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Good morning. Greetings from Laguna Beach, Calif., where our WSJ Tech D.Live conference continues. Yesterday, I interviewed Instagram co-founder Kevin Systrom, who recently stepped down as CEO, about the challenges facing social media and what’s in store for him next. John Krafcik, CEO of Waymo, told us that the Alphabet unit plans to launch a paid driverless car service in the coming months. And personal-tech columnist Joanna Stern “bumped into” former Microsoft CEO Steve Ballmer in the WSJ elevator. Join us today for our final day of the conference, as we speak with Aileen Lee, founder and managing partner of Cowboy Ventures, as well as Bumble founder and CEO Whitney Wolfe Herd and others. Follow live updates from the D.Live conference as leaders and luminaries from the worlds of tech, entertainment and media discuss our digital future. —Matt Murray, editor in chief In today’s edition, President Trump considers high-level staff changes, why Amazon picked New York and northern Virginia, a provisional Brexit deal, and more. |
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President Trump is considering high-level staff changes as the West Wing prepares for his next two years in office. The discussions include potential replacements for White House Chief of Staff John Kelly. The first to go is expected to be the deputy national security adviser, Mira Ricardel, who has clashed with first lady Melania Trump. The president has already decided to remove Ms. Ricardel, the top deputy for national security adviser John Bolton; the first lady’s office issued a statement yesterday calling for her dismissal. Mr. Trump is also leaning toward replacing Homeland Security Secretary Kirstjen Nielsen, a close ally of Mr. Kelly. Meanwhile, Maryland asked a federal judge to bar Matthew Whitaker from serving as acting attorney general, the first of what may be a series of court challenges to his appointment. Separately, Mr. Trump nominated retired four-star Army Gen. John Abizaid to be ambassador to Saudi Arabia. Elsewhere in Washington, House Majority Leader Kevin McCarthy will likely be elected Republicans’ minority leader today, ending a power struggle that has simmered for months. Follow the story: Subscribe to our Capital Journal newsletter, and visit WSJ.com today for updates. |
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Amazon said yesterday that New York City and northern Virginia will be the homes for its two new headquarters. The announcement concludes a contest that lasted more than a year, began with 238 candidates and ended with a split of its so-called HQ2. For months, cities vied for Amazon’s second headquarters even as some executives were realizing that no single place would fulfill its requirements. Here’s how Amazon picked HQ2―and jilted dozens of cities. New York and northern Virginia each offer key advantages that factored into Amazon’s HQ2 decision. Some critics say Amazon’s deal doesn’t deliver for New Yorkers. Amazon and Alphabet’s Google are planning to recruit thousands of employees in New York City, pitting the two behemoths against one another and other businesses. |
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U.S. oil prices sank deeper into a bear market yesterday. They posted their steepest fall in more than three years and a record 12th consecutive day of declines, as fears of oversupply and weakening demand gripped the market. West Texas Intermediate for December delivery settled 7.1% lower at $55.69 a barrel on the New York Mercantile Exchange, while Brent crude was down 6.6% at $65.47, entering a bear market. Oil prices edged up today; U.S. crude was recently 0.7% higher. OPEC said yesterday that crude production from the cartel and Russia continued to climb in October. Meanwhile, investors are bracing for continued gains in natural-gas prices this winter, a development that could pinch U.S. consumers who use it for heating. A sudden change in weather forecasts has pushed natural-gas futures to their highest level since November 2014. |
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Negotiators for Britain and the EU yesterday hammered out a draft Brexit deal that British Prime Minister Theresa May is set to put before her deeply divided cabinet today. Mrs. May faces the task of uniting her ministers behind the proposal, then selling the deal to Parliament. Failure could lead to her being unseated by her party or forced into calling new elections. |
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From reporter Max Colchester: Members of the British cabinet will be digesting hundreds of pages of dense legal text ahead of a crunch meeting today. The key issue is whether this deal allows the U.K. to fully break away from the European Union. If ministers are satisfied it does, then the real battle begins: getting it ratified by Britain’s division-ridden Parliament. The Brexit process isn’t over yet. |
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The departure of a top Wells Fargo executive shows the chasm between the bank and regulators. A month ago, Hope Hardison was a top lieutenant to CEO Timothy Sloan, playing a major role in the cleanup of the bank’s sales scandal. Today, she’s on leave from her job as the bank’s chief administrative officer following a rare rebuke from one of its key regulators. From reporter Emily Glazer: The Office of the Comptroller of the Currency has sent a clear message: It still isn’t happy with Wells Fargo, which continues to deal with a range of problems. The regulator presented two executives—Ms. Hardison and David Julian—with so-called 15-day letters, named for the deadline for a response, though extensions are sometimes given. They face possible permanent or temporary bans from the banking industry and civil fines, people familiar with the matter said. |
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The Trump administration is pushing for stricter limits on pollution from commercial trucks, a rarity from an administration that has prioritized deregulation. Leaders at the Environmental Protection Agency say the rules, largely untouched for nearly 20 years, are due for an update. This initiative targets smog-causing nitrogen oxide, whose largest source in the U.S. is highway driving. It comes as California regulators work toward a new ultralow standard for the pollutant from trucks. Many manufacturers and fleets say they prefer a national standard. |
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What We’re Following | | Alameda County Sheriff’s Office coroners searched for victims in Paradise, Calif., Monday after the Camp Fire tore through the region. PHOTO: JOSH EDELSON/AGENCE FRANCE-PRESSE/GETTY IMAGES |
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Fire Watch: Firefighters corralled one of the major blazes burning in Southern California, as the search expanded for more victims of the inferno to the north. Together, the fires have claimed at least 50 lives. Boeing Scrutiny: U.S. aviation regulators, responding to last month’s Lion Air jet crash, launched a high-priority review of the safety analyses Boeing has performed over the years. It is part of the overall investigation into the crash. CNN v. Trump: The news network filed a lawsuit against Mr. Trump and his administration seeking to reinstate the credentials of Jim Acosta, banned from the White House after a clash with the president. A federal judge could soon decide whether constitutional rights were violated. |
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Trending Stories at WSJ.com Starbucks plans to lay off approximately 5% of its global corporate workforce. (Read) Egypt has mediated a cease-fire between Hamas and Israel in Gaza, as an intense exchange of fire between the two sides halted yesterday. (Read) |
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What Else We’re Reading For the University of Minnesota, the arrest of Chinese tycoon Richard Liu—founder and chief of JD.com—is shining a light, again, on sexual assault. (New York Times) Greek archaelogists have unearthed remnants of a settlement confirming the location of an ancient city thought to have been founded by survivors of the Trojan War thousands of years ago. (Reuters) |
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Today’s Question and Answer In response to our question about Amazon’s choice of New York City and northern Virginia for its new headquarters: Mauricio R. Salvador from New York said: “The choice of Long Island City, 15 minutes from Manhattan, is masterful. It has the feel of a medium city and the advantages of a great metropolis.” Gemma Bell of New York shared: “I’m obviously very excited about the investment and new amenities that are undoubtedly going to follow Amazon into my neighborhood. In my opinion, there’s a particularly strong need for better shopping facilities, and I hope that with 25,000 new commuters, there’ll be more appetite for strengthening LIC’s retail presence. Part of me is, however, concerned about the burden that will be put on local infrastructure, and about the area losing its character. Long Island City is a traditionally industrial neighborhood, and home to a lot of artists (my husband and several close friends included). I worry that more tall glass buildings with high rents will push out the people that make this area what it is to us.” Joe Santangelo of Florida said: “It hardly seems fair: Amazon investing billions in two of the nation’s richest metro areas. Why not spread the wealth around? We would have welcomed AMZ in Florida.” Pat Draughon of Texas wrote: “Amazon’s decision is a whiff. If you look at a political (red/blue) map of the U.S., you will see that the country is being polarized between affluent coastal cities and everyone one else. But Amazon is a business and not a political party. Amazon’s decision will create an unhealthy feedback loop within the company and a disconnect with everyone else they touch, like customers. It will drive the wedge just a little deeper, without a clear business advantage. Republicans and Amazon shareholders buy sneakers, too.” Question for tomorrow’s 10-Point: What are your thoughts on the potential White House revamp? Email us your comments, which we may edit before publication, to 10point@wsj.com, and make sure to include your name and location. |
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| The 10-Point was the name given to the news column that runs on the front page of The Wall Street Journal. Today’s newsletter was curated and edited by Eleanor Miller (eleanor.miller@wsj.com) in collaboration with Editor in Chief Matt Murray. Let us know what you think by replying to this email. Editor’s note: The 10-Point is now a WSJ member benefit. If you receive our flagship newsletter and are not yet a member, we’ll continue sending it to you for now. To ensure you don’t miss out, we invite you to join us and enjoy the full breadth of scoops, analysis and great storytelling from our journalists around the globe. |
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