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The 10-Point: My Guide to the Day's Top News

The Wall Street Journal
Good morning from India, where I’ve been meeting senior government officials including Prime Minister Narendra Modi. Check out my interview below.
Meanwhile, back in the US:
Return to Sender
Hillary Clinton’s use of a private email server and her lax record-keeping while secretary of state violated the department’s policies, an independent watchdog said yesterday, a rebuke that keeps the issue alive as she campaigns for president. Inspector General Steve Linick offered Mrs. Clinton some cover in the report by faulting previous secretaries of state for similar breaches, and made no recommendation that Mrs. Clinton or any other former secretary of state be investigated or punished. But Mrs. Clinton’s breach seems more serious, given that her predecessors operated in somewhat more primitive digital times. FBI agents are expected to interview Mrs. Clinton in coming weeks. In part because of the email controversy, the Democratic front-runner has struggled with voters on issues of honesty and trust. Meanwhile, the Capitol Hill vice-presidential speculation machine is beginning to kick into gear.
Alibaba and the SEC
Federal regulators are investigating the accounting practices of Alibaba, the e-commerce giant whose blockbuster U.S. stock-market debut helped win a wide following for Chinese tech firms. The company disclosed that the SEC asked it to provide details of its accounting for a delivery affiliate, its operating data for the largest online shopping day of the year, and “related party transactions in general.” Alibaba has drawn the SEC’s attention in the past over alleged sales of fake goods on its Chinese website, and analysts have raised concerns about its use of financial measures that don’t comply with generally accepted accounting principles, or GAAP, and because it doesn’t consolidate results of some affiliates. This week’s regulatory disclosure follows investor complaints about the prior lack of financial information on affiliate companies, including its delivery affiliate.
Blood Lines
Accuracy problems with Theranos’s proprietary Edison testing devices have become an embarrassment and potential legal liability for Walgreens, which had been the blood-testing startup’s main conduit to patients and a vital stamp of credibility. We report that the drugstore chain made a deal that included plans to put Theranos blood-testing centers in thousands of its drugstores across the U.S. despite never fully validating the startup’s technology or thoroughly evaluating its capabilities. After regulators said in January that some of Theranos’s testing posed “immediate jeopardy” to patients’ health, Walgreens officials considered walking away from the partnership but then hesitated because of worries that the Palo Alto, Calif.-based company might sue for breach of contract and claim billions of dollars in damages. Walgreens doesn’t expect to recoup its investment of at least $50 million in Theranos.
Please Be Seated
Parents are having an increasingly difficult time guaranteeing free airplane seats next to their children. Airlines have expanded extra-legroom seating on planes and labeled more plain coach seats as preferred, leaving fewer seats to reserve in advance without fees. Some carriers have gone further, stripping the right to reserve a seat in advance from their cheapest fares, tripping up families who book the cheapest price without noticing restrictions on seating. Parents face the choice of adding fees on top of fares or begging other travelers on packed flights to switch seats. The family fee has gotten so aggravating that in April the Senate unanimously approved a provision in the FAA’s annual funding bill that would require airlines to seat a family member next to his or her child.
TODAY'S VIDEO
Meeting Modi
That Was Painless
Yesterday I interviewed Indian Prime Minister Narendra Modi in his residence compound in New Delhi, on the eve of his second anniversary in office. Mr. Modi defended his efforts to revamp his country’s economy.
TOP STORIES
U.S.

Sovereign Default: It’s Not Personal, Just Business

Eleven States Sue Obama Administration Over Transgender Bathroom Policy
WORLD

Islamic State Under Attack in Two Strongholds

Ukraine Welcomes Home Pilot After Prisoner Exchange With Moscow
BUSINESS

Insurers Seek Big Premium Boosts

Microsoft to Streamline Smartphone Hardware Business
MARKETS

Brent Crude Rises Above $50 a Barrel

LendingClub Fund Falters
NUMBER OF THE DAY
156
The number of criminal and civil cases brought by the Justice Department, SEC and CFTC against 10 of the largest Wall Street banks since 2009. In 81% of those cases, individual employees were neither identified nor charged.
QUOTE OF THE DAY
He said the Americans didn’t want to hear about the atomic bomb. So I didn’t say much.
May Yamaoka, an 87-year-old, Japanese-American survivor of the 1945 attack on Hiroshima, on returning home to California, where for 60 years she buried her most painful memories.
TODAY'S QUESTION
Going back to our story above, what are your thoughts on airlines making fewer free, reserved seats available? Send your comments, which we may edit before publication, to 10point@wsj.com. Please include your name and location.
—Compiled by Margaret Rawson
READER RESPONSE
Responding to yesterday’s question on the U.S. launching a drone strike on Pakistani soil, Roy Farrow of Nevada wrote: “Playing God is always a dicey proposition, particularly on foreign soil. Who’s to say whose God gets to make the next call? How would we feel if the shoe was on the other foot? One man’s patriot is another man’s terrorist.” But Colin Coletti of Australia commented: “Pakistan has a track record of giving safe harbor to terrorists whether knowingly or unknowingly. The United States has the right to act aggressively and, in time-sensitive cases, without warning if the intelligence leading up to the strike is conclusive. The world, including Pakistan, is a safer place without Mullah Akhtar Mansour in it.” And John Ebsen of Wisconsin weighed in: “For high-level strikes (Osama bin Laden, Mullah Mansour, etc.), we need to do what we need to do for a successful strike.” Ken Keller of California added: “There should never be a safe haven for terrorists.”
This daily briefing is named "The 10-Point" after the nickname conferred by the editors of The Wall Street Journal on the lead column of the legendary "What's News" digest of top stories. Technically, "10-point" referred to the size of the typeface. The type is smaller now but the name lives on.
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