rife with risks on edge in year · sanders haul senator bernie sanders opened with the largest 2020...

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VOL. CLXVIII . . . No. 58,250 © 2019 The New York Times Company NEW YORK, TUESDAY, FEBRUARY 26, 2019 U(D54G1D)y+z!;!$!#!} Oregon is expected to enact the nation’s first statewide rent control law. Other states are watching closely. PAGE A12 NATIONAL A12-19 Trying to Curb Housing Costs BEIJING — China’s leader, Xi Jinping, abruptly summoned hun- dreds of officials to Beijing re- cently, forcing some to reschedule long-planned local assemblies. The meeting seemed orchestrated to convey anxious urgency. The Communist Party, Mr. Xi told the officials, faces major risks on all fronts and must batten down the hatches. Whether dealing with foreign policy, trade, unemployment, or property prices, he declared, offi- cials would be held responsible if they slipped up and let dangers spiral into real threats. “Globally, sources of turmoil and points of risk are multiply- ing,” he told the gathering in Janu- ary at the Central Party School. At home, he added, “the party is at risk from indolence, incompe- tence and of becoming divorced from the public.” The speech was one of Mr. Xi’s starkest warnings since he came to power in 2012, and has been echoed at hundreds of local party meetings nationwide. It underscores how slowing growth and China’s grinding trade fight with the United States have magnified the party leadership’s chronic fears of social unrest. Trade talks in Washington be- tween American and Chinese offi- cials ended last week without an official agreement, although Pres- ident Trump delayed a deadline to increase tariffs on Chinese goods, saying that negotiators were mak- ing progress. “Beijing is confronting signifi- cant pressure from the interna- tional community over its political and business practices that only adds to its difficulties in dealing with its domestic issues,” said Elizabeth C. Economy, a senior fel- low at the Council on Foreign Re- lations in New York who wrote “The Third Revolution,” a study of Mr. Xi. There are no political challeng- ers on the horizon who could pose an immediate threat to the Com- munist Party or Mr. Xi. But his re- marks made clear that especially in 2019 — a year of politically sen- sitive anniversaries — the party would aggressively extinguish sparks that could ignite protests and turbulence. CHINESE LEADER ON EDGE IN YEAR RIFE WITH RISKS STARK WARNING FROM XI Sensitive Anniversaries and Trade War Could Ignite Turbulence By CHRIS BUCKLEY Continued on Page A9 CHICAGO — The sparkle of downtown, the influx of tech jobs, the tourist dollars pouring into city coffers: None of those things are keeping many in Chicago’s black neighborhoods from loading their belongings into car trunks and moving vans and seeking bet- ter lives someplace else. As Chicagoans go to the polls on Tuesday to choose a new mayor in one of the most wide-open elec- tions the nation’s third-largest city has experienced in generations, many African-Americans have cast their votes another way. They have moved out. Downtown Chicago is booming, its skyline dotted with construc- tion cranes. Yet residents only a few miles to the south and west still wrestle with entrenched gang violence, miserable job prospects and shuttered schools — some of the still-being-identified forces, experts say, that are pushing black Chicagoans to pack up and get out. Of the nation’s largest five cit- ies, only Chicago saw its popula- tion decline in 2017, the third year in a row. Over all, the drops in this city of 2.7 million residents are only slight. But the trend is alarm- ing to city leaders, and demogra- phers say it reveals a larger truth: Black residents are leaving by the thousands each year even as new white residents flow in. The Rev. Ira Acree said mem- bers of his West Side congregation have begun approaching him in growing numbers to say goodbye; Elect Mayor? Many Black Chicagoans Give City Itself a ‘No’ Vote By MONICA DAVEY Continued on Page A19 WASHINGTON — The routine was always the same. President Trump’s lawyers would drive to heavily secured offices near the National Mall, surrender their cellphones, head into a window- less conference room and resume tense negotiations over whether the special counsel, Robert S. Mueller III, would interview Mr. Trump. But Mr. Mueller was not always there. Instead, the lawyers tan- gled with a team of prosecutors, including a little known but formi- dable adversary: Andrew D. Goldstein, 44, a former Time mag- azine reporter who is now a lead prosecutor for Mr. Mueller in the investigation into whether the president obstructed justice. Mr. Mueller is often portrayed as the omnipotent fact-gatherer, but it is Mr. Goldstein who has a much more involved, day-to-day role in one of the central lines of investigation. Mr. Goldstein, the lone prosecu- tor in Mr. Mueller’s office who came directly from a corruption unit at the Justice Department, has conducted every major inter- view of the president’s advisers. He questioned Donald F. McGahn II, Mr. Trump’s former White House counsel, and Michael D. Co- hen, Mr. Trump’s former fixer and lawyer, for dozens of hours. He signed Mr. Cohen’s plea agree- ment. He conducted grand jury questioning of associates of Roger J. Stone Jr., the former adviser to Mr. Trump who was indicted last month. And he was one of two prosecu- tors who relayed to the president’s lawyers dozens of questions about Cautious and Calm Prosecutor Quietly Anchors Mueller Team By NOAH WEILAND and MICHAEL S. SCHMIDT Continued on Page A16 NIPAM H. PATEL Split-sex creatures may help researchers fight diseases. Above, the middle butterfly has male and female characteristics. Page D1. Male, Female, All of the Above DES MOINES — At the very first event of her first full day in Iowa as a presidential candidate, Senator Kamala Harris was greeted by a Democratic voter who delivered a pointed recom- mendation about the best path to the White House. The voter, Rahul Parsa, who teaches at Iowa State University’s business school, said he told Ms. Harris at a gathering of Asian and Latino activists that she needs to think of the Democratic Party in the Midwest like a struggling re- tail business — and that she should seek out not just the regu- lar customers, but those who are not loyal supporters as well. “Kamala needs to find out why the people voted for Trump, what are their issues?” said Mr. Parsa, adding that he had one overarch- ing demand for the burgeoning field of would-be nominees: “You need to bring some states in the Midwest.” As the Democratic race takes flight, with one or more candi- dates entering the race almost ev- ery week, Mr. Parsa’s viewpoint represents one side of a long-sim- mering debate within the party: Should Democrats redouble their efforts to win back the industrial heartland that effectively deliv- ered the presidency to Donald J. Trump? Or should they turn their attention to more demographical- ly promising Sun Belt states like Georgia and Arizona? With polls indicating that elec- toral viability is as important to voters as any policy issue, a hand- ful of the party’s prospects are al- ready holding up their Midwest- ern credentials to make the case that they are the ones who can turn Big Ten country — Pennsyl- vania, Michigan, Wisconsin — blue again. Senator Amy Klobuchar of Min- nesota went immediately to next- door Wisconsin after declaring her candidacy earlier this month, making a hard-to-miss point about her eagerness to compete in a state Hillary Clinton never vis- ited in the 2016 general election. Senator Sherrod Brown of Ohio, who has not officially entered the race, used his first Iowa trip to make a beeline for a county that went for former President Barack Obama by over 20 points in 2012 Different Paths For Democrats To Win in 2020 Rust Belt or Sun Belt? Some Aim for Both By JONATHAN MARTIN and ALEXANDER BURNS Continued on Page A18 Armchair investors have been selling stock. So have pension funds and mu- tual funds, as well as a whole other category of investors — nonprofit groups, endowments, private eq- uity firms and personal trusts. The stock market is off to its best start since 1987, but these in- vestors are expected to dump hundreds of billions of dollars of shares this year. So who is pushing prices higher? In part, the companies themselves. American corporations flush with cash from last year’s tax cuts and a growing economy are buy- ing back their own shares at an ex- traordinary clip. They have good reason: Buybacks allow them to return cash to shareholders, bur- nish key measures of financial performance and goose their share prices. The surge in buybacks reflects a fundamental shift in how the market is operating, cementing the position of corporations as the single largest source of demand for American stocks. The binge has helped sustain a bull market approaching its 10th birthday, even in the face of political, inter- national and economic uncer- tainty. Since the market rally began in March 2009, the S&P 500 has risen more than 300 percent as the United States recovered from the worst financial crisis since the Great Depression. But few expect those kinds of gains over the next As Companies Buy Back Shares, A Sell-Off Wears a Bull’s Horns By MATT PHILLIPS Uncertainty persists, but buy- backs have buoyed the market. BRENDAN McDERMID/REUTERS Continued on Page A15 BRYAN DENTON FOR THE NEW YORK TIMES This year’s Kumbh Mela, the world’s largest religious gathering, is the most expensive ever. But a holy man rated it “a zero.” Page A11. Millions in India Converge to Wash Away Sins LOS ANGELES — Something seismic was happening during the Academy Awards ceremony on Sunday night. The Hollywood es- tablishment, excoriated for its longtime exclusion of women and minorities, recognized African- American production design and costume virtuosos for the first time. Asian-American filmmakers were honored. A movie about a gay rock star collected four tro- phies. “I want to thank the academy for recognizing a film centered around an indigenous woman,” Al- fonso Cuarón said as he accepted the award for best director for “Roma,” about a domestic worker in Mexico City. But then came “Green Book.” In a choice that prompted im- mediate blowback — from, among others, the director Spike Lee, who threw up his hands in frustra- tion and started to walk out of the theater — the Academy of Motion Picture Arts and Sciences gave the best-picture Oscar to a segre- gation-era buddy film. While ad- mired by some as a feel-good de- piction of people uniting against the odds, the movie was criticized by others as a simplistic take on race relations, both woefully ret- rograde and borderline bigoted. It was the ultimate Lucy- pulling-away-the-football mo- ment for those who had hoped the film academy was going to reveal itself as a definitively progressive organization. That the 2017 selec- tion of “Moonlight” as best picture Diversity Ruled at the Oscars. Then Came a Final Plot Twist. By BROOKS BARNES “Green Book” proved to be a divisive best-picture winner. JASON MORGAN Continued on Page A14 SANDERS HAUL Senator Bernie Sanders opened with the largest 2020 donor network. PAGE A18 G.O.P. leaders worked to get the troops in line ahead of a House vote to reject an emergency declaration. PAGE A17 Worries Over Border Action A shift by the Labour leader, Jeremy Corbyn, to back a second referendum is no guarantee that the “people’s vote” will happen. PAGE A8 INTERNATIONAL A4-11 New Support for Brexit Revote Liquid natural gas producers will fuel the country, complicating relations between Russia and the U.S. PAGE B1 BUSINESS B1-5 Keeping Poland’s Lights On Mayor Bill de Blasio is canceling a disappointing school improvement program, $773 million later. PAGE A20 NEW YORK A20-21, 24 End of an Education Initiative The museum’s biennial displays works of 75 artists. Above, Brendan Fernan- des’s “The Master and Form.” PAGE C1 ARTS C1-9 In Shape for the Whitney The Patriots owner Robert K. Kraft now faces two first-degree misdemeanor counts of soliciting prostitution. PAGE B6 SPORTSTUESDAY B6-9 Kraft’s Charges Are Escalated Olivia Moultrie signed with an agent and with Nike, giving up the college schol- arship she had accepted at 11. PAGE B8 She’s a Soccer Pro. She’s 13. Michelle Goldberg PAGE A23 EDITORIAL, OP-ED A22-23 John Mulaney and Seth Meyers poke fun at the composer with a faux documenta- ry that doubles as a tribute. PAGE C1 Satirizing Sondheim In Milan, fashion’s rulers seemed unin- terested in addressing political or social issues, Vanessa Friedman writes. FASHION C10 Stylishly Uncommitted Fueled by dark energy, the universe is growing faster than expected. PAGE D1 SCIENCE TIMES D1-6 Rewriting Cosmic History A judge in Australia unsealed the con- viction of Cardinal George Pell for sexually abusing two children. PAGE A7 Cardinal’s Conviction Revealed Late Edition Today, sunshine and patchy clouds, breezy, cold, high 36. Tonight, partly cloudy, cold, low 21. Tomorrow, clouds and limited sunshine, cold, high 30. Weather map, Page A24. $3.00

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Page 1: RIFE WITH RISKS ON EDGE IN YEAR · SANDERS HAUL Senator Bernie Sanders opened with the largest 2020 donor network. PAGE A18 G.O.P. leaders worked to get the troops in line ahead of

VOL. CLXVIII . . . No. 58,250 © 2019 The New York Times Company NEW YORK, TUESDAY, FEBRUARY 26, 2019

C M Y K Nxxx,2019-02-26,A,001,Bs-4C,E2

U(D54G1D)y+z!;!$!#!}

Oregon is expected to enact the nation’sfirst statewide rent control law. Otherstates are watching closely. PAGE A12

NATIONAL A12-19

Trying to Curb Housing Costs

BEIJING — China’s leader, XiJinping, abruptly summoned hun-dreds of officials to Beijing re-cently, forcing some to reschedulelong-planned local assemblies.The meeting seemed orchestratedto convey anxious urgency. TheCommunist Party, Mr. Xi told theofficials, faces major risks on allfronts and must batten down thehatches.

Whether dealing with foreignpolicy, trade, unemployment, orproperty prices, he declared, offi-cials would be held responsible ifthey slipped up and let dangersspiral into real threats.

“Globally, sources of turmoiland points of risk are multiply-ing,” he told the gathering in Janu-ary at the Central Party School. Athome, he added, “the party is atrisk from indolence, incompe-tence and of becoming divorcedfrom the public.”

The speech was one of Mr. Xi’sstarkest warnings since he cameto power in 2012, and has beenechoed at hundreds of local partymeetings nationwide.

It underscores how slowinggrowth and China’s grinding tradefight with the United States havemagnified the party leadership’schronic fears of social unrest.Trade talks in Washington be-tween American and Chinese offi-cials ended last week without anofficial agreement, although Pres-ident Trump delayed a deadline toincrease tariffs on Chinese goods,saying that negotiators were mak-ing progress.

“Beijing is confronting signifi-cant pressure from the interna-tional community over its politicaland business practices that onlyadds to its difficulties in dealingwith its domestic issues,” saidElizabeth C. Economy, a senior fel-low at the Council on Foreign Re-lations in New York who wrote“The Third Revolution,” a study ofMr. Xi.

There are no political challeng-ers on the horizon who could posean immediate threat to the Com-munist Party or Mr. Xi. But his re-marks made clear that especiallyin 2019 — a year of politically sen-sitive anniversaries — the partywould aggressively extinguishsparks that could ignite protestsand turbulence.

CHINESE LEADERON EDGE IN YEAR

RIFE WITH RISKS

STARK WARNING FROM XI

Sensitive Anniversariesand Trade War Could

Ignite Turbulence

By CHRIS BUCKLEY

Continued on Page A9

CHICAGO — The sparkle ofdowntown, the influx of tech jobs,the tourist dollars pouring intocity coffers: None of those thingsare keeping many in Chicago’sblack neighborhoods from loadingtheir belongings into car trunksand moving vans and seeking bet-ter lives someplace else.

As Chicagoans go to the polls onTuesday to choose a new mayor inone of the most wide-open elec-tions the nation’s third-largest cityhas experienced in generations,many African-Americans havecast their votes another way. Theyhave moved out.

Downtown Chicago is booming,its skyline dotted with construc-tion cranes. Yet residents only afew miles to the south and west

still wrestle with entrenched gangviolence, miserable job prospectsand shuttered schools — some ofthe still-being-identified forces,experts say, that are pushingblack Chicagoans to pack up andget out.

Of the nation’s largest five cit-ies, only Chicago saw its popula-tion decline in 2017, the third yearin a row. Over all, the drops in thiscity of 2.7 million residents are

only slight. But the trend is alarm-ing to city leaders, and demogra-phers say it reveals a larger truth:Black residents are leaving by thethousands each year even as newwhite residents flow in.

The Rev. Ira Acree said mem-bers of his West Side congregationhave begun approaching him ingrowing numbers to say goodbye;

Elect Mayor? Many Black Chicagoans Give City Itself a ‘No’ VoteBy MONICA DAVEY

Continued on Page A19

WASHINGTON — The routinewas always the same. PresidentTrump’s lawyers would drive toheavily secured offices near theNational Mall, surrender theircellphones, head into a window-less conference room and resumetense negotiations over whetherthe special counsel, Robert S.Mueller III, would interview Mr.Trump.

But Mr. Mueller was not alwaysthere. Instead, the lawyers tan-gled with a team of prosecutors,including a little known but formi-dable adversary: Andrew D.Goldstein, 44, a former Time mag-azine reporter who is now a leadprosecutor for Mr. Mueller in theinvestigation into whether thepresident obstructed justice.

Mr. Mueller is often portrayedas the omnipotent fact-gatherer,but it is Mr. Goldstein who has a

much more involved, day-to-dayrole in one of the central lines ofinvestigation.

Mr. Goldstein, the lone prosecu-tor in Mr. Mueller’s office whocame directly from a corruptionunit at the Justice Department,has conducted every major inter-view of the president’s advisers.He questioned Donald F. McGahnII, Mr. Trump’s former WhiteHouse counsel, and Michael D. Co-hen, Mr. Trump’s former fixer andlawyer, for dozens of hours. Hesigned Mr. Cohen’s plea agree-ment. He conducted grand juryquestioning of associates of RogerJ. Stone Jr., the former adviser toMr. Trump who was indicted lastmonth.

And he was one of two prosecu-tors who relayed to the president’slawyers dozens of questions about

Cautious and Calm ProsecutorQuietly Anchors Mueller Team

By NOAH WEILAND and MICHAEL S. SCHMIDT

Continued on Page A16

NIPAM H. PATEL

Split-sex creatures may help researchers fight diseases. Above, the middle butterfly has male and female characteristics. Page D1.Male, Female, All of the Above

DES MOINES — At the veryfirst event of her first full day inIowa as a presidential candidate,Senator Kamala Harris wasgreeted by a Democratic voterwho delivered a pointed recom-mendation about the best path tothe White House.

The voter, Rahul Parsa, whoteaches at Iowa State University’sbusiness school, said he told Ms.Harris at a gathering of Asian andLatino activists that she needs tothink of the Democratic Party inthe Midwest like a struggling re-tail business — and that sheshould seek out not just the regu-lar customers, but those who arenot loyal supporters as well.

“Kamala needs to find out whythe people voted for Trump, whatare their issues?” said Mr. Parsa,adding that he had one overarch-ing demand for the burgeoningfield of would-be nominees: “Youneed to bring some states in theMidwest.”

As the Democratic race takesflight, with one or more candi-dates entering the race almost ev-ery week, Mr. Parsa’s viewpointrepresents one side of a long-sim-mering debate within the party:Should Democrats redouble theirefforts to win back the industrialheartland that effectively deliv-ered the presidency to Donald J.Trump? Or should they turn theirattention to more demographical-ly promising Sun Belt states likeGeorgia and Arizona?

With polls indicating that elec-toral viability is as important tovoters as any policy issue, a hand-ful of the party’s prospects are al-ready holding up their Midwest-ern credentials to make the casethat they are the ones who canturn Big Ten country — Pennsyl-vania, Michigan, Wisconsin —blue again.

Senator Amy Klobuchar of Min-nesota went immediately to next-door Wisconsin after declaringher candidacy earlier this month,making a hard-to-miss pointabout her eagerness to compete ina state Hillary Clinton never vis-ited in the 2016 general election.Senator Sherrod Brown of Ohio,who has not officially entered therace, used his first Iowa trip tomake a beeline for a county thatwent for former President BarackObama by over 20 points in 2012

Different Paths For DemocratsTo Win in 2020

Rust Belt or Sun Belt?Some Aim for Both

By JONATHAN MARTINand ALEXANDER BURNS

Continued on Page A18

Armchair investors have beenselling stock.

So have pension funds and mu-tual funds, as well as a whole othercategory of investors — nonprofitgroups, endowments, private eq-uity firms and personal trusts.

The stock market is off to itsbest start since 1987, but these in-vestors are expected to dumphundreds of billions of dollars ofshares this year.

So who is pushing priceshigher? In part, the companiesthemselves.

American corporations flushwith cash from last year’s tax cutsand a growing economy are buy-ing back their own shares at an ex-traordinary clip. They have goodreason: Buybacks allow them toreturn cash to shareholders, bur-nish key measures of financialperformance and goose theirshare prices.

The surge in buybacks reflectsa fundamental shift in how themarket is operating, cementingthe position of corporations as thesingle largest source of demandfor American stocks. The bingehas helped sustain a bull marketapproaching its 10th birthday,

even in the face of political, inter-national and economic uncer-tainty.

Since the market rally began inMarch 2009, the S&P 500 has risenmore than 300 percent as theUnited States recovered from theworst financial crisis since theGreat Depression. But few expectthose kinds of gains over the next

As Companies Buy Back Shares,A Sell-Off Wears a Bull’s Horns

By MATT PHILLIPS

Uncertainty persists, but buy-backs have buoyed the market.

BRENDAN McDERMID/REUTERS

Continued on Page A15

BRYAN DENTON FOR THE NEW YORK TIMES

This year’s Kumbh Mela, the world’s largest religious gathering, is the most expensive ever. But a holy man rated it “a zero.” Page A11.Millions in India Converge to Wash Away Sins

LOS ANGELES — Somethingseismic was happening during theAcademy Awards ceremony onSunday night. The Hollywood es-tablishment, excoriated for itslongtime exclusion of women andminorities, recognized African-American production design andcostume virtuosos for the firsttime. Asian-American filmmakerswere honored. A movie about agay rock star collected four tro-phies.

“I want to thank the academyfor recognizing a film centeredaround an indigenous woman,” Al-fonso Cuarón said as he acceptedthe award for best director for“Roma,” about a domestic workerin Mexico City.

But then came “Green Book.”In a choice that prompted im-

mediate blowback — from, amongothers, the director Spike Lee,who threw up his hands in frustra-tion and started to walk out of thetheater — the Academy of MotionPicture Arts and Sciences gavethe best-picture Oscar to a segre-gation-era buddy film. While ad-mired by some as a feel-good de-piction of people uniting againstthe odds, the movie was criticized

by others as a simplistic take onrace relations, both woefully ret-rograde and borderline bigoted.

It was the ultimate Lucy-pulling-away-the-football mo-ment for those who had hoped thefilm academy was going to revealitself as a definitively progressiveorganization. That the 2017 selec-tion of “Moonlight” as best picture

Diversity Ruled at the Oscars. Then Came a Final Plot Twist.

By BROOKS BARNES

“Green Book” proved to be adivisive best-picture winner.

JASON MORGAN

Continued on Page A14

SANDERS HAUL Senator BernieSanders opened with the largest2020 donor network. PAGE A18

G.O.P. leaders worked to get the troopsin line ahead of a House vote to rejectan emergency declaration. PAGE A17

Worries Over Border Action

A shift by the Labour leader, JeremyCorbyn, to back a second referendum isno guarantee that the “people’s vote”will happen. PAGE A8

INTERNATIONAL A4-11

New Support for Brexit Revote

Liquid natural gas producers will fuelthe country, complicating relationsbetween Russia and the U.S. PAGE B1

BUSINESS B1-5

Keeping Poland’s Lights On

Mayor Bill de Blasio is canceling adisappointing school improvementprogram, $773 million later. PAGE A20

NEW YORK A20-21, 24

End of an Education Initiative

The museum’s biennial displays worksof 75 artists. Above, Brendan Fernan-des’s “The Master and Form.” PAGE C1

ARTS C1-9

In Shape for the Whitney

The Patriots owner Robert K. Kraft nowfaces two first-degree misdemeanorcounts of soliciting prostitution. PAGE B6

SPORTSTUESDAY B6-9

Kraft’s Charges Are Escalated

Olivia Moultrie signed with an agent andwith Nike, giving up the college schol-arship she had accepted at 11. PAGE B8

She’s a Soccer Pro. She’s 13.

Michelle Goldberg PAGE A23

EDITORIAL, OP-ED A22-23

John Mulaney and Seth Meyers poke funat the composer with a faux documenta-ry that doubles as a tribute. PAGE C1

Satirizing Sondheim

In Milan, fashion’s rulers seemed unin-terested in addressing political or socialissues, Vanessa Friedman writes.

FASHION C10

Stylishly Uncommitted

Fueled by dark energy, the universe isgrowing faster than expected. PAGE D1

SCIENCE TIMES D1-6

Rewriting Cosmic History

A judge in Australia unsealed the con-viction of Cardinal George Pell forsexually abusing two children. PAGE A7

Cardinal’s Conviction Revealed

Late EditionToday, sunshine and patchy clouds,breezy, cold, high 36. Tonight, partlycloudy, cold, low 21. Tomorrow,clouds and limited sunshine, cold,high 30. Weather map, Page A24.

$3.00