Eccblib #694550-v1-times digest--_17_july_2015

1. NY United States Virgin Islands St. Thomas United States Virgin Islands St. Thomas Gunman Kills 4 Marines in TennesseeGermanTone Obama Visits Federal Prison to Push Overhaul CHATTANOOGA, Tenn. — A 24-year-old Kuwaiti-born gunman opened fire on a military recruiting station on Thursday, then raced to a second military site where he killed four United States Marines. Three other people, including a Marine Corps re- cruiter and a police officer, were wounded, according to law en- forcement officials. The F.B.I. identified the gunman, who also died Thursday, as MohammodYoussufAbdulazeez, whobecameanaturalizedUnited States citizen and went to high school and college in Chattanoo- ga. Although counterterrorism officials had not been investigating Abdulazeez before Thurs- day’s shooting, federal officials familiarwiththeinquirysaidthat his father had been investigated years ago for giving money to an organization with possible ties to terrorists. At a late-night news conference, the F.B.I. said thus far it did not have “anything that directly ties” the suspect to international terrorist organizations. Attorney General Loretta E. Lynch said the F.B.I. was leading “a national security investigation,” and the United States attorney for the Eastern District of Tennessee, William C. Killian, said federal officials were “treating this as an act of domestic ter- rorism.” But he cautioned that theinvestigationwouldultimate- ly determine how the shooting would be classified. Lawofficersswarmedthesites throughout the day and said that they knew of no safety concerns for the public. Site Intelligence Group, which tracks terrorist activity, said that Abdulazeez had this week posted two Islamic-related posts on a blog, including one in which he described life as “short and bit- ter.” He also said that Muslims should not miss “the opportunity to submit to Allah.” The separate rampages were together the highest profile epi- sode of violence at domestic mili- taryinstallationssince2014,when threepeoplewerekilledandmore than a dozen were wounded at Fort Hood, Tex. And the killings herecameasamassshootingless than one month ago left nine peo- pledeadinCharleston,S.C. President Obama, in what has become a grimly familiar ritual, offered his condolences to the victims and promised a pains- taking investigation. Pentagon officials said the identities of the deadwouldbereleasedafternext of kin were notified. “Mymainmessagerightnowis, obviously,thedeepestsympathies oftheAmericanpeopletothefour Marines that have been killed,” Obama told reporters in the Oval Office after he met with the F.B.I. director, James B. Comey. “It is a heartbreaking circumstance for these individuals, who have servedourcountrywithgreatval- or,tobekilledinthisfashion.” According to interviews with three counterterrorism officials, the attack fits the pattern of assaults that the Islamic State terror group has called for, but investigators found no immediate ties to it. Officials said that they expected the Islamic State to claim responsibility for the attack, but said that a claim alone would not mean anything. (NYT) BERLIN—Despitebitteropposi- tion in many quarters to the auster- ity-first policies Germany has im- posed on Europe’s poorer nations, Chancellor Angela Merkel’s government has hung on to its role as championofintegrationontheCon- tinentthroughdeftuseofdiplomacy and the country’s economic clout. But in negotiating a new deal this week to bail out Greece, Germany displayed what many Europeans saw as a harder, more selfish edge, demanding painful measures from Athens and resisting any firm com- mitment to granting Greece relief from its crippling debt. And that perception was fueled on Thursday when the German finance minister, Wolfgang Schäuble, suggested that Greece would get its best shot at a substantial cut in its debt only if it was willing to give up membership in the European common currency. Schäublestressedthathewasnot pushing the Greeks to take any particular course and that in any case he was only talking about a tempo- rary exit from the euro. But coming a day before German lawmakers aretogivethego-aheadtonegotiate thedetailsofthebailoutpackagefor Athens, his remarks were evidence of a continuing deep ambivalence among conservatives in Germany about the costs of keeping Greece in the currency zone and a greater willingnesstoquestionwhetherthe goal of “ever-closer union” in Eu- rope should be reassessed. Many in Germany still support the idea that keeping Greece in the eurozoneisimportantforthefuture oftheEuropeanUnion,andGerman lawmakers are expected to support the new bailout plan when it comes up for a vote in Berlin on Friday. But Schäuble’s reminder that another option exists — the second time he had raised the idea this week — came as close partners like France were expressing greater willingness to help Greece, and some Germans are uneasy that their finance minister’s handling of the situation has hurt their reputa- tion. MELISSA EDDY EL RENO, Okla. — They opened the door to Cell 123, and President Obama stared inside. In the space of 9 feet by 10 feet, he saw three bunks, a toilet with no seat, a night table with books, a small sink, prison clothes on a hook, some metal cabinets and the life he might have had. In becoming the first occupant of his high office to visit a federal correctionalfacility,Obamacould not help reflecting on what might have been. After all, as a young man, he smoked marijuana and tried cocaine. But he did not end up with a prison term. As it turns out, Obama noted, there is a fine line between president and prisoner. “There but for the grace of God,” he said som- berly after his tour. In visiting the El Reno prison, Obama went where no president ever had before, both literally and figuratively, hoping to build supportforabipartisanoverhaul of America’s criminal justice system. While his predecessors worked to toughen life for crimi- nals, Obama wants to make their conditions better. HecametotheFederalCorrec- tional Institution El Reno, about 30 miles west of Oklahoma City, for a firsthand look at what he is focused on. Accompanied by aides, correctional officials and a phalanxofSecretServiceagents, Obama passed through multiple layers of metal gates and fences topped by concertina wire to en- ter the facility. El Reno, a medium-security prison with a minimum-security satellite camp that together house 1,300 men, was locked down for the visit. The only inmates Obama saw during his visit were six nonviolent drug offenders who were selected to have a 45-minute conversation with him at a round table. It was recordedforaVicedocumentary. The six seemed to make an im- pression. “When they describe their youth and their childhood, these are young people who made mistakes that aren’t that different than the mistakes I made and the mistakes that a lot of you guys made,” Obama said afterward. “The difference is they did not have the kinds of support struc- tures,thesecondchances,there- sources that would allow them to survive those mistakes.” Advocates said no president had ever highlighted the conditions of prisoners so personally. “They’re out of sight and out of mind,” Cornell William Brooks, the president of the N.A.A.C.P., said in an interview. “To have a president say by his actions, by his speech, by his example, ‘You’re in sight and in mind of the American public and of this democracy,’ it’s critically important.” PETER BAKER GrowsSharper InGreekCrisis F R O M T H E PAG E S O F FRIDAY, JULY 17, 2015 © 2015 The New York TimesFROM THE PAGES OF

2. Sea Warming Leads to Ban The United States and four other nations that border the Arctic Ocean pledged on Thursday to prohibit commercial fishing in the international waters of the Arctic until more research could be done on how warming seas and melting ice are affecting fish stocks. The agreement came as an annual report on the world’s climate — released by the Nation- al Oceanic and Atmospheric Administration and the American Meteorological Society — said that temperatures on the ocean surface reached the highest levels in 135 years of record keeping. The ocean’s rising temperature has drawn fish stocks farther north. That de- velopment, along with the shrinking levels of ice, has raised the prospect of industrial-scale fishing in the once-inaccessible Arctic. (NYT) Chinese Cremate Monk The authorities in southwest China on Thursday cremated the body of a prominent Tibetan monk who died in prison last week, ignoring the pleas of relatives, religious leaders and thousands of supporters who had de- manded that they be allowed to carry out fu- neral rites integral to Tibetan Buddhism. Rel- atives of the monk, Tenzin Delek Rinpoche, 65, said prison officials in Sichuan Province had brushed aside their requests and hastily cremated his body early Thursday. Rights advocates have been calling for an investigation into the death of Tenzin Delek, who had been serving a life sentence on charges of terror- ism and incitement of separatism. (NYT) Violence Flares at Border Tensions erupted into violence on Thurs- day between the estranged, nuclear-armed neighbors Pakistan and India, as both sides made competing claims of violations by security forces along the de facto border in the disputed Kashmir region. Pakistani officials said at least four civilians were killed and several more were wounded after Indian forces opened fire on areas across the contested border. On Wednesday, India’s paramilitary Border Security Force accused Pakistan of firing mortar shells that killed one woman and wounded four people in a border village, according to The Associated Press. (NYT) In Brief CAIRO — A militant group affil- iated with the Islamic State said it had destroyed an Egyptian naval vessel on Thursday, posting photographs on social media of a missile exploding in a ball of fire as it slammed into the vessel. An Egyptian military spokes- man said that the crew of the un- namedship“exchangedfire”with militantsoffthecoastofthenorth- ernSinaiPeninsula,causingafire thatdidnotresultinanyfatalities. But the militant group, which callsitselfSinaiProvince,claimed that the missile was guided and had killed everyone on board. It was at least the fourth unusu- allyboldmilitantassaultsincelate June, when Egypt’s top prosecutor was killed by a car bomb that detonated near his convoy. Each new attack has chipped away at claimsbythegovernmenttohave gained the upper hand over an insurgency that began after the military deposed President Mo- hamedMorsioftheMuslimBroth- erhood in July 2013. BothSinaiProvinceandthemil- itary said the ship had been north of Rafah, in the northern Sinai Peninsula,whenitwasfiredupon. The conflicting versions of the at- tackwereimpossibletoreconcile. A witness to the attack on Thursday, Nabil Abu Ouda, who lives in the Gaza Strip, said he heard an explosion and saw a “big gunboat on fire.” Three boats sped toward the ship and put out theblazebeforetowingitaway,he said. KAREEM FAHIM BEIRUT, Lebanon — For decades, Saudi Arabia has poured billions of its oil dollars into sym- pathetic Islamic organizations around the world, quietly prac- ticing checkbook diplomacy to advance its agenda. But a trove of thousands of Saudi documents released by WikiLeaks reveals in surprising detail how the government’s goal in recent years was not just to spread its strict version of Sunni Islam — though that was a priori- ty — but also to undermine its pri- mary adversary: Shiite Iran. The documents from Saudi Arabia’s Foreign Ministry illus- trate a near obsession with Iran, with diplomats in Africa, Asia and Europe monitoring Iranian activ- ities in minute detail and top government agencies plotting moves to limit the spread of Shiite Islam. Thescopeofthisglobaloil-funded operation helps explain the kingdom’s alarm at the deal reached on Tuesday between worldpowersandIranoveritsnu- clearprogram.Butthedocuments reveal a competition that is far more comprehensive, with deep roots in the religious ideologies that underpin the two nations. Recentinitiativeshaveincluded putting foreign preachers on the Saudi payroll; building mosques, schools and study centers; and undermining foreign officials and news media deemed threatening to the kingdom’s agenda. “We are talking about thousands and thousands of activist organizations and preachers who are in the Saudi sphere of influence because they are directly or indirectly funded by them,” said Usama Hasan, a senior research- er in Islamic studies at the Quil- liam Foundation in London. While the documents do not show any Saudi support for militant activity, critics argue that the kingdom’s campaign against Shiites — and its promotion of a strict form of Islam — has eroded pluralismintheMuslimworldand added to the tensions fueling con- flictsinIraq,Syriaandelsewhere. Even humanitarian relief is sometimes sectarian. In 2011, the Saudi foreign minister requested aid for flood victims in Thailand, noting that “it will have a positive impact on Muslims in Thailand and will restrict the Iranian government in expanding its Shiite influence.” BEN HUBBARD and MAYY EL SHEIKH ISIS Affiliate Claims to Destroy A Naval Vessel WikiLeaks Cables Highlight a Saudi Obsession TOKYO—Defyingbroadpublic opposition and large demonstra- tions, Prime Minister Shinzo Abe won a crucial vote in Parliament on Thursday for legislation that would give Japan’s military limited powers to fight in foreign con- flictsforthefirsttimesinceWorld War II. Abe’s party and its allies in the lower house of Parliament ap- proved the 11 security-related bills after opposition lawmakers walked out in protest and as dem- onstrators chanted noisily outside. The upper chamber, which Abe’s coalition also controls, is all but certain to endorse the legislation as well. Thevotewastheculminationof months of contentious debate in a society that has long embraced pacifism to atone for wartime ag- gression. It was a significant vic- toryforAbe,aconservativepoliti- cianwhohasdevotedhiscareerto moving Japan beyond guilt over its militarist past and toward his vision of a “normal country” with a larger role in global affairs. Abe has pressed this agenda, though, against the wishes of much of the Japanese public, and hismoveshavegeneratedunease across Asia, especially in countries it once occupied. Final pas- sageofthebillswouldrepresenta break from the strictly defensive stance maintained by the Japa- nese military since the war. Critics, including a majority of Japanese constitutional special- ists, say it violates the country’s postwar charter. But the legislation is supported by the Unit- ed States, Japan’s wartime foe turned ally, which has welcomed a larger role for Tokyo in regional security as a counterweight to a more assertive China. Abe has spent considerable political capital pushing the bills through. Voters oppose them by a ratio of roughly two to one, ac- cordingtonumeroussurveys,and the government’s support ratings, which were once high, fell to around 40 percent in several polls taken this month. JONATHAN SOBLE Japan Takes Step Toward Restoring Combat Powers INTERNATIONAL FRIDAY, JULY 17, 2015 2

3. WASHINGTON — For the first time in 14 years, the Senate on Thursdayapprovedarevisedver- sion of No Child Left Behind, the signatureBush-eraeducationlaw that ushered in an era of broadly reviled, high-stakes standardized testing. But the passage of the bill on an 81-17 vote, coming just a week after the House narrowly passed its own version, sets up a showdown between the two chambers, and leaves the fate of a final measure in doubt. Both bills return some power to local governments but differ over theroleofthefederalgovernment and funding allocations. At the heart of the debate is the appropriate role for the federal government in education programs, which are largely a functionofstateandlocalgovern- ments. Leaders from both sides insist they can come to an agreement that can make it to President Obama’s desk. “There are some important dif- ferences, and we’ll have to work this out,” Sen. Lamar Alexander, R-Tenn. and chairman of the Sen- ate education committee, said on the Senate floor Thursday. In the House, final passage of a bill last week came only after it was amended so it would include provisions that would decrease theroleofthefederalgovernment in education — a central goal of manyRepublicans—andwithout the support of Democrats. The Senate bill, a product of in- tense negotiations between the parties with a slew of amendment votes to please both sides, is less expansive in its scope and pre- scriptions. While both bills retain the annual reading and math tests re- quired under current law, states would be given latitude to decide how those assessment tests are usedtomeasureschoolandteach- er performance. JENNIFER STEINHAUER CHICAGO — The Wisconsin Supreme Court on Thursday or- dered an end to an investigation into whether Gov. Scott Walker’s recall campaign in 2012 illegally coordinated with conservative groups, removing a potentially thornyissuefromhisbuddingrun for the Republican presidential nomination. In a divided ruling from the highly polarized court, a majority of Wisconsin justices found that the state’s campaign finance law included language that was un- constitutionally vague and broad, a finding that could be seen as looseningfund-raisingandspend- ing regulations on so-called issue advocacy involving all political groups in the state. The ruling, complicated by three related lawsuits, numerous separatelegalissuesandmultiple writtenopinions,concludedthata largely secret investigation into outside groups and Walker’s suc- cessful effort to survive a recall in 2012 could not continue “because the special prosecutor’s legal the- ory is unsupported in either reason or law.” The case had threatened to disrupt Walker’s political aspira- tions,thoughaspecialprosecutor had said the governor was not a target of the investigation, and no charges came out of it. MONICA DAVEY CENTENNIAL, Colo. — Inside Courtroom 201, the families of the dead and wounded watched in taut silence on Thursday af- ternoon as the judge shuffled through a stack of verdict forms containing the fate of the gunman whoslippedintoaColoradomovie theater in 2012 and opened fire on their sons and daughters, friends and loved ones. As the judge began reading the verdicts — guilty, guilty, guilty — repeated 165 times over an entire hour, for each count of murder and attempted murder, the families sobbed quietly, clutched one another’s shoulders and nodded along to a recitation of guilt that many had been waiting nearly three years to hear. After an emotional 10-week trial, one of the longest and most complex in this state’s history, it took a jury of nine women and three men about 12 hours of delib- eration over two days to convict James Holmes on all counts. He now faces a lengthy sentencing process in which prosecutors are seeking the death penalty. The jury’s verdict roundly re- jected arguments from his defense lawyers that he had had a psychotic break and was legally insane when he carried out the massacre inside the Century 16 theater in suburban Aurora, Colo. His lawyers argued he was not in control of his thoughts or actions, but prosecutors said Holmes, despite being mentally ill, had plot- ted the shootings with calculation and knew what he wanted to ac- complish when he started firing into the crowd. As Judge Carlos Samour Jr. read the 165 counts against Holmes, the defendant stood si- lently between his lawyers, star- ing straight ahead, with his hands tuckedintothepocketsofapairof khaki-colored pants. He did not glance at his parents sitting two rows behind. Coming within days of the Au- rorashooting’sthirdanniversary, the guilty verdict ends one phase ofagruelinglegalsaga,butanoth- er one is set to begin. The jury will begin weighing the toll and na- ture of Holmes’s actions to decide whether to send him to prison for life or to Colorado’s death row. Thesentencingphaseisexpect- ed to take weeks. It could feature more wrenching statements from survivors and families of the victims, as well as testimony from defense witnesses discussing the role that mental illness played in propelling Holmes toward the movie theater that night. Two psychiatrists who testi- fied for the defense said Holmes lackedtheabilitytotellrightfrom wrongoractwithintent—critical elementsofsanityunderColorado law. Their testimony clashed with twocourt-appointedpsychiatrists who said that while Holmes suf- fered a severe mental illness on a spectrum with schizophrenia, he was not legally insane when he walked into the theater. JACK HEALY and JULIE TURKEWITZ Court Blocks Investigation Into Walker’s ’12 Recall Race Senate Approves Update of ‘No Child Left Behind’ Verdict Is Guilty, 165 Times Over, in ’12 Attack Alaska’s Governor Will Expand Medicaid Afterfailingtopersuadehis LegislaturetoexpandMedicaid, Gov.BillWalkerofAlaskasaid Thursdaythatheplannedto unilaterallyacceptthefederal fundsavailabletocovermore low-incomeresidentsunderthe program.Walker,anindependent whotookofficeinDecember,said thathecouldnotwaitanylonger toofferhealthcoveragetothe roughly42,000peoplehisadmin- istrationprojectswillbeeligible undertheexpansion.Walkersaid hehadsentalettertothestate’s LegislativeBudgetandAudit CommitteeonThursday,giving itarequired45-daynoticeofhis intentiontoacceptthefederal expansionfunds.Walkersaidhe hadtheauthorityunderstatelaw toproceedevenifthecommittee didnotapprove. (NYT) U.S. Offers New Rule To Protect Streams TheInteriorDepartmenton Thursdayproposedanewrule aimedatprotectingstreamsfrom thehighlevelofpollutioncaused byatechniqueknownasmoun- taintopremovalmining.Thepro- posedrulequicklymetfierceop- positionfromtheminingindustry andsomeRepublicans.Therule wouldhavethegreatesteffecton statesinAppalachia,wherethe miningpracticeismostcommon. Obamaadministrationofficials andenvironmentalgroupssaid thateventhere,therulewasun- likelytobeasignificantdeterrent tomountaintopmining. (NYT) Woman’s Death Raises Questions Family and friends sought more details Thursday about the death of a black woman who authorities say hanged herself in a Texas jail after her arrest for allegedly kicking an officer fol- lowing a traffic stop, saying San- dra Bland gave no indication she was in such an emotional state that she would kill herself. The Texas Rangers and the F.B.I. are investigating the circumstances surrounding Bland’s death, and a prosecutor said he planned to present the findings to a grand jury. Bland, 28, of Naperville, Ill., was found dead Monday in a jail cell in Hempstead, Tex. (AP) In Brief NATIONAL FRIDAY, JULY 17, 2015 3

4. Australia (Dollar) .7400 1.3514 Bahrain (Dinar) 2.6522 .3770 Brazil (Real) .3167 3.1580 Britain (Pound) 1.5605 .6408 Canada (Dollar) .7721 1.2952 China (Yuan) .1610 6.2094 Denmark (Krone) .1457 6.8612 Dom. Rep. (Peso) .0222 45.0500 Egypt (Pound) .1277 7.8300 Europe (Euro) 1.0876 .9195 Hong Kong (Dollar) .1290 7.7507 Japan (Yen) .0081 124.14 Mexico (Peso) .0632 15.8297 Norway (Krone) .1226 8.1583 Singapore (Dollar) .7316 1.3668 So. Africa (Rand) .0807 12.3867 So. Korea (Won) .0009 1145.7 Sweden (Krona) .1170 8.5490 Switzerland (Franc) 1.0443 .9576 The European Commission announced two antitrust investi- gationsonThursdayintothechip maker Qualcomm, the latest in a number of recent competition inquiries aimed at United States technology giants. Europe’santitrustofficialssaid they would investigate whether Qualcomm, one of the world’s largest chip makers, had abused its dominant market position in the region by offering financial incentivestopotentialcustomers if they bought equipment solely from the American company. European authorities will also examine whether Qualcomm unfairly set prices below its man- ufacturing costs to force compet- itors from the market. The company’s chips are used in smart- phonesandothermobiledevices, which are increasingly central to how people use online services. “We want to be sure that high- tech suppliers can compete on the merits of their products,” Margrethe Vestager, Europe’s top competition official, said in a statement on Thursday. “Many customersuseelectronicdevices suchasamobilephoneoratablet, and we want to ensure that they ultimately get value for money.” European antitrust investiga- tions can take several years to complete. Qualcomm said that it was disappointed that European authorities had opened the inves- tigations but that the company would continue to work with the region’s antitrust officials. “We continue to believe that any concerns are without merit,” Qualcomm said in a statement. MARK SCOTT LOS ANGELES — Typical- ly, the outsize attention given a novel like “Go Set a Watchman” would set off an immediate scramble in Hollywood for the film rights. But, as with seemingly everything surrounding the recently rediscovered book by Harper Lee, the situation is not that sim- ple. Those who represent Lee say they are not entertaining any offers at the moment. Beyond that, there is a question of what role Universal Pictures, which released the film version of Lee’s “To Kill a Mockingbird” in 1962, would play in a film of “Watch- man,” which has several of the same characters. Otherconcernsmayincludean uncertain audience for ’50s-era period film, and how moviegoers wouldrespondtoanewportrayal of Atticus Finch, who is depicted as a racist in “Watchman,” but is soidentifiedwithGregoryPeck’s Oscar-winning portrayal of him as a colorblind champion of justice in “Mockingbird.” In any case, Universal’s role in any film based on “Watch- man” still needs to be clarified. A spokeswoman for Universal declined to comment. Carey Paul Peck, one of Peck’s children, said he did not know whether the Peck estate held rights that might complicate any attempt to film “Go Set a Watch- man.” Asked whether he had concerns about the characterization ofFinchin“Watchman,”inwhich it is revealed that he once attend- ed a Klan meeting, Peck said he did not. Mary Badham, nominated as best supporting actress for her portrayal of Finch’s young daughter, Scout, said she saw the makingsofafinefilmin“GoSeta Watchman.” But that, she said, would re- quire close attention to an aspect ofthebookandofAtticusthatshe thinks some have overlooked. “In the right hands, it could do very well,” Badham said. “But it needs very sensitive handling.” MICHAEL CIEPLY and BROOKS BARNES Investors have spent the past year telling Google to stop opening its wallet so much. On Thurs- day, they got their wish. In the first earnings report for Ruth Porat, the chief financial officer Google lured from Morgan Stanley, Po- rat said the company was keeping a clos- ereyeoncosts, and the num- bers backed her up with revenue and profits outpacing the expec- tations of Wall Street. The slower growth in costs, along with suggestions from Po- ratthatGooglewilltrytobemore forthcoming with investors — and may be open to redistribut- ing some of the company’s cash pile down the line — suggested a new era of cooperation from a company that has historically had an antagonistic relationship with Wall Street. “She confirmed that they are moreopentofocusingonexpense controls, more open to providing newdisclosuresandmoreopento potentially returning cash,” said Ben Schachter, an analyst with MacquarieSecurities.“Thoseare the three things people wanted, and she came through.” Porat has been on the job since May,soshehadlittleifanyimpact on the company’s second-quarter results. Still, analysts like Schachterwereimpressedbyher investor-friendlytoneandGoogle shares jumped nearly 11 percent inafter-hourstrading. In a conference call with investors, Porat used words like “prioritize” and “judiciously” to suggest that they will pursue projects with an eye toward the bottom line. “How we prioritize and focus on these opportunities remains paramount,” she said. The Internet search company reported that revenue rose 11 percentto$17.7billionfromayear earlier, with net revenue — a fig- urethatexcludespaymentstoad- vertising partners — increasing to $14.35 billion. That was above the $14.28 billion projected by analysts, according to Bloomberg. “Our strong Q2 results reflect continued growth across the breadthofourproducts,mostno- tably core search, where mobile stoodout,aswellasYouTubeand programmatic advertising,” said Porat. CONOR DOUGHERTY Source: Thomson Reuters ONLINE: MORE PRICES AND ANALYSIS Information on all United States stocks, plus bonds, mu- tual funds, commodities and foreign stocks along with analysis of industry sectors and stock indexes: nytimes.com/markets ➡ FOREIGN EXCHANGE Fgn. currency Dollars in in Dollars fgn.currency THE MARKETS DJIA 70.08 0.39%U 18,120.25 S P 500 16.89 0.80%U 2,124.29 NASDAQ 64.24 1.26%U 5,163.18 EUROPE BRITAIN FTSE 100 42.70 0.63%U 6,796.45 FRANCE CAC 40 74.26 1.47%U 5,121.50 GERMANY DAX 177.10 1.53%U 11,716.76 ASIA/PACIFIC NIKKEI 225 JAPAN 136.79 0.67%U 20,600.12 SHANGHAI CHINA 18.49 0.49%U 3,824.19 HANG SENG HONG KONG 107.02 0.43%U 25,162.78 AMERICAS TSX CANADA 68.80 0.47%U 14,731.08 BOLSA MEXICO 237.77 0.53%U 45,344.90 BOVESPA BRAZIL 167.47 0.32%U 53,069.75 COMMODITIES/BONDS GOLD 3.40D $1,143.80 CRUDE OIL 0.55D $51.24 10-YR. TREAS. YIELD unch. 2.36% European Officials Open Antitrust Inquiries Into Qualcomm Film of ‘Watchman’? First, Untangling the Rights Costs Slow, and Google Outpaces Forecasts Ruth Porat BUSINESS FRIDAY, JULY 17, 2015 4

5. MOST ACTIVE, GAINERS AND LOSERS % Stock (Ticker) Close Chg chg Bankof (BAC) 17.95 +0.27 +1.5 1167765 Intel (INTC) 29.90 +0.21 +0.7 811104 Netfli (NFLX) 115.81 +17.68 +18.0 629625 Citigr (C) 58.59 +2.13 +3.8 410680 Apple (AAPL) 128.51 +1.69 +1.3 359476 GM (GM) 30.61 ◊0.82 ◊2.6 358666 Micron (MU) 19.61 +0.72 +3.8 346883 FordMo (F) 14.57 ◊0.18 ◊1.2 338410 Applie (AMAT) 17.87 ◊0.70 ◊3.8 322843 eBay (EBAY) 65.59 +2.15 +3.4 310192 10 MOST ACTIVE % Volume Stock (Ticker) Close Chg chg (100) Rovi (ROVI) 14.00 ◊3.54 ◊20.2 89538 Travel (TZOO) 10.12 ◊2.41 ◊19.2 7058 IRIDEX (IRIX) 7.19 ◊0.98 ◊12.0 1140 Pionee (PPSI) 5.81 ◊0.69 ◊10.6 123 Fairch (FCS) 15.07 ◊1.74 ◊10.4 66648 CocaCo (COKE) 154.35 ◊17.71 ◊10.3 1365 TRACON (TCON) 12.04 ◊1.30 ◊9.7 1067 6DGlob (SIXD) 5.03 ◊0.53 ◊9.5 1174 Nephro (NRX) 5.70 ◊0.54 ◊8.7 1279 United (UBCP) 7.87 ◊0.67 ◊7.9 279 10 TOP LOSERS % Volume Stock (Ticker) Close Chg chg (100) Voltar (VLTC) 8.00 +2.23 +38.6 160824 AmiraN (ANFI) 13.61 +2.23 +19.6 14116 Sorren (SRNE) 21.85 +3.46 +18.8 19854 Cellco (CEL) 5.13 +0.79 +18.2 4007 Netfli (NFLX) 115.81 +17.68 +18.0 629625 ESSA (EPIX) 9.14 +1.39 +17.9 105 Campus (CCG) 6.59 +1.00 +17.9 14382 TECOEn (TE) 21.48 +2.90 +15.6 150909 Aceto (ACET) 26.80 +3.58 +15.4 8479 Univer (UFPI) 58.62 +7.25 +14.1 4425 10 TOP GAINERS Source: Thomson Reuters Stocks on the Move Stocks that moved substantially or trad- ed heavily Thursday: Citigroup Inc., up $2.13 to $58.59. The bank reported a jump in second-quarter profit a year after it paid a hefty legal set- tlement, beating Wall Street forecasts. Philip Morris International Inc., up $2.62 to $85.29. The tobacco company reported better-than-expected second-quarter profit as its market share improved and costs declined. The Sherwin-Williams Co., down $20.93 to $261.23. The paint manufac- turer reported worse-than-expected second-quarter profit and revenue and a disappointing fiscal outlook. Netflix Inc., up $17.68 to $115.81. The Internet video service reported better-than-expected second-quarter earnings as it boosted subscriber growth by expanding. eBay Inc., up $2.15 to $65.59. The e-commerce company reported better-than-expected second-quarter profit, but its revenue fell short of expec- tations. Garmin Ltd., down $3.30 to $43.10. The global positioning systems company provided a disappointing full-year outlook for profit and revenue, citing margin pressure. (AP) Volume (100) Selling the Self-Driving Car, at 120 M.P.H. Reddit’s New C.E.O. Walks a Tightrope SONOMA, Calif. — Markus Hoffmann, an engineer at Audi, preparedhimselfforahigh-speed runaroundtheSonomaRaceway here in Northern California. But instead of grabbing the steering wheel, he clutched a button he would release only if something went awry. The car, whichhecalledRobby,wasgoing to negotiate the two-and-a-half- mile Nascar track by itself — at 120 miles an hour. “If something goes wrong, I’ll take over,” he said. With that, a computer in the trunktwitchedthesteeringwheel into position, and Robby took off. As the Audi RS7 negotiated hairpin turns on the road course at top speed and came within inches of the raceway’s walls, it became clear after some tense moments: This car knew what it was doing. Auto engineers at tradition- al carmakers like Audi, and at Google and Tesla, are in an arms race of sorts in the rush to build self-driving cars, a technology they say will make driving safer andfreedriversofmind-numbing hours behind the wheel. But to do that, they first must clear an important hurdle: winning the public’s trust. Building faith in autonomous technology is pivotal for Audi, which says that in the next three years it will sell a luxury sedan that can control itself during a traffic jam. One way Audi plans to inspire confidence in consumers is by takingdesigncuesfromcommer- cial airplanes, which people al- readytrust,evenwhentheyknow that a computerized autopilot is guiding them through the air. But Bryan Reimer, a research scientist at the Massachusetts Institute of Technology, warned that the analogy to pilots went only so far. “It’s a myth that the more automation you have, the less education you need,” he said. “The pilots are there to supervise the automation and take control when the automation exceeds its boundaries.” Audi’s upcoming A8 car will be able to drive itself only at low speeds on highways when traffic is tight, reassuring the driver by displaying road signs it spots on the navigation screen. And that leadstoasecondchallengeforen- gineers: how to tell drivers when they need to take control. “Atthispoint,substantialeffort in the automotive community is focused on developing fully autonomous driving technology,” said Karl Iagnemma, an automo- tiveresearcheratM.I.T.“Farless effort is focused on developing methodstoallowadrivertointui- tivelyandsafelyinteractwiththe highly automated driving vehi- cle.” DINO GRANDONI The return of a founder to a companyisawell-wornstoryline in Silicon Valley. In Apple’s darkest hour, Steve Jobs came back, eventually turning the computer maker into the world’s most valuable cor- poration. In April, Mark Pincus stepped back into the chief executive role at Zynga. And Jack Dorsey, a co-founder of Twitter, has twice returned to help right the social media company’s ship. Now Steve Huffman, who co-founded Reddit in 2005, may have one of the toughest returns of all. After being away for six years, Huffman reappeared last Friday as chief executive to pull off a turnaround of the online message board, which has grap- pled with a series of missteps and is embroiled in a battle to win back the confidence of its users. On Thursday, Huffman made his first moves toward that end. The company proposed a new content policy for the site that would effectively ban spam, ille- gal activity and harassment, as well as the posting of “private or confidential information” and sexual content involving minors. The proposals are not set in stone, and Reddit will take sug- gestionsonchangesfromitscom- munity of users, who are known as Redditors. But the moves risk alienating the new chief executive from the community he helped create a decade ago. The site still resembles a retro messageboard,withlongthreads of text and few visuals. But as the site has grown, Huffman said, Reddit’s views on what sort of content should and should not be allowed have evolved. “Wecannotturnablindeyetoit like we have in the past,” he said. Those in Reddit’s hard-core user base define themselves as defenders of free speech and ad- versariesofcensorship,andhave historically reacted negatively to any new proposals that would prevent that. HuffmaniswalkingintoReddit at a crisis moment. His predeces- sor,EllenPao,resignedlastweek after a wave of criticism over the sudden dismissal of a well-liked Reddit employee. Eventually, Reddit must also figure out how to generate more revenue, which traditionally the company has done primarily through advertising. And while Facebook and Twitter are more prohibitive of what is posted to their networks, some of Reddit’s moreobjectionablecontentcould scare off potential advertisers. “To attract more mainstream audiences and bring in the big-budgetadvertisers,youmust hide or remove the ugly,” Pao wrote in an opinion piece in The Washington Post on Thursday. “No one has figured out the best place to draw the line between bad and ugly — or whether that linecansupportaviablebusiness model.” MIKE ISAAC JASON HENRY FOR THE NEW YORK TIMES Steve Huffman at Reddit’s office in San Francisco. A co-founder of the online message board, he returned to the company as its new chief executive. BUSINESS FRIDAY, JULY 17, 2015 5

6. Air and road travel aren’t usually conducive to food that’s healthy, appetizing and easy to tote;severalnewportableoptions can be of some help. EpicBarmakesgluten-freeand low-carb protein bars of grass- fed meats mixed with fruits,nuts,seedsand spices. They come in nine flavors like chicken with Sriracha and lamb with currant and spearmint ($2.79). Wilderness Poets has single-serve packs of nut butters in six varieties including pistachio and pecan ($3 to $4). The butters are ideal to sand- wich between the stackers — thin and crunchy brown rice-based crackers large enough to hold spreads and deli meats — made bythericebrandLundbergFami- ly Farms ($3.49). The chickpea-cen- tric company the Good Bean makes seven flavors of dried and roasted chickpeas like sea salt and Thai coconut lemongrass.Theyare high in protein and fiber and packaged in resealable bags ($3.99 to $4.29 for a 16-ounce bag). Joy Bauer, a nutritionist, recently started Nourish Snacks, 21 kinds of blends, which are 200 calories or fewer, like Sweet and Salty Ka- pow with tart cherries and roasted edamame ($1.99 to $2.79). The five flavors of snack bars like coconut cashew from the natural food brand Vega are also fewer than 200 calories. They’re low in sug- ar and have plant- based protein from chia and hemp seeds ($1.99). And Fruits in Chocolate are in- dividually wrapped whole dried prunes, apricots and cherries covered in dark chocolate ($4.99 for a bag containing nine to 12 pieces). These snacks are convenient but don’t sacrifice taste or nu- trition, according to Allison Arnett, a regis- tered dietitian in Fair- field, Conn. “Traveling canbeagoodexcuseto turn to junk food, but withthesechoices,you can leave home with healthy bites in your bag,” she said. SHIVANI VORA StatenIslandhashistoricallybeenknownfor itsItalianandIrishheritage,andmorerecently RussiansandLiberians.However,inthelastde- cade, the Sri Lankan population growth in the borough has created a “Little Sri Lanka” in the TompkinsvilleandSt.Georgeneighborhoods. StatenIslandishometothecity’slargestSri Lankan population. Though a decades-long civil war in Sri Lanka escalated tensions be- tweenSinhaleseandTamilethnicgroups,here the two groups live peaceably in clapboard houses and brick town houses with modest, fenced-in front lawns. Little Sri Lanka, where everything from Sri Lankan beer to homemade curry powder can befound,isnotquiteasbustlingasLittleIndia in Jackson Heights, Queens, lacking the many grocers, jewelry shops, restaurants and beau- ty salons with Bollywood music blaring from storefronts. But Little Sri Lanka’s restaurants are the emotional heart of this growing community. Some of the best spots to sample Sri Lankan cuisine in New York lie along Victory Boule- vardinTompkinsvilleandfartherafieldonBay StreetinthenearbyStapletonneighborhood. Delicacies include hoppers (fermented rice flourbowlsservedwithafriedegg)andkotthu (roti chopped and stir-fried with vegetables, eggs and sometimes meat). “When I first came to this country, people were scared of Sri Lankan food,” said Sanjay Handapangoda, the chef at San Rasa, a casual restaurant he opened in 2007 on Corson Street in Tompkinsville. The restaurant, in shades of red and dark wood, is decorated with trinkets from Sri Lanka. “WhenIstartedtherestaurantIdidn’teven have five or six people for the Sunday buffet,” he said. “Now I have 80.” Customers,amixofSriLankansandnon-Sri Lankans, pack the restaurant in the evenings as well. He prides himself on bringing what he calls a more refined, nuanced approach to Sri Lankancuisine.Asignaturedishishisversion of lamprie (also known as lamprais or lam- prey). This relic of Dutch colonialism arrives in a banana leaf and is unfolded to reveal rice, meat, curried vegetables and even cashews. Meals are a little simpler at New Asha, a 10-minute walk down Victory Boulevard, also inTompkinsville.The15-year-oldrestaurantis unassuming, offering a fast-food counter, caf- eteria-like tables and cricket matches stream- ingontheTV.Butwhattheplacelacksinstyle, it makes up for in substance. The genial face of New Asha, Vijayakumari Devdas (known as Viji), runs the establish- ment with her husband, Devdas Ceruphatie; her brother Subhaschandraboase Ranakisa- na; and her brother’s wife, Udayakumari Sub- haschandraboase. Viji has no professional cu- linary training, yet skillfully serves up curried jackfruit (a starchy fruit tasting like a cross between a banana and pineapple), malu paan (a fish and potato bun eaten for breakfast or as a snack) and Asha’s chicken (a spicy fried chicken house specialty) to Sri Lankan expats yearningforatasteofhomeandtopatronsea- ger to try something new. One of the most authentic Sri Lankan dining experiences in Staten Island can be found a 10-minute bus ride away on Bay Street in Sta- pleton at Lakruwana. Diners sit on elongat- ed triangular-shaped metal chairs, studying menus of hearty, home-cooked meals. Jayan- tha Wijesinghe grew up cooking with her mother in Sri Lanka and opened Lakruwana with her husband, Lakruwana Wijesinghe. Sunday brunch includes more than 20 dishes, suchaspineapplecurry,kaleandcoconut,and green egg curry. SureshSeneviratne,amarketingdirectorin Manhattan who moved from Sri Lanka to the United States as a child, visits Little Sri Lanka often and said he wishes the community were larger. “I can only hope that it will turn into a Little India — how fun that would be!” RACHEL KHONA Avoid the Junk for a New, and Healthier, Type of Travel Snack On New York’s Staten Island, Savoring Flavors of Sri Lanka PHOTOGRAPHS BY TONY CENICOLA/THE NEW YORK TIMES Sri Lankan food has permeated Staten Island, home to the largest Sri Lankan population in New York. Left, dishes at Lakruwana and lamprie at San Rasa. TRAVEL FRIDAY, JULY 17, 2015 6

7. ‘Game of Thrones’ and HBO Lead Emmy Nominations The fantasy epic “Game of Thrones” and its home network,HBO led the field in the nomi- nationsforthe67thPrimetimeEmmyAwards announced Thursday. But while HBO held the lead, competition for the top prizes in drama and comedy continued to heat up across broadcast, cable and streaming outlets — signaling the vast changes that are reshaping the television landscape. “The pool is getting bigger, the number of great shows being produced is getting larger, and the end result is that more people are watching more television than ever before,” said Bruce Rosenblum, chairman of the Tele- vision Academy, which oversees the awards. “Game of Thrones” scored more nominations than any other show, 24, including a nod for outstanding drama series. HBO received two nominations in the comedy category, for “Silicon Valley” and “Veep,” and amassed a record total of 126 across all categories. Netflix earned 34 nominations — three more than last year — including recognition for its political thriller “House of Cards” and its prison series “Orange Is the New Black” in the drama category, and for “Unbreakable Kimmy Schmidt” in the comedy field. Ama- zon, meanwhile, received 12 nominations, led by “Transparent,” about a family in which the father comes out as transgender. In January, the series won a Golden Globe. “We are deeply proud of our creative partners, the most gifted and visionary collabora- tors working in television today and are hon- ored by this morning’s Emmy nominations,” said Ted Sarandos, Netflix’s chief content officer. For the broadcast networks, this year’s nominations proved disappointing once again. None of the four big networks have received a nomination for best drama since 2011. Fox was hoping to break through with its smash hip-hop drama “Empire,” which proved a ratings bonanza after its debut in the winter. But the series received a disappointing three nominations and was not included in the outstanding drama category. AMC has won the prize for outstanding drama six out of the last seven years, taking home four wins for “Mad Men” and two for “Breaking Bad.” Before “Mad Men,” a basic cable network had never won that award. “In an increasingly crowded and competitive TV landscape, we know how hard creators, casts and everyone associated with these productions work to deliver their best,” said Charlie Collier, president of AMC and SundanceTV. “To have these efforts acknowledged by the industry is something we appre- ciate and never take for granted.” Streaming services added a dose of new competition to the comedy category, chal- lenging ABC’s “Modern Family,” which has won an Emmy in each of the last five years. Amazon’s “Transparent,” and Netflix’s “Un- breakable Kimmy Schmidt” about the life of a Pollyanna-like woman who escapes from a cult after 15 years, were both nominated. It’s been a year of transformation for late- night shows, and shows hosted by two come- dians who are moving on — David Letterman, who has retired, and Stephen Colbert, who is replacing Letterman — were nominated in the variety talk show category. There were joined by Jon Stewart, Jimmy Kimmel, John Oliver and Jimmy Fallon. EMILY STEEL ACROSS 1 Open 7 Fix … or damage 13 “The Imitation Game” machine 14 Island bigwigs 15 Begins a meal 16 Person having one too many? 17 “100 Years … 100 Movies” grp. 18 1994 Jean- Claude Van Damme film 20 Notable Chinese general 21 Meeting place 23 There are 60 in a minute 24 Photoshop option 25 Gainsborough’s river 27 “Life Is Good” rapper, 2012 28 Groups of gamers 29 1990s sitcom set in New York 32 Flips 34 Daydreaming type 36 Voice of Pixar’s Mr. Fredricksen 39 Producer’s hope 40 2015 destination for the Dawn spacecraft 42 Dancer Fred Astaire, to Adele 43 Like a rainbow 45 Like e, but not i 46 Common URL ender 47 Explain 49 Agent Gold of TV 50 Man who named the Pacific Ocean 52 Incognito, maybe 54 Popular gag costume 55 Goddess of wisdom, to Homer 56 Marker of mistakes 57 Result of a messy breakup? DOWN 1 Nitpicker 2 Catholic school requirement 3 TED talk topics 4 Some TVs 5 “You’ve got no one else to turn to” 6 “Shut up!” 7 Starchy palms 8 Get cracking? 9 “Pirates of the Caribbean” quaff 10 “Peer Gynt” enchantress 11 Relay 12 Bars, to members of the bar 14 Money source since 2009 16 “Reason” that doesn’t explain anything 19 Third-party candidate, typically 22 Like some chairs 24 Hoarder’s problem 26 Daughter of David, in the Bible 28 Baby problem 30 Measure of volume 31 “Dee-lish!” 33 Buff runner? 35 Kind of bonus 36 Roberto in the Baseball Hall of Fame 37 It’s a wrap 38 Ate away (at) 41 Playground staples 43 Beat 44 “The Black Tulip” novelist 47 Fingerprint, perhaps 48 It might be worn by a hiking group 51 Subj. of the opening scene in “Ghostbusters” 53 Nonsense song syllable ANSWER TO PREVIOUS PUZZLE PUZZLE BY PAOLO PASCO 7/17/15 C O A L D A R T Z E L I G A N N A E N O W E C O L I L E T D O W N Y O U R H A I R D U D E G R O O M E D S I B C R A Z I E S P S Y C H O L O G Y T O D A Y I A N A P S A S A D O R E T I A R A S B R I G G S A A M E S B E A V N O E S T H E T H R I L L I S G O N E C A R L I T O D T S R E S E R V E M A L T I L L D O I T T O M O R R O W C L E E F T O N I I O W A H A D N T A L Y N M I N X 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 Online subscriptions: Today’s puzzle and more than 9,000 past puzzles, nytimes.com/crosswords ($39.95 a year). Read about and comment on each puzzle: nytimes.com/wordplay. Crosswords for young solvers: nytimes.com/studentcrosswords. CROSSWORD Edited by Will Shortz JOURNAL FRIDAY, JULY 17, 2015 7 620 Eighth Avenue, New York, NY 10018 • Tom Brady, Editor email: digesteditor@nytimes.com • TimesDigest Sales Office phone: (212) 556-1200 fax: (646) 461-2364 email: timesdigest@nytimes.com • For advertising information and to request a media kit contact InMotion Media: phone: (212) 213-5856 email: info@immww.com • Home delivery subscribers who have not received TimesDigest should call (800) 698-4637 or email customercare@nytimes.com

8. Obama Takes On the Prison Crisis The South China Sea, in Court Liberals and Wages On Thursday, for the first time in Ameri- can history, a president walked into a federal prison. President Obama was there to see for himself a small piece of the damage that the nation’s decades-long binge of mass incarcer- ation has wrought. Obama’s visit to El Reno, a medium-security prison in Oklahoma, capped off a week in which he spoke powerfully about the failings of a criminal justice system that has damaged an entire generation of Americans, locking up millions — disproportionately men of color — at a crippling cost to them, their families and communities, as well as to the taxpayers and society as a whole. On Monday Obama commuted the sentences of 46 people, most serving 20 years or more, for nonviolent drug crimes. It was a tiny frac- tion of the more than 30,000 people seeking clemency, but the gesture recognized some of the injustices of America’s harsh justice system. On Tuesday, in a wide-ranging speech to the N.A.A.C.P., Obama explained that people who commit violent crimes are not the reason for the exploding federal prison population over the last few decades. Most of the growth has come instead from nonviolent, low-level drug offenderscaughtupinabsurdlyharshmanda- tory minimum sentences that bear no relation to the seriousness of their offense or to the maintenance of public safety. Mandatoryminimumsshouldbereducedor eliminated completely, he said. Judges should have more discretion to shape sentences and to use alternatives to prison, like drug courts orcommunityprograms,thatarecheaperand can be more effective at keeping people from returning to crime. Obama also put a spotlight on intolerable conditions, like overuse of solitary confine- ment in which more than 80,000 inmates na- tionwide are held on any given day. Many are being punished for minor infractions or are suffering from mental illness. As Obama acknowledged, however, his powers are limited. Any comprehensive solution to this criminal justice catastrophe must comefromCongressandthestatelegislatures, which for decades enacted severe sentencing laws and countless other harmful measures. It’s time that Congress fixed the federal system. After failed efforts at reform, an am- bitious new bill called the SAFE Justice Act is winning supporters, including, on Thursday, the House speaker, John Boehner, and may have enough bipartisan support to pass. It would,amongseveralotherhelpfulprovisions, eliminate mandatory minimums for many low-level drug crimes and create educational and other programs in prison that have been shown to reduce recidivism. One sign of how far the politics of criminal justice has shifted was a remark by former president Bill Clinton, who signed a 1994 law that played a key role in the soaring growth of America’sprisonsystem.OnWednesday,Clin- tonsaid,“Isignedabillthatmadetheproblem worse. And I want to admit it.” It was a long overdue admission. A courtroom in The Hague has become an important new battleground in the multina- tional struggle over the resource-rich South China Sea. Based on a case brought by the Philippines against China, which claims it has rightsover90percentofthatbodyofwater,the proceedings at the Permanent Court of Arbi- tration are an attempt to resolve peacefully a dispute that had been playing out in increasingly dangerous confrontations. Earlier this year, satellite photos provided stark evidence of China’s determination to establish a sphere of influence over that sea, a strategically important waterway for billions inannualtradethatisalsothoughttoberichin oil and gas. Since January, the photos showed, China has accelerated its strategy of turning tiny coral specks into substantial artificial islands — including at least one with an airstrip — in an effort to assert its jurisdiction. Duringargumentslastweekatthecourt,the Philippines said China had violated the rights of individual countries and asked the tribunal to declare China’s claims invalid. For the Philippines, this case is about mari- time rights, including the right to fish and de- veloppotentiallylucrativeoilandgasdeposits withina200-nautical-mile“exclusiveeconom- ic zone” off its coast as defined under the 1982 United Nations Convention on the Law of the Sea. Chinainsiststhetribunalhasnojurisdiction, an issue the arbitrators will first have to ad- dress. A decision is expected in about 90 days. If awarded jurisdiction, the tribunal will then examine the substantive merits of China’s claims to most of the South China Sea. Previous efforts to resolve the contested claims diplomatically, either through bilater- al discussions between China and the various claimants or in a regional process, failed. That is because the status quo suits China just fine. It is not surprising that the Philippines would look for other ways to protect its inter- ests. Pursuing its claims through the court is far wiser than confronting China on the high seas and deserves the support of the United States and countries in that region. If the case goes against China, its leaders maywellignoreit.Buttheyshouldparticipate in the tribunal process if China wants to be recognized as a leader in a world that values theresolutionofdisputeswithinalegalframe- work. Hillary Clinton gave her first big economic speech on Monday, and progressives were by and large gratified. For Clinton’s core message was that the federal government can and should use its influence to push for higher wages. Conservatives, however — at least those who could stop chanting “Benghazi! Beng- hazi!Benghazi!”longenoughtopayattention —seemedbemused.TheybelievethatRonald Reagan proved that government is the problem, not the solution. In fact, Clinton’s speech reflected major changes in our understanding of what deter- mines wages. And a key implication of that new understanding is that public policy can doalottohelpworkerswithoutbringingdown the wrath of the invisible hand. In particular, the conventional wisdom at- tributed rising inequality to technological change, which was raising the demand for highly educated workers while devaluing blue-collarwork.Butthecasefor“skill-biased technological change” as the main driver of wage stagnation has largely fallen apart. Meanwhile, our understanding of wage determination has been transformed. More than two decades ago the economists David Card and Alan Krueger realized that when an individual state raises its minimum wage rate, it in effect performs an experiment on the labor market. Until the Card-Krueger study, most economists, myself included, assumed that raising the minimum wage would have a clear nega- tive effect on employment. But they found, if anything, a positive effect. Their result has since been confirmed using data from many episodes.There’sjustnoevidencethatraising the minimum wage costs jobs, at least when the starting point is as low as it is in modern America. How can this be? There are several an- swers,butthemostimportantisprobablythat the market for labor isn’t like the market for, say, wheat, because workers are people. And because they’re people, there are important benefits, even to the employer, from paying them more: better morale, lower turnover, in- creased productivity. The direct takeaway from this intellectual revolution is, of course, that we should raise minimum wages. But there are broader im- plications, too: Once you take what we’ve learned from minimum-wage studies serious- ly, you realize that they’re not relevant just to the lowest-paid workers. For employers always face a trade-off be- tweenlow-wageandhigher-wagestrategies— between,say,thetraditionalWalmartmodelof paying as little as possible and accepting high turnover and low morale, and the Costco model of higher pay and benefits leading to a more stable work force. And there’s every reason to believe that public policy can, in a variety of ways, encourage more firms to choose the good-wage strategy. PAUL KRUGMANE D I T O R I A L S O F T H E T I M E S OPINION FRIDAY, JULY 17, 2015 8

9. Clippers Add Forward The Los Angeles Clippers on Thursday signed forward Josh Smith, who helped eliminate them from the playoffs this year as a member of the Houston Rockets. Smith, 29, averaged 12.4 points, 6.4 rebounds and 1.4 blocks last season, playing 28 reg- ular-season games with Detroit and then 55 with Houston after the Pistons waived him. (AP) nTheSacramentoKingsvoided thecontractofforwardLucMbah aMouteafterhefailedaphysi- cal.TheteamhadhopedMbaha Moute,whosignedafree-agent dealTuesday,couldadddepthand defensetothesecondunit. (AP) Players Ratify Deal Major League Soccer players ratified their five-year collective bargaining agreement, which runs through the 2019 season. The M.L.S. Players Union said that 91 percent of its members voted in favor of the deal. (AP) Jang Leads by Stroke Ha Na Jang birdied the par-5 18th for a five-under-par 66 and a one-stroke lead through the first round of the L.P.G.A. Tour’s Mar- athon Classic in Sylvania, Ohio. Nannette Hill, Wei-Ling Hsu, Lee-Anne Pace and Sarah Kemp were tied for second. (AP) In Brief FIFA Executive Said to Be in U.S. After Extradition Johnson, Weeks After Collapse, Leads Open United States prosecutors have extradited a top FIFA executive arrested in Switzerland as part of their investigation of corruption in world soccer, and on Thursday they revealed that they had been engaged in plea negotiations with another defendant in the case. JeffreyWebb,whowasarrested in an early morning raid in Swit- zerland in May, agreed to extradition and is currently in the United States, a person who has been briefed on the investigation confirmed Thursday. Webb is the first of the 14 soccer officials and marketing executives indicted in May to be sent to the United States from abroad. The Swiss Justice Department said last week that one of the seven FIFA officials arrested and de- tained in Switzerland had agreed to be extradited, but did not name the official. Until his indictment, Webb, a native of the Cayman Islands, had been president of Concacaf, the regional confederation repre- sentingCentralandNorthAmeri- caandtheCaribbean.Hewasalso a vice president of FIFA, and he was known for calling for reform within the organization. The indictment charged that he asked for bribes in return for the lucra- tive television deals regarding soccer games. Another defendant, Aaron Da- vidson,asportsmarketingexecu- tive arrested in Florida, is in talks for a plea deal, prosecutors in the Eastern District of New York reported in a letter updating Judge Raymond J. Dearie. The racketeering and corruption case against the 14 officials and executives sent shock waves throughthesoccerworld.Though many had complained of corrup- tionwithinFIFA’sranksforyears, United States prosecutors bringing a case against so many officials at once startled soccer fans and executives. STEPHANIE CLIFFORD and WILLIAM K. RASHBAUM ST. ANDREWS, Scotland — Af- ter smacking his drive on the 13th hole Thursday, Dustin Johnson headed off the tee box and veered right. A smattering of fans was on that side. So, too, was a screened- off portable toilet. Johnson was hoping for a brief pit stop. But when he arrived at the door and found it shut, he was forced to improvise. With a quick turnandafurtiveglance,Johnson did as so many men on so many golf courses have done over the years. He then headed back toward the fairway just as the door opened and Johnson’s caddie and brother, Austin, emerged. “Guess you couldn’t wait?” Austin said with a playful smile. Etiquette questions aside, it was difficult to blame Johnson for wanting to avoid any disruptions to his rhythm. After spending much of the past month maintaining that he is not dwelling on his final-hole collapse at the United States Open, Johnson began the British Open by shredding the venerable Old Course with a seven-under-par 65 on Thursday. At the end of a first round that featured a typically Scottish me- nagerie of weather conditions, Johnson topped a leaderboard crowded with major winners, including Jordan Spieth, who arrived here having already won the Masters and the U.S. Open this year. PlayingalongsideJohnson,Spi- eth opened with a 67. Six players, including the former U.S. Open champion Retief Goosen, the former British Open champion Paul Lawrie and the former Masters championZachJohnson,werebe- tween them after shooting 66. Dustin Johnson said afterward that “there’s really no bad feel- ings” from the Open, adding that he believed he did “everything right” during the tournament at Chambers Bay. Inhismind,histhree-puttonthe 72nd hole, which allowed Spieth to win, was the result of inferior greens, not any flaw in his game. “There was nothing you could do on those greens there to make the ball go where you wanted it to go,” Johnson said. “I actually played really well and then it carried over to today.” That much, at least, was appar- entrightfromthestartasJohnson birdied two of his first three holes before eagling the par-5 fifth. He played his first nine in five-under 31,andwasoneofmanyplayersto take advantage of placid morning conditions on the easier opening half of the Old Course. SAM BORDEN WEATHER High/low temperatures for the 21 hours ended at 4 p.m. yesterday, Eastern time, and precipitation (in inches) for the 18 hours ended at 1 p.m. yesterday. Expected conditions for today and tomorrow. Weather conditions: C-clouds, F-fog, H-haze, I-ice, PC-partly cloudy, R-rain, S-sun, Sh-showers, Sn-snow, SS-snow showers, T-thunderstorms, Tr-trace, W-windy. U.S. CITIES Yesterday Today Tomorrow Albuquerque 88/ 63 0 88/ 66 PC 88/ 65 PC Atlanta 88/ 73 0 92/ 75 T 95/ 76 T Boise 87/ 62 0 83/ 56 S 85/ 59 S Boston 68/ 59 0 78/ 66 S 80/ 70 Sh Buffalo 76/ 52 0 79/ 71 T 82/ 70 C Charlotte 90/ 68 0 92/ 73 PC 95/ 72 T Chicago 74/ 58 0.41 88/ 74 T 92/ 73 S Cleveland 77/ 52 0 85/ 73 T 87/ 75 PC Dallas-Ft. Worth 96/ 75 0 98/ 79 S 98/ 80 S Denver 89/ 56 0.07 93/ 57 PC 88/ 59 PC Detroit 75/ 54 0 86/ 72 T 91/ 75 PC Houston 95/ 76 0 95/ 78 S 96/ 78 S Kansas City 92/ 77 0 93/ 76 PC 91/ 74 PC Los Angeles 79/ 65 0 81/ 63 PC 83/ 70 T Miami 87/ 78 0.18 90/ 77 T 90/ 78 PC Mpls.-St. Paul 72/ 68 0.10 88/ 71 S 89/ 63 T New York City 79/ 64 0 81/ 71 S 86/ 77 T Orlando 91/ 74 Tr 89/ 74 T 88/ 74 T Philadelphia 82/ 64 0 83/ 72 PC 92/ 76 T Phoenix 108/ 87 0 103/ 83 PC 90/ 78 T Salt Lake City 92/ 65 0 87/ 64 S 80/ 62 C San Francisco 75/ 60 0 75/ 60 PC 76/ 61 PC Seattle 78/ 59 0 81/ 61 S 91/ 63 S St. Louis 92/ 75 0 95/ 79 PC 97/ 78 S Washington 86/ 66 0 87/ 76 PC 93/ 79 T FOREIGN CITIES Yesterday Today Tomorrow Acapulco 89/ 77 0.05 91/ 76 PC 91/ 77 T Athens 91/ 75 0 90/ 74 S 90/ 73 S Beijing 84/ 75 0.02 86/ 70 T 88/ 70 C Berlin 79/ 61 0 89/ 65 T 81/ 60 PC Buenos Aires 59/ 43 0 61/ 52 S 65/ 48 S Cairo 95/ 75 0 97/ 75 S 99/ 75 S Cape Town 59/ 45 0 55/ 49 R 59/ 49 C Dublin 59/ 43 0.36 63/ 49 Sh 63/ 50 Sh Geneva 99/ 64 0 98/ 68 PC 91/ 65 T Hong Kong 93/ 82 0.12 92/ 81 T 91/ 82 T Kingston 88/ 81 0.04 90/ 79 W 90/ 77 PC Lima 68/ 63 0 72/ 64 C 72/ 63 C London 75/ 59 0 74/ 55 PC 72/ 54 PC Madrid 102/ 70 0 99/ 67 PC 95/ 70 PC Mexico City 75/ 56 0.09 73/ 56 T 74/ 56 T Montreal 73/ 54 0 80/ 67 PC 81/ 65 R Moscow 72/ 50 0 69/ 52 PC 70/ 50 R Nassau 90/ 77 0.04 91/ 78 PC 92/ 77 S Paris 97/ 66 0 86/ 62 S 79/ 59 S Prague 84/ 57 0 91/ 66 PC 92/ 63 T Rio de Janeiro 79/ 68 0 81/ 68 PC 80/ 67 PC Rome 90/ 72 0 92/ 73 S 93/ 72 S Santiago 61/ 41 0 61/ 41 S 59/ 39 S Stockholm 66/ 57 0.13 68/ 55 PC 69/ 54 PC Sydney 55/ 48 0.38 56/ 46 R 59/ 46 Sh Tokyo 86/ 77 0.66 84/ 77 R 85/ 77 R Toronto 72/ 55 0 75/ 68 T 86/ 69 C Vancouver 70/ 61 0 74/ 58 S 80/ 61 S Warsaw 79/ 52 0 81/ 59 PC 89/ 61 T N.L. SCORES A.L. SCORES THURSDAY No games scheduled THURSDAY No games scheduled SPORTS FRIDAY, JULY 17, 2015 9

10. Men With Different Styles Bring the Old Course to Its Knees St. Andrews, Scotland How do you solve a problem like the Old Course? Dustin Johnson spanked the course into submission Thursday by nearly driving the green on several holes on his way to a seven-under-par 65 and the first-round lead in the British Open. Playing in the same group, Jor- dan Spieth took a more measured approach, reasoning with the course and resorting to reverse psychology on the high-maintenance Road Hole on his way to a 67 in his competitive debut on the 7,297-yard layout. The two styles are competing for one claret jug. Johnson had the upper hand early, but the last time he held the first-day honors, at the United States Open last month, Spieth was the last man standing. For the crowds who revel in having the British Open at the Old Course, treating the event as if it were golf’s version of San Diego’s Comic-Con International (complete with kilts and other costumes), the juxtaposition of Johnson’s power off the tee and Spieth’s precision into the greens was worth venturing out into a cold summer’s day. Johnson was on the green in two shots on both par 5s and nearly drove the green on three of the par 4s (Nos. 9, 10 and 12), taking full advantage of his length off the tee to separate himself from the field. Johnson’s drives on the two par 5s averaged 323 yards to Spieth’s 286. “I expect when he stands on the tee, it’s going to be up there miles and down the fairway,” Spieth said. “I also expect that I can birdie each hole when I stand on the tee. It just happens to be a little different route.” The par-4 fourth proved Spi- eth’s point. Johnson walked up to Spieth’s ball on the fairway and kept going. After 65 additional strides, he finally reached his drive. Despite how much closer Johnson was to the green for his approach, both he and Spieth ended up with pars. “It’s hard to argue with some- body who’s splitting bunkers at about 380 yards and just two-putting for birdie on five or six of the holes,” Spieth said. “I don’t have that in the bag, so I’ve got to make up for it with ball-striking.” Johnson and Spieth have got- ten to the same page on the leaderboard from different places, not only in distance but also in disposition. Johnson is the kind of player who flies by the seat of his pants. Spieth is the one taking great pains to smooth out the wrinkles in his trousers. Spieth was asked if he could beat Johnson, which was akin to asking a boa constrictor if it could swallow a deer. “Yeah, I think I can,” he said. “If I didn’t, I would go ahead and walk off and take a flight home tomorrow.” On Golf Karen Crouse GERRY PENNY/EUROPEAN PRESSPHOTO AGENCY Jordan Spieth, left, and Dustin Johnson on the British Open’s 16th green. Spieth’s short game and Johnson’s power helped them climb the leaderboard. SPORTS JOURNAL FRIDAY, JULY 17, 2015 10

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