Tag Archives: SYND

Airbus Revives Order From Qatar Airways Following Paint-Dispute Settlement

LONDON—

Airbus

EADSY 2.36%

SE agreed to revive orders for close to 75 aircraft from Qatar Airways after reaching a settlement with the Middle East airline over a long-running dispute about chipping paint on its A350 wide-body models.

A spokesman for Airbus said it would now go ahead with delivering 50 A321 narrow-bodies and 23 remaining A350 twin-aisles previously ordered by Qatar.

The orders had been scrapped as part of an escalating, multibillion-dollar legal battle over the paint issue, which the airline had claimed could pose a safety concern. Airbus repeatedly denied the claims.

Airbus and Qatar Airways earlier Wednesday said in a joint statement that they had reached an “amicable and mutually agreeable settlement” in relation to the legal dispute. The companies didn’t disclose the details of the settlement other than to say the agreement didn’t amount to an admission of liability from either party. A program to repair the degradation on Qatar’s current fleet is under way, the companies added.

Qatar Airways had previously grounded 29 of its A350 jets and refused new deliveries over the issue, reducing its capacity amid a surge in travel to Doha for the 2022 FIFA World Cup. The airline has said the peeling paint was exposing the meshed copper foil that is designed to protect the aircraft from lightning strikes.

That led Qatar Airways to initiate legal proceedings against Airbus in London, in which the carrier had sought damages partly based on the impact on its operations from not being able to use the aircraft. A possible trial had been scheduled for later this year.

While the paint issue has also affected other A350s in service at other Airbus customers, only Qatar Airways had taken the step to unilaterally ground the aircraft. Airbus and the European Union Aviation Safety Agency, which oversees the Toulouse, France-based plane maker, have insisted that the issue is only cosmetic.

The situation had led to a broad fallout between Airbus and one of its biggest customers. In August, Airbus ended all new business with Qatar Airways, canceling contracts valued at more than $13 billion according to the latest available list prices and before the hefty discounts plane makers typically give to customers.

After Airbus canceled a deal to sell Qatar Airways 50 of its A321 jets, the Gulf carrier ordered up to 50 of rival

Boeing Co.

’s 737 MAX 10 single-aisle jets within two weeks. Qatar Airways had previously canceled most of an existing MAX order in 2020 after receiving five of the planes.

Airbus lawyers alleged that Qatar Airways had exaggerated concerns about the issue in an attempt to claim compensation and refuse delivery of aircraft that it didn’t need as the pandemic hit demand for air travel. The plane maker complained in court that the airline and its regulator, the Qatar Civil Aviation Authority, had failed to provide documentation that showed the technical justifications behind grounding the aircraft.

Qatar Airways has said it provided images of the damage, which it purported showed the scale of the issue and the potential safety risk.

Qatar Airways Chief Executive

Akbar Al Baker

has long had a reputation as a tough customer, publicly lashing out at both Airbus and Boeing when he perceives delivery or quality issues.

Write to Benjamin Katz at ben.katz@wsj.com

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Ukraine Braces for Major Russian Offensive

Russia is preparing to launch a major new offensive against Ukraine in the coming weeks, a top Ukrainian security official said, adding to mounting concerns in Kyiv and the West that the Kremlin is preparing a renewed push to seize large areas of the country.

“Russia is preparing for maximum escalation,” said

Oleksiy Danilov,

the secretary of Ukraine’s National Security and Defence Council, in an interview with Sky News published online early Wednesday local time. “It is gathering everything possible, doing drills and training.”

The warning comes after weeks in which Ukrainian and Western officials have pointed to the risk of a possible new offensive by Russia in the months ahead. Within Russia, the military is under pressure to regain battlefield momentum after it lost broad swaths of territory to a Ukrainian offensive during the second half of last year. Ukraine’s forces recaptured large areas of the country seized by Russia earlier in the year, including Kherson, the only regional capital occupied by the Kremlin’s military.

Since the Ukrainian military’s offensive, the front lines of the conflict have become largely static, with Russia making incremental gains around the small city of Bakhmut. It has become a central battlefield in the war, with Russia sending wave upon wave of newly recruited soldiers to the front line.

Russia mobilized roughly 300,000 additional soldiers starting last September in what the Russian government termed a partial mobilization of reservists. Mr. Danilov said that he expected more than half of those newly mobilized soldiers would be used in any new offensive.

Mr. Danilov also said that a new Russian assault could coincide with the anniversary of Russia’s full-scale invasion of the country on Feb. 24, 2022.

A Ukrainian serviceman entered a shelter near a front-line position in the Donetsk region of eastern Ukraine at the end of January.



Photo:

yasuyoshi chiba/Agence France-Presse/Getty Images

Ukrainian President

Volodymyr Zelensky

said separately on Tuesday evening that he has been discussing with senior officials plans to thwart any new attempt by Russia to reverse its battlefield losses in Ukraine.

“We are studying the situation in detail in all major operational directions and in the long term. What the occupier is preparing for, and how we are already responding to Russia’s preparations for a revanche attempt,” he said in his nightly address to the nation.

In recent weeks Ukrainian officials have coupled warnings of a new Russian offensive with calls for Western countries to supply more weapons that could help counter a renewed attack. Following a decision last week by the U.S., Germany and other countries to provide Ukraine with at least 120 main battle tanks, Ukrainian officials have called for jet fighters. President Biden said on Monday that the U.S. wouldn’t provide F-16 warplanes to Ukraine, although he didn’t put a time frame on the prohibition.

Separately, Ukraine’s top prosecutor announced a slew of corruption cases against former senior Ukrainian officials on Wednesday. In a post on Facebook,

Andriy Kostin

said his office had officially notified six former top officials at the ministry of defense and other institutions of the cases. The accusations against them range from misuse of funds to embezzling and accepting bribes.

The announcement comes less than two weeks after Mr. Zelensky fired nearly a dozen senior officials in an effort to prevent and clamp down on corruption. The crackdown is seen as critical to his efforts to ensure the continued flow of Western military and financial support. Ordinary Ukrainians, who are fighting and dying by the thousands in the war, have also insisted on an end to corruption in the country.

“Corruption in war is looting!” said Mr. Kostin. “My signal to all officials at all levels, wherever they are: there will be no return to the past.”

Fighting raged in Ukraine’s east, the Ukrainian military said on Wednesday morning, with Ukrainian forces repelling Russian attacks in at least eight separate areas in the Donetsk region, including around Bakhmut, where Ukrainian troops have held out against overwhelming Russian firepower for more than six months. Ukraine’s military general staff said in an update on the fighting posted on Facebook that it inflicted heavy losses on Russian forces in the east. 

The Russian Defense Ministry on Wednesday said that Russian forces had eliminated Ukrainian units and fighting vehicles in the Donetsk region.

Outside of Bakhmut, Russian forces last month captured the nearby mining town of Soledar, raising fears that Russia’s mobilization of reservists was beginning to help it reclaim the military initiative in an area that has become highly symbolic and costly for both sides, although with uncertain strategic value on the battlefield. 

Russia also continued lethal shelling of the city of Kherson, which Ukrainian forces recaptured in November, local officials said. The region’s military administration said in a morning update on Wednesday that one person had been killed and another injured as Russian forces launched 42 separate mortar and rocket attacks on the area over the past day.

Russia has made incremental gains around Bakhmut, a Ukrainian city that has become a central battlefield in the war.



Photo:

Emanuele Satolli for The Wall Street Journal

The British Defense Ministry said Wednesday morning that Kherson “remains the most consistently shelled large Ukrainian city outside of the Donbas,” though Russia’s rationale for expending ammunition there remained unclear.

“Commanders are likely partially aiming to degrade civilian morale and to deter any Ukrainian counter-attacks across the Dnipro River,” the ministry said in an intelligence update posted on Twitter.

Ukraine’s recapture of Kherson was one of the most important symbolic defeats for the Kremlin in the entire war, providing a psychological boost for Ukrainian forces and a strategic victory in Ukraine’s push to retake its critical port cities along the Black Sea. Ukrainian officials have also said they have been striking in Russian-occupied territory south of the Dnipro river, which flows past the city of Kherson, since November.

Write to Jared Malsin at jared.malsin@wsj.com

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‘The Last of Us’ Come Alive: Fungi Are Adapting to Warmer Temperatures

Dangerous fungal infections are on the rise, and a growing body of research suggests warmer temperatures might be a culprit.

The human body’s average temperature of 98.6 degrees Fahrenheit has long been too hot for most fungi to thrive, infectious-disease specialists say. But as temperatures have risen globally, some fungi might be adapting to endure more heat stress, including conditions within the human body, research suggests. Climate change might also be creating conditions for some disease-causing fungi to expand their geographical range, research shows. 

“As fungi are exposed to more consistent elevated temperatures, there’s a real possibility that certain fungi that were previously harmless suddenly become potential pathogens,” said

Peter Pappas,

an infectious-disease specialist at the University of Alabama at Birmingham. 

Deaths from fungal infections are increasing, due in part to growing populations of people with weakened immune systems who are more vulnerable to severe fungal disease, public-health experts said. At least 7,000 people died in the U.S. from fungal infections in 2021, the Centers for Disease Control and Prevention said, up from hundreds of people each year around 1970. There are few effective and nontoxic medications to treat such infections, they said. 

Photos: What We Know About Deadly Fungal Infections

In the video game and HBO show “The Last of Us,” a fungus infects people en masse and turns them into monstrous creatures. The fungus is based on a real genus, Ophiocordyceps, that includes species that infect insects, disabling and killing them.

There have been no known Ophiocordyceps infections in people, infectious-disease experts said, but they said the rising temperatures that facilitated the spread of the killer fungi in the show may be pushing other fungi to better adapt to human hosts and expand into new geographical ranges. 

A January study in the journal Proceedings of the National Academy of Sciences showed that higher temperatures may prompt some disease-causing fungi to evolve faster to survive. 

SHARE YOUR THOUGHTS

How should we address the growing threat of fungi? Join the conversation below.

Researchers at Duke University grew 800 generations of a type of Cryptococcus, a group of fungi that can cause severe disease in people, in conditions of either 86 degrees Fahrenheit or 98.6 degrees Fahrenheit. The researchers used DNA sequencing to track changes in the fungi’s genome with a focus on “jumping genes”—DNA sequences that can move from one location on the genome to another.

Asiya Gusa, a study co-author and postdoctoral researcher in Duke’s Molecular Genetics and Microbiology Department, said movement of such genes can result in mutations and alter gene expression. In fungi, Dr. Gusa said, the movement of the genes could play a role in allowing fungi to adapt to stressors including heat. 

Dr. Gusa and her colleagues found that the rate of movement of “jumping genes” was five times higher in the Cryptococcus raised in the warmer temperature. 

Cryptococcus infections can be deadly, particularly in immunocompromised people. At least 110,000 people die globally each year from brain infections caused by Cryptococcus fungi, the Centers for Disease Control and Prevention said. 

Candida auris, a highly deadly fungus that has been reported in about half of U.S. states, also appears to have adapted to warmer temperatures, infectious-disease specialists said. 

“Fungi isn’t transmitted from person to person, but through fungal spores in the air,” Dr. Gusa said. “They’re in our homes, they’re everywhere.”

An analysis published last year in the journal Clinical Infectious Diseases said some potentially deadly fungi found in the soil, including Coccidioides and Histoplasma, have significantly expanded their geographical range in the U.S. since the 1950s. Andrej Spec, a co-author of the analysis and an associate professor of medicine at Washington University School of Medicine in St. Louis, said warming temperatures, as well as other environmental alterations associated with climate change, could have played a role in this spread. 

Cases of Coccidioidomycosis or Valley fever, a disease caused by Coccidioides, were once mostly limited to the Southwest, Dr. Spec said. Now people are being diagnosed in significant numbers in most states. Histoplasma infections, once common only in the Midwest, have been reported in 94% of states, the analysis said. Histoplasma is also spread through bat droppings and climate change has been linked to changing bat migration patterns, Dr. Spec said.

The World Health Organization has identified Cryptococcus, Coccidioides, Histoplasma and Candida auris as being among the fungal pathogens of greatest threat to people. 

“We keep saying these fungi are rare, but this must be the most common rare disease because they’re now everywhere,” Dr. Spec said.

Write to Dominique Mosbergen at dominique.mosbergen@wsj.com

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Telling the Truth About Possible War Over Taiwan

Soldiers rush after alighting from an assault amphibious vehicle during a military drill in Kaohsiung City, Taiwan, Jan. 12.



Photo:

Daniel Ceng/Associated Press

Honesty is not the default policy in Washington these days, so the political and media classes were jolted this weekend by the leak of a private warning by a U.S. general telling his troops to prepare for a possible war with China over Taiwan in two years. Imagine: A warrior telling his troops to be ready for war.

In an internal memo leaked to NBC News, Gen. Michael Minihan told his troops: “I hope I am wrong. My gut tells me we will fight in 2025.” The general runs the Air Mobility Command, the Air Force’s tank-refueling operation, and he says in his memo that he wants his force to be “ready to fight and win in the first island chain” off the eastern coast of continental Asia. He called for taking more calculated risks in training.

The general’s document won’t be remembered for subtlety. One of his suggestions is that airmen with weapons qualifications start doing target practice with “unrepentant lethality.” Another tells airmen to get their affairs in order. This candor seems to have alarmed higher-ups at the Pentagon, and NBC quoted an unidentified Defense official as saying the general’s “comments are not representative of the department’s view on China.”

But while Gen. Minihan’s words may be blunt, his concern is broadly shared, or ought to be. U.S. Navy Adm.

Phil Davidson

told Congress in 2021 that he worried China was “accelerating their ambitions to supplant the United States,” and could strike Taiwan before 2027. Gen. Minihan came to his post after a tour as deputy of Indo-Pacific Command. He like many others suggested that 2025 may be a ripe moment for Chinese President

Xi Jinping

to move. Taiwan and the U.S. both have presidential elections in 2024 that China may see as moments of weakness.

No less than Secretary of State

Antony Blinken

said last year that Beijing was “determined to pursue reunification” with Taiwan “on a much faster timeline” than it had previously contemplated. Are war-fighters supposed to ignore that message as they prepare for their risky missions?

Gen. Minihan is doing his troops a favor by speaking directly about a war they might have to fight. A recent war game conducted by the Center for Strategic and International Studies warned that, in a conflict over Taiwan, “the scale of casualties” would “stagger a U.S. military that has dominated battlefields for a generation.” Gen. Minihan’s boom operators are accustomed to working in skies the U.S. controls. Tankers would be essential in a fight for Taiwan given the vast distance over the Pacific—and would be vulnerable to heavy losses.

Former naval officer

Seth Cropsey

explained on these pages last week that America isn’t investing in the ships and weapons stockpiles that would be required to support a long war in the Western Pacific. Such yawning gaps in U.S. preparedness make a decision by Beijing to invade or blockade the democratic island more likely. Preventing a war for Taiwan requires showing Beijing that the U.S. has the means and the will to fight and repel an invasion.

Whatever his rhetorical flourishes, Gen. Minihan seems to understand this, and what Americans should really worry about is that some of his political and military superiors don’t.

Journal Editorial Report: Paul Gigot interviews General Jack Keane. Images: Zuma Press/Polish Defense Ministry via AP Composite: Mark Kelly

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the January 30, 2023, print edition as ‘Telling the Truth About War Over Taiwan.’

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DOJ Seeks to Ban Sam Bankman-Fried From Contacting FTX Employees

The Justice Department on Friday asked a federal judge to bar FTX founder

Sam Bankman-Fried

from communicating with current and former employees of the collapsed crypto exchange without a lawyer present after prosecutors alleged he recently contacted a potential witness in his criminal case.

Mr. Bankman-Fried, who faces federal charges related to the implosion of FTX, reached out to the general counsel of the company’s U.S. operation through an encrypted messaging application earlier this month, federal prosecutors said in a filing. Prosecutors said Mr. Bankman-Fried has also contacted other current and former FTX employees and are concerned that the communications could lead to witness tampering.

Prosecutors also requested the judge prohibit Mr. Bankman-Fried from communicating through encrypted messaging applications like Slack and Signal, saying that when he headed FTX he directed employees of the company and his crypto-investment firm Alameda Research to set their communications on these platforms to auto-delete after 30 days. That policy has impeded the government’s investigation, prosecutors said.

“Potential witnesses have described relevant and incriminating conversations with the defendant that took place on Slack and Signal that have already been autodeleted because of settings implemented at the defendant’s direction,” prosecutors said in the filing.

Lawyers for Mr. Bankman-Fried in a letter to the judge said the government was mischaracterizing innocuous conduct by their client in “an apparent effort to portray our client in the worst possible light.” They said the government’s request was overbroad and unnecessary, proposing instead that Mr. Bankman-Fried be prohibited from contacting certain limited witnesses, not all of FTX’s current and former employees.

FTX’s U.S. general counsel, Ryne Miller, couldn’t immediately be reached.

The Manhattan U.S. attorney’s office charged Mr. Bankman-Fried last month with stealing billions of dollars from FTX customers while misleading lenders and investors. He pleaded not guilty and is currently under court-ordered confinement in his parents’ Palo Alto, Calif., home while he awaits trial.

Mr. Bankman-Fried sent a Jan. 15 Signal message to the general counsel in which prosecutors allege he said he “would really love to reconnect and see if there’s a way for us to have a constructive relationship, use each other as resources when possible, or at least vet things with each other.”

Prosecutors didn’t identify the other employees that Mr. Bankman-Fried has allegedly tried to contact but called the communications to the general counsel and others troubling.

“Were the defendant to ‘vet’ his version of relevant events with potential witnesses, that might have the effect of discouraging witnesses from testifying in a manner contrary to the defendant’s narrative,” the Justice Department said in the filing.

Mr. Bankman-Fried’s lawyers said the message to Mr. Miller was more reasonably read as an attempt by Mr. Bankman-Fried to offer his assistance to FTX, not a “sinister attempt” to influence testimony at trial.

Write to James Fanelli at james.fanelli@wsj.com

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Six Exercises to Help Avoid Slipping and Falling Down

We typically train to go faster. But mastering how to slow down and stop is just as important.

Training deceleration—a series of movements that help you slow down, change direction, or stop—teaches the body how to control and safely absorb forces. For athletes like rugby players and soccer players who are constantly accelerating from zero to 100 then stopping on a dime, proper deceleration enhances performance and is key to mitigating injury. 

Being able to decelerate with control is just as valuable for nonathletes, says

Sylvia Braaten,

physical performance coach for USA Rugby women’s national team. 

“As we age, there is a tendency to lose our coordination, athleticism and body control,” says Ms. Braaten, who also serves as the assistant coach for Harvard University’s women’s rugby team. “If you can’t slow down with proper body mechanics while chasing your grandchildren in the yard or playing a pickup basketball game, injuries are more likely to occur. But, if we continue to train these qualities, we can remain athletic and that can have a lasting impact on our overall quality of life.” 

Being able to slow down to regain our balance is extremely helpful in the winter, when sidewalks and driveways are icy. “Improving coordination and deceleration mechanics can help us catch ourselves when we start to fall,” she says. And more than one out of four people ages 65 and older falls each year, according to the Centers for Disease Control and Prevention.

The following drills will reinforce deceleration mechanics, such as dropping the hips and shoulders as you slow down and keeping weight predominantly over the planted foot when you change direction. They are also a fun way to mix up your workout with multiplanar movements and balance and agility challenges, she says. 

Start slow and focus on proper technique and landing in a controlled and stable position, she says. “It is better to perform fewer reps and sets with proper form.” 

Reverse Eccentric Lunge

Why: Eccentric strength training, where the lowering phase of an exercise is slowed down to keep the muscles under tension for a longer period of time, is a great way to build strength, says Ms. Braaten. This lunge variation forces us to control the lowering motion while working the glutes and hamstrings.

How: Stand with your feet hip-width apart. Step your left foot backward and slowly lower your body for a count of 3 to 5 seconds, until the right thigh is parallel to the floor, knee over your shoe laces. Your torso and shin of the front leg should be parallel. Pause for 1 second then press into the heel of your front foot to come back up to the starting position for a count of 1 second. Perform 3 sets of 5 reps per leg. Rest 1 to 2 minutes per set.

Option: Hold weights for an added challenge. 

Ms. Braaten performs a reverse eccentric lunge.

Drop Lunge Snap Down

Why: The additional speed component of this exercise increases the intensity of the lunge and more closely mimics the demands of movements in a rugby match and real life, she says.

How: Stand tall on your tiptoes with arms overhead. Rapidly drop into a reverse lunge with your front foot flat and on the ball of the back foot, with your heel raised. Use a quick and sharp arm drive down toward the floor to help increase the speed of the drop. “Think about transitioning from fast to freezing like a statue,” she says. Slowly rise to the starting position. Perform 2 to 3 sets of 3 reps per side. Rest 30 seconds between sets.

Options: If your balance is difficult, start on flat feet and progress to tip toes. Add weights for more difficulty. 

Ms. Braaten does a drop lunge snap down.

Two-Step Falling Deceleration

Why: Being able to safely stop a fall is key to mitigating injury. This drill teaches the body to decelerate while building single-leg strength.

How: Stand tall, with feet hip-width apart. Begin to fall forward with a tall spine. Use two steps to stop. The first step is used to break and the second step is the stick or the leg to decelerate on. Landing on the full foot will help increase balance and allow for a quicker, more efficient deceleration. As you step to break, avoid any inward collapse of the knee. Perform 2 to 3 sets of 3 reps per side. Rest 30 to 45 seconds between sets.

Options: Have a friend stand in front of you as a spot or perform this exercise near a wall.

Ms. Braaten demonstrates how to perform a two-step falling deceleration.

Lateral Rebound Skater Jump

Why: Our body moves in different planes of motion. This drill trains single-leg deceleration in the frontal or side-to-side plane and improves our ability to absorb force.

How: Stand tall, balanced on your left foot. Sink your hips back to load your weight then push and powerfully jump off of that foot to the right. Swing the arms across the body for momentum as you jump. Land balanced on the right foot with a slight bend in the knees and hips.

“The emphasis should initially be on sticking the landing rather than on the distance of the jump,” she says. Reset for the next rep by hopping back to the left leg and repeating the movement. Perform 2 to 3 sets of 4 reps per side. Rest 30 to 45 seconds between sets.

Option: After you are able to consistently stick the landing, you can speed up the tempo to increase the difficulty and intensity for added cardio benefits. 

Ms. Braaten does a lateral rebound skater jump.

Deceleration With a Half Turn

Why: This exercise trains agility, coordination and balance. Great for weekend warriors playing cutting sports like basketball or soccer, the deceleration-with-a-half-turn drill reinforces getting into good deceleration positions from a run, she says.

How: Jog forward and after 10 to 15 feet, decelerate by dropping your shoulders slightly to the right and over the inside of your hips. As your right foot plants, complete a half turn to the right. Stop in an athletic ready stance with soft knees and torso and shins parallel. Stick and hold the position before jogging forward 10 to 15 feet again and decelerate in half-turn position to face the left. Alternate half turns to each direction for a total of 3 half-turn decelerations on each side. Perform 3 to 4 sets. Rest 30 to 60 seconds between sets. Increase the pace of the jog to a run to progress.

Ms. Braaten demonstrates the deceleration-with-a-half-turn drill.

Zigzag Tempos

Why: After the above exercises helped strengthen your deceleration positions, this drill will help improve your ability to get in and out of those positions and make you more agile, she says.

How: Place 6 to 8 cones or markers each about 10 to 15 feet apart in a zigzag pattern to get in 3 to 4 decelerations per side. Start at one cone and run at a controlled pace to the next. Decelerate by bending into the knee and flexing at the hip of the planted foot while maintaining a tall spine. Push down into the planted leg to push away from the cone and run to the next one. Decelerate as you reach each cone. Keep the shoulders facing square up field through the entire drill. Try to become a statue at each cone before running to the next. As you increase speed you will need to absorb more force to decelerate efficiently. Perform 3 to 4 sets resting 30 to 60 seconds in between.

Ms. Braaten performs zigzag tempos.

SHARE YOUR THOUGHTS

How do you implement agility into your exercise routine? Join the conversation below.

Write to Jen Murphy at workout@wsj.com

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Chevron Rides High Oil Prices to Record $35.5 Billion Annual Profit

Chevron Corp.

CVX -4.44%

banked historic profit last year as the pandemic receded and the war in Ukraine pushed oil prices to multiyear highs, with its shares climbing 53% for the year while other sectors tumbled.

The U.S. oil company in its quarterly earnings reported Friday that it collected $35.5 billion in its highest-ever annual profit in 2022, more than double the prior year and about one-third higher than its previous record in 2011. Almost $50 billion in cash streamed in from its oil-leveraged operations, another record that is underpinning plans to pay investors through a new $75 billion share-repurchase program over the next several years.

That payout, announced Wednesday, is roughly equivalent to the stock-market value of companies such as the big-box retailer

Target Corp.

, the pharmaceutical firm

Moderna Inc.

and

Airbnb Inc.

Chevron, the second-largest U.S. oil company after

Exxon Mobil Corp.

, posted revenue of $246.3 billion, up from $162.5 billion the previous year. The San Ramon, Calif., company reported a fourth-quarter profit of $6.4 billion, up from $5.1 billion in the same period the prior year.

The fourth-quarter results came short of analyst expectations, and Chevron shares closed down more than 4% Friday.

For all of its recent winnings, though, Chevron and its rival oil-and-gas producers could face a rockier year in 2023, according to investors and analysts, if an anticipated slowdown in U.S. economic growth dents demand for oil, and if China’s reopening from strict Covid-19 restrictions unfolds slowly.

U.S. oil prices have held steady this year, but are off about 36% from last year’s peak. The industry is proceeding with caution, holding capital expenditures for 2023 below prepandemic levels and saying production will grow only modestly. Chevron has said it plans to spend about $17 billion in capital expenditures this year, up more than 25% from the prior year, but $3 billion less than it planned to spend in 2020 before Covid-19 took root.

Oil companies are still outperforming other sectors such as tech and finance, which have seen widespread job cuts in recent weeks. The energy segment of the S&P 500 index has climbed 43.7% over the past year, compared with a 6.7% drop for the broader index.

Chevron Chief Executive Mike Wirth said the company is unsure of what 2023 will bring after global energy supplies were squeezed because of geopolitical events last year, particularly in Europe following Russia’s invasion of Ukraine. He said markets appeared to be stabilizing.

“We certainly have seen a very unusual and volatile year in 2022,” Mr. Wirth said, noting the European energy crisis has proven less dire than anticipated thanks to milder winter weather, growing natural gas inventories in Europe. “China’s economy has been slow throughout the year, which looks to be turning around. It’s good that markets have calmed.”

Chevron projects its output in the Permian Basin of West Texas and New Mexico to grow at a slower pace this year.



Photo:

David Goldman/Associated Press

Chevron hit a record in U.S. oil-and-gas production in 2022, increasing 4% to about 1.2 million barrels of oil equivalent a day, stemming from its increased focus on capital investments in the Western Hemisphere, particularly in the Permian Basin of West Texas and New Mexico, where it boosted output 16% last year. Worldwide, Chevron’s oil-and-gas production was down 3.2% compared with the prior year, at 2.99 million barrels of oil-equivalent a day.

Its overall return on capital employed came in at 20%, it said.

“There aren’t many sectors generating the type of free cash flow that energy is right now,” said

Jeff Wyll,

an analyst at investment firm Neuberger Berman, which has invested in Chevron. “The sector really can’t be ignored. Given the supply-demand balance, you have to have some things go wrong here to see a pullback in oil prices.”

Even so, institutional investors have shown limited interest so far in returning to the energy sector, after years of poor returns and heightened concerns about their environmental impact prompted large financiers to sell off their stakes in oil-and-gas companies or stop investing in drillers outright.

Pete Bowden,

global head of industrial, energy and infrastructure banking at

Jefferies Financial Group Inc.,

said energy companies in the S&P 500 index are throwing off 12% of the group’s free-cash flow, but only account for about 5% of the index’s weighting—an indication their stock prices are lagging behind.

Investors’ concerns around environmental, social and governance-related issues are a constraint on the share prices of energy companies, “yet the earnings power of these businesses is superior to the earnings power of companies in other sectors,” he said.

Chevron and others have faced criticism from the Biden administration and others that they are giving priority to shareholder returns over pumping oil and gas at a time when global supplies are tight and Americans are feeling pain at the pump. On Thursday, the White House assailed Chevron’s $75 billion buyout program, saying the payout was proof the company could boost production but was choosing to reward investors instead.

Pierre Breber,

Chevron’s finance chief, said the company expects oil prices to be volatile but within a range needed to sustain its dividend and investments. There are some optimistic signs, he added, including that the U.S. economy grew faster than expected in the fourth quarter, at 2.9%.

“Supply is tight. Oil-field services are near capacity, and we continue to have sanctions on Russian production,” Mr. Breber said. “You’re seeing international flights out of China are way up, and low unemployment in the U.S.”

Mr. Breber said Chevron’s output in the Permian this year is expected to grow at a slower pace, around 10%, because it has exhausted much of its inventory of wells that it had drilled but hadn’t brought into production.

Exxon, which has typically posted quarterly earnings on the same day as Chevron, will report Tuesday. Analysts expect it will also post record profit for 2022, according to FactSet.

Both companies expect to slow their output growth this year in the Permian, considered their growth engine. The two U.S. oil majors, which had been growing output faster in the U.S. than most independent shale producers, are beginning to step up their focus on shareholder returns and allow output growth to ease, said Neal Dingmann, an analyst at Truist Securities.

“This has all been driven by investor requirements,” Mr. Dingmann said.

Write to Collin Eaton at collin.eaton@wsj.com

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CVS, Walmart to Cut Pharmacy Hours as Staffing Squeeze Continues

CVS, the largest U.S. drugstore chain by revenue, plans in March to cut or shift hours at about two-thirds of its roughly 9,000 U.S. locations. Walmart plans to reduce pharmacy hours by closing at 7 p.m. instead of 9 p.m. at most of its roughly 4,600 stores by March.

Walgreens Boots Alliance Inc.

previously said it was operating thousands of stores on reduced hours because of staffing shortages. Combined, the three chains operate some 24,000 retail pharmacies across the U.S. 

Walmart last year raised pay for pharmacy technicians.



Photo:

Ryan David Brown for The Wall Street Journal

Earlier in the pandemic, CVS and Walgreens struggled to meet demand for Covid shots and vaccines. The chains cut hours and, in some cases, closed pharmacies for entire weekends. Walmart, which sells a wider variety of goods, cut overall store hours, in part, to cope with Covid-related labor shortages and make time to restock empty shelves as demand for basics such as toilet paper surged.  

CVS, in a recent notice to field leaders, said most of its reduced hours will be during times when there is low patient demand or when a store has only one pharmacist on site, which the company said is a “top pain point,” for its pharmacists. 

CVS said in a statement it periodically reviews pharmacy operating hours as part of the normal course of business to ensure stores are open during high-demand times. “By adjusting hours in select stores this spring, we ensure our pharmacy teams are available to serve patients when they’re most needed,” the company said, adding that customers who encounter a closed pharmacy can seek help at a nearby location. 

At Walmart, the shorter hours offer pharmacy workers a better work-life balance and best serve customers in the hours they are most likely to visit the pharmacy, said a company spokeswoman. “This change is a direct result of feedback from our pharmacy associates and listening to our customers,” she said. Some Walmart pharmacies already close before 9 p.m., which will become standard across the country after the change.

An online community message board for Holliston, Mass., a small town about 30 miles outside Boston, was populated with messages last month from locals venting about the unpredictable hours of the CVS in town, said resident Audra Friend, who does digital communications for a nonprofit. Ms. Friend said she struggled for a week in November to refill a prescription for a rescue inhaler at the store because the pharmacy was sporadically closed.

“I would go in, and there was a note on the door saying, ‘Sorry, pharmacy closed,’” said Ms. Friend, who switched her prescriptions to a 24-hour CVS about 5 miles away. She said it would be better to have consistently shorter hours if that meant fewer unexpected closures. “At least that way we’re not just showing up at CVS to find out the pharmacist isn’t there,” she said.

A CVS spokeswoman said that in recent weeks the Holliston store has had no unexpected closures.

The drugstore chains have been working to stop an exodus of pharmacy staff by offering such perks as bonuses, higher pay and guaranteed lunch breaks. Pharmacists were already in short supply before the pandemic, and consumer demand for Covid-19 shots and tests put additional strains on pharmacy operations. Walgreens recently said staffing problems persist and remain a drag on revenue. 

Retail pharmacies, which benefited from a bump in sales and profits during the pandemic, are now reworking their business models as demand for Covid tests and vaccines decline and generic-drug sales generate smaller profits.

CVS and Walgreens are closing hundreds of U.S. stores and launching new healthcare offerings as they try to transform themselves into providers of a range of medical services, from diagnostic testing to primary care.  

This past summer, Walgreens was offering bonuses up to $75,000 to attract pharmacists, while CVS is working to develop a system in which pharmacists could perform more tasks remotely. The median annual pay for pharmacists was nearly $129,000 in 2021, according to Labor Department data, which also projected slower-than-average employment growth in the profession through 2031. 

In the past year, the chains have poured hundreds of millions of dollars into recruiting more pharmacists and technicians but staffing up has proven difficult. Pharmacists remain overworked, pharmacy-chain executives have acknowledged, and fewer people are attending pharmacy schools. The number of pharmacy-school applicants has dropped by more than one-third from its peak a decade ago, according to the Pharmacy College Application Service, a centralized pharmacy-school application service.

Meanwhile, many pharmacists who aren’t quitting the field are leaving drugstores to work in hospitals or with other employers. 

Walmart raised wages for U.S. pharmacy technicians in the past year, bringing average pay to more than $20 an hour. Walmart said it planned to raise the minimum wage for all U.S. hourly workers in its stores and warehouses to $14 next month, from $12.

CVS and Walgreens last year raised their minimum wages to $15 an hour.

Write to Sharon Terlep at sharon.terlep@wsj.com and Sarah Nassauer at Sarah.Nassauer@wsj.com

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Video of Paul Pelosi Attack Shows Intruder Striking Former House Speaker’s Husband With a Hammer

Video and audio evidence from the attack on Nancy Pelosi’s husband was released Friday, showing for the first time the sequence of events that ended with 82 year-old

Paul Pelosi

being knocked unconscious with a hammer as police officers tackled his assailant.

Some of the evidence was previously shown in court proceedings in the case against David DePape, who is being held without bond on charges of attempted murder, assault with a deadly weapon and elder abuse in the Oct. 28 attack on Mr. Pelosi. Mr. DePape has pleaded not guilty.

The evidence released Friday, which includes police body-camera footage, is the first opportunity for the public to see and hear in detail the events leading up to and including a predawn assault, which focused attention on violence aimed at politicians in the U.S.

Its release came after a coalition of news organizations filed a motion earlier this month requesting to see the evidence, which prosecutors had previously withheld. Judge Stephen Murphy of San Francisco Superior Court granted the motion Wednesday.

Adam Lipson, a San Francisco deputy public defender representing Mr. DePape, said it was, “a terrible mistake to release this evidence, and in particular the video. Releasing this footage is disrespectful to Mr. Pelosi, and serves no purpose except to feed the public desire for spectacle and violence.” 

He also said the release would make it hard for his client to get a fair trial.

Mrs. Pelosi, who was speaker of the House of Representatives until earlier this month, said Friday that she had no intention of watching the newly released evidence and thanked people for their prayers.

The video begins with footage from a Capitol Police camera trained on the Pelosi home in San Francisco’s Pacific Heights neighborhood; it shows Mr. DePape—wearing shorts and a jacket—walking up to a rear entrance at 3:04 a.m., taking out a claw hammer from a bag and putting on gloves.

After looking around several times, he initially pushed the head of the hammer against the glass in a set of french doors. When it wouldn’t open, he swung with full force 16 times until the glass shattered and then pushed his way through, shoulder first.

The next evidence released is audio of Mr. Pelosi’s call to 911 a few minutes later, in which he tried to convey to a dispatcher that he needed help. 

Mr. Pelosi told Mr. DePape he had to use the bathroom and called 911 from a phone charging there, a person with knowledge of the incident previously said.

“I guess I called by mistake,” Mr. Pelosi said at first to the operator. After she asked if he needed help, he told her, “There’s a gentleman here just waiting for my wife to come back,

Nancy Pelosi.

She’s not going to be here for days, so I guess we’ll have to wait.”

When asked by the 911 operator if he knew the man, Mr. Pelosi said he didn’t. Mr. DePape can then be heard saying, “My name is David. I’m a friend of theirs.” 

Mr. Pelosi then hung up after saying, “He wants me to get the hell off the phone.”

Body camera footage of two San Francisco police officers dispatched to the home subsequently show them knocking on the front door. Mr. Pelosi opened the door, looking disheveled and not wearing pants, with his hand on a hammer that Mr. DePape is holding. After an officer asks, “What’s going on, man?”, Mr. DePape answered “Everything’s good.” 

An officer then ordered him to “drop the hammer,” after which the suspect answered “Um, nope” and began struggling with the smaller Mr. Pelosi for control. He quickly pinned the older man’s right arm to free the hammer and then raised it over his head to strike Mr. Pelosi. 

A door obscures Mr. Pelosi at this point, but the footage then shows the officers tackling Mr. DePape and handcuffing him as he lies on the floor, partially atop Mr. Pelosi, who appears to be unconscious.

Mr. Pelosi was treated at a local trauma center and later released home, where his wife said he faced a long recovery. Mrs. Pelosi said Friday that her husband is making progress on his recovery, but it will take more time.

Write to Jim Carlton at Jim.Carlton@wsj.com

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Goldman Sachs Cut CEO David Solomon’s Pay to $25 Million in 2022

Goldman Sachs Group Inc.

GS 0.07%

Chief Executive

David Solomon

took a nearly 30% pay cut in 2022.

Mr. Solomon received $25 million in total compensation last year, down from $35 million in 2021. His 2022 pay package consisted of a $2 million base salary, a cash bonus of $6.9 million and a $16.1 million stock award that is tied to how well the bank performs in the next few years, Goldman said in a regulatory filing.

Mr. Solomon’s 2022 compensation reflects the bank’s performance compared with 2021, Goldman said in the filing. Profit fell 48% last year, and revenue declined 20%, largely due to a slowdown in corporate deal-making that had previously fueled blockbuster earnings. Still, Goldman shares outperformed the KBW Nasdaq Bank Index and the broader S&P 500 last year. 

In 2021, the bank’s shares were soaring and the bank was minting money in a merger boom that kept its high-price bankers busy. 

Goldman doubled Mr. Solomon’s pay that year, an acknowledgment of the bank’s record profits and following a year when he was penalized for the firm’s involvement in the 1MDB corruption scandal. The bank also awarded Mr. Solomon a one-time stock award of about $30 million that year, citing “the rapidly increasing war for talent in the current environment.”

Late last year, Mr. Solomon engineered a restructuring of Goldman’s businesses meant to spotlight steadier businesses like asset and wealth management, taking some of the focus off its more volatile Wall Street operations. 

He’s also paring back the bank’s consumer-facing Marcus operations and has admitted that Goldman’s attempts to do too much there contributed to missteps. The bank’s newly created Platform Solutions division, which houses credit cards and other pieces of the consumer business, lost about $2 billion on a pretax basis in 2022. 

Mr. Solomon has moved to cut costs at Goldman. The bank laid off some 3,000 employees this month and slashed bonuses for many bankers by up to 40%. 

Goldman’s compensation committee also considered the bank’s “continued progress in its strategic evolution as well as Mr. Solomon’s strong individual performance and effective leadership,” according to the filing. 

Mr. Solomon’s pay fell more than his Wall Street counterparts. 

Morgan Stanley

paid Chief Executive James Gorman $31.5 million for his work in 2022, a 10% pay cut from the year before.

 JPMorgan Chase

& Co. awarded CEO Jamie Dimon $34.5 million in 2022 compensation, in line with a year earlier.

Wells Fargo

& Co. CEO Charles Scharf’s 2022 pay also stayed flat at $24.5 million in 2022.

Write to AnnaMaria Andriotis at annamaria.andriotis@wsj.com

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