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

The Wall Street Journal
Good morning,
May in July
Britain's new prime minister, Theresa May, quickly assembled a built-for-Brexit cabinet on her first evening at 10 Downing St. and, in a surprise pick, put Boris Johnson—the former London mayor and flamboyant figurehead of the Leave campaign who appeared politically deceased a week ago—in charge of foreign policy. Mr. Johnson’s appointment to succeed Philip Hammond as foreign secretary was an unexpected move, due both to his recent political defeats and his history of somewhat inflammatory remarks about leaders such as President Barack Obama and Hillary Clinton. Meanwhile, Ms. May promised to follow through with an efficient divorce from Europe, repeating her mantra of “Brexit means Brexit.” She installed another pro-Leave campaigner, David Davis, as head of the U.K.’s Brexit unit and appointed Mr. Hammond who, like her, stood with the campaign to stay in the EU, as treasury chief.
Breaking on
The European Union’s antitrust regulator on Thursday hit Google with additional formal charges, cranking up pressure on the Silicon Valley firm to change the way it operates in a range of services.
Closing Credits
Viacom executives are pressing ahead with plans to sell a stake in the Paramount Pictures movie studio, despite resistance from controlling shareholder Sumner Redstone, potentially inflaming an already incendiary boardroom battle at the media giant. China’s Dalian Wanda Group is in talks about buying 49% of the studio, while another, undisclosed suitor is also on the hunt for Paramount. A deal with Wanda would give Viacom much-needed cash and a powerful strategic partner in Asia, but any agreement would face hurdles. National Amusements, the holding company of the ailing Mr. Redstone, has signaled opposition to the idea of selling a stake in Paramount and recently changed the company’s bylaws to require a unanimous board vote to approve such a transaction, requiring approval from Mr. Redstone and his daughter Shari Redstone, who is National Amusements’ president and Viacom’s vice chair.
Optimistic Pessimism
Bond yields are plummeting—German 10-years Wednesday were the first in the eurozone to sell at below-zero rates—and stocks are peaking, a divergence extreme enough to suggest investors in each market are living on different planets. The Dow Jones Industrial Average reached its second consecutive closing high Wednesday, edging up 24.45 points to 18372.12. Falling bond yields signal deepening pessimism about the outlook for growth, but stocks are showing signs of optimism, recovering their initial losses. In fact, there is a way to reconcile these conflicting signals: Bond investors don’t expect economic catastrophe; they simply assume central banks will act as if catastrophe is around the corner. Our special report looks to Japan for answers, explains why ultra low interest rates aren’t unprecedented, and examines whether they might be here to stay. Meanwhile J.P. Morgan Chase & Co. kicked off second-quarter earnings season for large U.S. banks by posting stronger-than-expected quarterly earnings and a surprise increase in revenue. And the Bank of England held its benchmark interest rate steady on Thursday, confounding economists who had expected a cut. Sterling rose on the news and traded 1.8% higher against the dollar. Officials said, however, they expected to launch fresh stimulus on multiple fronts next month.
One Giant Leap for Mankind — and Pikachu
We’re standing at a defining moment in the history of technology, writes our Personal Technology columnist Joanna Stern. Yes, she’s referring to “Pokémon Go,” a free game for iPhones and Android phones released by Niantic Labs in partnership with Nintendo and Pokémon. If you’ve been fighting to ignore the phenomenon, you should check it out to witness the power of augmented reality, which connects us to others and our environment in a way no technology has before. When you launch the game, you see its world famous “pocket monsters” as if they existed in your backyard. Unlike virtual reality, which transports you to another universe, you play in our own. The furor may soon die down, but “Pokémon Go” represents the future of how we’re going to interact with computers. Joanna’s guide will get you started.
Grid Attack
That Was Painless
Dozens of break-ins show how poor security puts America’s electric system at risk from terrorist saboteurs and blackouts lasting days, weeks or longer. Keith Cloud, head of security for the Western Area Power Administration, says he doesn’t receive enough funding to secure his substations.

Donald Trump, Hillary Clinton Locked in Tight Race in Ohio and Iowa, Polls Find

Dallas Police Embark on Long Mourning Process

U.S. Brings WTO Challenge Against China Over Copper, Graphite, Other Minerals

Syria’s Aleppo Running Out of Food, Medicine After Regime Forces Advance

Cravath, Swaine & Moore Names Faiza Saeed as Presiding Partner

Silicon Valley Looks for Lessons in Theranos

EU Court Adviser’s Opinion Could Save Spanish Banks Millions

OPEC Is Winning the Market Share War
$10 billion
The potential liability claims General Motors could face as a result of a federal appeals court’s denial of the auto maker’s attempt to use a bankruptcy shield to block some lawsuits over faulty ignition switches.
Is Supreme Court Justice Ruth Bader Ginsburg going to apologize to me for her misconduct?
Donald Trump used Twitter to respond to a series of highly unusual and escalating comments from Justice Ginsburg in which she suggested a Trump White House would be bad for the court and the nation. In another tweet, he called on Justice Ginsburg to resign.
What are your thoughts on Justice Ginsburg’s comments about Mr. Trump? Send your comments, which we may edit before publication, to Please include your name and location.
—Compiled by Margaret Rawson
Responding to yesterday’s question on the Dow Jones Industrial Average hitting a new record, Mark W. Monaghan of New Hampshire wrote: “The Brexit fears in the market were unsubstantiated. The same is true for a potential Trump presidency. The market will be fine.” Joel O’Driscoll of California commented: “The Dow’s rise is somewhat concerning as I’ve watched more and more investors pouring money into equities with a thought that ‘if the market hits a Brexit-like downturn, no big deal…it will bounce back even higher.’” And Randy Miller of Oregon said: “The crash will be epic as the big bubble can’t handle much more air.”
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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