The Wall Street Journal - 31.07.2019

*** WEDNESDAY, JULY 31, 2019 ~ VOL. CCLXXIV NO. 26 WSJ.com HHHH $4.**

Hacking

Suspect

Left Trail

Of Clues

Online

Woman charged in

Capital One data

breach that affected

more than 100 million

ABOARD THE USS BOXER—

About two dozen Marines and

sailors gathered in the gym re-

cently for some friendly com-

petition. They were there for

the 1,000-Pound Club, to see

who could squat, bench and

deadlift the most weight on

this warship.

That day’s round went to

the Marines. Sgt. Emmanuel

Addomensah, 22 years old,

scored 1,490 pounds across all

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FAMILY & TECH

Facial recognition

technology comes to

schools and summer

camps A

ISTOCK

Within months of the storm, Mr. Dey and

his partners began buying houses and apart-

ments in the hurricane zone. He flipped a

few of them without doing any work, turning

an average profit of $10,000 to $15,

apiece, he said. He is rebuilding some and

has rented out others to contractors who ar-

rived after the storm, certain of work but

not of a place to sleep.

Mr. Dey is a disaster investor, a real-estate

speculator who seeks to profit from hurri-

canes, wildfires and tornadoes. These days,

there are a lot of them around.

Last year had the fourth-most natural di-

Please turn to page A

The 33-year-old woman ac-

cused of executing one of the

largest-ever data thefts at a

bank showed strange behavior

online in recent months, at

times bragging about her ex-

ploits and discussing deep

struggles in her personal life.

Paige Adele Thompson was

arrested in her home city of Se-

attle on Monday, charged with

stealing data from Capital One

Financial Corp. involving more

than 100 million credit-card

customers and applicants.

In an unusual twist, Ms.

Thompson is a former em-

ployee at Amazon.com Inc.’s

cloud division responsible for

running much of Capital One’s

information-technology infra-

structure. The heist stands out

not only as a massive bank

breach but a rare instance in

which a former employee of

Amazon has been charged with

hacking one of the company’s

own customers.

Giant corporate breaches

typically have been the work of

criminal teams, sometimes with

Please turn to page A

By Dana Mattioli ,

Robert McMillan

and Sebastian Herrera

bitious proposals to eliminate

private health insurance, raise

taxes, reshape the economy

and confront some powerful

U.S. corporations. The candi-

dates clashed more with one

another at this debate, com-

pared with the first round a

month earlier.

The bickering between

moderates and progressives,

telegraphed in recent weeks,

underscored the stakes of

these debates before higher

polling and donor thresholds

kick in for inclusion in the

next round in September. The

majority of the 20 candidates

now participating are barely

registering in national polls

and need to find a spark if

they are to remain on stage.

This week’s debates are be-

ing held in Michigan, a state

crucial to President Trump’s

2016 victory and one both

Democrats and Republicans

believe will again play a cen-

tral role in the 2020 election.

Mr. Sanders and Ms. Warren

sparred repeatedly with former

Rep. John Delaney of Mary-

land, a moderate, over how to

expand health-care coverage

and over some of their other

more progressive proposals.

Mr. Delaney suggested some of

their plans were rooted in

“fairy-tale economics.”

Ms. Warren, a senator from

Massachusetts, responded by

arguing that the best path to

beating Mr. Trump is through

big ideas, not incremental

change.

“I don’t understand why

anybody goes through all the

trouble of running for presi-

dent of the United States, just

to talk about what we really

Please turn to page A

Liberal Sens. Elizabeth

Warren and Bernie Sanders

defended themselves against

several moderates fighting to

keep their campaigns alive

during a Democratic presiden-

tial debate that showcased the

party’s divide over how far the

federal government should

reach into people’s lives.

The gathering Tuesday

night in Detroit, the first of

two this week, highlighted the

party’s differing views on am-

BYJOHNMCCORMICK

ANDTARINIPARTI

Sanders, Warren Fight Back

Against Moderates in Debate

Ten of the Democratic candidates, including Mayor Pete Buttigieg, Sen. Bernie Sanders and Sen. Elizabeth Warren, debated in Detroit.

Apple Revenue Climbs

Even as iPhone Slumps

Apple Inc. countered an-

other quarter of weak iPhone

sales with strong revenue

growth from its supporting

businesses, the latest in a se-

ries of positive results from

Silicon Valley’s tech titans.

Revenue rose 1% to $53.

billion for the three months

ended June 29, Apple said

Tuesday, an improvement

from back-to-back revenue de-

clines in the previous quarters.

Profit slid for the third

straight quarter, dropping 13%

to $10.04 billion, though per-

share earnings of $2.18 ex-

ceeded analysts’ expectations.

Apple offset a 12% decline

in iPhone sales during the pe-

riod with revenue growth in

every other area of its busi-

ness, including iPad and Mac.

Sales from services—a closely

watched business that in-

cludes App Store sales, mobile

payments and device insur-

ance—rose 13% to $11.46 bil-

lion in the period, the smallest

quarterly increase since 2015.

Please turn to page A

BYTRIPPMICKLE

Brexit Stance Takes Toll on Pound

$2.

1.

1.

1.

1.

2.

2.

1980 ’90 2000 ’

How many U.S. dollars £1 buys

Source: FactSet

Sterling reaches its

lowest ever against

the dollar

Brexit vote

leads to a fall

in the pound

Pound exits the

European Exchange

Rate Mechanism

Pound slides

as the financial

crisis takes hold

The prospect of the U.K. crashing out of the European Union without

an exit agreement has spurred heavy selling of sterling. A

PANAMA CITY, Fla.—After Hurricane Mi-

chael swept over the Florida Panhandle last

October, destroying thousands of homes and

taking dozens of lives, David Dey started look-

ing for property to buy.

The Lakeland, Fla.-based real-estate inves-

tor had been part of a group that flipped

hundreds of damaged homes in and around

New Orleans after Hurricane Katrina deluged

the city in 2005. He bought flood-damaged

homes in Houston after Hurricane Harvey in

2017. The destruction he saw in Panama City,
      Fla., was worse.

BYKONRADPUTZIER

Big Storms and Fires Clear

Path for Disaster Investors

Risk-taking buyers seek damaged properties to flip for profit

JUSTIN SULLIVAN/GETTY IMAGES

three categories, 55 pounds

short of the ship’s record. That

one was set by a 31-year old

naval officer, Lt. Brandon

Schabacker, who is embedded

as a doctor in the Marines.

“I’m coming for Scha-

backer’s record!” Sgt. Addo-

mensah said. “He should be

afraid.”

The USS Boxer, currently

patrolling the Persian Gulf, is

temporarily home to nearly

3,000 servicemen and women

Please turn to page A

Who Broke the Washing Machine?

Sailors, Marines Hit Choppy Water

iii

Karaoke, gym competitions aim to

relieve culture clash on the USS Boxer

INSIDE

 Hack casts a shadow on

cloud security............................ A

 Smartphone slump pinches

Samsung earnings................... B

 Heard on the Street: Growing

costs bite Apple profit....... B

ClevelandClinic.org/Care

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CONTENTS

Business News.. B3,

Capital Account.... A

Crossword.............. A

Heard on Street.. B

Life & Arts...... A13-

Markets.................... B

Opinion.............. A17-

Property Report B6-

Sports........................ A

Technology............... B

U.S. News............. A2-

Weather................... A

World News...... A9-

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All Rights Reserved

>

What’s

News

 Warren and Sanders de-

fended themselves against

several moderates fighting

to keep their campaigns

alive during a Democratic

presidential debate. A

 U.S.-China trade talks

resumed as negotiators in

Shanghai took tentative steps

to overcome mistrust and

limited political appetite for

a breakthrough accord. A

 Australian agencies are

scrutinizing the activities of

one of Xi’s cousins as part

of broad probes into crimi-

nal activity and alleged Chi-

nese influence-peddling. A

 Authorities have sepa-

rated over 900 migrant chil-

dren from their parents in the

past year, according to data

in an ACLU court filing. A

 California will require

presidential candidates to

hand over their tax returns to

appear on the state’s primary-

election ballot, setting up a

likely conflict with Trump. A

 North Korea fired two

more ballistic missiles, South

Korea’s militarysaid. A

 Joint Chiefs nominee

Hyten made his case to a Sen-

ate panel, denying sexual-

misconduct allegations. A

 Beijing said most of the

people sent to re-education

camps in China’s Xinjiang

region have been released,

but offered no evidence. A

T

he Capital One hack

has sent financial insti-

tutions scrambling to fig-

ure out how millions of re-

cords at one of the biggest

proponents of cloud-com-

puting were exposed. A1, A

 Apple countered an-

other quarter of weak

iPhone sales with strong

revenue growth from its

supporting businesses. A

 Samsung’s profit fell

53% as decreasing appetite

for smartphones and other

gadgets sapped demand for

its components business. B

 Huawei posted a sharp rise

in revenue despite its black-

listing by the U.S., but said re-

stricted access to U.S. technol-

ogy remains a challenge. B

 Consumers spent at a

healthy clip in June and infla-

tion remained soft, data likely

to reinforce the Fed’s expected

decision to lower rates. A

 P&G posted its highest

quarterly sales growth in

over a decade, but an $8 bil-

lion charge marred results. B

 Amazon is pressing brands

to make their packaging more

efficient, prompting vendors

to change or face fines. B

 U.S. stocks slipped amid

jitters over China trade talks.

The S&P 500 fell 0.3%. B

 Indian authorities found

the body of a coffee-chain

magnate whose disappearance

spurred an investigation. B

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