ROUGH RIDER USS THEODORE ROOSEVELT (CVN 71)
THURSDAY EDITION
Women’s Equality Day
TR celebrates 95 years of women’s suffrage
SAILOR 2.0 heat stress
BY THE NUMBERS women’s equality
AUGUST 27, 2015
ARABIAN GULF (August 26, 2015)- An MH-60S Sea Hawk Helicopter assigned to the Sea Knights of Helicopter Sea Combat Squadron (HSC) 22 delivers cargo from the Military Sealift Command fast combat support ship USNS Arctic (T-AOE 8) to the flight deck of the aircraft carrier USS Theodore Roosevelt (CVN 71) during a vertical replenishment. Theodore Roosevelt is deployed in the U.S. 5th Fleet area of operations supporting Operation Inherent Resolve, strike operations in Iraq and Syria as directed, maritime security operations and theater security cooperation efforts in the region. (U.S. Navy photo by Naval Air Crewman (Helicopter) 2nd Class Christopher Harris/Released)
by MC3 Stephane Belcher
tr celebrates women’s equality day
S
ailors and Marines celebrated Women’s Equality Day on the mess decks aboard the aircraft carrier USS Theodore Roosevelt, Aug. 26. The celebration marked 95 years since passage of the 19th Amendment, which gave women the right to vote. Cmdr. Kim Donahue, the command Chaplain, spoke at the event to reflect on her experience with the progress of women in the military. “Since I‘ve been in [the military], women’s equality has been a given,” said Donahue. “When it comes to equality, if you’re really equal, you should be capable of pursuing an exciting demanding career. Then you should be able to continue on to take on more and more responsibility. And that’s been my experience.” In 2000, Donahue was the first female chaplain onboard the aircraft carrier USS Carl Vinson (CVN 70), the same year Capt. Kathleen McGrath became the first woman to command a U.S. warship while deployed in the Arabian Gulf. “I was very proud, and yet it didn’t matter. I had a job to do. It really doesn’t matter what gender I am. It’s my calling, my job, my
profession. I was just thrilled to be on a carrier period,” said Donahue. After 17 years of service Donahue said she was honored to have the opportunity to speak to the younger generation of military women. “Women have a lot of determination to join into something that is a predominantly male profession, which is war fighting,” said Donahue. “I think this is the case for most women in the military, myself included, that I never looked at myself as a pioneer. I just thought it was my right. It’s open to me, I want to do it and so I’m going to do it.” Some of Donahue’s experiences throughout her civilian and naval career, as woman of many firsts, left an impact on the Sailors. “I really liked the Chaplain’s story,” said Aviation Electronics Technician Airman Reshae Davenport, from Cleveland. “I thought it was very personal and impactful. I also liked the song that the choir did. It was really emotional and overall, it got me feeling spirited about the whole movement. It made me feel really proud about the history of women in the military.” Following Donahue’s speech, an all-female group from TR’s choir took to the stage, along with a cake cutting and video presentation.
Women’s Equality By the Numbers
1948 Women’s Armed Services Integration Act Was Passed
1950-1953 More Than 50,000 Army Nurses
Granting Women Permanent Status in the Military and Entitled to Benefits
Served in Combat Zones and Hospital Ships during the Korean War
Women’s Suffrage Campaign
1848-1920
2 Votes
In the Senate
1920
The margin of Victory for the 19th Amendment
42 Votes
In the House of Representatives
Women in the U.S. are Allowed to Vote
1991-1992 More Than
1stTime
41,000
1998
Women Fighter Pilots Fly Combat Missions Off Aircraft Carriers in Operation Desert Fox
Women Deployed to Combat Zones During the Persian Gulf War
87 Women Nurses were Prisoners of War in WWII
About
350,000 or 15%
Of Active Duty Military are Women
Sailor 2.0
heat stress
1 Heat Stroke : the most serious type of heat illness; caused by failure of the body’s temperature-regulating mechanism
2 Heat Edema: swelling of the hands, feets and ankles
4
3 Heat Cramps: painful cramps that usually occur in the most worked muscles such as arms, legs or stomach
Heat Exhaustion: caused by excessive loss of water
HYDRATION TIPS
1. Drink enough water to prevent thirst. 2. Monitor fluid loss by checking the color of your urine. 3. For short-duration (less than 60 mins), low-to-moderate-intensity activity, water is a good choice to drink before, during and after excercise. 4. Any time you excercise in extreme heat or for more than one hour, supplement water with a sports drink that contains electrolytes. 5. Begin excercise well hydrated. Drink plenty of fluids the day before.
5 types of heat related illness
5 Heat Rash: red or pink rash usually found in areas covered by clothing. When your pores become blocked and sweat can’t escape
6. Consider all fluids, including tea, coffee, juices, milk and soups. The amount of caffeine in tea and coffee does not discount the fluid in them, even if they have a slight diuretic effect. 7. Eat at least five cups of fruits and veggies per day for optimum health. 8. Drink at least eight glasses of water per day.
midnight in New York F R O M T H E PA G E S O F
WEDNESDAY, AUGUST 26, 2015
Inquiry Weighs If ISIS Analysis Was Distorted WASHINGTON — The Pentagon’s inspector general is investigating allegations that military officials have skewed intelligence assessments about the United States-led campaign in Iraq against the Islamic State to provide a more optimistic account of progress, according to several officials familiar with the inquiry. The investigation began after at least one civilian Defense Intelligence Agency analyst told the authorities that he had evidence that officials at United States Central Command were improperly reworking the conclusions of intelligence assessments prepared for policy makers, the officials said. Fuller details of the claims were not available, including when the assessments were said to have been altered and who at Central Command was responsible, the analyst said. The officials, speaking only on the condition of anonymity about classified matters, said the investigation focused on whether military officials had changed the conclusions of draft intelligence assessments during a review process and then passed them on. The prospect of skewed intelligence raises new questions about the direction of the government’s war with the Islamic State. Government rules state that intelligence assessments “must not be distorted” by agency agendas or policy views. Analysts are required to cite the sources that back up their conclusions and to acknowledge differing viewpoints. Under federal law, intelligence officials can bring claims of wrongdoing to the intelligence community’s inspector general. If officials find the claims credible, they are required to advise the House and Senate Intelligence Committees. That occurred in the past several weeks, the officials said. Spokeswomen for both inspectors general declined to comment for this article. The Defense Intelligence Agency and the White House also declined to comment. (NYT)
© 2015 The New York Times
FROM THE PAGES OF
Stocks Slide After Rebound Collapses A sudden reversal in United States stock prices late in trading on Tuesday produced a sixth consecutive session of losses and heightened uncertainty about the challenges facing global markets. The wild swings in prices over the last two days have been the most extreme since the financial crisis. The benchmark Standard & Poor’s 500-stock index surged as much as 2.9 percent on Tuesday, but ended down 1.4 percent. The resurgence of volatility has overturned a sense of comfort among many investors who had grown accustomed to calm markets. While the market turmoil may not yet be flashing warning signs about the United States economy, which still appears to be strengthening, it is pushing investors to take a closer look at their portfolios. Stock prices have generally been rising faster than the profits of corporate America, and that is prompting caution. Even after the recent downturn, investors are still paying more for corporate profits than they have on average over the last 10 years.
“The last two days have been a wake-up call for a lot of portfolio managers,” said Nicholas Colas, the chief market strategist at Convergex, an institutional brokerage firm. “It forces everyone to reconsider their base assumption for things like earnings growth and revenue growth.” The opening of trading in Asia on Wednesday brought little clarity. Shanghai stocks, which have led the declines over the past few days, swung between gains and losses, and the volatile trading spread across the rest of Asia. Japanese stocks rebounded from Tuesday’s 4 percent drop, but shares in Australia were down. Some investors have taken a dark outlook, questioning whether the markets and the broader economy will be able to abide a coming rise in interest rates. For the time being, there are few doubts that the American economy has been growing, and the economy is unlikely to be significantly hampered by the recent turmoil in China. New data reported on Tuesday pointed to a healthy increase in consumer
confidence in August and a rise in new home sales in July. But voices like Lawrence H. Summers, the former chief economic adviser to President Obama, have recently joined a chorus of skeptics arguing that the growth may not be able to continue if the Fed steps back from the market. Investors have ramped up bets this week that the Fed will have to delay any planned changes in interest rates. European markets rose sharply Tuesday, and when New York trading opened, stocks surged. The Dow Jones industrial average, which had plunged 1,000 points early on Monday, rose 441 points early on Tuesday in another day of heavy trading. That optimism, however, slowly faded. And in the last half-hour of trading, the tentative rally unraveled. The Dow closed down 204.91 points, or 1.3 percent, at 15,666.44. The S.&P. 500 ended 25.60 points lower at 1867.61, while the Nasdaq composite index closed down 0.4 percent, or 19.76 points, to 4,506.49. (NYT)
Migrants’ Essentials: Food, Shelter, Smartphone BELGRADE, Serbia — The tens of thousands of migrants who have flooded into the Balkans in recent weeks need food, water and shelter, but there is also one other thing they swear they cannot live without: a smartphone charging station. “Every time I go to a new country, I buy a SIM card and activate the Internet and download the map to locate myself,” Osama Aljasem, a 32-year-old music teacher from Deir al-Zour, Syria, explained, plotting his next move into northern Europe. “I would never have been able to arrive at my destination without my smartphone,” he added. In this modern migration, smartphone maps, global positioning apps, social media and WhatsApp have become essential tools. Migrants depend on them to post real-time updates about routes, arrests, border guard movements and transport,
as well as places to stay. Much of the change is driven by the tens of thousands of middle-class Syrians who have been displaced by war. Such tools are by no means limited to them, and are also used by migrants from Africa and the Middle East to Afghanistan and Pakistan. Traffickers advertise their services on Facebook like any legitimate travel agency, with dynamic photographs of destination cities and generous offers. On the Arabic-language Facebook group “Trafficking to Europe,” one trafficker offers a 50 percent discount for children under 5. The $1,900 price of the journey from Istanbul to Thessaloniki, Greece, includes travel by car to and from each side of the border with a two-hour walk across. Syrians are helped along their journeys by Arabic-language Facebook groups like “Smuggling Into the E.U.,” with 23,953
members, and “How to Emigrate to Europe,” with 39,304. The discussions are both public and private, and migrants share photos and videos of their journeys taken on their smartphones. The groups are used widely by those traveling alone and with traffickers. In fact, the ease and autonomy the apps provide may be cutting into the smuggling business. “Right now, the traffickers are losing business because people are going alone, thanks to Facebook,” said Mohamed Haj Ali, 38, who works with the Adventist Development and Relief Agency in Belgrade, Serbia’s capital — a major stopover for migrants. Ali noted the popularity of Facebook groups such as “Smuggle Yourself to Europe Without a Trafficker.” “Syrians are not idiots,” he said. MATTHEW BRUNWASSER
INTERNATIONAL
Agreement Defies Mutual Contempt Between Koreas SEOUL, South Korea — The agreement that ended a tense military standoff on the Korean Peninsula on Tuesday taught a lesson about North-South dynamics: Though they heap verbal abuse on each other’s leaders, the two sides can still do a deal when it suits their interests. State-run news outlets in the North often refer to President Park Geun-hye of South Korea as a prostitute. Park does not hide her contempt for Kim Jong-un, the North’s leader, calling his policies “delusional.” Each of them had domestic political reasons to want to show toughness and resolve, analysts said, so the confrontation escalated to the brink of armed conflict. Then, each leader had reasons to want to appear statesmanlike and in command of events, so an agreement was struck. South Korea kept its side of the bargain at noon on Tuesday, shutting off the propaganda blaring from loudspeakers at the border, according to the Defense Ministry. The North had said the loudspeaker broadcasts affronted Kim’s “supreme dignity.” In return, North Korea relaxed its military from a state of high alert and expressed “regret” over the wounding of two South Korean border guards by land mines this month. The wording fell a bit short of the explicit apology the South had demanded, but South Korea decided it was close enough. CHOE SANG-HUN
WEDNESDAY, AUGUST 26, 2015
2
Ideal Ally in Syria, Except for Qaeda Ties ANTAKYA, Turkey — A rebel group with thousands of fighters, political clout and close ties to key regional powers has emerged as one of the most powerful opposition forces in Syria in recent months. It has vowed to fight the Islamic State and called for engagement with the West. Despite a long struggle by the United States to find a viable opposition in Syria to counter President Bashar al-Assad and fight the Islamic State, the Obama administration has shown no interest in working with the group, Ahrar al-Sham, or the Free Men of Syria. The problem for the United States is Ahrar al-Sham’s grounding in militant Islam. Some analysts and former United States officials say it is increasingly clear that to effectively challenge the Islamic State and influence the future of Syria will re-
quire at least cautiously engaging with groups like Ahrar al-Sham. “They are in a gray zone, but in a civil war if you are not willing to talk to factions in the gray zone, you’ll have precious few people to talk to,” said Robert S. Ford, a former United States ambassador to Syria now at the Middle East Institute. Ahrar al-Sham cooperates with the Syrian affiliate of Al Qaeda and has welcomed former associates of Osama bin Laden. While its leaders say they seek to create a representative government, they avoid the word “democracy” and say Islam must guide any eventual state. In Syria, the United States’s focus so far on working with groups it deems “moderate” has produced few strong allies. The opposition’s leadership in exile is largely irrelevant, Western-backed insurgent groups have collapsed,
and a program to train and equip “moderate” rebels has faced significant setbacks. A senior Obama administration official, who has been briefed on Syria policy, cited statements by the group, in which it says it is focused only on Syria and supports the rule of law. The group has also said that the rise of the Islamic State, also known as ISIL and ISIS, has made the United States more “pragmatic” about its regional allies. But a range of American officials said they considered the group extremist and that its cooperation with the Nusra Front, the Syrian affiliate of Al Qaeda, remained a major hurdle. “As long as they remain close to Nusra, I can’t see us working with them,” the administration official said, speaking on the condition of anonymity to discuss confidential assessments. BEN HUBBARD
Suspect Viewed Jihadist Video Before Attack, French Say PARIS — In the moments before he loaded his gun to shoot up a train full of passengers, the suspect in Friday’s failed attack on the Amsterdam-Paris express, Ayoub El Khazzani, watched a YouTube video exhorting the faithful to commit violent acts in the name of radical Islam, the chief Paris prosecutor said Tuesday. Announcing a formal investigation for attempted murder in connection with a terrorist act, the prosecutor, François Molins, outlined the trajectory of a young radical, making clear that his intent was maximum carnage in the
name of extremism. Khazzani, he said, attended a radical mosque in southern Spain, crisscrossed Europe and traveled to Turkey despite being unemployed, and finally boarded the Thalys high-speed train in Brussels on Friday with a sackful of ammunition and guns. His arsenal included nine cartridges, a handgun, an assault rifle and a box cutter, Molins said. At the beginning of his remarks to reporters, Molins paid tribute to the two off-duty, unarmed American servicemen and their friend who sprang up to beat the
suspect unconscious. If not for their intervention Khazzani could have wreaked havoc, Molins said. He dismissed as “fantastical” the story Khazzani has been repeating to investigators since his arrest Friday: that he found the weapons in a Brussels park and merely wanted to rob the passengers. Molins said that Khazzani had “become more and more evasive” over four days and that on Monday he stopped talking altogether. “His story has changed a lot,” Molins told reporters. ADAM NOSSITER
In Brief 3,000 Each Day Expected Three thousand migrants a day will pour into the Balkans trying to reach Western Europe in the next few months, the United Nations forecast on Tuesday, a few hours after a suspected arson attack destroyed a sports hall in Germany where some migrants were to be sheltered. The German police said they believed the fire in Nauen, about 25 miles west of Berlin, had been deliberately set. It swiftly destroyed the sports hall, which had been prepared to serve as temporary housing for about 100 migrants, the authorities said. No one was injured in the fire. The United Nations refugee agency said it expected about 3,000 people to cross into Macedonia every day from Greece, the first European Union
nation they reach in their flight from the Middle East and beyond. (NYT)
Ruling Prompts Release Israel began releasing hundreds of African migrants and asylum seekers from a detention center in the southern Negev on Tuesday, in line with a recent Supreme Court ruling that reduced the time they could be held there to 12 months from 20 months. Sivan Weizman, a spokeswoman for the Israel Prison Service, said that 1,178 of the 1,750 people being held in the center would be released by Wednesday. About 45,000 migrants and asylum seekers are currently in Israel, Interior Minister Silvan Shalom said. He said Tuesday that he would soon push for legislation to expedite
deportations.
(NYT)
Iranian Activists on Videos A growing number of Iranian human rights activists and artists, including people who have spent time in prison for their views, are asking Americans to support the nuclear deal with Iran. Their messages, uploaded to YouTube and Facebook over the past few days, are a new element in the arguments for and against the nuclear agreement that are underway in the United States ahead of a mid-September vote in Congress. Mohammadreza Jalaeipour, a former political prisoner and organizer of the opposition Green movement, said he had posted a call for 30-second videos and made one of himself. (NYT)
WEDNESDAY, AUGUST 26, 2015 3
NATIONAL
Turning Crowds Into Real Voters Is Trump’s Test DUBUQUE, Iowa — Donald J. Trump, it is abundantly clear, is not a conventional candidate. And neither is his approach to recruiting campaign activists. A chairwoman of Trump’s Iowa campaign, Tana Goertz, who has no political experience, picks the county leaders “The Apprentice”-style — in head-to-head tests of public speaking, organizing and salesmanship. “A couple of guys came out and said, ‘This isn’t for me,’ ” Goertz said. “I said, ‘Dude, if not now, when? Do it.’ I forced them. One of the guys’ wife emailed me and said, ‘You put some passion back into my husband I hadn’t seen in 15 years.’ ” A major challenge for Trump’s campaign, in Iowa and elsewhere, is how to convert support in polls and raucous crowds into votes in primaries and caucuses. Much of the support for Trump is from people who are fed up with politics as usual. They are estranged from the Republican Par-
ty leadership. He must transform their anger into a resolve to vote, starting with the Iowa caucuses. Many traditional operatives are skeptical of Trump’s ability to organize ranks of volunteers and activists. At an Iowa rally of 2,300 evangelical Christians for Sen. Ted Cruz last week, Cruz’s campaign manager, Jeff Roe, said he would rather have those supporters, who were committed to a family values “movement,” than the thousands more who turn out at a Trump rally to be “part of a show.” Only about one in five registered Republicans have attended past caucuses; the dream of bringing in thousands of marginal voters and increasing the turnout beyond about 120,000 Republicans has eluded many past efforts. “The entertainment value of a Trump event is high, but the reality of his issues is a real challenge to him,” said Steve Grubbs, the director for Sen. Rand Paul’s Iowa campaign, citing Trump’s
past support for gun restrictions and abortion rights. “At the end of the day, you can like the concept of Donald Trump, but voting for him at the caucuses will be a lot tougher for people.” And yet, despite his flamboyant politics and a strategy that seems focused on appearing, every hour of every day, in the national spotlight, Trump has put in place a robust field operation in Iowa, grounded in the most time-proven methods. He was the only candidate of 17 Republicans to plant a volunteer for all 11 days of the Iowa State Fair at the state Republican Party booth this month. His little-noticed volunteers collected hundreds of cards with voters’ email addresses, providing invaluable contact data to activate more volunteers. It was a far cry from the early days of his campaign, when actors were reportedly hired to fill out the crowd when he announced his presidential run. TRIP GABRIEL
States’ Protection of Great Lakes May Cost a City WAUKESHA, Wis. — This city, once famous for its bubbling natural springs, sits about 17 miles from the shore of Lake Michigan. So when the state and federal authorities began demanding that the city address a growing contamination problem in its aquifer, the answer seemed simple: Get water from the big lake. Surely, the needs of Waukesha, with a population just over 70,000, would be but a drop from the Great Lakes bucket. That little drop, however, has stirred up a colossal struggle. Waukesha has run smack into a 2008 compact that prohibits large amounts of water from the
Great Lakes from being pumped, trucked, shipped or otherwise moved beyond the system’s natural basin without approval from the governors of each of the eight states that touch a lake. Waukesha is about a mile and a half outside the lake’s natural basin. If national drought conditions and the economic and political pressures that follow worsen, some water experts fear that the lakes’ existing protections might weaken. Waukesha’s quest for water is seen by some as a first major test of the compact. If Waukesha, a suburb of Milwaukee, is allowed to take Great Lakes water, some advocates say
that could open the door for at least eight other “thirsty” communities that are just outside the basin boundaries in counties, like Waukesha’s, that include portions of a basin. The state’s Department of Natural Resources is expected to issue a final decision late this year on whether to send the city’s request on to the governors around the lakes. “We cannot continue pulling from this aquifer,” Mayor Shawn Reilly said. “I don’t see any alternative that has less environmental impacts. It’s perplexing to me that environmental groups would be opposed.” MONICA DAVEY
Pushing for Wider Access to Medicines for Hepatitis C WASHINGTON — Federal and state Medicaid officials should widen access to prescription drugs that could cure tens of thousands of people with hepatitis C, including medications that can cost up to $1,000 a pill, health care experts have told the White House. The experts said state restrictions on the drugs were inconsistent with sound medical practice. The drugs cost $84,000 for the recommended treatment lasting
12 weeks. States can obtain discounts, but prices still generally exceed $600 a pill. Hepatitis C kills more people than AIDS in the United States, nearly 20,000 people a year. The advisory council did not say how to pay for increased use of the new hepatitis drugs, but it did say that Medicaid and other public programs should disclose the prices they paid. And, it said, manufacturers should be required
to disclose the costs of developing and producing such drugs. Restrictions on access to hepatitis treatments are “unreasonable and discriminatory” and are “not supported by medical evidence,” the advisory council said in a letter to Obama. The federal government should require states to relax or eliminate the restrictions, which delay or deny treatment to low-income people on Medicaid, the panel said. ROBERT PEAR
In Brief F.B.I. to Investigate Guards at County Jail F.B.I. agents have started a civil rights investigation into guards’ use of force at a towering county jail in downtown Kansas City, Mo., federal officials said Tuesday. The local authorities have acknowledged four recent cases of “possible use of excessive force” by corrections officers at the jail, the Jackson County Detention Center, and ordered a broader, independent review of conditions there. The four recent incidents, said to have occurred from May to July, involved the jail’s Critical Incident Response Team, whose members have additional training and can be summoned to restrain unruly inmates. Four officers involved in those cases, all members of the elite team who worked the same shift, were no longer employed as of this week. County officials said there was no apparent racial pattern to the incidents. (NYT)
Judge Doesn’t Settle Redistricting Dispute A Leon County judge on Tuesday postponed a decision about Florida’s still incomplete congressional redistricting map after Republican legislative leaders failed to agree on how to redraw the boundaries. During a hearing, Judge Terry P. Lewis of Florida’s Second Circuit Court said he did not have the authority to resolve the map dispute without the approval of the Florida Supreme Court, which ruled in July that the current redistricting map was unconstitutional. The judge said he would send a request for guidance to the State Supreme Court on Wednesday. (NYT)
Cardinal Faces Drunken Driving Case Cardinal William Joseph Levada, a former archbishop of San Francisco, is due in Kona District Court in Hawaii on Sept. 24 after being arrested on suspicion of drunken driving last week. Levada was stopped while driving on the Big Island, the police said. Levada, 79, who was on vacation, was released from jail after posting $500 bail. In a statement, he said he regretted his error in judgment and intended to cooperate with the authorities. (AP)
BUSINESS
WEDNESDAY, AUGUST 26, 2015
THE MARKETS
Signs Now May Signal Risks to U.S. Economy For more than a year, signs pointing to an equity crisis were there. Awaiting the opening bell at the New York Stock Exchange. Suddenly, loans in relatively cheap dollars that financed real estate and consumption booms were no longer available and the ultimate result was a growth slowdown. For Albert Edwards, a strategist at Société Générale in London, what really confirmed in his mind that the ChiJUSTIN LANE/EUROPEAN PRESSPHOTO AGENCY nese growth engine over the last year in his view, has was sputtering to a halt was the been the relentless upward move government’s naked support of of the dollar against just about the country’s stock market buball emerging market currencies. ble. Among the interventions The dollar rally began in January were lending state entities mon2014, when the Fed signaled that ey to buy stocks and restricting shareholders from selling large it would raise interest rates. But the dollar’s strength positions. Before the market colagainst currencies like the Rus- lapsed, Chinese stocks reached a sian ruble, the Turkish lira and market capitalization of close to the Brazilian real began to gath- $10 trillion. “Once you encourage an equier steam a year ago. Veterans of past emerging-market booms ty bubble it will collapse — and and busts will tell you that the par- then you are really in trouble,” ty always ends when the dollar Edwards said. “This was utter takes off against these currencies. madness.”LANDON THOMAS Jr.
Turmoil Is Unlikely to Knock the Fed Off Course WASHINGTON — As markets quake and stock prices fall, investors increasingly are betting that the Federal Reserve will not raise interest rates this year. Their conclusion is a striking rejection of the Fed’s plans. Investors’ losses so far probably aren’t big enough to crimp growth, and officials have plenty of time to see what happens next. The Fed’s policy making committee doesn’t meet until next month, and it has meetings scheduled in October and December. The volatility of financial markets over the last few days contrasts with the stability of domestic economic growth over the last several years. Central bank officials have suggested repeatedly that they regard the growth as good enough.
Dennis P. Lockhart, president of the Federal Reserve Bank of Atlanta, noted some of the factors that are roiling markets, including the rise of the dollar, China’s currency devaluation and falling oil prices. But he said the Atlanta Fed expected the economy to continue its expansion. Janet L. Yellen, the Federal Reserve chairwoman, has said that the Fed wants to raise its benchmark rate slowly over the next several years, gradually reducing its stimulus campaign. The Fed has delayed the beginning of that process, as economic growth has fallen short of its expectations. But as recently as June, most of the Fed’s leadership indicated they planned to start raising rates this year. That plan faced skepticism
even before the recent market downturn. Inflation has remained sluggish since the Great Recession, even as job growth has strengthened. Some Fed officials cautioned that the central bank had not done enough to raise inflation toward its targeted 2 percent annual pace. Recent events have heightened those misgivings. The decline of oil prices and China’s latest economic stimulus may further damp inflation. The fall of stock prices also reflects concern among some investors about the health of the domestic economy. The share of Americans without jobs remains unusually high and wage growth remains weak, problems that a premature rate increase could worsen. BINYAMIN APPELBAUM
DJIA
NASDAQ
204.91 D 1.29%
D
15,666.44
S & P 500
19.76 0.44%
D
4,506.49
25.59 1.35%
1,867.62
E UROPE BRITAIN
GERMANY
FTSE 100
DAX
182.47 U 3.09%
479.69 U 4.97%
6,081.34
FRANCE
CAC 40 181.40 U 4.14%
10,128.12
4,564.86
ASI A/PACI F I C JAPAN
HONG KONG
CHINA
NIKKEI 225
HANG SENG
SHANGHAI
D
733.98 3.96%
U
17,806.70
153.39 0.72%
D
21,404.96
244.76 7.63%
2,965.15
AME R I CAS
U
CANADA
BRAZIL
TSX
BOVESPA
98.19 0.75%
208.38 U 0.47%
13,150.93
MEXICO
BOLSA 539.42 U 1.30%
44,544.85
42,010.89
COMMODI T I E S/ BO NDS
D
GOLD
10-YR. TREAS. CRUDE OIL YIELD
15.20
U
$1,138.20
0.07 2.08%
U
1.07 $39.31
FOREIGN EXCHANGE Fgn. currency in Dollars
Australia (Dollar) Bahrain (Dinar) Brazil (Real) Britain (Pound) Canada (Dollar) China (Yuan) Denmark (Krone) Dom. Rep. (Peso) Egypt (Pound) Europe (Euro) Hong Kong (Dollar) Japan (Yen) Mexico (Peso) Norway (Krone) Singapore (Dollar) So. Africa (Rand) So. Korea (Won) Sweden (Krona) Switzerland (Franc)
.7126 2.6511 .2765 1.5686 .7501 .1560 .1543 .0224 .1277 1.1492 .1290 .0084 .0581 .1216 .7118 .0759 .0008 .1195 1.0652
Dollars in fgn.currency
1.4033 .3772 3.6172 .6375 1.3331 6.4114 6.4810 44.5500 7.8300 .8702 7.7509 118.86 17.2015 8.2248 1.4048 13.1796 1189.9 8.3674 .9388
Source: Thomson Reuters
ONLINE: MORE PRICES AND ANALYSIS
➡
As investors scramble to make sense of the wild market swings in recent days, a number of financial experts argue that signs pointing to an equity crisis were there for all to see. The data points encompass stock market and credit bubbles in China, the strength of the dollar relative to emerging market currencies, a commodity rout and a sudden halt to global earnings growth. While it would have been impossible to predict the precise timing of the last week’s downturn, this array of economic and financial indicators led to an inescapable conclusion these analysts say: The United States economy would only be able to avoid for so long the deflationary forces that have taken root in China. And if the bull market had made it to April, it would have become the second-longest equity rally in United States history. The one common theme binding all these measures together is the risk that they pose to the economic recovery in the United States.But more and more analysts are pointing to problems in China and other markets as posing a real threat to the American economy. “The global G.D.P. pie is shrinking,” said Raoul Pal, who produces the Global Macro Investor, a monthly financial report. Of the hundreds of indicators that Pal follows, the most crucial
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Information on all United States stocks, plus bonds, mutual funds, commodities and foreign stocks along with analysis of industry sectors and stock indexes:
nytimes.com/markets
BUSINESS
China’s Party-Run Media Is Silent on Mayhem HONG KONG — After China’s stock markets crumpled, prompting a global sell-off, People’s Daily, the newspaper of the Chinese Communist Party, had other things on its mind. There was no mention of the market mayhem in Tueday’s newspaper. The silence continued Wednesday, when the paper again did not report on the stock market upheavals. It was a telling sign that China’s leaders were sticking to their habit of staying above the public fray. “My hunch would be that they’re really not about to stomach another wave of more open reporting by the Chinese media,” said David Bandurski, the website editor for the China Media Project, based at the University of Hong Kong. “This is an explosive economic story for China.” The home page of Xinhua, the state news agency, was highlighting a report about President Xi Jinping’s visit to Tibet in 1998, when he was a provincial official in eastern China. On Monday, the 7 p.m. news broadcast on China Central Television, the country’s main television network, also skipped mention of the plummet. China Digital Times, which collates leaked, confidential propaganda and censorship directives to Chinese journalists, reported that in June they were told to keep coverage of the stock markets
MOST ACTIVE, GAINERS AND LOSERS % Volume Stock (Ticker) Close Chg chg (100) 10 MOST ACTIVE Bankof (BAC) Apple (AAPL) SunEdi (SUNE) Micros (MSFT) Genera (GE) Intel (INTC) Facebo (FB) AT&T (T) FordMo (F) Pfizer (PFE)
15.26 103.74 8.80 40.47 23.27 25.87 83.00 31.80 12.90 31.34
◊0.03 +0.62 ◊1.93 ◊1.21 ◊0.60 ◊0.38 +0.91 ◊0.57 ◊0.29 ◊0.79
◊0.2 +0.6 ◊18.0 ◊2.9 ◊2.5 ◊1.4 +1.1 ◊1.8 ◊2.2 ◊2.5
1927258 1026308 720232 702691 607341 588787 518266 504330 472007 422588
% Volume Stock (Ticker) Close Chg chg (100)
JEROME FAVRE/EUROPEAN PRESSPHOTO AGENCY
A stockbroker in Hong Kong prints transactions Tuesday. strictly in line with official rules. Other newspapers and websites in China reported on the market turmoil, though often presenting China as a bystander in a wider global downturn. Securities Daily, a leading financial newspaper, urged the government to do more to prop up stock prices. “The slump in the stock markets is destroying what remains of investor confidence, and this problem is profoundly serious,” the paper said. But The Economic Information Daily, a newspaper issued by the Xinhua news agency, argued that the Chinese government should retreat from trying to shore up the stock markets. Instead, the paper said, policy makers must
focus on improving economic conditions, such as making it easier for businesses to attract loans and investment. Even as frazzled investors endured another day of market tumult on Tuesday, there was some light relief. Chinese news websites featured images of a massive sculpture in the coastal city of Xiamen that depicted a bull astride a bear. The sculpture was intended to symbolize upbeat market forces subduing bearish pessimism, according to the news reports. On the Internet, however, some Chinese commenters said the sculpture appeared to show something more intimate going on between the two beasts.CHRIS BUCKLEY
Turmoil in Puerto Rico Sinks Sewer Bond Issue Up against a deadline to reveal its plan to restructure its staggering debt, Puerto Rico has decided not to move ahead with a controversial proposal to borrow an additional $750 million to pay for improvements to its water and sewer authority. It attributed the decision, made late Monday, to the turmoil in the global markets. But the government also appears to have decided it could not borrow the money — by issuing bonds — at an affordable interest rate. A few days earlier, Puerto Rico petitioned the United States Supreme Court asking for the right to restructure its debt — which has reached $72 billion — under its quasi-bankruptcy law. Puerto Rico, a United States commonwealth, enacted the law last year because it has no access to the federal bankruptcy courts. But the
5
WEDNESDAY, AUGUST 26, 2015
law was found unconstitutional. Investors who at one time might have been potential buyers of the water and sewer bonds seemed taken aback by the island’s move to sell new bonds (and incur new debt) while also telling the Supreme Court that it had to restructure its old debt. “You could take it on face value and say, ‘Either they’re lying to investors about the bonds being payable, or lying to the Supreme Court about the bonds being unpayable,’ ” said Matt Fabian, a partner at Municipal Market Analytics, a financial research firm. “I see it as a blunder, ultimately, and not anything more heinous, but it really undermines their ability to negotiate.” Taken together, the steps demonstrate some of the confusion within the government as it faces a Sept. 1 deadline to outline
its restructuring plan. Eventually, Puerto Rican officials have expressed hopes of resolving their problems through a global debt-for-debt swap, in which the holders of the island’s bonds would turn those in and receive new bonds that would be worth less but be far more likely to be paid off. But many other things must happen first. “Their economy does need to grow, and I don’t disagree that their debt is too high to do all the things they need to do to make their economy grow and provide for the health and welfare of their citizens,” said Gerry Durr, senior municipal credit analyst at Wilmington Trust. “I think the only way this thing really gets solved is if there’s a strong, independent control board, and I don’t think Congress has the appetite to impose one.” (NYT)
10 TOP GAINERS Carver (CARV) Digita (DGLY) MesaRo (MTR) ProQR (PRQR) BestBu (BBY) Atmel (ATML) Tuesda (TUES) Allian (AFOP) Stande (SXI) PTCThe (PTCT)
7.20 7.46 10.09 14.94 32.95 7.41 6.89 17.72 77.56 35.75
+1.40 +1.35 +1.44 +1.78 +3.68 +0.82 +0.68 +1.64 +6.92 +3.05
+24.1 +22.1 +16.6 +13.5 +12.6 +12.4 +11.0 +10.2 +9.8 +9.3
665 5413 217 1115 210939 138442 34967 3908 1391 12982
% Volume Stock (Ticker) Close Chg chg (100) 10 TOP LOSERS Daktro (DAKT) Global (GLPW) SunEdi (SUNE) PepcoH (POM) TerraF (GLBL) Zynerb (ZYNE) DSW (DSW) Rayoni (RYAM) Mannin (MN) Evolen (EVH)
8.81 5.49 8.80 22.51 8.04 23.07 27.35 6.16 8.92 16.44
◊2.24 ◊1.26 ◊1.93 ◊4.44 ◊1.42 ◊3.73 ◊3.52 ◊0.74 ◊1.06 ◊1.93
◊20.3 ◊18.7 ◊18.0 ◊16.5 ◊15.0 ◊13.9 ◊11.4 ◊10.7 ◊10.6 ◊10.5
12437 4443 720232 264480 11249 643 80271 21693 1858 6426
Source: Thomson Reuters
Stocks on the Move Stocks that moved substantially or traded heavily Tuesday: Best Buy Co., up $3.68 to $32.95. The nation’s largest consumer electronics chain posted fiscal second-quarter results that handily beat analysts’ estimates. Exelon Corp., down $2.24 to $30.40. Regulators in the District of Columbia rejected the proposed merger of the power company with Pepco Holdings Inc. Medtronic PLC, down $1.03 to $69.88. The medical device maker will pay up to $458 million for a privately held company that is developing a heart valve replacement. DSW Inc., down $3.52 to $27.35. The footwear and accessories retailer reported lackluster second-quarter profit and its revenue fell short of Wall Street forecasts. The Boeing Co., down $1.70 to $125.49. The aircraft maker raised its outlook for demand in China over the next several decades as that country’s air travel market grows. SolarCity Corp., down 24 cents to $43.63. Chairman Elon Musk spent $5 million on just over 123,000 shares to increase his stake in the solar energy systems maker. (AP)
FOOD
WEDNESDAY, AUGUST 26, 2015 6
Small Food Businesses Tapping Into Changing Appetites Everyone knows someone who has dreamed of starting a food business. That next-door neighbor who thinks his chocolate chip cookies are better than Tate’s Bake Shop’s. The niece whose friends beg for her homemade hot sauce. It used to be that those dreams pretty much stayed dreams. Successful Mrs. Fieldses were few and far between. But a combination of factors — playing against the backdrop of a growing food obsession and concerns that time-honored food brands can be high in sugar, salt and fat — have changed all that. New companies are flourishing, encroaching on market share and gaining national distribution as shoppers reach for products that tout themselves as novel, local or containing better ingredients. Total sales are still dominated by big brands, but the investment bank Jefferies reports that the brands lost market share in 42 of 54 categories, from baby food to yogurt, over the last five years as new products gained. “This is a phenomenal time to be a food entrepreneur,” said Ryan Caldbeck, a co-founder and the chief executive of CircleUp. It typically invests in companies with $1 million to $10 million in revenue, like Twisted Cherries, Go Lo Foods and Smari Organics, an Icelandic yogurt business. CircleUp has raised $50 million for small food and beverage compa-
ELIZABETH LIPPMAN FOR THE NEW YORK TIMES
Lindsey Rosenberg went from a public relations job to working with her parents on Cherryvale Farms, a mix-in food start-up. nies since its founding in 2011. So much investment flowing into small food businesses worries Will Rosenzweig, the founding chief executive of Republic of Tea and an investor himself. He said too many small companies are spending too much time raising money and not enough time improving their businesses, which is a reason he helped found the Food Business School at the Culinary Institute of America. “There is a deep, rigorous and usually unappreciated need in the food business to determine whether something is a hobby or really a business,” he said. “There are a lot of people who have a family recipe who think, ‘Paul Newman started a business after sharing salad
dressing with a neighbor and suddenly had a $3 billion company.’ ” One small company Rosenzweig is watching is Cherryvale Farms, which he describes as “a 21st-century Betty Crocker.” Lindsey Rosenberg founded the company, which makes mixes for things like banana bread and brownies, in 2010, after her parents came home from a trip with a mix they had picked up that required the addition of just one ingredient. “It was kind of like Bisquick but better,” said her father, Michael Rosenberg. Lindsey Rosenberg saw the product and a light bulb clicked on. “I was doing entertainment P.R. in Hollywood — you know, celebrities and calls at 2 a.m. — and
Front Burner
HIROKO MASUIKE/THE NEW YORK TIMES
Chocolate Milk Infused With Subtle Flavors
Matcha, mint, hazelnut, lemon-basil and coconut are some of the subtle flavors that Kee Ling Tong, who owns the Kee’s Chocolates stores in SoHo and in the garment district, has infused in her refreshing chocolate milks, both semisweet and white. She uses milk from Fair Oaks Farms in Fair Oaks, Ind., as a base, thanks to a friend, and made an introduction: Susu and Kee’s Chocolate Milk, 3 ounces, $3; 6 ounces, $6, including a 50-cent deposit, at Kee’s Chocolates, 315 West 39th St., 212-9678088, and 80 Thompson St., 212-334-3284, keeschocolates.com. (NYT)
Hojiblanca Olives Stuffed With Figs And Pineapple These pitted green olives, caramelized and treated to stuffings of pineapple or figs, lose their saline, bitter swagger and turn mellow for a pleasing change of pace. Fruit is far less common than nuts, cheese, anchovies and pimentos in olives. These hojiblanca olives from Granada, Spain, add an elegant touch to a cheese board. They are sold by Oil & Vinegar, a global chain of franchised stores based in the Netherlands: Olives Stuffed With Pineapple, Olives Stuffed With Figs, $7.95 for 10.58 ounces, oilandvinegarusa. com. (NYT)
was, what should I say? Burnt out,” she said. She left her job and six weeks later had a prototype and was in production, using a Hobart mixer in a commercial kitchen space she rented from 9 p.m. to 1 a.m. Her mother, Marsha, helped package the mixes on the family’s dining room table. The boxes were designed by her dad, who is a technology marketing consultant. The first retailer to pick up the mixes was New Leaf Community Markets, a small natural foods grocery chain. Then Cherryvale moved into 70 Whole Foods stores. Today, the mixes are made in a commercial kitchen and packaged in a warehouse (“I got forklift-certified,” Lindsey Rosenberg said). In March, Cherryvale shipped the first order that Rosenberg had not touched. The mixes are now in almost 1,200 stores nationwide, but so far, the company has not taken on any outside investment. “We are bootstrapping at this point, though I’d call the boots cement shoes,” she said jokingly. Cherryvale’s growth meant moving away from all-organic ingredients. The mixes are now vegan, thanks to a less expensive plant-based substitute for the powdered eggs she had been using. “As we grew, our margins were shrinking, and we decided that our customers cared more about other things,” she said. STEPHANIE STROM
The Layered History Of Vermouth’s Revival I was 12 years old the first time my father served me a cocktail at home; he wanted me to understand the effects of alcohol. It was dry vermouth on the rocks with a twist. The recipe for the simple Vermouth Cocktail in “Vermouth: The Revival of the Spirit That Created America’s Cocktail Culture,” by Adam Ford, gave me a Proustian moment made timely by vermouth’s popularity in today’s cocktail culture. Ford, who owns Atsby Vermouth in New York, takes the reader through the textured history of wine fortified with herbs and spices, from ancient China forward. There are many recipes, including some using his own products: “Vermouth: The Revival of the Spirit That Created America’s Cocktail Culture” (Countryman Press, $24.95). (NYT)
HOMETOWN HERO
Brierale Scott
Aviation boatswain’s mate airman
DEPT/DIV: Air/v-1 HOMETOWN: Houston, Texas WHY SHE CHOSE THE NAVY:
I wanted to travel and try new things.
HER FAVORITE PART OF THE JOB:
Working on the flight deck and seeing new
places.
PROUDEST NAVY MOMENT: Visiting London. SHOUT OUT: AN Jeffries and Air Department.
FUN
FACT
I’m a black belt in karate.
HOMETOWN HERO
Gary Seibel senior chief logistics specialist
DEPT/DIV:
SUPPLY/S6
HOMETOWN: Las Cruces, New Mexico WHY HE CHOSE THE NAVY: My father was in the Navy and I wanted to be like him.
HIS FAVORITE PART OF THE JOB: Traveling around the world. PROUDEST NAVY MOMENT: When I made chief. SHOUT OUT: All of Supply department, especially S-6. They’ve always got my back.
FUN
FACT
I look serious, but I’m really a joker.
W
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