Pitch Package Mock-up

A Campaign for Your Property 123 MAIN STREET

SOUTHAMPTON, NY

Presented by Jeffrey Gibson

Dear _______, Thank you for the opportunity to present this proposal. It has been a pleasure to make your acquaintance, discuss your goals, and learn about the exceptional character and quality of your home at 123 Meadowlark Lane.

What follows is the result of our research and conversation: a comprehensive plan to sell your home, including a thorough market analysis and pricing strategy, professional curation and presentation of your property, and the mobilization of our unique resources and partnerships to reach the most qualified buyers in the world.

As a market leader, we add critical value at every step of the process. Our culture of extraordinary personal service is second to none, as is our intimate knowledge of the local luxury market.

In fact, it’s quite possible that we already know your buyer; they may already be in our network, either as a client or referral. It’s a small, discreet world, after all, and our paths tend to cross frequently.

Once again, thank you for your consideration. We would be honored to represent you, and we will work tirelessly to prove that your trust has been well placed.

Sincerely, Jeffrey Gibson Sotheby's International Realty

Jeffrey Gibson calbr e / ti tle jeffrey.gibs on@s othebyshomes.com 415. 296. 2200 / jeffreygibs on.com

Sally Hargrove is a leading specialist in luxury real estate. Her unique strategic approach to understanding and representing clients in all aspects of the buying and selling experience puts Sally in a class of her own. A consistent top producer with an exceptional reputation and deep knowledge of the affluent Los Angeles home market, Sally was recently invited to join Sotheby’s International Realty | Beverly Hills.

The daughter of a real estate executive and auctioneer, Sally grew up in the business and learned quickly what it takes to deliver outstanding results for clients. That same uncompromising focus on guiding her clients intelligently through every step of the process has shaped Sally’s own success in real estate. She rose to the level of top agent at Rodeo Realty and Joyce Rey’s distinguished team at Coldwell Banker Previews International in Beverly Hills, ranked the #1 team on the West Coast. A graduate of the renowned World Wide College of Auctioneering in Mason City, IA, Sally is also one of the few licensed female auctioneers in the country. Her recent high profile accomplisments include negotiating a $1 million dollar reduction and a short close on a $17 million home in the prestigious Beverly Park.

Sally and her husband, Bill Hargrove, an international real estate investor, are well connected within cross-cultural communities and have extensive experience representing prestigious property transactions on behalf of Turkish and Middle Eastern clients.

Sally is active in the Humane Society and the Humane Society Legislative Fund, participating in charity events, fundraising activities and volunteer work. She is also a member of the Beverly Hills Greater Los Angeles Association of Realtors.

I

II

III

IV

An Introduction

Focusing on Your Property

Orchestrated Launch

Connecting with Your Buyer

The Reach and Resources of a Global Leader

Positioning, Pricing Strategy, and Market Analysis

Curation, Announcement, and Presentation

Privileged Access to the Most Qualified Buyers in the World

A Campaign for Your Property

An Introduction The Reach and Resources of a Global Leader

Only With Us

®

Established in 1976 as a logical extension of Sotheby’s fine art auction services, Sotheby’s International Realty has since developed into the world’s premier luxury residential real estate brokerage offering tremendous advantages.

With expertise on the local level, combined with our access to important international markets, this ensures that the homes we represent receive the far-reaching exposure they deserve.

Only With Us

/ An Introduction

Privileged Access exclusive relationship

Sotheby's Auction has had a revered tradition of bringing the world's most cherished possessions to a global market since 1744. Sotheby's International Realty harnesses the worldwide recognition and prestige of the Sotheby's name along with exclusive marketing opportunities giving access to the world's most qualified buyers.

This exclusive collaboration distinguishes our brand in a meaningful way. auction clients

» 68 of the Forbes’ 100 World’s Richest People » 136 of the Forbes’ 400 Richest Americans » 57 of the Forbes’ 100 Richest Americans » 164 of the Forbes’ Top 500 CEOs » All 10 of the Forbes’ Top 10 Billionaire Art Collectors » 169 of the Art News’ Top 200 Collectors

Privileged Access

/ An Introduction

Local Experts Worldwide The The Sotheby's Sotheby's International International Realty Realty network network is is an an exclusive association of high-quality residential exclusive association of distinguished residential brokerage brokerage companies companies throughout throughout the the world. world.

The connections created result in thousands The connections created result in thousands of of referrals referrals each each year year generating generating $1.8 $1.8 billion billion annually. annually. »» brokerage brokerage offices offices

Over Over 850 880 local local brokerage brokerage offices, offices, all all leaders leaders in in their respective markets. their respective markets.

»» global global hubs hubs

880 20,000 70 o f f ic e s

ag en ts a n d c on stan t ly g rowi n g

co u n t ri es

Strategically Strategically located located in in London, London, Hong Hong Kong Kong and Miami, these locations service clients and Miami, these locations service clients by coordinating affiliate operations, international by coordinating operations, international marketing, marketing, and and events. events.

»» ssotheby’s otheby’s auction auction locations locations

These are 70 70 locations locations around around the the world world There are where clients attend exhibitions and where clients attend exhibitions and auctions auctions for fine art and collectibles. for fine art and collectibles.

Local Experts Worldwide

/ An Introduction

Luxury is an Experience, Not a Price Point 2016

Transactions by Closed Volume

2016

5

Transactions by Closed Sides

4%

%

$3 - 5 million

24%

$5 million & up

14%

$3 - 5 million

$5 million & up

% 24 up to

$1 million

29%

$1 - 3 million

38%

% 62 up to

$1 million

Even though the Sotheby’s International Realty brand is recognized as an aspirational brand serving the luxury market, it’s important to highlight that luxury is an experience, not a price point. We represent extraordinary homes in a variety of lifestyle categories and price points. in 2016

» We represented 386 transaction sides for properties $5 million and above » Average selling price of $1.35 million for 2016 (national average for existing homes was $276,100) » 62% of transactions were for properties under $1 million *Statistics based on Sotheby's International Realty, Inc. 2016 sales as well as NAR Existing Home Sales 2017.

$1 - 3 million

Expertise in All Price Ranges

/ An Introduction

The San Francisco Luxury Leader The Sotheby’s International Realty San Francisco brokerage is comprised of some of the most experienced, professional, and successful agents in the Bay Area. » Top -ranked 19. 3% market share ove r $3 mil lion » #1 local broke rage in ave rage sale price, at $2, 242,300 » Ave rage sales volume pe r age nt of $12,623,000, the highest in San Francisco *S o urc e: S a n Fra nc is c o Multiple L isting S e rvic e (S F M LS) fo r t h e pe riod 1 /1 /1 6 t h ro ugh 1 2 /3 1 /1 6

The San Francisco Luxury Leader

/ An Introduction

Market Share $3,000,000 and above | 2016

For properties priced above $3 million, Sotheby's International Realty had the top market share in San Francisco in 2016.

19.3 % 15.7 % 10.7 % 8.6 % 8.2 % 7.9 % 4.6 % 25 %

Sotheby's International Realty - SF Company A Company B Company C Company D Company E Company F Combination of Additional Companies *So urc e: Sa n Fra nc is c o Multiple L isting Se rvic e (SF M LS) fo r t h e pe riod 1 /1 /1 6 t h ro ugh 1 2 /3 1 /1 6

San Francisco Market Share

/ An Introduction

$ Price (000s)

2,500

Average Sales Price all price ranges | 2016

2,000 1,500 1,000 500 0

In 2016, Sotheby's International Realty had the highest average sales price in San Francisco.

$2,242,316 $1,742,880 $1,520,769 $1,330,402 $1,307,823 $1,240,017 $1,137,498

Sotheby's International Realty - SF Company A Company B Company C Company D Company E Company F *S o urc e: S a n Fra nc is c o Multiple L isting S e rvic e (S F M LS) fo r t h e pe riod 1 /1 /1 6 t h ro ugh 1 2 /3 1 /1 6

San Francisco Market Share

/ An Introduction

$ Volume (000s)

15,000 12,000

Sales Volume per Agent all price ranges | 2016

In 2016, Sotheby's International Realty had the highest sales volume per agent in San Francisco.

9,000 6,000 3,000 0

$12,623,000 $7,928,000 $7,287,000 $5,709,000 $5,438,000 $4,987,000 $4,943,000

Sotheby's International Realty - SF Company A Company B Company C Company D Company E Company F *S o urc e: S a n Fra nc is c o Multiple L isting S e rvic e (S F M LS) fo r t h e pe riod 1 /1 /1 6 t h ro ugh 1 2 /3 1 /1 6

San Francisco Market Share

/ An Introduction

Focusing on Your Property Positioning, Pricing Strategy, and Market Analysis

Positioning Will include Special Observations and Conclusions. Vivamus aliquam in leo id placerat.

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Positioning

/ Focusing on Your Property

showin g activity vs. timin g

Properties experience the most showings during a peak initial interest

Pricing Strategy Let’s focus on what matters most to you: the value of your property, its position in the local market, and, ultimately, its price. Our goal is to understand your expectation and help you meet it in the most expedient and effective way possible. Correct pricing at the beginning typically achieves the best result, so we will present a thorough comparative market analysis (CMA) that will help us arrive at an optimal and agreeable solution in hopes of achieving the highest price for your property.

week 1

week 2

week 3

week 4

week 5

week 6

0.00% -2.00% -4.00% -6.00% -8.00% -10.00% -12.00% -14.00%

sales price vs. in itial price Properties that are overpriced initially may ultimately sell for the lowest price

-16.00%

Less than 4 weeks

4-12 weeks

12-24 weeks Pricing Strategy

More than 24 weeks

/ Focusing on Your Property

CMA WOULD GO HERE

Orchestrated Launch Curation, Announcement, and Presentation

An Unrivaled Presentation We will commission a portfolio of photographs to be shot by an architectural photographer and curate a carefully orchestrated series of images designed to show the property at its very best.

This portfolio will be the centerpiece of our marketing efforts, both in print and online. All collateral will highlight the distinctive features of the property and will be created and distributed to the most pertinent audience.

An Unrivaled Presentation

/ Orchestrated Launch

sothebysrealty.com Sothebysrealty.com is at the core of our integrated global online marketing program and is designed to distinctly showcase our collection of extraordinary homes. It attracts more consumers to engage than any other luxury real estate website. Currency conversion, language translation in 17 languages, interactive content, as well as lifestyle and destination content are all differentiating and appealing features that set sothebysrealty.com apart. » 1,801,875 Average Monthly Visits » 1,186,441 Average Monthly Unique Visitors » 6,228,161 Average Monthly Page Views » 55% of Visitors outside the U.S. *Statistics based on web traffic to sir.com in 2016.

sothebysrealty.com

christiesrealestate.com luxuryportfolio.com

luxuryrealestate.com

coldwellbankerpreviews.com

sothebysrealty.com

/ Orchestrated Launch

Property Distribution Sotheby’s International Realty partners with and distributes properties to the most significant media companies and real estate-focused websites in the world in order to increase exposure and drive the online consumer back to the rich content on sothebysrealty.com and sothebyshomes.com.

to name a few

Property Distribution

/ Orchestrated Launch

Exclusively Showcased property showcase sites

Every significant property deserves its own website. We will create an individual site dedicated exclusively to the presentation of your home using a dedicated URL that is seamlessly displayed in the presentation of the home wherever it appears inviting potential buyers to dig deeper. distinguished email campaigns

Our beautifully designed custom email campaigns are sent to our expansive networks and focus on the stunning photography as well as key features that make your property unique.

Each piece sent will always link to the property online to invite the reader to experience further.

Exclusively Showcased

/ Orchestrated Launch

01

Overview

50 Oakwood St

50 Oakwood St San Francisco, CA 94110 Web: 0087844

Daniel DerVartanian Sotheby's International Realty San Francisco Brokerage 415.901.1727 Daniel.Dervartanian@sothebyshomes.com

Sophisticated Reporting Our campaign for your home is an ongoing process and requires clear communication along the way. Timing is critical, demanding quick response and attention to details.

We will provide you with marketing reports on a regular basis and you will always know where we stand and where we're going – until the day you close.

17

6

25,952

ADVERTISEMENTS

PR PLACEMENTS

VIEWS ONLINE

02

Marketing Details

50 Oakwood St

Views On Web Reported data from: Apr 10, 2016 - Feb 03, 2017 SITE

sfgate.com

URL

VISITS

SothebysHomes.com

1,414

SothebysRealty.com

4,894

zillow.com

16,149

trulia.com

2,158

realtor.com

1,089

homes.com

178

homefinder.com

25

wsj.com

24

sfgate.com

21

TOTAL

25,952

Sophisticated Reporting

/ Orchestrated Launch

Property Video Home buyers are engaging with video throughout their online experience, which draws the consumer in to truly immerse themselves in the property. » Homes listed with video receive 4x more inquiries than homes listed without (InmanNews) » 88% of website visitors stay longer on a site with prominent video displayed (Mist Media) » Videos are shared 1200% more times than links and text combined (Google)

Storytelling

/ Orchestrated Launch

Matterport Virtual Reality Tour Matterport virtual 3D tours provide clients with an interactive and representative experience of a property, whether they’re located across town or overseas. Viewable on sothebysrealty.com and sothebyshomes.com and on our proprietary singleproperty websites, the 3D tours give prospective buyers a dramatically improved understanding of a home’s floor plan, flow, and features.

Matterport Virtual Reality Tour

/ Orchestrated Launch

Connecting with Your Buyer Privileged Access to the Most Qualified Buyers in the World

Public Relations Our public relations team helps drive awareness and positions our brand as the voice of luxury real estate. Sotheby's International Realty has cultivated relationships with the most respected media outlets over many years resulting in consistent media coverage adding incredible value to our clients.

Public Relations

/ Connecting with Your Buyer

Search Engine Marketing Search engine marketing provides us with the opportunity to target a specific and qualified consumer. With over 90% of home buyers searching for homes online, it is essential that our brand presence is prominent on search engines and through "re-marketing" when other sites are visited.

Social Media

/ Connecting with Your Buyer

Social Media engaging a following of over half a million — daily.

Social media is a vital tool to provide content to a loyal following as well as to attract new connections. Through this, we are nurturing a highly engaged group of opinion-makers with exclusive content on Facebook, YouTube, Twitter, Instagram, LinkedIn, Pinterest and our very own Art of Living Blog.

Social Media

/ Connecting with Your Buyer

Apple TV & Apple News apple tv

Apple TV is found in 24 million homes and with our innovative Apple TV app that presents our curated videos and photography, the experience of discovering our properties can be done from the comfort of the viewer's own couch. apple news

Sotheby’s International Realty has been chosen as the exclusive real estate advertiser in the Apple News app. All of our listings are accessible through this #3 source of Traffic after Facebook and Google.

Social Media

/ Connecting with Your Buyer

Reaching Chinese Buyers According to the Financial Times, in 2016, Chinese real estate investment abroad rose by more than half and hit a record of $33 billion. The United States was the most popular destination for the second consecutive year. Sotheby's International Realty leverages its international network, and digital marketing power to market your home to buyers from Mainland China. marketing on websites catering to chinese viewers

» juwai » z-property (zaobao) » wsj china » international new york times » propgoluxury brokerage offices in asia

» beijing » hainan » hong kong

auction house locations in asia

» beijing » hong kong

Reaching Chinese Buyers

/ Connecting with Your Buyer

Winter 2017 Edition

Proprietary Publications californiastyle

FEB–MAR 2017

CURATING FASHION

CALIFORNIAstyle showcases the finest properties represented by the Sotheby's International Realty California brokerages. The piece is distributed to 30,000 subscribers of the Wall Street Journal in targeted locations, to all national Sotheby's International Realty, Inc. brokerages, and through email campaigns; the eMagazine is hosted on sothebyshomes.com.

AN L.A. MUSEUM’S BOLD COMMISSION

s otheby's preferred

Sotheby’s Preferred

THE OBSESSIONS OF BOURGEOIS & KUSAMA LONDON’S NEW DESIGN MUSEUM | BOURGEOIS AND KUSAMA | THE RETURN OF THE BROOCH | A BOLD PORTRAIT OF LACMA

ult ure d Pe arls.

CALIFORNIAstyle

™

S i n c e 18 9 3 .

Sotheby’s Preferred is the official magazine of Sotheby’s Auction House. An ongoing celebration of the extraordinary art and precious objects on the international market, this magazine provides another high-profile showcase for real estate offerings.

THE ARCHITECT BEHIND LONDON’S NEW

DESIGN DESTINATION FEBRUARY–MARCH 2017

12/13/16 9:43 AM

Proprietary Publications

/ Connecting with Your Buyer

Local Publications The campaign for your home is only complete when we reach the audience in your backyard.

We have relationships with the most visible and respected lifestyle and news outlets in your local market. san francis co chronicle

» insertions: Weekly » reach: 900,500 nob hill gazette

» insertions: Monthly » reach: 82,000 sfis homes

» insertions: Monthly » reach: 263,500 san francis co business times

» insertions: Monthly » reach: 80,000

Local Publications

/ Connecting with Your Buyer

SPECIAL REPORT THE LATEST ASSET ALLOCATION ADVICE

It’s a Family Thing

The Bond Benchmark

Bob Diamond says his sub-Saharan second act isn’t five-minute rice p 88

As hedge funds reel, family offices are quietly attracting talent p 94

Optimize your portfolio with the new Bloomberg Barclays Indices p 28

The Smart Way to Pay Estimated Taxes Page 38

Mercedes Maybach: Well-Priced Elegance Page 18

The New Gstaad: Ski and Be Seen Page 14

Beyond Flash Boys IEX’s Brad Katsuyama on his exchange finally crossing the starting line p 72

VOLUM E 2 5 / I S S UE 5

BARRONS.COM/PENTA

Misadventures in Africa

Distilling the world’s hottest investment vehicle into a single chart p 64

LOVELY HOMES, HIGHER PRICES Luxury second-home prices are up 11% in the 20 best resorts across the nation. Our advice on where to find good value.

This year’s top-ranked spot: Austin, Texas.

VISIT US ON THE WEB

The ETF Matrix

The Journal of Global Finance

TRUSTED ADVICE FOR FAMILIES WITH ASSETS OF $5 MILLION OR MORE

SMOGGY CITIES LONDON LESSONS FOR INDIA’S AIR PAGE 13 | SCIENCE cover_05-dom_clean.indd 1

Penta_covpg1_0316 [PU].indd 1

CMYK

November 2016

Volume 25 / Issue 5

BLO O MBERG M A R K E T S

PENTA

March 28, 2016

2/23/16 11:22 AM

Nxxx,2016-11-03,A,001,Bs-4C,E2_+

ZADIE SMITH THE WRITER ON THE JOY OF DANCE

A PIONEER OF KINETIC ART JULIO LE PARC FINDS NEW AUDIENCES IN THE U.S.

PAGE 19 | CULTURE

PAGE 18 | CULTURE

How To ANGRY Spend It AMERICA

10/6/16 5:06 PM

10062016161643

National & International Exposure

HOUSE & HOME

Lucy Kellaway and David Tang argue over the rules for modern life

Ed Luce on politics in thediscovers age of vitriol Jonathan Margolis the ultimate man cave LIFE & ARTS

LIFE & ARTS

P2JW316000-0-A00100-1--------XA

.

US edition Late Edition Today, becoming cloudy, afternoon and evening showers or heavy thunderstorms, high 74. Tonight, cloudy, low 47. Tomorrow, sunny, high 56.

Weather map appears on Page A24.

$2.50

NEW YORK, THURSDAY, NOVEMBER 3, 2016

© 2016 The New York Times Company

Berlusconi, and a lesson for America

Trump Holds PRESIDENT FAULTS Strong Appeal F.B.I. AND FIRES UP With Veterans

CLINTON FAITHFUL

Beppe Severgnini Contributing Writer

WASHINGTON

Praised for His Blunt Talk on War’s Costs CRITICIZES EMAIL ‘LEAKS’

By NICHOLAS CONFESSORE

GREGORY SHAMUS/GETTY IMAGES

Cubs players after scratching out a win in an epic game that ended early Thursday in Cleveland. Chicago last won a title in 1908.

More Torment, Outlawed Crop Fires Fuel India’s Air Pollution well above hazardous levels in the Then Cubs End week.

Known Cause, Known past Farmers 100 miles north in PunMAULVIWALA, India — Des108-Year Wait perate Cure but Continuing jab were well aware that they to reduce the pollution that

By GEETA ANAND

By BILLY WITZ

Health Hazard

in recent weeks have shown virtually no abatement. Farmers are continuing to burn most of the leftover straw — an estimated 32 million tons — to make room to plant their winter wheat crop.

While fireworks associated with the Hindu holiday of Diwali were blamed for a particularly bad smog problem in recent days, smoke from the crop fires blowing across the northern plains into New Delhi accounts for about onequarter of the most dangerous air pollution in the winter months. In the growing metropolis of nearly 20 million people, pollution soared

were contaminating the capital’s air, they said in interviews, and were willing to consider other ways to dispose of the excess straw, but could not afford the options offered by the government.

“We are smart, and we have adopted new technology in the past,” said Jaswant Singh, 53, as he watched a fire sweep across a 20-acre field near his village, Maulviwala, about 140 miles northwest of New Delhi.

He planned to set his own seven-and-a-half-acre rice paddy ablaze in a couple of days, he said, “because we can’t afford to pay for the new technology ourselves.”

The air was thick with smoke that evening as I drove the two hours back to Punjab’s capital, Continued on Page A6

This article is by Jonathan Martin, Adam Goldman and Gardiner Harris.

CHAPEL HILL, N.C. — President Obama threw the power of the White House behind Hillary Clinton on Wednesday. He faulted how the F.B.I. director, James B. Comey, handled new emails related to the investigation into Mrs. Clinton’s private server, and then shouted out to college students here in a pivotal battleground state that it was crucial that they vote because the “fate of the world is teetering.”

Mr. Obama’s comments about Mr. Comey, broadcast early in the day as recent polls showed a tightening race, were striking for a president who has insisted he does not comment on F.B.I. investigations. But Mr. Obama appeared to be doing exactly that in implicitly criticizing Mr. Comey’s decision to send a vague letter last week to Congress — and by extension, the public — informing lawmakers about a discovery of new emails related to Mrs. Clinton’s use of a private server as secretary of state.

“We don’t operate on incomplete information,” Mr. Obama said in an interview with NowThis News. “We don’t operate on leaks.

We operate based on concrete decisions that are made.”

Without mentioning Mr. Comey by name — although it was clear whom he meant — Mr. Obama suggested that the F.B.I. had violated investigative guidelines and trafficked in innuendo by alerting Congress last week. Mr. Obama’s remarks, which followed searing criticism of the F.B.I. director from Continued on Page A16

SEVERGNINI, PAGE 17

For the first time in more than two years, residents of eastern Mosul enjoyed a day without the Islamic State. As Iraqi security forces drove the muddy streets of

BY ERIC LIPTON AND SUSANNE CRAIG

RUTH FREMSON/THE NEW YORK TIMES

Donald Trump Jr., right, and Eric Trump, center, at Trump Tower in New York. Plans are for them, and sister Ivanka Trump, to run their father’s business while he is in the White House.

Vast, pristine and endangered LAKE BAIKAL, RUSSIA

Russia’s Lake Baikal, called the world’s cleanest, is invaded by toxic algae

BY RACHEL NUWER

Yury Azhichakov set out early by bike for Senogda Bay, his favorite beach, on the northwestern shore of Lake Baikal in Siberia. The world’s oldest, deepest and most voluminous lake, Baikal holds 20 percent of the planet’s unfrozen freshwater. It is often described as the world’s cleanest lake.

As Mr. Azhichakov discovered, that is no longer the case. Senogda’s once-pristine sands were buried under thick mats of reeking greenish-black goo.

“This stuff stretched far into the distance, for several kilometers,” said Mr. Azhichakov, 61, a retired ecological engineer. “The beach was in terrible condition.”

The muck, scientists have discovered, follows mass algal blooms at dozens of sites around Lake Baikal’s 1,240-mile perimeter. Confined to shallow water and

shores near towns and villages, the problem seems to stem from an influx of untreated sewage — the result of inadequate wastewater treatment.

Algal blooms threaten iconic freshwater bodies around the world, including the Great Lakes, Lake Geneva, and Lake Biwa in Japan. But Lake Baikal is especially precious: a World Heritage site that is home to more than 3,700 species, more than half found nowhere else.

“People are dumping sewage, waste and rubbish around the lake, creating pretty appalling conditions in some places,” said Anson MacKay, an environmental scientist at University College London.

Runoff from fertilizers and other pollutants leads to so-called eutrophication, an excessive growth of algae.

These blooms eventually deplete the water of oxygen, suffocating aquatic plants and animals.

Russian scientists had assumed that Lake Baikal is simply too vast to suffer such a fate, but recent growth in tourism and development seem to be changing the calculus.

“We have a saying in Russia: A clever person is trained on the mistakes of others,” said Oleg Timoshkin, a biologist at

FROM THE MAGAZINE

BY YUDHIJIT BHATTACHARJEE

Arunachalam Muruganantham had seen the mysterious bloodstained rags before, left discreetly in a corner of his family’s thatched outdoor bathroom. As a teenager growing up in a village near Coimbatore in southern India, he found them unsettling and at times tried to avoid the bathroom, preferring the open fields instead. He finally deduced that the rags were left by his sisters, but what they used them for remained unclear until he noticed Shanthi, his wife, hiding one from him. He was in his mid-30s then, and newly married, when Shanthi explained that women menstruate, and that most of them — at least in the developing world — use rags to absorb the blood that accompanies the beginning of each menstrual cycle.

Shanthi knew there were things called sanitary pads — or napkins, as they are sometimes referred to in India.

She was aware that they were more hy-

it is about power, and politics is a power profession. PAGE A14 TUNED IN Jay Z and other musi-

AL DRAGO/THE NEW YORK TIMES

President Obama in Chapel Hill, N.C., on Wednesday.

cians are going on the road to support Hillary Clinton. PAGE C1

In Changing Regions, Trump Makes Inroads for Democrats

HOME

By TIM ARANGO

Regulators who oversee Trump’s many businesses will be appointed by him

By JONATHAN MARTIN and ALEXANDER BURNS

CASA GRANDE, Ariz. — Since moving to Arizona 15 years ago, Nieves Lorenzo watched as Hispanics grew in numbers but only haltingly asserted themselves as a political force. Then came Donald J. Trump’s presidential candidacy.

“He has woken up the sleeping giant,” Ms. Lorenzo, a native of Venezuela, said as she stood in a local Democratic campaign headquarters here in the desert between Phoenix and Tucson.

By driving women, educated white voters and, most significantly, growing blocs of minorities away from the Republican Party, Mr. Trump has hastened social and political changes already well underway in two key regions, the interior West and the upper South, that not long ago tilted to the right.

Now, even as Hillary Clinton

SECTION 6

SHAMMI MEHRA/AGENCE FRANCE-PRESSE — GETTY IMAGES

A farmer burned a harvested wheat field last month on the outskirts of Jalandhar, India.

the neighborhood, families stepped from the gates of their driveways, waving, flashing twofingered victory signs and yelling, “Heroes!” Others held white flags.

Some men, in ankle-length Arab gowns in the jihadist-regulation style, were smoking cigarettes, while others had them tucked behind their ears. They were cele-

NATIONAL A14-20

Longer Lasting Color in Fall

A warming planet is responsible for the bright colors of fall lasting so late in the year, scientists say. What will happen over the long term is less certain. PAGE A20

Surrender in Officers’ Killings

An Iowa man described as a troubled loner was in custody in the deaths of two officers near Des Moines who were gunned down in the driver’s seats of PAGE A15 their patrol cars.

brating the Iraqi forces’ victory over the Islamic State in their area by savoring some of the small pleasures banned under more than two years of militant rule.

“We are very, very happy,” said one man, Qais Hassan, 46, surrounded by soldiers. “Now we have our freedom.” The Islamic State, he said, had “asked us to implement religion. But they had

nothing to do with religion.”

Iraqi soldiers were seeing firsthand what life in Mosul had been like under Islamic State rule imposed in 2014. But they were also catching a glimpse of some of the challenges ahead, simultaneously pressing the fight toward the city center and going about the messy business of re-establishing govContinued on Page A12

INTERNATIONAL A4-13

ARTS C1-8

Volkswagen’s Nazi Past

Rothko’s Palette, Illuminated

A new exhibition counters the notion that the painter’s late, dark-hued works reflect an inner angst, and his brighter ones optimism. PAGE C1

Volkswagen, a pioneer in revealing its history of using forced labor in World War II, has set off anger by parting ways with a company historian. PAGE A4

Churning Alliances in Asia

The United States’ alliances are feeling strained over the South China Sea, after the Philippines agreed to a deal with PAGE A13 China on fishing.

Healing Cairo’s Horses

An Australian nurse offering free care for battered and overworked horses in the shadows of the Pyramids faces PAGE A4 hostility from their owners.

NEW YORK A22-25

Sentence for Ex-Police Chief

James Burke, head of the Suffolk County police, drew officials’ attention PAGE A22 after his reaction to a theft.

contends with inflamed Democratic anxiety over renewed scrutiny of her private email server, these once-red areas are providing an unexpected firewall for her campaign.

Democrats are already strongly confident of victory in three of them — Colorado, Nevada and Virginia — and believe that a fourth, North Carolina, is likely to break their way as well. Added to the party’s daunting advantage in the Electoral College, these states have impeded Mr. Trump’s path to amassing the 270 electoral votes needed to win, limiting his ability to exploit Mrs. Clinton’s late vulnerabilities and forcing him to scrounge for unlikely support in solidly Democratic places like Michigan and New Mexico.

The shift is stark enough that Continued on Page A17

OLIVIA ARTHUR/MAGNUM, FOR THE NEW YORK TIMES

Arunachalam Muruganantham and his wife, Shanthi. He reverse-engineered the making of sanitary pads, starting a health care revolution in India and other developing nations.

Lunch with the FT Tom Ford, film-making fashion guru | Person in the news Park Geun-hye, South Korean president

the Russian Academy of Science’s Limnological Institute in Irkutsk, 40 miles from Baikal’s southwestern shore. “Unfortunately, we’re now repeating the mistakes of so many other countries.”

Dr. Timoshkin and his colleagues

have found that Spirogyra, a type of green algae that had rarely grown in Lake Baikal’s shallow zones, accounts for the outbreaks.

In Severobaikalsk, Mr. Azhichakov’s LAKE BAIKAL, PAGE 2

PROPERTY SUPPLEMENT OF THE YEAR

THURSDAY STYLES D1-10

Digital’s Loose Grip on Truth

A Muslim Fashion Identity

The internet was supposed to be a boon to democracy, but when confronted with information choices, people often retreat to the echo chamber of their own beliefs, Farhad Manjoo writes. PAGE B1

Microsoft Challenges Slack

Microsoft has unveiled Microsoft Teams, a real-time communications service that resembles Slack but adds features like threaded conversations PAGE B3 and videoconferencing.

EDITORIAL, OP-ED A26-27

PAGE A27

i Oil groups join forces on climate change Shell, Aramco, BP and seven other large oil groups have taken the unusual step of joining forces to spend $1bn over the next 10 years on measures to combat climate change.— PAGE 10

i Kurdish arrests intensify Erdogan purge Diyarbakir, de facto capital of Turkey’s Kurds, has been under siege amid a state crackdown, but the arrest of top Kurdish politicians lays the ground for a vote on greater presidential powers.— PAGE 3

GEOFF DYER — WASHINGTON

i BMW posts record data but shares dip

Early voting in key battleground states showed the US presidential campaign on a knife-edge, with both camps insisting the closely watched data showed their candidate gaining momentum as the race entered its final weekend.

Although the ballots — some submitted by mail, but most cast in earlyopening precincts — will not be tallied until election day on Tuesday, Democratic voters were turning up in greater numbers than Republicans in Nevada and North Carolina, while Republicans were outperforming in Ohio and Iowa.

According to Michael McDonald, a professor at the University of Florida who runs the US Elections Project, 37m Americans had already voted by Friday morning and as many as 40 per cent could cast their votes before Tuesday. In 2012, total early voting was just 32.3m.

Early indications showed increased turnout among Latinos, seen as a fillip to Hillary Clinton, and whites, where Donald Trump pulls support, giving both campaigns reason to trumpet the data.

But with polls showing Mrs Clinton ahead at the national level and facing tight races in many of bellwether states, early voting suggests Mr Trump will need to generate a decisive turnout on Tuesday to overcome the electoral college advantage held by the Democrats.

Mrs Clinton and Mr Trump have been campaigning in early-voting states for much of the week, particularly Florida and North Carolina, both essential for Mr Trump. Mr Trump is set to visit both

BMW posted record quarterly numbers, but its shares fell as margins deteriorated and analysts warned over a shift by car groups to a self-driving and electric future.— PAGE 10

i Bitter Japan rivals join forces to survive

Past months have seen nearly 2,000 mergers and tie-ups in Japan, as the reality that competing alone is no longer an option has set in.— PAGE 12

i Wage data show solid US jobs market

The US’s record jobs-hiring streak continued as wage growth sped to its fastest since 2009, highlighting a solid jobs market before Tuesday’s election.— PAGE 2

i Fresh move to make chess big league

Another attempt to transfer chess’s popularity into a viable spectator sport will begin next week at the World Chess Championships in New York.— PAGE 10

Datawatch Hillary Clinton, the Democratic nominee, speaks at Heinz Field in Pittsburgh, Pennsylvania, yesterday — Brendan

Smialowski/AFP/Getty

for Donald Trump to feel insulted and start a real war, not just a Twitter war, at three in the morning.”

Democrats have built a strong advantage in Nevada, where more than half of the electorate generally votes early. By Thursday evening, registered Democrats made up 42.3 of the returned ballots and Republicans 36.9 per cent, a similar gap to 2012 when Barack Obama carried the state by seven points.

In North Carolina, the Democrats are also ahead in early voting by 42.7 per cent to 31.8 per cent. Even in early vot-

this weekend, while Mrs Clinton is expected in south Florida today.

The nastiness of the campaign continued yesterday, with Mr Trump continuing to insist that a Clinton victory would mean Washington becomes tied up with scandals, while Mrs Clinton returned to the theme that her rival was unfit.

“She will be under investigation for years. She will face trials,” Mr Trump said in New Hampshire about inquiries into Mrs Clinton’s email practices. At a campaign event in Pittsburgh, Mrs Clinton said: “Imagine how easy it would be

ing, Florida is extremely tight, with Republicans casting 39.74 per cent of the votes as of Friday and Democrats 39.71 per cent.

There was better news for the Republicans in Iowa where the Democrats’ lead in early voting is well down on 2012 and in Ohio where they have seen a bigger increase in requests for early ballots than the Democrats.

Clinton hampered page 2 Gillian Tett page 8 Global overview page 14 The Long View page 18

World’s largest cities Million people 1995

2015 38 26 24 21 20 18

Tokyo 34

New York 17 Mumbai 14 Delhi 12 Shanghai 10 Beijing 8

Source: UN population

Tokyo is still the world’s largest city with about 38m people, but Delhi, whose population has more than doubled over the past 20 years, could challenge it.

Shanghai has passed Mumbai and New York to take third place.

There is a deep worry, most immediately about the possibility of mass deportations of Mexicans. PAGE 5

The stats star who made baseball history at age 42 Chicago Cubs general manager Theo Epstein made history this week by taking the baseball club to the World Series championship for the first time since 1908. In 2004, he also led the Boston Red Sox to their first World Series win since 1918. The latest win established Mr Epstein, still only 42, as the greatest baseball chief of his generation. The link between his wins was an emphasis on statistical analysis popularised by the book ‘Moneyball’.

Profile i PAGE 2

gienic and convenient, meant to be thrown away after each use. Why didn’t she just use pads, Muruganantham asked. “If your sisters and I start buying them,” Shanthi answered, “we will have to cut down the family’s food budget.”

Muruganantham, a stocky man with a pencil-thin mustache, decided to buy Shanthi a pack of sanitary pads as a gift.

At the pharmacy, the shopkeeper brought out the item, then wrapped it quickly to keep it hidden from the other customers. “He handed it to me as if it were a smuggled product,” Muruganantham, now 52, told me. The pack of eight cost him 20 rupees in 1998 — about 50 cents, or three days’ worth of groceries.

At home, before he gave the present to his wife, Muruganantham tore open one of the pads. As a kid, he had always been driven by an extraordinary curiosity to find out how things worked; he would compulsively dismantle any new thing he could lay his hands on — toys, bicycles, radios. Muruganantham expected to see something interesting inside the pad, but the innards seemed to be noth-

The pound chalked up its biggest weekly gain against the US dollar since early March yesterday as investor fears of a hard Brexit eased despite a furious reaction by Eurosceptics to a court ruling that the UK government must seek parliamentary approval before invoking divorce talks with the EU. Theresa May’s defeat in the High Court on Thursday raised investors’ hopes that a parliamentary vote on Brexit would force the prime minister to adopt a softer negotiating stance in exit talks, scheduled to start next year.

Mark Carney’s decision on Monday to stay on as governor of the Bank of England until an expected end to Brexit talks in 2019 also reassured markets.

Sterling had been hovering near

three-decade lows after markets were spooked by hardline Brexit rhetoric at last month’s Conservative party conference. This week buyers pushed the pound from levels near $1.21 to $1.25, its highest level since October 7.

Mrs May’s command of events on Brexit has been shaken this week, with the High Court insisting that she cannot invoke the EU treaty’s Article 50 exit clause without first holding a vote in parliament, a process that could be messy and time-consuming.

Her position suffered a further blow when Stephen Phillips, a Conservative MP who voted for Brexit, unexpectedly quit, citing “growing and significant differences” with her government, including its stance on the Article 50 process.

The sense of drift on Brexit has infuriated pro-Brexit campaigners.

Newspapers also turned on the High

STOCK MARKETS

CURRENCIES

GEORGE PARKER, ROGER BLITZ AND JIM PICKARD — LONDON

FUROR OVER PICK OF HARD-RIGHT ADVISER

Critics see Stephen Bannon, chosen as the White House chief strategist, as a voice of racism. PAGE 6

www.ft.com/subsusa Tel: 1 800 628 8088 For the latest news go to www.ft.com

© THE FINANCIAL TIMES LTD 2016 No: 39,313 ★ Printed in London, Liverpool, Glasgow, Dublin, Frankfurt, Brussels, Milan, Madrid, New York, Chicago, San Francisco, Washington DC, Orlando, Tokyo, Hong Kong, Singapore, Seoul, Dubai

PADS, PAGE 4

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Court judges. The Daily Mail’s headline “Enemies of the People”, with pictures of the three judges, was typical and prompted lawyers to call on Mrs May and justice minister Liz Truss to defend the independence of the judiciary.

Ms Truss refused repeated requests to intervene. Mrs May’s spokeswoman said: “We don’t think the British judiciary is being undermined.”

The prime minister called European leaders to reassure them that she was committed to invoking Article 50 by March, in spite of the court defeat. She told leaders including German chancellor Angela Merkel and French president François Hollande that the government “had strong legal arguments” to take to a Supreme Court appeal next month.

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 Macy’s and Kohl’s gave upbeat outlooks for holiday shopping despite another quarter of declining sales.

Nordstrom’s sales rose. A1  Disney posted revenue and earnings that fell short of expectations, as declining income at ESPN continued to overshadow results. B1  Two leading law firms, Arnold & Porter and Kaye Scholer, are set to merge as the legal market struggles with tepid demand. B1  Google may be tempted to settle with the EU as it faces a third set of antitrust charges, experts said. B2

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Page Name: 1FRONT USA,

Part,Page,Edition: USA, 1, 1

 Trump faces an array of private lawsuits, including allegations of fraud against Trump University. A4  The death toll has surged for migrants crossing the Mediterranean to Europe, as more take the treacherous Libya-to-Italy route. A9  Brazilian politicians are stepping up efforts to impede a massive corruption probe, a prosecutor said. A11  South Africa’s Zuma survived his second no-confidence vote this year over corruption allegations. A11  The Interior Department issued a rule to speed the development of renewable energy on federal land. A3

From Vogue Arabia to New York Fashion Week, Muslim consumers and designers are demanding global recognition and respect of their cultural and commercial PAGE D1 clout.

CONTENTS Markets Digest..... C5 Arts & Ent.......... D2-5 Opinion.............. A13-15 Business News. B2-3,5-6 Sports.......................... D6 Crossword................. B6 Technology............... B4 Global Finance........ C3 U.S. News............. A2-5 Heard on Street.... C8 Weather..................... B6 In the Markets....... C4 World News...... A6-11

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YEN 106.83

WASHINGT O N—D on a ld Trump’s transition team raced to form his cabinet on Thursday as more names were floated for some of the biggest jobs in the president-elect’s administration, including a foe of financial regulation for the powerful position of Treasury secretary.

U.S. Rep. Jeb Hensarling, a Texas Republican known for his sharp criticism of the 2010 financial regulatory overhaul, is among a growing list of potential nominees for the New York businessman’s cabinet as speculation increased about who would surround the new president in office, people familiar with the discussions said.

The transition process has ramped up in recent days, people familiar with the matter said, adding that the team is far from making final recommendations to Mr. Trump. An initial website for the transition went online on Wednesday, and Mr. Trump has yet to name a chief of staff, which is typically the first announcement for a new administration.

The time between Election Day and Inauguration Day in January is often turbulent as an incoming administration faces a multitude of critical decisions in a tight span. In addition, to picking his top staff, the president-elect must vet and fill a cabinet composed of 15 executive departments and a host of other aides who have cabinet rank.

The incoming administration also must begin selecting about 1,000 top positions that require Senate confirmation, sketch out an agenda for the first few months of its term, write an inauguration speech and plan the ceremony.

In a sign of the fluidity of Please see TEAM page A5

The Sotheby's International Realty property advertising program provides an array of options, both print and online, for listing advertising needs. This program leverages high profile, GLOBAL CAR INDUSTRY RUNS ON NAFTA global media partners and offers targeted reach and vast worldwide exposure.

President-elect Donald Trump and President Barack Obama shook hands after meeting for the first time in the Oval Office Thursday.

Traders Send Dow to Record Gaining Momentum

The Dow industrials surged and bond yields rose for a second day, reflecting bets U.S. growth will break out under a Trump presidency.

Yield on the 10-year Treasury note

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3.0%

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The Dow industrials climbed to a record and bond yields rose around the world for a second day, as investors applauded the prospects of expansive fiscal spending under a Trump administration.

By Aaron Kuriloff, Nick Timiraos and Colin Barr

2.118%

 U.S. allies have been rattled by Trump’s foreign-policy stances, with some urging Washington to hew to its traditional global roles. A6  Russia was in contact with Trump’s team during his campaign, a Kremlin official said. A Trump aide denied the assertion. A6  Trump doesn’t view Israeli settlements on disputed land as an obstacle to peace, an adviser said. A6

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BY MICHAEL C. BENDER AND DAMIAN PALETTA

Business & Finance

 Obama and Trump met for the first time, with Trump saying he had “great respect” for the man he once called the worst U.S. president. A5

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 Trump’s transition team promised to scrap the DoddFrank law and revamp the way the government oversees the financial sector. C1  Bank stocks continued to rise, buoyed by the prospect of looser regulation, economic growth and higher rates under Trump. C1  Trump’s victory has unleashed investor bets on rising consumer prices. C1

 Trump’s transition team has relied on a mix of political insiders and outsiders, with the Heritage Foundation playing a key role. A5 yield

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he Dow climbed 218.19 points to a record 18807.88 and bond yields rose as investors bet on stimulus, tax cuts and a regulatory rollback. A1, C4

 Trump’s team is considering Rep. Jeb Hensarling, a Texas Republican and foe of financial regulation, for the job of Treasury secretary. A1

Populist backlash page 4 Bruce Anderson page 9 Resurgent sterling page 13

STOXX 600 338.88 g 0.3%

WSJ.com

Presidential Handover Begins

 The UAW president said he sees common ground with Trump on trade issues. B3

World Markets

Subscribe In print and online

NASDAQ 5208.80 g 0.8%

What’s News

 The WTO said government measures that restrict trade continue to rise around the world. A11

REFUGEES DISCOVER 2 AMERICAS

Is the country seen in the election full of hate, or is it one that still welcomes strangers? PAGE 5

DJIA 18807.88 À 218.19 1.2%

 A Carlyle hedge fund has lost the $400 million it invested last year in a Moroccan oil-refinery deal. C3

Sterling rises as UK High Court ruling eases investors’ fears over hard Brexit

TRUMP, PAGE 6

RACHEL NUWER

Briefing

3 Both Clinton and Trump claim fresh momentum 3 37m ballots have already been cast

MEXICO ANXIOUS AFTER U.S. VOTE

Thick mats of reeking goo on a beach at Lake Baikal in Russia. Algal blooms caused by pollution, dams planned by Mongolia, and climate change are all causes for concern.

SATURDAY 5 NOVEMBER / SUNDAY 6 NOVEMBER 2016

USA $3.00 Canada C$3.50

US election on a knife-edge as rivals weigh early-voting data

06.11.2016

BUSINESS DAY B1-9

Gail Collins

Just a few blocks down Pennsylvania Avenue from the White House sits the Trump International Hotel, one of the newest luxury additions to Presidentelect Donald J. Trump’s real estate empire, and perhaps the most visible symbol of the ethical quandary he now confronts.

The Trump International is in the Old Post Office Building, which is owned by the federal government. That means Mr. Trump will be appointing the head of the General Services Administration, which manages the property, while his children will be running a hotel that has tens of millions of dollars in ties with the agency.

He also will oversee the National Labor Relations Board while it decides union disputes involving any of his hotels.

A week before the election, the board ruled against one of Mr. Trump’s hotels in a case in Las Vegas.

The layers of potential conflicts he faces are in many ways as complex as his far-flung business empire, adding a heightened degree of difficulty for Mr. Trump — one of the wealthiest men to ever occupy the White House — in separating his official duties from his private business affairs.

Further complicating matters are Mr. Trump’s decision to name his children to his transition team, and what is likely to be their informal advisory role in his administration.

His daughter Ivanka Trump joined an official transition meeting on Thursday, the day before Gov. Chris Christie of New Jersey was removed from his post leading the effort.

Mr. Trump has said he will eliminate ethical concerns by turning the management of his company over to his children, an arrangement he has referred to as a blind trust. But ethics lawyers — both Republicans and Democrats — say it is far from blind because he would

Making sanitary pads affordable in India

SEXUAL HARASSMENT At its core,

As Forces Start Clearing Mosul, Iraqis Cheer, Shave and Smoke Tim Arango entered the city of Mosul, Iraq, on Wednesday with Iraqi special forces soldiers.

guards on duty outside the Excelsior Hotel Gallia here, where the United States consulate general is hosting a postelection breakfast. “Hardly a good morning,” I reply.

Inside, the phantasm of Donald J. Trump, with its egg-custard bangs, weaves its way through the palpable embarrassment emanating from the assorted guests. I accepted the invitation after a sleepless night because I wanted to show my friendship to the United States and its citizens. They’re looking forward to at least four years of being governed by a president who looks to be unsuitable, possibly embarrassing, and certainly, to say the least, unpredictable.

At times like Americans this, you really still want to need your friends, right? give their While I connew leader sider myself a the benefit friend of Amerof the doubt. ica, there are more than a few Italians now friends of Mr. know better.

Trump in Italy, many of them newfound. No other country in the European Union, according to the Pew Research Center, is so passionate about Mr. Trump, and the last week has seen an outpouring of affection for the incoming American leader.

Is that really surprising? The plaudits in the news media, and on social media, betray a disagreeable longing for authoritarianism, a Mussolini-style nostalgia for a macho leader who’s always right, and a yearning for the (verbal) stick to be taken to anyone who dares criticize the boss. In other words, Berlusconism is alive and well in Italy, even when it means looking abroad for a strongman.

On one level, I can’t help but feel like turnabout is fair play. During the Berlusconi years, Italy was Europe’s laughingstock, and the Americans, among others, took us to task with comments that ranged from patronizing to outraged. Now it’s our turn.

The United States and others explained to us that they’d never ever elect a man who treated women like sex toys. A 70-year-old who worried more about his hair than about world issues. A politician who confused his private business with affairs of state. A person who treated the truth as optional.

And let’s be honest: Next to Mr. Trump, our former prime minister, Mr. Berlusconi, looks like Winston Churchill. At least he didn’t insult his neighbors, mock foreign powers, snub NATO

VOLUME 06 EDITION 02 2016

CLEVELAND — If you are going to endure years — no, generations — of futility and heartbreak, then when you do finally win a championship, you might as well make it a memorable one.

The Chicago Cubs did just that, shattering their 108-year championship drought in epic fashion: with an 8-7, 10-inning victory over the Cleveland Indians in Game 7 of the World Series that began on Wednesday night, carried into Thursday morning and seemed to end all too soon.

After the Indians rallied with three runs in the eighth inning, including a two-run thunderbolt of a home run by Rajai Davis off closer Aroldis Chapman, and then a brief rain delay, the Cubs pushed two runs across in the 10th on Ben Zobrist’s double and Miguel Montero’s single.

The Indians got a run back in the bottom of the inning when Davis singled home Brandon Guyer, who had walked with two out against Carl Edwards Jr. But Mike Montgomery, the Cubs’ fifth pitcher of the night, got Michael Martinez to hit a slow roller to third base. Kris Bryant scooped it up and threw to first baseman Anthony Rizzo, and the Cubs poured out of the dugout and mobbed one another in the center of the diamond.

The heart-stopping end to the series was the Cubs’ third straight victory over the Indians, allowing them to become the first team to rally from a three-games-to-one deficit in the Series since Kansas City in 1985, and the first to do it on the road since Pittsburgh in 1979.

But they did not so much beat the Indians as survive them.

In this matchup of long-suffering franchises who shared the Continued on Page B13

has made New Delhi’s air quality among the worst in the world, the city has banned private cars for two-week periods and campaigned to reduce its ubiquitous fireworks during holiday celebrations.

But one thing India has not seriously tried could make the most difference: curtailing the fires set to rice fields by hundreds of thousands of farmers in the nearby states of Punjab and Haryana, where much of the nation’s wheat and rice is grown.

Although India’s environmental court, the National Green Tribunal, told the government last year to stop farmers from burning the straw left over from their rice harvests, NASA satellite images

OPINION MILAN “Good morning!” says one of the

Obama Tells Crowd in North Carolina Vote Hinges on Them

The roster of retired military officers endorsing Hillary Clinton in September glittered with decoration and rank. One former general led the American surge in Anbar, one of the most violent provinces in Iraq. Another commanded American-led allied forces battling the Taliban in Afghanistan.

Yet another trained the first Iraqis to combat Islamic insurgents in their own country.

But as Election Day approaches, many veterans are instead turning to Donald J. Trump, a businessman who avoided the Vietnam draft and has boasted of gathering foreign policy wisdom by watching television shows.

Even as other voters abandon Mr. Trump, veterans remain among his most loyal supporters, an unlikely connection forged by the widening gulf they feel from other Americans.

After 15 years at war, many who served in Iraq or Afghanistan are proud of their service but exhausted by its burdens. They distrust the political class that reshaped their lives and are frustrated by how little their fellow citizens seem to understand about their experience.

Perhaps most strikingly, they welcome Mr. Trump’s blunt attacks on America’s entanglements overseas.

“When we jump into wars without having a real plan, things like Vietnam and things like Iraq and Afghanistan happen,” said William Hansen, a former Marine who served two National Guard tours in Iraq. “This is 16 years.

This is longer than Vietnam.”

In small military towns in California and North Carolina, veterans of all eras cheer Mr. Trump’s promises to fire officials at the Department of Veterans Affairs. His attacks on political correctness evoke their frustrations with tortured rules of engagement crafted to serve political, not military, ends. In Mr. Trump’s forceful assertion of strength, they find a balm for wounds that left them broken and torn.

“He calls it out,” said Joshua Macias, a former Navy petty officer and fifth-generation veteran Continued on Page A18

Conflicts arise when president is also tycoon

FRIDAY, NOVEMBER 11, 2016 ~ VOL. CCLXVIII NO. 113

PABLO MARTINEZ MONSIVAIS/ASSOCIATED PRESS

VOL. CLXVI . . . No. 57,405 +

INTERNATIONAL EDITION | WEDNESDAY, NOVEMBER 16, 2016

2016

THE WALL STREET JOURNAL.

Sources: WSJ Market Data Group (DJIA); Ryan ALM

The rise of 218 points in the Dow Jones Industrial Average, to 18807.88, puts the 30-stock index up 7.9% for the year. The Dow has risen 2.7% since its close Tuesday, reflecting a bet that Republican control of the White House and Congress would enable passage of a fiscal stimulus plan, tax cuts and a regulatory rollback.

Selling intensified in the bond market, with the 10-year Treasury note’s yield rising for the fourth straight day to 2.118%, up 0.251 percentage point since markets closed Tuesday. Yields, which move opposite to price, rose again around the globe, with the yield on the 10-year German bund hitting 0.275%, its highest level since May, according to Tradeweb.

Yet some believe a reckoning could await, reflecting unease over volatile stock and bond markets, tepid economic fundamentals and uncertainty over what policies will actually move forward in coming Please see SPEND page A2

 The Trump trade takes over... C1

Trump Transition  Gerald F. Seib: Trade as voter motivation........ A4  Tone softens in White House visit.................... A5  Foreign policy-stance rattles allies.................. A6  Trade-war threat with China grows................. A8

Auto parts come from multiple producers and can cross borders several times; jobs shift to overseas plants

BY DUDLEY ALTHAUS AND CHRISTINA ROGERS

QUERÉTARO, Mexico—Jody Fledderman is one of five original employees at the auto-parts factory his father founded in rural Batesville, Ind. He also spends a lot of time at the company’s 97,000-square-foot plant in central Mexico.

The two operations have expanded

together as automotive production in both countries boomed. Mr. Fledderman credits the success of Batesville Tool & Die Inc., where he is president, in part to the addition of a Mexican plant 16 years ago that helps service Honda Motor Co., Nissan Motor Co. and other clients on both sides of the border.

“We have three or four clients back in Indiana that we wouldn’t have had

Everything You Need to Know About Finland—In Four Emojis i

i

i

Nation lobbies to put its own symbols on smartphones; a sauna and a pair of socks

BY GEORGIA WELLS the sauna,” says Petra Theman, director of public diplomacy for To spell Finland in English, Finland’s Ministry of Foreign you need six different letters. Affairs, which developed the To say it in emoji, Finland emoji. “Sauna would be ours would like to be known as ei- even more if we got an emoji.”

The Unicode Consortium, ther sauna, socks, heavy-metal which met to decide the fate of headbanger or “girl power.”

Finland’s offerings The Nordic counThursday, is no try of 5.5 million bunch of smileypeople has distilled faced pushovers. The its cultural heritage group, which standinto four symbols ardizes computer and has been on a coding for characquest to get them ters in different lanrecognized by the guages, wants emojis secretive Silicon Valto be popular, easily ley group that derecognizable with cides which playful characters are in- Girl power emoji just a few thousand pixels, and open to cluded in the emoji keyboards of the world’s smart- interpretation. Its guidance is followed by Apple Inc., Google phones.

“Finland is not known for parent Alphabet Inc. and many many things. We don’t have the other big tech companies.

Please see EMOJI page A12 Eiffel Tower. But we do have

if we weren’t here,” Mr. Fledderman, 54 years old, said in an interview at the plant in Querétaro.

President-elect Donald Trump has said that in his first days in office he will reopen talks on the North American Free Trade Agreement, which connects Canada, the U.S. and Mexico, and leave the pact if Mexico doesn’t agree to improved terms for the U.S. He blames unfair trade, in particular

with Mexico and China, for the loss of millions of factory jobs.

Ending the 1994 trade pact is relatively easy. The U.S. legally can pull out of Nafta six months after Mr. Trump as president notifies Mexico and Canada of his intention to do so, Please see NAFTA page A12

 UAW sides with Trump on trade..... B3  Heard on the Street................................. C8

Rising Wages, Tighter Inventory Spark Retail Holiday Optimism

BY SUZANNE KAPNER With just two weeks until Black Friday—the day after Thanksgiving that kicks off holiday shopping—executives at the nation’s biggest department stores said Thursday they are seeing signs that consumers are turning their attention from voting to shopping.

Macy’s Inc. and Kohl’s Corp. cited improving shopping trends and gave upbeat outlooks for the key holiday season, despite posting another quarter of declining sales, as the chains struggle with changing shopping habits and competition from discounters. Nordstrom Inc., meanwhile, reported a sales increase and lifted its financial targets for the year.

“We have momentum coming out of October,” Kohl’s Chief Executive Kevin Mansell said. “We feel we’re very well positioned for the upcoming holiday season.”

Shares of the companies ral-

Checking Out Comparable store sales, change from previous year 3Q 2016 KOHLS t1.7%

2%

MACY’S* t2.7%

0

SAKS t4.6%

–2

–4

–6 2015

’16

*Includes departments licensed to third parties.

Source: the companies

THE WALL STREET JOURNAL.

lied in Thursday’s trading, giving a lift to other retail stocks.

Mr. Mansell worried about an election hangover, due to uncertainty about President-elect

Donald Trump’s agenda. But Macy’s CEO Terry Lundgren said: “To have a group of the population feeling like their voices have been heard is a positive thing.” With wages rising and unemployment low, he added, “there is a potential for consumers to spend in the fourth quarter.”

Mr. Mansell said better inventory management could help shield the company from seasonal or political volatility.

“We are doing things with an eye to the long-term,” he said.

This should “continue to benefit us regardless of whether or not you think the consumer is in a buying mood for holiday or is still not so much.”

A more complete picture of the consumer mind-set will emerge next week when other large chains such as Wal-Mart Stores Inc., Target Corp. and Home Depot Inc. report their latest results.

Perhaps even more imporPlease see RETAIL page A11

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