby WillscotMobileMiniHoldings. Goldmanlastmonthreportedstrongfirst-quarter profitthatwasbolsteredin partbysolidperformancein thefirm’scoreinvestmentbankingdivision. Thefirstquarteroftheyear showedsignsofimprovement afteraslowpatchoverallfor dealmaking,withseveralsizableacquisitionsannounced, includingCapitalOne’smore than$35billiondealforDiscoverFinancialServicesand design-softwaremakerSynopsys’roughly$35billionacquisitionofAnsys.Still,investment-bankingactivityremains belowhistoricnorms. Goldmanisrankedasthe topinvestment-bankingadvisergloballysofarthisyear intermsofdealvalue,putting itaheadofJPMorganChase andMorganStanley,according toDealogic.Globaldealvolumesareupabout22%yearto date.

KKRSeesthePrivate-EquityPipelineAccelerating

BY ROD JAMES

Themarketforprivate-equitydealsshowsstrongsigns ofrecoveringandleadersof buyoutfirm KKR seeanaccelerationintheirtransaction pipelineafteradrop-offduringthisyear’sfirstquarter.

Co-ChiefExecutiveScott Nuttallreferredtoaloosening increditusedtosupportdeals astheyearbeganasakeyto providingfinancialgreasefor thewheelsofdealmaking. “TheleveragedcreditmarketopenedupinJanuary.We arestartingtoseethisimpact

OfMexico

ContinuedfrompageB1

bentadvantage—andmake smallerupstreamacquisitions whileboostingitsonshoreU.S. natural-gasproduction. BPalsohasbeenthefocus ofpersistentspeculationabout itsvulnerabilityasatakeover target.Someanalystsandinvestorsthinkitisonlyamatter oftimebeforeEurope’sbiggest oil-and-gascompaniesconsolidate,eitherthroughoutright mergersoracombinationof jointventuresandspinoffsof corebusinesseswithotherU.S. orEuropeancompaniesorgovernment-backedplayersinthe MiddleEast. BPhassaiditisconfident itsstrategyisbearingfruit nowandwillcontinuetodo so. BP’sexistingGulfofMexico footprintandprospectsarea primeassetforthecompany, andgiveitroomtogrowthere, buttheclockistickingasthe worldtransitionstootherfuels. BP’spublicembraceofthe Gulfisacomponentinthe company’sshiftbacktowardits oil-and-gasroots,whichstarted lastyearunderLooney.Ina surprisemove,hestepped

allourbusinesses…inparticular,theprivate-equitypipeline,whichisupsignificantly,” Nutallsaidduringanearnings callWednesday.Morereadily availablebankfinancingwill makeiteasierforKKRtosell, refinanceandpubliclylistthe companiesitalreadyowns,he added.

TheslowerpaceoftheNew Yorkfirm’sprivate-equityinvestingduringthejust-ended quarterhadmoretodowith thetimingofdealclosings thanwithalackofinvestment opportunities,Nuttallsaidon thecallwithsecuritiesana-

lysts.

KKRspent$1.1billionon acquiringprivatelyowned businessesduringthefirst quarter,comparedwith$2.86 billioninthesameperioda yearearlier.

Inoneofitslargestrecent deals,KKRcloseditsacquisitionofhealthcare-technology businessCotivitiWednesday, Nuttallsaid.KKRagreedtoacquireCotivitiinFebruaryfrom buyoutfirm VeritasCapital in atransactionthatvaluedthe SouthJordan,Utah-based businessataround$11billion. Twolargecorporatecarve-

downlastSeptemberoverundiscloseddetailsofworkrelationships. Auchincloss,theformerfinancechief,steppedintothe rolepermanentlyinJanuary andpushedthecompanyfurtherbacktofossilfuels,which currentlyproducehigherreturnsthanmanyalternative energysourcessuchaswind andsolar. Initsbidtoattractmore U.S.shareholders,BPisunder pressuretokeepcashflowing throughbuybacksanddividends.Someinvestors,includingasmallbutvocalLondonbasedactivistfundcalled

BluebellCapitalPartners, wantlessspendingongreen energyandmoreonfossilfuels. BPunderAuchinclosshas saidithasthecapacitytoincreaseoilproductionby2%to 3%through2027. HetoldinvestorsinFebruarythatthecompanyhasthe potentialtomoveforwardwith thePaleogeneprojects,called KaskidaandTiber,aswellas expansionprojectsinBrazil, CanadaandtheMiddleEast. Headdedthatifenoughof thoseprojectspanout,“thenI thinkwecandobetterthan that2%to3%.”

outtransactionsremainpendingforthefirm,oneinEurope andoneintheU.S.,according toCraigLarson,aKKRpartnerandheadofinvestorrelations.KKRseesmanyopportunitiesintheAsianprivateequitymarket,particularly Japan,Larsonsaid.Thefirm alsohaspendinginvestments suchasamajorinfrastructure dealinItaly,aswellastransactionsinGermanyandPortugal,headded.

InKKR’screditstrategy,the firmissued$7billioninloans duringthefirstquarter,comparedwith$2.23billioninthe

sameperiodayearago,accordingtoanearningspresentationpostedWednesday. Mostofthenewdebtwentto private-equity-ownedbusinesseslookingtofinanceacquisitionsorwasunderpinned byfinancialorphysicalassets asasset-basedloans.

Thefirm’sfee-relatedearningsjumped22%to$669millioninthelatestquartercomparedwithlastyear’sfirst quarter.Fee-payingassetsundermanagement—afocal pointformanyequityanalysts,whoprizecontractually guaranteedincome—climbed

13%to$471billionoverthe12 monthsthroughMarch. KKRraised$31billionin netnewcapitalduringthe just-endedquartercompared with$11.7billionintheyearearlierperiod,anincrease thathelpeddrivethefirm’sfinancialresults.Overall,KKR’s assetsundermanagement rose13%fromayearearlierto $578billionbytheendof March,including$240billion of“perpetualcapital”whose 22%growthlargelystemmed fromwhollyownedinsurer GlobalAtlantic’soperations, accordingtothepresentation.

Buttheprofitmarginshave toberight,hesaid.“I’mgoing tobesuper-focusedonreturns.” Paleogeneoilcostsmoreto bringup,saysMfonUsoro,seniorenergyanalystwithresearchfirmWoodMackenzie. Anultra-high-pressurebarrel willrequirecapitalinvestment of$13to$15,comparedwith$6 to$9forconventionalGulfof Mexicooperations,Usorosays. Butasidefromcosts,BPand otherGulfproducersalsocite theless-intensivecarbonemissionsofoilfromthebasin, whichtiesintocompanies’ pledgestoreduceemissions.

BPisfindingnewwaysto cutcosts,avoiddowntimeand improvesafetyintheGulfof Mexico,Auchinclosssaidina Februaryinterview.Thecompanyistestingoutartificialintelligencethatcanpredict equipmentfailuresbysending massesofdatabacktocentral engineeringnervecentersin HoustonandnearLondon. “GenAIcansortit,itcan structureit,cancommunicate itbacktotheengineersand scientistsmuchfasterthanhumans,”hesaid. BPhasfocusedonsmaller, more-efficientoffshoreplatforms,linkingtoandreplicat-

ingwhatisalreadyinthewaterwherepossibletocutcosts andtimetoproduction. Fromitsoriginaldesignto completionovermorethana decade,BPreducedArgos’s costsabout60%,StarleeSykes, BP’sthen-headofGulfofMexicoandCanadadeepwateroperations,saidinaninterview lastyearwhentheplatform startedproduction.Sykesnow runsBP’sbiogasbusiness,ArchaeaEnergy.

“Idon’tthinkyou’llsee manymoreArgosesorThunderHorses,”Sykessaidinan earlierinterview.“Theseare giantplatforms.”

HEARD ON THE STREET

AmazonGetsMoreFuelforAIRace

Bigtechcompaniesarehavinga spendingpartythisyear,andthe biggesttechofallwon’tbesitting itout.Ithelpsthat Amazon.com’s investorshavebeentherebefore. Thesector’ssalesleaderposted strongfirst-quarterresultson Tuesday.Revenuegrowthbeat WallStreet’stargetsacrossnearly allofthecompany’ssegments, whileoperatingincomemorethan tripledyearoveryeartoahighof $15.3billion,beatinganalystestimatesby36%.ThatputAmazon’s operatingmarginabove10%for thefirsttimeinthecompany’s history,accordingtodatafrom S&PGlobalMarketIntelligence. Investorsweren’tfazedbyAmazon’sprojectionforrevenueand earningsgrowthinthesecond quarterbeingabitbelowWall Street’sprojections.Thathasbecomecommonplaceforacompany knowntoissueconservativeforecasts;Amazon’soperatingincome projectionhasbeenbelowanalysts’consensusforecastsfornine ofthepast12quarters,according todatafromFactSet. Themorecloselywatchedpredictionwasforcapitalspending, whichAmazonsaidwillgoup “meaningfully”thisyearfromits

nearly$49billionincapitalexpendituresandequipmentfinance leaseslastyear.

Thatmessagewassimilartothe ones Microsoft,Googleand Meta Platforms deliveredlastweek. Thosedrewamixedreactionfrom investors.Meta’splantoboostthis year’scapexby12%drovethe Facebookparent’sstockprice downsharplythefollowingday, whileMicrosoftandGoogle’sparent Alphabet sawtheirsharesrise

aftertheirreports.Amazon’s shares—upbytwo-thirdsoverthe past12months—endeduprisinga bitinafter-hourstrading.

Somecreditforthatshouldgo toAndyJassy.Amazon’schiefexecutiveofficerspentpartofTuesday’scalldetailingthestrongdemandthecompanyisseeinginits AWScloudbusinessforgenerative AIworkloads.Hesaid:“Wedon’t spendthecapitalwithoutvery clearsignalsthatwecanmonetize

itthisway.” Headdedthereisalotofroom toimproveonthecoststructure oftheretailbusiness,whereprofit marginshitahighinthequarter. ThatstronglysuggestsAmazon mightbepastthedaysinwhich itsinfamous“investmentmodes” crateritsprofits.Creditcanbe giventoagrowingmixofhighermarginbusinessessuchascloud computing,advertisingandsubscription-basedservices.Adrevenuejumped24%yearoveryearto $11.8billionintherecentquarter, andthatwaswithalightadload fornowonitsPrimeVideo streamingservice. AWSrevenuerose17%year overyear—up4percentagepoints fromtheDecemberquarterand thebestgrowthratethatsegment hasseeninmorethanayear.The cloudsegmentdeliveredrecord operatingprofitof$9.4billion, 25%higherthanWallStreet’sestimates.AWSisnownearingannual revenueof$100billion,makingit thelargestcorporatesoftware businessnexttoMicrosoft. TheEverythingStoreneedseverythinggoingrighttocoverAI’s growingbills.

—DanGallagher

NewCannabisLabelLeavesPotStocksinLimbo

Soon,cannabismightnolonger belumpedinwithheavy-duty drugssuchasheroininAmerica’s classificationofcontrolledsubstances.Butmostoftheproblems thatmadepotstocksalousyinvestmentwillstickaround.

CannabisstocksjumpedTuesdayonreportsthattheBidenadministrationwillrelabelitasa lessdangerousdrug.The AdvisorSharesPureUSCannabisETF,an exchange-tradedfundthattracks abasketofAmericangrowers suchas GreenThumbIndustries and Trulieve,gained25%.Marijuanacouldchangefrombeinga ScheduleIsubstance,alongside heroin,toaScheduleIIIsubstance suchascodeineandtestosterone. Crucially,though,thiswouldn’tlift thefederalbanonmarijuana.

Thedevelopmentcomesafter theBidenadministrationlaunched areviewofcannabis’sclassificationinlate2022andmaybeanod toyoungervotersaheadofthis year’spresidentialelection.Marijuanaisbigbusiness:U.S.sales areexpectedtoexceed$30billion in2024,accordingtoresearch firmBDSA,approachingone-third thesizeofAmerica’stobaccoindustry. Buttherearehurdlestoturning theproposalintoareality.First,it needstobereviewedbytheWhite House;thenthepublicwillgeta chancetocomment.Groupsthat don’twanttoseethedrugtreated morelenientlycouldmountalegal challenge, slowingmattersdown. DonaldTrump couldtryto unpickthe proposalifhe winsbackthe presidency,althoughthis wouldbea lengthyprocess. Themostconcretebusiness benefitofreclassifyingmarijuana wouldbetodramaticallyimprove thecashflowsofAmericangrowers.Potbusinessescurrentlypay effectivetaxratesofmorethan 70%becauseofthepunitivetreatmentofcannabisunderthesocalled280Etaxcode.AnycompanysellingaScheduleIdrug

isn’tallowedtodeductregularexpensessuchastravelandrent fromtheirtaxbill.

U.S.grower Verano estimated thatitcouldhavesavedover$80 millionfromitsroughly$149million2023taxbillwithout thisrestriction.Lowertax billswouldhelplegitimate companiestocompete moreaggressivelywithundergroundrivals. Reclassificationwould sendasignalthattheindustryisgaininglegitimacyandreviveapushto givecannabiscompanies accesstoregularbanking servicessuchaschecking accountsthroughabillcalledthe SaferBankingAct. Buttheproposalwon’tfixother challenges.Aslongascannabisremainsillegalatthefederallevel, majorstockexchangessuchas NasdaqwillprobablyremainreluctanttoletU.S.potcompanies list.ThismeansU.S.cannabis companiesmusttradeonlessliq-

uidexchangesinCanada,where thedrugisfullylegal.

TheU.S.federalbanmakesit trickyforinstitutionalinvestorsto owncannabisstocks,which weighsonvaluations.Itishardto getabanktoactascustodianfor U.S.marijuanashares,soinstitutionalownershipcanbeaslowas 10%foreventhebestgrowers. Thelikesof BlackRock andVanguarddohavesomeexposure,but ittendstobethroughproxies suchascannabisreal-estateinvestmenttrust InnovativeIndustrialProperties,whichdoesn’t “touchtheplant.”

Tradingcannabisacrossstate lineswillremainforbidden,creatinghugeinefficienciesforgrowers.Theymustbuildcultivation facilitiesineverystateinwhich theysell,includingthosewitha climateill-suitedtotheheat-lovingmarijuanaplant,suchasNew York.Andcompaniesfacingaglut ofproduceinonepartofthe countrycan’tgetrelieffromfallingpricesbyshippingtheirhar-

ThingsatStarbucksAreThisBad

Onewaytogaugehowbadthings areat Starbucks:itsstockprice. Thecoffeechain’ssharesfell 15.9%onWednesday—aboutas muchasonthedaywheninvestors realizedaglobalpandemicwould shutdownitscafesinMarch2020. Anothersignofthechain’stroubles istheover-the-topnatureofthe turnaroundplanannouncedby ChiefExecutiveLaxman Narasimhan:“TripleShotReinventionWithTwoPumps.”Yes,really. Justayearaftervisionaryboss HowardSchultzlefttheC-suitefor thethirdtimeandlefthimfullyin

charge,Narasimhanisfacingdown sometrulyuglynumbersall aroundtheworld.Despitehigher prices,same-storesalesintheU.S. marketfellbythemostsincefear ofCovid-19keptpeopleawayin thefirstfiscalquarterof2021. AndinChina,whichSchultzsaid wouldbecomethecoffeechain’s mostimportantmarket,samestoresalesfellbythemostsince Covidlockdownsfivequartersago. Hokey-soundingturnaround planshaveabrightside.They showanappreciationforthe depthsofacompany’sproblems.

ThinkofBestBuy’ssuccessful “RenewtheBlue”andBurger King’s“ReclaimtheFlame.” But,asCollegeofWilliamand MaryprofessorandauthorPeter Atwaternotes,Starbucksmanagementisinaquadranthedubsthe “PassengerSeat.”Itfeaturescertaintybutalackofcontrol.Schultz, whocamebacktwicetoleadturnaroundsatthechain,wastheonly oneactuallyinthedriver’sseat,accordingtoAtwater. Attheveryleast,onehasto wonderwhowasincontrolofnamingitsactionplan. SpencerJakab

FoodMakers Hopefor ARevival

Makersofpackagedfoodinthe U.S.arepinningtheirhopesona salesrecoverylaterthisyear.But investorsaren’tsosure.

KraftHeinz onWednesdayreportedresultsthatdidn’tgodown wellwithWallStreet.Organic sales,whichstripoutcurrency andmergerimpacts,fell0.5%from ayearearlierinthefirstquarter. Thiswasflatteredbyhigher prices:underlyingvolumesdeclined3.2percentagepoints.

Thecompany’ssharesfell6% withrivalslikeGeneralMillsand J.M.Smuckerdeclining.Allthree aredownsignificantlyoverthe past12months,comparedwith handsomegainsinthebroader market.

KraftHeinzcitedseveralreasonsfortheweakness,including reducedfood-stampbenefits.This isn’tsurprising,asthesebenefit cutsbeganinMarch2023for moststates.

Thatmeanscompaniesshould seelessofanimpact—atleast comparedwithayearearlier— startinginthesecondquarter, whichissomethingKraftHeinzreiteratedonWednesday. SoitwasperhapsmoreworryingthatKraftHeinzcitedfresh softnessinits“awayfromhome” businessintheU.S.,whichprovidesproductslikeketchuptorestaurantsandothervenues.This suggestsconsumerscouldbepullingbackmorebroadlyfromdiscretionaryspending.

KraftHeinzmaintaineditsoutlookfor0%to2%organicsales growththisyear,aidedbypricing butalso“volumesinflectingpositiveinthesecondhalfofthe year.”

Itmaytakemorethanjustlappingareductioninfood-stamp benefitsforthattocometrue.

vestelsewhere.Cannabisfarmers inOregonarecurrentlystrugglingtounloadthe9.6million poundsofmarijuanatheyharvestedin2023—equivalentto morethan2poundsforeveryresident. AlthoughU.S.cannabisstocks haveralliedthisyear,theyhave beenahorriblelong-terminvestmentasinvestorshavegrown morecautiousaboutthechances offulllegalization.Onaverage,the AdvisorSharesindexhaslost23% annuallysinceitsinceptioninlate 2020.Sharesofcompaniessuchas Trulieve, Curaleaf,GTIand Cresco nowchangehandsfor nearly11timestheirprojected earningsbeforeinterest,taxes,depreciationandamortization,on average,downfromapeakof22 timesinearly2021. Reclassificationwouldprovidea welcomeboostforpotstocks. Evenifithappens,theywillremainariskybetonthebigger prizeoffederalapproval.

—CarolRyan

Itisagoodtimetobeinthe businessofmakingAIchipsand servers.Butevenred-hotdemand can’tmakesupplymagicallyappear. AdvancedMicroDevices saw first-quarterrevenuesurge80% yearoveryearinitsdata-center segmentthatsellschipsusedto powerartificial-intelligenceservices.Thecompany’sprojection forthesecondquarterimplied95% year-over-yeargrowthforthatkey segment.

ButWallStreetwasexpecting robustnumbers,havingpropelled AMD’sstockpriceup77%overthe past12monthsaheadofthereport.Hence,eventhecompany boostingitsfull-yearprojectionfor AI-chipsalesby14%fellshortof somemoreloftyexpectations. AMD’ssharesdroppedroughly9% onWednesday. Sky-highexpectationsreally hurt SuperMicroComputer knownasSupermicro.ThecompanymakesspecializedAIservers usingchipsfromAMDandmore widelyfrom Nvidia,anditsgrowth hasbeenonatear,withfirst-quarterrevenueof$3.85billiontriple fromayearago.Butthatfell about3%belowWallStreet’stargetforthecompany’sthirdquarterthatendedinMarch.Supermicro’sstock,whichmorethan tripledinvaluesincethestartof thisyear,fell14%onWednesday. Bothcompaniesnotedintheir earningscallsonTuesdaythat supplyconstraintsareweighingon sales.“Sothere’snoquestionatall thatifwehadmoresupply,we havedemandforthatproduct,” AMDChiefExecutiveLisaSusaid ofitsMI300chips. SupermicroCEOCharlesLiang notedsupplyshortagesforitslatestliquid-coolingsystems,which aremuchindemand. Thoseshortagesareexpectedto betemporary.Supermicronudged upitsaggressiverevenuetarget forthefiscalyearendinginJune toamidpointof$14.9billion, morethandoublewhatitmade lastyear.ButSupermicrohasa capital-intensivebusinessmodel andsaidTuesdaythatitmayneed toraisemorecapitalifdemand keepspickingup.TheAIgoldrush isn’tcheap,evenforthosesupplyingthepicksandshovels. —DanGallagher

Partneringfor ProgressToward NETZERO

RENEWABLEENERGYPLAYERS AREEXPLORINGHOW FINANCING SOLUTIONS LIKE POWERPURCHASEAGREEMENTS(PPAS) CAN ACCELERATEPROGRESS TOWARDS ACHIEVINGNETZEROEMISSIONS

Theenergymarketpresentsacomplexandhighlyvolatile landscapecharacterizedbyfluctuatingpricesand evolvingregulations.Asregulatoryframeworksevolve, businessesfaceincreasingpressuretodevelopambitious decarbonizationstrategiestoreducecarbonemissions andtransitiontorenewableenergysources.

PPAsofferastreamlinedapproachtosourcingrenewable energy,oftenprovingtobethemostcost-effective optionforbusinessesstrivingtomeettheirsustainability goals.Typicallyspanningfiveto20years,theseagreements playadualroleintoday’sclimate-consciouslandscape, underpinningboldcorporatecommitmentstoESG principles.Thishasahaloeffectonbrandcredibility whilefacilitatingcollaborationsrootedinshared environmentalgoals.

“Multinationalsarelookingforpartnersontheir decarbonizationjourneys,”saysSergioHernándezdeDeza, VPLargeCustomersPPA&DecarbonizationSolutions.

“PPAsofferstabilitybecauseit’salreadybeendemonstrated thatrenewablesarecheaperandmorecompetitive comparedtofossilfuels.”

ThePPAmarketincreasedby40%1 lastyear,drivenby theescalatingdemandforcleanpower.Corporations playedapivotalroleastheprimarydriversofthisgrowth.

Additionally,PPAvolumessoldbyutilitiesnearlydoubled, withSpain’sIberdrolaleadingthewaybysecuringnine dealstodistributepowerfrom908MWofcapacity.

Iberdrola’sPPAsincludealandmarkagreementwith Mercedes-Benzwhichcommitstheautomotivegiantto sourcingelectricityfromoffshoreBalticSeawindfarm Windanker,whichwillmakethecompanyWindanker’s largestbuyerby2027whilepromotingcross-industrydeals.

Similarly,aPPAbetweenHeinekenSpainandIberdrola offershoteliersexclusivebenefitswhileslashingthe brewery’snetemissionsby30%nolaterthan2025.

Byaddressingfinancialuncertaintiesandnetzeroobjectives simultaneously,earlyadoptersareshapingamarketwhere profitandcleaninvestmentgohand-in-hand.Withthe PPAecosystemmaturingrapidlyoverthepasttwoyears, stakeholderscannowleveragedataandbenchmarksto strengthentheirtransactions.

“PPAsareakeydriverforthedevelopmentofrenewable energy,whileprovidingstabilitytocustomers,”addsSergio Hernández.“I’m fullyconvincedthatrenewabletechnologies areheretostay—thereisnoothersolutionforthe decarbonizationprocessescompaniesarefacing.”

SergioHernándezdeDeza, VPLargeCustomersPPA&DecarbonizationSolutions “PPAsareakeydriverforthe developmentofrenewableenergy, whileprovidingstabilitytocustomers.”

Scannowto watchthefilm andlearnmoreabouthowtonavigate therenewableenergytransition throughinventivesolutionslikePPA.