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

The Wall Street Journal
Good morning,
Paths of Victory
Donald Trump took a defiant stance on the campaign trail Thursday, angrily denying the latest allegations of sexual misconduct amid fresh poll results that indicate his already narrow path to the White House is constricting. Mr. Trump trailed Hillary Clinton by 4 percentage points in North Carolina, and was ahead by 1 point in Ohio, according to WSJ/NBC/Marist polls released Thursday. Both battleground states took on outsize importance for the Republican nominee after his campaign all but conceded Virginia and a poll earlier in the week showed him trailing by double digits in Pennsylvania. Without winning those two states—and losing in either Ohio or North Carolina—Mr. Trump’s ability to capture the necessary 270 electoral votes appears increasingly unrealistic. Meanwhile, we report that the clearest divide in this year’s election now falls along educational lines.
Things Have Changed
Verizon signaled Thursday that it may demand to renegotiate its $4.8 billion deal for Yahoo following the internet company’s recent disclosure of a 2014 data breach that affected more than 500 million accounts. Verizon General Counsel Craig Silliman said it was “reasonable” to believe that the breach represented a material event that could allow it to change the terms of the takeover. He said it was up to Yahoo to prove the full impact of the data leak and prove it wasn’t material. Many merger agreements contain provisions allowing buyers to withdraw from deals if the value of a transaction has been hurt by a significant development. Legal experts said the contract language gives Verizon leverage to renegotiate or even walk away because of the security breach, but enforcing material adverse change clauses is difficult and courts have resisted their use.
In the Darkest Hour
Even before former Wells Fargo CEO John Stumpf was summoned for hearings in Washington, the bank had been slow-footed in responding to outrage over employee behavior that included opening as many as 2 million unauthorized accounts without customer knowledge. It misjudged the significance of firing 5,300 employees over five years for related bad behavior, failing to tell its own board of the number before regulators made it public. The botched response, a textbook example of how not to handle a crisis, reached a peak when Mr. Stumpf stepped down Wednesday. We report that at the root of Wells Fargo’s crisis-control debacle is an insular corporate culture, fostered by executives with decades of tenure, which left it ill-prepared. We also look at what’s next for the bank under the leadership of new CEO Timothy J. Sloan.
Come Critics and Writers
The bombshell news from Sweden—Bob Dylan winning the Nobel Prize in Literature—would seem to be the last word in a debate that has swirled around the songwriter since he was pegged as the voice of a generation in the 1960s. Mr. Dylan is the first musician to receive the award in its 115-year history, a vindication for literary scholars who have sought to elevate his work. The news riled some writers who objected to literature’s highest honor going to a musician, regardless of his unofficial stature as “poet laureate of rock ’n’ roll.” Mr. Dylan, who has written books and stories as well as more than 500 songs, has often defined himself first and foremost as a musician. But he is much more than a songwriter, and his work is worthy of maximum celebration, writes our critic Jim Fusilli.
TODAY'S VIDEO
Staff Included
That Was Painless
Wine lovers who follow their dreams of owning a French château often find an unexpected amenity included: its staff. An existing winemaking team is an invaluable resource, but brings its own challenges.
TOP STORIES
U.S.

Economists Believe a Recession Is Likely Within Next Four Years

Nixon Library Gets a New Look. Will the Ex-President Also Get One?
WORLD

Malaysian Fund 1MDB Linked to White House Visit

Terror Suspect Found Dead in German Jail Cell Had Traveled to Syria
BUSINESS

Unilever Resolves Pricing Dispute With Tesco

Xerox’s Largest Individual Shareholder Sues to Block Split of Company
MARKETS

J.P. Morgan’s Results Beat Estimates, Propelled by Investment Bank

China Trade: Another Weak Signal for Global Economy
NUMBER OF THE DAY
150 million
The number of users Pinterest said it has world-wide who log on at least monthly. The visual-search service has increased its users by half since September 2015 and is showing it can compete with Facebook, Twitter and other internet giants.
QUOTE OF THE DAY
They start talking and the next thing you will have a love marriage or she will run away with a boy.
Balbir, who goes by one name, on fearing that the freedom that comes with cellphones could lead his daughters astray. We report that tens of millions of Indian women are finding themselves barred by fathers and husbands from taking advantage of technological leaps that benefit men.
TODAY'S QUESTION
Going back to our story above, what are your thoughts on Mr. Dylan receiving the Nobel Prize in Literature? 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 Mr. Stumpf stepping down, Bob Kenney of Maryland commented: “As a customer of Wells Fargo (albeit as the result of other banks going out of business), I heartily applaud Mr. Stumpf’s departure. However, I wonder what role his successor played in the shenanigans that went on in the past at the bank. An outsider would have been preferable.” Wayne Grabow of Colorado weighed in: “Mr. Stumpf was paid to know what was going on in his company and to direct its future. Either he did not know what was going on, or he approved these unethical programs. Either way, he failed in proper leadership.” Jay Davidson of Colorado wrote: “Scapegoats don’t solve systemic problems. What drives commercial banks to fee income generation? It’s the same reason they are not trying to improve earnings through loan income: Regulatory invasion of all aspects of banking.” And Vic Hayslip of Alabama said: “I understand accountability, but we go too far in society when a CEO is forced out who has by all accounts done an amazing job and had no direct knowledge of the issues that forced his retirement.”
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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