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

The Wall Street Journal
Good morning,
Breaking Rank
The latest Republican effort to reshape the nation’s health-care system teetered on the brink of collapse in the House, reflecting a new assertiveness by GOP centrists, a group that in recent years has rarely wielded such power. GOP leaders said late Tuesday that they were still sewing up support for the bill, but the ranks of Republicans opposed or undecided on the bill swelled to numbers almost large enough to derail it. As of Tuesday, at least 21 House Republicans said they wouldn’t support the legislation, with a similar number undecided. The show of defiance suggests that GOP leaders may not be able to count on the cooperation of their centrist contingent on upcoming bills that could prove just as thorny as the health measure, including the president’s plan to overhaul the tax code.

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Not Quite Ripe
Apple extended its rebound in the latest quarter with rising profit and revenue but reported tepid iPhone demand that adds pressure on the technology giant to deliver a hit with its new 10th-anniversary handset later this year. Shipments of its flagship product slipped 1% from a year earlier to 50.8 million iPhones, owing partly to continued weakness in China and to customers waiting for the forthcoming phone model, which is expected in the autumn. The overall performance adds evidence that the world’s most valuable company has stabilized its business after a slump in its latest fiscal year, during which weak sales of its core products and rising competition sent revenue and profit tumbling. The latest quarter’s increase in revenue was the second in a row, following three consecutive quarterly declines.
The Price Wasn’t Right
Entrepreneur Jeffrey Aronin said a few years ago that he hoped to eventually sell Marathon Pharmaceuticals, which he controls and runs, for billions of dollars. Some employees have said they now expect him to shut down the company. His deflated ambition is a sign of the increasingly hostile reaction to drug companies that specialize in sharply raising the prices of old medications. Mr. Aronin did that over and over again for 15 years, most recently after Marathon won approval in February to sell a drug for muscular dystrophy in the U.S. and set the price at $89,000 a year (some families had been paying $1,200 a year). It took only a month for sticker shock to cascade into criticism from families of patients, a shame campaign from members of Congress in both parties and then a surprise deal by Marathon to sell the treatment to another company.
Young Blood
Sometimes, youth is wasted on young executives. Demand for them is growing, especially in areas like digital commerce and artificial intelligence, executive coaches and recruiters say. As a result, more workers find themselves reporting to younger bosses. Nearly four in 10 U.S. employees worked for someone younger in 2014, up from 31% in 2010. Companies such as Ford are recruiting young bosses to jump-start or reinvent businesses. But those leaders often struggle to gain acceptance and trust from skeptical older colleagues. A young star’s appointment to upper management can be unsettling for older managers whose career trajectories have been less meteoric. For youthful bosses, leadership specialists say the challenge is acknowledging what they don’t know and humbly seeking advice from their elders.
TODAY'S VIDEO
At Your Service
That Was Painless
As Apple’s iPhone sales level off, the company is looking to its services business to boost revenue. Shelby Holliday breaks down the strategy and second-quarter earnings with our tech reporters.
TOP STORIES
U.S.

Fed Rate Rise Unlikely Wednesday, but Possible June Move in Focus

Donald Trump Raises His GOP Allies’ Stress Levels
WORLD

Greek Austerity Deal Opens Up Potential Path Out of Bailout

Trump, Putin Discuss Crises in Syria and on Korean Peninsula
BUSINESS

Facebook’s Female Engineers Claim Gender Bias

Auto Makers Report Steep Sales Declines in April
MARKETS

Trump Adviser Kushner’s Undisclosed Partners Include Goldman and Soros

Macron, Renault and the Future of French Capitalism
NUMBER OF THE DAY
$100 million
The charge General Motors is taking to write off its operations in troubled Venezuela, where authorities last month unexpectedly seized its production plant on a court order.
QUOTE OF THE DAY
Are you too big to manage your industry?
Rep. Albio Sires (D., N.J.) questioned United Airlines Chief Executive Oscar Munoz during a marathon hearing lasting more than four hours on Tuesday. Lawmakers warned U.S. airlines they faced more regulation if they didn’t follow through with pledges to improve customer service following the widespread outcry over the treatment of a United passenger last month.
TODAY'S QUESTION
Returning to our story above, what are your thoughts on the challenges for young executives in the workplace? 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 Goldman Sachs turning to lending, Antonio Reymao of the United Kingdom said: “My opinion is very simple: Goldman is simply doing what any other massive bank it hopes to compete with is already doing. J.P. Morgan has a strong investment banking arm, and its retail banking division is also strong. The same goes for Bank of America and Citigroup. If Goldman wants to compete with them, it needs to increase its offerings, because more and more it is becoming important to hold on to clients and provide them with what they need.” David Fleenor of North Carolina wrote: “If Goldman’s move into lending is followed in kind by other big bank rivals, regional banks, the primary business lenders, could face stiff new competition leading to lower loan rates for corporate, small business, and individual borrowers. Not only would this spread risk across a broader banking sector but also diversify investment banks and reduce their risk of failure in a more dramatic fashion than the failed objective of Dodd-Frank, with its massive regulatory overreach.” And Rich Irwin of Ohio shared: “I think that Goldman Sachs has a well-deserved reputation for its stockbrokerage activities. Moving into the lending business means they are diversifying, and if anyone knows how to mitigate the risks of lending, it would be Goldman Sachs.”

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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