****** THURSDAY, AUGUST 23, 2018 ~ VOL. CCLXXII NO. 45 WSJ.com HHHH $4.00 DJIA 25733.60 g 88.69 0.3% NASDAQ 7889.10 À 0.4% STOXX 600 384.02 g 0.03% 10-YR. TREAS. À 7/32 , yield 2.823% OIL $67.86 À $2.02 GOLD $1,196.30 À $3.70 EURO $1.1599 YEN 110.55 What’s Hawaii Prepares as Powerful Storm Nears President News Denies Role Business&Finance ed officials at their last In Payments Fmeeting signaled they were likely to raise interest rates next month and ex- Trump blasts former president directed him to buy pressed concerns that pro- lawyer who implicated the silence of the women so longed trade disputes could their allegations about affairs disrupt economic growth. A1 him as parties jockey with Mr. Trump wouldn’t harm his presidential bid. Target said it had its best ahead of midterms On Twitter, Mr. Trump ac- quarterly results in more than cused Mr. Cohen of lying and a decade, continuing a string BY REBECCA BALLHAUS mocked his legal talents. On of strong reports from the AND JANET HOOK Fox News, Mr. Trump said he nation’s largest retailers. A1 became aware of the pay- Buyout firm KKR is in WASHINGTON—President ments to the women “later talks to acquire Fiat Chrys- Trump denied playing a part in on,” echoing his statement in ler’s global auto-parts busi- illegal hush-money payments April that he wasn’t aware of ness, Magneti Marelli. B1 to two women during the 2016 the payment to Stephanie Clif- campaign and berated his for- ford, the former adult-film The S&P 500 edged lower, mer lawyer for swearing in star who goes by the name even as the index’s bull run court a day earlier that he had, Stormy Daniels, at the time it reached a milestone. The Dow leaving the White House and took place. fell 88.69 points, while the both political parties Wednes- Last month, a lawyer for Mr. Nasdaq rose 0.4%. B10, B11 day to sort through the fallout Cohen released a tape of a Sep- A robust August rally less than three months before tember 2016 conversation be- in the Treasury market is midterm elections. tween Mr. Cohen and the presi- foiling one of Wall Street’s Mr. Trump and administra- dent in which they discussed most popular trades, a bet tion officials sought to dis- PleaseturntopageA5 on lower bond prices. B1 credit Michael Cohen, who said Tuesday as part of a guilty Lawmakers calibrate their Sales of existing homes plea in federal court that the strategies after plea.............. A4 continued their downward slide in July, falling 0.7% from the previous month. A2 Facebook pulled its data-security app from Ap- Pressure, Pique ple’s app store after Apple ruled the service violated its data-collection policies. B4 FROM TOP: HUGH GENTRY/REUTERS; MARCO GARCIA/ASSOCIATED PRESS Led Cohen to Talk Xiaomi swung toaprofit IN THE PATH: Hurricane Lane was downgraded Wednesday to a Category 4 Storm, as Hawaii as smartphone sales rose residents braced for flooding, possible power outages and sustained winds of 155 miles an hour. A3 Michael Cohen had many rea- criminal counts, potentially car- sharply, but a CEO bonus pay- sons to play ball last weekend rying a lengthy prison sentence ment weighed on results. B4 when his legal team sat down to and staggering financial penal- Continental AG’s shares talk to federal prosecutors. ties. fell nearly 15% after the Ger- Adding to the pressure, David man auto-parts giant issued By Rebecca Davis Pecker, the chairman of Ameri- a fresh profit warning. B2 Fed Signals Rate Raises, O’Brien, can Media Inc., which publishes the National Enquirer, provided Santos is acquiring nat- Nicole Hong prosecutors with details about ural-gas company Quadrant and Joe Palazzolo payments Mr. Cohen arranged Energy for $2.15 billion. B6 But Sees Trade Risks The Manhattan U.S. Attor- with women who alleged sexual Hartford Financial agreed ney’s office had testimony from encounters with President to buy insurance underwriter BY NICK TIMIRAOS the minutes of the Fed’s July is designed to neither spur nor Mr. Cohen’s accountant and busi- Trump, including Mr. Trump’s Navigators for $2.1 billion. B10 31-Aug. 1 meeting, which were slow growth. ness partners, along with bank knowledge of the deals. WASHINGTON—Federal Re- released Wednesday. The Fed held rates steady records, tax filings and loan ap- This account of how Mr. Co- World-Wide serve officials at their last Officials also discussed at the meeting after raising its plications that implicated not hen went from a pugnacious de- meeting signaled they were dropping language from their benchmark rate in June to a only Mr. Cohen in potential crim- fender of the president to turn- likely to raise interest rates post-meeting statement that range between 1.75% and 2%, inal activity, but also his wife, ing on Mr. Trump is based on Trump denied playing a next month and expressed has for years described policy the second such increase this who filed taxes jointly with her details provided by people close part in illegal hush-money more concerns than before that as “accommodative,” or de- year. In June, most officials husband. Prosecutors signaled to Mr. Cohen and others briefed payments to two women prolonged trade disputes could signed to stimulate growth. penciled in a total of at least Mr. Cohen would face nearly 20 PleaseturntopageA4 during the 2016 campaign disrupt economic growth. The decision to pull back on four rate increases this year. and berated his former law- If the economy performs in this guidance bears the im- Most officials have signaled yer for saying that he had, line with officials’ expecta- print of Fed Chairman Jerome they are keen to raise rates to leaving the White House and tions, “it would likely soon be Powell, who has signaled such PleaseturntopageA9 Rally Blunts Big Bet Against Bonds both political parties to sort appropriate to take another language is no longer neces- Treasurys’ strength this month has hurt hedge funds and other through the fallout. A1, A4 step” in raising the benchmark sary as short-term rates edge Fed rate ticks up ahead of investors betting that prices were headed lower. B1 Jackson Hole............................ B12 The DNC has contacted short-term rate, according to closer to a neutral setting that Weekly net bets on 10-year Treasury futures the FBI after an unsuccess- 400 thousand contracts ful attempt to hack into a voter database maintained 200 by the organization. A6 Target Rides Retail Surge The U.S. and China kicked 0 off two days of talks in Wash- BY KHADEEJA SAFDAR a strong quarter of results tronics and homewares to toys ington aimed at settling an from the country’s largest re- and apparel. –200 escalating trade battle. A7 Target Corp. said it had its tailers, which have benefited “Our progress so far had A Mexican official said best quarterly results in more from increasing consumer been well ahead of our origi- –400 the U.S. and Mexico are close than a decade, buoyed by the confidence and rising online nal expectations,” he said on a Bets that bond prices will fall to resolving some points that retailer’s efforts to improve its sales despite the challenge of conference call Wednesday. –600 stores and e-commerce capa- Amazon.com Inc. Target Chief The results were heralded have stalled Nafta talks. A7 bilities as well as by a boom- Executive Brian Cornell on by analysts as confirmation of –800 The administration is ing economy that has helped Wednesday said it isn’t just a retail “renaissance.” But 2013 ’14 ’15 ’16 ’17 ’18 looking to boost pressure on lift sales across the retail in- the economy fueling growth, PleaseturntopageA8 Iran to abandon its nuclear dustry. pointing to the company’s Source: Thomson Reuters program, Bolton said. A9 The numbers from the Min- gains in market share across a Heard on the Street: Retailer’s good news isn’t over........... B12 A U.S.-backed group in neapolis-based chain continue range of categories from elec- Syria is being pressed by the Assad regime in talks to cede control of its territory. A9 AirPods Aren’t Just Headphones, INSIDE Islamic State released They’re an Invisibility Shield what it said was a recorded speech by Baghdadi, the ter- iii Cut Your ror group’s elusive leader. A9 The administration is fin- Owners of Apple’s wireless earphones use ishing a response to state them as a secretary and a hiding place Amazon laws circumventing the new cap on individual deductions BY REBECCA DOLAN more than transmit music and for state and local taxes. A6 phone calls. Even when muted, Bill in Half Ohio State’s Meyer was Zach Miles learned a valu- or off, they declare: Stay away. DONNA suspended for three games able lesson before graduating “It makes you look like after a probe of his handling this year from Oral Roberts you’re really consumed in your SUMMER’S of domestic-abuse claims University in Oklahoma. Walk- work,” said Hughston May, ‘RADIO’ CLASSIC against an assistant coach. A5 ing across campus while wear- creative resident at Moxie, an Any Oracle Mexico’s president-elect ing his AirPods earphones advertising agency in Atlanta. kept people at a distance. “If AirPods do part-time duty LIFE & ARTS, A12 Amazon Autonomous will hold off auctioning new Database Database oil blocks for at least two you’re not in the mood to talk as a personal secretary, to somebody, screening calls years after taking office.