P2JW166000-6-A00100-1--------XA
THURSDAY, JUNE 15, 2017 ~ VOL. CCLXIX NO. 138
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Business & Finance
T
he Fed said it would
raise rates by a quarter
point and spelled out in
greater detail its plans to
start shrinking its portfolio
of bonds and other assets. A1
 The dollar and Treasury
yields pared declines and
major U.S. stock indexes
ended mixed after the Fed’s
announcement. B12, B13, B14
 Uber is taking the unusual step of handing control
to a group of 14 executives
while its CEO is on leave. B1
 Avon’s CEO is expected
to step down after her effort to turn around the cosmetics seller faltered. B1
 Mattel is cutting its dividend by over half as the toy
maker looks to modernize
its brands and expand. B1
 GE Power’s boss is leaving after losing the succession race for Immelt’s job. B5
 GM will extend the summer shutdown at certain U.S.
plants due to slumping sales
and bloated inventory. B3
 Europe’s air-safety chief
criticized a U.S. plan to expand a laptop ban, citing the
risk of batteries in cargo. B4
World-Wide
 A gunman opened fire
on a group of Republican
lawmakers during a morning baseball practice, injuring the House majority
whip and three others. A1
 The shooter, who was
killed by police, was an Illinois
man who belonged to several
anti-Republican groups. A4
 Trump’s firing of Comey is
now a subject of the Mueller
probe, which has expanded to
include whether the president
obstructed justice, a person familiar with the matter said. A5
 The Senate Judiciary
panel plans to open an inquiry
into the circumstances surrounding Comey’s removal. A5
 Tillerson said the U.S.
would support peace efforts
by Russia and Ukraine outside of the Minsk accords. A6
 Five Michigan officials
were charged with involuntary manslaughter over
Flint’s lead-tainted water. A3
 The U.S. and Qatar signed
a preliminary deal for the
sale of dozens of Boeing F-15
fighters to the Gulf nation. A8
 An Iranian Navy vessel
confronted three American
ships and pointed a laser at
a Marine Corps helicopter. A9
 The number of people admitted to the U.S. from the six
countries in Trump’s travel
ban has fallen dramatically. A4
 Federal prosecutors have
filed charges against members of Erdogan’s security detail over a melee during the
Turkish leader’s U.S. visit. A5
 States are forecast to lift
spending by only 1% in the
next fiscal year as they grapple with weak revenue. A5
CONTENTS
Business News.. B3,7
Capital Account.... A2
Crossword.............. A14
Heard on Street.. B13
Journal Report.. R1-6
Life & Arts........ A11,14
Markets............. B13-14
Opinion.............. A15-17
Sports........................ A12
Technology............... B4
U.S. News............. A2-5
Weather................... A14
World News....... A6-9
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
Republican Sen. Jeff Flake, right, of Arizona hugs teammate Rep. Chuck Fleischmann of Tennessee after Wednesday morning’s shooting.
GOP Lawmakers Targeted
In Ballfield Shooting Spree
ALEXANDRIA, Va.—A gunman with a history of criticizing
President Donald Trump and
GOP policies opened fire on Republican congressmen gathered
By Peter Nicholas,
Kristina Peterson
and Gordon Lubold
at a baseball practice Wednesday morning, shooting four in
an attack that stunned the capital and prompted both parties
to set aside partisan differences.
Rep. Steve Scalise of Louisiana, who is the House majority
whip, was shot once in the left
Oil Glut
Exposes
OPEC’s
Limits
hip and was in critical condition
after multiple surgical procedures, a Washington hospital
said. A congressional aide, a
lobbyist and a Capitol Police officer were also shot, officials
said. Another Capitol Police officer and another congressman
sustained minor injuries during
the ambush.
Officials identified the suspected gunman as James T.
Hodgkinson, a 66-year-old
home inspector who had had
run-ins with neighbors in an Illinois suburb of St. Louis. Mr.
Hodgkinson, who had one handgun and one rifle, was killed by
Mueller Inquiry
Turns to Trump
President’s firing of FBI
director is now subject
of special counsel’s
investigation.................. A5
police, FBI Special Agent in
Charge Timothy Slater said.
While the officials didn’t ascribe a motive, letters and online posts in Mr. Hodgkinson’s
name were critical of the Republican president. Mr. Hodgkinson was taken to a hospital
Inferno Engulfs London High-Rise
By Summer Said,
Georgi Kantchev
and
Neanda Salvaterra
 Saudi divide slows Aramco’s
initial public offering.............. B1
A massive blaze destroyed a west London apartment building, which
residents had previously described as a fire hazard. The death toll
stood at 12 Wednesday, though police said they expect it to rise. A6
INSIDE
WASHINGTON—The Federal
Reserve said it would raise
short-term interest rates and
spelled out in greater detail its
plans to start shrinking its
$4.5 trillion portfolio of bonds
and other assets this year.
The moves on Wednesday
mark the latest test of the
economy’s ability to grow on
its own as the central bank dials back the unprecedented
stimulus measures it unleashed through successive
bursts of bond purchases after
the 2008 financial crisis.
“The economy is doing very
well, is showing resilience,”
said Fed Chairwoman Janet
Yellen at a news conference
following the Fed’s two-day
policy meeting.
The Fed said it would increase its benchmark federalfunds rate on Thursday by a
quarter percentage point to a
range between 1% and 1.25%
and penciled in one more inPlease see FED page A2
Upward Bound
Federal-funds rate target
5%
4
Sept. 18, 2007
Fed announces
first of many
rate cuts
3
Recession
June 14
Second raise of
2017 announced
2
Dec. 16, 2015
Fed announces
first rate raise
1
0
2007
’10
’15
’17
Source: Federal Reserve
THE WALL STREET JOURNAL.
 Greg Ip: Lousy raise? It might
not get better........................... A2
Chinese Tycoon Held
In Corruption Probe
SHANGHAI—A highflying
Chinese business tycoon
whose company owns New
York’s Waldorf Astoria hotel
was detained in China late last
week by authorities who are
investigating corruption and
trying to curb risky financial
behavior.
Wu Xiaohui, who transformed Anbang Insurance
Group from a provincial auto
insurer into a global deal
maker, was detained by a special investigative unit looking
at economic crimes, people familiar with the matter said.
The probe centers on whether
Mr. Wu was involved in bribery and other economic crimes
at Anbang, these people said.
OPEC is running smack into
a wall of crude-oil storage.
The global oil glut is proving immune to the curbs set
by the Organization of the Petroleum Exporting Countries
and its big-producer allies like
Russia, fueling the idea that
output caps withholding almost 2% of world crude supply
were a miscalculation.
Brent, the international oil
benchmark, and West Texas Intermediate, the U.S. price setter,
fell almost 4% to their lowest
levels of 2017 on Wednesday after the release of fresh data
about inventories. Overall,
prices are down more than 17%
since the beginning of the year.
In the U.S., the Energy Information Administration said
Wednesday that crude stockpiles fell last week by 1.7 million barrels, less than the 2.6
million drop forecast by a Wall
Street Journal survey. At the
same time, gasoline inventories rose by 2.1 million barrels,
compared with the survey’s
expectation of a decline of
700,000, underlining worries
about the oversupply extending to crude oil’s products.
Oil stockpiles in the Organization for Economic Cooperation and Development—a club
of 35 countries with industrialized economies—rose by 18.6
million barrels in April and
were higher than they were
when OPEC agreed to its cut
late last year, said the International Energy Agency, a Parisbased group that advises governments on energy trends.
Please see OIL page A10
and died from multiple gunshot
wounds, Mr. Slater said.
The extent of Mr. Scalise’s
wound only became apparent
late Wednesday, when MedStar
Washington Hospital Center
said in a statement that the bullet caused extensive internal
damage and that he had undergone two surgical procedures
and was expected to undergo
more.
The shooting, which pierced
a quiet suburban neighborhood
outside Washington just after 7
a.m., was the first time in more
than 60 years that multiple U.S.
Please see ATTACK page A4
BY JAMES T. AREDDY
WILL OLIVER/EUROPEAN PRESSPHOTO AGENCY
 Aramco’s IPO could be
slowed by a rift between
the Saudi royal court and
oil company executives over
where to list the shares. B1
YEN 109.58
BY NICK TIMIRAOS
SHAWN THEW/EUROPEAN PRESSPHOTO AGENCY
 The oil glut is proving immune to OPEC’s output caps.
Crude prices fell to their lowest level of 2017 after the
release of inventory data. A1
EURO $1.1219
Fed Lifts
Rates,
Readies
Asset Cuts
What’s
News
 The Chinese tycoon who
transformed Anbang Insurance was detained by a special investigative unit looking at economic crimes. A1
HHHH $3.00
WSJ.com
Politically connected tycoons such as Mr. Wu, who
has been married to a granddaughter of former leader
Deng Xiaoping, have become a
focus for China’s leaders as
the Communist Party gets set
to hand President Xi Jinping a
second five-year mandate at a
high-level conclave this fall.
Mr. Xi’s political standing depends in part on party views
of his signature anticorruption
campaign, now nearly five
years old.
The investigation has been
under way for months but is
still in its early stages, and
doesn’t mean that charges will
be brought, said the people familiar with the matter.
In a statement Wednesday,
Please see CHINA page A10
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