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

The Wall Street Journal
Good morning,
Questionable Outcome
Some employees at Outcome Health, a hot tech startup that installs video screens in doctors’ offices and charges pharmaceutical companies to run ads on them, misled advertisers by charging them for placements on more screens than were installed and manipulating data on how well ads performed, according to former employees, several advertisers and company documents. Outcome has hired a law firm “to review allegations about certain employees’ conduct that have been raised internally,” a spokesman said. Investors including Goldman Sachs and Google parent Alphabet poured around $500 million into Outcome at what the Chicago company said was a valuation of $5.5 billion in May. Its charismatic 31-year-old CEO, Rishi Shah, has parlayed his startup into connections with political and financial heavyweights.

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Out of Patience
The Trump administration said Thursday it intends to end billions of dollars in payments to insurers for subsidizing low-income consumers under the Affordable Care Act, saying they can’t lawfully be made because Congress hasn’t appropriated the money. Mr. Trump, though, has told at least one lawmaker that the payments may continue if a bipartisan health-care deal is reached, according to people familiar with the matter. Earlier in the day, he signed an executive order directing several departments to explore ways to expand access to cheaper health-care plans with fewer benefits than the ACA mandates. Critics say this will drain the ACA market of healthier customers, sending costs soaring for the older and sicker people who remain.
Fed Outlook
President Donald Trump is nearing a decision on who will lead the Federal Reserve after Janet Yellen’s current four-year term as chairwoman expires in February. He met with Stanford University economist John Taylor Wednesday for an interview also attended by Treasury Secretary Steven Mnuchin and Vice President Mike Pence, according to a White House official. The other three candidates, say people familiar with the matter, are former Fed governor Kevin Warsh and current Fed governor Jerome Powell—who had meetings with Mr. Trump last month—and Ms. Yellen. The four offer two contrasting views: Ms. Yellen and Mr. Powell have advocated easy-money policies and favored gradual interest-rate increases, while Mr. Taylor and Mr. Warsh have criticized the Fed’s aggressive monetary easing and called for changes in how it sets policy. It isn’t clear which way the president is leaning.
Business Backpackers
While besuited businessmen haven’t entirely abandoned briefcases and messenger bags, the backpack is gaining ground, as office elevators everywhere make clear. Sales of adult men’s backpacks have grown steadily in the past two years, according to retail-trend tracker NPD, including a 5% increase between August 2016 and August 2017, to $864 million—48% of the entire U.S. backpack market. Driving that uptick, in part, is the backpack’s evolution into a higher species of bag, with labels across the board crafting versions suited to the C-suite. “Men’s backpacks have gotten more executive,” explained NPD analyst Marshal Cohen. Elsewhere in our Off Duty section, explore Transylvania’s more peaceable—and less Dracula-inspired—charms, from stylish guesthouses to picturesque villages. Also, our auto columnist Dan Neil explains why the new Mazda MX-5 Miata RF belongs in the car Hall of Fame.
TODAY'S VIDEO
California Wine Country Burns
That Was Painless
More than 20 major fires continued to burn across Northern California, sending tens of thousands of people fleeing. The fires are expected to burn for weeks.
TOP STORIES
U.S.

Shifting Conditions, Poor Communications Complicate California Wildfires

House Passes Disaster Relief, Puerto Rico Credit Bill
WORLD

Syrians Caught in Crossfire as Fight Against ISIS Heats Up

Palestinian Authority, Hamas Reach Reconciliation Deal After 10-Year Feud
BUSINESS

Cord-Cutters Sap AT&T’s TV Business

Amazon Suspends Entertainment Chief Roy Price
MARKETS

Cost Cuts, Credit-Card Lending Buoy Bank Earnings

Star Fidelity Manager Gavin Baker Fired Over Sexual Harassment Allegations
NUMBER OF THE DAY
14.5 trillion
The quarterly operating profit forecast by Samsung Electronics, in South Korean won ($12.8 billion)—a record, and up 179% from a year earlier. But in a surprise, the head of Samsung’s lucrative components business announced his resignation.
QUOTE OF THE DAY
We prayed to Our Lady of Ransom.…She certainly came through.
Father Bob Poole, the parish priest at St. Philip Church, where the mother of Joshua Boyle has been active. Mr. Boyle was rescued along his wife, Caitlan Coleman, and their three children five years after being abducted by militants while backpacking in Afghanistan.
TODAY'S QUESTION
What are your thoughts on the how President Donald Trump’s executive order will impact the U.S. health-care system? Send your comments, which we may edit before publication, to 10point@wsj.com. Please include your name and location.
—Compiled by Charity L. Scott
READER RESPONSE
Responding to yesterday’s question on the Boy Scouts welcoming girls, John Connor of Michigan wrote: “As a former scout and scout leader, recent decisions by the Boy Scouts of America are unfortunate and will result in even lower membership over time. The national leadership clearly does not understand their core market demographic or the appeal of Boy Scouts to parents or the boys. This is a slow-moving train wreck.” Marybeth Beard of Kentucky shared: “I come from a scout family; my maternal grandfather was a scout leader; he, along with my uncle and brother all achieved the Eagle Scout rank. Boy Scouts are for boys, and Girl Scouts are for girls. Keep it that way, and keep the tradition alive. Embrace and promote the tradition of the scouts. This latest move is a grave mistake.” And Dan Greenebaum of New York said: “I think this is a phenomenal development. As a former Cub Scout I think one of the best things about the experience was being taken and merited based on accomplishments. It gives kids a sense of self-worth and work ethic and none of that is gender specific. I understand the pushback from the Girl Scouts, but I know so many people who talk about their Eagle Scout status with pride and the only time I hear people talk about their time in Girl Scouts it is more of a statement that they did it without any real lasting connection. The programs provide different experiences and I think there is value in allowing children to choose which route they wish to go.”

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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