For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com ANYONE CAN BE The Price of Brexit A MOUNTAINBIKER Keeps Piling Up OFF DUTY | W1 OPINION | A14 FRIDAY - SUNDAY, AUGUST 5 - 7, 2016 ~ VOL. XXXIV NO. 131 WSJ.com EUROPE EDITION DJIA 18352.05 g 0.02% NASDAQ 5166.25 À 0.13% NIKKEI 16254.89 À 1.07% STOXX 600 337.84 À 0.67% BRENT 44.29 À 2.76% GOLD 1358.80 À 0.20% EURO 1.1137 g 0.12% What’s BOE Shakes Up Pound and Gilts Central bank’s moves try’s vote to leave the Euro- ratesatAvivaInvestors. News pean Union, the central bank Monetary Move After a long period of un- Dropping to cut rates, restart cut its benchmark interest rate Bank of England delivers conventional monetary policy Yield on 10-year gilts bond buying exceed to 0.25% from 0.5% and said it ‘stimulus now’..................... A3 in developed economies, inves- Business&Finance expects to reduce it further to- Heard: BOE’s juggling act tors have wondered if central 2.0% market expectations ward zero in coming months. gets riskier............................. B1 banks had run out of ammuni- In addition, it said it would Rate cut puts pressure on tion in their ability to move he Bank of England cut BY CHRISTOPHER WHITTALL buy £60 billion ($79.9 billion) U.K. banks.............................. B7 markets and stimulate econo- 1.5 Trates to a record low as AND GEORGI KANTCHEV of U.K. government bonds in mies. Increased stimulus part of a larger-than-ex- the next six months and up to moves from the European Cen- pected stimulus package, The Bank of England’s £10 billion of U.K. corporate 0.64% before rebounding tral Bank and the Bank of sending the pound and bond 1.0 larger-than-expected package debt over 18 months. It also slightly to 0.643%. The U.K.’s Japan appeared to have little yields sinking. A1, A3, B1 of stimulus measures Thurs- announced a new funding pro- FTSE 100 stock index jumped impact earlier this year as in- The quarter-point rate day sent the pound tumbling gram for banks, offering lend- 1.6% to 6740.16, and the Stoxx vestors talked of diminishing cut ramps up pressure on 0.5 and the yield on the 10-year ers ultracheap four-year loans Europe 600 gained 0.7% to returns from their actions. profits at U.K. banks and U.K. government bond to a re- to finance lending to house- 337.84. The Japanese yen has will spur cost-cutting. B7 Thursday: 0.643% cord low, a demonstration of holds and businesses. “The scale of the [BOE’s] gained around 19% against the British retailers are rais- 0 how some central banks retain Sterling fell 1.6% to $1.3112 response is significant in U.S. dollar this year despite ing prices on imported the ability to jolt markets. in afternoon New York trading, terms of the market reaction fresh rounds of monetary eas- 2016 goods as the pound weak- Aiming to boost Britain’s while the yield on the 10-year that you’ve seen afterwards,” ing from the Bank of Japan, Source: Thomson Reuters ens in the wake of Brexit. B1 economy following the coun- gilt touched a record low of said Charlie Diebel, head of Please see MARKET page A3 THE WALL STREET JOURNAL. London was knocked from its perch as the world’s cost- liest city. It is now No. 3, after New York and Hong Kong. B5 Special Delivery: The Olympics Arrive in Rio Taliban’s Facebook is cracking down on vague or misleading newsfeed headlines aimed at New Chief luring users into clicking. B1 Toyota cut its full-year Aims to earnings outlook as first- half profit and sales slid as the yen strengthened. B2 Close Rifts MetLife will cut $1 billion in costs by the end of 2019 with some job losses in re- BY HABIB KHAN TOTAKHIL sponse to ultralow rates. B5 AND JESSICA DONATI Siemens raised its out- KABUL—The Taliban’s new look for fiscal 2016 following leader is wooing back some strong results at the com- disaffected members as the in- pany’s energy operations. B4 surgency wages a new offen- Nokia swung toa$738.2 sive in strategic Helmand million loss on expenses re- province, say those close to lated to its Alcatel deal. B3 the group, defying U.S. and Af- ghan government efforts to World-Wide undermine it. Maulavi Haibatullah Akhun- dzada, in power for just over The Taliban’s new leader two months, has been reach- is closing some rifts in the ing out to key Taliban figures insurgency as it wages a sidelined by his predecessor, new offensive in Afghani- Mullah Akhtar Mansour, ac- stan’s Helmand province. A1 cording to these people. In one key example, the U.K. police said there new Taliban chief has nomi- was no evidence that a man nated a former military com- who killed a U.S. woman in a CHARLIE RIEDEL/ASSOCIATED PRESS mander in Helmand, Mullah London stabbing attack was LET THE GAMES BEGIN: Brazilian Rico de Souza took part in the Olympic torch relay Thursday ahead of Friday’s opening ceremony. A6, A7 Abdul Qayum Zakir, to return motivated by terrorism. A3 to an official post just as the Islamic State said it insurgency is intensifying ef- named a new Boko Haram forts to retake the province. leader, a sign of the terror- Other nominations include ist group’s command over COMPANIES STEER ANALYSTS Mullah Nanai as chief justice the Nigerian insurgency. A4 of the Taliban supreme court. News of a cash payment The more inclusive ap- of $400 million by the U.S. to TO EARNINGS SURPRISES proach marks a break from Tehran reignited a furor over Mullah Mansour, who was the Iran nuclear deal. A4 killed in a U.S. drone strike in South Sudanese soldiers May. Mullah Mansour had at- and rebels raped hundreds of Pointing to previous comments helps guide earnings expectations, almost always lower tempted to stamp out opposi- women and girls during July tion to his leadership, after ri- fighting, the U.N. said. A4 val factions battled for control BY THOMAS GRYTA, SERENA NG The surprise wasn’t as surprising as it company. He had implied some custom- of the group. The group splin- A Brazilian Senate panel AND THEO FRANCIS looked. Before AT&T’s announcement, in- ers were waiting longer to upgrade their tered when it emerged last recommended a conviction in vestor-relations employees at the tele- mobile phones, an important revenue year that their supposed suspended President Rouss- In April, AT&T Inc. shares rose after it communications giant encouraged ana- source. leader, Mullah Mohammad eff’s impeachment trial. A6 reported quarterly revenue that nar- lysts to look back at comments made by Please see ANALYST page A8 Omar, had died two years be- U.S. blood banks and reg- rowly topped the average estimate from finance chief John Stephens in early fore and his death had been ulators are stepping up analysts. March, say analysts who spoke with the Beware ‘earnings before bad stuff’....... B5 Please see TALIBAN page A2 screening as concerns rise about the spread of Zika. A9 Israel said it arrested a Mobbed National Parks: U.S. Firms charity employee for alleg- edly siphoning off aid money America’s Mall of the Wild Dominate and giving it to Hamas. A4 iii Instead of tranquility, visitors find Public Cloud Inside crammed buses, epic bathroom lines In Europe MANSION W9 BY JIM CARLTON are a ton of people here.’ ” BY SAM SCHECHNER Those seeking serenity this New YOSEMITE NATIONAL PARK, year at national parks are find- When energy giant Enel Calif.—When Christine ing a major obstacle instead: SpA started looking last year Old-Fashioned Romalewski imagined her first some 300 million others looking for an outside company to trip to this national idyll, the for the same thing. manage its computer systems Towns New Orleans resident This year, as part and files, the Italian firm had pictured remote of the great migra- a red line: All its data had to CONTENTS Finance & Mkts. B5-8 lodges in a majestic tion of tourists, Yo- stay in the European Union. Arts & Ent............. A10 Off Duty.............. W1-8 wilderness. Deer and semite is expecting The company that got the Books.................. A11-13 Opinion.............. A14-15 Business & Fin.. B1-4 Sports.......................... A7 squirrels would be as many as 400,000 contract? U.S. tech giant Ama- Crossword.............. A10 Technology............... B3 the only other crea- more people than zon.com Inc., which won by Heard on Street.... B8 U.S. News.................. A9 tures she and her last year’s record- promising that Enel’s data Mansion............ W9-14 Weather.................. A10 Markets Digest..... B6 World News....... A2-6 husband, Rob, might breaking crowd of would be housed in a German encounter. 4.2 million. Overall, facility that met Enel’s other €3.20; CHF5.50; £2.00; “We didn’t realize the National Parks requirements: “reliable, flexi- U.S. Military (Eur.) $2.20 we were going to see had a record 307 mil- ble, agile and cheap.” folks in bathing suits, lion visitors in Political and legal pressure tubing, and people Yosemite 2015—up 5% from has for years been mounting walking through the year before. on European companies to meadows and people walking More are expected this year, as store their sensitive informa- along the sides of the highway,” the park service celebrates its tion in Europe—in part to said Mrs.