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VOL. CCLXIV NO. 28 * * * * * * *

SATURDAY/SUNDAY, AUGUST 2 - 3, 2014

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WEEKEND

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n U.S. businesses addedjobs at a sturdy pace in July,extending the most robuststretch of hiring since beforethe recession. A1, A2n The Fed’s favored mea-sure of inflation grew 1.6% inJune, below its 2% target fora 26th consecutive month. A2n The S&P, down 0.3% Fri-day, suffered its worst weeklyloss in two years. The Dowfell 0.4% to 16493.37. B1n P&G will shedmore thanhalf its brands as the con-sumer-products company triesto speed up its growth. A1n Twitter said 14% of itsusers never log in directlyto its website or mobile appand don’t see its ads. B1n U.S. auto demand roaredahead in July with top automakers posting a 9.1% salesincrease over last year. B3nBerkshire Hathaway posteda 41% jump in quarterly profiton gains at its railroad, energyand other businesses. B2n Three banks that soughta piece of a Chinese chemicalcompany’s expected IPOhired its chief’s daughter. A1nMicrosoft sued Samsung,claiming its Korean rival vio-lated a patent-licensing con-tract related to Android oper-ating system technology. B11

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InsideNOONAN A11

OutOf Many,Two?

Israeli forces spreadacross Gaza’s southern-most city in search of amissing infantry officer whowas presumed captured bymilitants Friday, as Obamablamed Hamas for the quickbreakdown of a U.S.-bro-kered cease-fire. A6n Two Americans infectedwith Ebola in Liberia willbe transferred to an At-lanta hospital. A1n Ukraine said at least 10troops were killed in an am-bush by pro-Russian separat-ists not far from the MalaysiaAirlines Flight 17 crash site. A7n The FAA banned U.S. air-lines from flying over Iraqbelow 30,000 feet amidgrowing concern aboutflights near conflict zones. A6nObama said a classified re-port that will be made publicsoon shows the U.S. torturedsome terror suspects. A3nUganda’s constitutionalcourt nullified a contentiousantigay law, enacted earlierthis year, on a technicality. A5n A New York City man’sdeath in July was caused inpart by a police officer’schokehold, the medical ex-aminer’s office said. A3n The House passed a $694million bill to deal with the in-flux of migrants at the south-ern border, but it has virtuallyno chance of becoming law. A4nA Florida judge orderedthe state legislature to redrawthe congressional map andraised the possibility Houseelections could be delayed. A4

As Sales Sag,P&G LooksTo Jettison100 Brands

U.S. businesses added jobs at asturdy pace last month, extendingthe most robust stretch of hiringsince before the recession.

The question now: Is this thebeginning of a breakout in hiringthat will lift wage growth and fi-nally bring unemployment downto levels consistent with ahealthy economy?

In all, employers rangingfrom retail stores and profes-sional offices to factories and

construction sites last monthadded a total of 209,000 jobs,when adjusted for seasonal fac-tors, the Labor Department saidFriday.

That marked a downturn fromthe 298,000 jobs created inJune, but was more than enoughto yield the strongest six monthsof payroll gains since 2006. Julywas the first time since 1997that employers added 200,000or more jobs in six consecutivemonths.

Many scars from the financial

crisis remain: 9.7 million Ameri-cans are out of work, and wagegrowth—closely watched by theFederal Reserve and others—didn’t budge last month. Average

hourly earnings for private-sec-tor workers rose just 2% in Julyover last year, in line with thesluggish trend since the reces-sion.

Wage growth should acceler-ate as the labor market tightens,UBS chief U.S. economist MauryHarris said, “but the data don’tshow it yet.”

Still, the July numbers gavemore evidence of healing acrosswide swaths of the labor market.Even an uptick in the unemploy-ment rate—to 6.2%—was in part

a sign of vigor as more peopleare now seeking work.

The jobs recovery has beenmarkedly uneven, a dynamicthat promises to weigh on con-sumers and keep the Fed—whichhas kept short-term interestrates near zero since December2008 to bolster the U.S. econ-omy through a financial crisis, adeep recession and a lacklusterrecovery—on alert.

Fed Chairwoman Janet Yellenlast month told lawmakers the

Pleaseturntothenextpage

BY BEN LEUBSDORF

Hiring Settles Into Steady GainsJuly Growth Contributes to Strongest Six-Month Stretch Since 2006;Wages andUnemployment Still Soft

HONG KONG—Over nearly four years, bankscourted China’s Tianhe Chemicals Group, hoping toget a piece of the company’s expected initial publicoffering.

During that time, three of those banks hired JoyceWei, the daughter of the company’s chief executive.

The hiring of well-connected Chinese by banksseeking their business came under regulatory scru-tiny last year, and Ms. Wei’s employment becamepart of internal investigations at two of the banks,according to people familiar with the matter. Allthree banks worked for Tianhe at different stagesof the IPO process.

When Tianhe finally went public, in a $654 mil-

BY ENDA CURRAN AND NED LEVIN

FAMILY TIES

Banks Vying for China IPOCourted CEO’s Daughter

Procter & Gamble Co. willshed more than half its brands, adrastic attempt by the world’slargest consumer-products com-pany to become more nimbleand speed up its growth.

The move is a major strategyshift for a company that ex-panded aggressively for years. Itreflects concerns among inves-tors and top management thatP&G has become too bloated tonavigate an increasingly compet-itive market.

Chief Executive A.G. Lafley,who came out of retirement lastyear for a second stint at thecompany’s helm, said P&G willnarrow its focus to 70 to 80 ofits biggest brands and shed asmany as 100 others whose per-formance has been lagging. Thebrands the Cincinnati-basedcompany will keep—like Pam-pers diapers and Tide deter-gent—generate 90% of its $83

PleaseturntopageA4

BY SERENA NG

Israel Mounts Search for Missing Soldier as Cease-Fire Breaks Down

AFP

/Getty

Images

At Chapman School in Ne-braska, resourceful studentshawk pizza and cookie dough toraise money for school supplies,field trips and an eighth-gradeexcursion to Washington. Theypeddle chocolatebars to help fund theyearbook.

But the saleswon’t be so sweetstarting this fall.Campus bake sales—a mainstay of schoolfundraisers—are go-ing on a diet. A fed-eral law that aims to curb child-hood obesity means that, indozens of states, bake sales mustadhere to nutrition requirementsthat could replace cupcakes andbrownies with fruit cups andgranola bars.

Jeff Ellsworth, principal ofthe kindergarten through eighth-

grade school in Chapman, Neb.,isn’t quite sure how to break thenews to the kids. “The chocolatebars are a big seller,” said Mr.Ellsworth.

The restrictions that took ef-fect in July stem from the 2010Healthy, Hunger-Free Kids Act

championed by firstlady Michelle Obamaand her “Let’sMove!” campaign.The law overhaulednutrition standardsaffecting more than30 million children.Among the changes:fatty french fries

were out, while baked sweet po-tato fries were deemed to befine.

The law also required the U.S.Department of Agriculture to setstandards for all food and bever-ages sold during the school day,which includes vending ma-

PleaseturntopageA8

BY STEPHANIE ARMOUR

Put Down the Cupcake:New Rules Hit School Bake Sales

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Fat Standards Threaten to Squeeze OutFundraising Mainstays; Hawking Fruit Cups

ATLANTA—Two Americansinfected with Ebola in Liberiawill become the first known vic-tims of the deadly disease to betreated in the U.S. when they ar-rive at a hospital here in thecoming days.

While the transfer of the in-fected humanitarian workers isintended to improve their sur-vival chances and will followstrict safety protocols, the risksassociated with importing casesof a deadly virus are raising con-cerns not only here in Atlantabut across the nation.

“Every precaution is beingtaken to move the patients safelyand securely, to provide criticalcare en route on a noncommer-cial aircraft, and to maintainstrict isolation upon arrival” inthe U.S., said a spokeswoman forthe State Department, which isfacilitating the evacuation to-gether with the Centers for Dis-ease Control and Prevention.

The two patients, who wereinfected while working at an Eb-ola treatment center operated bytwo U.S. faith-based organiza-tions, will be flown here by an airambulance paid for by Samari-tan’s Purse, one of the organiza-tions, said Bruce Ribner, an infec-tious-diseases doctor and head ofa special isolation unit at EmoryUniversity Hospital, where theyare expected to be treated.

The first patient is expectedto arrive in the next few daysand the second will follow sev-eral days later, Dr. Ribner said.

Kent Brantly, a doctor whohad been treating Ebola patientsfor Samaritan’s Purse, and NancyWritebol, who had been helpingdecontaminate workers at thecenter for SIM USA, are both inserious condition, their organiza-

PleaseturntopageA5

BY BETSY MCKAYAND CAMERON MCWHIRTER

TwoEbolaPatientsBoundFor U.S.

lion IPO that was one of the biggest in Hong Kongthis year, two of the banks that hired Ms. Wei, UBSAG and Investec, worked on the deal. The third, J.P.Morgan Chase & Co., walked away from the IPO af-ter U.S. regulators began investigating the bank forhiring the children of powerful Chinese. Ms. Weistill works at UBS, the last bank to hire her.

The U.S. probe is based on a law barring briberyinvolving government officials or heads of state-owned firms, and thus wouldn’t apply to Tianhe,which isn’t owned by the Chinese government.Nevertheless, the probe has prompted banks tolook more closely at a number of hiring decisions,industry insiders say.

Regulators in Hong Kong, whose anticorruptionPleaseturntopageA8

The Wall Street Journal

Source: the company

Baby, feminineand family care

Beauty

Grooming

Health care

Fabric andhome care

Tide

MAINBRANDS

Pampers

Olay

Gillette

Crest

FY 2014SALES$26.1B

$21.0B

$19.5B

$8.0B

$7.8B

House CleaningP&G gets 90% of its $83 billionin sales from its biggest brands,like Tide and Pampers.

LOST COMRADE: Israeli troops gathered near the border with the Gaza Strip Friday to search for a missing soldier who was presumed capturedby Hamas militants. Renewed fighting shattered a cease-fire, brokered by the U.S. and the United Nations, that lasted barely 90 minutes. A6

Labor Report Inflation remains tame for

Fed rate decision................. A2Well-paying jobs rise......... A2 Stocks continue to slide... B1 Treasurys rally on

employment data................ B5

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