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MANAGEMENT | B1
OPINION | A10
Whats
News
WSJ.com
GOLD 1364.40 0.96%
BY THEO FRANCIS
AND KATE LINEBAUGH
World-Wide
Ticket sales for the Olympics are lagging as Rio grapples with recession, a Zika
epidemic and security concerns ahead of the Games. A1
U.S. planes again struck
an Islamic State stronghold
in Libya, but the battle to uproot the extremists is likely
to be long and difficult. A3
Obama blasted Trump for
his attack on the parents of a
Muslim U.S. soldier killed in
Iraq and said the candidate
is unfit to be president. A7
Britain should do more to
resettle Syrian refugees and
strengthen border controls, a
panel of lawmakers said. A3
Japan criticized Chinas
maritime ambitions and expressed alarm over North
Korean progress in miniaturizing nuclear weapons. A5
Obama met with Singapores Lee and said the two
leaders are still committed
to the TPP trade deal. A5
Malaysias premier, facing
a global probe into alleged
domestic corruption, urged
other countries not to meddle in his nations affairs. A5
Thousands of people attended the funeral in
France of the Roman Catholic priest who was slain by
Islamic State followers. A3
Venezuelan authorities
approved the first of two petitions needed for a referendum to depose Maduro. A5
CONTENTS
Arts & Ent............... A9
Business & Fin.. B1-5
Crossword.............. A12
Finance & Mkts..... B6-10
Heard on Street. B10
Management.......... B5
Markets Digest..... B8
Opinion.............. A10-11
Personal Journal.. A8
Property Report... B9
U.S. News.................. A7
Weather................... A12
World News........ A2-5
TRIBUTE: Thousands attended the funeral of the Rev. Jacques Hamel, the Roman Catholic priest killed by Islamic State followers in France. A3
BY MITSURU OBE
TOKYOJapans cabinet
approved a government stimulus package that includes 7.5
trillion ($73 billion) in new
spending, in the latest effort
by Prime Minister Shinzo Abe
4
2
0
South Africa
2
2000
Soweto high school, once a symbol of hope, is falling short, and so are its students
8%
1991
10
than in class.
Orlando West High School used to be
a symbol of hope in the township that
epitomized South Africas struggle
against apartheid. Nelson Mandela, an
evangelist for the power of education,
lived down the street, and in his will he
left money to fund college scholarships
for Orlando West students.
Yet, 22 years after Mr. Mandela was
elected president on a promise to lead
all South Africans to prosperity, Orlando West is failing and so are its students: Roughly half drop out before
graduation. Classes are routinely canceled because teachers stay homeso
often some students say they have finished a semester without completing a
page of their workbooks.
The troubles at Orlando West, at
one time an exemplar of educational
reform, reflect how far South Africa
has fallen short of Mr. Mandelas
dream of equality and opportunity.
Despite the many gains since the
end of white-minority rule in 1994,
the education system in South Africa
has changed from bad to worse, said
Benjamin Chiloane, an Orlando West
English teacher, whose two-decade
teaching career spans South Africas
Please see SCHOOL page A6
A White
House
Welcome
Riverstone executives
ceded over $300 million of
profits they made from investments before the oil
bust erased those gains. B1
Anxiety
Weighs
On U.S.
Earnings
EUROPE EDITION
HONORED GUEST:
Singapore Prime
Minister Lee Hsien
Loong, center, visited
U.S. President Barack
Obama, marking the
nations 50th
anniversary of
diplomatic relations.
Mr. Obama also
called on Republican
leaders to revoke
their endorsements
of Donald Trump
instead of merely
criticizing him. A5, A7
About 79% of the 6.1 million tickets for the Rio Games
had been sold as of Aug. 1, according to local organizers.
That is well behind the final
figures for the last two Games
in London and Beijing, both of
which sold more than 95% of
their seats.
Still, Rios percentage sales
already have beaten those of a
number of past summer Olym-
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WORLD NEWS
RESULTS
Continued from Page One
firms. The company has moderated capital spending as reduced demand from the oil industry left a glut of equipment
available in the market.
With just over two-thirds of
S&P 500 companies reporting
results, adjusted earnings
which exclude various items
deemed unusualare expected
to fall for the fourth straight
quarter, down 2.6% from the
same period last year, according to Thomson Reuters. Revenues are also forecast to slip
0.4%, the sixth straight quarterly decline.
Excluding the hard-hit energy sector, second-quarter
earnings are expected to rise
by a still-slow 1.8%, while revenues are likely to increase
about 2.6%, Thomson Reuters
said. The forecast combines
available results for companies
in the index with analyst estimates for those that have yet
to report.
The pain is broad-based:
Only the consumer discretionary, health care and utili-
JAPAN
Continued from Page One
outs of 15,000, or about $147,
each to 22 million low-income
people, bring more workers
into a public-pension system
by easing admission criteria,
and offer more college scholarships.
In addition, the stimulus
plan promises more child-care
facilities for working parents,
and money to help employers
provide longer maternity
leaveboth aimed at addressing a labor shortage.
Mr. Abe had vowed to help
BY JOSH CHIN
Hong Zhenkuai, left, with a guide on Langya Mountain, from where five soldiers are said to have leapt to avoid being captured.
clined to accept the lawsuit.
Meanwhile, censors have
shut dozens of historythemed social-media accounts, many of them hosted
on the popular WeChat messaging app, for spreading
unhealthy information.
Two other writers in addition to Mr. Hong face lawsuits: one for making a joke
online involving a Chinese
soldier who died in the Korean War, the other for questioning the story of how one
1930s military commander
and 700 Manchurian farmers
wiped out a force of 3,500
Japanese soldiers.
In a commentary last
month, Seeking Truth, an
authoritative journal on
party theory, described efforts to question official histies sectors are expected to
see profits grow by more
than 5%. Quarterly earnings
are expected to decline by
87% for energy companies,
3.6% for financial firms and
1.4% for telecommunications
companies, according to
Thomson Reuters.
Analysts now forecast that
the third quarter will barely
show profit growth, predicting
an average increase of 0.3% for
companies in the S&P 500
compared with expectations of
2% growth a month ago. Earnings forecasts often become
less optimistic as a quarter
progresses.
The U.S. stock market has
remained largely resilient as
investors have favored equities in face of low yields
from other investments.
However, in the wake of
seven record closing highs
posted in July by the S&P
500 and the Dow Jones Industrial Average, the market
is showing some signs of jitters. The Dow fell for a seventh straight day on Tuesday,
as oil prices continued to
weaken.
The muted manufacturing
and industrial picture was
more people play productive
roles in Japanese society following criticism that his early
policies benefited mostly big
corporations. Corporate-tax
cuts and a weaker yenthe
latter a key policy goal of his
governmenthelped send corporate profits to record highs,
but most consumers struggled, particularly the 38% of
the workforce in temporary,
lower-paying jobs.
By total size, the stimulus
package ranks among Japans
biggest since the global financial crisis, but actual new, direct spending will total only
about 7.5 trillion, most of it
over the next two years.
Overall package
40
30
20
10
0
2008
09
10
11
12
13
14
15
16
Prot Squeeze
Large companies in
most sectors are
expected to record
stagnant or declining
prots in the second
quarter.
Consumer Discretionary
Health Care
7.1%
Utilities
5.5%
Industrials
Technology
0.1%
1.4%
2.8%
0.2%
Consumer Staples
Telecom
2.6%
S&P 500
3.6%
Financials
6.4%
86.6%
11.7%
Materials
Energy
*Reects actual results for 71% of S&P 500 companies and analyst estimates for the remainder.
THE WALL STREET JOURNAL.
Source: Thomson Reuters
countered by some encouraging results from consumer-oriented companies and highprofile tech firms like
Facebook Inc. and Google parent Alphabet Inc. that have
seized on mobile advertising.
Online retailing giant Amazon.com Inc. clocked its third
straight profit record, helped
by stronger product and
cloud-computing revenue.
Outdoor-equipment retailer
Cabelas Inc. reported its first
increase in same-store sales
Mr. Abe didnt speak publicly about the stimulus package Tuesday. His top aide,
Chief Cabinet Secretary Yoshihide Suga, said the prime minister had told his cabinet that
the plans were about investment in the future.
The yen strengthened further Tuesday after details of
the stimulus package were released. The currency had been
advancing since last week,
when broad outlines of the
stimulus program began to be
revealed before a Bank of
Japan policy announcement on
Friday that left investors underwhelmed. The U.S. dollar
was down 1.6% in New York
afternoon trade, at 100.79.
Trading on the Tokyo Stock
Exchange on Tuesday had
ended before the stimulus
package was approved.
Mr. Abes spending plans
are intended to bolster Japans
economy amid concerns about
global growth, particularly a
slowdown in China and emerging markets and the effects of
the U.K.s decision to exit the
European Union.
Japans economy has swung
between expansions and contractions in recent quarters. In
the April-June period, annualized growth is believed to have
slowed to 0.1% from the previous quarters 1.9%, according
to a survey of 43 economists
Notice to Readers
Andrew Browne is on
vacation. His Chinas World
column will resume Aug. 17.
CORRECTIONS
AMPLIFICATIONS
Polands parliament recently passed a new law on retail sales. A Business & Finance article Tuesday about
corporate investors starting to
cool on Poland incorrectly said
the law is moving through
parliament.
Designer Billy Cotton
bought a block print made in
Ahmedabad, India, from New
York Citys Xenomania. An Off
Duty article in the Friday-Sunday edition about handmade
textiles from abroad incorrectly said it was from Osmanabad, India.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com.
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WORLD NEWS
GORAN TOMASEVIC/REUTERS
By Hassan Morajea
in Tunis, Tunisia,
Maria Abi-Habib
in Beirut
and Paul Sonne
in Washington
Forces allied with the U.N.-backed government in Libya battling Islamic State fighters in Sirte, a militant stronghold, on Tuesday.
in the east. The competing
governments so far have refused to work together to defeat Islamic State or toward
national unity, despite international efforts.
President Barack Obama
said on Tuesday that he hopes
combating Islamic State will
help move Libya toward a
functioning
government,
something he said would be a
long process.
Pentagon spokesman Capt.
Jeff Davis said that Mr.
Obamas authorization is limited to using U.S. air power to
help Libyan forces allied with
the Tripoli government retake
Sirte.
In the quest to defeat Is-
BY ALEXIS FLYNN
Graffiti adorns the site of a camp near Calais, France, from which migrants hope to cross to the U.K.
ferent government departments, providing oversight
and advice.
The reports publication
comes in the wake of the U.K.s
vote to leave the EU in June.
Unease about the rise of immigration in Britain has fueled
anti-EU sentiment in recent
BY LAURENCE NORMAN
AND VALENTINA POP
tually agreed on measures including the registry of passenger name records and tighter
controls on the sale and registration of firearms.
The EUs foreign-policy
chief Federica Mogherini has
also set out ambitious plans
for tighter cooperation among
European governments in responding to terror threats and
sharing resources to combat
the problem.
Mr. Kings appointment still
has to pass through a hearing
in the European Parliament
and be formally endorsed by
the other 27 EU governments
before coming into effect. The
Parliament, which cant veto
the choice but can recommend
against it, is expected to hold
the hearing in the early autumn, according to officials.
Until he is confirmed, Mr.
King wont attend the regular
meetings of the European
Commission executive. Each
member state holds one of the
posts in the commission.
One of the key questions
facing Ms. May is when to
trigger the start of formal negotiations with the EU on the
terms of Britains exit from the
bloc. She has indicated that
won't happen until early next
year. That will open a twoyear window for negotiations.
Jenny Gross in London
contributed to this article.
Thousands
Attend
Funeral for
Slain Priest
BY NICK KOSTOV
Thousands of people attended the funeral of the Rev.
Jacques Hamel, the Roman
Catholic priest slain by Islamic
State followers in an attack
that has cast a dark shadow
over France and heightened
tensions with its Muslim minority.
The crowd squeezed into
the 12th-century Gothic cathedral in the northeastern city of
Rouen an hour before the ceremony began. Hundreds more
watched on a big screen outside despite rainy weather.
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HK JP
KO ML
SI
IN UK
FR
MN PR
WORLD NEWS
LONDONSome investors
expect the Bank of England to
dust off its long-dormant
bond-buying program as soon
as Thursday to support the
U.K. economy after the Brexit
vote, but others have doubts
about how effective it would
be.
At issue is whether quantitative easing, which became a
critical part of central bank
tool kits during the chaos of
the financial crisis, works as
well when financial markets
are functioning smoothly and
interest rates for households
and businesses are already
very low. The U.K.s vote to
exit the European Union hasnt
triggered the kind of chronic
market volatility that characterized the financial crisis, and
hasnt noticeably pushed up
the cost of finance.
A broader question is
whether monetary medicine is
the right response when the
prime challenge facing the
British economy is uncertainty
over the U.K.s relationship
with its biggest trading partner.
Since the referendum on
June 23, the BOE has trimmed
bank capital requirements to
encourage lending, lined up
billions of pounds in cheap
loans for lenders to draw on if
needed, and telegraphed that
an interest-rate cut is among
measures being considered.
Firm data on the economys
performance wont be available for months, but surveys
have pointed to a postreferendum slowdown in July.
Economists and investors
widely believe that the central
bank is, at the very least, preparing to reduce its benchmark interest rate on Thursday to 0.25%, which would
BY PAUL HANNON
PAUL HACKETT/REUTERS
BY JASON DOUGLAS
AND CHRISTOPHER WHITTALL
Factory Prices
In Eurozone
Pick Up Pace
The Bank of England may restart its bond-buying program as early as this week.
bring it to a new low in the
banks 322-year history.
A rate cut by the Bank of
England is nailed on; the question is what else they do, said
Mike Riddell, a portfolio manager at Allianz Global Investors. He has been buying U.K.
government bonds, known as
gilts, partly in the expectation
that the BOE soon revives QE,
which involves printing money
to buy assets.
During the financial crisis,
the U.K. central bank bought
375 billion ($500 billion) of
assets, mostly gilts, over three
years ended in 2012, before
most of the banks current
nine-member Monetary Policy
Committee was in place. The
Federal Reserve also engaged
in several rounds of purchases
after the financial crisis hit.
And currently, central banks in
Europe and Japan are buying
bonds to fuel inflation.
The effectiveness of QE is
disputed. Its aims include lowering long-term interest rates
and encouraging investors to
pile into riskier assets, both of
which are supposed to support
spending in the economy and
generate inflation.
But the policy has been
criticized for driving up asset
the coming months, and believes easier central-bank policy will aid the economy in
other ways.
A lot of this is messaging.
Part of the job of the authorities is to reassure consumers
and the general public that the
economy is still on a sound
footing, Mr. Amey said.
Yet such assurances go only
so far. BOE Gov. Mark Carney
has been stressing since the
Brexit vote that the U.K. is entering a period of economic
adjustment that the central
bank cant fully offset, despite
the many tools at its disposal.
For many economists, the
onus is squarely on the government to dispel some of the
uncertainty that is clouding
the economic outlook and
keeping a lid on spending.
Government ministers may
also need to revisit their tax
and spending plans to give the
U.K. economy more room to
grow, perhaps by investing in
infrastructure.
The Brexit vote puts more
pressure on the government
itself to improve the structural
workings of the economy,
said David Owen, chief European economist at Jefferies
Group LLC.
RIO
BY ROGERIO JELMAYER
Customers snap up Olympic merchandise in Rio; tourists from California, below, pose in front of the citys Christ the Redeemer statue.
undecided, Mr. Dezem said.
The Brazilian Hotel Industry Association of Rio de Janeiro last week reported that
close to 93% of the citys hotel
rooms were booked. Properties in Rio de Janeiros popular South Zone, home to
famed beaches such as Copacabana, are reporting few vacancies. Demand is also strong
at luxury hotels in the western
neighborhood of Barra da Tijuca, where the Olympic Village and several athletic facilities are located.
But properties in less
sought-after neighborhoods
arent reaping the Olympic bonanza many had hope for.
Hospitality executive Thais
Perfeito said the International
Olympic Committee, or IOC,
recently canceled every room
it had reserved at a brand-new
Rio hotel that her company
works with, citing lack of demand. The IOC had booked the
more than 200-room hotel almost solid for the entire
Games for its members and
their guests, said Ms. Perfeito,
who declined to name the hotel or the neighborhood. The
IOC declined to comment.
Ms. Perfeito said a hotelbuilding binge in Rio has put
the heat on operators.
Room supply has doubled
to 56,000 since 2009 when Rio
won the bid to host the
Games, according to the hotel
association. Most of the new
New Arrests
In Brazils
Car Wash
Probe
SO PAULOFederal police
rearrested two former top executives of construction company Queiroz Galvao as part of
the investigation into alleged
corruption at state-run oil
company Petrleo Brasileiro
SA, or Petrobras.
Police detained the builders
former president, Ildefonso
Colares Filho, and the ex-director of its oil and gas division,
Othon Zanoide Moraes Filho,
on allegations they tried to impede investigations, a police
spokesman said Tuesday.
It was the second time they
had been arrested as part of
the so-called Operation Car
Wash probe at Petrobras.
Neither the company nor
lawyers for men returned calls
asking for comment or clarification.
Judge Sergio Moro, who is
overseeing the investigation,
said that the two had denied
the charges.
The men were arrested in
November 2014 on allegations
of corruption, fraud and
money laundering. Both were
released five days later after
Judge Moro decided more investigation was needed to justify their detention.
Both men had left their positions at Queiroz Galvao in
2012, Judge Moro said in legal
documents released Tuesday.
But he added that there is evidence the two continue to
have ties to the company.
Federal police on Tuesday
also raided the offices of
Queiroz Galvao in So Paulo,
Rio de Janeiro and other Brazilian cities. A company
spokesman confirmed the police operation earlier Tuesday
and said the company is cooperating with authorities.
Queiroz Galvao is Petrobrass third-most important
building contractor, with the
value of its outstanding contracts with the oil company
rising to 20 billion reais ($6.2
billion) in recent months, according to prosecutors.
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
WORLD NEWS
BY CHIEKO TSUNEOKA
Crew members on the deck of a Japanese destroyer at the Subic port in the Philippines during a routine visit in April.
its neighbors, and deceives the
international community, he
said, adding that the military
had made its concerns known
to Japan.
Xinhua also slammed a security law passed last year
that permits Japanese troops
to work more closely with al-
SingaporeLeaderProdsU.S.onTPP
BY BYRON TAU
AND CAROL E. LEE
INDONESIA
empowered to serve as a
check on presidential power
was a challenge in getting the
agreement passed.
It is not so easy to do
things, he said, but added it
also made it harder for things
to get completely messed up.
We are near the finish line
and we hope the countries,
particularly the U.S., will be
able to ratify the TPP as soon
as possible, he added.
Mr. Lee said that not only
was the economic impact of
the trade agreement at stake,
but also Americas leadership
status in the world.
In terms of economic benefits, the TPP is a big deal. I
think in terms of Americas
faces several more hurdles before a recall vote can be approved. It must request permission from the electoral council to
hold the referendum. If that request is approved, opposition
leaders would then have to collect nearly four million signa-
Mr. Lee, waving, with Mr. Obama at the White House on Tuesday.
MalaysiasEmbattled
NajibDemandsRespect
Malaysian Prime Minister
Najib Razak, facing a loss of
international standing as he
wrestles with global investigations into alleged domestic
corruption, on Tuesday urged
countries not to meddle in his
nations affairs.
By Sara Schonhardt
in Jakarta
and Yantoultra Ngui
in Kuala Lumpur
I have always been a proponent of openness to the
world and collaboration, but
we must insist on respect for
our own sovereignty, our own
laws, and our own democratically elected governments,
Mr. Najib said at the opening
of a summit on Islamic finance
in Indonesia.
Mr. Najib has struggled for
more than a year in a scandal
centered on state investment
fund 1Malaysia Development
Bhd. He used a keynote address to the World Islamic
Economic Forum to restate
his countrys importance in
Asian trade and security arrangements and as a counterbalance to Islamic extremism.
The remarks amounted to a
pointed statement of Malaysias traditional role as an investment-friendly, moderate
Muslim mainstay. That role
has been overshadowed in the
past year by a steady stream
of bad news around 1MDB,
CHINA
VENEZUELA
XINHUA/ZUMA PRESS
World
Watch
WASHINGTONPresident
Barack Obama, after meeting
Tuesday with Singapore Prime
Minister Lee Hsien Loong, said
the two leaders were still
committed to the Trans-Pacific
Partnership trade deal, despite
increasingly long odds of U.S.
approval this year.
Speaking at a joint news
conference, Mr. Obama said
the 12-nation trade pact levels the playing field for our
workers and helps to ensure
countries abide by strong labor and environmental rules.
The president acknowledged the challenges of a U.S.
political environment in which
many voters have turned
sharply against globalization
and international trade, as
well as the fact that previous
trade agreements have cost
jobs. But he said that he had a
better argument on the
trade deal than its detractors,
which include both Democratic
presidential candidate Hillary
Clinton and Republican candidate Donald Trump.
Theres a real problem but
the answer is not cutting off
globalization. The answer is
how do we make sure that
globalization, technology, automationthose things work
for us, not against us. TPP is
designed to do precisely that,
said Mr. Obama.
The TPP has emerged as an
unexpected area of bipartisan
HIGH RIDER: China is road-testing a giant elevated bus. The 72-foot-long, 25-foot-wide vehicle can
accommodate up to 300 passengers in a raised compartment that allows cars to pass underneath.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
Long history
Orlando West High School
is in decline, but the surrounding neighborhood has made
strides. Streets are smoothly
paved around blocks of brick
homes, including many built
by the government and given
away to residents.
The ANC-led government
has built 3 million houses nationwide and created a welfare
net that keeps more than 17
million people from extreme
poverty. Black urban elites have
climbed to wealth and power;
many have chosen to stay in
Soweto, building upscale homes
and filling the new malls, gyms
and restaurants.
Tourists seek out the nearby
house where Mr. Mandela lived
before his imprisonment in
1962. Placards mark turning
points in the protests that galvanized the antiapartheid
movement in 1976.
A museum memorializes a
Sibonelo Hadebe, left, and Mandava Thato take a break from a tutoring session. Below, a class at Orlando West High School.
12-year-old boy, Hector Pieterson, who was fatally shot by
police outside the iron gates of
Orlando West during protests
and became a symbol of apartheid brutality.
Eunice Modiboa, who began
teaching at Orlando West a
few years later, said students
of that generation saw education as a powerful weapon
against oppression. Many became leaders in business, athletics and politics.
In 1994, finally freed from
the apartheid state, Orlando
West received a wave of funding, and school officials anticipated a new age of freedom and
rising student performance. Mr.
Mandelas ANC government
made education its priority in
plans to reduce South Africas
gaping inequality.
Ms. Modiboa, now in her
36th year teaching at the
school, said the new investment and enthusiasm never
yielded a successful strategy
for students.
Orlando West was supposed to be a model, she said.
Now, some students tell her
they aspire to be bank robbers
or gangsters. Students dont
know why they should study,
she said, because after they
graduate theres nothing to do.
The roughly 100 Orlando
West seniors seeking to graduate need to score just 30% in
some subjects, an easing of
standards by the government in
recent years to ensure a majority of students complete high
school.
Even with looser requirements, Orlando Wests graduation rate last year dipped to
79% from 94% in 2014. That
was better than national graduation rates of 71% among enrolled seniors last year.
Orlando West High School
principal Joseph Malindi said
many parents of his students
are unemployed and despondent, too overwhelmed to keep
their children on track.
My biggest challenge I
dont know how to overcome is
the issue of drugs, he said,
shouting over the din of students outside who had skipped
class.
Mr. Malindi echoed the
warnings of law enforcement
and health officials here who
said growing numbers of jobless youths find escape through
alcohol and home-cooked opioids. Its huge, he said.
In one of Sowetos rougher
neighborhoods, students at
Lavela Secondary School said
teachers were absent for days
at a time, sometimes for training. Without substitute teachers, they said, they spent their
40%
28%
30
26
20
24
10
22
SCHOOL
Education spending as a
percentage of GDP
6.5%
25%
6.0
Tenth
20
Eleventh
15
Ninth
10
Grades
1-12
5.5
Twelfth
5.0
4.5
2005
0
07
09
11
13
2009
0
11
13
2008
cially with his two young children who are always stuffing
his cargo shorts pockets. The
pockets function for men like
purses do for women, he said.
Travis Haglin, who has
worked in the retail industry for
more than 15 years, including at
Ralph Lauren and J. Crew, said
he has never felt comfortable
wearing cargo shorts because
they dont look cool enough.
Men want to be like James
20
10
12
14
*As of March 31 Sources: World Bank (spending); South African Institute of Race Relations (students repeating, failing); Statistics South Africa
SHORTS
Continued from Page One
shorts were not one of them.
Fashion historians believe
cargo pants were introduced
around the 1940s for military
use. In the U.S. Air Force, narrow cockpits meant pilots
needed pockets in the front of
their uniforms to access supplies during flight. British soldiers climbing or hiding in high
places found pockets on cargo
pants more effective than utility
belts for storing ammunition.
They exploded into mass
fashion in the mid-to-late 1990s,
coinciding with the popularity
of teen retailers like Abercrombie & Fitch, which became famous for filling its catalogs
with shirtless men wearing only
cargo shorts. The pockets filled
a utilitarian need as cellphones
became ubiquitous.
Those teenagers are now
married, and they dont get rid
of their clothes. They dont
evolve, said Joseph Hancock,
a design and merchandising
professor at Drexel University,
who wrote his Ph.D. thesis
2008
10
12
14
a growing percentage of
students are repeating grades
Getting ahead
Orlando West junior Sibonelo Hadebe has learned to
sidestep his schools problems
with hundreds of hours of after-school tutoring.
I believe I will be the first
black botanist in Soweto, said
the 18-year-old student, expressing the ambition many
hoped would drive students in
postapartheid South Africa.
Sibonelo worries that
classes at Orlando West arent
sufficiently rigorous to secure
him a spot in one of South Africas few undergraduate botany programs. Most days its
more hanging around than
learning, said the teenager,
who has a meticulous faded
Afro and wears black pearl ear
studs.
He and like-minded students
rely on Nonhlanhla Gamede, an
Orlando West student during
the late 1980s and a teacher
there in the 1990s. Over the
past three years, Ms. Gamede
has provided free after-school
tutoring.
On a recent afternoon in her
dining room, a block from the
schoolyard, Ms. Gamede helped
student Siphiwe Xaba plan
meals he could practice cooking: He hopes to become a chef.
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U.S. NEWS
HurdlesforDemocratsHousePush Obama:
BY MICHELLE HACKMAN
Democrats are hoping for big
gains in House elections this fall,
driven by the younger, more diverse voters who turn out in a
presidential year, demographic
shifts in suburban areas, and
what they see as a backlash
against Donald Trump.
But many analysts believe
shortfalls in recruiting and
money, due in part to the unusual amount of attention being
absorbed by a chaotic presidential race, will leave the Democrats shy of the 30 seats they
need to retake the House.
Leaders of both parties say
the Democrats are fielding a
solid crop of challengers, especially against the most vulnerable Republicans. But for a landslide or wave election,
Democrats also must win in
places where victory seems remote, and they are less well positioned in such areas.
Democrats placed good
candidates in winnable districts
to the extent they could, said
Dave Wasserman, who follows
House races for the nonpartisan
Cook Political Report. Where
they fell short was really expanding the playing field beyond
the 25 or so most vulnerable Republican seats.
Democrats always faced a
steep climb retaking the House
this year. Republicans control of
Trump Is
Unfit for
President
Shortfalls in recruiting
and money could
hamper partys efforts
to retake chamber
BY CAROL E. LEE
AND BYRON TAU
Josh Gottheimer, an attorney and speech writer, is challenging Republican Rep. Scott Garrett in
New Jerseys 5th congressional district. Democrats need 30 seats to gain control of the House.
egy will bear even more fruit,
Mr. Lujan said.
Democrats say 80 incumbent
Republicans will face Democratic
challengers this fall, and of those
races, 65 could be competitive.
The DCCC points to several
recruiting successes in suburban
Republican districts that are
proving resistant to Donald
Trump. Among them is Josh
Gottheimer, a young attorney
and speech writer in New Jersey
who is challenging Bergen
County-area Rep. Scott Garrett.
Mr. Garrett, who was first
elected in 2002, is considered a
formidable incumbent. But recent developments, including his
refusal to pay NRCC dues because he said the committee was
actively recruiting homosexual
candidates, have made him a
In Pennsylvanias Delaware
County, the DCCCs preferred
candidate, Bill Golderer, lost by
nearly 50 points in the primary.
Democrats privately admit
that their recruitment effort,
paired with a lack of enthusiasm
for either presidential candidate,
puts their likely gains between
10 and 20 seats.
Still, Nathan Gonzales, editor
of the Rothenberg & Gonzales
Political Report, cautioned
against writing off the Democrats recruitment entirely.
It might be easy to downplay some of these Democratic
candidates and look at them as
failed recruits, Mr. Gonzales
said. But theres still time for
the dynamic of the election to
change, and those recruits could
become members of Congress.
U.S.
Watch
ECONOMY
Consumer Spending
Rose Again in June
Transition planning for the next occupant of the White House, shown above, is already under way.
didates for staff positions. To
avoid a repeat of 2008, the
new playbook calls for the
leadership of each agency to
be selected and nominated as
a team.
The Partnership for Public
Service, founded in 2001 by a
former Justice Department official, set out to help formalize
the transition practice about a
decade ago. The group has
helped champion three bills
through Congress on transition reforms over the past
eight years, and over 30 other
bills on broader government
reform efforts over the past 15
years.
A bipartisan consensus on
the need for an orderly transition has only grown stronger
PRESIDENTIAL ELECTION
NEW YORK
BY BYRON TAU
WASHINGTONPresident
Barack Obama skewered Donald Trump on Tuesday over his
criticism of the parents of a
Muslim U.S. Army captain
killed in Iraq and said the Republican presidential nominee
is unfit to succeed him in the
White House.
Mr. Obama, responding to a
question at a news conference,
also called on GOP leaders to
revoke their endorsements of
Mr. Trump rather than simply
denounce his comments.
The Republican nominee is
unfit to be president, Mr.
Obama said.
The notion that he would
attack a Gold Star family that
made such extraordinary sacrifices on behalf of our country,
the fact that he doesnt appear
to have basic knowledge
around critical issues in Europe, in the Middle East, in
Asia means that hes woefully
unprepared to do this job, the
president added.
In a statement, Mr. Trump
linked his opponent, Democrat
Hillary Clinton, to the presidents record. Hillary Clinton
has proven herself unfit to
serve in any government office, Mr. Trump said. She is
reckless with her emails, reckless with regime change and
reckless with American lives.
Our nation has been humiliated abroad and compromised
by radical Islam brought onto
our shores.
Mr. Obama was asked about
the spat between Mr. Trump
and the parents of Capt. Humayun Khan, who was killed in
Iraq in 2004, after their appearance last week at the
Democratic National Convention.
Khizr Khan, Capt. Kahns father, criticized Mr. Trump over
his proposed plan to temporarily bar Muslims from entering
the U.S., saying the GOP nominee has sacrificed nothing
and no one.
Mr. Trump responded by
speculating that Mr. Khans
wife, Ghazala, who had accompanied her husband onstage at
the convention, wasnt allowed to have anything to say.
The Khans say she was too distraught to speak about her
sons death.
Some Republicans, including Arizona Sen. John McCain,
criticized Mr. Trump over his
remarks, but stopped short of
withdrawing their endorsements.
Mr. Obama said of Republicans who criticize Mr. Trump
but continue to support him:
What does this say about
your party that this is your
standard-bearer? he said.
There has to come a point at
which you say, Enough.
Mr. Obama has said before
that Mr. Trump lacks an understanding of world affairs,
particularly after the nominee
suggested South Korea acquire
nuclear weapons, called on
Japan to pay for the U.S. troop
presence there and threatened
to make Americas support for
allies in the Northern Atlantic
Treaty Organization contingent on their financial contributions to the alliance.
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
PERSONAL JOURNAL
BY JOANNA STERN
6 seconds
Security: Weak
The Swipe
13 seconds
Security: Strong
DREW EVANS/THE WALL STREET JOURNAL
The Chip
6 seconds
Security: Stronger
The U.S. is moving to more secure chip-based credit cardsyears after the rest of the
world. Only 28% of merchants support the new payments.
is canceled.
Things are more secure with
chip cards, aka EMV cards, named
after the companies that originally
developed the technology: Europay, MasterCard and Visa. Once inserted in the slot, the small, metallic square chip offers up a unique
string of numbersor a cryptogramthat goes to the financial
institutions to verify account info.
Since its different for each transaction, a criminal couldnt steal it
to use again.
So why the hubbub? For all that
to happen, stores need to purchase
high-tech terminals which must be
upgraded with software, then certified by various parties, including
all the accepted payment brands
(Visa, MasterCard, American Express, ETC.). Not only is this process costly, but for larger chains
with complicated systems, it can
take up to six months.
Then theres the transaction itself: Since it generates more data
than just a swipe, it takes (a lot)
longer.
Only 28% of the total merchant
population in the U.S. support the
payments, according to Visa. As of
last October, any retailer that
doesnt take chip cards is responsible for paying back counterfeit
transactions once paid by banks.
This liability shift stirred
some to action. Megaretailers such
as Target, Home Depot and Wal-
The Phone
BY DENISE ROLAND
Unlocking wines secrets: Dr. Nady Braidy of Australia, above; Dr. Alberto
Bertelli of Italy, below left; Christer Rosn, below right, heads a Florida biotech.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
Gold-Medal Documentary
GETTY IMAGES
REVIEW
ALLEN BARRA
AMBITION DOESNT
TAKE A HOLIDAY
1 for 3 Months.
rows in defeat.
The opening scene shows a bright red
sun, an obvious symbol for Japan, followed by another symbolic circlea
wrecking ball smashing into condemned
buildings to clear the way for the national
stadium where the Games would be held.
The city of Tokyo appears startlingly fresh
and new, particularly when one realizes
that less than two decades earlier much of
its infrastructure was destroyed during
World War II.
If there is one unequivocal winner in
Tokyo Olympiad, then, its the city itself.
Mr. Barra writes about sports and the arts
for the Daily Beast and Truthdig.
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
OPINION
REVIEW & OUTLOOK
ith the party conventions wrapped let any criticism pass without lashing back in
up, the contours of the final 100 days ad hominem fashion. Thus Mr. Trump has spent
of the U.S. general election are be- the past three days trading insults with Khizr
coming clearer. America
and Ghazala Khan, whose son
Democrats figure they was an Army captain killed in
wants change, which should
help Republicans. But Demo- can bait the Republican
Iraq in 2004; Mr. Khan spoke
crats are confident that Hilagainst Mr. Trump at the
lary Clinton will win if they into blowing himself up. Democratic convention. Mr.
can make the election about
Trump could have shown
Donald Trump, and Mr. Trump
statesmanship and made an
seems happy to oblige.
expression of sympathy and gratitude for the
Democrats revealed in Philadelphia that Khans sacrifice. If he had to make a political
theyve decided not to make the campaign a point, he could have mentioned that Mrs. Clintypical left-right ideological battle. Instead, ton voted for the Iraq war and then turned
they will try to disqualify Mr. Trump as temper- against it when the going got rough.
amentally and morally unfit for the Presidency.
Instead, Mr. Trump made himself look small
From now until November, expect to hear a lot and hurt his own claim to be Commander in
about 3 a.m. phone calls and nuclear winter Chief. Mitch McConnell and Paul Ryan were
and on the occasional lighter note, Mr. Trumps compelled to issue statements distancing
well-documented vulgarity.
themselves from Mr. Trump by commending
President Obama put this strategy crisply Humayun Khans service to the nation. John
when he noted that what we heard in Cleve- McCain was even blunter. Memo to Trump
land last week wasnt particularly Republican Tower: Hillary Clinton isnt trying to rebut Paand it sure wasnt conservative. For eight years tricia Smith, who blamed the Democrat at the
the worst thing Mr. Obama could say about GOP convention for her sons death at the U.S.
somebody is that hes a Republican. So calling mission in Benghazi.
Mr. Trump worse than a conservative RepubliMrs. Clintons other advantage is that Mr.
can is, for him, really harsh.
Trump knows little about the world and cant
The public desire for change is nonetheless be bothered to learn. In an interview with ABCs
real and growing, and Democrats know that George Stephanopoulos on the weekend, Mr.
Mrs. Clinton is the least convincing change Trump seemed to suggest that Russian proxies
maker in American politics, to quote her hus- had not invaded Crimea. Hes not going to go
bands phrase. But they have built formidable into Ukraine, all right? You can mark it down.
money and organizational advantages, and they You can put it down, Mr. Trump blustered. Last
figure they can win with even a candidate as week he floated the prospect of officially recogflawed as Mrs. Clinton as long as 2016 is a refer- nizing Russias annexation.
endum on Mr. Trump, not on the Clinton-Obama
A two-page briefing document could have
agenda or the last eight years.
acquainted Mr. Trump with the Crimean realMeanwhile, Donald Trump seems thrilled ity, but that would have required doing a high
that Democrats are trying to make the election schoolers amount of homework. Maybe it
about his favorite subjectDonald J. Trump. could have even instructed him that a RepubliWere he as shrewd a politician as he claims to can who wants to win an election cant let a
be a businessman, hed explain how Clinton- Democrat look more hawkish toward U.S. adObama policies have failed and why his would versaries like Vladimir Putin.
be superior. Above all, hed work overtime to
Mr. Trumps indiscipline managed to drown
reassure undecided voters that he is a risk out Fridays dismal economic report and anworth taking. He cant tap into dissatisfaction other burst of Clinton dissembling about the
with the status quo if Americans cant imagine classified material on her private email server.
him sitting in the Oval Office.
In rookie candidate school, theyd called this
But thats not the Trump way, and he cant political malpractice.
seem to help himself. The New Yorker is as easy
Mrs. Clinton appears to be getting a bounce
to read as the giant Trump signs he puts on his from her convention and by next week may have
buildings, and Democrats have figured out they solidified her lead in the polls. She and Democan bait him into self-destructive behavior.
crats must be amazed that theyve drawn an opMr. Trump is so thin-skinned that he cant ponent who so easily plays into their hands.
resident Obamas campaign against Is- Libyas unity government, which is recognized
lamic State has been marked by hesita- by the United Nations and has been trying to
tion and gradual escalation, and on assert control over more of the country. Militias
Monday it expanded to the
loyal to the government have
The U.S. conducts
would-be caliphates Libyan
been gaining some ground
front. U.S. planes conducted
along the Libyan coast and
air strikes against
airstrikes against Islamic
have taken parts of Sirte. U.S.
Islamic State in Africa. special forces are known to be
State vehicles and a tank in
the coastal city of Sirte, which
operating in Libya, and no
has become the Libyan headdoubt one of their tasks is coquarters for the terror group.
ordinating the air strikes with the needs of local
Its about time. Forces loyal to the Libyan forces on the ground.
government have long sought more U.S. miliThe Libyan effort is crucial to the larger
tary assistance to stop the spread of Islamic anti-Islamic State campaign, especially as
State, and U.S. generals have supported it. Mr. pressure grows on the terror groups strongObama has resisted for reasons that are hard holds in Iraq and Syria. If the jihadists are
to understand, unless the President simply forced to flee Mosul or Raqqa, they would love
hasnt wanted to publicly acknowledge that the to be able to raise their black flag over cities
terror group has expanded its reach.
in Libya. Islamic States appeal depends on its
A U.S.-led coalition deposed Moammar Gad- ability to hold territory to pretend its a state.
hafi in 2011 but then the U.S. more or less left It also needs areas where it can train recruits
Libyans to their own chaotic devices. Islamists without fear of U.S. air strikes.
and other militias filled the vacuum, and IsMr. Obamas anti-Islamic State campaign has
lamic State has become the most ruthless in been picking up the pace as the election nears
trying to establish another sanctuary for its and the end of his Presidency approaches.
murderous brand of Islam.
Whatever his motivation, the sooner the caliphThe U.S. strikes in Sirte were requested by ate is rolled up, the better.
Democracy in Tunisia
unisia has ousted its Prime Minister, governing momentum, and pushing proHabib Essid. If you missed the news, growth reforms against labor-union and leftist
consider it as further evidence that the opposition looked daunting.
North African country reHence President Beji Caid
An Arab parliament
mains the sole democratic
Essebsis call for the formasuccess story to emerge from
of a new government
votes to oust a premier. tion
the Arab Spring.
last month, which triggered
No bloodbath follows. the weekend no-confidence
Mr. Essid, who came to office last year, lost a no-confivote Mr. Essid lost. Under the
dence vote by a wide margin
constitution, the parties have
in Parliament over the weekend. The discon- 30 days from the vote to form a new administent stemmed from Mr. Essids failure to boost tration, and party leaders are meeting
economic growth and improve security. Lo, Wednesday to begin negotiations.
the U.S.-educated Mr. Essid graciously left his
The new government will have no time to
office as in a Western democracy.
waste getting to grips with Tunisias considerTunisias political stability is all the more able challenges. External security is the Presiremarkable given the challenges the country dents purview, but the next cabinet should
faces. Jihadist atrocities have decimated Tu- enhance coordination among domestic-secunisias tourism industry, and Islamic States rity agencies, take up subsidy reforms and inifoothold next door in stateless Libya is a tiate a fresh round of privatization of statechronic danger (see the editorial nearby). owned enterprises.
The jobless rate has remained above 15% for
As those debates continue, recall how reyears, in part because the state still plays far markable this is for an Arab state. Mr. Essids
too large a role in the economy. Consumer peaceful ouster follows a number of recent
subsidies that arent sustainable drain the milestones, including a secular constitution,
public fisc.
a spirit of comity among the countrys major
One complaint against Mr. Essid was that parties, and the decision earlier this year by
he remained aloof from the retail politics and one of those parties, Ennahda, to jettison its
consensus building necessary to implement Islamist identity.
reforms. More than a year since the Islamist
Mr. Essid hailed the no-confidence vote
shooting at the Bardo National Museum that against him for consecrating Tunisias naleft 20 foreign tourists dead, Mr. Essids gov- scent democracy. He received a standing ovaernment had failed to draw up an effective, tion as he stepped down, and Tunisia once
comprehensive counterterror strategy.
again demonstrated its political promise in a
The feeling inside his own Voice of Tunisia region full of military dictatorships, Islamist
party, moreover, was that Mr. Essid had lost theocracies and failed states.
The Go-Along
Republicans
Theres an old saying
that in politics there
are no permanent victoriesand no permanent defeats. Barry
Goldwater was crushed
in 1964 but the ideas
GLOBAL
that animated his canVIEW
didacy found new life
By Bret
in the Reagan RevoluStephens
tion of 1980. Bill Clinton declared the era of
big government over in 1996 and 14
years later we got ObamaCare.
The inevitable turning of the policy
wheel should comfort conservatives unnerved by the prospect of a Hillary
Clinton presidency. Liberals overreach.
Statist solutions fail. Voters tire of oneparty rule. To govern is to own, and the
next president will own the next recession, the next foreign-policy fiasco, the
next Veterans Affairs scandal. If Mrs.
Clinton is everything Republicans say
she isan opportunistic, dishonest, incompetent left-wing ideologuethey
can at least look forward to a one-term
presidency. I know I do.
But to say there are no permanent
victories or defeats in politics doesnt
mean there is no permanent dishonor.
Huey Long, Charles Coughlin, Alger
Hiss, Joe McCarthy and Bull Connor are
the foul names of Americas 20th century, and always will be. And those who
supported and excused them will always be tainted by association.
This is where Republicans now find
themselves with their presidential
nominee. Of all of Donald Trumps vile
irruptionsabout Sen. John McCains
military record, or reporter Serge
Kovaleskis physical handicap, or Judge
Gonzalo Curiels judicial fitnesshis
casual smear of Ghazala Khan is perhaps the vilest.
This isnt simply because Mrs. Khan
is a bereaved mother. Bereavement
alone does not place someone above
criticism, especially when it comes to
political differences. Nor is it because
Mrs. Khans son, U.S. Army Capt. Humayun Khan, died heroically to protect his
troops in Iraq. The special deference
given to Gold Star parents is, at bottom, a social convention.
No: What makes Mr. Trumps remarks so foul is their undisguised sadism. He took a woman too heartbroken
and anxious to speak of her dead son
before an audience of millions and
painted a target on her. He treated her
silence as evidence that she was either
a dolt or a stooge. He degraded her.
She was standing there. She had nothing to say, Mr. Trump told ABCs
George Stephanopoulos. She probably,
maybe she wasnt allowed to have anything to say. You tell me.
In this comment there was the full
unmasking of Mr. Trump, in case he
needed further unmasking. He has, as
Humayuns father Khizr put it, a black
soul. His problem isnt a lack of nor-
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OPINION
By Alan S. Blinder
GETTY IMAGES/ISTOCKPHOTO
a higher minimum wage. While raising it would affect directly only the
very lowest wage earners, evidence
suggests that raising the wage floor
pushes up other low wages as well.
Mrs. Clinton also advocates widespread profit-sharing as a way to
put more money into workers pockets. She would promote that goal
both by using the presidential bully
pulpit and by providing tax incentives for businesses that share profits. Since the scholarly evidence
suggests that profit-sharing raises
productivity, such tax breaks will
partly pay for themselves.
Increased vocational training and
apprenticeships for the non-college-
bound are also major Clinton policies. The standard response to the
huge wage gap between workers
with and without a college degree is
to send more students to college and
get more of them graduating. Thats
fine, but not everyone is a good candidate for a college degree, and many
well-paying jobs dont require one.
The U.S. can increase its productivity
and reduce inequality by ensuring
that the right people get vocational
training and apprenticeships.
And then there is what may be the
surest way to raise wages over the
long run: providing pre-K education
for all American children. Mrs. Clinton
has promoted this idea for decades.
Hmmm. Anyone remember election year 2000, when the NAACP ran
an ad implying George W. Bush was
OK with lynching? It exploited the
brutal murder of an African-American in Texas who had been beaten,
chained to the back of a pickup truck
and then dragged through the
streets. In a voice-over, the murdered mans daughter says, So
when Governor George W. Bush refused to support hate-crimes legislation, it was like my father was killed
all over again.
Where were the keepers of public
respectability then, warning that anyone who didnt immediately renounce
the NAACP for this smear would be
forever tainted?
And while were on the subject of
smears directed at Sen. McCain, in the
2008 campaign Georgia Rep. John
Lewis said the tone of the McCain/Palin campaign reminded him of another destructive period in American
history. Just to underscore his point,
Mr. Lewis noted that while George
Wallace never threw a bomb or fired
a gun, he created the atmosphere of
hate that led to the murder of those
innocent girls.
Again, hard to recall a chorus of
disapproval, much less the suggestion that Mr. Lewis and his followers
had forever fouled themselves.
Likewise the attacks on Mitt
Romney. In 2012 Sen. Majority
Leader Harry Reid falsely accused
Mr. Romney of failing to pay his
taxes; the deputy manager of the
Obama campaign suggested he was
a felon; and a pro-Obama super PAC
ran an ad blaming Mr. Romney for
the cancer death of a woman whose
husbands steel plant had been shut
down in a Bain Capital restructuring
years earlier.
The truth is that Mr. Trumps offense is in good part a creature of the
campaigns Democrats have run
against Republicans for decades.
Sooner or later it was inevitable that
voters, tired of both political correctness and playing defense, would opt
for a Republican nominee who would
give as ugly as he got.
Unlike Mr. Kelley, who has a string
of state championships and an impressive win-loss record, Mr. Trump
has not yet proved his strategy will
put him over the goal line come the
fall. But hes sure taken Coach Kelleys point about offense.
Write to mcgurn@wsj.com.
Robert Thomson
Chief Executive Officer, News Corp
Gerard Baker
Editor in Chief
William Lewis
Chief Executive Officer and Publisher
federal state. The leaders have indicated that a broad agreement is likely
by the end of the year, after 42 years
of being a divided countrythe EUs
only such case of this kind.
However, while progress is being
made, there remain considerations of
property, territory and security that
still need to be settled. A final agreement is to be put to a referendum.
The viability of any prospective solution would entail large financing
needs to address the reconstruction efforts and the necessary property-compensation plans. But a successful
agreement would offer the chance for
major potential benefits to both communities. To help, the EU could start by
providing firm political and technical
support to the negotiating process.
A viable and well-balanced solution
would unify a divided EU member
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SPORTS
TIM CLAYTON/CORBIS/GETTY IMAGES (TOP); EVAN VUCCI/AP (TRUMP); PAUL SANCYA/AP (CLINTON)
Green Bays matchup with the New York Giants is one of the games that will clash with the scheduled debate between Donald Trump and Hillary Clinton.
decide here. You know whats more
important to your life: who is going
to lead the free world for the next
four years, or the Falcons in Week 3.
But amid the clamor, I think
were all missing a brilliant compromise: Hold the presidential debates
during the games. Combine footballand politicsinto the mustsee television event of our lifetimes.
Heres how it can be done:
1. When theyre not playing football, go to Donald and Hillary. Everybody knows theres a lot of down
time in pro football games. A
looottt of down time. Fun fact about
football: Its mostly people standing
around. Perhaps the best-known
sports story ever produced by the
Journal calculated that, on average,
there is just 11 minutes of action in
a three-hour NFL game. Eleven minutes! In terms of pace, an NFL game
makes curling look hectic.
All that downtime is a golden
opportunity for the people at the
RNC and DNC. Put Trump and Clinton on personalized football carts in
opposite end zones, and every time
theres a break in the action, drive
Weather
Shown are todays noon positions of weather systems and precipitation. Temperature bands are highs for the day.
-15
-10
-5
0
5
10
15
20
25
30
35
Riga
gow
Glasgow
Moscow
C
p h g
Copenhagen
D b
Dublin
A
d
Amsterdam
arsaw
Warsaw
li
Berlin
London
l
Brussels
k
Frankfurt
ev
Kiev
Pra
Prague
Vienna
Geneva
h
Bucharest
Athens
Ath
33
30
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46
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63
69
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Today
Lo W
16 r
14 pc
26 s
23 t
29 s
19 pc
26 t
24 s
18 r
9 c
13 s
18 s
15 r
8 pc
25 s
10 r
25 pc
21 t
21 pc
27 s
16 s
21 pc
36 s
13 c
13 sh
17 r
Tomorrow
Hi Lo W
21 15 pc
17 14 c
34 25 s
32 21 pc
47 29 s
29 19 pc
32 26 t
33 24 pc
25 16 sh
18 9 c
33 17 s
29 19 s
21 14 pc
17 10 c
37 25 s
23 11 s
31 25 pc
29 21 t
32 24 pc
38 27 s
27 14 pc
32 23 pc
45 33 pc
19 11 sh
20 11 sh
26 15 pc
City
Geneva
Hanoi
Havana
Hong Kong
Honolulu
Houston
Istanbul
Jakarta
Johannesburg
Kansas City
Las Vegas
Lima
London
Los Angeles
Madrid
Manila
Melbourne
Mexico City
Miami
Milan
Minneapolis
Monterrey
Montreal
Moscow
Mumbai
Nashville
New Delhi
New Orleans
New York City
Omaha
Orlando
If you cant
nd six more
Ice
Tomorrow
Hi Lo W
32 20 s
21 14 t
30 21 s
39 29 pc
30 21 pc
35 21 pc
32 14 s
25 19 pc
45 30 pc
31 21 s
34 22 pc
24 19 pc
20 13 pc
32 26 pc
18 6 s
32 24 pc
22 14 pc
27 14 s
34 25 pc
34 27 sh
31 26 c
23 13 sh
17 11 sh
35 26 t
36 22 s
32 25 s
31 25 c
32 22 s
22 13 pc
31 22 pc
30 15 s
Today
City
Hi Lo W
Ottawa
31 18 pc
Paris
27 17 pc
Philadelphia
29 20 pc
Phoenix
38 29 c
Pittsburgh
31 20 pc
Port-au-Prince
36 22 pc
Portland, Ore.
27 15 pc
Rio de Janeiro
23 20 c
Riyadh
45 32 s
Rome
31 21 s
Salt Lake City
35 19 s
San Diego
24 20 pc
San Francisco
21 13 pc
San Juan
32 26 pc
Santiago
18 5 pc
Santo Domingo 32 23 pc
Sao Paulo
20 14 c
Seattle
25 14 pc
Seoul
33 24 t
Shanghai
31 26 t
Singapore
31 26 pc
Stockholm
22 14 pc
Sydney
18 12 r
Taipei
35 27 c
Tehran
34 23 s
Tel Aviv
32 25 s
Tokyo
29 25 pc
Toronto
30 19 pc
Vancouver
21 13 pc
Washington, D.C. 30 21 pc
Zurich
27 14 s
37 Trendy juice
additive
4 Fatty substance
in nerve cells
38 Bored person
5 Heavy-duty sun
block?
40 Work with a
lime
45 Hydropower
structures
7 Big Apple
product
54
55
62
36
36 Catchall
category
3 Home of the
Cowboys
stadium
26
41
34 Capital about
230 miles
southwest of
Miami
Down
1 Barbershop
2 Target of a
certain wand
31
44
52
13
23
34
40
12
48 Most cuttingedge
8 Robocaller, e.g.
50 Caused to take
flight, say
9 Bordeaux red
10 Quiche add-in
51 Food fight
11 Michelle
Robinsons
married name
52 Arrow airer
53 Have a huge
crush on
12 Coin consumer
54 Backup plan
lead-in
13 Toy piano
Today
Hi Lo W
29 16 s
33 26 t
33 23 t
32 27 t
31 23 s
36 25 s
32 25 s
31 24 c
19
1 s
34 23 pc
38 28 pc
22 16 s
24 15 pc
28 19 pc
37 20 s
33 25 pc
13 4 pc
24 12 t
32 26 pc
31 21 s
32 23 pc
36 21 s
29 19 pc
22 15 sh
28 26 r
34 23 pc
34 28 c
34 27 t
27 19 pc
35 24 pc
34 24 t
Tomorrow
Hi Lo W
31 16 pc
29 25 c
34 22 pc
33 28 t
31 25 pc
36 25 pc
31 25 s
32 24 s
16
1 s
35 23 pc
37 28 t
22 16 pc
22 14 sh
28 18 pc
37 20 s
33 26 t
14 3 pc
24 11 t
33 26 pc
33 21 pc
31 17 t
36 21 s
31 20 pc
24 14 pc
29 26 sh
35 23 pc
35 28 t
34 27 pc
27 20 s
34 20 pc
33 24 t
29 Pricey property
Across
1 Door
32 Home base?
5 Faucet
33 Nation with a
dragon on its flag
9 Teeth
14 ___ a soul
35 Fix
15 Senate setting
39 Comprehensive
16 Gender-defining
term
41 As a companion
42 Taqueria
salutation
17 Speck in the
ocean
54 As I see it
online
55 Kind of
candidate
56 1960s record
production
formula, or a hint
to understanding
this puzzles
edges
18 O woe!
43 Transparent
sheet
62 Once Upon a
Time in America
director
19 Treasured violin
44 Bordered (on)
64 Bring in
20 56-Across
developer
46 Post-breakdown
need
66 Zillow measures
24 Well done!
25 Note
49 Colorado
getaway
27 Health insurance
giant
51 Name in a New
York borough
57 Rachels older
sister
22 Navel base?
26 Net material
58 Symphonie
Espagnole
composer
27 Thunder
28 Sorority letter
59 Approximately
29 Great Swiss
mathematician
60 Dortmund
denial
30 Maker of
deliveries by air
61 Bell
31 Like many
barbecue sauces
67 Before I forget...
68 Green land
69 Small bird
70 Owl
71 Game show
65 Layered treat
2016 Dow Jones & Co. Inc. All rights reserved. 6DJ3313
29
11
Flurries
Global Forecasts
Hi
22
20
35
33
48
29
32
34
21
17
29
26
22
14
36
18
31
30
31
38
35
32
45
19
19
25
10
25
28
51
Snow
22
66
Rabat
b
City
Amsterdam
Anchorage
Athens
Atlanta
Baghdad
Baltimore
Bangkok
Beijing
Berlin
Bogota
Boise
Boston
Brussels
Buenos Aires
Cairo
Calgary
Caracas
Charlotte
Chicago
Dallas
Denver
Detroit
Dubai
Dublin
Edinburgh
Frankfurt
21
47
T-storms
T i
Tunis
19
43
Rain
Al
i
Algiers
18
39
t b
Istanbul
Lisbon
Lisbo
17
32
Showers
Rome
16
Stationary
Madrid
d id
24
Cold
Milan
15
27
Warm
Budapest
14
20
Munich
h
Paris
C
U
A
T
R
O
A
R
C
H
E
R
A S
T H
M E
P
Z O
I O
G R
N S
A L
M E
EW
D
A C
F R
T O
E P
R
O
A C
N E
T A
I N
H
A
L
O
A
B
D
O
M
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N
T
R
U
S
T
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H
O L I
K I N
O F
K T H
O U
F L
F U
T
A
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O
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F
I
S A N
T H E
UM
C E T
K
A
T N
E A N
N C E
O O R
S S Y
R O
E U
T R
I R S
D O
E
H
D O O
OM
A P E
S S O
T
P
I MA
I T
C H
E Y
B S
R O
I X
T
E M
R S
A N
R
O
L
L
I
E
T
E
S
L
A
S
gives you the tools you need to excel. Use our insight to your advantage.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
1.16
7000
1350
50
0.40
2.25
1.13
6500
1300
45
0.20
1.50
1.10
6000
1250
40
0.00
0.75
1.07
5500
M
1200
M
35
M
-0.20
M
0.00
M
As of 4 p.m. ET
each fund.
In Riverstones case, profits
in some of its funds shriveled
after U.S. oil prices plunged to
below $27 a barrel earlier this
year from more than $100 in
mid-2014. That decline reduced
the value of some companies
owned by Riverstone, eliminating paper gains and could require some executives to return
profits in a so-called clawback
if the investments dont regain
value before the funds that hold
them are liquidated.
David Leuschen and Pierre
Lapeyre Jr., who founded Riverstone and remain its majority
owners, are the primary recipients of its portion of deal profits, known as carried interest.
Through a spokesman, Messrs.
Leuschen and Lapeyre declined
to comment.
Firms Try
To Apply
More Logic
To Salaries
BY LAUREN WEBER
The city council in Oakland, Calif., recently voted to block coal exports through a new terminal on an old army base, shown in May.
BFA
Repressive
Policies
Circle
The Globe
yield 1.537%
major indexes climbs to records have been driven by continued support from central
banks, as opposed to robust
growth in corporate earnings.
But some, noting that U.S.
economic data has on the
whole been upbeat, saw the
recent losses as a temporary
dip.
We still see a lot of skepticism out there, said Scott Colyer, CEO of Advisors Asset
Management, which has $16.5
billion in assets under management. But that actually
gives us confidence that
theres probably more new
highs in the future.
Shares of consumer-discretionary companies, which have
underperformed other sectors
throughout the year, were
among the worst performers
Notice to Readers
Business & Finance now
features more stories and
columns about markets and
finance on its section front.
Please send your comments
to wsjcontact@wsj.com.
Battered Banks
Credit Suisse and Deutsche
Bank have fallen harder than
the Stoxx Europe 50.
Year-to-date performance
0%
Stoxx Europe 50
10
20
Deutsche Bank
30
40
50
Credit Suisse
60
2016
Source: FactSet
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
INDEX TO BUSINESSES
A
Allergan.......................B4
Apple...........................B3
Avon Products ............ B3
General Motors...........B4
GlaxoSmithKline.........A8
Google ......................... B5
GTIS Partners.............B9
B
Banco Santander ...... B10
Biogen ......................... B4
Blackstone Group ....... B9
BMW ......................... B10
Brazil Hospitality Group
.....................................B9
C
Cloud Peak Energy B1,B2
Commerzbank ............. B6
Conference Board ....... B5
D
Didi Chuxing Technology
.....................................B3
E
Eurobank Ergasias......B7
Exxon Mobil................B2
F
Facebook......................B3
Ferrari..........................B4
Fiat Chrysler
Automobiles ............. B4
Ford Motor..................B4
Frontier International
Shipping....................B1
Honda Motor...............B4
1Malaysia Development
.....................................B7
Intesa Sanpaolo........B10
J
JBG............................B10
JHSF Participacoes.....B9
Peabody Energy..........B1
Piraeus Bank...............B7
Procter & Gamble.......B2
KKR..............................B7
Riverstone Holdings...B1
Royal Bank of Scotland
Group.......................B10
L
Lloyds Banking Group
...................................B10
M
Marriott InternationalB9
McDonald's..................B5
Merck...........................B4
Millennium Bulk
Terminals..................B1
Mitsubishi Motors......B4
Mitsubishi UFJ Financial
Group.......................B10
Molson Coors Brewing
.....................................B3
Morgan Stanley.....B1,B2
S
Samsung Electronics..B3
Shire............................B3
T
Toyota Motor..............B4
U
Uber Technologies ...... B3
V
Volkswagen.................B4
W
Wal-Mart Stores.........B5
INDEX TO PEOPLE
A
Hayes, Arthur...........B10
Archer, Howard...........B6
Aso, Taro.....................B6
Aziz, Riza....................B7
C
Cotton, Billy................A2
Kalanick, Travis...........B3
Kuroda, Haruhiko........B6
LaNeve, Mark..............B4
Low, Jho......................B7
Diggle, Paul.................B6
E
Engels, Stephan..........B6
G-H
Golden, Ken.................B2
Gu, Weiyong................B6
Hall, Matthew.............B6
Matsukawa, Tadashi...B6
Mohatarem, Mustafa . B4
Mori, Nobuchika..........B7
T
Taylor, David...............B2
Tombs, Samuel...........B6
Tonello, Matteo .......... B5
Voorhees, Erik...........B10
PROFITS
Continued from the prior page
ten 10 years or more.
It isnt clear how much, if
any, cash Riverstone executives
personally have had to surrender back to the fund. They
could hold off until the fund is
liquidated, hoping that oil
prices bounce back and their
debts are erased. The firm typically holds a portion of its deal
profits in escrow to avoid having to ask executives to repay
large sums should investments
lose value, according to a person familiar with the matter.
Riverstone isnt alone in having profits slip away in the oil
bust. Private investment funds
focused on oil and gas lost
roughly 22% of their value in
2015, a crushing year that has
negated several prior years of
gains, according to investment
adviser Cambridge Associates
LLC. For the five years ended
Dec. 31, such funds have an annualized loss of 0.06%, after
fees, Cambridge says.
Riverstone was founded in
2000 by the two former Goldman Sachs Group Inc. energy
bankers as the shale boom was
taking off. One of the New York
investment firms early funds,
launched in 2002, produced annualized profits of about 55%
after fees, according to public
pension records.
Money poured into subsequent funds from pensions and
other institutional investors eager to get in on the shale boom
and renewable energy, one of
Riverstones other specialties.
Riverstone became a landing
spot for former Goldman bankers as well as former oil company CEOs from firms like Anadarko Petroleum Corp. and BP
FUNDS
COAL
Continued from the prior page
Cloud Peak Energy Inc.,
the countrys No. 3 coal producer, said last month it was
exploring all options, including a sale of its stake in a
planned terminal about 100
miles north of Seattle, after
the U.S. Army Corps of Engineers in May blocked the
project. The Army Corps said
the terminal would have infringed on the fishing rights
of an American Indian group,
the Lummi Nation.
Oregon denied a permit for
a coal-export facility on the
Columbia River in 2014, and
another large terminal in
Washington has been under
review by the Army Corps for
four years.
Environmentalists
have
cheered the rejections. Communities arent going to let
this stuff get developed in
their backyards, said Cesia
Kearns, Western region director of the Sierra Clubs Beyond Coal campaign, which
has been fighting against the
development of coal terminals on the West Coast.
As Chinas growth slowed
recently, U.S. producers were
undercut by cheaper coal
from Australia and Indonesia.
These indexes cite notable references to most parent companies and businesspeople
in todays edition. Articles on regional page inserts arent cited in these indexes.
Government
Prime
$3 billion
2
1
0
2007
08
09
10
11
12
13
14
15
16
2007
08
09
10
11
12
13
14
15
16
14
15
16
6%
5
4
3
2
1
0
Japan Exposed
The scramble by
Japanese banks for
dollars has made it
more expensive to
swap yen for dollars,
measured by the
dollar/yen 1-year
basis swap.
0 percentage point
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2007 08
09
10
11
Thwarted Exports
Out of seven West Coast export terminals proposed in the past ve
years, none has opened
1 Cherry Point, Wash.
Critical permit denied by
11
Army Corps of Engineers over
violation of Lummi Nation's
treaty rights
Seattle
3 Longview, Wash.
55
Portland
WASHINGTON
22
OREGON
66
100 miles
CALIFORNIA
Sacramento
N E VA DA
77
12
13
Even with functioning export terminals, todays international prices would barely
cover the companies shipping costs. If one of these
ports got approved tomorrow, they could have the option of losing $10 a ton selling more coal, said Evan
Kurtz, analyst at Morgan
Stanley.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
BY JONATHAN CHENG
SEOULFor the launch of
its latest premium smartphone, Samsung Electronics
Co. is sticking to its winning
playbook.
The smartphone maker introduced on Tuesday a refresh
of its large-size Galaxy Note
series that hews to the same
formula that made its flagship
Galaxy S7 a hit with consumers earlier this year: Add water-resistance and expandable
memory to a sleek metallic
curved-screen smartphone.
It also adds one new eyegrabbing featurean iris scanner that, in addition to the existing fingerprint scanner,
enables a user to unlock the
device, or access more sensitive content, with the blink of
an eye.
While other handset makers
have introduced iris scanners
in certain countries, Samsung
officials say the Galaxy Note 7
is the first to roll out an iris
scanner globally.
By adding these new features, Samsung aims to build
on the Galaxy S7s momentum,
rolling out another premium
smartphone in the brief window it has to lure consumers
before rival Apple Inc.
launches a new iPhone this
fall. That is crucial for Samsungs turnaround plans as it
seeks to revive its mobilephone business after two difficult years of falling profit and
market-share losses.
By introducing the Galaxy
Note 7 to consumers in early
August, Samsung is getting a
bigger head start than ever on
its Cupertino, Calif.-based rival.
Last year, Samsung held its
launch event for the Galaxy
Note in mid-August, and two
years ago, Samsung began
selling its Galaxy Note in early
October, two weeks after Apple began selling its iPhone 6.
The launch comes as the
South Korean technology giant
reported last week its most
profitable quarter in two
years, as operating profit from
its mobile division jumped by
57% from a year earlier, driven
largely by the success of the
Galaxy S7, which analysts estimate has sold nearly 30 million units since its launch in
mid-March.
At the same time, the companys stock has taken off,
putting its shares on the cusp
of a record highlast reached
at the beginning of 2013, at
the peak of Samsungs smartphone dominance.
By sticking to its formula,
Samsung is doubling down on
what it knows consumers
want: practical nuts-and-bolts
features such as a powerful
camera and longer battery life
in a sleekly designed frame.
But the company is also
risking a certain sameness in
its two premium smartphone
series. This years Galaxy S
and Galaxy Note smartphones
both revive water- and dustresistance features that were
removed last year to the consternation of consumers and
feature curved screens on all
four sides of the handset.
Both the Galaxy S and Galaxy Note, which share the
model number 7 this year
(Samsung skipped the Galaxy
Note 6 to achieve the brandname harmony), also feature a
new always-on display that
keeps the screen active even
when the phone is dormant.
While Samsung officials acknowledged limitations to the
iris scannerit wont work
with sunglasses or in some
bright-light settingsthey asserted that it was more secure
than a fingerprint scanner.
The Galaxy Note 7 will go
on sale Aug. 19.
BY RICK CAREW
HONG KONGJust over a
year ago, Uber Technologies
Inc. Chief Executive Travis Kalanick boasted to investors that
the ride-hailing startup was experiencing remarkable and
unprecedented growth in
China. Now, after a bruising
battle, Mr. Kalanick has swallowed his pride and surrendered to his Chinese rival.
The about-face came as big
investors amped up the pressure on the Uber chief to cut
mounting losses in its battle
with rival Didi Chuxing Technology Co., according to people familiar with the situation.
Both companies were spending
billions of dollars to win market share, offering lucrative
commissions to drivers and
deep discounts to riders.
It was nuclear warfare,
says a banker close to the parties. With the amount of
money raised by both sides, it
made it impossible for anybody
to win.
Still, the smart money figured Didifocused only on
Chinahad the financing and
connections to outlast Uber,
which had to fight fires across
the globe.
The road to the deal for Didi
to buy Ubers China operations
began in May, as several major
investors with big stakes in
Didi and Uber formed a backchannel to shuttle proposals
Samsungs
Phone
To Get a
Head Start
An Uber station outside a mall in Beijing. The company had aimed to capture the Chinese market.
between Didi in Beijing and
Uber in San Francisco to test
appetites for a negotiated
peace.
Didi executives werent interested, at least initially, the
people said. The company was
putting the finishing touches
on a $7.3 billion round of fundraising that would lead to a
sky-high valuation of $28 billion with deep-pocketed Apple
Inc. among the investors.
The fresh funds gave Didi a
$10.5 billion war chest to win
China. Uber, meanwhile, had
raised some money from Chinese investors, but was chiefly
tapping its global fundraising
machine for the battle. Uber
also needed its money for skirmishes across the globe
against foes including Ola Cabs
in India and Lyft Inc. in the U.S.
@wsjd | wsjd.com
A new feature, called Instagram Stories, is intended to make it easy to share daily moments.
Business
Watch
AVON PRODUCTS
Cosmetics Firm
Sees Sales Fall
SHIRE
TECHNOLOGY
MOLSON COORS
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BUSINESS NEWS
Biogen Attracts
Takeover Interest
Biotechnology giant Biogen
Inc. has drawn takeover interest from drug companies including Merck & Co. and Allergan PLC, raising the possibility
of another huge deal in the
health-care industry.
By Dana Mattioli,
Jonathan D. Rockoff
and Dana Cimilluca
A Ford dealerships showroom in Illinois last year. Fords U.S. sales declined 3% in July compared with a year earlier.
VW Faces Ban on
Sales in South Korea
BY IN-SOO NAM
SEOULSouth
Korea
banned the sale of almost all
Volkswagen AG cars and
handed down heavy fines, one
of the severest punishments
the German auto maker has
faced globally over its deepening emissions scandal.
Korea is a relatively small
market for Volkswagen, but
authorities have pursued the
company aggressively since it
admitted last year to having
falsified U.S. emissions tests
on some diesel-powered cars.
They have accused Volkswagen of falsifying emissions
documents and manipulating
noise reports so vehicles
would be certified roadworthy
in Korea, and recently raided
company offices and indicted a
senior executive on charges of
submitting manipulated emissions datamaking South Korea the first country to indict
a VW executive in connection
with the scandal.
Several other executives
have been summoned for
questioning. Various government agencies have also indicated they would file criminal
charges against the auto
maker.
The Ministry of Environment on Tuesday revoked the
certification of 80 model variants sold in the country by
Volkswagen, its premium Audi
brand and its elite Bentley
tinue to grow.
At an industry conference
in Northern Michigan Tuesday,
GM Chief Economist Mustafa
Mohatarem said he is maintaining his view that 2016 will
set another record, meaning
sales will land north of 17.5
million for the year. Although
retail demand is soft, he says
fleet sales are still tracking
below historic trends and
could run higher if state or
municipal budgets loosen up.
Michael Robinet, an IHS
Automotive analyst, predicted
continued sales momentum in
2017, but his forecast comes
with a catch. He said sales
gains will need to be fueled by
robust sales incentives and
cheap credit. If those factors
collapse, demand will hit a rut.
Low gasoline prices are also
fueling the rally. A spike in
gasoline prices would also
leave car shoppers with less
money in their pockets, which
could lead to purchase deferrals or a flight to used cars.
Julys results follow the sober view Ford executives gave
last week when reporting second-quarter earnings, a tone
Bumpy Road
Volkswagen sales have slowed drastically in South Korea since its
emissions scandal but remain buoyant globally.
Number of vehicles sold
4,000
100%
3,000
50
2,000
1,000
50
100
2015
16
2015
16
Europe
Asia Pacic
North America
1H 2015*
South America
1H 2016
44%
45%
42%
41%
World-wide
World-wide
4.7
4.8
million
9.5%
million
5.6%
9%
4%
REBECCA COOK/REUTERS
BY JOHN D. STOLL
AND CHRISTINA ROGERS
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
MANAGEMENT
$7,000
BY LAUREN WEBER
More companies are overhauling their pay practices as
they grapple with trends like
performance-based compensation and try to stay ahead of
concerns about gender pay
gaps. They also recognize that
employees have more information than ever as they swap
details with colleagues and access websites like that of recruiting firm Glassdoor Inc.
In this environment, the ad
hoc process of making salary
decisions based on factors like
a candidates competing offer
or the budget handed down by
a distant finance team is looking less tenable to a lot of human-resources executives.
Arizona
Boston/LA/Seattle
Companies Likely
To Hold Back on
2017 Pay Raises
Sunnyvale/San Francisco
Database Engineer
Engineering Other
Software Dev V
Software Dev X
Software Dev IV
Software Dev IX
Software Dev II
Software Dev I
Software Dev VI
*Not a complete list of job titles
$101,000
$133,000
$165,000
Source: GoDaddy
2016 Dow Jones & Co., Inc. All rights reserved. 6DJ3890
Iowa
PAY
CORNER OFFICE
MANAGEMENT MATTERS
WORKAROUNDS
Salary Inequality
Poses a Concern
In Boardrooms, Too Corporate managers
Matt Toeller joined GoDaddy last year to help set pay policies.
using outside pay data until
shortly before Mr. Toeller
joined. The firm now pegs pay
at the 70th percentile of the
market rate for engineering
roles, he said. To better match
GoDaddys workforce to the
broader benchmarking data,
his team spent months mapping out job descriptions,
which they used to create levels for each titlesuch as software development engineer
to reflect the range of workers
skills and responsibilities.
Each level has a pay grade
with a wide salary range. For
example, a Software Developer
III in GoDaddys Sunnyvale, Calif., office could earn $101,000
to $165,000 a year, depending
on factors like performance
and depth of skills. Under the
new system, some 6% of GoDaddys workforce got automatic raises to bring them into
the correct pay grade.
Before the structure, pay
was really fast and loose,
said Leslie Phillips, a senior
communications manager who
started at GoDaddy in 2006 in
tech support. Now it makes a
lot more sense, and I wonder
why we didnt do it sooner.
She got a raise of about 15% at
her last performance review,
the result of a promotion, a
merit increase and an adjustment into the new pay scales.
TEAM LEADER
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
BY MAX COLCHESTER
LONDONU.K. bank shares
took a hit Tuesday after a
regulator proposed to extend
until 2019 a program in
which lenders must compensate customers who were improperly sold payment-protection insurance.
The Financial Conduct Authority said lenders that had
sold customers payment-protection insurance they didnt
need would continue to face
claims until June 2019, six
months later than the regulator previously proposed.
So far banks have forked
over 24.5 billion ($32.3 billion) to compensate people
who bought the insurance
product, which was sold to
cover mortgage, auto and
other loan payments if the
borrower lost a job or fell ill.
Many people didnt need the
insurance.
U.K. bank shares declined
following Tuesdays news, because of concerns that banks
will have to put aside hundreds of millions of pounds to
cover extra compensation.
Lloyds Banking Group PLC fell
1%, Barclays PLC dropped
3.6%, and Royal Bank of Scotland Group PLC slipped 1.7%.
For years banks have lobbied regulators to stop the
payouts. Last year, the FCA
said the deadline might be at
the end of 2018, but this has
now been pushed back. The
FCA on Tuesday confirmed it
will put in place a time bar
but will continue to consult
on how it should be applied.
A final decision is expected
in October.
Putting a deadline on PPI
complaints will bring the issue
to an orderly conclusion, said
Andrew Bailey, chief executive
of the FCA.
Lloyds said it was disappointed that a program to inform people of the claim-filing
deadline wont come into force
until 2017, adding that its
guidance for provisions remained unchanged.
Banks will also have to pay
extra compensation for not being transparent about the
commissions involved in product sales. A U.K. supreme
court ruled in November 2014
that a loan company unfairly
sold a PPI policy because it
didnt disclose the large commission it and a broker received. A rule on how that
compensation will be paid out
will be outlined by the end of
this year.
Beijing
Takes Aim
At Fund
Industry
Real Stake
British families have taken up debt in order to put most of their
wealth in real estate.
London U.K.
Houses are
getting more
10
expensive...
8
How much of a
rst-time buyers
6
income, in
4
multiples, it
2
takes to buy
0
a home
1987 90
...driving
households to
run decits...
Net acquisition
of nancial
assets as a
share of GDP,
seasonally
adjusted
10
2000
10
9%
6
3
0
3
6
1987 90
...and
accumulate
more debt.
Debt as a share
of GDP
2000
BY SHEN HONG
100 %
80
FCA Plan
Hits U.K.
Banking
Shares
60
40
20
0
1987
90
2000
10
Sources: Nationwide Building Society (house prices-to-income), U.K. Ofce for National
Statistics (household decit), Bank for International Settlements (debt)
RALPH ORLOWSKI/REUTERS
BY EYK HENNING
Stephan Engels
and net profit were roughly in
line with analysts estimates.
The bank also gave up its
goal of keeping full-year net
profit stable at slightly above
1 billion, a move analysts had
expected since Commerzbank
executives began calling the
target increasingly ambitious in recent months.
The interest-rate environment and persistent customer
cautionwill continue to
weigh on income. We therefore expect that operating
earnings and consolidated net
profit for the full year 2016
will be lower than the previous year, Commerzbank said.
Stress-test results published on Friday showed the
bank remains one of the weakest lenders in Europe, despite
progress it has made in selling
unwanted assets.
40%
Surfeit of Funds
Number of registered private
fund-management rms in China
25,000
20,000
15,000
10,000
5,000
0
4Q 1Q 2Q 3Q 4Q 1Q
2014 15
16
Source: Asset Management Association of China
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
PARAMOUNT PICTURES
BY BRADLEY HOPE
Legal Notice
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
MARKETS DIGEST
Nikkei 225 Index
Year-to-date
16391.45 t 244.32, or 1.47%
t 13.88% 335.47 t 4.39, or 1.29%
52-wk high/low20808.69 14952.02 High, low, open and close for each
High, low, open and close for each
trading day of the past three months. All-time high 38915.87 12/29/89 trading day of the past three months.
Year-to-date
t 8.29%
52-wk high/low 403.93 303.58
All-time high
414.06 4/15/15
Last
Year ago
17500
65-day moving average
UP
Close
350
2130
16500
340
2090
16000
330
2050
15500
320
2010
Open
Close
2170
17000
Session high
DOWN
Session open
360
Session low
310
1970
May
June
300
July
May
World
Close
% chg
Low
2387.15 17.87
1672.15 10.13
876.11 6.44
0.74
0.60
0.73
2033.03
1471.88
691.21
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
Sao Paulo Bovespa
S&P/TSX Comp
IPC All-Share
Santiago IPSA
519.07 4.04
56191.54 564.22
14469.65 113.09
46304.81 502.43
3183.29 26.30
0.77
0.99
0.78
1.07
0.82
433.38
37046.07
11531.22
39256.58
2730.24
U.S.
DJIA
Nasdaq Composite
S&P 500
CBOE Volatility
18295.62 108.89
5139.81 44.39
2155.32 15.52
13.59
1.15
0.59
0.86
0.71
15370.33
4209.76
1810.10
10.88
9.24
335.47 4.39
2815.83 43.30
2180.98 28.15
3365.38 61.00
4327.99 81.18
10144.34 186.18
551.64 17.96
27167.07 301.81
1447.26 14.26
16098.37 456.46
438.61 6.36
47031.70 810.32
903.04 19.49
8277.30 236.10
488.02 6.45
8011.24 115.96
52532.76 594.04
75803.92 907.76
6645.40 48.55
1.29
1.51
1.27
1.78
1.84
1.80
3.15
1.10
0.98
2.76
1.43
303.58
2556.96
1929.73
3117.61
3892.46
8699.29
420.82
20452.90
1378.80
15017.42
378.53
41747.01
607.14
7579.80
432.78
7425.05
45975.78
68230.47
5499.51
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
1446.01 4.30
5540.50 46.90
2971.28 17.89
22129.14
27981.71 21.41
16391.45 244.32
2856.67 35.85
2019.03 10.58
9068.76 11.95
0.30
0.84
EMEA
DJ Asia-Pacific TSM
S&P/ASX 200
Shanghai Composite
Hang Seng
S&P BSE Sensex
Nikkei Stock Avg
Straits Times
Kospi
Weighted
June
1.75
2.11
2.77
1.30
1.43
1.12
1.18
0.73
1188.42
4765.30
2655.66
18319.58
22951.83
14952.02
2532.70
1829.81
7410.34
0.61
Closed
0.08
1.47
1.24
0.52
0.13
52-Week Range
Close
Coupon
Commodities
20%
s
10
Euro
0
10
2015
2016
US$vs,
YTDchg
Tue
in US$ per US$ (%)
Country/currency
Americas
Argentina peso-a
0.0675 14.8230 14.6
Brazil real
0.3076 3.2512 17.9
Canada dollar
0.7640 1.3090 5.4
Chile peso
0.001526 655.10 7.6
Colombia peso
0.0003227 3099.05 2.4
Ecuador US dollar-f
1
1 unch
Mexico peso-a
0.0529 18.9074 9.9
Peru sol
0.2986 3.3485 1.9
Uruguay peso-e
0.0336 29.800 0.4
Venezuela bolivar 0.100150
9.99 58.4
Asia-Pacific
0.7606 1.3148 4.2
0.1506 6.6380 2.2
Australia dollar
China yuan
Key Rates
Country/currency
Hong Kong dollar
India rupee
Indonesia rupiah
Japan yen
Kazakhstan tenge
Macau pataca
Malaysia ringgit-c
New Zealand dollar
Pakistan rupee
Philippines peso
Singapore dollar
South Korea won
Sri Lanka rupee
Taiwan dollar
Thailand baht
Cur Stock
0.49390%
0.76760
1.12720
1.44260
0.19075%
0.30110
0.48585
0.80520
Euro Libor
One month
Three month
Six month
One year
-0.36857%
-0.30429
-0.19271
-0.06571
-0.08929%
-0.01714
0.05343
0.16429
-0.37100%
-0.29800
-0.18400
-0.04800
-0.07900%
-0.02300
0.04800
0.16400
-0.04914%
-0.01379
0.01086
0.09671
Offer
0.05714%
0.09500
0.13143
0.24686
Bid
0.5500%
0.8500
1.1500
1.4500
Latest
0.4500%
0.7500
1.0500
1.3500
52 wks ago
3.50%
2.70
1.475
5.00
3.25%
2.70
1.475
5.00
0.00%
0.50
0.50
1.75
1.00
0.25
2.25
0.05%
0.50
0.50
2.00
0.75
0.00
2.00
0.26%
n.a.
Eurodollars
One month
Three month
Six month
One year
Prime rates
U.S.
Canada
Japan
Hong Kong
Policy rates
ECB
Britain
Switzerland
Australia
U.S. discount
Fed-funds target
Call money
7.7610 0.1
66.6783 0.7
13092 5.4
100.88 16.1
354.10 4.5
7.9950 0.1
4.0524 5.8
1.3829 5.5
104.750 0.1
47.020 0.3
1.3384 5.6
1109.76 5.6
145.85 1.1
31.602 4.0
34.760 3.5
52 wks ago
Libor
One month
Three month
Six month
One year
Yen Libor
One month
Three month
Six month
One year
0.1289
0.0150
0.0000764
0.009913
0.002824
0.1251
0.2468
0.7231
0.0095
0.0213
0.7472
0.0009011
0.0068564
0.03164
0.02877
2.6512
0.1133
0.2624
3.3172
2.5976
0.2746
0.2666
0.0714
0.3772 0.02
8.8300 12.8
3.8106 2.1
0.3015 0.7
0.3850 0.01
3.641 0.04
3.7505 0.1
14.0035 9.5
1.437
1.830
-0.566
0.213
-0.521
0.202
-0.593
-0.033
-0.067
1.221
-0.172
-0.068
-0.569
0.069
0.387
2.917
-0.169
1.071
-0.655
0.125
0.198
0.811
0.679
1.538
75.9
29.2
-124.5
-132.5
-120.0
-133.6
-127.1
-157.1
-74.6
-31.7
-85.1
-160.6
-124.8
-146.9
-29.2
137.9
-84.8
-46.7
-133.3
-141.3
-48.1
-72.7
...
...
CBOT
CBOT
CBOT
CME
ICE-US
ICE-US
ICE-US
ICE-US
ICE-EU
COMEX
COMEX
COMEX
LME
LME
LME
LME
LME
LME
TCE
97.9
52.1
-116.5
-138.8
-114.7
-128.1
-124.2
-156.4
-71.7
-30.6
-92.6
-169.7
-120.8
-150.3
-37.6
155.8
-80.2
-29.9
-127.0
-119.8
-40.1
-57.8
...
...
77.8
30.2
-126.2
-137.6
-122.2
-139.6
-130.1
-162.4
-75.0
-34.9
-92.0
-166.2
-127.0
-152.5
-30.5
136.7
-86.7
-50.2
-135.7
-146.7
-51.2
-79.3
...
...
122.4
58.7
-84.2
-123.5
-84.1
-124.1
-89.3
-157.3
-57.0
-40.9
-65.5
-177.4
-87.1
-135.9
-29.8
19.8
-54.7
-33.5
-106.3
-144.2
8.0
-28.1
...
...
Previous
Yield
Month ago
1.465
1.828
-0.575
0.150
-0.535
0.130
-0.614
-0.098
-0.063
1.177
-0.233
-0.136
-0.584
0.001
0.382
2.893
-0.180
1.024
-0.670
0.059
0.175
0.733
0.687
1.526
1.576
1.964
-0.568
0.055
-0.550
0.162
-0.645
-0.121
-0.120
1.137
-0.328
-0.254
-0.611
-0.060
0.222
3.001
-0.205
1.144
-0.673
0.245
0.196
0.865
0.597
1.443
Sym
Last
AIAGroup
AstellasPharma
AustNZBk
BHP
BankofChina
CKHutchison
CNOOC
Canon
CentralJapanRwy
ChinaConstructnBk
ChinaLifeInsurance
ChinaMobile
CmwlthBkAust
EastJapanRailway
Fanuc
Hitachi
Hon Hai Precisn
HondaMotor
HyundaiMtr
Ind&Comml
JapanTobacco
KDDI
Mitsubishi
MitsubishiUFJFin
Mitsui
Mizuho Fin
NTTDoCoMo
NatAustBnk
NipponStl&SmtmoMtl
NipponTeleg
NissanMotor
NomuraHldgs
Panasonic
PetroChina
PingAnInsofChina
RelianceIndsGDR
RioTinto
SamsungElectronics
Seven&I Hldgs
SoftBankGroup
Sumitomo Mitsui
SunHngKaiPrp
TaiwanSemiMfg
1299
4503
ANZ
BHP
3988
0001
0883
7751
9022
0939
2628
0941
CBA
9020
6954
6501
2317
7267
005380
1398
2914
9433
8058
8306
8031
8411
9437
NAB
5401
9432
7201
8604
6752
0857
2318
RIGD
RIO
005930
3382
9984
8316
0016
2330
49.00
1740.00
25.73
19.24
3.26
91.75
9.26
2862.00
18340
5.35
17.78
97.95
77.59
9159.00
17150
458.70
88.50
2759.50
134000
4.47
4053.00
3157.00
1751.50
512.30
1183.00
165.80
2810.00
26.59
1918.00
4927.00
1000.50
435.30
940.10
5.31
37.05
30.20
49.41
1548000
4267.00
6060.00
3290.00
110.60
176.00
1.98
-2.16
-0.19
-2.19
2.19
1.05
-0.22
-1.72
-3.22
2.88
0.57
2.40
-0.50
-1.91
-2.03
-2.32
-0.34
-2.90
-1.11
1.82
0.15
-1.80
-0.79
-5.93
-1.70
-3.04
0.57
-0.41
-1.08
-1.99
-1.96
-1.74
-0.06
0.95
2.35
0.33
-0.58
-1.28
-0.47
2.19
-4.19
-0.36
-0.56
1.889
2.771
-0.178
0.949
-0.176
0.943
-0.228
0.611
0.094
1.775
0.009
0.410
-0.207
0.825
0.366
2.382
0.117
1.849
-0.399
0.742
0.744
1.903
0.665
2.184
334.25
953.00
401.75
114.750
2,884
141.20
19.04
73.94
1828.00
unch.
-8.50
-4.25
0.150
-42
-2.25
0.23
-0.44
10.00
2.2085
1371.90
20.685
1,653.50
18,000.00
4,924.00
1,843.00
2,276.00
10,775.00
154.20
0.0090
12.30
0.185
25.50
230.00
59.00
45.00
59.00
265.00
0.10
2339.00
39.56
1.2592
1.3093
2.736
41.85
363.75
12.00
-0.50
0.0013
0.0057
-0.035
-0.29
-0.25
unch.
-0.88%
-1.05
0.13%
-1.44
-1.57
1.22
-0.59
0.55
0.41
0.90
0.90
1.57
1.29
1.21
2.50
2.66
2.52
0.06
0.52
-1.25
0.10
0.44
-1.26
-0.69
-0.07
Year
low
449.00
1,186.25
533.75
125.500
3,241
154.80
21.22
75.00
1,866.00
329.00
868.00
399.25
106.950
2,745
117.15
12.92
54.19
1,400.00
2.3295
1,384.40
21.225
1,695.50
18,250.00
5,070.50
1,909.00
2,276.00
10,775.00
159.30
1.9690
1,066.00
13.930
1,451.50
13,225.00
4,320.50
1,598.00
1,467.00
7,750.00
153.00
2,672.00
52.73
1.5985
1.6344
2.9900
53.56
474.50
2,172.00
32.85
0.9858
1.1171
2.0090
31.92
291.50
Cross rates
Australia
USD
1.3148
GBP
1.7522
CHF
1.3628
JPY
0.0130
HKD
0.1694
EUR
1.4758
CDN
1.0043
AUD
...
Canada
1.3090
1.7442
1.3569
0.0130
0.1686
Euro
0.8908
1.1871
0.9235
0.0088
0.1148
1.4693
...
0.9956
...
0.6806
Hong Kong
7.7610
10.3408
8.0450
0.0769
0.6777
...
8.7122
5.9296
5.9038
76.7200
100.8800
134.4200
104.5700
...
12.9980
113.2500
77.0600
Switzerland
0.9647
1.2856
...
0.0096
0.1243
1.0829
0.7370
0.7338
U.K.
0.7505
...
0.7778
0.0074
0.0967
0.8425
0.5734
0.5709
U.S.
...
1.3325
1.0366
0.0099
0.1289
1.1226
0.7640
0.7606
Japan
% YTD%
Chg Chg
Asia Titans
HK$
AU$
AU$
HK$
HK$
HK$
HK$
HK$
HK$
AU$
TW$
KRW
HK$
AU$
HK$
HK$
$
AU$
KRW
HK$
TW$
Year ago
Middle East/Africa
Bahrain dinar
Egypt pound-a
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
Latest
Euribor
One month
Three month
Six month
One year
US$vs,
YTDchg
Tue
in US$ per US$ (%)
Bulgaria lev
0.5739 1.7426 3.2
Croatia kuna
0.1498 6.675 4.8
Euro zone euro
1.1226 0.8908 3.3
Czech Rep. koruna-b 0.0415 24.089 3.2
Denmark krone
0.1509 6.6266 3.6
Hungary forint
0.003604 277.50 4.5
Iceland krona
0.008266 120.98 7.1
Norway krone
0.1186 8.4336 4.6
Poland zloty
0.2596 3.8524 1.8
Russia ruble-d
0.01499 66.732 7.2
Sweden krona
0.1175 8.5101 0.8
Switzerland franc
1.0366 0.9647 3.7
Turkey lira
0.3342 2.9919 2.5
Ukraine hryvnia
0.0403 24.8125 3.4
U.K. pound
1.3325 0.7505 10.6
July
Copper ($/lb.)
Gold ($/troy oz.)
Silver ($/troy oz.)
Aluminum ($/mt)*
Tin ($/mt)*
Copper ($/mt)*
Lead ($/mt)*
Zinc ($/mt)*
Nickel ($/mt)*
Rubber (Y.01/ton)
Europe
Yen
Yield
Corn (cents/bu.)
Soybeans (cents/bu.)
Wheat (cents/bu.)
Live cattle (cents/lb.)
Cocoa ($/ton)
Coffee (cents/lb.)
Sugar (cents/lb.)
Cotton (cents/lb.)
Robusta coffee ($/ton)
1481.22 4.0
5697.90 4.6
3993.67 16.0
24552.47 1.0
28298.13 7.1
20808.69 13.9
3196.66 0.9
2052.77 2.9
9080.71 8.8
US$vs,
YTDchg
Tue
in US$ per US$ (%)
Country/currency
June
EXCHANGE LEGEND: CBOT: Chicago Board of Trade; CME: Chicago Mercantile Exchange; ICE-US: ICE Futures U.S.; MDEX: Bursa Malaysia
Derivatives Berhad; TCE: Tokyo Commodity Exchange; COMEX: Commodity Exchange; LME: London Metal Exchange;
NYMEX: New York Mercantile Exchange; ICE-EU: ICE Futures Europe. *Data as of 8/1/2016
Year
One-Day Change
Commodity
Exchange Last price
Net
Percentage
high
Yen, euro vs. dollar; dollar vs. major U.S. trading partners
Country/
Maturity, in years
3.250
Australia 2
4.250
10
1.250
Belgium 2
1.000
10
1.000
France 2
0.500
10
0.000
Germany 2
0.000
10
0.250
Italy 2
1.600
10
0.100
Japan 2
0.100
10
4.000 Netherlands 2
0.500
10
4.450
Portugal 2
2.875
10
0.250
Spain 2
1.950
10
4.250
Sweden 2
1.000
10
1.250
U.K. 2
2.000
10
0.750
U.S. 2
1.625
10
Currencies
May
Latest, month-ago and year-ago yields and spreads over or under U.S. Treasurys on benchmark two-year
and 10-year government bonds around the world. Data as of 3 p.m. ET
18622.01 5.0
5199.13 2.6
2178.29 5.4
53.29 25.4
403.93 8.3
3503.19 9.2
2515.09 9.0
3853.21 9.1
5217.80 6.7
11669.86 5.6
731.18 12.6
28100.59 13.6
1725.04 5.3
23992.48 24.8
504.00 0.7
53694.88 1.2
975.21 19.3
11330.00 13.3
539.07 3.4
9537.90 9.1
54760.91 3.6
86931.34 5.7
6780.05 6.5
Apr.
524.80 6.5
57729.31 29.6
14622.35 11.2
47785.29 7.7
3243.62 8.1
YTD
% chg
2547.27 2.2
1956.39 2.6
1044.05 10.3
High
1930
July
5.15
0.49
-7.88
7.73
-5.78
-12.12
14.75
-22.12
-15.09
0.75
-29.16
11.94
-9.28
-20.01
-18.64
-33.67
9.53
-29.42
-10.07
-4.49
-9.35
0.10
-13.63
-32.33
-18.16
-31.91
13.12
-11.95
-20.61
1.88
-21.81
-35.90
-24.22
4.32
-13.64
-1.31
10.51
22.86
-23.12
-1.29
-28.57
17.97
23.08
Cur Stock
Sym
Last
HK$
AU$
AU$
AU$
TakedaPharm
TencentHoldings
TokioMarineHldg
ToyotaMtr
Wesfarmers
WestpacBanking
Woolworths
4502
0700
8766
7203
WES
WBC
WOW
4778.00
184.50
3878.00
5696.00
43.01
30.83
23.63
CHF
CHF
CHF
CHF
CHF
DKK
ABB
AXA
AirLiquide
Allianz
Anheuser Busch
AstraZeneca
BASF
BNP Paribas
BT Group
BancoBilVizAr
BancoSantander
Barclays
Bayer
BP
BritishAmTob
FinRichemont
CreditSuisse
Daimler
Deutsche Bank
DeutscheTelekom
Diageo
ENI
GlaxoSmithKline
HSBC Hldgs
INGGroep
ImperialBrands
IntesaSanpaolo
LVMHMoetHennessy
LloydsBankingGroup
LOreal
NationalGrid
Nestle
Novartis
NovoNordiskB
Prudential
ReckittBenckiser
Stoxx 50
ABBN
CS
AI
ALV
ABI
AZN
BAS
BNP
BT.A
BBVA
SAN
BARC
BAYN
BP.
BATS
CFR
CSGN
DAI
DBK
DTE
DGE
ENI
GSK
HSBA
INGA
IMB
ISP
MC
LLOY
OR
NG.
NESN
NOVN
NOVO-B
PRU
RB.
20.39
17.39
91.76
126.70
111.10
5002.00
68.97
41.80
403.60
4.79
3.51
146.00
94.20
413.90
4820.50
56.40
10.46
58.91
11.23
15.18
2145.50
13.13
1690.00
482.80
9.40
4048.00
1.83
149.50
52.73
170.25
1075.00
77.05
79.65
370.50
1312.00
7399.00
% YTD%
Chg Chg Cur Stock
RioTinto
-0.46 -21.22
-1.07 20.83 CHF RocheHldgctf
RoyDtchShell A
-2.39 -17.70
SAP
-1.74 -23.93
Sanofi
0.02
3.36
SchneiderElectric
-0.87 -8.13
Siemens
0.25 -3.55
Telefonica
Total
-1.02 13.53 CHF UBSGroup
Unilever
-3.20 -31.05
Unilever
-1.42 -11.47
VodafoneGroup
-1.09 -22.53
-1.86 -2.88 CHF ZurichInsurance
-1.26
8.35
-1.96 -2.47
AmericanExpress
-4.33 -19.96 $
Apple
-0.92 -14.44 $
Boeing
-4.87 -28.29 $
Caterpillar
-5.32 -23.01 $
$
Chevron
-3.57 -33.30
CiscoSystems
-2.23 -18.65 $
CocaCola
-1.06 16.92 $
Disney
0.46 27.83 $
$
DuPont
-4.33 -21.78
ExxonMobil
-6.19 -51.29 $
GenElec
-2.96 -24.07 $
$
GoldmanSachs
-4.83 -50.12
HomeDepot
-0.69 -8.17 $
Intel
-0.44 15.57 $
IBM
-2.09 -4.86 $
$
JPMorganChase
-0.62 23.09
$
JohnsJohns
-1.28 -9.96
McDonalds
-4.64 -7.30 $
$
Merck
1.73 12.87
$
Microsoft
-3.79 -40.77
$
NikeClB
-2.22
3.17
$
Pfizer
-0.98 -27.84
$
Procter&Gamble
...
9.63
$
3M
-1.42 14.67
$
TravelersCos
-0.84
3.35
$
UnitedTech
-0.81 -8.24
UnitedHealthGroup
$
-2.73 -7.35
$
VISAClA
-1.17 -14.30
$
Verizon
0.65 17.80
$
WalMart
Sym
Last
RIO
ROG
RDSA
SAP
SAN
SU
SIE
TEF
FP
UBSG
UNA
ULVR
VOD
ZURN
2441.50
245.40
1849.00
77.05
73.91
57.97
96.13
8.45
41.47
12.55
41.13
3532.00
226.95
228.90
DJIA
AXP
AAPL
BA
CAT
CVX
CSCO
KO
DIS
DD
XOM
GE
GS
HD
INTC
IBM
JPM
JNJ
MCD
MRK
MSFT
NKE
PFE
PG
MMM
TRV
UTX
UNH
V
VZ
WMT
63.47
104.48
131.60
81.22
99.59
30.62
43.54
95.03
68.72
87.04
31.06
156.05
137.23
34.56
160.57
63.65
124.77
117.70
58.34
56.58
54.92
36.39
86.80
178.35
117.04
106.28
143.18
78.34
54.00
73.12
% YTD%
Chg Chg
-1.79
-0.85
-2.09
-1.73
-3.09
-0.67
-0.85
-3.82
-1.50
-5.99
-0.19
-0.06
-1.30
-1.72
23.34
-11.22
21.17
5.00
-5.97
10.29
6.95
-17.44
2.50
-35.71
2.57
20.69
2.69
-11.42
-1.03 -8.74
-1.48 -0.74
-1.21 -8.98
-0.89 19.51
0.48 10.70
-0.36 12.76
0.21
1.35
-0.53 -9.56
-0.91
3.18
1.37 11.66
-0.29 -0.29
-1.35 -13.42
-1.11
3.77
-0.83
0.32
-0.55 16.68
-0.24 -3.60
-0.50 21.47
-0.26 -0.37
-0.55 10.45
...
1.98
-0.88 -12.13
-2.47 12.73
0.45
9.31
0.03 18.39
0.20
3.70
-0.62 10.63
-0.23 21.71
0.10
1.02
-0.92 16.83
-0.89 19.28
Asia Titans 50
Last: 138.46 t 0.50, or 0.36%
YTD s 1.6%
High
Close
Low
6
May
140
135
130
125
120
115
50day
moving average
t
13
20
27
3
10
June
17
24
1
8
July
15
22
29
Stoxx 50
Last: 2815.83 t 43.30, or 1.51%
YTD t 9.2%
3000
2900
2800
2700
2600
2500
6
May
13
20
27
3
10
June
17
24
1
8
July
15
22
29
P/E: 20
YTD s 5.1%
18500
18000
17500
17000
16500
6
May
13
20
27
3
10
June
17
24
1 8
July
15
22
29
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
BY EMILY NONKO
Scandals and economic upheaval have hurt demand for all types of real estate in Rio de Janeiro.
executive of South Americas
biggest construction company,
Odebrecht SA, was sentenced
to 19 years in prison for his involvement.
A division of Odebrecht is
one of three companies in a
consortiumalong with Grupo
Andrade Gutierrez and developer Carvalho Hoskenthat is
developing the Barra Olympic
Park, where many of the sporting events will take place. Executives of construction company
Andrade Gutierrez also have
been arrested in the probe.
In return for their investment in the Olympic Park, the
consortium is getting adjacent
land to develop 5,000 to 6,000
residential units as well as
commercial and retail space.
Planners consider the land to
be well placed to benefit as Rio
expands to the west.
Two members of that consortium, Odebrecht and Car-
well located with very good infrastructure, said Marcelo Pedroso, president of the Olympic
Public Authority, which is coordinating the participation of
government agencies in the
games. Even if we are in a little more difficulty in terms of
the economy, as soon as we recover, they are going to increase sales.
Planners long have dreamed
the Olympics would be a game
changer for Rio, known for its
beaches and natural beauty.
City officials often have cited
the 1992 Games in Barcelona as
the spark for a big increase in
tourism and other economic
development in that city.
Rios ambitions stretched beyond the citys Barra da Tijuca
neighborhood, where the Olympic Park and village are located.
Enormous investment has been
pumped into transportation infrastructure projects through-
In Distressed Deals
BY ROBYN A. FRIEDMAN
BY PETER GRANT
TRUMP HOTELS
ADVERTISEMENT
Notable Commercial
Properties.
Commercial Listings
Every Wednesday.
List Your Property Today.
Call +44 (0) 207 572 2123
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
Bad Timing
For a Wager
On BMW
BMW faces mounting
costs just as the car market
is weakening. Best not to bet
on a rebound in its shares
however cheap they look.
The Bavarian car maker
published record secondquarter profit Tuesday, but
its shares fell 2.2%. After
stellar numbers from Daimler, investors were underwhelmed by its rivals more
modest beat. The bigger picture is that BMW is having to
spend heavily to compete
with Tesla and Google, just
as the consumer buying cycle
hits an inflection point.
Staff numbers at the end
of June were 3.4% higher
than a year earlier, after the
company hired software developers and other digital
technicians. Last month,
BMW also signed a deal with
Mobileye and Intel to create
an open platform for autonomous vehicles.
Meanwhile, growth in the
crucial U.S. market slowed to
just 1.4% in the first half.
BMW itself sold 10% fewer
cars than in the year-ago period at slightly cheaper prices.
It expects a flat second half.
Still-booming sales in Europe and China more than
made up for lost U.S. ground.
Surprisingly, management
also reported no weakness in
U.K. sales after Junes Brexit
vote. But Chinas volatility
and Europes tendency to follow U.S. trends make investors understandably nervous.
BMWs shares trade at just
eight times forward earnings.
Eventually, new ownership
models for all-autonomous
cars may free manufacturers
from the whims of consumers. That hope looks closer to
reality at BMW than at other
European car makers. But it
is still well beyond the horizon of even the most longterm stock investors.
Stephen Wilmot
WSJ.com/Heard
Backing Up
10-year Japanese government
bond yield
0.4%
0.2
0
0.2
0.4
J
M J
Email: heard@wsj.com
OVERHEARD
RBS has a 2017 EU deadline to sell its Williams & Glyn unit.
Finance
Watch
INTESA SANPAOLO
Bad-Debt Provisions
Cut Into Earnings
Italian lender Intesa Sanpaolo SpA said its second-quarter net profit dropped slightly,
mainly due to higher loan-loss
provisions that were only par-
Advertisement
BY PAUL VIGNA
Barry Silbert
hyped bitcoin alternative rests
on how quickly this schism is
resolved. The value of the nonforked version, Ethereum Classic, has been extremely volatile, falling by nearly 90% one
day and rising more than
200% another. It closed last
week around $1.64, and on
Tuesday was up 49% at $3.19.
By comparison, the forked
Ethereum traded at about
$9.61 on Tuesday afternoon,
down 16%, with an overall
market value of about $800
billion, according to the website Crypto-Currency Market
Capitalizations.
A more telling statistic in
this new civil war: The volume
of ethereum classic traded on
Monday was higher than the
volume of ethereum traded,
even if the hash rate, a measure of the computing power
on the network, is far higher
for ethereum than for classic.
It is still a thin market, but the
trading volume is a sign that
for now, at least, there is a
market for classic.
One bitcoin investor, Barry
NAV
GF AT LB DATE CR
NAV
%RETURN
YTD 12-MO 2-YR
5.8
-3.3
-8.4