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TODAY IN PERSONAL JOURNAL

When Zoos Become High-RisesPLUSPLUS Tricks of the Corporate Climber

CONTENTSBusiness Tech..............B5Careers..............................B7Corporate News.....B2-4Global Finance.............C3Heard on Street.......C14Home & Digital.......D1-3

In the Markets.............C4Leisure & Arts........D5-6Opinion.....................A11-13Sports...........................D7-8U.S. News...................A2-5Weather Watch..........B8World News.............A6-9

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What’sNews

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World-Widen Afghan presidential can-didate Abdullah Abdullahclaimed victory in defianceof preliminary vote resultsand considered forming hisown government. A1n Palestinian militants inGaza unleashed far-reachingrocket attacks on Israel, whichsaid it was launching a pro-tracted assault on Hamas. A1n Obama is seeking $3.7billion in funding and legalchanges to stem the surgein children and families ille-gally entering the U.S. A1nMedicare allowed $1.7 bil-lion in 2010 payments to labsfor claims that raised red flags,the latest example of howthe program is susceptible tomisspending and abuse. A3n Ukrainian leaders agreedon a plan for laying siege tothe pro-Russia rebel strong-hold of Donetsk and calledfor militants to disarm. A6n Holder urged U.S. allies totoughen their strategy againstthe risk of Westerners trav-eling to fight in Syria and re-turning home radicalized. A6n Iran nuclear talks hit afresh hurdle when the coun-try said it needs significantlymore enrichment capacity. A7n Abe sought to reassureallies of Japan’s commitmentto pacifism as he began todelay a shift that would giveits military more power. A8nMilitants stormed Soma-lia’s presidential palace, kill-ing at least 12 people. A6n Republicans pickedCleveland to host their 2016nominating convention. A4

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C itigroup and the JusticeDepartment are close to a

deal for the bank to pay about$7 billion to settle allegations itsold shoddy mortgages in therun-up to the financial crisis. C1n A jury acquitted RenganRajaratnam of taking part in hisolder brother’s insider-tradingconspiracy, ending a winningstreak by prosecutors. C1n Hachette rejected an Am-azon proposal to let authorskeep all of the revenue fromdigital-book sales while thefirms negotiate a contract. A1n U.S. stocks tumbled, withthe Dow losing 117.59 points to16906.62, as caution reignedahead of earnings season. C4n Alcoa returned to profit-ability as restructuringcharges fell and cost cuttinghelped the bottom line. B1n Prominent U.S. investorshave taken big stakes in Sam-sung recently, putting pres-sure on the tech giant to re-turn cash to shareholders. B1n Asia’s central banks havebeen buying foreign curren-cies at a rapid clip in a bid tofend off the impact of a waveof cheap global capital. C1n J.P. Morgan is boostingefforts to cut expenses asthe bank continues to grap-ple with sluggish revenue. C3n AbbVie raised its offer forShire to more than $51 billion,again trying to bring the firmto the negotiating table. B3n Finra is examining howretail brokers route customerorders amid concerns aboutpossible conflicts of interest. C3

Business&Finance

Ultimate Geeks: Frisbee EnthusiastsTry to Play a Numbers Game

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Fans of Sport Toss Around DataAnd Scrutinize Video for Statistical Edge

Ultimate Fris-bee is a sport thatSean Childerswants to game.

Mr. Childers, a25-year-old lawclerk, learned incollege how toplay Ultimate Fris-bee. He liked it somuch that hestuck with it inlaw school andstill makes time toplay on weekends.

Now, to geteven better, he’s on a new teamwith a different aim: Mr. Childersis trying to put a statistical spinon Ultimate Frisbee.

It’s a common goal in sportsobsessed with numbers. Profes-sional baseball and basketball

teams, in fact,have been over-run by geekssince the 2003publication of theMichael Lewisbook “Money-ball.”

As it turns out,some UltimateFrisbee fanaticsare taking a pagefrom those play-books, andthey’re giving sta-tistical analysis awhirl. “Ultimateis not profoundly

different from any other sportthat’s currently using stats,” saidMilo Snyder, a 25-year-old dataanalyst who is a co-captain of thePride of New York club team.

Ultimate Frisbee does havePleaseturntopageA10

BY BEN COHENAmazon.com Inc. appealed di-

rectly to authors in a bitter pub-lishing dispute, hoping to gainhearts and minds—and lever-age—against Hachette BookGroup in talks that could affecte-book pricing industrywide.

The Web retailing giant hasproposed letting Hachette au-thors keep 100% of the revenuefrom their digital-book saleswhile the online retailer andpublisher continue tense negotia-tions over a new e-book contract.

Hachette quickly rejected theproposal.

Amazon advanced the idea ina letter sent in recent days to ahandful of authors and agents.Under the proposal, Amazon andHachette, a unit of LagardèreSCA, would each give up theirshare of e-book sales, with theauthors getting all of the reve-nue.

Amazon is pushing for a

greater share of e-book revenueand lower e-book prices. Its ne-gotiation with Hachette hasturned into a messy, public bat-tle over the future of the bookindustry. As part of its negotiat-ing tactics, Amazon has removedthe preorder button on comingHachette titles, delayed ship-ments of some Hachette booksand reduced the discount offeredon some Hachette books.

The retailer’s latest proposalis an effort to win back the sup-port of Hachette authors whosay they have unfairly becomecollateral damage in the negotia-tion. Amazon indicated in theletter that it hopes the move willspeed up the talks.

Hachette on Tuesday after-noon indicated it wouldn’t ac-cept the idea. The publishersaid, “Amazon has just sent us abrief proposal. We invite Ama-zon to withdraw the sanctionsthey have unilaterally imposed,

Pleaseturntothenextpage

BY JEFFREY A. TRACHTENBERG

Amazon Dangles OfferIn Battle With Hachette

Foreign BuyersDrive Up PricesOf U.S. Homes

Note: Measured April ’13 to March ’14

Source: National Association of RealtorsThe Wall Street Journal

Share offoreign

purchasesMedian homeprice

Median pricefor all homes

CANADA

CHINA

MEXICO

U.K.

INDIA

19%

16%

9%

5%

5%

$199,575

$212,500

$523,148

$141,071

$350,000

$342,857

Home buyers from outside the U.S.have pushed up prices, withChinese buyers leading the way. A2

WASHINGTON—President Ba-rack Obama is seeking $3.7 bil-lion in funding and legal changesto stem the surge in children andfamilies illegally entering theU.S., creating new tensionswithin his party as he works toconfront a crisis that is over-whelming the government’s abil-ity to hold young migrants.

The request he sent Tuesdayto Congress includes money fornew detention facilities, over-

time pay for Border Patrolagents, more immigration judgesto process cases and aid to helpCentral American countries repa-triate the people sent home.

Lawmakers in both parties ap-peared open to the request,though the trip through Con-gress is likely to be complicated.

Some Republicans said thefunding should be offset byspending cuts to other programs,which the White House saidwasn’t necessary for an emer-gency situation.

House Appropriations Com-

mittee Chairman Hal Rogers (R.,Ky.), whose committee will con-sider the request, didn’t indicatewhether he supports the plan butsaid: “Plainly, the situation formany of these unaccompaniedchildren is extremely dire, andthe United States has both a se-curity and a moral obligation tohelp solve the crisis at hand.”

Congressional Democrats ex-pressed tentative support, andSenate Majority Leader HarryReid of Nevada said he foreseesapproving the request beforelawmakers leave for their August

break. But the proposal faces po-tential complications, as advo-cates for immigrants, who tradi-tionally support the president,oppose its heavy spending onnew detention facilities.

Another potential complica-tion is Mr. Obama’s proposal tochange a deportation measure—signed into law in 2008 by Presi-dent George W. Bush—so thatchildren who arrive alone can besent home more quickly. Thatlaw, passed by both houses ofCongress without opposition

PleaseturntopageA4

BY LAURA MECKLERAND COLLEEN MCCAIN NELSON

Obama Seeks Surge in Border Funding

Rout by Germany Ends Brazil’s World Cup Dreams

TEL AVIV—Palestinian mili-tants in the Gaza Strip un-leashed their most far-reachingrocket attack ever on major Is-raeli population centers, as Is-rael said it was launching a pro-tracted assault on the territory’sIslamist rulers.

Warplanes hit 150 purportedmilitant sites on Tuesday aloneand the Israeli government au-thorized the call-up of some40,000 army reservists, mobiliz-ing for the third large-scale mili-tary operation against Gaza infive years.

Militants launched more than150 rockets from Gaza, hittingfarther north than ever beforeand targeting at least seven ma-jor cities in a single day for thefirst time. Three hit Jerusalem,the first time rockets from Gazareached the city.

Two rockets were interceptedover Tel Aviv, 40 miles north ofGaza, by the Iron Dome missileshield. The rockets reached asfar north as the city of Hadera,73 miles from Gaza. They alsohit the Tel Aviv suburb of RishonLezion and the southern cities ofBeersheva, Ashdod and Ash-kelon. They set off air raid sirenseven in distant northern Israel.

Israeli officials said the gov-ernment was “removing thegloves” against Hamas in retalia-tion for the rocket fire.

Libby Weiss, an Israeli mili-tary spokeswoman, said thearmy was poised for a pro-tracted assault on Hamas. Twoinfantry divisions have been de-ployed to the border region, sug-gesting preparations for aground incursion.

“There’s understanding thatthis isn’t going to be a short mis-sion,” Ms. Weiss said. “It’s notgoing to be one night and done.

In southern Israel, whichPleaseturntopageA7

BY JOSHUA MITNICK

Hamas,IsraelEscalateAttacks

FACES OF DEFEAT: Brazilian fans react to their team’s stunning 7-1 loss to Germany in Tuesday’s World Cup semifinal. A9, D7, D8

Afghan presidential candidateAbdullah Abdullah claimed vic-tory in defiance of preliminaryvote results showing he lost andconsidered forming his own gov-ernment, despite U.S. warningsthat the country risked losing fi-nancial and security aid.

“There is no doubt we are thewinners of this election,”Mr. Ab-dullah told supporters during aboisterous rally in Kabul. “We willnot allow a fraudulent govern-ment for a day.”

Before the rally, President Ba-

rack Obama called Mr. Abdullahand urged him to await a probe ofballot-stuffing allegations, tellinghim that “there is no justificationfor resorting to violent or extra-constitutional measures,” saidWhite House spokeswoman Cait-lin Hayden. “We’ve been clear

that any such move would costAfghanistan the financial and se-curity assistance of the UnitedStates,” she added.

Mr. Abdullah said he would de-cide within a few days whether toform his own administration, astatement his supporters jeeredbecause they wanted him to sayhe was taking power immediately.

The deepening election disputeover who will replace PresidentHamid Karzai has already raisedthe specter of territorial fragmen-tation.

One of Mr. Abdullah’s closestallies, former warlord and Balkhprovince Gov. Atta MohammadNoor, declared he would only rec-ognize an Abdullah-led govern-ment in his northern province.

“From now on I declare a legit-imate government under Dr. Ab-dullah Abdullah and I am obligedto obey him,” said Gov. Atta.

The presidential election wassupposed to mark Afghanistan’stransition to full-fledged sover-eignty as U.S. and internationaltroops depart the country at the

end of this year. But so far, it hasproved to be dangerously desta-bilizing, raising fears of a returnto civil war. The crisis comes asthe Taliban insurgency advances,Afghanistan’s economy stalls andinternational aid shrinks.

The campaign team of Mr. Ab-dullah’s rival, Ashraf Ghani, re-jected allegations that large-scalefraud happened on its behalf.

Mr. Abdullah’s strategy imper-iled support from the U.S., whichhas invested hundreds of billions

PleaseturntopageA10

By Margherita Stancatiand Nathan Hodge

in Kabul andDion Nissenbaumin Washington

Afghan Crisis Risks Splitting CountryPresidential Candidate Claims Victory, Defying Early Vote Count, and Considers Forming OwnGovernment

AgenceFrance-Presse/Getty

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