P2JW224000-4-A00100-1--------NS
Clinton’s Self-Made
October Surprise
OPINION | A10
THE MIDDLE SEAT | D1
****
DJIA 18495.66 g 37.39 0.2%
NASDAQ 5204.58 g 0.4%
THURSDAY, AUGUST 11, 2016 ~ VOL. CCLXVIII NO. 35
STOXX 600 343.98 g 0.2%
10-YR. TREAS. À 11/32 , yield 1.509%
WSJ.com
OIL $41.71 g $1.06
GOLD $1,344.30 À $5.30
Grim Vigil After Baghdad Hospital Fire Kills 12 Newborn Babies
What’s
News
Business & Finance
T
he housing recovery has
lifted the overall market
but left behind a broad swath
of the middle class, threatening to create a generation
of permanent renters. A1
 Saudi Arabia’s oil output
reached an all-time high in
July, as part of a broader
ramp-up by OPEC. A1
 Valeant faces a criminal
probe into whether it defrauded insurers by hiding
ties to a pharmacy that
boosted sales of its drugs. B1
 Michael Kors and Ralph
Lauren were hurt in the latest
quarter by heavy discounting and less store traffic. B1
Global glut continues
as efforts to curb oil
production and boost
prices fail to take hold
 Fifth Third fired its general counsel last month over
her romantic relationship
with Fannie Mae’s CEO. C1
 A court reversed federal
rules designed to bolster internet service provided by
local governments. B3
BY BILL SPINDLE
AND SUMMER SAID
The fight for market share
among the world’s biggest oil
producers is still raging, pushing output from OPEC members
 An ex-law firm partner
and his investment adviser
face insider-trading charges
over a Pfizer acquisition. C1
World-Wide
close to an all-time high in July
and suggesting the group isn’t
yet seriously considering a
meaningful curtailing of production.
Output by Saudi Arabia,
OPEC’s key member, reached a
high last month, as part of a
broader ramp-up by the Organization of the Petroleum Exporting Countries, according to
OPEC data published Wednesday. Led by the kingdom and
Iraq, OPEC members’ July
A Golden Moment in U.S. Cycling
 Trump and Clinton targeted each other’s political
vulnerabilities, with the GOP
nominee questioning his
Democratic rival’s ethics and
honesty as she stoked doubts
about his unpredictability. A4
 Shots were fired in Ferguson, Mo., during a protest
on the second anniversary
of Michael Brown’s death. A3
 Libyan militias backed by
U.S. airstrikes captured Islamic State’s headquarters
in its stronghold of Sirte. A6
 A fire tore through the
maternity ward of one of
Baghdad’s largest hospitals, killing 12 babies. A6
 Turkey blamed Kurdish
rebels for coordinated attacks in two cities that killed
at least eight people. A6
 Fresh revelations in a
bridge-lane scandal signal
the difficulties faced by New
Jersey’s Christie in moving
on from the case. A5, A13
 Brazil’s Senate voted to
move the impeachment trial
against President Rousseff
to its final phase. A7
CONTENTS
Arts in Review..... D4
Business News. B2-3,5-6
Crossword................. B5
Election 2016.... A4-5
Global Finance........ C3
Heard on Street.... C8
In the Markets....... C4
Opinion................. A9-11
Rio 2016............... D5-6
Style & Travel.... D2-3
U.S. News............. A2-3
Weather..................... B5
World News. A6-7,12
>
s Copyright 2016 Dow Jones &
Company. All Rights Reserved
Home
Buyer
Shortage
Threatens
Recovery
 Energy pulls down stocks as
oil drops........................................ C4
 Priciest market in the U.S.?
San Jose....................................... A2
Saudi Output Hits Record
 Delta’s CEO took full responsibility for a computer
failure at the airline but said
it was a one-time event. B3
 Baltimore agreed to major police changes after the
Justice Department found
the force engages in unconstitutional practices. A3
YEN 101.29
ventories of crude oil and petroleum products rose last
week to a record.
Oil markets have gyrated in
recent days. OPEC, which controls more than a third of the
world’s oil supply, on Monday
announced it would hold informal talks in Algeria next
month, after which the market
Please see OPEC page A5
TRAGIC BLAZE: Families of infants who died in a fire at a hospital in Baghdad on Wednesday gather outside the maternity ward. A6
 The NFL, Disney and NBCUniversal are among TV-content owners resisting video
deals with Facebook. B1
 Putin blamed Ukraine
for the deaths of two Russian service members in
Crimea and suggested
Russia would respond. A7
EURO $1.1178
The housing recovery that
began in 2012 has lifted the
overall market but left behind a
broad swath of the middle class,
threatening to create a generation of permanent renters and
sowing economic anxiety and
frustration for millions of Americans.
Home prices rose in 83% of
the nation’s 178 major real-estate markets in the second quarter, according to figures released Wednesday by the
National Association of Realtors.
Overall prices are now just 2%
below the peak reached in July
2006, according to S&P CoreLogic Case-Shiller Indices.
But most of the price gains,
economists said, stem from a
lack of fresh supply rather than
a surge of buyers. The pace of
new home construction remains
at levels typically associated
with recessions, while the
homeownership rate in the second quarter was at its lowest
point since the Census Bureau
began tracking quarterly data in
1965 and the share of first-time
home purchases remains mired
near three-decade lows.
The lopsided recovery has
shut out millions of aspiring
homeowners who have been
Please see HOMES page A2
KARIM KADIM/ASSOCIATED PRESS
 U.S. stocks fell, dragged
down by energy shares as
oil prices slumped. The Dow
shed 37.39 to 18495.66. C4
HHHH $3.00
BY LAURA KUSISTO
crude production rose by
46,000 barrels a day from June,
to 33.11 million barrels.
The increasing level of OPEC
production, combined with the
latest U.S. data, shows that the
global oil market remains oversupplied. U.S. crude-oil futures
for September delivery fell
$1.06, or 2.5%, at $41.71 a barrel on the New York Mercantile
Exchange on Wednesday after
the Energy Information Administration said that domestic in-
Source of U.S. Zika Outbreak
Is One of Several Mysteries
BY BETSY MCKAY
AND MELANIE EVANS
MATTHEW CHILDS/REUTERS
ISTOCK
COPYCATS
IN THE SKY
HARD WON: Kristin Armstrong celebrated with her son Wednesday
after winning her third straight Olympic time trial. Ms. Armstrong, who
turns 43 on Thursday, is the oldest women’s cycling gold medalist. D5
After Years of Growth,
Beijing Tries to Shrink
BEIJING—China’s capital,
suffering from growing pains
following years of breakneck
expansion, is embarking on a
radical plan to rein in its population by kicking people out
of the city’s center.
Beijing’s government is
shutting down businesses and
moving others out of the central part of the metropolis in
the hope that people will follow. Entire markets deemed
unfit for the capital have been
closed or moved and services
shut down.
The heavy-handed approach
is a response to years of rapid
urban growth that has
brought worsening congestion,
pollution and water-supply issues.
Despite the city’s efforts to
keep a lid on population
growth, greater Beijing now
has almost 22 million people,
an increase of some 6 million
in a decade, official data
show. The central area, comprising six districts, grew at
an average of 414,200 a year
over the same period to
about 13 million.
Municipal leaders’ latest
five-year plan aims to keep
greater Beijing’s population
under 23 million and to shrink
the urban center by 15% by
2020, effectively pushing out
some 2 million people—equivalent to excising more than
the population of Manhattan
from New York City and dispersing those people elsewhere.
The strategy is to move
low-end businesses, such as
wholesale markets, to Hebei—
the province surrounding Beijing where growth has
flagged—and coax people to
follow. That dovetails with
President Xi Jinping’s push to
create a metropolitan area like
New York’s or London’s.
Since starting the effort
last year, the city government
has closed more than 150 markets, meaning thousands of
shops. It aims to close all
Please see BEIJING page A8
 Economic data highlight
China’s regional divides..... A12
MIAMI—The woman who set
off the Zika scare in Florida
doesn’t have a clear connection
to the neighborhood where the
outbreak is believed to be concentrated. She hasn’t traveled to
a country where Zika is circulating and she hasn’t had sex with
anyone likely to be infected.
These confounding facts are
also laced with potential danger.
The woman in her early 20s is
pregnant.
The woman is one of 22
cases health officials are grap-
There Are
Few Mormons
In Greenland
i
i
i
Hence this annual
LDS singles party
in Scandinavia
pling with in their efforts to understand and contain the first
known mosquito-borne Zika
outbreak in the continental U.S.,
according to an internal report
on the investigation for health
officials reviewed by The Wall
Street Journal. She is also the
first known pregnant woman
likely infected in the U.S. by a
mosquito bite, rather than from
travel or sexual intercourse.
Referred to as Miami-Dade #1
for the county she lives in, the
woman isn’t known to be connected to the “warning zone” of
about a square mile in the
neighborhood of Wynwood, just
north of downtown Miami, that
is now the focus of Florida and
federal health investigators.
Two other cases in the report, a man from adjacent Broward County and a man from
Miami-Dade, also don’t have a
clear connection to the area,
showing that significant questions remain about how and
where patients are being infected with Zika, and how widespread the transmission may be.
Investigators were led to
Wynwood, a neighborhood full
of hip restaurants and art galleries but also vacant storePlease see ZIKA page A8
Oracle #1
Cloud ERP
BY ERIN CLARE BROWN
HANDEN, Sweden—Hundreds
of young unmarried Mormons
descended on a high-school
gymnasium here on Stockholm's
outskirts late last month for a
raucous dance party that would
continue until sunrise.
No alcohol was served, but
one would hardly have known.
By midnight, the dancing
reached a fever pitch. A pack of
rowdy Britons in T-shirts emblazoned with “I [heart] Swedish
Girls” roamed the floor. Outside,
a group attempted something
akin to a keg stand with a water
cooler.
There were rules, though,
and swift justice for violators.
Please see SINGLES page A8
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ERP Customers
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Aneel Bhusri, Workday CEO
Midsize and large scale Enterprise Fusion ERP Cloud customers.
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