ECCB Times Digest

1. NY
United States Virgin Islands
St. Thomas
United States Virgin Islands
St. Thomas
G.O.P. Yields as Flag Issue Roils House HACKINGEXPOSED
Market Plunge in China Dents Party’s Stature
WASHINGTON — The an-
guished national debate over the
future of the Confederate flag
exploded on the House floor on
Thursday as Democrats, led by
black members from the South,
beat back a push by Republicans
to allow Confederate symbols at
national cemeteries.
Cominglessthan24hoursafter
the South Carolina House voted
to remove the Confederate bat-
tle flag from the capitol grounds
in Columbia, the spectacle of the
United States House pressing for
itscontinuingdisplaywasanem-
barrassment Republican leaders
could not accept, and they with-
drew the bill from the floor.
“There’s not any room on fed-
eral property for the display of
the Confederate battle flag,” said
Rep. John Lewis, D-Ga., a leader
of the civil rights movement who
in1965wasnearlybeatentodeath
in Selma, Ala., by police officers,
some of whom had Confederate
flags painted on their helmets.
“It represents the dark past as a
symbolofseparation,asymbolof
division, a symbol of hate.”
The Republican amendment
would have permitted displays
of the flag in federal cemeteries
on one day a year, Confederate
memorial day, which is celebrat-
ed in nine states. It would also
have allowed the sale of the flag
onsouveniritemsthatconformto
NationalParkServiceguidelines.
But the debate it set off pro-
pelled the emotions and conflicts
thathaveroiledthecountrysince
lastmonth’smurderofnineblack
parishioners in Charleston, S.C.,
into the country’s most repre-
sentative legislative body. And
it came on the same day as Gov.
Nikki R. Haley signed the law
removing the flag from her State
House’s grounds.
“When you’re putting a flag on
someone’sgrave,tomeit’salittle
different from being racist. It’s
more of a memorial,” said Rep.
Lynn Westmoreland, R-Ga. “You
can’t make an excuse for things
that happened, but the majority
of people that actually died in the
CivilWarontheConfederateside
did not own slaves. These were
peoplethatwerefightingfortheir
states.Idon’tthinktheyhadeven
any thoughts about slavery.”
Asked if he could see the per-
spectiveofLewis,Westmoreland
responded, “I guess the question
is, ‘Does he understand where
I’m coming from?’ ”
The fight began Tuesday night
when Democrats offered amend-
ments to a spending bill to block
the laying of Confederate flags
at federal cemeteries and to ban
flag images from gift shops and
concession stands. With oppo-
nents caught unaware, the full
House accepted the legislation
withoutdebateandwithoutaroll-
call vote.
On Wednesday night, after
Southern Republicans marched
into House Speaker John A.
Boehner’sofficeanddemandeda
reversal,Rep.KenCalvert,R-Ca-
lif., offered an amendment to un-
do the Democrats’ legislation.
That set off a series of fiery
speeches by Democrats that put
Republicans under a spotlight on
the issue of race.
On Thursday, no Republicans
came to the floor to defend or op-
pose the amendment.
JENNIFER STEINHAUER
and JONATHAN WEISMAN
WASHINGTON — The Obama
administration on Thursday re-
vealed that 21.5 million people were
sweptupinacolossalbreachofgov-
ernment computer systems that
wasfarmoredamagingthaninitial-
ly thought, resulting in the theft of a
vast trove of personal information,
including Social Security numbers
and some fingerprints.
Every person who underwent a
government background check for
the last 15 years was likely affect-
ed by the intrusion, the Office of
Personnel Management said in an-
nouncingtheresultsofaninvestiga-
tionoftheincident,whoseexistence
was known — but not its toll.
The agency said hackers stole
“sensitive information” — includ-
ing addresses, and health and fi-
nancial history — from 19.7 million
people who had been subjected to a
government background check, as
well as 1.8 million others, including
their spouses and friends. The theft
was separate from, but related to,
a breach revealed last month that
compromised the personnel data of
4.2 million federal employees.
Both attacks are believed to have
originatedinChina,althoughsenior
administration officials on Thurs-
day declined to pinpoint a perpetra-
tor, except to say that they had indi-
cations that the same actor carried
out the two hacks.
The breaches constitute what
is apparently the largest cyberat-
tack into the systems of the United
States government, providing a
frightening glimpse of the vulnera-
bilities of federal agencies that han-
dlesensitiveinformation.Theyalso
seemed certain to intensify debate
over what the government must do
toaddressitssubstantialweakness-
esincybersecurity,whichhavelong
been the subject of dire warnings.
“This incident that we are talking
about today is unfortunately not
without precedent,” said Michael
Daniel, the White House cybersecu-
rity coordinator. “We have to raise
ourlevelofcybersecurityinboththe
privatesectorandthepublicsector.”
JULIE HIRSCHFELD DAVIS
BEIJING — Even if China’s
stock markets end their dizzying
falls — and analysts say there is
stillroomtotumbleevenafterare-
spite on Thursday — the sense of
supremecontrolthatoncecloaked
the Communist Party leadership
maytakelongertorecover.
Across China, many of the mil-
lions of middle-class investors
have been asking why the party
and the government talked up
the market in the months leading
up to the recent plunge, and then
bumbled in their efforts to pre-
vent the rout.
“It’s not only about the falling
stock,” said Kerry Brown, direc-
tor of the China Studies Center at
the University of Sydney in Aus-
tralia.“It’saboutthefallingpolit-
ical credibility.”
On that score, perhaps no one
has taken a bigger hit than Pres-
ident Xi Jinping, who since be-
coming leader of the Communist
Partyinlate2012hasmeticulous-
ly crafted an image of omnipo-
tence.
He has been credited with act-
ing decisively on several issues
that include corruption, cyber-
security and Chinese territorial
claims in the South China Sea.
When earthquakes or other nat-
ural calamities hit China, he and
the prime minister, Li Keqiang,
madereassuringannouncements
in the state news media or trav-
eled to disaster sites to demon-
stratetheircalmcommand.
But since the market began to
slide, with the main Shanghai in-
dex losing 32 percent of its value
over three and a half weeks, the
two leaders have been silent on
the subject.
Even if regulators reverse the
fall, an effort that could in turn
distort market forces, the gov-
ernment’s muddled response
has raised questions about Xi’s
authority and judgment.
“A middle class that believed
deeply that the motherland
would become strong has been
eviscerated,” said an essay cir-
culating on Chinese websites
this week that was credited to an
investor who had lost most of his
savings. “This was a stock wipe-
out that thoroughly damaged
middle-class assets from a de-
cadeofstriving.Forus,theChina
Dream really is just a dream.”
Even bystanders who stayed
out of the market are asking, if a
meremarketcorrectioncouldrat-
tle the government, what might
happen during a serious down-
turn? At stake is not only the sta-
bilityofChina’seconomy,butalso
faithinXiandhiscolleagues.
“This undercuts the confi-
dence of the rising Chinese bour-
geoisie,” Brown said. “For this
leadership, they’ve got to keep
the emerging aspiring urban
Chinese middle class on side.”
EDWARD WONG
and CHRIS BUCKLEY
21MILLIONINU.S.,
GOVERNMENTSAYS
F R O M T H E PAG E S O F
FRIDAY, JULY 10, 2015 © 2015 The New York TimesFROM THE PAGES OF

2. Pope Apologizes in Bolivia
Pope Francis offered a direct apology on
Thursday for the complicity of the Roman
Catholic Church in the oppression of Latin
America during the colonial era, even as he
called for a global social movement to shat-
ter a “new colonialism” that has fostered
inequality, materialism and the exploitation
of the poor. Speaking in Santa Cruz, Bolivia,
to a hall filled with social activists, farmers,
garbage workers and indigenous people,
Francis offered the most biting address of his
South American tour. He repeated familiar
themes in sharply critiquing the global eco-
nomic order and warning of environmental
catastrophe — but also added a twist with his
apology. “Some may rightly say, ‘When the
pope speaks of colonialism, he overlooks cer-
tain actions of the church,’ ” Francis said. “I
say this to you with regret: Many grave sins
were committed against the native people of
America in the name of God.” (NYT)
Bees Avoid Southern Treks
Climatechangehasnarrowedtherange
wherebumblebeesarefoundinNorthAmeri-
caandEurope,accordingtoastudypublished
Thursday.Thepaper,publishedinthejournal
Science,suggeststhatwarmingtemperatures
havecausedbumblebeepopulationstoretreat
fromthesouthernlimitsoftheirtravelsbyas
muchas190milessincethe1970s.“Bumblebee
speciesacrossEuropeandNorthAmericaare
decliningatcontinentalscales,”saidJeremy
T.Kerr,aconservationbiologistattheUniver-
sityofOttawainCanadawhowastheleadau-
thorofthereport.“Andourdatasuggestthat
climatechangeplaysaleading,orperhapsthe
leading,roleinthistrend.” (NYT)
Prince Saud al-Faisal Dies
PrinceSaudal-Faisal,theurbanediplomat
whousedquietdiplomacytomaintainSaudi
Arabia’sregionalinfluenceandalliancewith
theUnitedStatesinhisfourdecadesasforeign
minister,diedonThursday,accordingtoSaudi
officialsandstatenewsmedia.Hewas75.Be-
forehisretirementinApril,hewastheworld’s
longest-servingforeignministerandhelped
shapethekingdom’sresponsestomonumen-
talchangesintheMiddleEast. (NYT)
In Brief
VIENNA — Secretary of State
John Kerry said on Thursday that
the United States would continue
to negotiate in pursuit of a nucle-
ar agreement with Iran that could
endure “for decades,” but cau-
tioned that the talks would not be
open-ended.
“Wewillnotrush,andwewillnot
be rushed,” Kerry said, appearing
before reporters here, where the
negotiations were underway.
“If the tough decisions don’t get
made, we are absolutely prepared
tocallanendtothisprocess.”
Just hours after Kerry spoke,
however, a senior Iranian official
accused the United States of re-
versingpositionsintheprevious24
hours and upending agreements
thathadalreadybeenreached.
“Therehavebeenalotofchang-
es of positions,” the official told
reporters, declining to allow his
nametobeused.
Theclashingassessmentsmade
clear that the talks had not only
failed to meet the Thursday dead-
lineforsubmissiontoCongressfor
a30-dayreview,butwerealsobur-
dened by thorny issues and even
someacrimony.
Completing an accord later in
the summer doubles the review
period, which could lead to a
more prolonged debate that the
White House had hoped to avoid.
Kerry referred to a discussion
on Wednesday with President
Obama. In it, it was decided that
the strength of a prospective deal,
which is meant to guarantee that
Iran’snuclearactivitiesarepeace-
ful, was more important than ad-
heringtoarigidtimetable. (NYT)
ATHENS — Only a day after
grim predictions of financial and
socialcollapseinGreece,ascram-
ble appeared underway to work
out the details of a new bailout
packagetobringthecountryback
from the brink.
As details of the new offer
emerged, it appeared that Prime
MinisterAlexisTsipraswascapit-
ulating to demands that he urged
his countrymen to reject in the
referendum last Sunday, like tax
increases and various measures
to cut the costs of pensions.
But Tsipras seemed to have
gained ground on debt relief, his
one bedrock demand. Germa-
ny’s finance minister, Wolfgang
Schäuble, finally gave a little on
that Thursday, admitting that
“debtsustainabilityisnotfeasible
without a haircut,” or writedown
of debt, even if he then appeared
to backtrack.
Donald Tusk, a former prime
minister of Poland and the pres-
ident of the European Council,
said on Twitter that any “realistic
proposal from Athens needs to
be matched by realistic proposal
from creditors on debt sustain-
ability to create win-win situa-
tion.”
TsipraswentbeforeParliament
to seek a commitment for reform
measures in the new plan that,
presumably, went beyond what
had been offered previously.
Much may hinge on his ability to
persuade the more radical ele-
ments of his Syriza party to sup-
port a package that in essence
was anathema to many of them
last week.
TherepresentativesofGreece’s
maincreditors—theeurozonena-
tions, the European Central Bank
and the International Monetary
Fund — are scheduled to review
the new proposal in Brussels on
Friday. Final approval will also
require an assessment by the 19
finance ministers of eurozone
countries. That meeting, of the
so-called Eurogroup, has been
scheduledforSaturdayafternoon
in Brussels.
One analyst said he thought the
offer would be well received by
creditors.
“The package takes a very sub-
stantial step in the right direction
and it should move us closer to a
deal,” said Mujtaba Rahman, the
Europe director for the Eurasia
Group, a political risk consultan-
cy, shortly after reading one ver-
sion of the Greek proposal trans-
lated into English.
“The question now is wheth-
er the Greeks are actually going
to implement some of the mea-
sures,” he added.
Prospects for a deal improved
through the day as a procession
ofEuropeanleaderscamearound
to Tsipras’s conviction that pure
austerity measures were insuffi-
cient in their own right and had to
beaccompaniedbyacommitment
to reduce the burden of Greece’s
debt.
Greece received vital political
support and technical assistance
fromFrance,helpthathighlighted
the contrasting approaches being
taken by the two leading powers
in the European Union. Germany
has played the bad cop, stand-
ing firm against concessions to
Greece. France has thrown itself
into the task of finding a deal.
The French assistance ap-
peared to be an effort to make
sure the Greek proposal would
smooththewayforacompromise
on a new bailout package to keep
Greece afloat financially and in-
side the euro. LIZ ALDERMAN
and JAMES KANTER
Kerry: Iran Talks
Not Open-Ended
Greek Plan Accepts Austerity to Get Debt Relief
YANNIS KOLESIDIS/EUROPEAN PRESSPHOTO AGENCY
Retirees on Thursday at a National Bank of Greece branch in
Athens. The Greek proposal appears to include pension cuts.
INTERNATIONAL FRIDAY, JULY 10, 2015 2

3. KENNEBUNKPORT, Me. —
JebBushandhisalliesannounced
on Thursday that they had
amassed more than $114 million
in campaign cash over the last six
months, dwarfing the combined
fund-raising of his Republican ri-
vals for the party’s presidential
nomination.
The announcements estab-
lished Bush as his party’s fi-
nancial powerhouse. They also
underscored how the Supreme
Court’s five-year-old Citizens
United decision continues to re-
make the way presidential cam-
paigns are waged. Almost all of
themoneywasraisedbeforeBush
formally declared his candidacy
last month, collected by a “super
PAC”thatBush’saideshelpedset
up.
Bush, a onetime Florida gover-
nor, personally raised money for
the super PAC — often in incre-
ments of $1 million per donor — at
dozens of events during the win-
ter and spring, operating under
the assumption that he was free
to do so because he was not yet a
declared presidential candidate.
Super PACs can raise unlimited
donations from corporations and
individuals alike, though candi-
dates are not allowed to coordi-
nate with them.
Bush’s campaign raised about
$11.4 million, with individual con-
tributionscappedbylawat$2,700.
Even insurgent candidates can
now muster tens of millions of
dollars from wealthy donors. Sen.
Ted Cruz of Texas, a conservative
firebrand loathed by members of
the party establishment, raised
about $14.3 million for his cam-
paign through the end of June,
much of it from a loyal following
of small donors eager to prevent
Bush’s anointment. But Cruz is
also backed by super PACs that
raised another $38 million from
just a handful of wealthy con-
servatives. This has, effectively
made him the second-strongest
fund-raiser in the Republican
field. NICK CONFESSORE
WASHINGTON — The Food
and Drug Administration has de-
layed by a year the deadline for
the nation’s chain restaurants,
pizza parlors and movie theaters
to post calorie counts on their
menus, in what some consumer
advocates said was a setback for
public health but others contend-
ed would simply give companies
enough time to comply.
Pressure had been growing
to delay the rule, which was pro-
posed in November and would
havetakeneffectattheendofthis
year. Food companies — in par-
ticular, the pizza industry — had
campaigned against it, saying it
was onerous and in many cases
servednopurpose,asmostAmer-
icans order pies over the phone
and not in a restaurant, where
they would see a menu. A mea-
sure in the House sought to delay
compliance by a year.
On Thursday, the agency an-
nounced that it had done just that
to give companies more time to
comply. Critics said the delay was
not a fatal blow, but was worri-
some, as it would give the restau-
rant and grocery industries more
timetolobbyagainstthemeasure.
But many who supported the
rule said that the agency had yet
to issue a crucial guidance docu-
mentthatwouldhelptheindustry
understand how to carry it out.
SABRINA TAVERNISE
RepublicanPartyleaders
agonizeovertheprospectthat
DonaldTrumpwillmounta
third-partycandidacythatcould
underminetheirnominee.They
fearinsultingthe
whiteworking-class
voterswhoadmire
him.Theyareloathtotanglewith
athreat-flingingfirebrandfor
whomtherearenorulesofen-
gagement.
SincethestartofTrump’sbom-
basticpresidentialcampaign,a
vexingquestionhashoveredover
hiscandidacy:Whyhavesomany
partyleaders—privatelyap-
palledbyTrump’sremarksabout
immigrantsfromMexico—not
renouncedhim?
Interviewsshowthatthemath-
ematicaldelicacyofaRepublican
victoryin2016—anditsdepen-
denceonaging,anxiouswhite
voters—makeitexceedinglyper-
ilousfortheRepublicanPartyto
treatTrumpasthepariahmanyof
itsleaderswishhewouldbecome.
Evenasacascadeofcorpo-
rationsandbusinesspartners
—fromNBCandMacy’stothe
chefsattwoplannedrestaurants
—rushtosevertheirtieswith
Trump,Republicanleadersseem
tornandparalyzedbyindecision.
Afewweeksago,thosedivi-
sionswereonvividdisplayata
regulargatheringoftopRepub-
licanelectedofficials,strategists
andthechairmanoftheRepub-
licanNationalCommittee.Over
dinnerattheHay-AdamsHotel
oppositetheWhiteHouse,some
arguedforaswiftresponse,fear-
ingTrumpwouldmarcoming
Republicanpresidentialdebates
withhisneedlessprovocations.
Otherscounseledahands-off
approach,fearingattemptstorein
himinwouldonlyturnhimintoa
politicalmartyrand,worse,tempt
himtowardthatthird-partyrun.
Noconsensuswasreached,and
thecommitteechairman,Reince
Priebus,leftwithnocleardirec-
tive,accordingtopartyofficials
withknowledgeofthemeeting.
Dispiritedpartyelders,worried
thatRepublicansarehanding
Democraticrivalsapowerful
campaignweaponbyletting
Trump’svoicebedepictedas
representativeoftheparty,are
soundingthealarmwithurgency.
“TheRepublicanPartyismak-
ingamistakeiftheythinkthey
canjustremainquietwhenhe
speaksup,ortodemurortojust
lightlydistancethemselves,”said
PeterWehner,aformertopofficial
intheadministrationsofPresi-
dentsRonaldReaganandGeorge
W.Bush.“He’sdoingtremendous
damage.”
SomeLatinoRepublicanoffi-
cialssaidtheyweredumbfounded
bythereluctanceofotherRe-
publicanstodeliverfull-throated
rebukesofTrump.
“TheRepublicanPartyis
goingtohavetobemuchmore
aggressiveindealingwithhim,”
saidHectorV.Barreto,whohas
advisedeveryRepublicanpresi-
dentialcampaignsince2000.“And
Iwouldexpectmypartytodothat,
tocallhimout.” (NYT)
F.D.A. Extends Deadline for Calorie Labeling on Menus
Bush Outstrips Rivals as ‘Super PACs’ Swell Coffers
G.O.P. Frets Over What to Do With Trump
July 4 Terror Plots
Foiled, F.B.I. Says
The F.B.I. director, James B.
Comey, said on Thursday that
counterterrorism authorities had
thwarted multiple attacks being
plotted for July 4 by the Islamic
State and its sympathizers in
the United States. Comey would
not say what the plots entailed
or how many people had been
arrested, but he said the plotters
were among more than 10 people
with ties to the Islamic State, also
known as ISIS or ISIL, who had
been arrested in the past month.
Those arrested “are products
of this ISIL online recruiting,
motivating, directing effort” that
often begins on Twitter, he said,
adding that some of the plotters
had switched to encrypted com-
munication that made them more
difficult to track. (NYT)
Florida Map Torn Up
TheFloridaSupremeCourton
Thursdayrejectedpoliticalger-
rymanderingbystatelegislators
andorderedeightcongressional
districtsredrawnwithin100days,
adecisionlikelytocomplicate
preparationsfornextyear’selec-
tions.Inthe5-to-2decision,thejus-
ticesconcurredwithatrialcourt’s
findingthata2012redistricting
mapdrawnbytheRepublican-led
Legislaturehadbeentaintedby
“unconstitutionalintenttofavor
theRepublicanPartyandincum-
bentlawmakers,”andthatRepub-
lican“operatives”andpolitical
consultants“didinfactconspire
tomanipulateandinfluencethe
redistrictingprocess.” (NYT)
His Gun Led to March
JimmieLeeJackson,a26-year-
oldlaborerandchurchdeacon,
wasshottodeathinMack’sCafe
inMarion,Ala.,onFeb.18,1965,
andthekillingprovedhistoric:It
provokedthefatefulvoting-rights
marchfromSelmatoMontgom-
ery,turningthetideforthecivil
rightsmovement.Butitwasnot
untilMarch6,2005,thatawhite
lawenforcementofficer,Bonard
Fowler,bythenaformerstate
trooper,acknowledgedpublicly
thathehadfiredtheshotthat
felledJackson.Fowler,whosaid
hefiredinself-defense,served
fivemonthsinjail.Hediedat81on
Sunday,butthefamilywouldre-
leasenootherinformation.(NYT)
In Brief
News
Analysis
NATIONAL FRIDAY, JULY 10, 2015 3

4. Australia (Dollar) .7442 1.3437
Bahrain (Dinar) 2.6527 .3770
Brazil (Real) .3107 3.2188
Britain (Pound) 1.5377 .6503
Canada (Dollar) .7872 1.2703
China (Yuan) .1611 6.2078
Denmark (Krone) .1479 6.7616
Dom. Rep. (Peso) .0222 44.9600
Egypt (Pound) .1277 7.8300
Europe (Euro) 1.1023 .9072
Hong Kong (Dollar) .1290 7.7518
Japan (Yen) .0082 121.33
Mexico (Peso) .0632 15.8105
Norway (Krone) .1229 8.1380
Singapore (Dollar) .7410 1.3496
So. Africa (Rand) .0800 12.5070
So. Korea (Won) .0009 1131.2
Sweden (Krona) .1179 8.4853
Switzerland (Franc) 1.0551 .9478
The consumer products giant
Procter Gamble has agreed
to sell its portfolio of 43 beauty
brands to the beauty products
maker Coty for $12.5 billion, the
companies announced on Thurs-
day.
Included in the deal are profes-
sional salon and retail hair prod-
ucts, like Nice ’n Easy and VS
Salonist,aswellascosmeticsand
fine fragrances from Gucci and
Dolce Gabbana.
P.G. said in a statement that
it hoped to structure the sale as a
reverse Morris trust — typically
a tax-efficient spinoff that would
create a separate entity that
would then merge with Coty.
The deal is part of P.G.’s
efforts to shed more than 100
brandsandfocusonabout10core
product lines. In November, the
company agreed to sell the bat-
terycompanyDuracelltoWarren
E. Buffett’s Berkshire Hathaway
in a $4.7 billion stock deal.
“These businesses and brands
have historically grown faster
and have been more profitable
than the balance,” P.G.’s chief
executive, A. G. Lafley, said
about the company’s core group
of brands.
The beauty portfolio is expect-
ed to be the largest chunk of as-
sets that P.G. will spin off.
“There’s probably more strag-
gler stuff that they’ll do, but it’s
quitesmallandnotalotofimpact
on the business,” said Ali Dibadj,
an analyst with Sanford C. Bern-
stein Company.
Coty’s stock closed down near-
ly 4.7 percent, or $1.48, to $30.04,
while shares of P.G. fell 0.4 per-
cent, or 33 cents, to $80.66.
RACHEL ABRAMS
Over the last few years, Face-
book has encroached on You-
Tube’s territory as a go-to outlet
for online video, showing popu-
lar content from publishers like
BuzzFeedandViceandagrowing
numberofuser-loadedclips.Now
Facebook is considering going
after another piece of YouTube’s
signatureturf:musicvideos.
In recent weeks, Facebook has
held preliminary discussions
withthemajorrecordcompanies,
seeking licensing deals to insert
music videos into Facebook us-
ers’ feeds, according to four peo-
plebriefedonthetalkswhospoke
on the condition of anonymity.
According to these people,
Facebook has proposed adding a
limited number of music videos,
which would be chosen by the la-
bels, to the feeds. Facebook has
told the labels that it wants to be-
gin adding the videos in coming
months and monitor their per-
formance through the end of the
year,thesepeoplesaid.Facebook
wouldshareadvertisingrevenue
withthelabelsaccordingtoterms
that have not yet been set.
Facebookdeclinedtocomment
on its video plans, which were
first reported in detail by Bill-
board. But the company denied
another report from Music Ally,
a news site, that said Facebook
was working on a streaming ser-
vice.“Wehavenoplanstogointo
music streaming,” a Facebook
spokesperson said.
Facebook’s talks with record
companies highlight the compa-
ny’s eagerness to expand its vid-
eo offerings and compete more
aggressively with YouTube, the
online video giant whose most
popular content is music videos.
GivenFacebook’svastsizeitisone
ofthefewonlineoutletsthatcould
seriously challenge YouTube’s
dominance,mediaexecutivessay.
Facebook has offered the mu-
sic labels better revenue-sharing
dealsthanYouTube,accordingto
one of the people briefed on the
talks. In another enticement to
thelabels,Facebookisalsoprom-
ising to police the platform more
thoroughlyforunauthorizedcon-
tent, this person added.
MIKE ISAAC
and BEN SISARIO
As the recall of defective air-
bags made by the Japanese sup-
plier Takata has mushroomed
and the death and injury toll has
mounted, the company has come
underincreasingpressuretotake
more responsibility for its faulty
products.
At a congressional hearing last
month,Sen.RichardBlumenthal,
D-Conn., urged a Takata exec-
utive to create a compensation
fund for victims similar to one
established by General Motors
after its ignition switch recall.
This week, in a letter from the
company, Blumenthal got his an-
swer: No.
“Takata believes that a nation-
al compensation fund is not cur-
rently required,” Kevin Kenne-
dy, an executive vice president,
wrote in the letter, which was
provided by Blumenthal’s office.
Kennedy said Takata would give
the matter further study and
would let the senator know if it
changed its mind.
Blumenthal said he was aston-
ished and disappointed by Taka-
ta’s response.
Takata’sairbagdefecthasbeen
blamedforeightdeathsandmore
than 100 injuries. But a compen-
sation fund could help uncover
more victims, Blumenthal said.
“Takata seems unwilling to ac-
knowledge its responsibility to
help the victims and loved ones
of victims that have suffered as
a result of its lapses and gaps in
performance,” Blumenthal said.
Kennedy said in his letter that
given the limited number of
claims filed and consolidated lit-
igation in Florida that is allowing
“efficientcoordination”ofclaims,
the company had decided that a
compensation fund would not be
necessary.
Jared Levy, a spokesman for
Takata, said on Thursday that
the company was “committed to
treating fairly anyone injured as
a result of an inflater rupture.”
“For that reason,” he said,
“Takata has settled a number of
injury claims and will continue to
do so based on the facts and cir-
cumstances of individual cases.”
Analysts have warned that
uncertainty remains over Taka-
ta’s finances. The supplier has
said that it is unable to estimate
the penalties from lawsuits filed
by victims, and has not put aside
fundstocoverthem,thoughithas
earmarked about $775 million to
deal with recalls.
Takata insists that the worst of
thedefect’sfinancialfalloutisbe-
hind it. (NYT)
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 indus-
try sectors and stock indexes:
nytimes.com/markets
➡ FOREIGN EXCHANGE
Fgn. currency Dollars in
in Dollars fgn.currency
THE MARKETS
DJIA
33.20
0.19%U
17,548.62
S P 500
4.63
0.23%U
2,051.31
NASDAQ
12.64
0.26%U
4,922.40
EUROPE
BRITAIN
FTSE 100
90.93
1.40%U
6,581.63
FRANCE
CAC 40
118.20
2.55%U
4,757.22
GERMANY
DAX
249.11
2.32%U
10,996.41
ASIA/PACIFIC
NIKKEI 225
JAPAN
117.86
0.60%U
19,855.50
SHANGHAI
CHINA
203.07
5.79%U
3,710.27
HANG SENG
HONG KONG
876.23
3.73%U
24,392.79
AMERICAS
TSX
CANADA
133.58
0.93%D
14,278.49
BOLSA
MEXICO
66.58
0.15%U
44,564.32
BOVESPA
BRAZIL
Market
holiday
COMMODITIES/BONDS
GOLD
4.30D
$1,159.00
CRUDE OIL
1.14U
$53.23
10-YR. TREAS.
YIELD
0.12U
2.32%
Procter Gamble Agrees to Sell 43 Beauty Brands to Coty
Facebook Is Said to Seek Deal to Add Music Videos
Takata Says No to Fund to Aid Airbag Victims
BUSINESS FRIDAY, JULY 10, 2015 4

5. MOST ACTIVE,
GAINERS AND LOSERS
%
Stock (Ticker) Close Chg chg
Bankof (BAC) 16.48 +0.23 +1.4 807574
Apple (AAPL) 120.07 ◊2.50 ◊2.0 779010
Intel (INTC) 28.93 ◊0.57 ◊1.9 471315
Micron (MU) 17.15 ◊0.48 ◊2.7 470564
Alcoa (AA) 10.59 +0.09 +0.9 402039
ATT (T) 34.39 ◊0.40 ◊1.1 330553
Micros (MSFT) 44.52 +0.28 +0.6 322879
Genera (GE) 26.02 +0.13 +0.5 298138
FordMo (F) 14.33 ◊0.04 ◊0.3 292683
RiteAi (RAD) 8.68 +0.41 +5.0 283945
10 MOST ACTIVE
% Volume
Stock (Ticker) Close Chg chg (100)
QLogic (QLGC) 11.00 ◊2.98 ◊21.3 88896
SciClo (SCLN) 9.54 ◊1.69 ◊15.0 17153
Anther (ANTH) 7.47 ◊0.87 ◊10.4 47522
Nephro (NRX) 5.39 ◊0.57 ◊9.6 1393
Chemou (CC) 11.81 ◊1.21 ◊9.3 104840
TrueCa (TRUE) 10.05 ◊0.97 ◊8.8 27289
SeaSpi (SPNE) 14.60 ◊1.40 ◊8.8 8109
Danaos (DAC) 5.40 ◊0.50 ◊8.5 1066
Phoeni (PNX) 14.40 ◊1.31 ◊8.3 1535
Brocad (BRCD) 10.99 ◊0.97 ◊8.1 127509
10 TOP LOSERS
% Volume
Stock (Ticker) Close Chg chg (100)
Neogen (NEO) 6.47 +1.30 +25.1 30636
Ultrag (RARE) 112.65 +13.63 +13.8 7545
CleanE (CLNE) 6.30 +0.74 +13.3 47561
BioTel (BEAT) 10.07 +1.13 +12.6 8277
Flotek (FTK) 13.07 +1.45 +12.5 16804
TriVas (TRIV) 6.53 +0.72 +12.4 835
Etsy (ETSY) 16.20 +1.65 +11.3 19364
KateSp (KATE) 22.25 +2.26 +11.3 54837
Novava (NVAX) 12.11 +1.20 +11.0 71259
Wingst (WING) 32.96 +3.18 +10.7 5952
10 TOP GAINERS
Source: Thomson Reuters
Stocks on the Move
Stocks that moved substantially or trad-
ed heavily on Thursday:
Alcoa Inc., up 9 cents to $10.59. The
aluminum producer reported a boost
in second-quarter profit and revenue,
though earnings fell short of forecasts.
Avon Products Inc., down 3 cents to
$5.97. The cosmetics company sold its
U.K.-based Liz Earle skin-care brand to
Walgreens for about $215.5 million.
L Brands Inc., down $2.07 to $83.92.
The parent company for Victoria’s Secret
reported a boost in June same-store
sales, but it fell short of expectations.
Petroleo Brasileiro S.A., up 24 cents to
$8.28. Brazil has identified as much as
$17 billion in suspicious activity that may
be linked to a scandal at the oil company.
Walgreens BootsAlliance Inc., up
$3.64 to $89.55. The drugstore chain
operator reported better-than-expected
fiscal third-quarter profit and named
Stefano Pessina as chief executive.
Yahoo Inc., up 38 cents to $37.61. The
technology company is moving into the
daily fantasy sports market by offering a
product that offers possible cash prizes.
QLogic Corp., down $2.98 to $11.00.
The network infrastructure products firm
lowered its first-quarter profit and reve-
nue outlook, citing weak demand. (AP)
Volume
(100)
A Fresh Marketing Tack for Lionsgate at Comic-Con
As Search Rivals Swarm, Google Strikes Back
SANDIEGO—Trotsomestars
onto a stage. Get a gushy blog-
ger or aspiring comedian to ask
canned questions. Dim the lights
and show footage.
Hollywood has long clung to
thatpromotionalformulaatCom-
ic-Con International, the fan con-
ventionthatdraws130,000people
here every July. But this year one
studio decided the tried-and-true
approach had grown dull: too ex-
pected,tooeasilydrownedoutby
the growing Comic-Con din.
So, to promote “The Hunger
Games: Mockingjay — Part 2,”
Lionsgate on Thursday pushed
past Comic-Con’s crowd-control
rules, parading 34 costumed ket-
tle drummers into the roughly
6,500-seathallthatformsthecon-
vention’s epicenter. And to make
its presentation even more lively,
thestudiotooktherarestepofse-
curingawell-knownprofessional
—ConanO’Brien—astheemcee.
Lionsgate also served up Jen-
nifer Lawrence and her “Hunger
Games” co-stars; introduced
fake “Mockingjay” footage (es-
sentially propaganda from the
point of view of the movie’s Dis-
trict13rebels);andthenpresent-
ed fans with an exclusive peek at
a real “Mockingjay” trailer, titled
“WeMarchTogether.”(Hencethe
drummers.)
“I feel like there doesn’t even
have to be a movie now,” O’Brien
joked, as the crowd thundered its
approval to the trailer.
Comic-Conhasbecomeincreas-
ingly congested as a marketing
platform as television companies
have swarmed the convention
alongside movie studios, video
game makers, toy companies and
comic book publishers. The goal
istocreatebuzzamonghard-core
fans that spreads throughout the
world on fan blogs and social me-
dianetworks.
Thisyear,becausethetimingof
theconventiondidnotfitwithfilm
release plans, Marvel Studios,
Paramount Pictures and Sony
Pictures Entertainment decided
to stay home.
Lionsgate’s presentation on
Thursday was not seamless. But
O’Brien stepped in whenever the
energystartedtodip,atonepoint
pokingfunatLionsgateand,later,
bluntly admitting that he found it
annoyingwhenacharacterinthe
last“HungerGames”moviewent
looking for her cat.
By the time Lawrence hit her
stride, the crowd was rapt. What
had she personally taken away
from any of her roles?
“Thedrinkingreallyrubbedoff
on me from ‘American Hustle,’ ”
she shot back.
“Pump, pump, pump brakes,”
she counseled herself.
BROOKS BARNES
and MICHAEL CIEPLY
Amit Singhal, Google’s search
chief, oversees the 200 or so fac-
tors that determine where web-
sitesrankinthecompany’ssearch
engine, which means he decides if
yourwebsitelivesordies.Hiscur-
rent challenge: figuring out how
tospreadthatsamefearandinflu-
encetomobilephones.
In a recent interview at Goo-
gle’s headquarters in Mountain
View, Calif., Singhal laid out a
widely held thesis for why smart-
phonesarefundamentallychang-
ing how people are consuming
information: Phones have small
screensthatareannoyingtotype
on, and people have grown so ad-
dicted to their phones that they
carrythemeverywhereandgoto
bed with them by their side. Also,
in a shift with big implications for
his company’s sway over the In-
ternet, smartphone users spend
the bulk of their time in mobile
apps instead of the open web on
which Google built its business.
Add it all up, and “you have to
rethink what search means pret-
ty much from first principles,” he
said.
That helps explain why Sin-
ghal and his group are engaged
in a race that has erupted across
Silicon Valley to become the Goo-
gle of Apps. Singhal, an engineer,
has spent the last 15 years adding
speedandintelligencetotheGoo-
glesearchbox,whichalreadysits
alongside the Golden Arches in
terms of cultural and economic
impact. Today, however, as peo-
ple spend more time on mobile
devices,competitorsarepopping
upeverywhereandGoogleisslip-
pinginitspositionasthegateway
to the Internet.
Venture capitalists are funding
new search start-ups that treat
information and the web as leg-
acy products and that focus on
actions and apps instead. And
while Google, with $65 billion in
the bank, can buy any start-up
it likes, one company it cannot
buy — Apple — is also joining the
mobile search fray. On Thursday,
Applereleasedanearlyversionof
the next version of its iOS mobile
software, giving iPhone and iPad
users the ability to tap Apple’s
search engine for searches of
music, apps and local services —
allowing them to bypass Google.
Singhal and his team have
movedtoreinforceGoogle’sweb-
based search engine by updating
its ranking algorithms so that
websites it deems mobile-un-
friendly fall in search rankings.
In June, Singhal’s group intro-
duced Now on Tap, a project that
willbeavailableonAndroid-based
phones that will embed search in-
side features like text messages
and apps. That lets people search
more easily on mobile without
having to cut and paste words or
typeintoasearchbox.
“My job is not to just look at the
trend today. My job is to look at
what’s beyond the horizon,” Sin-
ghal said. “And beyond the hori-
zon,thereissomuchmorepeople
can do on their devices that is not
possible today.”
CONOR DOUGHERTY
JASON HENRY FOR THE NEW YORK TIMES
Amit Singhal
is leading
Google’s effort
to dominate
search on
mobile devices,
as well as the
open web. It
has plenty of
competition in
Silicon Valley.
BUSINESS FRIDAY, JULY 10, 2015 5

6. Carnival Corporation plans to
begin offering trips to Cuba next
May aboard its new social-mis-
sion-focused line fathom.
The cruises to Cuba fall under
rules that allow licensed travel
companies to bring in American
visitors who comply with federal
regulations for approved types
of travel on the island, company
officials said in a conference call.
In this case, that means cultural,
artistic, faith-based and humani-
tarian exchanges between Amer-
icans and Cubans.
So unlike classic Caribbean
cruises that celebrate sun and
beach time, fathom passengers
to Cuba will spend shore time
engaging in social outreach and
educational activities. Specific
itineraries have yet to be deter-
mined, pending Cuban govern-
mentapproval,butwilllikelyvisit
three destinations within Cuba
during weeklong trips. On-shore
activities may include volunteer
work with small businesses and
agriculture as well as educational
and cultural excursions.
“We believe there’s a tremen-
dous pent-up hunger in the mar-
ketplace and interest in experi-
encing Cuba for the first time, and
so we’re excited to see and share
as much of the country as is possi-
ble,” said Tara Russell, president
of fathom.
While itineraries are still being
ironed out, the company is al-
ready selling trips to Cuba, start-
ing at $2,990 per person.(NYT)
When it comes to planning his
trips, whether for business or
pleasure, Matthew D. Upchurch,
52, is old-fashioned. While the In-
ternet might be a mainstay today
for making flight and hotel reser-
vations, Upchurch, the chairman
and chief executive of Virtuoso,
a global luxury network of travel
advisers and more than 1,700
hotels, cruise lines and tour op-
erators, says he believes there is
nothing like the human touch. To
that end, he encourages travelers
to develop a relationship with one
of the brand’s 9,000 advisers and
rely on that person to create and
manage their itineraries.
Following are excerpts from a
conversation with Upchurch:
Q. It’s so easy to use the Internet.
Why rely on a travel adviser?
A. Your most valuable asset is
your leisure time, and once it’s
lost, there’s no making it back.
Working with a knowledgeable
adviser gets you advice, creativi-
ty and advocacy; those things are
hard to come by online.
Q. How are advisers different
today from what they were a de-
cade ago?
A. Advisers are no longer tied
to a desk; they’re out traveling.
They’re exploring the world and
posting it on social media and
enhancing their own credibility
by actually being out there. And
because of mobility, they have the
ability to help their clients when-
ever they need.
Q. Many Virtuoso advisers
charge planning fees from $100 to
$250. Why should a traveler pay
them?
A. You’repayingforsomeone’s
time,expertiseandconnections,
andthatisinvaluable.Andinma-
nycases,theseadvisersactually
dosaveclientseitherrealdollars
orprovidethemwithgreater
value.
Q. You spend most of your time
traveling. Do you have a favorite
destination?
A. Africa is one. They say “You
leave Africa, but it never leaves
you,” and it’s true. It’s a place
that touches your soul and stays
with you. My father owned safari
lodges in Botswana when I was
growing up so I used to and still
go frequently, not only there but
also to other countries including
Kenya and Tanzania. The nature
and animals are magnificent as
you would expect, but so are the
smiles of the people. (NYT)
From June to August, three rural regions across
Spain are transformed into otherworldly land-
scapes; trees in the heart of the cork forest are
sheared of their bark, becoming brick-red sentinels
with leafy tops that guard the woods. And this year,
for the first time, visitors are able to experience the
harvest with them.
A new eco-tour allows travelers to watch the cork
harvest and later follow donkeys carrying towering
loadstooneofthetraditionalpueblosblancos,towns
whose buildings are paint-
ed stark white and which
dot the countryside in Cat-
alonia, Andalusia and Ex-
tremadura.
The tour, From Bark to
Bottle, leads participants
on an 11-day trip through
Spain’s cork trail to discov-
er the lives of the harvest-
ers, the forest’s biodiver-
sity and the cultural and
gastronomic heritage of
the area — in essence, the
cork’s path from tree to
wine. Cork is a renewable
resource;everyyearfarm-
ers go to a different part of
their land to harvest, only
returning to the same trees every nine years.
Thetour,thebrainchildoftheUnitedStates-based
Cork Forest Conservation Alliance and the ecotour-
ism companies Two Birds-One Stone and Namaste
Viajes, lets 40 wine-loving tourists a year (10 on each
offourtours)experiencethecorkharvestanditscul-
tural, economic and social nuances.
“We want people to come home from the trip hav-
ing fallen in love with the people of the cork forest,”
said Patrick Spencer, executive director of the alli-
ance.
Thefirstlegofthe$3,500tripexploresExtremadu-
ra’sharvestinthesouthwestofSpain.Farmersthere,
in the heart of the cork forest, remove bark from the
same trees used by their great-grandfathers. The
process takes only a few cuts before the harvesters
peel the bark away like a sharpening pencil.
In the expansive savannas there, visitors spend
four days watching the harvest, eating lunch with
farmers and trying their hand at slicing jamón, the
salty slab of cured pork that Spain is famous for, on
a farm where pigs are raised eating cork oak acorns.
Nightsarespentineitherahigh-endhoteltuckedin-
to a refurbished medieval building or an agritouris-
mo, a country estate nestled among cork trees.
Days 5 and 6 take travel-
ers farther south to Anda-
lusia,intoLosAlcornocales
National Park, the largest
national park in Spain
housing cork forestry. The
focus shifts to food, with
visits to artisanal cheese,
wine and olive oil produc-
ers. The evening can be
spent attending group
dinners while watching
burros carry loads of cork
bark into town as the sun
goes down.
The trip ends in Cata-
lonia, in the mossy and
forested northeast, with a
visittoa405-acreprivately
owned cork forest near the region’s rocky coastline,
asensoryexperienceattheCorkInstitute,acorkfac-
toryexcursion,asmall-productioncava-makertour,
andachancetoeatfishboughtthatsamemorningat
a fish auction.
Cork bark is closely intertwined with the lives of
the people in these regions.
“When you go to a little village of 600 people, it
doesn’t matter whether you’re a cobbler or you sell
cheese or you run a laundromat or you pump gas,”
Spencer said. “All of the money that’s coming into
your village is coming from cork, so everyone is in-
vested. There’s an intimacy between the people of
the cork forest and their trees.”
JENNIFER BILLOCK
Some Thoughts on What a Travel Adviser Can Offer That the Internet Can’t
Carnival Plans
Cruise to Cuba
In Spain, Following Cork From Tree to Bottle
KEITH VINCENT
Matthew Upchurch on the
Zambezi River in Zimbabwe.
JORDANA WRIGHT
In the cork forest, farmers need only a few
cuts before peeling the bark away.
TRAVEL FRIDAY, JULY 10, 2015 6

7. Catholic Mass in Latin America, With a Flavor of Revival
QUITO,Ecuador—Therockmusicboomed
asthecongregantsatthissimple,white-walled
churchsangandclapped,raisingtheirarms
skywardastheyprayedaloudandswayedto
thebeat.Thesermonincludedjokesandacall-
and-responsewithpeopleinthepews.There
wasevenafaithhealingtestimonial.Butjust
whenitseemedlikeaProtestantrevivalmeet-
ing,theblessingofthehostbeganandthepa-
rishionersfiledtothealtartotakecommunion.
Afterward, many of the worshipers bought
T-shirts and scarves with the logo of Pope
Francis’ visit to their country this week.
“They’re different,” said the priest who pre-
sided over the service, Ismael Nova, referring
to the Masses he conducts at San Juan Eudes
parish church. But then he added, “It’s the
same Catholic Mass, because we’re still Cath-
olic, but it’s made livelier with the music and
the singing and raising the arms and handing
over our lives more to Jesus.”
Nova belongs to a movement within Cathol-
icism — known as the charismatic renewal —
that has adopted an animated style of worship
similar to Pentecostal and other Protestant
churches. In doing so, the movement has
helped the church compete in a region where,
for decades, rival branches of Christianity
have been siphoning off the Catholic faithful.
That erosion is one of the main challenges
facing Francis, an Argentine who is the first
Latin American pope, as he makes his first
tour as pontiff of Spanish-speaking countries
in the region, visiting Ecuador, Bolivia and
Paraguay. On Thursday, he gave an open air
Mass in Santa Cruz, Bolivia.
Latin America and the Caribbean contain
an estimated 425 million Catholics, more than
a third of the church’s faithful worldwide. But
while at least 90 percent of the region’s popu-
lation was Catholic in the early 1970s, now just
69 percent say they belong to the religion.
At the same time, membership in Protes-
tant churches has exploded. In Brazil, the na-
tion with more Catholics than any other, evan-
gelical churches have grown so much that one
church founder built a 10,000-seat replica of
Solomon’s Temple. Other evangelical church-
es lure crowds with fight nights, reggae music
or even on-site tattoo parlors.
Francis told a gathering of priests in Rome
last month that when he first encountered
charismatic Catholics he thought they were
“not right in the head,” according to an ac-
count on the website of Vatican Radio. But he
said that he later realized he had been wrong,
and he encouraged priests to hold charismat-
ic training sessions in their parishes.
While other popes have voiced support for
the movement, which started in the United
States in the 1960s, more traditional forces in
the church have long put up resistance, wary
of its Pentecostal-like style, its embrace of the
Holy Ghost as a mystical force and ecstatic
expressions like speaking in tongues and
faith healing. But it may just be what many in
the Catholic Church are looking for.
“I always wanted a different way to get
closer to God but without changing religions,”
said Milena Martín, 36, who was born and
raised Catholic.
“ItriedtheMormons,theJehovah’sWit-
nessesandanotherChristiansect,”sheadded.
“Ilikedhowtheysang,howtheypraisedGod,
butIdidn’tfeelcomfortablebecauseImissed
theotherparts,theEucharist,confession,the
cultoftheVirginMary.” WILLIAMNEUMAN
ACROSS
1 Tycoon with the
middle name
Socrates
11 Advantage
15 When it’s
acceptable to
start downing
brews
16 Pen sound
17 Vacation spot
18 Dog command
19 Away from the
nose
20 See 38-Across
21 Response to
an unrevealing
revelation
22 Point of a
vampire story?
23 Bikini blasts,
briefly
24 Not going
swimmingly?
27 Ice cream
purchases
29 Many Israelis
30 Carriage driver?
33 Complexion
changer
34 Cousins of husks
35 High Rhine
feeder
36 Nickname for
Baltimore
38 With 20-Across,
scratched the
surface for
resources?
39 Squeeze
40 Get to
41 Become
attentive
43 David of “Rhoda”
44 Frequency unit
45 German architect
who spent 19
years in Spandau
Prison
47 Freon letters
50 Shankar at
Woodstock
51 1920 birthplace
of the N.F.L.
53 Like some fans
and fences:
Abbr.
54 Where Cal
Ripken broke
Lou Gehrig’s
consecutive
games record
55 Piano pieces
56 6 or 7 p.m., for
many
DOWN
1 Aron’s girlfriend
in “East of Eden”
2 Bikini feature
3 Superlative
ending
4 Precious thing in
Montana’s motto
5 11th-century
conquerors
6 Histrionic skill
7 It may be thrown
around at a party
8 Put out
9 Sewn up
10 Relative of
calypso
11 Item often with a
hinged lid
12 Hog’s portion
13 Not yet realized
14 Presents unfairly
21 Humble
response to a
compliment
22 Laparoscopy
technology
23 Rides
24 Certain W.W. II
enlistee
25 One may be built
to commemorate
triumph
26 Noted
Ross Perot
impersonator
27 Pretty
28 Unpretty
30 ___-a-brac
31 What surrounds
an aperture
32 Energizes, with
“up”
34 Top: Prefix
37 Capital of
Lorraine
38 One delivering
raspberries
40 Round bump on
a cactus
41 Film title
character who
says “This is the
part where you
run away”
42 Hall-of-Fame
football coach
Greasy
43 Board
45 Asian wear with
pleats
46 Nabokov novel
47 Vanilla ___ (hot
drink)
48 Unvarying
49 Vanilla ___ (cold
drink)
51 Trawler’s catch
52 Elect
ANSWER TO PREVIOUS PUZZLE
PUZZLE BY BARRY C. SILK
7/10/15
I N S E S P R I T G L O B
L A I P U R I N A I O T A
L U N C H M O N E Y A R T S
E R A S M U D L E N D E E
Q U I P P E D P O R T E R S
O E R S O R E S
J E T T I S O N S Q U I D
A V E Q U A S H F R O
W E A R S P E E D B O A T
E L A T E M O O
P I S T O N S N O I S O M E
E N E R G Y O E S U R A L
P Y L E R I G H T O N C U E
S O M A E O L I A N A N G
Q U A D Q U E S T S S A Y
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8. Defiance on Same-Sex Marriage
China’s Stock Crash Raises New Fears
Paying Attention
The Supreme Court could not have been
clearerwhenitruledlatelastmonththatstates
may not refuse to marry same-sex couples.
“The right to marry is a fundamental right
inherent in the liberty of the person,” Jus-
tice Anthony Kennedy wrote for the court in
Obergefell v. Hodges. “Under the Due Process
andEqualProtectionClausesoftheFourteenth
Amendment, couples of the same sex may not
bedeprivedofthatrightandthatliberty.”
Most of the country has quickly accepted
these words as the law of the land. But in sev-
eral states where the resistance to marriage
equality has been most entrenched, govern-
ment officials whose job it is to license or per-
form marriages continue to misunderstand,
stall or flatly defy the court. However they
justifythesetactics,theirconductisillegaland
they must stop.
In Hood County, Tex., County Clerk Katie
Lang ordered her staff shortly after the ruling
not to issue any same-sex marriage licenses
because,shesaid,“Iaminstillingmyreligious
liberty in this office.”
She later backtracked to say that while she
would personally refrain, her staff members
were “available and ready” to issue the li-
censes. But that wasn’t true for Jim Cato and
Joe Stapleton, a couple of 27 years who were
repeatedly turned away by Lang because, she
told them, the office did not have the updated
license forms in hand.
It took a federal lawsuit, which Cato and
Stapleton filed on Monday, to persuade Lang
at last to follow the law and issue the license a
few hours later.
Behavior like this has been encouraged by,
among others, Texas’ attorney general, Ken
Paxton, who called the Obergefell ruling “law-
less” and showed less concern with following
it than with reassuring government workers
like Lang that lawyers would be ready to de-
fend them at no charge.
Meanwhile,somecountyclerksinKentucky
and an Alabama probate judge have removed
themselvesfromthemarriagebusinessentire-
ly rather than help same-sex couples marry.
These public employees seem to forget that
taxpayers pay them to do their job. If doing
thatjobviolateshisorherreligiousbeliefs,the
best solution is to find another job.
Some same-sex marriage opponents argue
thatunderstatereligious-freedomlaws,agov-
ernment employee’s beliefs should be accom-
modatedsolongasanotherofficialisavailable
tocarryoutthetask.Butgovernmentemploy-
ees do not have a constitutionally protected
righttopickandchoosewhichmembersofthe
public they will serve.
Not so long ago, government officials in-
voked religious beliefs to justify all manner of
racial segregation and discrimination, includ-
inglawsbanninginterracialmarriage.TheSu-
premeCourtstruckdownthatmarriagebanin
1967 in Loving v. Virginia.
It is impossible to imagine any county clerk
or judge now claiming a right not to marry an
interracial couple based on religious beliefs.
And yet, that would be analogous to what
these public employees are doing in refusing
to serve same-sex couples. The Constitution’s
protection of religious freedom simply does
not include the right to discriminate against
others in the public sphere.
The stock market crash in China is a test of
President Xi Jinping’s stated goal of reducing
the government’s dominant role in the econo-
my. So far, his government has reverted to its
traditionalcommand-and-controlapproachto
financial matters.
From mid-2014 until early last month, Chi-
na’s main stock exchange jumped about 150
percent as investors poured money into the
market, especially into small, unproven com-
panies. State-owned media raised confidence
in the market even as the broader economy
slowed. And the government encouraged the
frenzy by allowing investors to use borrowed
money to buy stocks. In the second quarter of
this year, about 8.8 percent of urban house-
holds in China owned stocks, a big jump from
6.1 percent in the first quarter, according to a
recent survey.
Theboomturnedintoabustinrecentweeks.
The CSI 300 stock index has fallen about 27
percentsinceearlyJune.Thegovernmenthas
responded by instructing securities firms and
state-owned companies to buy the shares. It
also temporarily banned new initial public of-
ferings and forbade investors who own more
than5percentofacompany’ssharesfromsell-
ingstockinthosebusinesses.Andtradingwas
halted in about a third of the companies on the
Shanghai and Shenzhen stock exchanges.
Though the CSI index rebounded 6.4 per-
cent on Thursday, it’s far from clear that these
interventions will halt the slide for long. Gov-
ernment efforts to prop up markets, without
broader financial reforms, generally do little
more than delay the inevitable. A stock mar-
ketcrash,slow-motionorquick,islikelytostir
social unrest, which the Chinese government
fears. But bailing out investors is likely to fuel
more speculation in stocks and other parts of
the financial market.
Chineseofficialshavesaidtheywanttomod-
ernize the country’s economy and give mar-
kets a “decisive role” in allocating resources.
Yet they are deeply worried that stock market
tumbles will cause growth to slow down dras-
tically or lead to a broader financial crisis. But
tryingtorescuethemarketwhenpricesplum-
metisn’tlikelytoworkwhenwhatisneededis
a more resilient and mature financial system.
If you’re like most of us, you’re wondering
what the Internet is doing to your attention
span. You toggle over to check your phone
duringeventhesmallestpauseinreallife.You
have trouble concentrating for long periods.
Over the past few years, researchers have
done a lot of work on attention span, and how
thebrainisbeingre-sculptedbyallthosehours
a day spent online. One of the conclusions that
some of them are coming to is that the online
lifenurturesfluidintelligenceandofflinelifeis
better at nurturing crystallizing intelligence.
Being online is like being a part of the great-
estcocktailpartyever.Ifyouemail,text,tweet,
Facebook, Instagram or just follow Internet
linksyouhaveaccesstoanever-changinguni-
verse of social touch-points.
Online life is so delicious because it is social-
izingwithalmostnofriction.Youcansharebon
mots, photographs or random moments of in-
sight, encouragement or good will. You live in
a state of perpetual anticipation because the
next social encounter is just a second way.
This mode of interaction nurtures mental
agility. The ease of movement on the web en-
courages you to skim ahead and get the gist.
This fast, frictionless world rewards the quick
perception,theinstantevaluationandtheclev-
er performance. As the neuroscientist Susan
Greenfield writes in her book “Mind Change,”
expertgamershaveagreatcapacityforshort-
term memory, to process multiple objects si-
multaneously and to quickly process rapidly
presented information.
Fluid intelligence is the ability to perceive
situations and navigate to solutions in novel
situations, independent of long experience.
Offlinelearning,atitsbest,ismorelikebeing
a member of a book club than a cocktail party.
When you’re offline, there are periods of soli-
taryreadingandthinkingandthenmoreinten-
tional gatherings to talk and compare.
The slowness of solitary reading or think-
ing means you are not as concerned with each
pieceofdata.You’remoreconcernedwithhow
different pieces fit together. You’re concerned
withthenarrativeshape,thesynthesizingthe-
oryortheoverallcontext.Youhavetimetolose
yourself in another’s complex environment.
When people in this slower world gather to
try to understand connections and context,
they gravitate toward a different set of ques-
tions.Theywanttoknowwhereitisallheaded
and what are the ultimate ends.
Crystallized intelligence is the ability to
use experience, knowledge and the products
of lifelong education that have been stored in
long-term memory. It leads ultimately to un-
derstanding and wisdom.
The playwright Richard Foreman once de-
scribed people with cathedral-like personali-
ties — with inner density, people with distinc-
tive personalities, and capable of strong per-
manentattachments.Now,thatrequiresanact
ofrebellion,amongfriendswhoassignonean-
other reading and set up times to explore nar-
rative and cultivate crystallized intelligence.
DAVID BROOKSE D I T O R I A L S O F T H E T I M E S
OPINION FRIDAY, JULY 10, 2015 8

9. Ex-49er Is Charged
The former San Francisco 49er
defensive tackle Ray McDonald
was charged with domestic vio-
lence and false imprisonment in
connection with allegations he
assaulted his ex-fiancee while
she held their 2-month-old child,
the Santa Clara County, Calif., dis-
trict attorney’s office said Thurs-
day. McDonald was arraigned,
but did not enter a plea. (AP)
Webb Shares Lead
TheveteranKarrieWebband
thesecond-yearL.P.G.A.Tour
playerMarinaAlexeachshota
four-under-par66tosharethe
earlyleadonawetfirstdayatthe
UnitedStatesWomen’sOpenin
Lancaster,Pa.Playwashalted
with55playersonthecourse.(AP)
Charles Drives Liberty
Tina Charles had 21 points and
10 rebounds, leading the Liberty
to a 79-76 overtime victory over
the host Washington Mystics on
Thursday night. (AP)
In Brief
Ken Stabler, Former Raiders Quarterback, Dies at 69
Williams Reflects After Dispatching Sharapova
A Snake wouldn’t seem to offer
much help on a football field.
Unless that snake was named
Stabler.
Ken Stabler, who led the Oak-
land Raiders to a Super Bowl
victory and was the N.F.L.’s Most
Valuable Player in 1974, has died
as a result of complications from
colon cancer. He was 69.
His family announced his
death on Stabler’s Facebook page
Thursday. The statement said
Stabler “passed peacefully” on
Wednesday.
Stabler’s coach with the Raid-
ers,JohnMadden,saidhisformer
quarterback was cool under pres-
sure.
“I’ve often
said, if I had
onedrivetowin
a game to this
day, and I had
a quarterback
to pick, I would
pick Kenny,”
Madden said.
“Snake was a
lotcoolerthanI
was.Hewasaperfectquarterback
and a perfect Raider. When you
think about the Raiders, you think
aboutKenStabler.”
Stabler was a four-time Pro
Bowl selection with the Raiders,
leading the franchise to consis-
tent success during the 1970s,
including a 32-14 victory over the
Minnesota Vikings in the 1977 Su-
per Bowl.
For all of his bravado, Stabler
was not a wild thrower. He was
one of the most accurate passers
of his time.
“The bigger the situation,”
Madden said, “thecalmer hegot.”
Stabler, a native of Foley, Ala.,
threwfor27,938careeryardsover
15 seasons, which also included
stintswiththeHoustonOilersand
New Orleans Saints.
“A great quarterback,” the fam-
ily said, “he was an even great-
er father to his three girls, and
grandfather to his two ‘grand
snakes.’ ” (AP)
WIMBLEDON, England —
There are few things that put
Serena Williams in a cheerful and
expansive mood more easily than
a dominant victory over Maria
Sharapova.
Williams defeated Sharapova
for the 17th consecutive time, this
one by 6-2, 6-4 in a Wimbledon
semifinal Thursday that lasted 1
hour19minutes.Thatwasslightly
more time than Williams spent in
a news conference waxing philo-
sophically about some of her ten-
nis aspirations.
With a victory in the final Sat-
urday against Garbiñe Mugu-
ruza and seven more wins at the
United States Open, Williams
would reach 22 Grand Slam ti-
tles to tie Steffi Graf’s Open era
record. She would also complete
a calendar-year Grand Slam, last
achieved by Graf in 1988.
But a victory on Saturday is not
guaranteed,Williamspointedout.
Muguruza surprised Williams in
the second round at the French
Open last year on her way to the
quarterfinals.
Afterthatmatch,Williamssaid,
she worked on specific deficien-
ciesandwonthreeofthenextfour
major titles.
“It was an eye-opening loss for
me,”shesaid.“Somelossesyou’re
angry about, and some losses you
learn from. That loss, I think I
learned the most from in a long
time.”
Sharapova, on the other hand,
has not yet learned enough from
her extensive list of losses to Wil-
liams.
On Thursday, Williams’s al-
ready-dominant serve was ex-
ceptional. First she established a
122-mile-per-hour heater straight
upthemiddle,andwhenSharapo-
va was looking for that, Williams
served out wide for aces and win-
ners.
Williams had 13 aces, including
two on second serves, and won 86
percentofpointswhenshegother
first serve in. She never faced a
break point.
“That’s one of the reasons that
she’s in the position she’s in to-
day,” Sharapova said. “She’s able
to come up with the goods from
that serve when she’s down.”
In the other semifinal, Mugu-
ruza, a little-known 21-year-old
Spaniard, barged into the final by
beating 13th-seeded Agnieszka
Radwanska, 6-2, 3-6, 6-3.
Ranked No. 20 entering the
tournament, Muguruza was play-
ing in her first Grand Slam semi-
final. She is now in her first final,
playing against a woman looking
for her 21st major title, and sixth
at Wimbledon.
DAVID WALDSTEIN
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 74/ 60 0.17 82/ 64 T 85/ 66 T
Atlanta 91/ 73 0 95/ 74 S 93/ 75 PC
Boise 88/ 63 0.01 83/ 65 T 80/ 63 PC
Boston 70/ 64 0 79/ 66 PC 84/ 69 S
Buffalo 65/ 60 0.22 77/ 59 S 80/ 63 PC
Charlotte 99/ 71 0 99/ 71 T 94/ 70 PC
Chicago 76/ 58 Tr 79/ 61 PC 80/ 67 T
Cleveland 74/ 64 0.65 77/ 61 PC 79/ 62 PC
Dallas-Ft. Worth 92/ 77 0 94/ 75 S 95/ 77 S
Denver 81/ 53 0.05 83/ 57 T 88/ 58 PC
Detroit 74/ 63 0.13 78/ 62 S 83/ 64 PC
Houston 93/ 76 0 91/ 76 T 92/ 76 T
Kansas City 77/ 59 0 83/ 70 PC 90/ 72 S
Los Angeles 74/ 64 0 74/ 62 PC 78/ 64 PC
Miami 91/ 78 Tr 91/ 79 PC 91/ 78 PC
Mpls.-St. Paul 80/ 60 0 85/ 67 PC 80/ 69 PC
New York City 78/ 68 0.08 85/ 70 PC 87/ 72 S
Orlando 93/ 75 0.05 95/ 73 T 95/ 74 T
Philadelphia 85/ 73 Tr 87/ 70 PC 89/ 70 S
Phoenix 101/ 83 0 100/ 78 S 103/ 82 S
Salt Lake City 84/ 60 0.13 84/ 67 T 88/ 68 PC
San Francisco 67/ 59 0 72/ 59 PC 73/ 60 PC
Seattle 85/ 59 0 77/ 59 PC 74/ 59 PC
St. Louis 77/ 63 0 82/ 71 T 93/ 76 PC
Washington 91/ 78 0.02 87/ 72 PC 87/ 71 PC
FOREIGN CITIES
Yesterday Today Tomorrow
Acapulco 91/ 71 0.05 91/ 77 T 86/ 78 T
Athens 93/ 72 0 91/ 73 S 89/ 71 S
Beijing 93/ 70 0 93/ 71 PC 97/ 73 S
Berlin 64/ 55 0.10 66/ 49 C 75/ 58 PC
Buenos Aires 64/ 46 0 63/ 47 PC 62/ 48 C
Cairo 91/ 77 0 93/ 71 S 95/ 73 S
Cape Town 68/ 52 0 70/ 50 PC 60/ 44 Sh
Dublin 62/ 41 0.12 69/ 52 C 65/ 54 Sh
Geneva 79/ 57 0 86/ 62 S 89/ 60 S
Hong Kong 85/ 80 0.10 91/ 82 C 94/ 84 PC
Kingston 90/ 82 0.04 91/ 78 PC 90/ 78 PC
Lima 71/ 65 0 73/ 65 PC 73/ 66 PC
London 73/ 52 0 76/ 58 PC 77/ 59 PC
Madrid 102/ 68 0 101/ 67 S 100/ 67 S
Mexico City 73/ 50 0.05 67/ 51 T 68/ 52 T
Montreal 73/ 61 0 83/ 61 S 84/ 65 PC
Moscow 79/ 61 0 72/ 52 Sh 66/ 54 C
Nassau 90/ 79 0.05 91/ 77 PC 89/ 77 PC
Paris 73/ 55 0 82/ 58 S 83/ 55 S
Prague 64/ 59 0.27 68/ 47 S 76/ 57 S
Rio de Janeiro 82/ 72 0 78/ 67 T 81/ 68 S
Rome 86/ 75 0 89/ 71 S 89/ 70 S
Santiago 63/ 48 0.01 62/ 43 Sh 60/ 47 R
Stockholm 64/ 54 0.64 62/ 54 Sh 69/ 53 Sh
Sydney 60/ 45 0 62/ 47 R 66/ 46 S
Tokyo 70/ 68 0.81 80/ 71 S 83/ 73 PC
Toronto 75/ 61 0 79/ 58 S 82/ 62 PC
Vancouver 77/ 59 0 72/ 61 PC 70/ 60 PC
Warsaw 73/ 55 0.14 62/ 51 PC 69/ 52 PC
N.L. SCORES
WEDNESDAY’S LATE GAMES
L.A. Angels 3, Colorado 2
L.A. Dodgers 5, Philadelphia 0
THURSDAY
St. Louis 4, Pittsburgh 1
Miami 2, Cincinnati 0
A.L. SCORES
WEDNESDAY’S LATE GAME
Chicago White Sox 7, Toronto 6,
11 innings
THURSDAY
Yankees 6, Oakland 2
Kansas City 8, Tampa Bay 3
Chicago White Sox 2, Toronto 0
Cleveland 3, Houston 1
Detroit 4, Minnesota 2
Ken Stabler
SPORTS FRIDAY, JULY 10, 2015 9

10. Mets Pitcher, Noted for His Curves, Still Confounds at 42 (ish)
He looks out of place, at least at
first.WearingaMetsuniformthat
grants no slimming effect to his
block of a body, he could easily be
mistaken for an overinvested fan
who has wandered onto the out-
field grass.
But this is the pitcher, Bartolo
Colon. Forty-two years old, it is
believed. Two hundred eighty-
five pounds, it is believed — 100
pounds heavier than when he
made his major league debut in
1997. The sight of him stirs the “if
he can, I can” fantasies of Sunday
softball heroes everywhere.
Colonisthesecond-oldestactive
player in the majors. He has col-
lected eight teams’ uniforms, 213
careerwins,aCyYoungAwardand
a steroid-related suspension. In an
often frustrating Mets season, this
Everyman has been a joyful diver-
sion,witha9-7recordthatincludes
48·inningswithoutawalk,afran-
chiserecordworthyofpause.
AndyethisFredFlintstonebody
type can make his successes seem
accidental, almost comical. A city
chuckles when his helmet flies off
as he swings his bat, and shakes
its head in disbelief when he puts
on another display of pinpoint ac-
curacy with pitches that rarely top
92 miles an hour — as if he’s gotten
lucky,again.
It’snotluck.Everysixdaysorso,
Colon defies the general percep-
tion that a professional athlete’s
bodyneedstobelean,chiseledand
mean. His long, successful career
suggests that some mystery in the
metrics-obsessed sport remains,
that good pitching cannot be mea-
suredinawaistline.
“There’s just a bias against big
people,” said the former Mets
pitcher Ron Darling, a Colon fan.
“But he can do it without having
thatperfectcomputerbody.Heisa
masterpitcher.”
Do not be fooled by the packag-
ing. “I feel good with the weight I
have,”Colonsaid.
Colonhasplayedforsolongthat
he is a constant of summer, on the
mound in Anaheim, Calif.; Bos-
ton; or in between. His ubiquity
tends to eclipse his back story.
He comes from a village in the
Dominican Republic on the out-
skirts of Altamira called El Copey,
which has one main road, dozens
of squat houses and coconut trees.
Localloreattributeshisstronglegs
to climbing trees, and his strong
wrists to the childhood chores of
picking coffee beans and turning
the crank of a machine that re-
movespulpfromthebeans.
“From childhood, he was very
strong,” his father, Miguel Valerio
Colon,recalled.“Hewascapableof
pulping up to 1,000 crates of coffee
beansinaday.”
If the pulping machine built up
his arms, then throwing rocks to
knock fruit from trees developed
his accuracy. “Throwing at coco-
nuts and mangoes,” Colon said.
“But the coconut was the most dif-
ficult.”
Wordofhisexploitssoonreached
Winston Llenas, a former major
leaguer working for the Cleveland
Indians. Llenas recalls that while
the young prospect did not have a
typical pitcher’s physique, he pos-
sessed obvious talent and a com-
mitment to hard work, a trait that
Colononcesaidhelearnedfromthe
likesofPancho.
Darling said here is a power
thrower who, with the decline that
comeswithage,hasmadethetran-
sition to finesse pitcher. Fastball,
fastball, location, location, carving
up the corners, adding sinking ac-
tion,changingspeeds.
“It’sgenius,”Darlingsaid.
Couple this with Colon’s work-
horse nature — think of Pancho —
and he is somehow able to become
stronger as the game progresses.
“He’s throwing 88 miles an hour,”
Darling said. “Then, when he
needs to, in the seventh inning, all
ofasudden,92,93.” DANBARRY
A baseball player’s
lengthy career sprouted
from humble roots.
SPORTS FRIDAY, JULY 10, 2015 10