The wall street journal june 14 2016

For the next Please see CLUB page A6 By Arian Flores, Cameron McWhirter and Laura Stevens Campo-GOFFSTOWN, N.H.—DonaldTrump suggested Monday thatPresident Barack Obama may be sympathetic

* * * * * TUESDAY, JUNE 14, 2016 ~ VOL CCLXVII NO 138 WSJ.com HHHH $ 3.00

Terror in Orlando A6-8

U.S News A2-3

Weather B7

World News A9-11

s Copyright 2016 Dow Jones &

Company All Rights Reserved

>

What’s

News

 The suspect in the

Or-lando massacre is an

exam-ple of a threat that has vexed

the FBI: terrorists living in

the U.S whose

self-radical-ization is hard to spot The

agency defended its

han-dling of two previous probes

involving the man A1, A6-8

 Trump suggested that

Obama may be sympathetic

to radical Islamists that he

said inspired the gunman He

also attacked the president

and Clinton for what he said

are lax immigration laws A1

 Clinton denounced

“in-flammatory anti-Muslim

rhetoric” and pushed for

an assault-weapon ban A4

 The Supreme Court

struck down Puerto Rico’s

effort to restructure its

public utility debts A2

 EgyptAir investigators’

findings suggest that the

plane wasn’t brought down

by an abrupt blast A9

 NATO’s head said

mili-tary spending by Europe and

Canada is set to rise 1.5%, or

$3 billion, this year A11

 North Korean hackers

stole wing designs for a U.S

jet fighter and photos of

spy-plane parts, Seoul said A10

 Uganda plans to

with-draw troops involved in

op-erations against the Lord’s

Resistance Army rebels A9

 Shanghai police blamed

an airport blast on a worker

with gambling debts who

had warned of suicide A10

Microsoft is buying

LinkedIn for $26.2

bil-lion, its biggest deal ever,

as CEO Nadella seeks to

re-vitalize the company A1, B1

 Global stock markets

slumped, the Japanese yen

surged and bond yields slid

on the possibility that the

U.K might leave the EU A1

 Private investment in

China has slowed, a report

said, contributing to a 3.2%

drop in Shanghai shares A10

 U.S stocks fell following

steep declines in Europe

and Asia The Dow shed

132.86 points to 17732.48 C4

 Libya’s sovereign-wealth

fund alleged in court that

Goldman took advantage of

its lack of sophistication to

draw it into losing trades C1

 U.S firms that cut their

tax bills after moving

off-shore, including Medtronic

and Aon, still enjoy perks

from the government B1

 The Supreme Court made

it easier for patent holders

to win more financial

dam-ages from copycats B1

 PwC is in talks with

regula-tors to resolve a dispute on

whether the firm is too close to

some mutual-fund clients C1

 Apple unveiled changes

to its operating systems

and opened its services to

outside developers B4

 An aviation panel

reached a preliminary

ac-cord on proposed

Then backs off as eco-first builders propose yurts

B Y L UKAS I . A LPERT

SPUR, Texas—Nearly twoyears ago, this town of cottonfarmers and cattle ranchers inthe rolling plains of West Texasdeclared itself the tiny housecapital of America

The hope was to reverse along population decline by lur-ing devotees of the growingmovement of eco-conscious, do-it-yourself builders who like tolive in very small houses Townofficials thought their officialproclamation and elimination ofnearly all building restrictionswould attract the kind of ador-able abodes featured on televi-sion shows like HGTV’s “TinyHouse Hunters.”

Some newcomers had otherideas In the town of about1,000 residents located 75 mileseast of Lubbock, talk soon be-gan to surface about plans tobuild yurts, straw dwellings andeven underground dugouts re-sembling something out of

Please see TINY page A12

Microsoft Corp snapped upLinkedIn Corp for $26.2 billion

in the largest acquisition in itshistory, betting the professionalsocial network can rev up thetech titan’s software offeringsdespite recent struggles by bothcompanies

The deal is Chief ExecutiveSatya Nadella’s latest effort torevitalize Microsoft, which wasviewed not long ago as left be-hind by shifts in technology Mr.Nadella hopes the deal will opennew horizons for Microsoft’s Of-fice suite as well as LinkedIn,both of which have saturatedtheir markets, and generally bol-ster Microsoft’s revenue andcompetitive position

Mr Nadella said today’s work

is split between tools workersuse to get their jobs done, such

as Microsoft’s Office programs,and professional networks thatconnect workers The deal, hesaid, aims to weave those twopieces together

“It’s really the coming gether of the professional cloudand the professional network,”

to-Mr Nadella said in an interview

on Monday

For instance, connecting fice directly to LinkedIn couldhelp attendees of meetings learnmore about one another directlyfrom invitations in their calen-dars Sales representatives usingMicrosoft’s Dynamics softwarefor managing customer relation-ships could pick up useful tidbits

Of-of background on potential tomers from LinkedIn data.Microsoft also sees opportu-nities in Lynda.com, a channelfor training videos that LinkedInbought for $1.5 billion last year.Microsoft will be able to offerLynda’s videos inside its ownsoftware, such as Excel spread-sheets

cus-Mr Nadella also talked aboutgiving its Cortana digital assis-tant access to data fromLinkedIn

As for LinkedIn, the deal fers hope to renew deceleratinggrowth as well as an exit for

of-Please see DEAL page A12

B Y J AY G REENE

Microsoft Places a Big Bet on LinkedIn

 Deal aims to refresh LinkedIn’s profile B1

FBI Director James Comey,disclosing new details of OmarMateen’s background Monday,said Mr Mateen took trips toSaudi Arabia in 2011 and the fol-lowing year, though Saudi andU.S investigations found noth-

ing suspicious

Mr Mateen is an example ofprecisely the threat that hasvexed the agency in recentyears: terrorists living in theU.S whose self-radicalization ishard to spot Despite the actionsthat led the FBI to scrutinize

Mr Mateen, investigators foundnothing that compelled them toact

“This is exactly what we’vebeen talking about,’’ said Mr

Comey Mr Mateen was

radical-ized, he said, at least in part onthe internet and had no appar-ent interactions with overseasterrorist groups, links that canalert law enforcement to radi-calization

Mr Comey defended theFBI’s handling of two previousprobes involving the 29-year-old Orlando-nightclub terrorsuspect, saying there are no in-dications agents missed cluesthat could have prevented the

Please see FBI page A7

The gunman authorities saymassacred 49 people at an Or-lando nightclub had proclaimed

he wanted to be a martyr,

trav-B Y D EVLIN B ARRETT

A ND D AN F ROSCH

Gunman Dropped Hints

Of Terror Attack to Come

The threat that has consumed the agency:

tum-Monday’s biggest losseswere in Asia, where majorstock indexes dropped 3.2% inShanghai and 3.5% in Japan Inthe U.S., the S&P 500 dropped0.8% and the yield on the 10-year U.S Treasury noteslumped to 1.616%, its lowestsince December 2012

The decline continued earlyTuesday, with Japan’s Nikkei

Please see BREXIT page A12

The growing possibility thatthe U.K might leave the Euro-pean Union shook marketsglobally on Monday, reflectingbroad concern that next week’sreferendum could slow downthe world’s economy

Polls suggest that tum is growing for a vote onJune 23 for Britain to leave the

momen-EU, spurring concerns about aprolonged stretch of uncer-tainty that could damage eco-nomic growth and triggerlosses in financial markets

Stocks slumped, Japan’s yen

en-said

Minutes earlier, a man tified by authorities as OmarMateen had exchanged gunfirewith the uniformed police offi-cer stationed at the club togain entrance “All the musicstopped immediately,” said Mr

iden-McNeal, who was standingnear the main bar “The gun-shots just kept going, kept go-ing…people starting to fall onthe ground, people running.”

More police arrived andtraded shots with Mr Mateen,forcing him to halt his deadlyrampage and retreat into one

of the nightclub’s bathrooms

There he held four or five tages, Orlando Police ChiefJohn Mina said Another 15 to

hos-20 people were hiding in other bathroom By then, doz-ens of dead and injured cov-ered the floor of the gaynightclub

an-In the hours that followed,authorities tried negotiating

with the gunman, who ened the hostages and hinted

threat-of carrying explosives Theyhad to weigh the risk to offi-cers and captives in a forcedentry against the needs of theinjured and the risk of givingthe attacker more time to kill

“If you have a case where aperson is ready to die, wants todie, then it makes an enormouschallenge for negotiations to beeffective,” said Gary Noesner,the former chief negotiator forthe Federal Bureau of Investi-gation, now retired

Dozens of clubgoers, ing many injured, were brought

includ-to safety while the gunmanwas holed up in the bathroom,

Mr Mina said

That was around the time

Mr Mateen made his 911 calls

to declare his allegiance to lamic State

Is-Mr McNeal, 28 years old,said he got to Pulse aroundmidnight with two friends,passing, as usual, an officerposted out front For the next

Please see CLUB page A6

By Arian Flores, Cameron McWhirter and Laura Stevens

Campo-GOFFSTOWN, N.H.—DonaldTrump suggested Monday thatPresident Barack Obama may

be sympathetic to radical mists he said inspired the gun-man in this weekend’s Orlando,Fla., nightclub attack, alleging

Isla-in a television Isla-interview thepresident “doesn’t get it or hegets it better than anybody un-derstands.”

In an address in New shire Monday afternoon, Mr

Hamp-Trump used a broad brush toattack both the president andpresumptive Democratic presi-dential nominee Hillary Clintonfor what he claims are lax im-migration laws that contrib-uted to the Florida attack thatkilled 49 people

“The bottom line is that the

Please see TRUMP page A4

B Y B ETH R EINHARD

A ND R EID J . E PSTEIN

Trump Goes

On Offensive, Links Obama

To Extremists

 Vote on U.K exit from EU splits London elite C1

Apple Lets Outsiders In

UPDATES: Apple revealed changes to its four operating systems, and emphasized a new willingness to allow non-Apple developers

to add features to its most widely used services, including Siri B4

to the floor,

I lost him’

Cory Richards, whose boyfriend, Enrique Rios Jr., was killed

in the attack

TERROR IN ORLANDOPAGES A6-8

A2 | Tuesday, June 14, 2016 THE WALL STREET JOURNAL.

THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935)

(Western Edition ISSN 0193-2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y 10036

Published daily except Sundays and general legal holidays.

Periodicals postage paid at New York, N.Y., and other mailing offices.

POSTMASTER: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020.

All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are available from the Advertising Services Department, Dow Jones & Co Inc., 1155 Avenue of the Americas, New York, N.Y 10036 The Journal reserves the right not to accept an advertiser’s order Only publication

of an advertisement shall constitute final acceptance of the advertiser’s order.

Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com

NEED ASSISTANCE WITH YOUR SUBSCRIPTION?

CONTACT CUSTOMER SUPPORT.

By web: customercenter.wsj.com

By email: wsjsupport@wsj.com

By phone: 1-800-JOURNAL (1-800-568-7625)

Or by live chat at wsj.com/livechat

At least 1,191 people have

been killed in Islamic affiliated or inspired attacksoutside Syria and Iraq sincethe beginning of 2015 Insome editions Monday, achart accompanying the con-tinuation of a Page One arti-cle about the Orlando shoot-ings omitted attacks claimed

State-by the group in Belgium onMarch 26, 2016, and Istanbul

on March 19, 2016 It also correctly included an attack

in-in Bamako, Mali A correctversion of the chart can beseen at WSJ.com/Corrections

Etihad Airways owns a 49% stake in Alitalia SpA,

while a group of Italian holders has a 51% stakethrough the holding companyCAI A Business & Tech article

share-Monday about changes at talia incorrectly said Etihad isthe controlling shareholder ofthe Italian carrier

Ali-Walgreen Co has formally ended an alliance with Thera- nos Inc In some editions

Monday, a Page One What’sNews summary incorrectlysaid the drugstore operatorhad ended a reliance withTheranos

The name of Jaybridge Robotics Inc was incorrectly

given as Jaybird Robotics in aBusiness & Tech article Mon-day about the battle for auto-industry talent

China Life Insurance Co.

previously invested in Uber Technologies Inc.’s global

business A Business News ticle Monday about China Life

ar-investing in Didi Chuxing Technology Co incorrectly

said the insurer had invested

in Uber’s China affiliate,UberChina

The first name of Calvin Printer, a spokesman for Dr Reddy’s Laboratories, was

omitted in a Business Watchitem Monday about the In-dian drugmaker agreeing tobuy eight drugs from Israel’s

Teva Pharmaceutical tries Ltd.

Indus-This summer will mark the

100th anniversary of mailboat service in Lake Geneva,Wis The caption of a photoaccompanying a U.S News ar-ticle Saturday about the mailboat’s couriers incorrectlysaid the image showed the100th annual tryouts forthose jobs

Readers can alert The Wall Street Journal to any errors in news articles by

emailing wsjcontact@wsj.com or by calling 888-410-2667.

The court’s 5-2 decisionsaid Congress, in prior legisla-tion on municipal bankrupt-cies, didn’t give Puerto Ricothe ability to enact its ownbankruptcy process The rulingeliminated the slim chance theterritory could write its ownbankruptcy plan, leaving Con-gress as the only plausible way

to avoid a disorderly turing of Puerto Rico debt

restruc-The island is about $70 lion in debt and has missedbond payments

bil-The U.S House passed a partisan bill last week to cre-ate a debt-restructuring pro-cess for the territory, whichwould be overseen by a seven-member federal board No fed-eral funds would be spent onthe plan, which awaits action

bi-in the Senate President BarackObama supports the bill

A spokesman for the PuertoRico government had no im-mediate comment

“We are grateful for the preme Court’s careful consid-eration of the case, and arepleased that we now can putthis litigation behind us,” saidMatthew D McGill, who repre-sents bondholders Franklin Re-sources Inc and OppenheimerHoldings Inc as well as an in-vestment adviser, Blue Moun-tain Capital Management LLC

Su-The bondholders hold proximately $1.56 billion inbonds issued by the PuertoRico Electric Power Authority

ap-The case highlights the land’s unusual status withinthe U.S federal structure

is-Congress excluded the tory from authorization it pro-vided U.S municipalities to re-structure their debts underchapter 9 of the federal bank-ruptcy code Puerto Rico inter-preted its omission as implic-itly providing it with theauthority to address the issue

terri-on its own, and the territoriallegislature enacted a law al-lowing several public agenciesand utilities to discharge most

of their debts despite tors’ objections

credi-Justice Clarence Thomas,writing for the majority, saidPuerto Rico misread the bank-

ruptcy code, which he said nied Puerto Rico the power toauthorize its local govern-ments to take advantage ofdebt-relief provisions available

de-to states “The plain text of theBankruptcy Code begins andends our analysis,” he wrote,joined by Chief Justice JohnRoberts and Justices AnthonyKennedy, Stephen Breyer andElena Kagan

Justices Sonia Sotomayorand Ruth Bader Ginsburg dis-sented, citing other code pro-visions “The government andpeople of Puerto Rico shouldnot have to wait for possiblecongressional action to avertthe consequences of unreliableelectricity, transportation, andsafe water,” Justice Sotomayorwrote in the dissent

Justice Samuel Alito cused himself from the case

Astronomers say they havediscovered the largest planet todate that orbits two suns.The newfound world, aboutthe size of the planet Jupiter, is3,700 light-years from Earth Alight-year is nearly 6 trillionmiles

It was detected by a team led

by NASA and San Diego StateUniversity using the planet-hunt-ing Kepler telescope The discov-ery was announced Monday dur-ing a meeting of the AmericanAstronomical Society in San Di-ego

Although the planet is in thehabitable zone—where waterthat is essential to life can beliquid—it isn’t a good candidate

to support life because it is sobig, scientists said

—Associated Press

OBITUARY

Creator of Beehive Hairdo Dies at 98

Margaret Vinci Heldt, who came a hairstyling celebrity aftershe created the beehive hairdo in

be-1960, has died at age 98.The beehive—a tall, conicalhairstyle—became a phenome-non in the 1960s and evolvedinto a style worn for decades asHollywood starlets walked redcarpets

Ms Heldt created it at the quest of a magazine that pub-lished images of the style in Feb-ruary 1960 and named it for itsresemblance to the shape of atraditional hive

THE WALL STREET JOURNAL. * * Tuesday, June 14, 2016 | A3

U.S NEWS

com-ment Officials have previouslysaid the formula doesn’t dis-criminate against small insur-ers

The program is designed tospread risk by collectingmoney from companies withhealthier populations and dis-tributing it to those with older,sicker populations

Co-ops have said the rent formula is unfair becausethey have small market shareand scant data on enrollees’

cur-health status from prior years,

so it may appear that theircustomers are healthier thanthey really are

“We’re doing this because itwill be a challenge to us Wethink it’s outrageous,” said Dr

Peter Beilenson, chief tive of Evergreen Health, in aninterview “It also impedes ourability to grow We need capi-tal to grow.”

execu-CMS held a forum in March

to hear from insurers, co-opsand others in the industryabout their concerns with theformula The Obama adminis-tration plans to revise the risk-adjustment formula, makingsome changes that would gointo effect in 2017, with othersproposed for 2018 The newformula could include consum-ers’ prescription-drug use as asource of data on their healthstatus in the formula

Maryland’s health

coopera-tive filed a lawsuit Monday

seeking to block the federal

government from requiring it

to pay more than $22 million

in fees for a program

de-signed to cover insurance

com-pany shortfalls

The lawsuit by Evergreen

Health Cooperative Inc is the

latest twist in the saga of

health insurance co-ops set up

under the Affordable Care Act

to compete against larger,

es-tablished insurers

The co-ops were supposed

to help keep premiums down

by injecting competition into

the industry Instead, 13 of 23

startups that launched

suc-cessfully have since collapsed,

forcing more than 700,000

consumers to seek new

insur-ance A number of co-op

offi-cials have said they were hurt

by the federal program

be-cause of a formula it used to

spread out risk, which they say

hurts them while benefiting

large, already established

in-surance companies

The Maryland co-op, in its

lawsuit filed in U.S District

Court in Maryland, says the

formula—known as “risk

ad-justment”—is arbitrary and

unlawful The Centers for

Medicare and Medicaid

Ser-vices, which oversees the

pro-B Y S TEPHANIE A RMOUR

Health Co-op Sues

To Block Federal Fees

Richard Bedlack has treated

more than 2,000 patients with

ALS, the neurological

condi-tion known as Lou Gehrig’s

disease Almost without

excep-tion, his patients get worse

over time and eventually die

Now, Dr Bedlack, head of

Duke University’s ALS clinic, is

focusing on a different kind of

patient: someone who seems

to be getting better

ALS, or amyotrophic lateral

sclerosis, progressively robs

people of the ability to move

their muscles and is fatal,

usu-ally within two to five years

But in a small number of

cases—Dr Bedlack says he has

verified 23 so far—patients

re-port unexpectedly regaining

lost motor functions for at

least a year Some attribute

their improvement to

supple-ments or experimental

thera-pies, but acknowledge they

can’t be certain why they

started to improve

Dr Bedlack believes that

studying these so-called “ALS

reversals” and trying to

deter-mine what, if anything,

sepa-rates these individuals from

the overwhelming majority of

others may lead to new

under-standing of the disease and,

potentially, new therapies

The effort to study people

who seem to defy medical

odds isn’t limited to ALS The

Resilience Project, started in

2014, is examining genomes of

healthy individuals, trying to

find people who aren’t sick

de-spite having gene mutations

that should cause disease

For over a decade, a

re-search consortium has

fol-lowed “elite controllers,”

peo-ple infected with HIV who

somehow naturally control the

virus without anti-retroviral

medications and don’t develop

AIDS Studies of patients by

the International HIV

Control-lers Consortium and other

groups helped identify a

ge-netic signature associated with

controllers, and experimental

therapies are being tested

“At the beginning, HIV was

this incredible black box,” says

Bruce Walker, director of the

Ragon Institute of MGH, MIT

and Harvard, which operates

the HIV study “The difficult

thing is, how do you turn other

people into elite controllers?”

Dr Bedlack says he would

like to do the same for ALS

Earlier this year,

research-ers, including Dr Bedlack,

pub-lished a paper in Neurology

based on a database of more

than 10,000 patients stripped

of any identifiable information

who are taking part in clinical

trials for ALS treatments

The researchers found a

small subset—less than 1% ofpatients in the database—theyconsider ALS reversals, whohad significant improvementand regained lost function for

a year or more

Even if the numbers of tients are small, “I think theyare worth studying,” saysMerit Cudkowicz, director ofthe ALS clinic at Massachu-setts General Hospital in Bos-ton and one of the authors ofthe Neurology paper

pa-Dr Bedlack says a number

of theories may explain ALSreversals Perhaps, he says,these patients didn’t reallyhave ALS but an unknownmimic syndrome They might

have genetic traits that helpresist the disease An environ-mental factor that helped drivethe disease could be removed,

he says, or an unusual ment the patient tried worked

treat-To study the phenomenon,

Dr Bedlack is running two grams For his Study of ALSReversals, he is collecting veri-fied cases of reversals When

pro-he pro-hears of a case, Dr Bedlackgets in touch with the patient

He asks to review medical cords and speak to the doctor

re-This summer he will start lecting blood samples of veri-fied cases to be used for wholegenome sequencing and test-ing for any unusual antibodies

col-One participant, Kim Cherry

of Boise, Idaho, was diagnosedwith ALS in 2011 His low pointwas in 2012, but his functionhas since sharply improved

The 68-year-old says he tried avariety of approaches, includ-ing treatment in a hyperbaricoxygen tank and a gluten-freediet He thinks his reversalmay be due to a combination

of factors “ALS is a puzzle,”

says his wife, Kay Cherry

In cases where an unusualtreatment seems to be in-volved, Dr Bedlack’s secondprogram—Replication of ALSReversals—is trying to repro-duce the reversal using the pa-tient’s regimen The first suchtrial, based on Michael McDuff,

a 64-year-old former ist from Westport, Mass., hasenrolled 16 patients and is ex-pected to enroll 34 more Par-ticipants in the trial will re-

PatientsLikeMe, a companythat aggregates and analyzeshealth data

Mr McDuff says he first ticed weakness in his arms in

no-2010 and was diagnosed withALS By spring 2013, hecouldn’t dress or feed himself

At the suggestion of a friend,

he started taking a supplementcalled lunasin—a proteinclaimed to have potentialhealth benefits

After three months, Mr

McDuff and his wife noticedimprovements Today, Mr

McDuff can swallow again andhas gained weight He is thefirst to say he isn’t cured Butnow, “I have a better quality oflife,” he says

B Y A MY D OCKSER M ARCUS

ALS Patients, Defying Odds

Researchers study

those who seem to

show improvement for

clues and treatments

So-called ALS reversals include Michael McDuff, above, who couldn’t dress or feed himself in 2013 but now can swallow again and has gained weight, and Kim Cherry, below, whose function has dramatically improved since his low point in 2012.

Bomber jacket $1530 Polo $400 Pants $400.

Briefcase $1600 Camo-soled drivers $495.

Fifth Avenue and 50th Street 212.753.4000 FREE GROUND SHIPPING ONLINE AND IN STORES EVERY DAY EVERY ORDER.

SALVATORE FERRAGAMO

A4 | Tuesday, June 14, 2016 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X * * THE WALL STREET JOURNAL.

armed officer at a publicevent where there previouslywas none is a signal of thethreat Now, as a result of Or-lando, it is likely that addedsecurity at the door of a nightclub will be added to the list

The fears this stepped-upsecurity generates are neverfar from people’s minds Last

month, when The Wall StreetJournal/NBC News poll askedAmericans to rank the toppriorities for the federal gov-ernment, 26% listed job secu-rity and economic growth asthe top priority, but terrorismand national security was justbehind at 21%

Those two concerns

actu-Political Consequences of Attack Run High

In one sense, the cost of

Islamist-inspired violence

in America actually isn’t

all that high In nearly 15

years since the 9/11 attacks,

95 Americans have been killed

night club over the weekend

By contrast, more than 35,000

died in fatal car accidents last

year

Yet any loss of human life

is traumatic, of course The

economic and psychological

costs are high as well And

the political consequences are

astronomical

Like traffic deaths, the

costs of Islamist terror have

become woven into American

life Orlando will make the

weaving just that much

tighter, even though it isn’t

clear, and probably never will

be, how much of this tragedywas inspired by Islamistgroups and how much by anti-gay hatred The difference thistime is that, thanks to the un-folding presidential campaign,Americans will get to decidewhat kind of approach theywant to confront this problem:

the tough guy or the cool head

Though it is difficult toquantify, there is little doubtthat the undercurrent of con-cern about Islamist terror hashelped contribute to the na-tional mood of anxiety thatforms the backdrop for thispresidential campaign Thebroad theme that seems to runthrough the feelings of manyAmericans right now is loss ofcontrol—inability to controltheir economic fate, inability

to control the level of fairness

in society, inability to controlthe country’s borders, inability

to control world affairs

This is where an ongoingfear of terror attacks fits in

Americans are smart enough

to know the actual risk theyface of being the victim of aterror attack inspired by Is-lamic State or other jihadistgroups is small Yet the re-minders that the risk is thereare constant and growing Ev-ery trip through airport secu-rity, every pass through acheckpoint to go to a baseballgame, every glimpse of an

ally are related, because there

is an actual economic cost toboth terrorism and fear ofterrorism That cost includeseconomic activity slowed orinterrupted by terror risksand the rising cost of security

to prevent terror attacks culating the precise cost is aninexact science, but one or-ganization, the Institute forEconomics and Peace, has es-timated that in 2014 theglobal economic costs of ter-rorism hit $52.9 billion

Cal-That all leads to the cal consequences, which theOrlando shooting figures toput into sharper relief as well

politi-The simple partisan impact offears of jihadists is mixed

When voters were asked in theApril WSJ/NBC News surveywhich party would do a betterjob of dealing with ISIS in Iraqand Syria, Republicans had a19-point advantage: 43% saidthe GOP would do the betterjob, while 24% said Democrats

But the choice between

the presidential tenders of those twoparties is considerably morecomplex In that same survey,37% gave likely Democraticpresidential nominee HillaryClinton good ratings for herability to handle an interna-tional crisis, while just 20%

con-gave presumptive GOP

nomi-nee Donald Trump good ings A whopping 64% gave

rat-Mr Trump poor ratings.That’s a reflection thatthese two candidates, morethan any other presidentialcontenders in the era of ter-rorism, present starkly differ-ent profiles on this subject

Mr Trump offers no ular expertise on Islamicthreats or their foreign roots,but offers a completely new at-titude On Sunday, he blewpast nuances, including exactlyhow strong the links to Islamwere in the Orlando attack,and moved straight to the ac-tion phase: We’re not toughenough; we need to respond

partic-He takes the primal screammany Americans have bottled

up and puts it on Twitter.Mrs Clinton, by contrast,offers the cool head Ameri-cans have traditionally wanted

in a commander in chief Sheoffered empathy for the vic-tims and the hatred gays feel,

a reminder that the U.S needs

“allies and partners” to winthe long war against Islamicextremism, and, in her spokes-woman’s words, “a compre-hensive plan to combat ISIS athome and abroad.”

It’s a “comprehensive plan”candidate versus a “bomb thehell out of ISIS” one Electionsare about choices, and this isdefinitely one

CAPITAL JOURNAL

GERALD F SEIB

What should the top priority for the federal government be?

Job creationand economicgrowth

Nationalsecurity andterrorism

The deficit andgovernmentspending

Healthcare

Terrorism, Through a Political Prism

American voters see terrorism and national security as one of thetop priorities for the federal government to address But Republicansfar more than Democrats rank it a top issue Older voters more thanyounger ones also put a high priority on addressing national security

THE WALL STREET JOURNAL.

Source: WSJ/NBC News telephone poll of 1,000 registered voters conducted May 15–19;

full sample margin of error: +/- 3.1 pct pts.

All voters Democrats Independents Republicans White African-American Hispanic Ages 18–34 Ages 35–49 Ages 50–64 Ages 65 and over

26%

35 19 20 24 39 26 26 31 26 22

21%

11 26 33 23 19 18 15 17 28 26

16%

11 12 21 18 12 11 18 18 13 14

15%

24 13 6 13 20 17 18 11 15 13

country by including grants from any country “with

immi-a proven history of terrorismagainst the U.S., Europe or ourallies.”

The dueling foreign-policyspeeches, on a day when bothcandidates initially promised

to avoid the typical campaigntrail sniping, showed votersjust how differently each can-didate would respond to thekind of terror threat posed bythe lone gunman who killed atleast 49 people at a populargay nightclub in Orlando overthe weekend

Mrs Clinton avoided thekind of harsh rhetoric that hasdefined the early back-and-forth between the presumptiveDemocratic nominee and herlikely GOP rival But she didtake some implicit swipes at

Mr Trump and his angry, tisan response to the Orlandoshootings in a gay nightclub by

par-a Muslim Americpar-an who sworeallegiance to ISIS Amongother things, he has called onPresident Barack Obama to re-sign and Mrs Clinton to quit

CLEVELAND—Democrat

Hil-lary Clinton, in her first

ex-tended response to the

massa-cre in Orlando, denounced

“inflammatory anti-Muslim

rhetoric” and pushed for

stricter gun laws, including the

reinstatement of a ban on the

sort of assault weapons used

by the Florida gunman

“If the FBI is watching you

for suspected terrorists links,

you shouldn’t be able to just

go buy a gun,” she said here in

a reference to two prior

anti-terrorism investigations of

Omar Mateen, the shooter who

was killed Sunday by police

Those probes were eventually

closed without action taken

Her remarks Monday

of-fered a sharp contrast to the

reaction of her likely

Republi-can rival, Donald Trump He

countered in Manchester, N.H.,

by blaming the weekend

at-tack, in part, on lax

immigra-tion laws, and appeared to

broaden his pledge to ban

Muslims from entering the

interna-“This president has, timeand time again, sought to ad-vance our interests, tostrengthen our alliances and,where necessary, order ourmilitary to take action to pro-tect the American people Andthe president has done that in

a way that is smart, that istough and has made our coun-try safer,” he said

Clinton campaign managerJohn Podesta also lashed out,saying Mr Trump’s speech “of-fered some disturbing insightsinto the dangers of a TrumpWhite House Nothing in hisrambling remarks came close

to resembling a real strategyfor fighting terrorists andkeeping our people safe.”

The sharp exchange gests that Mr Trump will takeaim during the campaign at

sug-both Mrs Clinton and Mr

Obama, who has said he wouldwork hard to help get herelected

It also coincides with hiscampaign’s attempts to resetitself after spending a week de-fending—and revising—his ac-cusation that a U.S.-born judge

of Mexican descent couldn’tfairly oversee a lawsuit againstthe presumptive GOP nomineebecause of his proposal tobuild a wall on the southernborder

Mr Trump’s team alsobanned the Washington Postfrom covering its events onMonday after charging that itwrote a headline on his Fox

deemed unfair His campaigncalled it “a perfect example ofinaccurate coverage” by thenewspaper

Washington Post EditorMarty Baron said in a state-

the presidential race

Mrs Clinton denounced flammatory anti-Muslim rheto-ric” and politics of divisionsaying, “We are not a land ofwinners and losers.” She con-trasted the current politicalclimate with the bipartisan re-sponse in the days followingthe Sept 11, 2001, attacks,when she was a U.S senatorfrom New York, while NewYork City’s mayor, the state’sgovernor and the U.S presi-dent were all Republicans

“in-“We did not attack eachother; we worked together,”

she said “It is time to get back

to the spirit of those days.”

Mrs Clinton promised that,

as president, she would beef

up counterterrorism measuresand make a top priority of

“identifying and stopping lonewolves”—domestic terroristsoperating on their own, oftenwith inspiration from ISIS

She called for more sources for intelligence gather-ing and law enforcement athome, and working with allies

re-to continue military attacks onISIS abroad She angrily called

on the governments of Saudi

Arabia, Qatar and other U.S

allies in the Middle East tostop allowing their citizens tofinance extremists

But her most impassioned—

and well received—responsewas to make a link betweenstopping domestic terrorismand imposing new restrictions

on guns She renewed her call

to revive a federal ban on called assault weapons

so-In his speech, Mr Trumpattacked Mrs Clinton’s push toreinstate the long-lapsed ban

Mrs Clinton spoke as the

2016 campaign has been

shaken by the Orlando ings, turning the focus to na-tional-security issues, gun con-trol and questions about whichcandidate is better suited to becommander-in-chief and tocombat terrorism at home andabroad

shoot-Both Mrs Clinton and Mr.Trump reworked their cam-paign schedules to address theOrlando massacre

The adjustment on bothsides was a reminder of howabruptly the course of thepresidential campaign may yet

be altered by world events

ment that the move “is nothingless than a repudiation of therole of a free and independentpress.” He said the Post willcontinue to cover Mr Trump

“as it has all along—honorably,honestly, accurately, energeti-cally, and unflinchingly.”

In addressing the Florida sault in New Hampshire, Mr.Trump appeared to broadenhis pledge to ban Muslimsfrom entering the country byincluding immigrants from anycountry “with a proven history

as-of terrorism against the U.S.,Europe or our allies.”

Mr Obama and Mrs ton—and some leading Repub-licans—have criticized such aban, saying it is counterpro-ductive and feeds the recruit-ment pitches of terroristgroups In an Ohio speech, theformer secretary of state calledfor more outreach to Islamiccommunities and denounced

Clin-“inflammatory anti-Muslimrhetoric.”

Mr Trump said as president

he would suspend immigrationfrom any countries or regionsthat could present a threat tothe U.S And he warned that ifAmericans “don’t get tough”about the country’s immigra-tion laws “we’re not going tohave our country anymore.”

Mr Trump, who has beenwidely accused of stoking eth-nic and racial divisionsthroughout his campaign, casthis proposal to bar Muslim im-migrants as an inclusive, All-American effort to protectwomen and people targeted fortheir sexual orientation

—Felicia Schwartz contributed to this article.

only reason the killer was inAmerica in the first place wasbecause we allowed his family

to come here,” Mr Trump saidduring his a speech here, refer-ring to the New York-bornshooter, Omar Mateen, whoseparents emigrated to the U.S

from Afghanistan

The presumptive Republicannominee’s remarks on FoxNews earlier in the day markthe latest escalation in hisyearslong campaign to paint

Mr Obama as unqualified foroffice, either by birth or by vir-tue of his leadership Mr

Trump spent much of Mr

Obama’s first term in office leging the president wasn’t anatural-born U.S citizen de-spite Mr Obama’s official Ha-waiian birth certificate

al-“Look, we’re led by a manthat either is not tough, notsmart, or he’s got somethingelse in mind,” Mr Trump said

on Fox News “And the thing else in mind—you know,people can’t believe it Peoplecannot, they cannot believethat President Obama is actingthe way he acts and can’t evenmention the words ‘radical Is-lamic terrorism.’ There’s some-thing going on It’s inconceiv-able There’s something goingon.”

some-His remarks drew a rebukefrom the White House Presssecretary Josh Earnest said Mr

Obama’s record on fighting lamic State “speaks for itself”

Is-and “includes a lot of dead

ter-Continued from Page One

625 Madison Avenue, 212.752.3131, madison.shop@canali.it

25 Broad Street, 212.842.8700, newyork.shop@canali.it

Bal Harbour Shops, 305.868.3456, balharbour.shop@canali.it

Shops at Merrick Park, 305.446.1499, miami.shop@canali.it

THE WALL STREET JOURNAL. Tuesday, June 14, 2016 | A5

How does foreign policy affect trading?

We have just the man to ask.

©2016 Charles Schwab & Co Inc All rights reserved Member SIPC (0516-FSPF)

Know

A6 | Tuesday, June 14, 2016 * * * * * THE WALL STREET JOURNAL.

TERROR IN ORLANDO

Basketball Star’s Frantic Call After Being Shot: ‘Come Get Me, Daddy!’

The father of Akyra Monet Murray, an 18-year-old victim of the Pulse nightclub shooting, said his daughter called him screaming from the venue after she was shot.

“She was screaming, ‘I’m shot! I’m bleeding! I’m losing a lot of blood! Come get me, Daddy!’ ” Albert Murray said in

an interview Monday “We were racing to get her but we never made it.”

Ms Murray was a recent

graduate of West Catholic paratory High School in Phila- delphia, where she was ranked third in her class and a 1,000- point scorer on the basketball team, the school said.

Pre-The Murray family had rived in Orlando on Friday for a vacation and to celebrate Akyra’s graduation, Mr Murray said She went to the club, which he said admits people 18 and up, with her cousin and a friend, both of whom were in-

ar-jured but survived.

He said Akyra had been posting pictures on Snapchat while having fun at the club, and his wife had been following along He said the call from his daughter came around 2 a.m.

He heard yelling in the ground, and Akyra kept saying she was bleeding The cousin, who was shot in the thigh,

back-“was texting my wife saying that someone was shooting and come now.”

He and his wife sped to the club, about 35 minutes away “I can’t even begin to tell you how I felt,” he said.

So many police surrounded the club the family couldn’t get close They went to three or four hospitals but couldn’t find their daughter They learned Monday morning she had died.

“I’ve cried so much I can’t even cry anymore,” Mr Murray said.

—Jennifer Levitz and Jim Oberman

Remembering the Shooting Victims

Among those who died were a bouncer at the club and a theme-park ‘wizard’

Mr McGill took off his shirtand tied it to help stop thebleeding He helped the mantoward police, who had by thencordoned off the club

A police officer directed Mr

McGill and the injured man to

Mr McGill said he lay in theback of a squad car and heldthe man in his arms to keephim stable as they drove theshort distance to the hospital

“Everything was goingpretty much in slow motion, sowhat seemed like five minutesseemed like forever and for-ever,” Mr McGill said

An ambulance from OrlandoFire Department’s rescue unit 7was the first to arrive at theclub, said Ron Glass, a depart-ment lieutenant The ambu-lance crew was leaving anearby hospital when a policeofficer directed them to Pulse

They were later joined by morethan 70 emergency responderswho tended the injured

Clubgoers barricaded in one

of the bathrooms sent textsand photographs to law-en-forcement officials “thatshowed us some of what washappening,” said OrangeCounty Sheriff Jerry Demings

His deputies headed to theclub, armed with Glock 45-cali-ber handguns and other weap-ons, after police issued a “sig-nal 43.” calling for lawenforcement help “That is theultimate call for backup,” saidthe sheriff who also went tothe scene

team, set off an explosive onthe club’s back wall, as well asseveral diversionary devices inthe building, Mr Demings said.The explosion didn’t pene-trate the wall completely, soofficers rammed the buildingwith a Bearcat armored vehi-cle, which broke open a largehole Mr Mina said

People still trapped in theclub then ran or were helped tosafety as the shooter came out

of the other bathroom and gan firing, Mr Demings said.Police and sheriff’s deputiesreturned fire and killed Mr.Mateen, the sheriff said “Wewere able to rescue dozens anddozens of people out of thathole,” Mr Mina said

be-Responding to questionsabout the hourslong delay be-fore rushing the gunman, Mr.Mina said Monday that officers

“saved many, many, manylives.”

Afterward, medical crewsentered the club Cellphonesrang as the emergency re-sponders looked for wounded,

Mr Glass said Helped by lice, they carried out dozens ofinjured people, Mr Mina said.The cellphones of victimsinside and outside the clubcontinued to ring Sunday asrepresentatives of the FBI andthe medical examiner’s officemade a final count of the dead

po-“Those that responded to itwill remember that for the rest

of their lives,” Mr Glass said

“That’s why we’re working toget the counseling going for re-sponders so they have some-one to talk to and get some ofthis off their chest.”

—Tripp Mickle contributed to this article.

Mr McNeal sent a text to afriend who was still missing: “Ilove you.”

At about 2:40 a.m., Mr Neal heard back: “Omg I loveyou too,” the text said Theman had been hiding in a bath-room stall for disabled peoplealong with about a dozen oth-ers The friend later said hehad pried the toilet away fromthe wall and squeezed behind

Mc-it to protect himself

Police believed Mr Mateen

was hiding in a bathroom withhostages while a group of club-goers hid in another bathroom

Talks between crisis ators and Mr Mateen yieldedlittle “We were doing most ofthe asking,” said Mr Mina, thepolice chief There were grow-ing concerns that Mr Mateenhad explosives, possibly abomb vest

negoti-Around 5 a.m., “there was alot of conversation in the com-mand post” that resulted in a

consensus that they shouldbreach the building, said Mr

Demings, the sheriff

“We wanted to get them outbefore he would continue hiskilling spree,” he said

“Based on information that

we received from the suspectand from the hostages andpeople inside,” Mr Mina said

“We believed further loss oflife was imminent.”

Police tactical officers, aided

by a county hazardous device

Patio Restroom

Bar

Pulse nightclub How the Attacks Unfolded

Entrance

Ent

Accounts from police and city officials reconstruct the attack

on Pulse nightclub Sunday

Sources: Orlando Police Department; City of Orlando THE WALL STREET JOURNAL.

on the otherside of therestroom wall

Wall where policeused armored vehicle

to create holes

Around 2:00 a.m.

Mr Mateenexchanges firewith an off-dutyuniformed policeofficer workingsecurity

Later, moreofficers arrive andenter the building,exchanginggunfire with Mr

Mateen, whoretreats to arestroom

Police enter thebuilding andremove ‘dozensand dozens’ ofinjured anduninjured people,according toOrlando PoliceChief John Mina

2:28 a.m.The shooter speakswith 911 dispatcher,pledges allegiance toIslamic State andprays in foreignlanguage Police begincommunicating with

Mr Mateen

Around 5:00 a.m.

Police attempt to breach the backwall with an explosive device butare unsuccessful Using anarmored vehicle, they knock a hole

in the wall leading to the restroomadjacent to where Mr Mateen isholed up Hostages are able to exitthe building through the hole inthe wall

Mr Mateen is killed by police

in a gunfight

Stage

Bar

Stage Main dance floor

Bar

Bar

two hours, he drank and

danced during the nightclub’s

weekly Latin Night

Joshua McGill, age 26,

ar-rived about 11:45 p.m He and a

friend had come to see their

fa-vorite bartender “The night

was great, super authentic

La-tino music,” he said They were

dancing near the bar by the

pa-tio exit, he said, “no drama,

ev-eryone was having a good

time.”

At last call, around 1:45

a.m., Mr McGill and his friends

started to pay their tab “Not

10 minutes later we all of a

sudden hear three loud bangs

I’d never heard a gunshot

be-fore in person,” he said The

group ducked out the patio

exit, climbed the patio fence,

and he hid in the parking lot

Mr McGill saw a man

stum-bling about, covered in blood

“He clearly had two gunshot

wounds,” he said He later

found a third wound in the

man’s back

Continued from Page One

CLUB

Portraits of dozens of

the 49 victims of Sunday’s

massacre at a gay nightclub

in Orlando began to emerge

on Monday, as friends and

family members tried to

come to grips with the

sud-den violence that took their

loved one’s lives

Many victims from across

the city’s thriving gay and

lesbian community were in

their 20s and 30s A large

number were either from

Puerto Rico or had roots

there Some were dancers,

or performers, while at least

one worked in the travel

in-dustry, another at Universal

Orlando

The range of

circum-stances that brought

peo-ple to the Pulse nightclub

only seemed to highlight

the randomness of the

vio-lence One mother was

there with her 21-year-old

son He survived, but she

didn’t

A day after the killing,

many people who weren’t at

the club were trying to

com-prehend what had happened,

while others who had been

there struggled to describe

their last moments with

friends when, at about 2

a.m on Sunday morning,

gunfire shattered the pulsing

music, transforming the club

into a bloody and chaotic

scene

By Monday afternoon, the

city of Orlando had

identi-fied nearly all of the victims,

who ranged in age from 18

to 50

The victims included at

least one employee of the

club, Kimberly “KJ” Morris,

37, a former

college-basket-ball player who started

working as a bouncer at

Pulse after moving to

Or-lando about two months ago

Ms Morris had played

basketball when she

at-tended Post University in

Waterbury, Conn After

that, she worked at a

night-club called Diva’s in

North-hampton, Mass., where she

performed in drag as

“Daddy K.” She also had a

passion for mixed martial

arts

“She called me and she

was so happy because shewas going to be working inthe gay community and bearound her people,” saidStarr Shelton, 35, Ms Mor-ris’s ex-girlfriend “I knowthat she probably died help-ing to get people out.”

Many victims were intheir early 20s, and just be-ginning to make their way inthe world

Luis S Vielma, 22, was anemergency medical servicesstudent at Seminole StateCollege, according to a state-

ment from the school Hewas among the victims whoweren’t gay, said his friendEddi Anderson

Mr Anderson said

Mr Vielma loved his jobworking at Universal Or-lando, where he dressed as aGryffindor wizard andhelped put visitors onto aride called the WizardingWorld of Harry Potter

“He really, really lovedhis job,” said Mr Anderson

“Harry Potter” creatorJ.K Rowling was moved by

Mr Vielma’s death andposted a photo of him wear-ing a sweater vest and tieand giving two thumbs up

“Luis Vielma worked onthe Harry Potter ride at Uni-versal He was 22 years old

I can’t stop crying,” the thor said in a post on Twit-ter on Monday

au-Franky Dejesus quez, at 50, was the oldestvictim Known by family andfriends as “Jimmy,” he hadbeen a professional dancerwho later worked selling

Velaz-cosmetics

Like others, Mr quez made a last-minute de-cision to go to Pulse thatnight after a friend invitedhim, said Sara Lopez, 49, ofCasselberry, Fla Ms Lopezsaid she had known Mr Ve-lazquez for about 30 years,since they met as teens at abirthday party in PuertoRico

Velaz-A talented dancer, Mr lazquez had been a member

Ve-of the touring troupe Gibaro

De Puerto Rico He traveled

to Spain, France, Germanyand other countries with thegroup, according to Ms Lo-pez “He was an amazingdancer,” she said

Antonio Davon Brownwas a captain in the U.S.Army Reserve from Mel-bourne, Fla One of threechildren, the 30-year-oldwas working on his Ph.D.,his mother Rosetta Evanssaid

“He was only a fewmonths shy of becoming Dr.Antonio Brown,” she said

He could also be silly,with a “wild sense of hu-mor,” his mother said “Hewould lighten a room justwalking in it.”

For many family bers and friends, such happymemories stood in contrast

mem-to the final harrowing ments inside the club earlySunday morning

mo-A brief video clip posted

to Snapchat by AmandaAlvear, 25, and replayed onnews sites Monday capturedthe moments when theshooting commenced

One 30-year-old man senthis mother panicked texts as

he hid in a bathroom wherethe gunman had retreated

He told his mother he lovedher “He’s coming,” he wrote

“I’m gonna die.”

Another man, 19, calledhis mother, who told him tohide in the bathroom Bothwere killed

Cory Richards brokedown crying Monday as herecalled becoming separatedfrom his boyfriend, EnriqueRios Jr., 25, who was killedduring the rampage

“When everyone fell tothe floor, I lost him,” said

Mr Richards, as he sobbedand struggled to speak

Mr Rios, from a big ily in Brooklyn, worked as ahome-health aide and went

fam-to college

The couple, from NewYork City, had been datingfor four or five months, Mr.Richards said They had ar-rived in Orlando at 2:30 p.m.Saturday, excited for theirfirst-ever vacation together

“The simple fact is that

we came over here just tohave fun,” Mr Richards said

—Jon Kamp contributed to this article.

B Y K RIS M AHER

A ND J ENNIFER L EVITZ

Antonio Davon Brown,

30, was a captain in the U.S Army Reserve from Melbourne, Fla.

Luis S.

Vielma, 22, was an emergency medical services student at Seminole State College.

Kimberly ‘KJ’

Morris, 37, started working as a bouncer at Pulse after moving to Orlando about two months ago.

Franky

‘Jimmy’

Dejesus Velazquez, at

50, was the oldest victim.

He had been a professional dancer.

Enrique Rios Jr., of Brooklyn, N.Y.,

25, was on vacation with his boyfriend He worked as a home-health aide and went

THE WALL STREET JOURNAL. * * * * Tuesday, June 14, 2016 | A7

TERROR IN ORLANDO

behavior, even when you think

of serial killers,” said LorenzoVidino, director of the pro-gram on extremism at GeorgeWashington University “Theycan do some of the most hei-nous acts and live a normallife that gives no signs.”

Investigators are lookinginto alleged violent outbursts

by Mr Mateen in 2009, whichforced his young wife to fleefor safety They also are scrub-bing back through investiga-tions they conducted into Mr

Mateen in 2013 and 2014,which ended up dissolving be-fore they could pinpoint alle-gations that he might havebeen sympathetic to terrorists

People who knew him scribed patterns of erratic andunpredictable behavior Hehad a friendly demeanor tothose who knew him casually,but people who knew him wellsaw volatile, even violent be-havior

de-On Friday night, Mr teen showed up at the IslamicCenter of Fort Pierce alone topray, said Adel Nefzi, whoserves on the mosque’s board

Ma-He was among dozens whoprayed during a special Rama-dan service that startedshortly after 10 p.m He left

promptly after the prayerended 80 minutes later

Hours later, Mr Mateen wasworking his shift as a guard atthe south entrance of PGA Vil-lage, a gated community ofhouses and a golf course inPort St Lucie

Brandon Spadaro, a dent there, recalled driving up

resi-to the gate resi-to enter at aboutnoon Saturday, but his clickerdidn’t work Mr Spadaro said

he backed up and drove ward the guest entrance, and

to-that Mr Mateen opened thegate for him

He told Mr Spadaro to takehis gate-opener to get it fixed

“ ‘Take it to the back gate,they’ll take care of it,’ ” Mr

Spadaro, 35, recalled him ing “He was totally fine.”

say-His shift ended at 3 p.m.,giving him only a few hoursbefore he would have had tobegin the two-hour drivenorthwest to Orlando

Mr Mateen was born to ghan parents in New York in

Af-1986 On Monday, Mr teen’s father, Seddique Ma-teen, said in a Persian-lan-guage Facebook post that hewas “terribly saddened” by theattack and that he had “noidea” what caused it

Ma-The family would move toFlorida when Omar was 5 Hegraduated from high school in

2005 and got his associate’sdegree in criminal justicetechnology the following yearfrom Indian River State Col-lege in Fort Pierce, according

to a spokesman

In 2007, he started working

at G4S Secure Solutions, acontractor for the PGA Villagecommunity

A man in a G4S uniformoutside a nearby Chevron sta-tion on Monday said he knew

Mr Mateen well, havingworked with him the pastthree years

The colleague described Mr

Mateen as “a regular, go-lucky type of guy.” But hesaid Mr Mateen would oftendisparage gays

happy-In 2008, Mr Mateen metSitora Yusufiy online, and theywould marry the followingyear She was from New Jer-sey, and they lived together inFlorida before he began abus-

ing her, family members said

“They were only togetherthree or four months—that’sit,” said a man identified as

Ms Yusufiy’s father, from hisEdison, N.J., home

“She was abused by him,”the man said “The cops werecalled on him.”

The Port St Lucie and FortPierce police departments andthe St Lucie County sheriff’soffice say they have no record

of significant incident reportsinvolving Mr Mateen.Efforts to reach Ms Yusufiywere unsuccessful

Mr Mateen would later marry and have a son, and hecontinued working at G4S Healso made two trips to SaudiArabia, suggesting his faithhad begun to play a moreprominent role in his life.Within the past week or so,

re-Mr Mateen bought a handgunand a rifle, in separate pur-chases, from St Lucie Shoot-ing Center, roughly 3 milesfrom his job site

“He purchased two guns gally,” Ed Henson, owner ofthe gun store, told reportersMonday, noting that the pur-chases were about a weekapart “He is familiar to mevaguely,” Mr Henson said

le-PORT ST LUCIE,

Fla.—Se-curity guard Omar Mateen

outwardly projected a life of

normalcy, working at a

pri-vate, gated golf community on

Saturday afternoon and then

driving north to Orlando

where he massacred 49 people

at a gay nightclub

New details are emerging

about Mr Mateen, the

29-year-old man that

investiga-tors say carried out the

big-gest mass shooting in U.S

history He apparently drew no

attention in his final days,

praying and working without

raising suspicion

He was also in the midst of

buying two firearms, one a

semiautomatic rifle, that he

would take with him to

Or-lando, law-enforcement

offi-cials said

He previously scouted out

nearby Walt Disney World for

a possible attack, suggesting

the plotting had been in place

for some time, according to

officials briefed on the

investi-gation

“That seems to be a normal

By Josh Mitchell,

Valerie Bauerlein

and Damian Paletta

Shooter’s Routine in Last Days Hid Clues

Seddique Mateen, the father of Omar Mateen, spoke to reporters from his Port St Lucie, Fla., home on Monday.

said the sheer volume of people

in the U.S who have expressed

some interest in radicalism but

don't pose an obvious threat

creates enormous logistical

challenges for investigators

try-ing to track them all

“There’s probably a ton of

these guys in the U.S., and we

simply don’t have the resources

to put someone on them 24/7,”

said Deputy Chief Michael

Downing, who commands the

Los Angeles Police Department’s

counterterrorism bureau

Mr Comey said FBI agents

are combing through every part

of the gunman’s life to see if

they missed anything in their

previous investigations and to

determine if there is something

they could be doing differently

“Our work is very challenging

We are looking for needles in a

nationwide haystack,” he told

reporters “But we’re also called

upon to figure out which pieces

of hay might someday become

needles.”

The FBI first investigated Mr

Mateen in 2013 following

com-plaints by co-workers at a

Flor-ida courthouse, where he

worked as a security guard, who

were alarmed by his claims he

had relatives in al Qaeda and

was a member of Hezbollah, Mr

Comey said

He also claimed to have

known friends of the Tsarnaev

brothers, who bombed the

Bos-ton Marathon in 2013

The FBI conducted

surveil-lance, searched public and

pri-vate records, and introduced

in-formants to Mr Mateen to see if

they could determine if he was

planning a crime When agents

questioned him about the

state-ments, Mr Mateen said he had

made them in anger because he

thought his co-workers were

treating him unfairly

The investigation found no

evidence to contradict his

claims, Mr Comey said At that

time, the FBI also probed Mr

Mateen’s trips to Saudi Arabia

That investigation led Mr

Mateen’s name to be placed on a

terrorist watch list, meaning the

FBI would have been notified

had Mr Mateen tried to buy a

firearm His name was removed

after the investigation closed

Months later, the FBI

ques-tioned Mr Mateen again,

be-cause his name surfaced in a

probe of an American, Moner

Mohammad Abu-Salha, who

traveled to Syria and carried out

a suicide bombing Investigators

determined the two knew each

other in passing but didn’t have

meaningful connections, Mr

Comey said “I don’t see

any-thing in reviewing our work that

our agents should have done

dif-ferently,” he said

Islamic State and similar

groups have had difficulty

carry-ing out large-scale assaults in

the U.S But a shooting in San

Bernardino, Calif., last December

Continued from Page One

was also carried out by ently self-radicalized killers, andsecurity experts fear such lone-wolf attacks will continue to un-fold That creates a particularset of challenges for law en-forcement trying to monitor po-tential attackers SeamusHughes, deputy director of theProgram on Extremism atGeorge Washington University,said the FBI must “triage” theflood of potential terror-relatedcases while balancing securitywith rights “You don’t want theFBI forward leaning and en-croaching on First Amendment-protected activities, but they’realso tasked with prevention andinvestigation,” he said “It’s adifficult balancing act.”

appar-Former agents described thedifficulty in determiningwhether someone is dangerous

Numerous variables must beconsidered, they said, includingthe prospect that someone whofiles a complaint might have anagenda

Bruce Hoffman, a terrorismexpert at Georgetown Univer-sity, said agents must weighopaque factors such as the level

of extremist influences on one and the importance of on-line statements

some-Speaking with reporters, Mr

Comey refused to mention Mr

Mateen by name, saying hedidn’t want to feed any “twistednotion of fame and glory” theshooter may have had

Law-enforcement officialssaid federal agents are scrutiniz-ing Mr Mateen’s friends andfamily to see if any aided insome way, though Mr Comeydeclined to discuss that part ofthe investigation

The officials said that whilethe investigation is in earlystages, Mr Mateen’s motives ap-pear to have been muddled, as

he was eager to proclaim loyalty

to groups on opposite sides

In a 911 call during the attack,

he declared allegiance to IslamicState and said he was acting out

of solidarity with Mr Abu-Salha,who was a bomber for the NusraFront Those two groups ac-tively oppose each other

Law-enforcement officialshave said they are also examin-ing the role antigay bias mayhave played in the attack

Nothing the FBI tions into Mr Mateen unearthedwould have prevented him frombuying guns in the days beforethe nightclub shooting, Mr

investiga-Comey said

A U.S official said tors believe Mr Mateen usedwebsites such as YouTube andFacebook to learn about terror-ist groups

investiga-Critically, investigators ven’t found any evidence yetthat Mr Mateen used onlinechat rooms or encrypted smart-phone apps to make direct con-tact with suspected militants ornetworks of militants the U.S

ha-was monitoring

The absence of “derogatoryinformation” on Mr Mateen ineither electronic or human-in-telligence channels meant law-enforcement agencies had nocause to suspect him in themonths before the attack, ac-cording to the official

“If he had communicatedmore,” the official said, “wemight have picked him up onsomething.”

—Kate O’Keeffe, Tamara Audi

and Adam Entous contributed to this article.

www.SiebelEnergyInstitute.org

The Siebel Energy Institute is a project of the Thomas and Stacey Siebel Foundation.

All research results will be shared in the public domain.

A D V I S O R Y B O A R D

With some of the greatest minds in engineering and computer science, the Siebel Energy Institute pushes the boundaries of innovation to address today’s pressing energy challenges.

A8 | Tuesday, June 14, 2016 * * * * THE WALL STREET JOURNAL.

TERROR IN ORLANDO

The attack at a gay club in Orlando, Fla., high-lights what law-enforcementofficials call security lapses atmany of the nation’s clubs andentertainment venues.With crowded dance floorsand often minimal security,nightclubs make attractive tar-gets for terrorists, expertssaid And unlike their Euro-pean counterparts, U.S night-clubs have had little experi-ence with terror-inspiredviolence and have been more

drunks or gang brawls.Authorities say Omar S Ma-teen exchanged gunfire outsidethe Pulse nightclub early Sun-day with an off-duty police of-ficer working for the bar, thencontinued shooting inside,leaving 49 dead victims Theowners of Pulse referred inqui-ries to a public-relations firm,which didn’t return calls.J.C Diaz, executive director

of the Nightlife Association, a

trade group for the nation’s50,000 clubs and bars, said se-curity varies widely, rangingfrom a club in Atlanta that ispatrolled by a guard toting asemiautomatic rifle to onesthat simply have a doorman.But even with few re-sources, he said, clubs can bet-ter prepare for an attack byteaching staff to fight backwith beer bottles, fire extin-guishers or anything else theycan grab The key, he said, is toconfront a shooter rather thanwait to be possibly shot.Islamic State-backed attacks

on bars and entertainmentvenues in Paris last November,which left 130 dead, shouldhave been a wake-up call tomanagers in the U.S that simi-lar attacks were headed here,said Robert C Smith, president

of Nightclub Security tants, a San Diego-based pro-vider of bouncer training

Consul-“If I want to be an activeshooter and I want to make aname for myself, I am going to

go to a club that is pared,” Mr Smith said.Clubs can also serve assymbols of Western lifestylesand mores Pulse, the location

unpre-of Sunday’s massacre, cateredmostly to the gay community;the shooter’s father has said

he was angered by gay men pressing affection in public

re-quires club security workers toundergo terrorism training,and even there it is only twohours’ worth Security consul-tants say the best defensestarts at the door, where door-men and other security should

be trained to intercept peoplewho seem bent on doing harm

“There will be a differentlook in the eyes—troublemak-ers who are just angry, orsomeone who will have the in-tense, determined look,” saidBrian Allen, director of Gilbert,Ariz.-based International Secu-rity Training LLC

Some venues, like tage in Washington, D.C., haveextensive front-door security

Echos-In addition to doormen, whofrisk and wave metal-detectorwands, the large club employsoff-duty police officers to stay

in front with uniforms andmarked vehicles, said CoreyPrimus, urban marketing coor-dinator for an owner of the es-tablishment “I’m not going tosay it couldn’t happen, but thelikelihood of that happening is

a lot less,” Mr Primus said.Meanwhile, mosques aroundthe country, already on highalert for retaliation since theSan Bernardino, Calif., terrorattack, are strengthening secu-rity as the community is in themidst of the Ramadan holiday.Nezar Hamze, regional op-erations director for the Coun-cil on American-Islamic Rela-tions in Florida, sent an

“action alert” to mosques inthe state Sunday advising pre-cautions including keeping thelights on, reaching out to lawenforcement and stationing adoor greeter who can call 911 ifneeded

B Y J IM C ARLTON

A ND J ON K AMP

Experts: Nightclubs Need More Security

Crowded clubs and bars can make attractive targets for terrorists.

Mateen was on a federal watchlist, but was later removed

Had he bought a gun while onthe watch list, law-enforce-ment officials would havebeen notified

The measure stalled in theSenate in an almost entirelypartisan 45-54 vote in Decem-ber after the mass shooting inSan Bernardino, Calif

Critics of the legislationsaid at the time that the ter-rorism watch lists, includingthe no-fly list, sweeps toobroadly and could preventlaw-abiding citizens from pur-chasing a firearm The federalgovernment maintains severaldatabases of people suspected

of links to terrorism, including

a no-fly list barring certain dividuals from boarding air-planes in the U.S

in-John Velleco, director offederal affairs at the Gun Own-ers of America, said the pro-

posals now being discussedwere fraught with problems

“A person can be put on theno-fly list without knowing it

It is difficult to get off the listonce you’re on it, and there’s

no due process,” he said

Senate Democrats said theirbill would enable anyone erro-neously included on the list toquickly appeal the decision

Democrats said they pected Sunday’s massacrewould apply new pressure onRepublicans to reconsidertheir stance on the legislation

ex-A half-dozen GOP senatorsrunning for re-election in bat-tleground states this year arelikely to face attacks fromDemocratic challengers if theyoppose the measure

Notably, Senate Democratsdidn’t immediately push forbanning “assault weapons,” orsemiautomatic rifles that op-erate on the same principles

sex has always been illegal cause it occurs outside ofmarriage

be-“In Islamic law, all sex side a licit relationship is for-bidden, so by definition youcannot have a licit sexual re-lationship between two men

out-or two women,” said than Brown, an expert in Is-lamic law at Georgetown Uni-versity

Jona-Homosexuality is outlawedacross most of the Muslimworld, according to a recentreport by the InternationalLesbian, Gay, Bisexual, Transand Intersex Association, with

a handful of exceptions such

as Bahrain and Mali

In practice, however, tries rarely mete out the mostsevere punishments, in partbecause Shariah, or Islamiclaw, sets a high standard ofproof—either a confession orthe testimony of four up-standing men who witnessed

coun-the act

Gay intercourse in stan is punishable by life inprison, though the govern-ment seldom sentences peo-ple, according to a 2015 re-

Department

In Iran and Afghanistan,homosexuality is banned, andharsh penalties have been en-forced against it Iran exe-cuted three men in 2011 oncharges that included homo-sexual acts

Afghan law penalizes mosexual relations with five

ho-to 15 years in prison A 2015human rights report by theState Department said policeroutinely harass, detain anduse violence against gay peo-ple

In Saudi Arabia, ality can be punishable bydeath, but there haven’t beenany such executions in thecountry’s recent history Com-

homosexu-mitting or promoting sexual acts in public is usuallypunished by jail time, lashesand fines

homo-Islamic State and other tremist organizations areknown for an extreme hatred

ex-of homosexuals In the tory it controls in Syria andIraq, Islamic State has madeexecutions a hallmark of itsbloody reign In one instancereported by the activist groupRaqqa is Being SlaughteredSilently, a blindfolded manwas thrown from the roof of atwo-story building in Iraq Hesurvived the fall with criticalinjuries and was subsequentlystoned to death in front of acrowd of spectators, includingchildren

terri-Regional governments areincreasingly balking as globalLGBT activism progresses,said Neela Ghoshal, a re-searcher at Human RightsWatch

“There seems to be thisfear that there’s a globalmovement toward acceptingpeople, when of a lot of thesecountries have posed them-selves as defenders of the tra-ditional family,” she said

“They’re trying to preventsignificant actions at theglobal level.”

According to Human RightsWatch, gay people struggleeven in Lebanon, where thecapital Beirut’s raucous clubscene includes gay bars

Authorities in neighboringEgypt have used criminalcharges, including “promotingdebauchery” and “contempt

of religion,” to make sweepingarrests of gay men whogather in private spaces, eventhough no law exists explicitlybanning homosexuality

—Tamer El-Ghobashy, Joe Parkinson and Raja Abdulrahim contributed to this article.

At least 10 predominantly

Muslim countries around the

world, some of them close U.S

allies, have laws on the books

that set a punishment of death

for homosexuality Among

those that don’t, Egypt has

conducted mass arrests of gay

men, and homosexuals can

face torture even in Lebanon,

the Arab world’s most liberal

country

A question now is how, or

whether, Islam’s posture

to-ward homosexuality figured

in Omar Mateen’s killing of at

least 49 people at a gay

nightclub in Orlando after

claiming allegiance to Islamic

State

“God himself will give

pun-ishment to homosexuality It

is not for people to decide,”

the shooter’s father, Seddique

Mateen, said Monday His

words reflected a negative

stance toward homosexuality

that is deeply ingrained in

large parts of the Muslim

world—and in laws that

pur-port to deliver that holy

judg-ment

In most Muslim societies,

the survival strategy for gay,

lesbian, bisexual and

been to stay below the radar

Homosexuality isn’t

recog-nized as an identity or

life-style in Islam, and

homosex-ual acts are forbidden,

though punishments vary

among the major schools of

Islamic law

While same-sex attraction

has historically been tolerated

in some Muslim societies, gay

B Y K AREN L EIGH

A ND A SA F ITCH

A Punitive Line on Homosexuality

Many Muslim nations

have harshly antigay

laws, forcing people to

live under the radar

Intolerance

Countries where homosexual acts are illegaland in some cases punishable by death

Same-sex acts illegal

Source: International Lesbian, Gay, Bisexual, Trans and Intersex Association

THE WALL STREET JOURNAL.

but not known to be implemented

Death penalty under Shariah law, and implemented nationally or provincially

“We are building a real,true community, not just aplace for transients,” said Mi-chael Perkins, executive direc-tor of the Orange County Re-gional History Center

Mr Perkins, himself a year Orlando resident, said theresponse to the tragedy al-ready from locals, who havelined up in sizable numbers todonate blood and put togethermakeshift memorials, speaksvolumes “Orlando is resil-ient,” he said

30-cals, speaking to the city’s creasingly diverse profile

in-In particular, the gay munity’s rise has been tied tothe fact the theme-park indus-try is seen as LGBT-friendly,locals note

com-Orlando is a rapidly ing community: The area’seconomic base has begun tobroaden well beyond themeparks and the population hasincreasingly started to wel-come a range of groups, mi-nority and otherwise

chang-And at Parliament House,arguably the most prominentgay nightclub in town, there is

a benefit being planned forlater in June to help both vic-tims and the Pulse employeeswho are now jobless

The shooting at Pulse pened when the downtowngay club was holding one of itsLatin-themed nights Both Or-lando’s gay and Hispanic com-munities have grown in recentyears and become woven intothe fabric of the city, say lo-

hap-500,000 in 1970, note that themost deadly shooting in U.S

history may serve to bring thecommunity closer together

Local businesses are ing to help support the victims

mov-of the attack At Guavate, arestaurant in the city that ca-ters to the sizable local PuertoRican community, manage-ment plans to contribute all

Tues-day and WednesTues-day to fit victims of the attack andtheir families

Florida city’s carefully

main-tained image as a

family-friendly destination took a

se-vere blow over the weekend as

news spread around the globe

of a mass shooting that took

the lives of 49 people at a

packed nightclub

But business leaders and

residents of the metro area,

which has surged to nearly 2.4

million people from just over

Recent efforts to reinstatethe ban have encountered op-position from Republicans,some Democrats and gun-rights groups A proposal toban the manufacture and sale

of certain semiautomatic riflesand ban high-capacity ammu-nition magazines was blocked

in a 40-60 vote in April 2013

Republicans largely sponded to the Orlando at-tacks by saying the U.S must

re-be more assertive in thwartingIslamic State militants

—Reid J Epstein contributed to this article.

WASHINGTON—Sunday’smass shooting in Orlando, Fla.,spurred Democrats to renew along-stalled effort to tightenaccess to guns, injecting thepolarizing debate into the con-tests for the White House andSenate

Senate Democrats on day said they would push for avote again as soon as thisweek on legislation that wouldgive the Justice Departmentauthority to prevent a known

Mon-or suspected terrMon-orist frombuying firearms or explosives

if authorities believe theweapon could be used in con-nection with terrorism Some-one who meets that criterion

is likely to be on one of thefederal terrorism watch lists,including the no-fly list

Presumptive Democraticpresidential nominee HillaryClinton endorsed their effort,saying it was “essential” tostop terrorists from obtainingweapons

It isn’t clear that the lation would have been able toprevent the Orlando shooter,whom police identified asOmar S Mateen, from obtain-ing the weapons, including anAR-15 semiautomatic rifle, heused to kill 49 people and in-jure 53 others at a gay night-club in the deadliest massshooting in U.S history

legis-Senate Democrats said theybelieved law-enforcement offi-cials under this bill wouldhave had the authority to pre-vent Mr Mateen from pur-chasing a gun

The Federal Bureau of vestigation twice probed Mr

In-Mateen in 2013 and 2014 overhints of radical leanings beforeclosing those cases as incon-clusive FBI officials said Mr

B Y K RISTINA P ETERSON

A ND G ARY F IELDS

Democrats Push to Tighten Gun Access

AR-15 rifles are displayed during the NRA’s annual meeting in Louisville, Ky., on May 20.

The use of an AR-15 during

the U.S.’s worst mass shooting

has brought the term “assault

weapon” back into the lexicon—

but there is much confusion

about the term Here’s a primer:

What is an assault weapon?

The guns generally identified

as assault weapons are

semiau-tomatic rifles that operate on the

same principles as

semiauto-matic handguns According to the

Bureau of Alcohol, Tobacco,

Fire-arms and Explosives,

“semiauto-matic rifle” means any repeating

rifle that uses a portion of the

energy of a firing cartridge to

ex-tract the fired cartridge case and

chamber the next round It

re-quires a separate pull of the

trig-ger to fire each cartridge.

So what is the popular accepted

definition of an assault weapon?

Many of the firearms

identi-fied as assault weapons are

semiautomatic rifles that look

like weapons used by the

mili-tary A prominent example is

the AR-15 rifle.

And that’s what was under the

1994 assault-weapons law?

Yes and no The now-expired

law named 19 models of

fire-arms and also banned copies of

those models The law also

outlawed guns that had the

ability to accept detachable

magazines and had at least

two military-style features,

such as flash suppressors at

the muzzle and pistol grips.

Would the Orlando gun have

been illegal under the ’94 law?

We don’t know It would

de-pend on whether it had

mili-tary-style features.

—Gary Fields

THE WALL STREET JOURNAL. Tuesday, June 14, 2016 | A9

Kampala plans to startdrawing down its 3,000-strongforce in a process that will becompleted by the end of theyear, Lt Col Paddy Ankunda, amilitary spokesman, said in aninterview Monday

Col Ankunda said the tary operation has degradedthe militia’s capacity to attacklocal communities, but said theUgandan government was frus-trated by what he said was de-clining support from othercountries

mili-“We have achieved a lot inthis operation but we couldhave done even better withmore support,” Col Ankundasaid “We have now taken afirm decision to withdraw.”

A State Department officialpraised Uganda’s involvement

in the mission and said theU.S would continue to workwith other countries affected

by the LRA

“With U.S support…theUgandan military has removedfour of the LRA’s top five mostsenior and notorious com-manders from the battlefield,”the official said “During thattime the number of peoplekilled by the LRA has dropped

by over 90%.”

It isn’t clear how muchthe U.S spent on the opera-tions A $5 million rewardWashington announced in 2013for information about Mr.Kony or his top commandersremains in place

B Y N ICHOLAS B ARIYO

Uganda to Pull Back

In Hunt For Kony

“These measures weren’ttaken by the former govern-ment when we had floods in2008.”

AQAP moved in on Al kalla in April 2015 amid apower vacuum created by anow 14-month-old civil warbetween Shiite Houthi rebelsand the internationally recog-nized government of PresidentAbed Rabbo Mansour Hadi

Mu-The Saudi-led military tion supports Mr Hadi

coali-Residents said public vices including electricity, wa-ter and waste disposal were

ser-largely managed to their faction under AQAP’s gover-nance Many said civil justicewas meted out fairly, and oneresident said numerous long-standing property disputeswere resolved

satis-AQAP had money to spend,too, in the form of port and oilrevenue and an estimated

$100 million it looted from thecity’s central-bank branch

“They managed to operatethe seaport and buy genera-tors, to buy gas and diesel,”

said Ashraf al-Obthani, a year-old lawyer

30-The extremist group cast itsretreat as a gesture to savethe city from more fighting

But many residents saidthey were happy to see AQAP

go The closure of the city’sonly airport and the lack ofimmigration services limitedtravel Schools were initiallyclosed because AQAP didn’taccept having boys and girls inthe same institutions The mil-itants later relented

“We were excited whenthey decided to leave the city,”

said Najwa al-Sawmahi, amother of two who teaches

English at a public school

Ameer Ba Awdan, a ist, was arrested after partici-pating in a demonstrationagainst terrorism He lan-guished in an AQAP jail cell byhimself for seven months,monitored by video camera

journal-Shortly before the Saudi-ledcoalition entered the city, Mr

Awdan was taken with otherprisoners to a beach Somewere executed; he was re-leased, along with some oth-ers Mr Awdan doesn’t knowwhy

“I was numb,” he said

Life for women was larly harsh Several residentsdescribed a case where awoman accused an AQAP mili-tant of rape She was quicklyconvicted of adultery andstoned to death, they said

particu-There has been little tion that AQAP is trying tomove back into the port city

indica-Since the Saudi coalition took Al Mukalla, Yemen’sbranch of Islamic State hascarried out two deadly attackstargeting security forces TheU.S has deployed a small con-tingent of special forces to AlMukalla to advise the coalition

re-on maintaining cre-ontrol

EgyptAir Finding Points Away From Sudden Blast

CAIRO—Egyptian officials probing the crash of EgyptAir Flight 804 said the plane veered off course before plung- ing into the sea, suggesting an abrupt in-flight explosion didn’t bring down the aircraft.

The Airbus Group SE A320 plane bound for Cairo from Paris deviated from its course while flying at 37,000 feet, first turning left before rolling

to the right and completing a full circle, investigators said in their latest update into the

May 19 crash, which killed all

66 people on board.

The finding confirms ments initially made by Greek officials about the last seconds

state-of flight but initially rejected

by Egyptian authorities, who suggested contact was lost more abruptly Investigators have spent days going over all available radar information to reconcile the conflicting theses.

The finding does little to plain why the plane crashed into the Mediterranean Sea No

ex-cause has been ruled out, Egyptian officials have said.

The plane broadcast several fault messages before all con- tact was lost, indicating possi- ble smoke in the nose of the aircraft The messages alone haven’t been sufficient to de- termine a likely cause of the crash, investigators have said, adding urgency to recovering the black boxes that store technical data and conversa- tions in the cockpit.

—Dahlia Kholaif

WORLD NEWS

Whether residents in Al

Mukalla, Yemen, needed

gen-erators to keep the lights on

or shelter from an impending

cyclone, al Qaeda was often

ready to help

But life in this port city

un-der the yearlong rule of al

Qaeda in the Arabian

Penin-sula was also brutal: The

mili-tants detained and questioned

many with little justification,

and executed some deemed

unsympathetic to their views,

some residents said

Just over a month after

AQAP fled an advancing

Saudi-led military offensive, a

pic-ture is emerging of how the

extremist group governed

what had been its crown jewel

Unlike Islamic State, AQAP,

an affiliate of al Qaeda that

claimed responsibility for the

Charlie Hebdo shootings in

Paris last year, hasn’t made

territorial control its focus in

the seven years since its

founding in Yemen This city

of 300,000 was the most

pop-ulous territory al Qaeda had

ever held

Yet some residents here

said AQAP provided a level of

stability and engagement that

was lacking under previous

governments, an achievement

that will help it maintain loyal

allegiances on the ground

de-spite its retreat

Mohammad al-Katheeri, a

father of six, remembers how

when high winds lashed the

southern coast in November,

al Qaeda sprang into action

“They took all measures

necessary to protect people—

they even evicted people at

risk, providing them with

tem-porary housing,” he said

By Saleh al-Batati in Al

Mukalla, Yemen, and

Asa Fitch in Dubai

Yemen City Resets After al Qaeda

Residents say life was

both stable and brutal

under Islamists before

yearlong rule ended

Yemeni soldiers, left, stood guard in Al Mukalla after a suicide attack last month At right, an AQAP banner denounces democracy.

630 Royal Street, New Orleans, Louisiana • 877-677-2801 • ws@rauantiques.com • rauantiques.com

Since 1912, M.S Rau Antiques has specialized in the world’s finest art, antiques and jewelry.Backed by our unprecedented 125% Guarantee, we stand behind each and every piece

Best Dressed

Cartier Cufflinks Set

Legendary jeweler Urbane design Pinnacle of style.

Iconic Cartier elegance is on display in this stylish Art Deco sapphire and diamond gentleman’s set.

Crafted in a sleek geometric motif, the cufflinks and shirt studs are set with approximately 3.30 carats of sapphires and 1.92 carats of diamonds in platinum Marked “Cartier.”#30-3030

15MSRA263-01-130490-26

In the 16th century a German Count created

a special handle for walking sticks

to ease joint

discom-fort This handle

style was a favorite

of Friedrich II who

was never seen

with-out his

dewdrop-shaped walking stick as he went

about his Kingly duties It was no

wonder that the handle grew to bear

the King’s moniker “Fritzkrücke”––

shortened to “Fritz.”

Our Earlsford Walking Stick features

this ergonomic joint-friendly handle in

striking sculpted detail Today these

tributes to a man’s power, prestige, and

posture are fetching as much as $200,000

at auction Because Stauer takes the quicker

and less expensive route and goes right to

the source, we can offer you the

vintage-wor-thy Earlsford Walking Stick for ONLY $49!

The ultimate travel companion Hold

it once and you can feel that it’s not some

hollow imitation Our Earlsford Walking

Stick is crafted from a solid shaft of imported

eucalyptus wood and finished with layers of

brown lacquer

Limited Edition Only 4,999 available!

These handcrafted beauties take months to craft and are running (not

walking) out the door So, take a step in the right direction Call today!

Your satisfaction is 100% guaranteed Experience the comfort and

class of the Earlsford Walking Stick for two months If you’re not easing

down the road in a kingly fashion, simply send it back within 60 days

for a refund of the sale price At Stauer, we walk the talk

Earlsford Walking Stick $79†

Offer Code Price—$49 + s&p Save $30

You must use the insider offer code to get our special price.

1-800-333-2045

Offer Code EWS112-01

Please use this code when you order to receive your discount

† Special price only for customers using the offer code versus the price on Stauer.com without your offer code.

14101 Southcross Drive W., Dept EWS112-01,Burnsville, Minnesota 55337www.stauer.com

Image not actual size.

Comfort and class go hand in hand in the

Earlsford Walking Stick Yours for ONLY $49!

• 36" long • Solid brass Fritz-style handle • Rubber tip

Over 18,000 Stauer Walking Sticks Already Sold!

Rating of A+

A Royal Count and the King

of Prussia walk into a

Sm a r t Lu x u r i e s — Su r p r i s i n g Pr i c e s ™



“The Walking Stick

is excellent! It is as attractive as it is useful.”

— James,Lehigh Acres, FL

“The best, the most exquisite automobile is a walking stick; and one of the finest things in life is going on a journey with it.”

— Robert Coates Holliday,Walking-Stick Papers

TAKE 38%

OFF INSTANTL Y !

When you use your

INSIDER OFFER CODE

Limited Edition

A10 | Tuesday, June 14, 2016 * * * * THE WALL STREET JOURNAL.

WORLD NEWS

the region’s largest petroleumexporter suffers a debilitatingcash crunch, widespread foodshortages and civil unrest

In recent months, major oilservices companies, including

Halliburton Co and berger Ltd., said they were cut-

Schlum-ting back operations in ela as the country struggles torepay multibillion-dollar debts

Venezu-to partners

“This is very surprising,” saidFrancisco Monaldi, a LatinAmerican energy policy fellow atRice University in Houston, whoclosely tracks Venezuela’s oil in-dustry “If you want to point to

the biggest problem, it is cashflow, which for PdVSA now looksworse than we had imagined.”

Venezuela, which relies on oilfor nearly all its income, is fac-ing severe dollar shortages due

to low oil prices, as well as morethan a decade of profligatespending under the ruling so-cialist government, which usedoil-sector money to fund socialprograms Oil output is far fromthe 6 million barrels a day thatits officials have long targeted

Monthly oil production hasfallen this much only once since

2003, when the country’s oil dustry came to a standstill dur-

in-ing a devastatin-ing strike led byPdVSA workers seeking theouster of then-President HugoChávez

The last time was in 2006,said Gary Ross, head of global oil

at the consulting firm PIRA ergy Group, who added that thedrop-off may give leverage tooil-field services companies thatare now in payment negotia-tions with Venezuela “There’s

En-an urgency there now thatwasn’t there before this hap-pened, because of the lost pro-duction,” Mr Ross said

—Juan Forero contributed to this article.

Venezuela registered its

big-gest monthly oil-production

de-cline in a decade in May,

accord-ing to data released Monday by

the Organization of the

Petro-leum Exporting Countries,

sig-naling further trouble for a

country already enduring severe

economic hardship

The decline of 120,000

bar-rels a day, to 2.37 million barbar-rels

a day, underscores the inability

of state energy company

Petró-leos de Venezuela SA to

main-tain oil-industry investments, as

B Y K EJAL V YAS

A ND T IMOTHY P UKO

Venezuela Oil Output Dropped Sharply in May

Workers assembled rice snacks in a food-products factory in Jiaxing, in Zhejiang province, in June.

SHANGHAI—Police on day blamed an airport blastthat left five people injured on

Mon-a migrMon-ant fMon-actory worker withdebts from online gamblingwho had warned friends hewas about to embark on a sui-cide mission

The Shanghai police quoted

a message that Zhou Xingbaisent to a group chat sayingthat he owed many peoplemoney: “Preparing to dosomething extremely crazy.Will surely lose my life.”Sunday’s explosion near thecheck-in counters for severalAsian airlines at Shanghai Pu-dong International Airport leftfour bystanders with minor in-juries, including an unidentifiedPhilippine national, police said.Police indicated that Mr.Zhou was the most seriouslyhurt person in the incident,having slashed his own neckwith a knife after setting offthe blast Police said Sunday

he was in critical conditionand gave no update on hiscondition on Monday.Disgruntled debtors havebeen blamed for numeroussmall attacks in China in re-cent years, including bus fires

In 2013, a wheelchair-boundman set off a small explosion

at Beijing Capital InternationalAirport that caused minimaldamage; he was said to be up-set about his physical state

Mr Zhou’s crude weaponconsisted of beer bottles stuffedwith firecrackers, according topolice, who said the perpetratorhad thrown a homemade explo-sive device at the airline counter.Monday’s statement identi-fying the suspect said that af-ter Mr Zhou graduated fromhigh school in his native Gui-zhou province a decade ago,

he worked in factories in ous parts of the country.The explosion delayed thetakeoff of some internationalflights on Sunday but ap-peared to cause minimal dis-ruption, according to local au-thorities and airline staff.Authorities stepped up secu-rity at the airport departurehall after the incident, accord-ing to photos posted onlineand airline statements

vari-B Y J AMES T . A REDDY

Worker Accused in Shanghai Explosion

tack

The attack originated from

an internet address based inPyongyang and used in a 2013cyberattack that disabled thecomputer systems of South Ko-

rean banks and TV stations, thepolice said

“North Korea turns out tohave been preparing for a longtime to try to launch a country-wide cyberattack,” the police

wage increases this year andgrowing concern over unem-ployment,

“If you look at all the datafrom May, you can pick andchoose and find industries do-ing well,” said IHS economistBrian Jackson “But if you’reconcerned about GDP, the fig-ures from April and May prettymuch show the economy willslow down from the 6.7% seen

in the first quarter.”

China’s property market tinued to strengthen, though at

con-a slower pcon-ace thcon-an econ-arlier thisyear Housing sales grew 53.4%

by value in the first five months

of 2016 compared with 61.4% inthe first four months as largercities tightened sales restric-

tions to rein in property prices

The deceleration suggests themarket has peaked

Despite recent strong erty sales, Oriental FurnitureCo., which makes marble tablesand flooring at its factory inSongyuan, a city in northeast-ern China, said it doesn’t expect

prop-to invest much in 2016 giventhe tepid outlook Gao Junming,the company’s general manager,said he is looking at new prod-uct lines and more governmentstimulus to boost the com-pany’s prospects “Hopefullythat will allow us to sell more,”

he said

Consumer confidence inChina edged down in May overApril, according to the ANZ-Roy

Morgan China Consumer dence Index, as fewer respon-dents said they expected theirpersonal financial situation toimprove in the immediate fu-ture

Confi-The weak May investmentdata increased the chance thatBeijing will take more steps torevive the economy to ensure ithits its 2016 growth target of6.5% to 7% “Private investment

is difficult to boost veryquickly, so the response willhave to be largely from the gov-ernment spending side,” saidDing Shuang, an economistwith Standard Chartered (HongKong) Ltd

—Liyan Qi contributed to this article.

reau of Statistics, cited pacity and a difficulty in ob-taining financing as reasonsprivate companies are reluctant

overca-to invest, though he saidChina’s economic fundamentalsremain sound “The slowdown

in private investment showsthat economic growth momen-tum needs to be strengthened,”

he said

The weak investment datacoincided with reports showingproperty and auto sales still go-ing strong, illustrating themixed picture in China’s econ-omy, with the industrial sectorstruggling while consumptionhas remained a bright spot

May retail spending held up,despite the prospect of smaller

BEIJING—A slowdown in

private investment in China in

May overshadowed other,

more-upbeat economic data,

contributing to a 3.2% drop in

Shanghai shares Monday and

fueling concerns that growth in

the second quarter could be

weaker than in the first

Several reports released

Monday suggested pockets of

relative strength in the world’s

second-largest economy But

fixed-asset investment

ex-panded by a

weaker-than-ex-pected annual clip of 9.6% in

the first five months of the

year, compared with 10.5%

growth through April Even

worse, the private investment

portion grew by a mere 3.9% in

January-May, down from an

al-ready weak 5.2% in

January-April

A slowdown in private

in-vestment is particularly

worri-some because it indicates that

companies are holding off

spending, signaling limited

con-fidence in the future and

deny-ing the economy what is often

more effective and sustainable

investment than government

spending

Sheng Laiyun, a spokesman

for the country’s National

THE WALL STREET JOURNAL.

Sources: CEIC Data; National Bureau of Statistics

40

0102030

%

’12 ’13 ’14 ’15 ’162011

China's fixed-asset investment

Year-over-year change

Private Overall

Among the documents edly stolen were wing designsfor an F-15 jet fighter and pho-tos of parts of unmanned spyplanes, a spokesman for thecompany said

alleg-Korean Air makes aircraftparts for South Korea’s military,which flies F-15 jets, a modeloriginally built by McDonnellDouglas Corp., which Boeing

Co acquired in 1996

A South Korean military cial said the leak wasn’t of sen-sitive information, such as F-15engines or electronic systems

offi-“The leak will likely have a ligible impact on national secu-rity,” the official said

neg-The police said that by tecting the breach they pre-vented what appeared to be thestart of a larger-scale cyberat-

de-agency said

There was no immediate action from North Korea toMonday’s announcement It fre-quently denies involvement incyberattacks, but defectors andoutside experts say it has built

re-up its hacking abilities in recentyears

U.S investigators believe aunit of North Korea’s main spyagency devoted to cyberwarfarewas behind a hacking attack onSony Pictures in 2014

The latest incident also cluded the theft of around2,000 files related to communi-cations equipment in South Ko-rea

in-Earlier this year, South rea said North Korea had tried

Ko-to attack computers that trol transport systems

con-SEOUL—North Korean

hack-ers stole wing designs for a U.S

jet fighter and photos of parts

of spy planes from a South

Ko-rean company, according to

au-thorities in Seoul, the latest in

a series of cyberattacks

alleg-edly done by Pyongyang

More than 40,000

docu-ments related to the defense

in-dustry were stolen in attacks on

two companies that began in

2014 and were discovered

ear-lier this year, the Korean

Na-tional Police Agency said

Mon-day

One of the companies,

Ko-rean Air Lines Co., said it was

told by police its systems had

been breached

B Y A LASTAIR G ALE

A ND K WANWOO J UN

Seoul Says North Korea Stole F-15 Designs

South Korean police say hackers took jet fighter wing designs.

Selic 16 times since early 2013only to see price increasesbreach double digits late lastyear and peak at 10.7% in Jan-uary The Selic has remained

at 14.25% since last July.Monetary policy has beenundermined by governmentspending The budget gapgrew to 10.1% of gross domes-tic product by April, from 2.5%

in January 2011, when the ist Ms Rousseff was inaugu-rated and nominated Mr Tom-bini to lead monetary policy

left-“In the end, [Mr Tombini]never met the target…but thegovernment was focused onspending,” said economistJosé Carlos Oliveira, from theUniversity of Brasília “Therewas little the central bankcould do.”

In a weekly survey of omists released Monday bythe central bank, the medianforecast for inflation in 2016was 7.2% On the other hand,the same survey has consis-tently shown a stable 5.5%forecast for next year, an indi-cation that many economistsbelieve prices will lose steameven if Mr Goldfajn doesn’tmake many changes

econ-“What is important now is

to regain credibility,” said cio Crespo, an economist atGuide Investimentos brokeragefirm in São Paulo, who doesn’tsee much room to start easing

Igná-“I think he will only cut rateslater this year Any surpriseswill come on the hawkish side.”

Mr Goldfajn insisted thathis goal was to reach the cen-ter of the target, using the2.5%-to-6.5% tolerance rangeonly to absorb shocks

“The goal is to fulfill thetarget completely, eyeing itscentral point,” he said “There

is no sustainable economicgrowth without stable infla-tion.”

BRASÍLIA—Brazil’s centralbank inaugurated a new leader

to deal with an old challenge:

taming stubborn inflationamid a shaky economy and po-litical chaos

In an hour-long ceremony

on Monday at the bank’s posing building, private-sectoreconomist Ilan Goldfajn tookover the post from AlexandreTombini, and pledged to meetthe central bank’s 4.5% annualinflation target, without giving

im-a timefrim-ame Mr Goldfim-ajn, 50,will have to do it without rais-ing interest rates, the standardweapon for cooling inflation

Brazil’s benchmark interestrate, the Selic, already stands

at 14.25%, one of the highestrates in the world Increasingrates further could be danger-ous for an economy that con-tracted by 3.8% last year and

is expected to shrink as much

in his first speech in the job

“It is important to manage pectations.”

ex-His predecessor was an pointee of Brazil’s suspendedPresident Dilma Rousseff andhad held the job since January

ap-2011 On his watch, Brazilnever once met its 4.5% infla-tion target, even as the econ-omy slumped

Mr Goldfajn was appointed

by acting President Michel mer, who will serve out Ms

Te-Rousseff’s term if she isousted A U.S.-educated econo-mist, for the past decade he ledthe economic-research depart-ment at Itaú-Unibanco, Brazil’slargest private-sector bank

Inflation has defied the tral bank, which has raised the

cen-B Y P AULO T REVISANI

Brazil’s Bank Chief Sets Ambitious Goal

German Leader Goes to Beijing Amid Worries About Trade Hurdles

SEALING THE DEAL: German Chancellor Angela Merkel attended a signing ceremony in Beijing on Monday during a three-day trip to

China The visit comes amid concerns among German firms about obstacles to doing business in the country “It is important to have

a secure juridical environment,” she said during remarks with Chinese President Xi Jinping, according to the Associated Press.

THE WALL STREET JOURNAL. * * * * * * Tuesday, June 14, 2016 | A11

FRANCE

Senior Police Officer

Fatally Stabbed

A police commander was

stabbed to death late Monday

outside his home in a Paris

sub-urb, officials said, and

antiterror-ism prosecutors were

investigat-ing the attack

of decrease slowed in 2013 and2014

U.S political figures ing President Barack Obamaand presumptive Republicanpresidential nominee DonaldTrump have been increasinglycritical of European militaryspending, saying the continent

includ-must spend more on defense

Douglas Lute, the U.S bassador to NATO, said theother allies have “got the mes-sage” and are beginning to

am-“pay the price” of their owndefense

The alliance will position abattalion, roughly 1,000

troops, in each of the Balticstates and Poland for six-to-nine-month rotations, he said,

in a move to deter Russian gression

ag-Some U.S military leaderswanted the battalions to beunder the command of thehost nations, to make them

able to react faster and bemore closely integrated witharmed forces in each country

But officials said alliancecontrol will help increase thedeterrence value of the force

“The battalions which wewill have in the Baltic coun-tries and Poland will be under

NATO command; they will not

be under national command,”

Mr Stoltenberg said

NATO defense ministers areset to approve the size and keydetails of the multinationalforce this week in Brussels.The U.S., the U.K and Ger-many are set to lead three ofthe four battalions Canada isconsidering serving as the leadnation for the fourth battalion,officials have said

Alliance diplomats said each

of those framework nationswill be bolstered by smallercontributions to make theforces multinational France,for instance, will contribute acompany—roughly 150 sol-diers, to one of the battalions.While details of the com-mand have to be worked out,alliance officials said NATOwill command the units both inpeacetime and moments of cri-sis U.S Army Gen CurtisScaparrotti is the top NATOmilitary commander

Mr Lute said no final sions on where the U.S battal-ion will come from have beenmade

deci-The battalion could comefrom U.S.-based units, one ofthe Army’s two European bri-gades or the rotational forcesthe U.S plans to send to Eu-rope, Mr Lute said

The U.S will also have todecide whether to keep thecompanies it currently has inBaltic states

BRUSSELS—The head of the

North Atlantic Treaty

Organi-zation said new estimates

show military spending from

European countries and

Can-ada is set to rise 1.5% this year,

an increase of $3 billion, which

he praised as a step in the

right direction

“After the end of the Cold

War there was a long decline

in military spending across

Eu-ropean allies and Canada,”

Secretary-General Jens

Stol-tenberg said on Monday “This

is real progress After many

years going in the wrong

di-rection, we are starting to go

in the right directions.”

Mr Stoltenberg also said a

4,000-strong deterrent force to

be positioned on the alliance’s

eastern border will be under

alliance command and control

NATO released the estimate

along with a final assessment

of 2015 spending, which

showed a 0.6% increase in

mil-itary spending last year

The small increases come

after long declines in military

spending European and

Cana-dian spending declined 2.4% in

2010, 2011 and 2012 The rate

B Y J ULIAN E . B ARNES

NATO Says Europe to Raise Defense Role

Alliance sees increase

DESTROYED: Singapore on Monday used a rock crusher to break

up illegal elephant ivory with an estimated value of $9.6 million.

Islamic State’s Amaq newsagency cited an unnamed

“source” as saying a fighter forthe group had carried out theattack The group hasn't formallyclaimed responsibility for the at-tack

The off-duty police mander, who wasn't identified,was stabbed outside his homeabout 35 miles west of Paris, inMagnanville, interior ministryspokesman Pierre-Henry Brandet

com-said

The attacker then entered theofficer’s home and police com-mandos laid siege to the resi-dence, storming it after a three-hour standoff

Mr Brandet said the woman,who was the commander’s com-panion and a fellow policeworker, was found dead, as wasthe attacker

The police couple’s son wasfound unharmed

Officials said the attacker waskilled by police when theystormed the residence It wasunclear how the woman waskilled

—Associated Press

THE PHILIPPINES

Military Confirms Death of Hostage

The Philippine military firmed that extremist group AbuSayyaf has beheaded anotherCanadian hostage after thedeadline to pay ransom lapsed

con-The Philippine Army’s WesternMindanao Command said policerecovered the severed head ofCanadian Robert Hall near the ca-thedral in Jolo, the same south-ern town where Abu Sayyaf leftthe head of another Canadianhostage, John Ridsdel, who waskilled in late April

—Cris Larano

FREE for 60 days

.

©2016 Headsets.com, Inc “OfficeRunner” is a registered trademark of Headsets.com All rights reserved.

Serious business requires

a higher-quality, more comfortable wireless headset

With 4.8 stars and over 390 reviews, it’s Amazon’s top-rated office headset!

Why you’ll love the OfficeRunner wireless headset:

Best-in-class range, up to 400 feet Superior clarity from Sennheiser, one of the most respected names in audio

Up to 12 hours of talk-time from a 1-hour charge Industry-leading 3-year warranty

The OfficeRunner headset delivers more flexibility, clarity, comfort and ultimately, more productivity for your business

A12 | Tuesday, June 14, 2016 * * * * * THE WALL STREET JOURNAL.

FROM PAGE ONE

Carol Haefner and her dog on the porch of a ‘tiny house’ in Spur, Texas The town is trying to lure devotees of such homes to reverse a population decline, but new rules have divided its residents.

Hit and Miss

Microsoft’s top five acquisitions by date announced and deal value

THE WALL STREET JOURNAL.

*Handset business Sources: Dealogic; the companies

Skype

(May 2011)

$8.5

Microsoft hopes toturn the consumercalling service into acorporatecollaboration tool

Nokia*

(Sept 2013)

$9.4

Buying Nokia’shandset businessturned into a bust,leading to majorwrite-offs

Mojang

(Sept 2014)

$2.5

Purchase ofMinecraft gamemaker appears

Deal value in billions

week to June 7, asset ers increased their net shortposition to 76,623 contracts

manag-That is up from 72,405 tracts a week earlier and itshighest level since earlyApril

con-And investors are starting

to worry that the impact ofBrexit could cross borders

On Monday, the dominoesfell onto Japan: A search forsafety drove investors intothe yen, which surged to itshighest levels against theeuro and pound since 2013

The move erased all the yen’slosses against the commoncurrency since the Bank ofJapan started its easing pro-

gram over three years ago

The yen’s rise is bad newsfor Japanese policy makers,who have been trying to keep

it low to juice exports

More broadly, Brexit couldinject uncertainty into Eu-rope’s already-fragile politicalunion, which is struggling tobuild consensus on economicpolicy and migration

The European Union “is timately one of the more suc-cessful partnerships of alltime—the thought of thatchanging is destabilizing,”

ul-said John DeClue, chief vestment officer at the Pri-vate Client Reserve, U.S

Italian banks, for instance, arebedeviled by bad loans and willneed sustained economic im-provement to dig out from un-derneath them

The Stoxx Europe 600 indexdropped 1.8%, wiping out allgains since February Shares ofEuropean banks shed nearly3% Bank investors fear an exitcould disrupt the operations ofthose that use London as a hub

A polling barrage began lateFriday—well after Asian mar-kets were closed for the week-end—with a survey that gave asix-point lead to the “Leave”

camp Two Sunday newspaperpolls each gave small edges todifferent sides, and then threepolls Monday showed growingsupport for “Leave.”

“Equity-market price actionmakes one thing clear: TheBrexit vote will be a majorsource of volatility,” said Nich-olas Colas, chief market strate-gist at global brokerage Con-vergex

Concerns about the impact

helped trigger 18 consecutiveweeks of outflows from Euro-

weighed on the British pound

Data from the U.S modity Futures Trading Com-mission show investors areincreasingly placing bearishbets against sterling In the

Com-arm

“People would start olating to what else can hap-pen in Europe if other coun-tries leave,” Mr DeClue said

extrap-The British pound fell to atwo-month low against thedollar at $1.4153 on Monday,before recovering in New Yorktrading Late in the New Yorktrading day, the pound was at

$1.4271

Skepticism toward pean integration is risingacross the continent A me-dian of 51% across 10 membercountries surveyed have a fa-vorable view of the EU, com-pared with 61% a year ago, ac-cording to a new study by the

Euro-Pew Research Center, while70% of those surveyed saidthey think it a U.K exit would

be bad for the EU

Europe’s periphery sold offharder than the U.K.’s FTSE

100 index, which fell 1.2%.Spain’s IBEX pulled back 2.2%,Italy’s FTSE MIB index lost2.9% and Greece’s Athex Com-posite fell 3.9% Bond yieldsrose in Greece, Italy, Portugaland Spain

“Global stocks probablydrop 5-10% in relatively shortorder if there’s a Brexit,” saidPhil Orlando, chief equitystrategist at Federated Inves-tors in New York

Meanwhile, uncertaintyaround Britain’s future in Eu-rope has helped boost assetsaround the world perceived assafe Gold rose 0.9% to

$1,284.40 an ounce The year Japanese governmentbond hit an all-time low yield

10-of -0.161% on Monday, ing to data from Tradeweb.Yields move inversely toprices

accord-Betting markets put thechances of a vote to leave ataround a third—higher than ithas been in past weeks None-theless, “the weight of moneybeing wagered on the out-come still implies that a Br-exit would come as a big sur-prise and therefore causewaves in the financial mar-kets,” said Alex Holmes atCapital Economics

—Mike Bird, Jenny Gross and Chao Deng contributed

to this article.

Stock Average off 1.5%

The selling signified that the

market is now taking seriously

an issue that has been brushed

aside by many traders and

portfolio managers during a

sharp 2016 bounceback rally,

even as concerns about

vote-re-lated uncertainty vexed policy

makers

Slowing economic growth

and fears of a market shock

stemming from an event such

as a “Brexit” vote have helped

keep Federal Reserve officials

from carrying out planned

in-terest-rate increases in 2016

Their restraint has helped push

U.S stock indexes within range

of records despite many

inves-tors’ sense that the economy

remains soft and markets

vul-nerable to any upset of a

deli-cate status quo

“Right now, the U.K.’s

deci-sion is the headline that keeps

the Fed on hold, likely until

September,” said Jim Vogel,

head of interest-rate strategy

at FTN Financial “At a

mini-mum, they have to wait out the

vote and its immediate

after-math.”

Europe is especially

vulnera-ble Britain has been among the

best performing of the major

European economies in recent

years, and many economists

say a vote to leave the EU

would hit investment hard—

and possibly deliver a shock to

Continued from Page One

BREXIT

chestrated in 2014 by soft’s previous chief executive,Steve Ballmer

Micro-Microsoft’s prior efforts atweaving social networking intoits productivity software haven’tcaught fire In 2012, Microsoftbought workplace chat serviceYammer Inc for $1.2 billion, buthas seen rival products, such asSlack, gain momentum

“Sadly, history has shown[synergies] are very difficult torealize when two big companiescombine, especially to the extentLinkedIn is remaining an inde-pendent fiefdom within the Mi-

crosoft empire,” said Mitch

Development Corp and partner

of venture firm Kapor Capital

Some business leaders lookforward to benefits from the tie-

up Tech companies and theircustomers “are looking for ways

to get even more out of socialmedia,” said Steve Phillips, chiefinformation officer of Avnet Inc.,

an electronics supplier that usesMicrosoft products including Of-fice 365

Mr Nadella and Mr Weinermet at a Microsoft gathering ofCEOs a few years ago, and the

pair talked earlier this year aboutworking more closely, according

to a person familiar with the ter That person said there was

mat-“such a mind-meld” during thosediscussions that the conversationmoved toward the possibility of

an acquisition Mr Hoffman wasalso “actively” part of the take-over talks, which lasted a fewmonths, the person said

Another source said thatMessrs Nadella, Weiner andHoffman and Microsoft exec Qi

Lu, who worked with Mr Weiner

at Yahoo Inc., met for dinner inApril to discuss potential scenar-

ios Microsoft and LinkedIn ers dined at Mr Hoffman’s houseSunday night, the person said

lead-The deal highlights Mr della’s bid to reshape Microsoft,

Na-a little more thNa-an two yeNa-ars Na-ter taking the helm Mr Nadella,who rose through Microsoft’sranks in its business applicationsand server groups, has focusedmuch of the company’s efforts

af-on products and services for porate customers

cor-As CEO, he has extended crosoft’s software to platformsthat it doesn’t control, includingAndroid mobile phones and theLinux desktop operating system

Mi-And he has pushed to connectMicrosoft’s products to datasources that can provide cus-tomers with timely, useful infor-mation, and to develop servicesintended to anticipate informa-tion users want and actionsthey’ll take

Growth has been a challengefor both Office and LinkedIn Inthe quarter that ended March 31,revenue at Microsoft’s produc-tivity and business processesunit, which includes Office, grew

by 1% to $6.5 billion Office usersnumber 1.2 billion, the companysaid

Growth at LinkedIn, which inthe first quarter claimed 105.5million monthly active users of

its web and mobile apps, has celerated in the past two years.UBS Securities LLC analystBrent Thill estimates thatLinkedIn revenue will climb a bitmore than 25% in 2016, downfrom more 35% growth in 2015and more 45% growth in 2014.Microsoft said it expectsLinkedIn, which will be part ofits productivity and businessprocesses segment, will have aminimal negative impact—about1%—on adjusted earnings for itsfiscal 2017 and 2018 years Thedeal is expected to add to Micro-soft’s per-share earnings in 2019.Following news of the acqui-sition, Moody’s Investors Servicesaid it would review Microsoft’striple-A credit rating for a po-tential downgrade

de-Morgan Stanley served as crosoft’s financial adviser to Mi-crosoft, and LinkedIn was repre-sented by Qatalyst Partners andAllen & Co

Mi-Analysts said a competing bidfrom another tech company isunlikely given the size of thetransaction Credit Suisse ana-lyst Stephen Ju also cited “thelack of clear strategic fit” be-tween LinkedIn and other majortech companies

—Rolfe Winkler and Deepa Seetharaman contributed to this article.

shareholders after the stock

tumbled from a peak of $269 in

February 2015 to as low as

$101.11 last February

Microsoft will pay $196 per

LinkedIn share, a 50% premium

to the social network’s closing

price on Friday Both boards

ap-proved the deal, and Reid

Hoff-man, LinkedIn’s chairman and

controlling shareholder,

sup-ports the transaction LinkedIn

Chief Executive Jeff Weiner will

keep his current job when the

deal closes, which the companies

expect to happen by the end of

the year

The tie-up will also test

Mi-crosoft’s ability to meld a large

acquisition with its own

opera-tions The Redmond,

Wash.-based company has struggled to

integrate previous purchases

in-cluding Nokia Corp.’s handset

business and aQuantive Inc.,

costing shareholders billions of

dollars in the process

The deal dwarfs other

Micro-soft acquisitions Its next largest

deal, buying the Nokia handset

business, led to Microsoft taking

charges that exceeded the $9.4

billion price That deal was

or-Continued from Page One

2014

Monday135.64200

100120140160180

$1.435

1.4051.4101.4151.4201.4251.430

8 p.m

Sunday 12 Monday6 a.m. noon 4

Monday

£1 buys $1.423

“Lord of the Rings.”

That was too much for the

tradition-minded folks of Spur

In March, the town council

hired a building inspector and

passed an ordinance that

re-quires designs to be submitted

for approval

Spur also stipulated that tiny

houses be connected to the

electrical grid, water supply and

sewer system Before that, the

only rule was that houses on

wheels be put on concrete

foun-dations because Spur is in

tor-nado country

“There are some people who

came here with the belief that

anything goes,” says Denise

Rosner, 62 years old, who is

originally from the Bronx

bor-ough of New York City and was

the second tiny house dweller

to arrive in Spur, where she

lives in a 440-square-foot,

tra-ditional-looking home

The new rules have divided

Spur’s tiny house pioneers “It

was a bait-and-switch,” says

Benjamin Garcia, 24, a web

con-sultant He moved to Spur in

November with plans to build a

house out of earth “I was very

forthcoming about what I

wanted to build, and they said it

was fine, and then they didn’t.”

Mr Garcia says he felt

tar-geted because the temporary,

120-square-foot wooden shed

he built while preparing to

erect the earthen house had a

compost toilet, which is

specifi-cally barred by the new

ordi-nance

After unsuccessfully fighting

the ordinance, Mr Garcia and

two other people bought a

15-acre plot of land 4 miles outside

Spur, called Makerton, where

there will be no building

re-strictions

Continued from Page One

Spur Mayor Steve Bland saysthe tiny house movement hasbeen a lot to take in for the 107-year-old town, where the big-gest excitement usually comeswhen the Spur Bulldogs high-school football team squares offagainst its archrival, the Padu-cah Dragons

“This is new for us,” Mr

Bland says “We understand as

it grows, we’ll have to growwith it—you can’t stay stuck inyour ways—but we want things

to go slowly.” So far, Spur hassold 60 abandoned lots forroughly $500 apiece, and about

20 “tiny housers” are expected

to be moved in by the end ofsummer

The definition of what stitutes a tiny house varieswidely The concept falls intothree rough categories: tinyhouses on wheels, which canfunction like motor homes, tinyhouses on foundations, andhouses made of alternativebuilding materials, such as dis-carded shipping containers

con-Tiny is relative, too In Spur,

a tiny dwelling must be smallerthan 900 square feet, whichmany New Yorkers would con-sider a spacious apartment

Among tiny housers, a square-foot to 1,000-square-foothouse is typically called a

500-“small house,” while a square-foot to 500-square-footbuilding is a “tiny house.” Any-thing smaller is deemed a “mi-cro house.”

120-Most tiny houses fall where around 300 square feet—

some-about one-third the size of aswimming pool The typical sin-gle-family U.S home is 2,500square feet In Spur, the small-est house so far measures just

80 square feet

Tiny homes are more able and ecologically friendly,with lower heating and powerneeds translating into a smallercarbon footprint Some houses

afford-are made of recycled materials

Some use solar panels or gatherrainwater The main problemfor tiny house dwellers is thatzoning laws in most cities andtowns make it very difficult tolegally build such homes

Dave Alsbury, 55, moved toSpur three years ago and thencame up with the idea of turn-ing the town into a tiny housemecca The technology entre-preneur doesn’t live in a tinyhouse himself

Spur’s relaxed building codesand low prices make it appeal-ing to people looking for a place

to build a tiny house on landthey own The recent laying of

an ultra-high-speed fiber net cable in Spur has proven at-tractive to those who work on-line, meaning they don’t need to

inter-be farmers or ranch hands toearn a living in the area

Mr Alsbury says Spurneeded to impose some rules ontiny houses once town officialsstarted hearing about the build-ing plans of newcomers like Mr

Garcia “Benjamin has a lot ofbig ideas, which are all great,but they probably aren’t going

to work in a West Texas town,”

Mr Alsbury says

The dust-up hasn’t shakenlocal interest in the tiny housemovement, and Spur is nowworking to free up another 40lots for sale Each sale puts adormant property back on thelocal tax rolls

“A lot of these towns outhere are dying These folkscoming in are educated, profes-sional and seem like they reallyhave something to bring to thecommunity They are like a ray

of sunshine on an otherwisecloudy situation,” says CharlieMorris, a retired federal agri-culture inspector and DickensCounty, Texas, commissionerwho has lived in Spur for about

40 years “What we don’t wantare anarchists or nudists.”

THE WALL STREET JOURNAL. Tuesday, June 14, 2016 | A13

My Father Stefánie

In 2004 Susan Faludi, the Pulitzer Prize winning journalist

and feminist writer, was boxing up her notes from a bookshe was writing about masculinity when she took a break

to check her email “Dear Susan,” the note read, “I’ve gotsome interesting news for you I have decided that I have hadenough of impersonating a macho aggressive man that I havenever been inside.” That man was her 76-year-old father, whowas then living in Hungary He’d just had a sex change opera-tion in Thailand “My photographer father still preferred theimage to the written word.” Ms Faludi writes “Attached tothe message was a series of snapshots.” Steven Faludi was

now Stefánie Faludi and shewanted her daughter to tellher story

Stefánie and Susan were tranged; they had barely spo-ken in years when the authorreceived this email The au-thor’s father had been an “impe-rious patriarch” and “householddespot”—a man Ms Faludifeared, and whose aggressionmust have played a pivotal role inher feminism

es-In this riveting book about avery complicated subject, Ms Fa-ludi grapples with her feelings: “Iwas preparing an indictment, amassing dis-covery for a trial But somewhere along the line,the prosecutor became a witness.” She does a remarkable jobtracking down the truth about her father, a person of multi-ple and contradictory identities The book’s title, “In theDarkroom,” has a double meaning It refers to the job her fa-ther held altering images in a Manhattan photo lab and to thedark, mysterious side of her father’s volatile personality

Ms Faludi grew up with few details about her father’searly life She knew that his birth name was István Friedman,and that he was born and raised Jewish in Budapest, a child

of privilege whose family owned a villa and two luxuriousapartment buildings that were confiscated during the war.István had survived the Nazi occupation as a teenager bymoving from one hiding place to another In winter he’d seen

a frozen horse in the gutter and hacked off pieces to eat.He’d also saved his parents lives, posing as a member ofthe fascist Arrow Cross party with a purloined armband, hatand an old army rifle, marching them at gunpoint out of ahouse where they were being held for extermination The ac-counts her father gave of those incidents, Ms Faludi writes,

“were more snapshots than stories, visual shrapnel that tled around in my childish imagination, devoid of narrative.”Remarkably, after the war, her father changed Friedman toFaludi, calling it “a good authentic Hungarian name.” And af-ter moving to America in 1953, he married and had two chil-dren, changing his first name from István to Steven He in-sisted the family celebrate Christmas and Easter

rat-The marriage was not a happy one When Ms Faludi was

17, after her parents separated, her father broke into thehouse one night and attacked her mother’s boyfriend with aSwiss army knife He had planned his invasion and alibi someticulously that during the divorce proceedings he wasjudged as the injured party

Ms Faludi unfolds her father’s story like the plot of a tective novel “I had cast myself as a posse of one, tracking

de-my father’s many selves to their secret recesses,” she writes.She interviews her father’s transgender friends in Hungary,wades through stacks of files and photograph albums in herhouse, and visits family relatives in Israel where she discov-ers more long-hidden information, including another daringwartime rescue “My father, whose accounts of wartime valorI’d always suspected of inflation, was downplaying her cour-age.” She also learns that her grandparents were profoundlyneglectful of their only child: They hadn’t even bothered toattend his bar mitzvah

After the fall of Communism in 1989, Ms Faludi’s fathermade the decision to return to Hungary—a very odd choicegiven its dark history and its continuing anti-Semitism, andone that is never fully explained

Ms Faludi pays several visits to Stefánie in Budapest Shewonders how she will be able to reconcile the brutal manshe’d known as a child with a person who now identifies as

“a complete woman.” As she waits for her father at the port for the first time, Ms Faludi wonders: “Did she think sexreassignment surgery was a get-out-of-jail-free card, a quickfix to a life of regret and recrimination?” When she spots thefamiliar profile at the end of the queue, she notices that herfather’s hair, now henna-red, is her own and not a wig, andthat she’s wearing a gray flannel skirt, white high heels andpearl stud earrings Stefánie takes her white pocket book andhangs it from a hook on the luggage cart “My first thought,and it shames me, was: no woman would do that,” Ms Faludiwrites with typical candor

air-On her visits to Budapest Ms Faludi is horrified by highlyvisible signs of anti-Semitism she sees, but Stefánie seemsblithely unconcerned by the threat before her eyes On televi-sion they watch hordes of black-shirted supporters of theNeo-Fascist Magyar Gárda parade before the news camerasduring a national election, their caps adorned with golden li-ons and red stripes not unlike those of the Nazi Arrow Cross.Stefánie tells her daughter, “There’s no problem It’s democ-racy in action.” Over dinner one evening Ms Faludi asksStefánie which has been easier for her: “to be accepted as awoman after being born a man, or to be accepted as a Mag-yar [Hungarian] after being born a Jew?”

“My father thought about it for a few moments, holdingher spoon before her like a hand mirror ‘As a woman Be-

cause I am a woman–with a birth certificate that says I’m a

woman So I must be a woman.’” When Ms Faludi asks herfather what “identity” means to her, Stefánie responds that

“‘it’s what society accepts for you You have to behave in a

way that people accept, otherwise you have enemies That’s

what I do—and I have no problems.’”

Stefánie died in May 2015 at age 87 Was her strange turn to Budapest, a place hostile to Jews, gays and transgen-der people, more than anything an act of defiance? Ms Faludinever finds a clear answer

re-Ms Hodgson is the author of “It Seemed Like a Good Idea at the Time: My Adventures in Life and Food.”

István Friedman survived the Nazis He moved

to America, changed his name, raised a family Five decades later, he changed his gender too.

were its predictions and

rec-ommendations We are now

paying the price for this

cas-cade of folly

“Today, Osama bin Laden is

dead, and so are most of his

top lieutenants,” the president

boasted at the National

De-fense University, in

Washing-ton, D.C “There have been no

large-scale attacks on the

United States, and our

home-land is more secure.” The

“fu-ture of terrorism,” he

ex-plained, consisted of “less

capable” al Qaeda affiliates,

“localized threats” against

Westerners in faraway places

such as Algeria, and

home-grown killers like the Boston

Marathon bombers

All of this suggested that it

was time to call it quits on

what Mr Obama derided as “a

boundless ‘global war on

ter-ror.’ ” That meant sharply

cur-tailing drone strikes,

complet-ing the withdrawal of U.S

forces from Afghanistan, and

closing Guantanamo prison It

meant renewing efforts “to

promote peace between Israelis

and Palestinians” and seeking

“transitions to democracy” in

Libya and Egypt And it meant

working with Congress to

re-peal the 2001 Authorization for

President Canute and Orlando

Use of Military Force (AUMF)against al Qaeda

“This war, like all wars,must end,” he said “That’swhat history advises That’swhat our democracy de-mands.”

King Canute of legendstood on an English shorelineand ordered the tide to re-cede President Canute stoodbefore a Beltway audience andordered the war to end Nei-ther tide nor war obeyed

In 2010, al Qaeda in Iraq—

Islamic State’s predecessor—

was “dead on its feet,” as rorism expert Michael Knightstold Congress World-wide,the U.S government estimated

ter-al Qaeda’s totter-al strength at nomore than 4,000 fighters

That was the result of George

W Bush’s surge in Iraq, of Mr

Obama’s own surge in istan, and of the aggressivecampaign of drone killings inPakistan and Yemen

Afghan-But then the Obama trine kicked in Between 2010and 2013 the number of jihad-ists world-wide doubled, to100,000, while the number ofjihadist groups rose by 58%,according to a Rand Corp

Doc-study That was before ISIS

declared its caliphate

Today, the U.S governmentestimates that ISIS can count

on as many as 25,000 fighters

This is after a two-year

cam-paign of airstrikes to destroythe group In Libya alone, U.S

intelligence recently doubledits estimate of ISIS fighters, to

as many as 6,000 Even “core”

al Qaeda is surging again inits Afghan and Pakistaniheartland, thanks in part tothe military gains the Talibanhave made in the face ofAmerica’s withdrawal

Apologists for Mr Obamawill rejoin that it’s unfair toblame him for trends in ter-rorism, an argument thatwould have more credibility if

he hadn’t been so eager totake credit for those trendsonly three years ago Thesame apologists also claimthat the U.S cannot possiblycure what ails the MiddleEast, and that no law-enforce-ment agency can stop a lone-wolf terrorist such as OmarMateen

But these arguments fail

The rise of ISIS was a able result of Mr Obama’s ab-dication in Iraq and especiallySyria—a result Mr Obamahimself foresaw in his 2013speech “We must strengthenthe opposition in Syria, whileisolating extremist elements,”

predict-he said, “because tpredict-he end of atyrant must not give way tothe tyranny of terrorism.”

Was the opposition

strength-ened? Were the extremistsisolated?

As for lone wolves, onestudy from last year cited 38cases of “lone wolf” terrorismbetween 1940 and 2001, an-other 12 during the eightyears of the Bush administra-tion—and more than 50 sincethen

The phenomenon is ing in part because ISIS iscanny at using the internetand social media to attractand activate recruits Butwhat ISIS mainly does is giveaimless and insignificantyoung men what most youngmen secretly crave—a causeworth dying for When Mr

catch-Obama attempts to reassureAmericans by suggesting, as

he did Monday, that Mateenwas not part of “a largerplot,” he demonstrates onceagain that he doesn’t under-stand the enemy ISIS, alQaeda and other jihadistgroups are not criminal con-spiracies They are a reli-gious movement No coordi-nation is required for thetrue believer to put his faithinto action

It would require more mility than Mr Obama is ca-pable of mustering to admitthat what happened in Or-lando is also a consequence ofhis decisions—of allowing Iraqand Syria to descend to chaos;

hu-of pretending that we couldcall off the war on terror be-cause fighting it didn’t fit apolitical narrative; of failing

to defeat ISIS swiftly and terly; of refusing to recognizethe religious roots of terror;

ut-of treating the massacre inSan Bernardino as an opportu-nity to lecture Americansabout Islamophobia, and Or-lando as another argument forgun control

This is the president’s cord His successor will have

re-to do better re-to avoid futureOrlandos Will she?

Write bstephens@wsj.com.

Barack Obama

discovers too late that

he cannot order the

tide of war to recede.

“I have never

made but one

Donald Trump Because in this

election year, the people who

most object to Mr Trump

ap-pear to be doing the most to

boost his popularity Their

lat-est contribution comes as

America is still reeling from

the ISIS-inspired massacre at

an Orlando nightclub

On Sunday morning, the

na-tion awoke to the news that

nearly 50 innocent people had

been murdered by a gunman at

Pulse, a gay nightclub in

Orlando Soon they would

learn the shooter was

29-year-old Omar Mateen, born in

America to parents of Afghan

origin

In other words, a

heavily-armed man with Afghan

par-ents and a Muslim name had

targeted a gay nightclub for

his bloody rampage And yet

watched those Sunday press

conferences on their TV sets,

they were treated to a parade

of officials, including the

obligatory imam, all reluctant

to connect the killer with

any-thing suggesting Islam

At 1:59 p.m it was the

pres-ident’s turn

Though he did call the

slaughter at Pulse an “act of

terror,” anyone relying on

Trump Plays the Radical Islam Card

Barack Obama for a read of thesituation would have had noidea that the killings at a Flor-ida nightclub might have beeninspired by the same ideologybehind the forces still confront-

Afghanistan and Iraq

Now ask yourself: Does thisundermine the Trump message

or fuel it?

On Monday, after a securitybriefing, President Obama con-ceded the shooter was “in-spired by various extremist in-formation” online His solereference to what this might

be was a line about the versions of Islam that you seegenerated on the internet.”

“per-Characteristically Mondayfound Mr Trump repeating hiscall for a temporary ban onMuslims Let’s stipulate thiscall is all his critics say it is:

overly broad and not wellthought out, given, for exam-ple, that to defeat the Isla-mists making war on America

we will need the full assistanceboth of Muslim nations and in-dividual Muslims, not leastMuslim Americans

But Mr Trump’s commentsare not received in a vacuum

They come in the context of anObama administration and aHillary Clinton campaign that,

15 years after al Qaeda ers flew civilian airliners intobuildings in New York andWashington, still have troubleacknowledging radical Islam as

hijack-a motivhijack-ating force

At a Democratic tial debate in November, Mrs

presiden-Clinton was asked whether herfailure to use the phrase “radi-cal Islam” was a sign she had a

weak policy Back then sheducked, but post-Orlando Mr

Trump has successfully forcedthe issue So on Monday Mrs

Clinton answered by declaringshe is “happy to say” either

“radical jihadism or “radicalIslamism.”

But she added an tently telling point: Thosepushing the language aboutradical Islam, she suggested,are trying to “demonize anddemagogue and declare war on

Notwithstanding Mr nick’s claim that it “feels inde-cent on such a day to engagethese comments of Trump’s atall,” the tone suggests it feltpretty good The particular in-decency in question was aTrump tweet saying the massmurder in Orlando had provenhim right about the Islamistthreat to Americans

Rem-Funny how no one finds itindecent when Mr Obama uses

a shooting to justify his callfor gun control And wherewas Mr Remnick when Mrs

Clinton tweeted that “BernieSanders prioritized gun manu-facturers’ rights over the par-ents of the children killed atSandy Hook”?

Leave aside that the term

“radical Islam” itself marks adistinction between violentjihadists and peaceful Mus-lims The greater irony here isthat Mr Trump and Mrs Clin-ton may not be as far apart asmay appear on ISIS Both em-phasize an air war: While Mr

Trump says he would bombISIS oil fields, Mrs Clintonembraces the Obama fictionthat we can do the job with afew Special Forces and a goodbombing campaign Neitheraddresses the hard truth thatdefeating ISIS will require amuch greater U.S commit-ment, probably including moreground troops

Even so, at least for now,

Mr Trump benefits His guage on Muslims and theMiddle East may be crude andunnuanced But it’s not hard tounderstand its popular appealwhen set against a presidentand his secretary of state whoalmost always invoke Islamonly when it’s time to lecturetheir fellow citizens aboutanti-Muslim bigotry

lan-Mr Trump often complainsabout how unfairly he’streated by his critics If he un-derstood what folks such as

Mr Remnick are doing for him,he’d put them on the payroll

Write to mcgurn@wsj.com.

The GOP candidate forces Hillary Clinton

to address language she has avoided.

MAIN

STREET

By William

McGurn

From “The Parlance of

Pi-lots,” by Mark Vanhoenacker, a

British Airways senior first

officer, for Aeon online, June 9:

Imagine a plane that flies

from London to Bangkok The

pilots speak first to British

air-traffic controllers but, just

a few minutes after takeoff,

the British controllers hand

them over to Belgian or Dutch

ones, who soon pass them to

German controllers, and then

to Czech, to Hungarian, to

Romanian, to Turkish, to

Ira-nian ones, and so on

In flight, pilots are listening

not just to controllers, but also

to other pilots—Thai pilots

re-turning from Paris, Russianpilots on their way to theMaldives, and pretty muchevery other conceivable com-bination of origin, destination,flag and crew nationality Thewhole world is in the sky

It’s hard to imagine a tem more in need of a com-mon language And that lan-guage is English (or English-derived Aeroese) When aVenezuelan pilot speaks to aNew York air-traffic controller,

sys-or when a pilot from Brooklynspeaks to a controller in Cara-cas, they speak in English It’ssomething to marvel at, thefirst time you fly to Tokyo, say,and you hear an exchange be-

tween a Japanese pilot and aJapanese air-traffic controller,both speaking carefully inJapanese-accented English It’sstandardisation and globalisa-tion by force of bare necessity,

by force of speed .When planes speak, theyspeak English, and more oftenthan not with a male voice:

‘TRAFFIC, TRAFFIC’, to callour attention to another air-plane; ‘ONE HUNDRED’, amongother heights, as we come in

to land; ‘MONITOR RADARDISPLAY’ in certain weatherconditions

My favourite airplane calisation is the ‘DECIDE’ call,which I first heard on that 747

vo-flight from Tokyo to London,when I was a wide-eyed andwide-eared guest in the cock-pit The ‘DECIDE’ call comes

in a female, English-accentedvoice (on the 747s that I fly)that we hear as we reach thealtitude or height at which wemust either have sight of therunway environment or breakoff the approach ‘DECIDE’,the plane implores, a deci-sion-making tool that I’veoccasionally wondered aboutturning into an app to bedeployed in meeting rooms inthe corporate world or aca-demia Career counsellorsmight like it too—it certainlyworked for me

Notable & Quotable: ‘The Parlance of Pilots’

A14 | Tuesday, June 14, 2016 THE WALL STREET JOURNAL.

What Cure for Foreign Students’ Cheating?

The Journal is covering an tant and controversial issue that ev-eryone avoids for fear of fueling racistsentiments, but the numbers uncov-ered do show that cheating among in-ternational students in U.S colleges is

impor-a problem (“Foreign Students MoreLikely to Cheat,” page one, June 6)

According to the California Budgetand Policy Center, state funding perstudent at the University of CaliforniaSystem is now at a 30-year low Inter-national student revenue helps bal-ance budgets but creates a raft of newproblems for professors and interna-tional students alike Dealing withbreaches of academic honesty is onlyone of the more vexing ones

Nobody is suggesting that all national students cheat In large lec-ture courses, poorly paid teaching as-sistants are often on the front lines ofenforcement Administrative denialstems from fear of appearing racist orantiforeigner Unfortunately, this si-lence only makes the atmospheremore toxic for international students

inter-It is time to have an objective sion about how we can make the sys-tem work better for everyone in-volved, including domestic andinternational students In public uni-versities, we have to confront the factthat a new revenue stream brings with

discus-it a set of new ethical, administrativeand pedagogical challenges

P ROF. C ATHERINE L IU

UC Irvine Irvine, Calif.

What Americans perceive as ing is perceived by Asians as a form ofrespect The Asian culture believesthat using a person’s words or ideas is

cheat-a wcheat-ay of demonstrcheat-ating respect forthat person Because China is a “high-context” culture (everyone learns thesame ideas and quotes the same peo-

ple), they do not need to place tions around a quote or to cite asource because everyone knows whosaid the original quote or whose idea

quota-is being dquota-iscussed Asian students arealso taught through modeling andmemorizing Repeating the samewords verbatim that they have read is

a sign of a good student

Just providing warnings about giarism, which is what most universi-ties do, doesn’t help these studentsunderstand what plagiarism is Theyneed to have a lesson in contrastivecultures that specifically discussesthe differences between the Asianidea of modeling and demonstratingrespect and the American concept ofplagiarism in order for them to un-derstand the difference between whatthey do and what is done in Americanuniversities

pla-P ROF. C AROLYN B OIARSKY

Purdue University Northwest

Hammond, Ind.

I am an engineering student at aprivate university and my honest hardwork is undermined and devalued bythe immense amount of foreign cheat-ing I have experienced firsthand Ifstudents are aware of cheating, it ishard to believe professors are in thedark In essence, U.S schools toleratethe same practice of copying and foulplay that plagues American businesswith foreign patent infringement andindustrial espionage When we toler-ate ethically questionable behavior inschool, we fast track individuals withpoor morals to steal American patentsand profit from others’ success.School administrators must learn it’sour country and our rules, and if stu-dents don’t play by them, there’s noplace for them in American academia

M ICHAEL S TEWART

La Grange Ill.

LETTERS TO THE EDITOR

Letters intended for publication should

be addressed to: The Editor, 1211 Avenue

of the Americas, New York, NY 10036,

or emailed to wsj.ltrs@wsj.com Pleaseinclude your city and state All lettersare subject to editing, and unpublishedletters can be neither acknowledged norreturned

Progressive Media Creatives Get Their Reward

Peter M Lenkov suggests (“TheFCC Hoists the Jolly Roger on YourCable Box,” op-ed, June 8) that theonly winners of set-top box unlockingwill be nefarious Silicon Valley BigTech, which, he claims, “will be free tomake money off your data, includingselling advertising based on showsyou watch.”

When consumers have choice, theywill be free to choose their set-top boxsystem based on criteria including pri-vacy Freedom to choose also providesfreedom to ensure one’s own privacy,instead of trusting a web of “regula-tory agreements and contracts thatevery cable and satellite company hasnegotiated with the networks thatown and distribute content.”

D ANIEL F . B ELIN

Reston, Va.

Internet businesses were running

on all cylinders of creativity, tion and growth before net-neutralityrules were issued to regulate industrypractices As Mr Lenkov notes, similarcreative and competitive dynamicswere producing numerous alternatives

competi-to watch content on TVs without cableboxes, so the FCC’s regulatory over-reach was a fix for a problem alreadyaddressed by the marketplace

Mr Lenkov’s fellow Hollywood atives have been instrumental inblessing us with a political class that

cre-is intent on regulating most aspects ofour lives If 50% of the monetary re-ward for hard work can be taken byWashington’s creatives because othersneed the money more, policies thatlighten the wallets of Hollywood’s cre-

atives before they make outrageous(by non-Hollywood standards)amounts of money seem fair Politicalcampaign donations by entertainmentindustry creatives generally showabout a 10-to-1 edge for liberal candi-dates Hollywood has the type of stat-ist regime it wanted and paid for.Washington’s hunger games now pitBig Tech cronies against Hollywoodcontent cronies What we are witness-ing isn’t good for free-market compe-tition and economic growth, but it isentertaining

S TUART G RAY

St Augustine, Fla.

Our neighborhood is served byTime Warner Cable as well as Fron-tier I think the FCC has the correctidea to make universal cable boxesavailable which can be purchased out-right instead of as it is today when thecost of the cable box or DVR is paidfor many times over by the cable sub-scriber All the devices listed by Mr.Lenkov, like Apple TV, Amazon Fire-stick, Roku, etc., won’t allow me toconnect to my cable company I stillhave to pay my monthly rental fee forthe cable-access box

I did buy a universal modem to nect to the cable company, and thesavings of not having to rent it paidfor the modem in just over a year Weall remember the telephone compa-nies that forced their users to renttelephones and the explosion of avail-able, inexpensive devices once thatpractice was stopped

con-E UGENE L EMAN

Indio, Calif.

Maybe Our Massive Debt Really Is a Problem

Francis X Cavanaugh (Letters,June 3) tells us that worry about thefederal debt is “baseless” becauseour children will “inherit the offset-ting asset of the Treasury securitiesissued to finance the debt So the netimpact of the debt on future genera-tions is zero.”

Is this the comedy hour? Our dren will inherit bonds that they willhave to pay off There is absolutely

chil-no value to our children from thosebonds which will help them offset thedebt we are leaving them No nationcan create wealth by borrowing and

spending money, and then saying tofuture generations, “don’t worry, youhave bonds to offset the debt.”

It would be funny were it not sosad

to bring in the auditors

D ICK M ELOY

Norwalk, Conn.

Given their devastating fate, howcould the Weimar Republic, Zimba-bwe and Greece have gone so wrong?

America Deserves Better

E ven amid a terrorist massacre on the

scale of Orlando, the American people

are getting more reasons to justify their

unhappiness with the political

class By which we mean the

day-after responses of

Presi-dent Obama and the two

pre-sumptive nominees, Donald

Trump and Hillary Clinton.

The American people deserve

a better strategy to defeat terrorism than they

are getting.

Mr Obama appears to be doubling down on

the evasions of the last eight years, as he tries

to prove to the last day that he isn’t George

W Bush The killer of 49 people, Mr Obama

said Monday, “appears” to have declared his

loyalty to Islamic State “at the last minute.”

Meaning exactly what? Presumably on the

Obama anti-terrorism scale of 1 to 10, we’re

still not at 10 on his watch because the

terror-ist slaughters in Orlando and San Bernardino

were “homegrown.”

Mr Trump’s remarks, on various TV shows

and in a speech in New Hampshire Monday,

gave little evidence he has talked to anyone in

the intelligence or foreign-policy communities

about the substantive details of addressing the

threat He suggested on TV that some of the

Or-lando club-goers should have had guns

“strapped to their ankles.” Mr Trump devoted

about 80% of his New Hampshire speech to

re-stating and defending his proposed ban on

Mus-lim immigration, with the proviso that it would

be “temporary,” once we can “perfectly screen

these people.”

But Mr Trump’s thoughts on what exactly

he would do to stop Islamic terrorism at its

source in the Middle East weren’t much more

than a footnote On the one hand, he rightly said

the goal must be to defeat Islamic terrorism by

uniting the civilized world in the fight But

do-ing what?

His sustained assault on U.S involvement in

overthrowing Libya’s Moammar Gadhafi and

the “total disaster” of “nation-building”

sug-gests Mr Trump is more inclined to play to

iso-lationist sentiments in the U.S than discuss

military options for what even he calls the need

to “defeat Islamic terrorism.” An immigration

policy by itself cannot end that threat.

Mr Trump also made a great show Monday

of calling out Mrs Clinton and President Obama

for not saying the words “radical Islamic

terror-ism.” Word matter but battle plans matter more

against a terrorist enemy whose violence is

nur-tured in havens across the Middle East.

Mrs Clinton’s response—in TV appearances and then in a prepared speech in Cleveland—

was mostly a stage-managed walk through the aftermath of the Orlando massacre More than anything, she used the occasion as a political oppor- tunity to define her opponent

as a divider and herself as a bipartisan unifier against “all those who hate.”

She mentioned as always that she has a “plan”

to fight Islamic State.

Earlier in the day, however, Mrs Clinton did say one good thing about defending the U.S from terrorist attack: “We have the resources, rela- tionships and experience to get it done.” That is true, and that is the heart of the issue.

After Orlando, San Bernardino, Fort Hood, Paris and Brussels, the one question American voters need answered is which of these two can- didates will deploy the enormous intelligence and military resources of the U.S., enlist its al- lied relationships world-wide and use what it already knows about terrorism to deter future atrocities on American soil As of today, there

is little reason to think either candidate would deploy this existing U.S strength.

Most striking about the post-Orlando sponses of the two presumptive presidential

re-candidates is how carefully political they were.

With 49 Americans dead at a terrorist’s hand, the moment calls for some sense of the candi- dates’ counter-strategies But neither candidate appears willing to step outside his or her politi- cal comfort zones.

Mr Trump, by his own admission Monday, has been promoting a Muslim immigration ban for months But beyond that, where is he going?

Mrs Clinton’s supporters keep whispering she’s

a closet hawk, willing to do more than Mr.

Obama has to end Islamic State’s tion of the Middle East and Europe So far, she’s left the impression that her policy would be Obama 2.0—more bombing, perhaps, but no real strategy to destroy ISIS.

destabiliza-The two presidential candidates sound like opponents in a college debate trying to score rhetorical points Mr Trump keeps saying, “We must find out what is going on.” We know what’s going on We’ve known it since Islamic State rose to power during the Obama Presi- dency The American people have about five months to be given a better idea than they have now of what Donald Trump or Hillary Clinton will do about it.

Neither Trump nor Clinton are rising to the Islamic State threat.

LinkedIn and the Tech Valuation Boom

M icrosoft’s Monday announcement that

it’s buying LinkedIn for $26.2 billion

raises important questions about the

value of technology

compa-nies and stocks The deal also

carries policy lessons.

The software giant is

pay-ing $196 a share for the

social-media firm, a 50% premium

over Friday’s closing price.

Microsoft CEO Satya Nadella is shelling out

roughly seven times LinkedIn’s annual

reve-nues for a business that isn’t profitable and has

seen slowing growth despite its 433 million

us-ers LinkedIn allows these users to share

rolo-dexes, seek job opportunities and learn about

industry issues Most of LinkedIn’s revenue

comes from businesses seeking to identify

po-tential hires.

In a note to employees, Mr Nadella touted

“new experiences such as a LinkedIn newsfeed

that serves up articles based on the project

you are working on and [Microsoft] Office

sug-gesting an expert to connect with via LinkedIn

to help with a task you’re trying to complete.”

LinkedIn could also provide users of

Micro-soft’s sales software with info on potential

customers.

Mr Nadella has to take some risks because

Microsoft was late to embrace cloud computing

and has largely failed in the mobile arena

Per-haps the deal can keep Microsoft at the center

of corporate life.

But what about LinkedIn co-founder Reid

Hoffman? The billionaire likely doesn’t have

any particular need for liquidity, yet he’s

ac-cepting a price 27% below LinkedIn’s February

2015 high The nagging concern about this era’s

surging tech valuations is a subset of unease

about the stock market: Can a slow-growth

economy support high equity prices?

The stock gains of the Obama era are partly

a reflection of the resilience of American

busi-ness in a tough environment, but they may also result in part from the Federal Reserve’s monetary exertions Perhaps

Mr Hoffman decided this is the time to sell near the top.

It’s clear how government policies are shaping the financing of the LinkedIn deal As of March 31, Microsoft’s balance sheet held more than $105 billion in cash, cash equiva- lents and short-term investments You would think it would pay cash for LinkedIn.

But the U.S has the industrialized world’s highest corporate income tax rate and insists

on taxing foreign profits when they return to the U.S So according to Microsoft’s most recent quarterly report, nearly $103 billion of the cash was held “by our foreign subsidiaries and would

be subject to material repatriation tax effects.”

With the Fed still holding interest rates near zero, Microsoft plans to borrow most or all the cash to complete the purchase.

Another policy lesson is how a largely regulated tech industry has been able to drive innovation and displace incumbents Microsoft dominated the desktop computer era but now must battle to maintain its business in the era

un-of smartphones LinkedIn and other dia companies are disrupting a host of indus- tries, much as Google has changed the land- scape of marketing and advertising.

social-me-Contrast these markets with the highly ulated world of finance, in which a host of well- funded “fintech” companies struggle to chal- lenge the giants of banking Fortunately for Mr.

reg-Nadella, the market will judge the wisdom of his LinkedIn purchase, not politicians.

Microsoft is paying $26 billion for a money- losing social-media site.

Peru Keeps Driving Right

M ore good news from Latin America, if

you can stand it Center-right

candi-date Pedro Pablo Kuczynski has won

Peru’s presidential runoff

election Can Peruvians export

whatever they’re drinking to

Europe, or the U.S.?

Peru has been one of Latin

America’s fastest-growing

economies, with a falling

pov-erty rate, but slower growth of late has not kept

up with rising middle-class expectations

With-out deeper reforms, Peru’s capitalist revolution

could stall.

Mr Kuczynski, known as PPK, arrives right

on time, even if his margin was merely 40,000

or so votes Though his rival Keiko Fujimori lost

her bid to follow her father and former

presi-dent Alberto Fujimori, her Popular Force Party

won 56% of congress versus 14% for Mr

Kuczyn-ski’s party Peruvians seem to prefer divided

power.

Peru’s large black market continues to be a drag on development because it can’t provide access to credit Mr Kuczynski, a former fi-

nance minister and successful investment banker, made this

an issue in the campaign He argued that by cutting taxes and reducing the regulatory burden he could bring entre- preneurs into the formal econ- omy and boost government revenues With greater resources he promised to improve pub- lic security and make running water available

to all Peruvians.

Mr Kuczynski’s victory follows Argentina’s turn away from Peronism in November, and Brazil’s tentative steps toward pro-growth eco- nomics and cleaning up corruption Let’s hope

he can keep the free-market momentum going

in Lima and show how a more open, transparent economy can spread prosperity to even the poorest parts of the country.

The Latin American success story elects a center-right reformer.

REVIEW & OUTLOOK

OPINION

THE WALL STREET JOURNAL. Tuesday, June 14, 2016 | A15

OPINION

Saluting the Flag and Something More

On June 14, 1973, Mrs Saul, my

fifth-grade teacher at Beaver

Brook School in Danbury,

Conn., took the 12 of us in her class

outside to the flagpole to celebrate

Flag Day It had been nearly 200

years since the same date in 1777

when the Revolutionary Congress

ad-opted the Stars and Stripes as the

new country’s emblem June 14 has

been designated as Flag Day ever

since—though it’s a sad certainty

that most Americans will pass the

day without noticing

Until entering Mrs Saul’s class, I

had attended a Greek Orthodox

paro-chial school in Queens, N.Y., so when

we went out to the flagpole I

as-sumed this was something most

Americans did annually, and I’d just

been missing it But I now realize

this was probably something that

Mrs Saul—who was in her 70s—had

been doing since she became a

schoolteacher in the 1930s, and that

few Americans were doing it

any-more

By 1973, as the Vietnam War

con-tinued and Watergate unfolded, the

country had entered the era that

continues to this day, in which the

regnant narrative is more about what

America has done to repent of than

to celebrate A ritual like honoring

the flag was on the way out

Under the blue June sky we stood

in a circle around the flagpole and

then my trumpet teacher, Mr

Picca-rello, pulled out his gleaming silver

cornet and played “My Country, ’Tis

of Thee,” as we sang along

After that he played “Taps,” often

used at flag ceremonies It was

sono-rous and solemn and beautiful Those

moments over 40 years ago so

pricked my heart that I still think of

them with the deepest reverence

We 11- and 12-year-olds

under-stood that what we were doing was

somehow important, and that this

flag we were celebrating was morethan a red-white-and-blue banner Itwas a sacred symbol that pointedtoward something beyond itself, thatpointed to the thing it represented—

to America, the country we’d beenlearning about, the nation “born inliberty” and “dedicated to the propo-sition that all men are created equal.”

Without saying so, Mrs Saul wasdoing something profound: She wasteaching us to love our country Inthe process, we were being drawninto the circle of all those celebrat-ing that day, and into the largercircle of those who had loved Amer-ica throughout her history—and whohad been doing what BenjaminFranklin in 1787 had said we must

do, or else

The 82-year-old Franklin wasexiting Independence Hall in Phila-delphia, where he and others hadjust finished creating the Constitu-tion—and our nation—when a cer-tain Mrs Powell confronted him

“What have you given us, Dr lin,” she asked pointedly, “a monar-chy or a republic?”

Frank-Franklin’s response is famous: “Arepublic, Madam—if you can keep it!”

Standing around that flagpole 43years ago, we were doing our smallbut vital part in “keeping” the repub-lic We were thus becoming Ameri-cans not in name only, but in ourhearts and minds America is theonly nation not defined by ethnicity

or religion, but by an unprecedentedidea: liberty for all So to truly be anAmerican one must understand thatidea, and must buy into it, and live it

What we did that day was notindoctrination into some nationalis-tic, tribalist cause—God forbid—but

an invitation to something noble andtrue and eternal We were beingconnected to the “mystic chords ofmemory” of which Lincoln spoke,and to the sacrifices of all those whohad died for the country, and tothose still returning in coffins fromVietnam

We were becoming part of thing intended for everyone, but notyet possessed by everyone We werebeing entrusted with the great privi-lege of maintaining the flame of lib-erty, that others beyond our shoresmight see it and be drawn to it

some-So, my dear fellow Americans, aquestion: How well have we been

“keeping” this wild and fragile andunprecedented idea of a republicborn in liberty? Let me be the first toadmit: I’ve been sorely negligent Ireckon I’ve got to make up for aboutfour decades of lost time This FlagDay, I’m getting started I hope you’lljoin me

Mr Metaxas is the author of “If You Can Keep It: The Forgotten Promise of American Liberty,” just out from Viking.

By Eric Metaxas

A neglected June 14 ritual

could use a revival, helping

foster a love for country,

this nation ‘born in liberty.’

PUBLISHED SINCE 1889 BY DOW JONES & COMPANY

Chief Executive Officer and Publisher

EDITORIAL AND CORPORATE HEADQUARTERS :

1211 Avenue of the Americas, New York, N.Y., 10036

Telephone 1-800-DOWJONES

DOW JONES MANAGEMENT:

Ashley Huston, Chief Communications Officer;

Paul Meller, Chief Technology Officer;

Mark Musgrave, Chief People Officer;

Edward Roussel, Chief Innovation Officer;

Anna Sedgley, Chief Financial Officer;

Katie Vanneck-Smith, Chief Customer Officer

OPERATING EXECUTIVES:

Nancy McNeill, Corporate Sales;

Steve Grycuk, Customer Service;

Jonathan Wright, International;

DJ Media Group:

Almar Latour, Publisher; Kenneth Breen,

Commercial; Edwin A Finn, Jr., Barron’s;

Professional Information Business:

Christopher Lloyd, Head;

Ingrid Verschuren, Deputy Head

Rebecca Blumenstein, Matthew J Murray

Deputy Editors in Chief

DEPUTY MANAGING EDITORS:

Michael W Miller, Senior Deputy;

Thorold Barker, Europe; Paul Beckett, Asia;

Christine Glancey, Operations; Jennifer J Hicks,

Digital; Neal Lipschutz, Standards; Alex Martin,

News; Ann Podd, Initiatives; Andrew Regal, Video;

Matthew Rose, Enterprise; Stephen Wisnefski,

Professional News; Jessica Yu, Visuals

Paul A Gigot, Editor of the Editorial Page;

Daniel Henninger, Deputy Editor, Editorial Page

WALL STREET JOURNAL MANAGEMENT:

Trevor Fellows, Head of Global Sales;

Chris Collins, Advertising; Jason P Conti, Legal;

Suzi Watford, Marketing and Circulation;

Joseph B Vincent, Operations;

Larry L Hoffman, Production

Islam’s Jihad Against Homosexuals

hideous reminder to

Amer-icans that homophobia is

an integral part of Islamic

extremism That isn’t to

say that some people of other faiths

and ideologies aren’t hostile to

mem-bers of the lesbian, gay, bisexual and

transgender, or LGBT, community

Nor is to say that Islamic extremists

don’t target other minorities, in

addition to engaging in wholly

indiscriminate violence But it is

important to establish why a man

like Omar Mateen could be

moti-vated to murder 49 people in a gay

nightclub, interrupting the

slaugh-ter, as law-enforcement officials

reported, to dial 911, proclaim his

support for Islamic State and then

pray to Allah

I offer an explanation in the form

of four propositions

1 Muslim homophobia is

institu-tionalized Islamic law as derived

from scripture, and as evolved over

several centuries, not only

con-demns but prescribes cruel and

unusual punishments for

homosexu-ality

2 Many Muslim-majority

coun-tries have laws that criminalize and

punish homosexuals in line with

Islamic law

3 It is thus not surprising that theattitudes of Muslims in Muslim-ma-jority countries are homophobic andthat many people from those coun-tries take those attitudes with themwhen they migrate to the West

4 The rise of modern Islamicextremism has worsened the intoler-ance toward homosexuality Extrem-ists don’t just commit violenceagainst LGBT people They alsospread the prejudice globally bypreaching that homosexuality is adisease and a crime

Not all Muslims are homophobic

Many are gay or lesbian themselves

Some even have the courage toventure into the gender fluidity thatthe 21st century West has come torecognize But these LGBT Muslimsare running directly counter to theirreligion

In his 2006 book “Crime andPunishment in Islamic Law,” theDutch scholar Rudolph Peters notesthat most schools of Islamic lawproscribe homosexuality They differonly on the mode of punishment

“The Malikites, the Shiites and someShafi’ites and Hanbalites are of theopinion that the penalty is death,either by stoning (Malikites), thesword (some Shafi’ites and Han-balites) or, at the discretion of thecourt, by killing the culprit in theusual manner with a sword, stoninghim, throwing him from a (high)wall or burning him (Shiites).”

Under Shariah—Islamic law—

those engaging in same-sex sexualacts can be sentenced to death innearly a dozen countries or in largeareas of them: Iran, Saudi Arabia,Yemen, Sudan, the northern states

of Nigeria, southern parts of lia, two provinces in Indonesia,

Soma-Mauritania, Afghanistan, Qatar, theUnited Arab Emirates Death is alsothe penalty in the territories innorthern Iraq and Syria controlled

in June 2015

No fewer than 40 out of 57 lim-majority countries or territorieshave laws that criminalize homosex-uality, prescribing punishmentsranging from fines and short jailsentences to whippings and morethan 10 years in prison or death

Mus-These countries’ laws against

homosexuality align with the tudes of the overwhelming majority

atti-of their populations In 2013 thePew Research Center surveyed thebeliefs of Muslims in 36 countrieswith a significant Muslim popula-tion or majority, including askingabout their views of homosexuality

In 33 out of the 36 countries, morethan 75% of those surveyed an-swered that homosexuality was

“morally wrong,” and in only threedid more than 10% of those sur-veyed believe that homosexualitywas “morally acceptable.”

In many Muslim-majority tries—including Afghanistan, whereOmar Mateen’s parents came from—

coun-LGBT people face as much dangerfrom their families or vigilantes asthey do from the authorities

Perhaps not surprisingly, Islamicextremists condemn homosexuality

in the strongest possible terms TheMiddle East Media Research Insti-tute reported in 2006 that whenSheikh Yusuf al-Qaradawi, one ofthe world’s leading Sunni clericsand chairman of the EuropeanCouncil for Fatwa and Research, wasasked how gay people should bepunished, he replied: “Some say weshould throw them from a highplace, like God did with the people

of Sodom Some say we should burnthem, and so on There is disagree-ment The important thing is totreat this act as a crime.”

Such ideas travel In 2009 AnjemChoudary, an infamous London

imam and self-proclaimed “judge ofthe Shariah Court of the U.K.,”stated in a press conference that allhomosexuals should be stoned todeath Here in the U.S., MuzammilSiddiqi, former president of theIslamic Society of North America,has written: “Homosexuality is amoral disorder It is a moral disease,

a sin and corruption No person

is born homosexual, just like no one

is born a thief, a liar or murderer.People acquire these evil habits due

to a lack of proper guidance andeducation.”

Farrokh Sekaleshfar, a Shiitecleric educated in London, declared

of homosexuality in 2013: “Death isthe sentence We know there’s noth-ing to be embarrassed about this.Death is the sentence.” He wasspeaking at the Husseini Islamic Cen-ter outside Orlando Yes, Orlando Hespoke there again in April

These men express their hostilitytoward the LGBT community onlyverbally, but the Orlando attack washardly the first manifestation in theU.S of Islamist antigay violence.During a New Year’s Eve celebration

in the first hours of 2014, MusabMasmari tried to set fire to a gaynightclub in Seattle; he is serving 10years in prison on federal arsoncharges Law-enforcement officialssay that Ali Muhammad Brown, anISIS supporter who is now in prisonfor armed robbery, also facescharges for terrorism and four mur-ders, including the 2014 execution

of two men in Seattle outside of agay nightclub

Following the horrific attack inOrlando, people as usual have beenrushing to judgment PresidentObama blames lax gun laws DonaldTrump blames immigration Neither

is right There has been comparablecarnage in countries with strict gunlaws The perpetrator in this casewas born in the United States This isnot primarily about guns or immigra-tion It is about a deeply dangerousideology that is infiltrating Americansociety in the guise of religion.Homophobia comes in many forms.But none is more dangerous in ourtime than the Islamic version

Ms Hirsi Ali, a fellow at the vard Kennedy School, is the author

Har-of “Infidel” (Free Press, 2007) and

“Heretic: The Case for a Muslim ormation” (HarperCollins, 2015).

Ref-By Ayaan Hirsi Ali

The rise of modern Islamic

extremism has worsened

WHY WON’T THE WALL STREET JOURNAL?

A16 | Tuesday, June 14, 2016 THE WALL STREET JOURNAL.

IBM and its logo and ibm.com are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide See current list at ibm.com/trademark Other product and service names might be trademarks of IBM or other companies ©International Business Machines Corp 2016.

trends

Cognitive inventory is here.

When a product is“hot,”how do you keep the right

styles and sizes in stock and ready for customers to

buy? To help reduce lost sales, major retailers can

use cognitive technology to look at structured data

like sales reports and unstructured data like tweets

and weather feeds When your business thinks,

you can outthink.

ibm.com/outthink

* * * * THE WALL STREET JOURNAL. Tuesday, June 14, 2016 | A17

Another bash that drew an A-list crowd was DKC O&M’s annual Tony afterparty, at the Baccarat Hotel Composer Andrew Lloyd Webber, flanked by D.J.s AndrewAndrew, played a musical role.

For N.Y sports coverage, see A22

A couple paused Monday in front of the Stonewall Inn, a historic gay bar in Manhattan’s Greenwich Village, to remember the victims of the Orlando nightclub shooting.

To Probe

Clearly, having the stamina

to do eight shows a week isalso an asset on the party cir-cuit, especially on a marathonTony night

This year’s felt cially raucous, going wellinto the middle of thenight Blame it on “Ham-ilton” fever

espe-The Roundabout threw

an afterparty for “SheLoves Me” at the HardRock Cafe “School ofRock” took over Howl atthe Moon on West 52nd Street

to celebrate the Detroit dramateacher Marilyn McCormick,who received the Excellence inTheatre Education Tony And

“The Color Purple” went toHudson Terrace

Of course, the room (or

rooms) where it was reallyhappening was at the “Hamil-ton” party The productionthrew an extremely big bash atTavern on the Green that wasactually less Tony feteand more like a “Ham-ilton”-themed barmitzvah

Questlove took care

of the D.J duties,which meant there was

a consistently packeddance floor with a gold

“Hamilton” star at thetop Even Claire Danes andJesse Tyler Ferguson were en-thused enough to show off afew steps

Another feature at thisevent was a green-screenphoto booth, where you could

Please see TONYS page A20

The Tonys Afterparty?

CITY NEWS A18, A19 | THEATER A20 | ARTS & ENTERTAINMENT A21

WSJ.com/NY

A Gig to Dig

Are the Yankees Buyers or Sellers?

A day after the mass

shoot-ing in Orlando, New Yorkers

expressed a mix of sadness,

an-ger and resilience, and officials

moved to crank up security at

gay bars and other venues

across New York

At an event billed as a vigil

for victims in the Orlando

nightclub shooting, thousands

of people filled the streetsMonday evening outside theStonewall Inn, the GreenwichVillage bar that was a launch-pad for the gay-rights move-ment The event had sombermoments but also played out

as a spirited political rally, withspeeches about gun control andthe rights of lesbian, gay, bisex-ual and transgender people

With many waving rainbowflags, the crowd—of all agesbut skewing young—chanted

“Gun control now,” “We are lando,” and “Love trumpshate.” Many held signs bearingnames of gay and transgenderpeople killed in Orlando andelsewhere

Or-New York Gov AndrewCuomo addressed the crowd

and quickly seized on the control theme

gun-“The senselessness of it isstaggering,” the governor said,

in reference to the shooting,

“the frustration as a societythat would allow a mad man tobuy an assault weapon hasgone on too long.”

“How many people have todie before this federal govern-ment comes to its senses?” Mr

Cuomo asked, as the crowd plauded

ap-The gathering at the wall Inn was one of several vig-ils across the city as New York-ers tried to come to grips withthe biggest mass shooting inU.S history

Stone-At the vigil, Mayor Bill deBlasio urged Congress to pass

Mr de Blasio encouragedNew Yorkers to stand in soli-darity “We are all New Yorkers,

we are all Americans and, yes,

we are Orlando,” he said “I saythis to people all over theUnited States: Come to NewYork for the Pride parade.”

Nube Cruz, a 28-year-oldtenant-rights advocate, washanding out fliers calling atten-tion to several acts of violenceagainst gay and transgenderpeople The shooting in Or-

lando was “not a one-timething,” he said

As the vigil drew near, dreds arrived and jammedChristopher Street outside theStonewall Inn Signs read:

hun-“#keepkissing,” “NO to mophobia, NO to islamopho-bia.”

ho-Mytchell Mora, a old activist, said he wasn’t in-terested in hearing about morelegislation from the politicalspeakers but was hoping for a

26-year-“broader conversation abouthow homophobia and trans-phobia impacts our communi-

Please see PRIDE page A18

Massacre Prompts Tears, Resolve

In Greenwich Village,

thousands assemble in

mourning and solidarity;

‘We will protect you’

 More on the Orlando shooting A1, A4, A6-8

 Newtown debates guns A19

centers in the world,” said theartist

Unveiled late last week,

“Meridian (Gold)” sprays omized water into the air incolors correlating to real-timefluctuations in the price ofgold Every two seconds, acustom computer programscrapes the internet for num-bers—from markets in NewYork, London, Zurich, Torontoand Singapore—and adjusts acolor scale powered by LEDlights positioned inside thesquare structure, below themist

at-When magenta, the price ofgold is up; when aqua blue,the trend has gone down All

the while, the modulating ors serve as a measure ofsorts for human sentimentacross the globe

col-“The price of gold is not tached to supply and demandthe way that most commodi-ties are, but reflects feelingsabout economic and geopoliti-cal investment opportunities,”

at-Ms Tajima said “It’s an cator of how people feel,linked directly to things thatare happening It’s very vola-tile.”

indi-While she was installing thework last week, prices werebeing affected in real time, theartist said, by matters includ-ing a terrorist bombing in

Turkey and a tepid U.S jobsreport Uncertainty sends cer-tain investors to gold, raisingits price in ways that can beclearly discerned—even by un-witting passersby

“That’s very inviting,” saidKai Collins, a young motherstrolling through the parkwith her children “I want to

be in the middle.”

“I would get into it now,”said her friend Luise Chris-tiano

square, finished in faux crete, provides welcomingbench space, and its interior islined with water-resistant teak

con-Please see ART page A20

There is a new gold priceindex in town: a mysteriouscloud of pink and blue mistrising up by the riverside inLong Island City, Queens

The setting is Hunter’sPoint South Park, with a grandview of Manhattan across thewater The instrument: a tem-porary public artwork by thesculptor Mika Tajima thatlooks like a large square hottub and encourages viewers tohop in or stand back and take

in the colored mist

“You’re bathing in the price

of gold, basically, while facingone of the biggest financial

B Y A NDY B ATTAGLIA

In Queens, Art Rises From the Mist

It was mid-morning onTuesday, April 26, when NewYork Gov Andrew Cuomo heardthat the Westchester Countyhome of his longtime aide Jo-seph Percoco had just beensearched by federal agents.That revelation would trig-ger anger and dismay amongthe Democratic governor’sstaff, as well as resignationthreats and reconsideration ofthe administration’s plans forthe immediate future But per-haps the most pressing con-cern for many of them washow to handle the fallout, be-cause they knew the probe, led

by Manhattan U.S AttorneyPreet Bharara’s office, waslikely to become public.This account of how Mr.Cuomo and his administrationlearned of the investigationand attempted to manage thecrisis is based on interviewswith more than a dozen peopleinvolved in the process orprivy to it It shows a governorconcerned about the repercus-sions for his administrationand his own reputation, andstruggling with how to dis-tance himself from some of thecentral figures

In the hours after Mr coco’s home was searched—concurrent with searches ofthe Maryland home and Wash-ington, D.C., offices of Cuomoally Todd Howe—the gover-nor’s administration began de-

Per-Please see PROBE page A18

B Y E RICA O RDEN

Joseph Percoco, left, longtime aide to Gov Cuomo, is being investigated by the Manhattan U.S attorney.

Mika Tajima with mist rising from her installation, ‘Meridian

(Gold),’ on view at Hunter’s Point South Park in Long Island City.

A18 | Tuesday, June 14, 2016 * * * * THE WALL STREET JOURNAL.

from the U.S attorney’s officedemanding reams of docu-ments related to firms withstate contracts or business

Many of the companies weredonors to the governor, andmost had some affiliation withMessrs Percoco or Howe

On Friday morning, the ernor’s office began to executeits crisis-management strategy

gov-Two of Mr Cuomo’s top aides,

Mr David and Director of StateOperations Jim Malatras, calledBuffalo Billion-affiliated offi-cials such as State University ofNew York Polytechnic Institutehead Alain Kaloyeros to informthem of the internal probe

Minutes after 5 p.m on day, the governor’s office is-sued statements by Messrs Da-vid and Schwartz, and thematter erupted not just ontothe public stage but within theranks of the administration,where longtime staffers saidthey were incensed that Mr

Fri-Percoco might have mined their office’s reputation

under-Some were particularly set to learn that Mr Percocoand his wife received tens ofthousands of dollars in outsideincome while he worked as aCuomo aide and campaignmanager, since, they said, hehad been resistant to givingstaffers even meager raises

up-The fallout continued Inearly May, Mr Mulrow threat-ened to quit after the gover-nor’s office didn’t publicly de-

identified as one of the peoplenamed in the U.S attorney’ssubpoena Mr Mulrow with-drew his threat later, and Mr

David issued a statement fending him and others

de-“Not defending Bill Mulrow

or any current employees wasnever under consideration,”

the Cuomo spokesman said

Mr Malatras too has ered exiting A former SUNYofficial, Mr Malatras has been

consid-in talks to become president ofthe arts and engineering schoolCooper Union and met with thesearch committee May 23 Coo-per Union declined to com-ment

Throughout, Mr Cuomo hasstruggled to strike a balancebetween his relationship to hisfriend, Mr Percoco, and his de-sire to distance himself fromscandal

“I can’t say to the people ofthis state, ‘Don’t worry, noth-ing bad will ever happen,’” Mr

Cuomo said last month “What

I can say is, ‘If and when thing happens, we will havezero tolerance for any abuse.’”

some-—Rebecca Davis O’Brien contributed to this article.

CITY NEWS

Ric McCurdy, top Inside his Tribeca shop, above The artisan at work: ‘The thing that makes a guitar maker is drive,’ he said.

PROBE

The first name of architect

Rafael Viñoly was incorrectlygiven as Ralph in a Propertyarticle Monday about a leasedeal on Manhattan’s far WestSide

A map accompanying the

Open House article Saturdayincorrectly identified theSouth Norwalk neighborhood

in Norwalk, Conn., as SouthNorfolk

ties” and communities of color

in particular

On Sunday, Joseph Lozadawas already in tears when heapproached the entrance tothe Stonewall Inn

Staring at the flowers leftoutside of the historic gay bar

in tribute to those killed in a

Continued from page A17

We Want to Hear From You

Have something to say about

an article in Greater New York? Email us, along with your contact information, at gnyltrs@wsj.com Your letter could be published in our weekly Feedback column on Friday Letters will be edited for brevity and clarity Please include your city and state.

scene that Mr McCurdy hasbeen a part of since hemoved into his shop in 1991

An example is John teleone, a Long Island guitarmaker whose instrumentshave been displayed at theMetropolitan Museum of Art

Mon-“He’ll take an hour out of hisday to help me with a tech-nical problem nobody elsecould help me with,” Mr Mc-Curdy said “That’s thewhole industry.”

And there’s a small shrine

D’An-They respond to the slightesttouch.”

Mr McCurdy, 60 years

19 “My wife said, ‘Build thekids a guitar so they havesomething when you’regone.’ ” But he consideredukes more fun “George Har-rison always traveled withtwo in case he met someonewho wanted to jam.”

So Mr McCurdy craftedone for his son, with a skate-board trailing flames, andanother for his daughter, anaspiring baker, featuring acupcake

What distinguishes thebest guitar makers, for Mr.McCurdy, isn’t necessarily away with wood or planingtools “It’s not skill Skillcomes with repetition Thething that makes a guitarmaker is drive.”

The drive to make a low box ring like a bell “Ev-ery piece of wood is differ-ent,” he explained as he

hol-“tap-tuned” a guitar in ress, listening for the vibra-tions The sound changed de-pending on whether hetapped in the center or alongthe edges of the wood “Youcan’t just measure and go Ifyou build them all to thesame measurements, theywon’t sound good.”

prog-Mr McCurdy strummed afew chords of the Beatles’

“Paperback Writer” and JimiHendrix’s “The Wind CriesMary” on one of his guitars.Both the instrument andthe musician sounded excel-lent “If you can bring joy tosomebody’s life,” he said, “ifyou can bring pleasure tosomeone 100 years after mychildren are gone, what more

do you want from life?”

ralph.gardner@wsj.com

Picking a Life’s Work That Really Jams

Career advice these daysruns something like this: Fig-ure out what you love to do,what makes time stand still,and success will follow

Ric McCurdy takes aslightly more practical ap-proach “The best advice Igot was, ‘Take what you loveand make it your hobby.’

Then you’re not going to bebroke your whole life.”

However, his chosen

ing customguitars in asmall work-shop over-looking Hud-son Street inTribeca—

work—mak-seems equalparts careerand calling

“Repairingguitars paysthe rent,” he explained, histools neatly arrayed abovethe workbench behind him

“Making guitars feeds thesoul.”

To survive as a guitarmaker in New York City,

“you’ve got to have a niche,”

Mr McCurdy said “My niche

is performance jazz guitars.”

His clients include jazzgreat John Abercrombie andJimmy Vivino, who leads thehouse band for the TBS show

“Conan,” as well as the BlueMan Group and singer andsongwriter Kenny Loggins

Mr McCurdy’s initial quaintance with the instru-ment came as a musicianplaying bass in Southern Cal-ifornia in the early 1980s

ac-Then one evening, a drunk atone of his gigs emerged fromthe men’s room shouting,

“You’re the musicians—thetoilets are overflowing.’”

“I broke like a twig,” Mr

McCurdy confessed and toldhimself, “I’m never playingmusic for money again.”

Fortunately, a guitar that

he had made and was ing—he has been good withhis hands since his fatherproudly displayed the cars,boats and planes he made as

play-a child to their Connecticutneighbors—attracted the at-tention of John Hawk

“He’d made guitars forKeith Richards,” Mr Mc-Curdy recalled

Mr Hawk needed an sistant and offered to pay

as-Mr McCurdy and teach himeverything he knew

Such generosity guishes the artisanal Ameri-can guitar-making industry,especially the New York

Each guitar costs mately $10,000 and takes

approxi-100 hours to make Somehave beautiful inlaid work,such as a guitar with theChrysler Building carved intoits head

Then there are the les that Mr McCurdy madefor his children, now 21 and

ukule-‘Repairing guitars pays the rent.

Making guitars feeds the soul.’

URBANGARDNER

RALPHGARDNER JR

mass shooting in Orlando, Mr

Lozada said, “That could’vebeen me.”

The 26-year-old Bronx dent said he had been to Pulse,the gay nightclub where OmarMateen massacred dozens ofpeople

resi-“You just go out for a night

of fun and you get killed,” Mr

Lozada said “Why does thathave to happen?”

On Sunday in Queens, nizers held a vigil to celebrate

orga-unity with Muslims

“In New York, we have goodrelationships with the Muslimcommunity,” said DanielDromm, a gay City Councilmember who planned theQueens event “I don’t expectanything like that We have alot of gay Muslims in NewYork and we don’t want to seepeople pointing the finger atone another.”

Mr de Blasio said on day there would be an in-creased police presence, spe-cifically at LGBT sites

Mon-Organizers of the city’sPride Week, which includesmarches and rallies and runsJune 19-26, said no eventswould be canceled

“The reason is simple,” cording to a letter posted onthe website of NYC Pride, anonprofit organization thatplans the festivities “We mustnever let those who wish to si-lence us win.”

ac-Still, the shooting madesome New Yorkers hesitantabout the way they mightcarry out their daily lives

“There’s going to be sometrepidation,” said Lamar Daw-son, a 30-year-old West Har-lem resident who is originallyfrom Florida

“You’re thinking now, do Iwant to go out, do I want to go

to pride events? These clubsare so packed with people.”

PRIDE

CORRECTIONS  AMPLIFICATIONS

Readers can alert The Wall Street Journal to any errors in news articles by

emailing wsjcontact@wsj.com or by calling 888-410-2667.

Andrew Cuomo’s allies and aides, from left, lobbyist Todd Howe,

Director of State Operations Jim Malatras, Secretary to the

Governor Bill Mulrow and defense attorney Elkan Abramowitz.

veloping a plan Engaged from

the start was criminal defense

attorney Elkan Abramowitz,

who represented the executive

chamber during the probe

con-cerning the Moreland

Commis-sion to Investigate Public

Cor-ruption

Attorneys for Messrs

Per-coco and Howe didn’t respond

to requests for comment

By Tuesday afternoon, Mr

Cuomo had assembled a group

that the next day were huddled

at his Midtown Manhattan

of-fice, where they would remain

for two more days

The group included a coterie

of outside advisers: his former

senior aide Steven M Cohen,

former chief of staff Josh

Vlasto and former spokesman

Matt Wing It also comprised

internal officials, such as chief

of staff Melissa DeRosa,

Secre-tary to the Governor Bill

Mul-row, counsel Alphonso David

and longtime top aide Linda

Lacewell

The group considered hiring

its own investigator to probe

the economic-development

program of interest to federal

agents, the Buffalo Billion

Dur-ing the discussion, questions

arose among some internal

of-ficials about the sort of

confi-dentiality that might be

ex-pected from any investigator

the chamber might retain

Both Messrs Abramowitz

and Cohen, however, told

mem-bers of the office that if they

hired such an investigator, that

person wouldn’t have

attorney-client privilege The group

agreed to proceed

Over the next 48 hours, the

administration began to curtail

some plans, including canceling

a conference for Mr Cuomo’s

tax-incentive program Start-Up

NY, scheduled for May 5 in

Al-bany A Cuomo spokesman said

the cancellation wasn’t related

to the investigation

By Thursday, the office had

decided on former prosecutor

Bart Schwartz as its choice for

an internal investigator

Late Thursday, Mr Cuomo’s

office received a subpoena

Continued from page A17

madison @ 45th St • wall street • philadelphia • mysuit.com

custom clothing for the knowing man

The MySuit Gift Certificate

Shirts | Pants | Suits

THE WALL STREET JOURNAL. * * * * Tuesday, June 14, 2016 | A19

neighboring states, whileshifting some of the burden toout-of-state drivers, Mr

Oroho said The gas tax wouldgenerate about $1.4 billion inannual revenue, an estimated30% of which would be paid

by motorists from otherstates, he said

Sen Jennifer Beck, a

County, said in a statementthat she is steadfast in heropposition to the proposedgas tax increase She has pro-posed an alternative plan thatwould fund transportationprojects at $1.6 billion a yearthrough cuts to state em-ployee benefits and consolida-tion of state transportationagencies

Sal Risalvato, executive rector of the New Jersey Gas-oline, C-Store and AutomotiveAssociation, an industry advo-cate, said he has foughtagainst gas-tax increases for

di-30 years but now believes it isthe only way to fix the trans-portation trust fund He said

he doesn't think Ms Beck’splan would work

“The state is in a pickle and

I don’t have another solution

to offer,” Mr Risalvato said

Lawmakers have also posed phasing out New Jer-sey’s estate tax Under currentlaw, the state imposes a tax

pro-on transferring the assets ofdeceased residents if those as-sets are higher than $675,000,the lowest threshold in thecountry for this type of tax

Under the proposed plan,the threshold for taxing de-ceased residents’ assets wouldgradually increase until thetax is eliminated entirely inDecember 2020

The proposal would alsocreate a gross income-tax de-duction for charitable contri-butions made to New Jersey-based organizations Theannual deductions would belimited to $500 in tax year

2017 and gradually increase to

$2,000 by 2020

In total, the plan’s posed tax cuts would cost $1billion in annual state revenuewhen fully implemented

pro-Senate President SteveSweeney, a Democrat, said hethinks he can gather enoughsupport for the bills to over-ride a gubernatorial veto, ifnecessary Mr Oroho said hebelieves Mr Christie would ul-timately back the proposal

“Once the governor seesthe full impact of this—I have

to tell you I think it would behard for anybody to voteagainst this,” Mr Oroho said

Democrats in the Assemblyproposed a similar plan onFriday Speaker Vincent Pri-eto, a Democrat from HudsonCounty, said he would workwith Republicans and the Sen-ate to send a bill to the gover-nor by the end of the month

TRENTON—A proposal by

New Jersey lawmakers to fund

$20 billion worth of

transpor-tation projects over the next

decade would enact sweeping

changes to the state’s tax

structure, including a 23-cent

increase in the gas tax and

elimination of the estate tax

New Jersey’s

transporta-tion trust fund, which pays for

maintenance and repairs to

the state’s roads and bridges,

is deeply in debt and on track

to run out of money by July 1

Gov Chris Christie and other

Republicans have long said

they would resist raising the

gas tax without accompanying

tax cuts

On Monday, Mr Christie

spoke critically of some

as-pects of the bipartisan

pro-posal He questioned part of

the plan that would double

state aid for local

transporta-tion projects to $400 million a

year

Mr Christie described the

proposed municipal aid

in-crease as lawmakers giving

lo-cal officials “a payoff to

pro-tect their political backsides”

and indicated he would

op-pose that provision

“Is it a proposal worthy of

consideration? Of course it

is,” he said “But let me be

clear to you: If it’s not tax

fairness, I’m not signing it.”

A bipartisan group of

sena-tors detailed their plan to

shore up the transportation

fund during a news

confer-ence at the Statehouse

Mon-day Lawmakers said they

would introduce legislation

this week and hold hearings

on the proposal next week

The state’s current

14.5-cent a gallon gas tax covers

the transportation fund’s

ex-isting debt service, with no

money left over for new

proj-ects, lawmakers said The

state has been subsidizing

transportation projects from

its general fund, with $546

million in sales-tax revenue

set aside in this year’s budget

“Whose money is that?

New Jersey taxpayers’,” said

state Sen Steven Oroho, a

Re-publican from Sussex County

Under the proposed plan,

the state’s general-fund

con-tribution would be reduced,

with $200 million in annual

sales-tax revenue going to

transportation projects

Raising the state’s gas tax

to 37.5 cents a gallon would

keep the state’s gas prices

competitive, compared with

B Y K ATE K ING

N.J Lawmakers

Propose 23-Cent

Raise to Gas Tax

‘I have to tell you I

think it would be

hard for anybody to

vote against this.’

NEW YORK CITY

Penalties Lowered

For Minor Offenses

Mayor Bill de Blasio on

Monday signed a package of

eight bills that reduce penalties

for littering, public urination

and other minor offenses

The legislation, known as

the Criminal Justice Reform

CITY NEWS

The last days of New York’syearly legislative sessions aretypically stressful times, whenstate lawmakers hash out last-minute deals on issues liketaxes and abortion rights Thisyear, they are haggling overwhether to permit drinking be-fore noon at Sunday brunch

The session, which began inJanuary and is expected toconclude Thursday, is poised toend without much by way ofpolitical combat

Gov Andrew Cuomo listedhis priorities for the end of the

session in a news release onMonday that his office said wasalso sent to the state Legisla-ture The list includes mostlytopics of broad agreement:

fighting heroin addiction; creasing access to breast-can-cer screening and treatment;

in-improving railroad safety; andrevising state alcohol laws

Mr Cuomo and legislativeleaders have already an-nounced deals on the breast-cancer measure and a law formore frequent inspections ofrailroad safety

Mr Cuomo, a Democrat, alsoincluded two controversial

ideas that have loomed overthe legislative session—“com-prehensive ethics reform” andcountering the influence ofmoney in politics—but didn’t

go into detail

Since the convictions lastyear of two former New Yorklegislative leaders, Mr Cuomoand state lawmakers havefaced calls to overhaul stateethics laws

Earlier in the session, Mr

Cuomo proposed closing a legalloophole that allows companies

to circumvent donation limits,but Republican lawmakers havebeen dismissive of the idea

One ethics proposal appears

to take aim at New York CityMayor Bill de Blasio Mr

strengthen disclosure ments and other regulationsaround independent expendi-ture committees, fundraisingarms that can receive big dona-tions by remaining officiallyautonomous from the personthey support

require-Allies of Mr de Blasio, aDemocratic foe of Mr Cuomo’s,are under investigation in con-nection with such a committee

Mr de Blasio and his allieshave denied wrongdoing

Albany Session Nears a Quiet End

Coun-The laws encourage policeofficers to issue civil summonsinstead of criminal ones for lit-tering, public urination, violat-ing parks rules, making unrea-sonable noise and otheroffenses

Ms Mark-Viverito, who gotiated terms of the legisla-tion with New York PoliceCommissioner William Brattonfor more than a year, said thebills would prevent about10,000 people from having acriminal record

evi-A Manhattan jury found seph Giardala, 46 years old,guilty of rape, robbery, sodomyand sexual abuse

Jo-Prosecutors at the Manhattandistrict attorney’s office said Mr

Giardala robbed the woman atknife point and then raped herwhen she was walking homefrom a movie theater on Jan 23,

1995 An attorney for Mr Giardalacouldn’t be reached for comment

Mr Giardala was identifiedbecause a DNA profile in a na-

tional database matched thattaken as evidence immediatelyafter the attack He is scheduled

About 4.5 million people came

to Lincoln Center for the forming Arts last year, with out-of-town tourists spending nearly

Per-$670 million beyond ticket costsduring their visits to New YorkCity, according to an economicimpact report the organizationreleased Monday

The report said the ing-arts campus generated15,802 jobs during the 2014-15

perform-season and contributed a total of

$2.4 billion to the city’s economy

That figure included $785.4 lion spent by Lincoln Center’s 11resident arts organizations and

mil-an estimated $647.9 million ofindirect expenditures generated

by those groups, such as ing by employees and suppliers

spend-Also factored in: $1 billion inestimated direct and indirectspending by Lincoln Center tour-ists

—Jennifer Smith

MANHATTAN

Stuyvesant Principal

To Take Another Job

The principal of New YorkCity’s elite Stuyvesant HighSchool, Jie Zhang, announced

Monday that she is leaving inJuly after four years in the post.Her letter said she plans to

be superintendent of the NewYork Military Academy, a privateboarding school in upstate

Ms Zhang was born andraised in China before arriving inthe U.S in 1985 She taught atRikers Island, among other posts,before leading Stuyvesant, one

of eight specialized New YorkCity public schools that admitsstudents based on a score on asingle exam

The school has long been icized for its lack of diversity,and the city recently announcedplans to boost outreach and testpreparation for the entranceexam

Erica Lafferty Smegielski,the daughter of Sandy Hook El-ementary principal DawnHochsprung, who was killed atthe school, said the Orlandoshooting on Sunday left hershaken

“The toll that it takes every

time when something like thishappens, I honestly don’t evenhave a word for it,” said Ms

Smegielski, senior outreach sociate at Everytown for GunSafety, which supports stron-ger gun laws “It just bringsyou back to that day.”

as-Ms Smegielski said gress should make backgroundchecks mandatory for buyingguns and should ban those onfederal watch lists from pur-chasing firearms

Con-Other family members ofthose killed at Sandy Hook Ele-mentary have filed a wrongful-death lawsuit against the man-ufacturer of the rifle used inthe Sandy Hook shooting,claiming it was liable for pro-ducing and selling a weapon

unfit for civilian use

Josh Koskoff, an attorneyfor the families, said the shoot-ing in Orlando provided an-other example why civiliansshouldn’t be able to ownAR-15s

“It is the gold standard forkilling the enemy in battle, just

as it has become the gold dard for mass murder of inno-cent civilians,” Mr Koskoffsaid

stan-Remington Arms Co., themaker of the rifle used in theshooting, has said those claimsare without merit and the fed-eral Protection of Lawful Com-merce in Arms Act doesn’t al-low wrongful-death claimssuch as the one filed by theSandy Hook families

The nightclub killings in lando, Fla., have reignited thedebate over federal gun laws inConnecticut, where the 2012shooting at Sandy Hook Ele-mentary School still weighsheavily on residents

Or-Police said they found ahandgun and AR-15-type as-sault rifle on the gunman, iden-tified by police as Omar S Ma-teen, who lawfully purchasedthe weapons The rifle was thesame type used at Sandy HookElementary in Newtown, Conn.,where 20 children and six adultstaff members were slain

Connecticut U.S Sens ard Blumenthal and Chris Mur-phy, both Democrats, alongwith U.S Rep Elizabeth Esty, aDemocrat who represents New-town, called for stronger fed-eral gun laws Monday, includ-ing reinstating a federal ban onso-called assault weapons andbanning people on federalwatch lists from buying guns

Rich-Local advocacy groups town Action Alliance and Con-necticut Against Gun Violencealso renewed calls for theweapons ban

New-“We in Connecticut felt aspecial shock and horror atthis act of mass murder…,” Mr

Blumenthal told reporters inHartford “Prayers and plati-tudes are insufficient Theremust be action.”

Gun-rights advocates inConnecticut, who opposed newstate gun laws that were insti-tuted after the Sandy Hook Ele-mentary shooting, said addi-tional federal gun regulationwouldn’t prevent future crimes

“Once again our two

A Valero station in Hoboken State lawmakers are proposing to

raise New Jersey’s gas tax from 14.5 to 37.5 cents a gallon.

A20 | Tuesday, June 14, 2016 * * * * THE WALL STREET JOURNAL.

‘Hamilton’ Is Headed

To the London Stage

DJ Questlove kept the ilton” party grooving after theTony Awards until well after 4a.m at Tavern on the Green, astweeted by actor Rory O’Malley,the show’s new King George.But things kicked up a notch

“Ham-at 5 a.m with the official details

of “Hamilton” in London: Themusical will open in October

2017 at the Victoria Palace atre, now undergoing a majorrenovation Theater owner Cam-eron Mackintosh, producer of

The-“Cats” and “Les Misérables,” willjoin as a producer

Lloyd Webber Makes

An Educational Grant

After creating the musical

“School of Rock,” composer andproducer Andrew Lloyd Webber isabout to rock actual schools withphilanthropy On Sunday, Mr.Webber announced a $1.3 milliongrant to support theater educa-tion in American public schools.The program, in partnershipwith the American TheatreWing, will have three main com-ponents: providing equipmentand materials for new and exist-ing theater programs; fundingscholarships and summer studyfor select students; and provid-ing four-year partial universityscholarships

‘Hamilton’ Crosses Box-Office Milestone

“Hamilton” grossed $2 millionfor the first time, hunting down

“The Lion King,” which was stillthe top-grossing musical in theweek that ended Sunday, ac-cording to data provided by theBroadway League

While the impact of Sunday’sTony broadcast is yet to come,sales remain strong for “School ofRock,” which grossed more than

$1 million last week, as did ress,” which set a record at theBrooks Atkinson Theatre “ShuffleAlong” grossed $972,860, upslightly from the week before

At the Plaza party, Jessica Lange, top right; Cynthia Erivo,

in purple; and Jalene Goodwin and Daveed Diggs, far right.

At the Baccarat Hotel, Ivo van Hove, left, and Eleanor Lambert and her mom, Diane Lane, below.

At the opening of thebroadcast, Mr Corden read astatement written that day toset the tone: “Your tragedy isour tragedy Theater is aplace where every race,creed, sexuality and gender isequal, is embraced and isloved Hate will never win.”Costume designer ClintRamos, who won for his work

on “Eclipsed,” said he felt aresponsibility to mention theOrlando shootings because,

as he put it, “the target was

an extended part of our munity.”

com-His remarks spoke to howhealing the art form and itsparticipants can be: “The the-ater has been my savior inthe darkest, darkest of times

in my life.”

For his part, “Hamilton”producer Jeffrey Seller reiter-ated the emotional impera-tive of going on with theshow In 1996, he lost hisfriend, playwright JonathanLarson, on the day of thefirst off-Broadway preview of

Mr Larson’s play “Rent.” As

Mr Seller said: “The onlyway to honor Jonathan was

to do ‘Rent.’ ”

—Kathryn Lurie contributed to this article.

love” and “love cannot bekilled or swept aside.”

“You can’t let that ment go by,” he said “The-ater doesn’t exist without theLGBTQ community.”

mo-Actor Frank Langella,starring on Broadway in “TheFather,” rewrote his remarksafter his matinee perfor-mance “Around 5:30 or 6, Itore up the original speech,”

he said after winning for best

collaborators decided toeliminate muskets from theirperformance of “Yorktown,”

an imagined battle scene

“Tonight is not a night wewant to see people dancingwith guns,” Mr Miranda said

He used the time betweenthe rehearsal and ceremony

to write the sonnet he formed as one of his accep-tance speeches, which in-cluded the phrase “love is

per-Wing, led an effort in thebasement of the Beacon tomake 3,000 silver ribbonsthat could be worn on lapels

as signs of support On thered carpet, he said, “Wewanted to open our arms andshow love.”

Lin-Manuel Miranda, ator of “Hamilton,” said hehadn’t heard the news untilafter the rehearsal That af-ternoon, Mr Miranda and

cre-But the news was alreadyhaving an impact on the fes-tivities: At 11:44 a.m., theevent’s organizers posted astatement on the Tonys Face-book page saying they woulddedicate the night’s cere-mony to those affected bythe Orlando shooting

In the afternoon, WilliamIvey Long, the costume de-signer who is also chairman

of the American Theatre

As news broke Sunday

morning about the mass

shooting at a gay nightclub in

Orlando, Broadway made

swift adjustments for a show

that truly must go on: the

Tony Awards

Ahead of the 8 p.m

broadcast, speeches were

written and rewritten Silver

ribbons were crafted into

pins And by the end of the

day, messages of

theater-world inclusiveness became

an especially reassuring

theme within the Beacon

Theatre and on TV, where

viewership reached nearly 9

million, a level not seen in 15

years, according to early

esti-mates

At a news conference on

Sunday, New York Police

De-partment officials said the

city would boost security at

sensitive sites, but didn’t cite

the Tony Awards specifically

The Broadway League and

American Theatre Wing,

co-presenters of the awards, and

CBS, which broadcast the

show, all declined to

com-ment about any security

ad-justments for the event

On Sunday morning, a

re-hearsal for the Tony

perfor-mance took place from 10 a.m

until about 1:40 p.m., without

mention of the attack

After Orlando, the Tonys Rescript

B Y P IA C ATTON

ters of finance are thought to

be rational and programmatic,she said, they can also be il-logical and arbitrary

“It’s absurd to think youcan actually quantify some-thing like emotion,” the 40-year-old Brooklyn-based artistsaid “What does that evenmean?”

But numbers turn out to bepretty good fodder for visualpoetry

“I like the idea,” Ms Tajimasaid, “of gold prices disap-pearing into the air and blur-ring into the sky.”

upstate “I think the childrenwill get refreshed.”

Brian Dodson, a hood local, imagined thepiece—which remains in placeuntil September—will be a fea-ture for frequent summer vis-its to the park “It clears myhead, and I’ll be enjoying themist now,” he said, before con-sidering the causes behind thecolors’ variations

neighbor-“It will calm me,” Mr son added, “and stress meout.”

Dod-Ms Tajima welcomes themixed reactions While mat-

ruti said “In the park, you’reenjoying this leisure activity in

a nice state of mind, but thesculpture is also manifestingthis other platform of reality.”

Reactions to the piece at itsopening, held as the sun setover Manhattan last Thursday,were varied

“I thought maybe it was ahot tub but looked inside andsaw colored lights,” said JudyHarrison, a tourist fromGainesville, Ga

“Is it meant to refresh ple?” asked Valerie Medina, apre-med student visiting from

peo-land City since 2002 The lection was part of a new pro-gram at the center thatdelegated the jury process to agroup of eight high-school stu-dents engaged as a panel ofcurators

se-Mary Ceruti, ter’s executive director andchief curator, found theirchoice to be timely and multi-layered

SculptureCen-“The value of gold is tied totraders on the floor but alsohow people in general are feel-ing about their lives and po-tential for the future,” Ms Ce-

The “Hamilton” party ally committed to grilledcheese

re-Glenn Close, Andrew LloydWebber, Mariska Hargitayand Jake Gyllenhaal wereamong the luminaries here

Mr Gyllenhaal was especiallyhappy that a bit about shar-ing gum with host JamesCorden and Sean Hayes wentover well during one of theTony broadcast intermis-sions

“I’m glad it hit,” said Mr

Gyllenhaal

Mostly this was selfie tral, with people basicallyphone-stalking Lin-ManuelMiranda Of course, Mr

cen-Miranda wanted to take somephotos of his own, like one ofhis wife, Vanessa, with Mari-etta “Retta” Sirleaf (“Parksand Recreation”), MichelleWilliams and Busy Phillips

But when we left at 2 a.m.,this party looked like it could

go well into the morning

The main Tony gala, at thePlaza, wasn't nearly as rowdy

as Tavern on the Green,

though it didfeature its own brand

of gawking, at folks likeSteve Martin, Martin Short,Andrew Rannells, Lena Hall(who is doing a stint at theCarlyle this week), PatinaMiller, Sara Bareilles, BethBehrs, and Reed Birney andJayne Houdyshell, bothshowing off their gleamingnew awards

The first stop for mostguests here—beside the mainentry hall to pose for a fewphotographs—is Luke’s Lob-ster for a lobster roll

“I’m OK,” said DanielleBrooks of “Orange is the NewBlack” and “The Color Pur-ple,” when faced with lob-ster-roll mania “The line istoo long.”

Otherwise, Adrienne Arshtand William Ivey Long werehanging out at Frannie’sYoArt (she has her own fro-

yo machine at home in ami) and Mr Corden went insearch of his somehow mis-placed parents Jane Kra-kowski tried to convince usthat, indeed, Mr Corden isactually driving when hedoes those “Carpool Kara-oke” segments

Mi-“There are GoPros all overthe windshield,” explained

Ms Krakowski, who addedthe Broadway one was basi-cally filmed around five rela-tively uncongested Midtowncity blocks

The one rampant plaint at this year’s Plazaparty: The sushi bar was in-explicably closed

com-The evening continued atthe Baccarat Hotel where thepublic-relations firm DKCO&M threw its annual Tonyparty, which moved this yearfrom the Carlyle Hotel A defacto dance club called

“Disco Lloyd Webber” was

grooving on the second floor

When we ventured in, ever, the music wasn’t elec-tropop versions of “JesusChrist Superstar” songs, letalone from any other of hisblockbuster musicals

how-Among those who seemedperfectly happy to neverleave this party: Ivo vanHove, Diane Lane, VictoriaJustice and Reeve Carney (invery bell-bottomy bell bot-toms), George C Wolfe, JoeMantello, Sophie Okonedo,Brian Stokes Mitchell, ElainePaige and lots of cast mem-bers from “The Humans,”

“Shuffle Along” and “BrightStar.”

“The Humans” playwrightStephen Karam was the lastTony winner to arrive—at 5

in the morning, by the way—

when the festivities had ready moved up to the Bacca-rat suite on the 12th floor for

al-a singal-along al-around al-a whiteSteinway piano

It’s a good thing Broadwayshows are typically dark onMonday

superimpose yourself in the

“Hamilton” poster art, with

the Schuyler sisters or as

King George There were

white paper “Hamilton” sacks

to fill from jars of candy,

in-cluding Swedish Fish, Hot

Ta-males and Sour Patch Kids

Themed signature

cock-tails were comprised of many

ingredients we’ve never even

heard of Among them: the

“Venerated Virginian”

(Breuckelen 77, Campari,

Do-lin Dry and CioCiaro) and

“The Mind at Work” (Mount

Gay Black Barrel rum,

all-spice dram, demerara sugar,

lime bitters)

And there was food—so

much food—from steak

skew-ers to Mexican corn to grilled

watermelon to lobster tails to

not one, not two, but at least

three grilled cheese bars,

in-cluding offerings with three

cheeses, ham and truffle oil

Continued from page A17

TONYS

wood of a variety often used

in Japanese spas

The allusion is intentional

Ms Tajima said she thinks of a

spa as a place for

contempla-tion: “It’s a place to commune

over things that can’t be

quan-tified.”

The work was

commis-sioned by SculptureCenter, an

arts institution founded in

1928 and located in Long

Is-Continued from page A17

ART

At this year’s Plaza party, the sushi bar was inexplicably closed.

THE WALL STREET JOURNAL. * * Tuesday, June 14, 2016 | A21

(2012) is virtually without tures; we take it on faith thatthere is water below and skyabove

While he was famed and widelyexhibited in his day, Misonne’sreputation suffered with the re-pudiation of his style by theModernists; the 32 prints at DeLellis remind us why it was once

so admired Misonne maintained,

“The subject is nothing, light isall.” Nearly all the pictures arebacklit with a hazy sun, as ifseen in a reverie A string ofgirls walk along the shore in “La

Konttinen (b 1948) taken in theworking-class neighborhood ofByker in Newcastle-upon-Tyne innortheastern England, completethe show

Chip Hooper: California’s Pacific 2nd Set

 Robert Mann Gallery

525 W 26th St

212-989-7600Through July 1Chip Hooper (1962-2016)might be mistaken for a Pictori-alist; his pictures of large bodies

of water are noted for their softfocus and atmospherics But thefunction of those elements isnot so much sentimentalism ornostalgia as a nature-centeredmysticism In this, he is likeWynn Bullock, Minor White and,for that matter, the 19th-centurypainters of the Hudson RiverSchool Mr Hooper was born inChicago, and when he beganphotographing at an early ageLake Michigan was his subject

He subsequently took pictures

of many of the world’s oceansusing an 8-by-10-inch view cam-era; the large negative captures

a lot of detail, like the little ples before and after the “SingleWave, Pacific Ocean” (2010), aswell as subtle modulations oftone at the distant horizon

rip-All 16 of the large-formatprints at Mann are of images ofthe ocean taken from an eleva-tion, so the horizon is important

to each The water is generallycalm, as in “Jenner Grade, PacificOcean” (2012), with the empha-sis on the ocean’s incredible ex-tent A slow shutter speed, as in

“Fog, Black Point Beach, PacificOcean” (2009), suggests time-lessness Important foregroundelements figure in several pic-tures: the seaweed in “Kelp, Pa-cific Ocean” (2012); rock out-croppings in “Surf Patterns #1,Pacific Ocean” (2012) and “ArchRock, Pacific Ocean” (2012); adramatic coast in “Cliffs, PacificOcean” (2012) “Moonlight, Hur-ricane Point, Pacific Ocean”

Léonard Misonne, ‘On alume le jeux.’ Hiroh Kikai, ‘A Man in a Coat He Said Was Made From the Pelts of Twenty-Eight Raccoons,’ left.

ARTS & ENTERTAINMENT

Faces and Places

Stephenson has up a group

show of six portrait

photogra-phers, each of whose entire

ca-reer was in one locale Disfarmer

(1884-1959) took all his portraits

in a custom-built studio on Main

Street in Heber Springs, Ark

The studio let him carefully

con-trol his lighting, and he had a

talent for posing his subjects—

farmers, mechanics, servicemen,

and their families—that was

both natural and revealing The

relationships between the family

members and the friends in the

six 5½-by-3½-inch prints are

also clear For over three

de-cades, Hiroh Kikai (b 1945) has

been stopping people in theAsakusa district of Tokyo andasking them to pose against anearby temple wall One of histwo pictures on display is “AMan in a Coat He Said WasMade From the Pelts of Twenty-Eight Raccoons” (1999); Mr

Kikai’s titles are an importantpart of his works

Malick Sidibé (1935-2016)worked around Bamako, the cap-ital of Mali Stephenson has fivegroupings of pictures he took atparties around town; the 3¼-by-2¼ prints were numberedand pasted on construction-pa-per sheets the photographer put

in his studio window so als could order their own copies

individu-Two examples of the incrediblyelaborate, ethnographically spe-cific hairstyles photographed byJ.D ‘Okhai Ojeikere (1930-2014),

a member of the Nigerian ArtsCouncil; three portraits byJacques Sonck (b.1949) from hisstudio in Ghent, Belgium; andfour pictures by Sirkka-Liisa

on the cobblestone streets andsidewalks; in that image a dra-matic sky silhouettes the monu-mental statues atop an imposingclassical building In “Mouton aucrèpuscule” (1908), it is a flock

of sheep whose fleeces are lighted In “Cumulus” (1928), it is

high-a rutted country rohigh-ad Three girls

in smocks and straw hats stand

on a rickety footbridge over astream in “On alume le jeux”(1924); the village behind themrecedes in a haze It is so idyllic

it strains credulity that thisworld existed in a Europe be-tween two ferocious world wars

Mr Meyers writes on tography for the Journal See his photographs at www.wil- liammeyersphotography.com.

A22 | Tuesday, June 14, 2016 * * * * THE WALL STREET JOURNAL.

ing what he can to ensure those guysare still healthy come September

Mangold, entering his 11th season,hasn’t participated in 11-on-11 drillsduring practices open to the media,with Dakota Dozier taking snaps atcenter instead “He practices somedays, some days he [doesn’t],” Bowlessaid of Mangold

Marshall said the goal at his age is

to avoid overdoing it “It’s all aboutgetting myself to a place where I’mgood in December and January,” hesaid “That’s what it’s about That’schampionship football.”

Revis had off-season wrist gery and the team hopes he’ll beready for training camp “He’s work-ing out right now,” Bowles said

sur-“He’ll be ready when he’s ready.”

At age 30, will the invincibility of

“Revis Island” start wearing off?

With Buster Skrine, Marcus Williams(who had a team-high six intercep-tions in 2015) and former first-roundpick Dee Milliner on the roster, cor-nerback is among the deeper posi-tions on the team

Not so at linebacker, where there’s

an opportunity for younger players,such as first-round pick Darron Leeand third-round pick Jordan Jenkins,

to make a big impression this week

“Some young guys are getting thechance to play and learn the system toget schematically better,” Bowles said

Where’s Mo? Defensive end

Mu-hammad Wilkerson was spotted inthe locker room last week but de-clined to speak with reporters Thesighting came as a bit of a surprise as

he remains in a contract standoff withthe team, but Bowles said Wilkersonhas been through the facility thisspring as he rehabs from a broken leg

he suffered in January Both sideshave until July 15 to reach a long-term deal or Wilkerson will have toplay the season with the franchise tagtender of $15.7 million

Laying it on the Line The Jets’

offensive line ranked 20th in blocking and 28th in run-blocking lastseason, according to Pro Football Fo-cus D’Brickashaw Ferguson’s retire-ment leaves a void that the teamhopes will be filled by Ryan Clady

pass-Clady, acquired from the Broncos for

a fifth-round pick earlier this month,

is a four-time Pro Bowler, but he’splayed sparingly in two of the pastthree seasons due to knee and foot

Everyone knows the most popular

F-word at the Jets’ practice facility

this off-season: Fitzpatrick But with

the free-agent quarterback still

un-signed, the Jets are doing their best

not to utter it at minicamp this week

Anyway, there are more important

things to worry about during this

fi-nal week of workouts before training

camp begins midsummer Here’s a

look at what’s on the Jets’ minds

The cast of ‘Thirtysomething.’

When the Jets open the regular

sea-son on Sept 11 against the Bengals,

at least nine players in the projected

starting lineup will be over the age of

30 That includes several stars,

in-cluding center Nick Mangold (32),

linebacker David Harris (32), receiver

Brandon Marshall (32), cornerback

Darrelle Revis (30) and running back

Matt Forte (30) It doesn’t include a

certain 33-year-old bearded

quarter-back who threw a franchise-record 31

touchdown passes in 2015 At 27

years and 75 days, the Jets were the

seventh-oldest team in the NFL at the

end of 2015, according to Stats LLC

So head coach Todd Bowles is

do-B Y J IM C HAIRUSMI

Questions Follow Jets Out of Minicamp

It may be difficult to recognize

the Mets these days After all, in

their past five games they’ve started

five players who didn’t begin the

season on the roster

But there’s another reason the

Mets may seem unfamiliar as they

return to Citi Field for an eight-game

homestand: They’ve been away for a

long time It isn’t that the Mets’

10-game road trip to Miami, Pittsburgh

and Milwaukee was that strange In

fact, it may seem standard, since it

was already the third time this year

they have played three straight

se-ries on the road

But it’s anything but standard The

Mets have six road trips comprising

at least three series apiece this

sea-son, more than any other team in

baseball The average across the

league is 3.7, according to Stats LLC

“You just have to pack a little

heavier for road trips like this,”

re-liever Jerry Blevins said

Mets players vary as to whether

they prefer to cluster their road trips

like this Blevins, for one, prefers it In

some instances it’s logical, like when

the team went on its West Coast trip

to San Diego, Los Angeles then

Colo-rado Playing all those teams in one

stretch beats making multiple flights

across the country

Longer road trips may seem

inevi-table for teams based on one coast

or another; the only other teams

with six road trips at least three

se-ries long are the Arizona

Diamond-backs and Washington Nationals But

it’s also avoidable: The Dodgers and

Rockies only have two such road

trips in 2016 Meanwhile, the

cen-trally located Minnesota Twins have

none of these long road trips all

sea-son The Houston Astros only have

one Then again, the Texas Rangers

have five, so there’s no real rationale

B Y A NDREW B EATON

SPORTS

behind it In fact, some teams used

to have four-series road trips, butbaseball has eliminated those in re-cent years, said Katy Feeney, MajorLeague Baseball’s vice president forscheduling and club relations

Creating baseball’s schedule is adreadfully difficult process because

of the various conflicts to be takeninto account For instance, the leaguemust work it out so that the Metsand Yankees are rarely at home atthe same time (they try to keep it un-der 10 games a year) And the Mets,being across the street from the Na-tional Tennis Center, prefer to avoidbeing at home for as much of the U.S

Open tennis tournament as possible

There are also smaller-level concernslike concerts (Beyoncé performed atCiti Field last week) that the schedul-ing office tries to accommodate

“Nobody is ever happy,” Feeneysaid “What’s good for the playersmay not be good for the businessside.”

Mets second baseman Neil Walkersaid he prefers the long road swingsbecause it means longer periods athome in between When the playersare popping in and out of their homecity every week, it can be difficultfor home to feel like home

“If you’re going to be out on the

road for six games, it’s like, well, wemight as well be out on the road fornine,” he said

The Mets’ first long road trip ofthe season—from Cleveland to Phila-delphia to Atlanta—was part of theirbest stretch of the season Theywent 7-2 in those games, culminat-ing with a sweep in Atlanta

Their two more recent trips havebeen less pretty Their West Coastswing ended with four straightlosses, including a sweep at thehands of the Rockies That trip alsogot tricky when Steven Matz re-ported elbow pain and the Metsopted to have him wait until they re-

turned home to see a doctor larly, this more recent road trip had

Simi-an ugly conclusion with two straightlosses to Milwaukee and a hospitalstay for manager Terry Collins.Curtis Granderson noted that thebiggest factor isn’t the length of theroad trip, but the timing of thegames He said the trip to Coloradowas especially difficult because itcame after a night game in Los Ange-les So the team didn’t arrive in Den-ver until about 4 a.m local time andthen had to play that night

“Guys find their ways to get theirrest one way or another,” saidGranderson

Mets Are Baseball’s Ultimate Road Warriors

It may be hard to recognize

the Mets right now They’ve

been away for a long time.

Matt Harvey and the Mets are scheduled to play six road trips comprising at least three series apiece this season, more than any other team in baseball.

rently have a winning record

It is a golden opportunity to pick

up ground on the Boston Red Soxand Baltimore Orioles, who kick off

a three-game series against eachother at Fenway Park on Tuesday Inany case, it might their last shot toprove that this team deserves achance to stay together and chase aspot in the playoffs

“You have to play yourself intocontention,” manager Joe Girardisaid “You can’t just keep saying,

‘Well, we have next month,’ becauseyou’re starting to run out of months.”

The Yankees have made it this far

by beating up on weak opponents

They are 17-9 against teams withlosing records and 14-23 againstteams that are 500 or better, whichbodes well for what’s on deck

Either way, Girardi and his playersinsist they don’t worry about theschedule and refuse to commentabout the possibility of a fire-sale

“I try not to get caught up intothat, honestly, because they’re big-league ball clubs,” outfielder CarlosBeltran said of the Twins and Rock-ies “It doesn’t matter what the re-cord says.”

Still, there’s no doubt the Yankeeshave a few attractive pieces shouldthey commit to restocking their farm

With Major League Baseball’s July

31 trade deadline starting to come

into view, the Yankees are

approach-ing a crucial decision that will have

a significant impact beyond just this

season: Are they buyers or sellers?

It’s an uncommon question for

the Yankees to be asking General

manager Brian Cashman has said

many times that he has a lifetime

dictum from ownership to pursue a

championship virtually at all costs, a

philosophy that doesn’t jibe with the

notion of rebuilding

But this year, with the Yankees in

danger of finishing with a losing

re-cord for the first time since 1992,

Cashman might have to at least

con-sider admitting defeat and turning

toward the future And the next two

weeks could end up determining

which way he goes

The Yankees, who at 31-32 sit 5 ½

games back in the American League

East, enter a critical stretch on

Tuesday They will play their next 11

games against the Colorado Rockies

and Minnesota Twins, who entered

Monday’s action with a combined

re-cord of 49-76 Between now and July

7, they will play only four of their 21

games against opponents that

cur-B Y J ARED D IAMOND

Yankees Must Decide

To Be Buyers or Sellers

system at the expense of competing

in 2016 Beltran and closer AroldisChapman are both free agents thiswinter and certainly would fetch aworthwhile return from a genuinecontender

History suggests they won’t gothat route At the trade deadline in

2013, the Yankees were 8 ½ gamesbehind in the division, but they de-clined to deal free-agent-to-be Rob-inson Cano They wound up missingthe postseason, and Cano signed

with the Seattle Mariners a fewmonths later

It’s easy to fault the Yankees withthe benefit of hindsight, but it’s safe

to say they would be better off nowhad they traded Cano Perhaps theYankees have learned from that ex-perience and would be more willing

to part with assets this time

Then again, they hope they don’thave to find out That’s where thenext couple of weeks come in: If theydon’t take care of business against

the Rockies and Twins, Cashmanmight have no choice but to wavethe white flag

“When you go to places whereteams haven’t been playing well,sometimes you put your guard downand say, ‘We should go out there andwin these two games,’ and some-times it doesn’t happen that way,”Beltran said “We have to make surethat we approach them with inten-sity, and hopefully we’re capable ofdoing things right.”

If the Yankees can’t climb

in the standings, they could make Aroldis Chapman available for a trade.

KATHY WILLENS/ASSOCIATED PRESS

JIM MCISAAC/GETTY IMAGES

injuries Clady has been taking reps inteam drills over the past two weeksbut still needs to shake off the rustafter missing the 2015 season

“He was just rusty because hehadn’t played,” Bowles said “He’s get-ting better and he’s moving better.”

Marshall said the similarities tween Ferguson and Clady are strik-ing, both on and off the field “Theydon’t say much,” he said, “but they’realways in the right place, know ex-actly what they’re doing You cancount on them

be-Veteran center Nick Mangold has participated sparingly in 11-on-11 drills during minicamp.

MEL EVANS/ASSOCIATED PRESS

© 2016 Dow Jones & Company All Rights Reserved. * * * * * THE WALL STREET JOURNAL. Tuesday, June 14, 2016 | B1

TECHNOLOGY B4 | WEATHER B7 | CROSSWORD B7

LinkedIn’s $3 billion in nue comes from its talent-so-lutions division, which helpscorporate recruiters identify

reve-A ShopRite in Morristown, N.J., offers fitness classes, top, an indoor-outdoor seating area, lower right, and an oyster bar.

But users face ever greaterdemands on their online timefrom social-media rivals such

as Facebook Inc., which is also

building products for sionals such as Facebook atWork Recruiters still considerLinkedIn an essential tool, butsome say its value has dimin-ished recently, with potentialrecruits using the platformless often or replying infre-quently to messages there

profes-A few years ago, “LinkedInwas a great way to reach tal-ent that we knew had live pro-files, and that we could engagewith,” said Richard Eib, chiefexecutive at Xceli Global,which specializes in hiringtechnology professionals withSalesforce.com expertise Now,

job candidates The companyalso generates cash from pre-mium subscriptions and ad-vertising

Xceli spends $30,000 to

$40,000 annually on LinkedIn,and Mr Eib says he gets high-quality leads there, but the

firm now relies more on telo Inc., one of a new genera-

En-tion of recruiting tools thataggregates information fromacross public websites and so-cial media to automaticallycreate profiles for potential

hires His No 3 source is ter Inc.

Twit-Mr Eib said the mergerwith Microsoft may “rekindleour interest” in LinkedIn, par-ticularly if recruiters are givennew ways to connect with po-tential candidates Withoutclear advances, Mr Eib said helikely will scale back hisspending on LinkedIn

“Before LinkedIn, the name

Please see LINKEDIN page B4

Microsoft Corp.’s $26.2

bil-lion acquisition of LinkedIn

Corp gives new life to a

social-networking pioneer that has

built a huge user base of mostly

white-collar professionals but

has struggled to maintain its

prominence in a competitive

and fast-changing sector

Since co-founder and

Exec-utive Chairman Reid Hoffman

initiated LinkedIn 13 years ago

by inviting 350 of his contacts

to join, the company has

grown to claim 433 million

members, including 105

mil-lion active monthly users

It has become a central

place online for professionals

to network and learn about job

opportunities, making it

enor-mously valuable for executive

recruiters and giving it a trove

of data that few other

compa-nies have “LinkedIn’s growing

B Y D EEPA S EETHARAMAN

A ND L AUREN W EBER

Deal Aims to Refresh LinkedIn’s Profile

On the List

Global technology M&A volume, year-to-date

Note: Data excludes spinoffs, splitoffs and repurchases

$258.60 billion

▲7.4%

$275

0255075100125150175200225250billion

1995 ’97 ’99 ’01 ’03 ’05 ’07 ’09 ’11 ’13 ’15

Companies that lowered

their tax bills after turning in

their American passports are

still finding perks from their

former citizenship

One company was

cele-brated at a U.S embassy

Some traveled the world with

U.S officials, promoting

prod-ucts with the imprimatur of

the American government

de-spite moving their legal

head-quarters outside the U.S andcutting their taxes Still otherscontinue to receive U.S gov-ernment contracts

Medtronic PLC, whichmoved its address from Min-nesota to Ireland in January

2015, sent executives on merce Department trade mis-sions to Brazil in August and

Com-to Peru in March of this year

Ingersoll Rand PLC

partici-pated in a trade mission toTurkey, years after it put its

address in Ireland Aon PLC,

the insurance broker and man-resources firm thatmoved from Chicago to Lon-don in April 2012, celebratedits success in the Romanianmarket at the U.S Embassy in

hu-Bucharest later that year at areception hosted by the U.S

ambassador

Their cases show that side the tax sphere, there islittle clarity about what itmeans to be an American com-pany, what benefits attendthat status and who is entitled

out-to enjoy them

“If there are competingcompanies that have main-tained their U.S tax status,that are acting responsibly intheir taxpaying behavior, thenpolicy makers should be ask-ing questions about why thesecompanies aren’t being pro-moted instead of the invert-ers,” said Matt Gardner, exec-utive director of the Institute

on Taxation and Economic icy, a group arguing againstregressive tax policies

Pol-Legally, there are few ferences among recently de-parted companies such as Aonand Medtronic, longstanding

dif-foreign companies such as mens AG and companies such

headquar-they differ only in how headquar-theygot the foreign address

U.S lawmakers, particularlyDemocrats, say the govern-ment should penalize compa-

nies that move offshore withpunitive taxes and limits ongovernment contracts

Treasury Secretary JackLew has called for renewed

“economic patriotism,” under

which the U.S “should not beproviding support for corpora-tions” that shift profits over-seas to avoid paying their fairshare Rep Lloyd Doggett (D.,Texas) said the companies

shouldn’t be rewarded withcontracts

President Barack Obama beled the companies “corpo-rate deserters” whose deci-sions leave “you with the tab

la-to make up for what they’restashing offshore throughtheir evasive tax policies.”Messrs Obama and Lew fol-lowed their rhetoric with in-creasingly stringent taxrules—which stopped somedeals but haven’t changed thefundamental forces drivingcompanies to pursue head-quarters outside the U.S.Definitions of inversionvary, with common tax-press

Please see TAX page B2

Firms That Left U.S Still Enjoy Perks

Some lawmakers say

the U.S should

penalize companies

that move offshore

The Supreme Court on day made it easier for patentholders to win more financialdamages in court from copy-cats who use their inventionswithout permission

Mon-The high court, in a mous opinion by Chief JusticeJohn Roberts, overturned aspecialized appellate court thathad adopted a hard-to-meet le-gal standard for winning puni-tive damages, even in caseswhere the defendant’s patentinfringement was willful.The chief justice said the stan-dard was too rigid and “excludesfrom discretionary punishmentmany of the most culpable of-fenders, such as the wanton andmalicious pirate who intentionallyinfringes another’s patent…for nopurpose other than to steal” thepatent holder’s business.Federal law allows trial judges

unani-to award enhanced infringementdamages to patent holders thattotal three times the amount ofactual damages in a case The

Supreme Court’s decisionstressed that judges should haveleeway to conclude that suchdamages are appropriate.The closely watched litiga-tion had produced a split be-tween the Obama administra-tion, which supported theavailability of punitive damages,and some top technology com-panies like Facebook Inc and Al-phabet Inc.’s Google, which saidstrict limits on large damageawards protected innovationand deterred abusive suits alleg-ing patent infringement.Chief Justice Roberts ac-knowledged those concerns.But he said they didn’t justifythe imposition of artificial lim-its on the ability of patent own-ers to receive additional money

in court when someone posely trampled on their intel-lectual property rights.The chief justice said judgescan strike a proper balance andprevent lawsuit abuse by award-ing larger monetary damagesonly for “egregious cases of mis-conduct.” Courts shouldn’t issuepunitive damages in “garden va-riety” cases, he said

pur-The ruling, which came in apair of consolidated cases, was

a win for two companies thatalleged their rivals willfullycopied their products

In one, medical-device makerStryker Corp convinced a jurythat subsidiaries of rival ZimmerBiomet Holdings Inc willfully in-fringed Stryker patents on hand-held devices used to cleanwounds Jurors awarded Stryker

$70 million for lost profit Thepresiding judge, citing testimony

Please see PATENT page B6

B Y B RENT K ENDALL

Top Court Eases Way For Patent Damages

Attention Shoppers: Yoga in Aisle 3

Grocers offer fitness classes, facials, child care to lure consumers into stores and away from online rivals

HANOVER TOWNSHIP, N J.—

Shoppers looking to pick up

milk and eggs may have other

reasons to spend time at their

local supermarket: yoga classes

or a spa treatment, perhaps

Under growing pressure

from discounters and online

rivals, supermarkets are

try-ing to transform themselves

into places where customers

might want to hang out

rather than just grabbing

groceries and heading home

In Phoenix, a Fry’s Food

Stores outlet, part of a chain

owned by Kroger Co., features

a culinary school and a lounge

with leather couches perched

next to a wine bar A Kroger

store in Hilton Head Island,

S.C., offers a cigar section to

complement its wine cellar

that stocks $600 bottles

Whole Foods Market Inc.

has a putting green outside

its Augusta, Ga., location and

a spa offering peppermint

foot scrubs and facial waxing

in a Boston store

A ShopRite store here in

Hanover Township, near New

York, runs a fitness studio

with yoga, barre and Zumba

classes and has a

cosmetolo-gist on weekends

“You can’t do fitness

on-line,” said John Sumas, chief

operating officer of Village

Su-per Market Inc., a member of

the Wakefern Food Corp

coop-erative that includes ShopRite

“Getting a significant amount

of people to show up to a

building is a value in itself.”

Village Super Market’s

op-erating income was $44

mil-lion in its last fiscal year, up

$30 million from fiscal 2014

Ana Soriano, a 51-year-old

stay-at-home mom from Morris

Township, N.J., at first thought

the idea of exercise classes at

ShopRite was “weird.” Now

she’s a regular “I finish my

classes, shop and come home

for the kids,” she said

Supermarkets have long

featured bank branches and drycleaners, but transformingthem into village-like destina-tions is a newer experiment

Most enhanced stores appear

to be located in affluent urbs and city neighborhoods—

sub-where shoppers are more

in-clined to order groceries online

or meals from services such asBlue Apron

“It gives our stores thathangout factor,” said Jeff Tur-nas, president of 365 byWhole Foods Market, the gro-cer’s new smaller-store for-

mat that made its debut in theSilver Lake section of Los An-geles last month

Not everyone, however, issold on this idea

“I’m pretty cautious on it,”

said Richard Vitaro, a director

in the consulting firm

Alix-Partners LLP’s products practice “There are

consumer-a lot of smconsumer-art retconsumer-ailers outthere, and I’m not aware ofanyone who says, ‘let’s add 20yoga studios.’ ”

Still, there is pressure to

Please see SHOP page B2

B Y H EATHER H ADDON

Top technology companies argued limits on awards protect innovation.

There is little clarity about what it means to be an American company.

B2 | Tuesday, June 14, 2016 * * * * THE WALL STREET JOURNAL.

INDEX TO BUSINESSES

These indexes cite notable references to most parent companies and businesspeople

in today’s edition Articles on regional page inserts aren’t cited in these indexes.

China Life Insurance A2

China Securities Finance

EEntelo B1 Etihad Airways A2 Expedia B3

FFacebook B1,B4,C8 FanDuel B3G

GAM Holding C3 Gannett B2 Gap B3 Goldman Sachs C1 Goldman Sachs Group C1 Google C8 Greylock Partners B4H

Hanesbrands B6 Hewlett Packard Enterprise C4 Hotel Lotte B6

IIngersoll Rand B1 Iridium Communications B3

JJaybridge Robotics A2 Johnson & Johnson B3 J.P Morgan Chase C3K

Kohl's C1 KPMG C3

LLinkedIn A1,B1,B4,C4,C8 London Stock Exchange Group C1 L'Oréal B3 Lotte Group B6MMacy's C1 McDonald's B3

Medtronic B1 Merrick Media B2 MetLife B7 MicrosoftA1,B1,B4,C4,C8

NNokia B4 Nordstrom C1

O1Malaysia Development C2

PPayPal B4 PepsiCo B3 PricewaterhouseCoopers C1

SSiemens B1 Staples B3

TTata Power B6 Tata Power Renewable Energy B6 Tencent Holdings B4 Teva Pharmaceutical A2 Theranos A2 Tribune Media B6 Tribune Publishing B2 Twitter B1,C8

UUber Technologies.A2,B4

VVanguard Group C2WWaddell & Reed Financial C2 Walgreen A2 Welspun Energy B6 Welspun Renewables Energy B6 Whole Foods Market B1

YYahoo B4

Ace Hardware has set upshops within more than 100grocery stores as part of apush by the Illinois-companyinto independent supermarkets

in the past three years Grocerspay a $5,000 fee and purchase

$5,000 of inventory to join thehardware cooperative Theymust guarantee a certain level

of inventory at all times

Some concepts have fizzled

The Fry’s in Phoenix made itsdebut in 2010 with a carwashbut discontinued that after itdidn’t catch on, a Kroger’s

spokesman said The cookingclasses, by contrast, have dou-bled in size since the schoolopened, and the store offers atleast a dozen sessions a week,

he said

Village Super Market took

a risk three years ago when

it planned a nearly square-foot store in HanoverTownship, with more ameni-ties than a standard Shop-Rite, Mr Sumas said Itcost $25 million to build, atleast 50% more than any pre-vious grocery stores VillageSuper Market has put up, hesaid

80,000-The store features an ter bar, a heated open-air din-ing space and 90 minutes offree child care for shoppers,

oys-Mr Sumas said The operatingprofit margin is on par withother stores in his chain of 29supermarkets, but the volume

of business in the nover store is more brisk,and its sales growth has beenone of the strongest relative

Ha-to comparable sHa-tores, Mr mas said

Su-try new approaches Firstquarter profits were weak fornearly the entire grocery sec-tor, and even trendy chainssuch as Whole Foods arestruggling to differentiatethemselves as Wal-MartStores Inc and other big-boxretailers expand natural andorganics sections

Traditional supermarketsalso face competition fromonline grocery services such

as Amazon.com Inc.’s zonFresh Jefferies GroupLLC estimated last monththat online grocery salescould grow to 8% of grocerysales in 2025 from 2.5% to-day Moreover, there arethreats from European deep-discount supermarkets such

Ama-as Aldi and Lidl Ama-as they pand their U.S presence

ex-“Every executive I’vetalked to has said this is themost profound period of

Continued from the prior page

Same-store sales for selected grocers

THE WALL STREET JOURNAL.

Source: Jefferies Group LLC–4

04812%

SHANGHAI—Growth in carsales in China reached a five-month high in May as automakers launched new modelsand dealers continued to offersignificant discounts

Car makers delivered a tal of 1.79 million passengervehicles—sedans, sport-utilityvehicles and minivans—todealers in the world’s largestauto market last month, up11% from a year earlier, gov-

to-ernment-backed China ation of Automobile Manu- facturers said on Monday.

Associ-The performance comparedwith a 6.5% year-over-yeargain in April, and a 6.8% in-crease in the first quarter

May is traditionally one ofthe year’s big sales months asnew car models start to arrive

at dealerships following thecountry’s biggest motor show,which this year took place inBeijing in April

According to Ways ing Co., a Chinese consulting

Consult-firm focused on the tive industry, dealers offered

automo-an average 10% discount oncars in May, which was largelyunchanged from April

Some of the macroeconomicfactors that had been a drag

on sales also seem to be ing, said analysts Propertysales growth has started tomoderate after a spurt in thefirst quarter and trade vol-umes on stocks fell for a sec-ond month in May Risingstock and housing markets haddiverted cash from car pur-chases Meanwhile, gasolineprices remain relatively low,helping demand

fad-While the sales uptick is apositive sign for the globalauto makers that depend onChina for growth, companiesremain cautious about a pro-longed economic slowdown

While shipments to dealersgained 11% last month, automakers produced 5.5% morecars in China compared with

the year-earlier period

The trends are reflected indealer inventories The latestsurvey of China’s more than

20,000 dealers by the China Automobile Dealers Associa- tion, a government-backed

trade group, showed that atthe end of April dealers on av-erage had inventories equal to1.54 months of sales, downslightly from 1.55 months inMarch In China, analysts say1.5 months of sales on lots isthe level at which dealersshould begin to be concernedabout high inventory

The overall pace of saleshas been slowing after a de-cade of extraordinary gains forauto makers

Beijing has introduced a ries of support measures Ahalving of the 10% purchasetax on small-engine cars, cou-pled with favorable credit pol-icies, helped boost sales sincethe fourth quarter of last year

se-Analysts have cautioned

that the policy could have

threatening a stall in growthafter it expires this year

In total, China’s combinedsales of passenger and com-mercial vehicles reached 2.1million units in May, up 9.8%from a year earlier, the automanufacturers’ group said.SUVs continued to be thebrightest spot in the market,with a year-over-year sales in-crease of 36% with 627,000units sold, according to theauto association

General Motors Co and itsjoint ventures delivered about295,000 vehicles to Chineseconsumers last month, up 17%from a year earlier, citingstrong demand for its SUVs.Among others, Toyota Mo-tor Corp sold 102,900 cars, up12% from a year earlier, NissanMotor Co posted a 3.4% rise,and luxury car maker BMW AGsaid its China sales grew 7.1%

—Rose Yu

In China, Car Deliveries Jump 11%

Chinese shoppers checked out an Audi R8 supercar in a booth at the Beijing International Automotive Exhibition in Beijing in April.

Oaktree Capital

Manage-ment, one of Tribune ing Co.’s largest stockholders,

Publish-demanded in a letter Monday

to examine the newspaperpublisher’s books to investi-gate if the board had violatedits duty by selling controllinginterest of the company to in-vestor Michael W Ferro Jr at

an allegedly discounted price.Oaktree previously has saidTribune should engage in talkswith rival newspaper pub-

lisher Gannett Co., which in

April went public with its tempt to take over the com-pany Tribune has rebuffedGannett’s advances, sayingthey undervalue the company

at-A Tribune spokeswoman knowledged receiving Oak-tree’s letter and said Tribuneplans to respond to its re-quest

ac-“We are not going to dress the numerous mischar-acterizations in Oaktree’s lat-est letter and will not bedistracted by their ongoingcampaign to distort the facts,”she added in a statement

ad-In February, Tribune went a shake-up when Mr

under-Ferro’s Merrick Media LLC

became the company’s largestshareholder, buying 16.6% ofthe company’s shares for

$44.4 million Merrick paidabout $8.54 a share for itsstake

Mr Ferro became utive chairman that monthand within weeks had replacedmuch of the company’s uppermanagement, including nam-ing a new CEO

nonexec-In a letter addressed toTribune’s General Counsel Ju-lie Xanders, Oaktree assertedthat “Mr Ferro paid a below-market price for his stock inthe company, rather than apremium reflecting his acqui-sition of control.”

Oaktree said it was seeking

to “investigate possible management and other viola-tions of duty by Michael Ferroand the company’s directors”

mis-in the sale of shares to rick Media, the appointment

Mer-of Mr Ferro and four ates to the board and the rul-ing out of a sale to Gannett

associ-B Y E ZEQUIEL M INAYA

Oaktree Calls for Tribune Probe

Hele, John B7 Hoffman, Reid A12,B1

JJiang, Yiwen C4K

Kabbaj, Youssef C2 Ketchum, Richard C3

LLau, Barry C4MMoulton, Jon C3N

Nadella, Satya B4 Nazareth, Annette C3O

Osborne, George C3

PPiwowar, Michael C3 Printer, Calvin A2

RRolet, Xavier C1 Rosenberg, David C4

SShigemitsu, Hiroyuki B6 Sumas, John B1

TTchen, Tina B3 Turnas, Jeff B1

VVitaro, Richard B1WWeiner, Jeff B4 White, Bruce B7

XXiang, Xu C4

ZZarti, Mustafa C2

unaware of any policies ing foreign-domiciled compa-nies from U.S trade missions

block-“We believe it’s in the U.S

government’s interest to mote this country’s economicbenefits in other countries,” saidspokesman Fernando VivancoOne of the earliest addresschanges in the recent wavewas the move by Aon, whichthe IRS said in 2013 allowedthe company to no longer beconsidered a domestic corpo-ration for tax purposes Aonexecutives said the change po-sitioned it at a hub of the in-surance industry as it pre-pared for global expansion

pro-In 2011, Aon’s final full year

as a U.S company, it reported

a 27.3% global effective taxrate By 2015, that was down

to 15.8%

The 2012 reception in charest was organized byCommerce officials and hosted

Bu-by then-Ambassador MarkGitenstein Such events, forwhich companies pay fees,aren’t supposed to be held un-less they are promoting U.S

exports, according to the merce Department

Com-Mr Gitenstein, who said hewas occupied then with politi-cal turmoil in Romania, didn’trecall the event and was “to-tally unaware” Aon had moved

to the U.K If he had knownthe company’s status, he said,

he wouldn’t have agreed to go

“We only looked out forAmerican companies,” Mr

Gitenstein said “If they werenot an American company, thatwould have been a problem.”

parlance including more

com-panies than the formal tax

definitions

“The U.S entity is out there

promoting things that are

pro-duced in the U.S by U.S

work-ers, regardless of where their

share ownership is,” said Nancy

McLernon, president of the

Or-ganization for International

In-vestment, a trade association of

foreign firms’ U.S subsidiaries

“So it’s a very slippery slope to

start taking away any

partici-pation in government programs

based on whether a company is

considered inverted or not,

be-cause of how easily legislators

could get this wrong.”

The Commerce Department

requires participants in trade

missions to list a U.S state of

incorporation or registration

They must show that products

they seek to export have

sub-stantial U.S content

Subsid-iaries of foreign companies are

eligible

“Our trade missions focus on

helping U.S companies sell their

products and services abroad,”

a Commerce official said,

add-ing that there are no plans to

change the eligibility criteria

“We help U.S firms promote

and sell their U.S exports.”

Medtronic, which makes

medical devices, has more than

37,000 U.S employees, nearly

half of its global total, and

does most of its research in the

U.S The company said it was

Continued from the prior page

TAX

Medtronic moved its address from Minnesota to Ireland in 2015

after buying Covidien Shown, Covidien’s Dublin office in 2014.

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

THE WALL STREET JOURNAL. * * * * Tuesday, June 14, 2016 | B3

BUSINESS NEWS

B Y A USTEN H UFFORD

McDonald’s Is Returning to Chicago

The new home base will house a ‘Hamburger University’ location, like the one at its Oak Brook, Ill., complex.

LONDON—Airbus Group SE will set up helicopter assembly

in China as part of a deal to sell 100 light twin-engine chop- pers in the country.

The deal completes a letter

of intent signed last year for

an order valued at €700 million ($788 million), Airbus said Monday.

The pact is a boost for bus’s helicopter business, which has been hurt by a downturn in the oil and gas market, one of the most lucra- tive segments for commercial

Air-helicopter sales.

The April crash of a Super Puma helicopter, in which all 13 people on board died, has also cast a shadow over the air- craft-maker’s chopper unit Eu- ropean regulators this month have idled the fleet amid un- certainty about why the heli- copter operated by CHC Group Ltd crashed.

The deal was signed during

a visit by German Chancellor Angela Merkel to China.

“China is gearing up to be the biggest market for helicop-

ters in years to come,” with strong growth in government services and civil applications

of such machines, said Norbert Ducrot, the head of Airbus He- licopters in China and for the North Asia region.

Airbus said it expected pansion of offshore wind farms

ex-in Chex-ina’s power ex-industry to ex- flate demand for helicopters.

in-Airbus said a consortium

of China Aviation Supplies Holding Co., Qingdao United General Aviation Industrial De- velopment Co and CITIC Off-

shore Helicopter Co have made the order for 100 H135 helicopters.

Delivery of the ordered copters are due to stretch over

heli-a decheli-ade The new heli-assembly facility is expected to begin op- erations in Qingdao in China’s Shandong province in 2018.

It will be Airbus Helicopters fourth final-assembly line out- side of France and Germany Helicopters are assembled in the U.S., Brazil and, starting next year, in Romania.

Stepped-up controls would tend beyond determining whocan log on to such networks

ex-Experts are considering tional safeguards for thosemaintenance computers con-nected to the internet, whichpose greater intrusion risks

addi-In addition, the group vors enhanced efforts to en-sure the integrity of softwareused in laptops, called elec-tronic flight bags, increasinglyused by pilots of commercial,business and private planes

fa-The Federal Aviation ministration began the processlast summer amid escalatingconcerns by plane makers andregulators about the industry’svulnerability to hackers Therehas never been a verified in-flight incident of unauthorizedaccess to airplane safety sys-tems, but the topic of verify-ing incoming GPS signals is at-tracting more attention

Ad-“The FAA and aviators areworried, particularly in thepast 12 months, about spoof-ing of GPS,” which meanssending fake signals to naviga-tion and flight-control com-puters on board planes, saidMatt Desch, chief executive of

Iridium Communications Inc.,

a commercial-satellite tor with aviation customers

opera-The FAA has instructedpanel members not to talkpublicly about their delibera-tions before an expected prog-ress report during a U.S.-Euro-pean safety conference inWashington, D.C., that startsTuesday An FAA spokes-woman didn’t respond to re-quests for comment

—Jon Ostrower contributed to this article.

A panel of government and

aviation-industry experts has

reached a preliminary

agree-ment on proposed cybersecurity

standards for airliners, including

the concept of cockpit alerts in

the event that critical safety

sys-tems are hacked, according to

people familiar with the matter

Some of the

recommenda-tions, these people said,

incor-porate work already under

way to create an entirely new

category of automated

in-flight warnings—intended to

directly notify pilots if

naviga-tion signals are jammed or

corrupted Such safeguards for

ubiquitous Global Positioning

System satellite broadcasts

aren’t widely available today,

and regulators typically don’t

mandate them on any aircraft

But the proposals envision

that these and other

provi-sions would be incorporated

into a broad package of future

cyberprotections and

en-hanced airworthiness

require-ments applying to new and

ex-isting aircraft Commercial

and business planes certified

during the past several years

already feature some

more-stringent cyberprotections,

though the recommendations

are expected to go further

The coming report will be

the most comprehensive move

yet to lay the groundwork for

global regulations combating

potential cyberattacks against

aviation The advisory group is

expected to call for an array of

changes affecting airliners,

busi-ness jets and even small, private

planes powered by propellers

Without spelling out

FanDuel Inc and

DraftK-ings Inc are in talks to

merge, according to a person

familiar with the matter, a

po-tential deal that would result

in a single firm controlling

more than 95% of the

embat-tled daily fantasy sports

in-dustry

The two firms are rivals,

of-fering essentially the same

product, and have come under

scrutiny in many states over the

legality of the business model

The companies’ valuations

each topped $1 billion last

year when they were raising

money amid a frantic effort to

gain market share through

gi-ant advertising buys and

bil-lions in prize money

The frenzy gave way to

scrutiny from state lawmakers

and attorneys general, several

of whom successfully got the

sites shut down in their states

Those states included New

York, which had been the

larg-est market for daily fantasy

sports

It is possible the two

com-panies won’t reach a deal, the

details of which are unknown

Bloomberg previously

re-ported the talks on Monday

More than two dozen states

have been weighing legislation

B Y S HARON T ERLEP

McDonald’s Corp is

mov-ing its headquarters to town Chicago from one of thecity’s suburbs, as more compa-nies move into urban centers

down-to attract millennial talent

The fast-food restaurantchain will move its headquar-ters into the trendy West Loopneighborhood of Chicago by2018

“This world-class ment will continue to drivebusiness momentum by get-ting us even closer to custom-ers, encouraging innovationand ensuring great talent isexcited about where theywork,” Chief Executive SteveEasterbrook said

environ-Companies like GeneralElectric Co., WeyerhaeuserCo., and now, McDonald’s areleaving behind their sprawlingsuburban headquarters andmoving to urban high-rises toappeal to the younger, metro-politan workforce Young, edu-cated and relatively high-earn-ing workers are flocking to

many American cities at a ratenot seen since the U.S CensusBureau began tracking suchdata in the 1970s

“McDonald’s has identifiedthe keys to success to today’sglobal market, talent, technol-ogy, and access to transporta-

tion networks,” Chicago MayorRahm Emanuel said in a state-ment “I’m proud to welcomethem to our dynamic city.”

The move is a return to theWindy City for McDonald’s,which had been based therebetween 1955 and 1971 It is

currently based in the Chicagosuburb of Oak Brook, Ill.The new Chicago headquar-ters will also house a “Ham-burger University” location,which provides training tomany of the company’s em-ployees and franchise owners

expanded health-care age, signed a pay-equity billand campaigned against sexual

among other things

Officials will emphasizethat more progress needs to

be made to lift women nomically and socially, playinginto one of presumptive Dem-ocratic presidential nomineeHillary Clinton’s primary mes-sages to voters this year

eco-Mr Obama has made proving women’s financialstanding a key part of hisWhite House agenda, empha-sizing in speeches that hewants a fairer workplace forhis two daughters

im-Economists and policy ers who support him say hisrepeated calls for workplaceflexibility helped to drive a

mak-wave of cultural change insideoffices nationwide

Many Republicans say thatthe administration’s moves toexpand health care and pro-mote equal pay saddled em-ployers with regulations thatwork against women “I don’tthink that they’ve made anysignificant changes” to im-prove women’s financialstanding, said Rep MarshaBlackburn of Tennessee

WASHINGTON—More thantwo dozen companies includ-

ing Amazon.com Inc., PepsiCo Inc and Dow Chemical Co.

have signed a White Housepledge to conduct an annualgender pay analysis aimed ateliminating inequitable com-pensation, the Obama admin-istration said Monday

The 28 companies agreed toreview their hiring and pro-motion processes and embedequal-pay efforts in otherworkplace initiatives The

companies also include ture PLC, American Airlines Group Inc., Cisco Systems Inc., Deloitte, Expedia Inc., Gap Inc., Johnson & Johnson, L’Oréal USA and Staples Inc.,

Accen-the White House said

“The pledge is to actuallytake action,” said Tina Tchen,executive director for theWhite House’s Council onWomen and Girls

The Labor Department also

is updating guidelines for eral contractors on protectingagainst sex discrimination forthe first time since the 1970s

fed-The changes include addingprotections for transgender in-dividuals

The efforts are part of a

women and girls Tuesday that

is drawing thousands of ple to Washington The sum-mit will frame President Ba-rack Obama’s two terms as atime of notable progress forwomen because the president

FanDuel and DraftKings sought to gain market share with giant

ad buys Above, guard Tim Quarterman during an NCAA game.

a game of skill and not akin togambling

In daily fantasy, peopledraft virtual teams of profes-sional athletes in daily andweekly online contests inwhich they compete againsteach other based on the ath-letes’ real-world perfor-mances

The companies agreed inMarch to bar New York resi-dents from playing as part of asettlement with the attorneygeneral’s office, which wastrying to force the companies

to stop accepting money fromNew Yorkers and pay restitu-tion to contestants who lostmoney playing on the sites

The sites could reopen ifNew York lawmakers expresslylegalize daily fantasy-sportscontests Otherwise, the com-panies’ paid contests will re-main closed to New Yorkersuntil an appeals hearing inSeptember

Investors in New based FanDuel include private-equity firm KKR & Co.; GoogleCapital, the internet com-pany’s growth-equity fund;

York-and Comcast Corp based DraftKings raisedroughly half of its money frommedia companies and sportsleagues including MajorLeague Baseball, the NationalHockey League and MadisonSquare Garden

Boston-Fantasy Sports Sites

In Talks for Tie-Up

B4 | Tuesday, June 14, 2016 * * THE WALL STREET JOURNAL.

deliber-A second offense will result

in a three-year road ban for thecar The driver will be punishedwith penalty points and lose thedriver’s license for six months ifcaught twice

Uber said its 1,200 drivers inHungary possess a passengertransport license and provideinvoices in line with local regu-lations

“Uber continues to be mitted to its 150,000 Hungarianusers and…will continue to op-erate [here],” Zoltan Fekete, op-erating director of Uber’s Hun-garian arm, said in a newsrelease

com-Opposition lawmakers saidthat the government shouldfind ways to force Uber, based

in California and with Europeanregistration in the Netherlands,

to pay taxes in Hungary, instead

of limiting competition.Uber will continue to seek di-alogue with the Hungarian pol-icy makers, the company said

BUDAPEST—Hungarian makers passed legislation Mon-day that allows for a ban oncertain car-hailing services,making the Central Europeancountry the latest EuropeanUnion member to lock horns

law-with Uber Technologies Inc

af-ter it upset the local taxi ness with low prices

busi-While not naming Uber, thebill says that authorities mayblock access to car services, in-cluding to mobile applicationsand websites, if the operatorfails to comply with prevailingregulations, for as long as 365days

Parliament’s move followeddemonstrations by taxi driversagainst Uber over the past fewmonths

Taxi services are heavily ulated in Hungary Prices are setcentrally and the law dictatesthe allowed models, age andcolor of cars The vehicles,painted yellow, must be driven

reg-by professionally licensed ers

driv-By tightening the tions, the government aims toprotect those operating taxi ser-vices legally, paying taxes andadhering to the already existingrules, Janos Fonagy, develop-ment ministry state secretary,said in parliament

regula-“The government is notagainst modern opportunities

peo-Binc Search, which recruits

for technology firms

“LinkedIn made it very easy

to find people Now the name

of the game is to engage ple, and that is all about tim-ing, interests, and other thingsLinkedIn doesn’t add a lot ofvalue to.”

peo-LinkedIn’s challenges lier this year hammered itsshare price, which fell by morethan half after it delivered aless-robust-than-expectedearnings outlook

ear-The $26.2 billion in cashthat Microsoft is paying, at a50% premium to Friday’s clos-ing price, gets LinkedIn’s valueback to slightly above where itwas before that plunge

And according to LinkedIn

Continued from page B1

Faced with slowing

hard-ware sales and questions

about its growth, Apple Inc

aims to bolster its services by

making them smarter and

opening them to outsiders

At its annual developers’

conference on Monday, Apple

revealed changes to its four

software operating systems—

for the iPhone and iPad, Mac,

Apple TV and Apple Watch—

and emphasized a new

willing-ness to allow non-Apple

devel-opers to add features to its

most widely used services,

in-cluding Messages, Maps and

Siri

Speaking to an audience

filled with thousands of

devel-opers, Apple Chief Executive

Tim Cook said the company’s

software becomes “even more

capable by working with all of

you.”

The announcements come

as Apple increasingly touts its

services business Earlier thisyear, Apple started breakingout its revenue from services,which includes App Storesales, Apple Music and ApplePay In touting its services,Apple is noting its loyal userbase and more predictablerevenue than the boom-or-bust cycles tied to its newproducts

“Services are definitely ing up a bigger role,” said Neil

Avalon, a site dedicated toanalysis of Apple He noted,however, that Apple’s empha-sis on services differs fromother Silicon Valley firms be-cause Apple aims to sell moredevices, rather than collectdata for targeted advertising

The services push alsocomes against a backdrop ofshrinking hardware sales

Apple recently posted itsfirst quarterly revenue decline

in 13 years, and analysts pect sales of its flagshipiPhone to decline in the fiscalyear ending in September, forthe first time since the phonewas introduced in 2007

ex-On Monday, Apple put moreweight behind key services—

including messaging, digital

assistants, maps and musicstreaming—where it is strug-gling to keep up with rivals in-

cluding Facebook Inc., Google parent Alphabet Inc and Am- azon.com Inc.

For Messages, Apple addedmany new features, includinglarger emojis, special effects

to convey emotions and an tion to keep messages invisi-ble Apple’s efforts to jazz upmessaging speaks to the im-pact of popular messagingapps such as Snapchat whichmake the blue and green bub-bles of iMessage feel staticand drab

op-Apple also opened sages to outside developers, sousers can send payments viaSquare Cash, buy movie tick-ets through Fandango or orderfood from DoorDash withoutleaving a conversation withfriends This is in line with agrowing trend among messag-ing platforms, including Face-

Mes-book’s Messenger and Tencent Holdings Ltd.’s WeChat, to

serve as a gateway to myriadother services

Once known for limiting cess of outside developers toits software, Apple is taking amore open approach It also

ac-opened up maps and Siri tooutside developers

This new attitude speaks to

a world where services aremore interconnected withoutforcing users to close one app

to open another leads to necessary irritation and poten-tially, a lost customer

un-Apple said it was releasingtools that will allow develop-ers to connect their apps toSiri, its voice-activated assis-tant That could allow, for ex-ample, iPhone users to ask Siri

to book a car with a ing service like Uber or Lyft

ride-shar-Apple also said it wouldmake Siri and Apple Pay avail-able on its Mac computers

Apple Pay will work throughthe Safari browser, setting thepayment service as an alterna-tive to PayPal

Apple also changed thename of its Mac operating sys-tem from OS X to macOS,bringing the naming conven-tion of its software in linewith iOS, watchOS and tvOS

Apple also announced provements to its Watch soft-ware Apple said apps will runfaster on the next version ofthe software, addressing a bigcomplaint about the device

Hungary’s move against ride-hailing services followed demonstrations

by taxi drivers against Uber over the past few months.

Mr Hoffman, who owned11% of LinkedIn’s shares andheld 53% of its voting power

as of last year, described thedeal as “a re-founding momentfor LinkedIn.”

LinkedIn said Mr Hoffman,

a former Apple Inc and Pal executive who also is a

Pay-partner at venture-capital firm

Greylock Partners, wouldcontinue to be involved infor-mally in the Microsoft-ownedLinkedIn

LinkedIn faces other culties Its revenue growth hasbeen slowing, which is whatspooked investors

diffi-Earlier this year, the pany projected revenue in

com-2016 would grow roughly22%—down from 35% in 2015

It later boosted its outlook,but revenue growth still lookspoised to fall far short of 2015

LinkedIn also has struggled

to adapt to the mobile tion, a change that has greatlybenefited Facebook—though

revolu-an overhaul of its mobile applast year has shown signs ofgaining traction

LinkedIn is installed infewer phones than heavilyused apps such as Facebook,Snapchat, Twitter Inc and In-stagram But unlike those four,users spent more time on theLinkedIn app in the first quar-ter of 2016 compared with theyear-ago period, according todigital data firm SimilarWeb

LinkedIn’s traffic comes fromthe U.S where users spend anaverage of five minutes and 16seconds a day in the app.RBC Capital Markets ana-lyst Mark Mahaney upgradedLinkedIn, citing his survey of

290 U.S recruiters, whichfound 45% of them wouldspend more on LinkedIn overthe next 12 months and 48%would maintain their spend-ing

Asked why, given soft’s acquisition history, thelatest deal should fare better,Chief Executive Satya Nadellapointed to factors such as the

Micro-size of LinkedIn’smarket, its stronggrowth rate and howclosely it is related toMicrosoft’s softwareand internet busi-nesses

“Is this somethingthat’s at the core ofMicrosoft?” Mr Na-della said in a confer-ence call Monday

LinkedIn “checks allthose boxes,” he said

Not all Microsoft tions have fared badly Sometransactions supplied productsthat became successful orbrought key technical or man-agerial talent into the com-pany, industry executives andanalysts say

acquisi-In 2014, for example, soft reached a $2.5 billion deal

Micro-to acquire software maker jang, the Swedish companywhose “Minecraft” is one ofthe most popular videogames

stemmed from the acquisition

of a company called SeattleComputer Products, after In-ternational Business MachinesCorp turned to Microsoft forsoftware to run on its personalcomputer launched in 1981

In 1987, Microsoft boughtForethought Inc for $14 mil-lion The startup’s PowerPointsoftware became the mostpopular way to create presen-tation slides and later a keypart of the company’s Officesuite of applications

Another acquisition thatseemed to produce benefits wasHotmail, the free internet emailservice acquired in 1997

Microsoft’s dominance of

PC software in the 1990s insome cases made it difficult tocomplete acquisitions

In the following decade,Microsoft faced greater pres-sures to play a bigger role onthe internet to compete withcompanies like Google Inc andYahoo Catching up became amajor focus for Mr Ballmer,who succeeded Mr Gates asCEO in 2000 and gave up thejob to Mr Nadella in 2014

Yahoo at present is ing off its core business Veri-zon Communications Inc., seen

auction-as a front-runner in the ding, offered about $3 billionfor the internet properties be-fore last week’s deadline forsecond-round bids

bid-Microsoft Corp has

pur-chased more than 150

compa-nies But those acquisitions

have been largely

overshad-owed by deals that didn’t get

done—and those that

manage-ment may have wished didn’t

The best-known transaction

that didn’t happen was former

Chief Executive Steve Ballmer’s

failed attempt in 2008 to buy

Yahoo Inc for nearly $48

bil-lion That outcome is

now widely

consid-ered a lucky break, in

view of Yahoo’s later

struggles

Now the hotter

topic is how

Micro-soft has fared in

deals it did manage

to complete, in view

of the $26.2 billion

LinkedIn Corp

an-nounced Monday The

record is far from

unblem-ished

Deals that didn’t pay off

in-clude the 2014 acquisition of

Nokia Corp.’s handset

busi-ness, which the company has

largely dismantled and for

which it has taken charges

that exceeded the $9.4 billion

purchase price

The company also wrote off

much of the value of its 2007

purchase of advertising

met-rics company aQuantive Inc.

for $6.3 billion And few

finan-cial benefits have emerged

from some other large deals,

including the $8.5 billion

pur-chase of communications

ser-vice Skype SA and business

B Y D ON C LARK

Microsoft Has a Mixed Deal Record

Satya Nadella

Oct 2015May 2015April 2007June 2016Feb 2014Feb 2013Sept 2001Jan 2000Sept 2006

March 2000

EMC (U.S.) Broadcom (U.S.) First Data (U.S.) LinkedIn (U.S.) WhatsApp (U.S.) Dell (U.S.)*

Compaq Computer (U.S.) E-TEK Dynamics (U.S.) Freescale

Semiconductor (U.S.)†

Tin.it (Italy)

DellAvago TechnologiesKKR

MicrosoftFacebookSilver Lake GroupHewlett-PackardJDS UniphaseBlackstone Group;

Permira; Carlyle Group;

Texas Pacific GroupSEAT Pagine Gialle

$65.97 billion 36.06

26.2 26.35

21.94 21.07 18.69 17.93 17.60

Note: Dates are announced dates

Microsoft’s Acquisitions

Their top acquisitions by deal value

THE WALL STREET JOURNAL.

§Handset business Sources: Dealogic; the companies

$1.3

Top ten Other acquisitions