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YELLOW ***** THURSDAY, AUGUST 28, 2014 ~ VOL. CCLXIV NO. 50 WSJ.com HHHH $2.00 DJIA 17122.01 À 15.31 0.1% NASDAQ 4569.62 g 0.02% NIKKEI 15534.82 À 0.1% STOXX 600 343.33 À 0.1% 10-YR. TREAS. À 9/32 , yield 2.361% OIL $93.88 À $0.02 GOLD $1,281.90 g $1.90 EURO $1.3193 YEN 103.88 TODAY IN PERSONAL JOURNAL Fashion’s Latest Fancy: the Pocket PLUS New Trick to Find a Lower Airfare CONTENTS Business Tech.............. B4 Corp. News............ B2-3,5 Global Finance ............. C3 Heard on Street..........C8 In the Markets.............C4 Leisure & Arts............. D4 Market Data............. C5-7 Opinion.....................A11-13 Sports................................D5 Style & Travel .......... D1-3 U.S. News...................A2-6 Weather Watch.......... B6 World News....... A7-8,14 s Copyright 2014 Dow Jones & Company. All Rights Reserved > What’s News i i i World-Wide n Kiev accused Russia of funneling more armor into rebel-held areas of Ukraine and said Russian troops had seized villages in a new offensive along its southern shore. A7 n The Islamic State runs a self-sustaining economy across territory that the terror group controls in Syria and Iraq. A1 n Rebel factions in Syria, in- cluding an al Qaeda affiliate, captured a border crossing between Syria and Israel. A14 n The American campaign in Iraq has leveled off as the U.S. weighs plans for expanded airstrikes and aid drops. A14 n Pakistan’s military is close to an agreement for Sharif to cede control of security affairs and strategic foreign policy. A8 n Afghan candidate Abdullah pulled out of a U.N.-super- vised audit of the nation’s disputed presidential vote. A8 n The Israeli-Hamas truce held for its first full day. The U.S. and Israel hope a Gaza relief effort will boost mod- erate Palestinian leaders. A14 n IMF chief Lagarde was placed under formal investi- gation for negligence in a French corruption probe. A7 n The CBO cut its forecast for the U.S. government’s deficit over the next decade, citing low interest rates. A2 n A court overturned the criminal convictions of 16 Amish people in a series of beard and hair cuttings. A3 n A fatal accident at a gun range involving a 9-year-old has raised the issue of age limits at such operations. A6 i i i T he FBI is probing a com- puter-hacking attack on J.P. Morgan and as many as four other banks, in what people fa- miliar with the probe described as a significant breach of cor- porate computer security. A1 n Nonbank lenders made al- most a quarter of all mortgage loans in the first half amid a retreat from the market by some traditional banks. C1 n Alibaba posted big growth in revenue from mobile devices, which may bolster the firm’s case when pitching its IPO. B1 n Argentina’s international reserves are starting to dwin- dle after the nation’s default, adding to stress on the peso. C1 n The 30-year Treasury’s yield hit its lowest level this year as U.S. government bonds tracked higher. C4 n Stocks ended little changed. The S&P 500 edged up 0.10 point to a record 2000.12. C4 n The SEC approved rules requiring greater disclosure about loans underpinning asset-backed securities. C3 n A new DTCC entity aims to shed more light on Wall Street’s web of client relationships. C1 n California Gov. Brown and lawmakers reached a deal on a tax-credit program to stem the loss of film and TV work. A4 n A judge denied Apple’s re- quest to bar Samsung from selling devices in the U.S. that infringe on Apple patents. B4 n Nike scored a marketing coup with Michael Jordan’s appearance at Roger Federer’s U.S. Open match Tuesday. B2 Business & Finance WELLINGTON, Nev.—From his basement in a sparsely populated part of northwestern Nevada, Patrick Mulreany operates a mu- seum that attracts about four visitors a year. Its focus: semi- conductors and the shiny disks used to make them. The former Hewlett-Pack- ard Co. engi- neer’s private collection of about 120 dis- plays highlights advancements in the electronics industry. It also points to the peculiarities of a small number of people whose passion is silicon platters. “There’s a lot of stuff around here that’s one of a kind,” said Mr. Mulreany, smiling as he led a visitor down a long hall with dozens of framed displays of chips and wafers on the walls. Stamp or coin collectors can usually point to the artistic char- acteristics of their holdings. Not people who seek out semiconduc- tor wafers, which are processed in factories and diced up to yield individual chips. Though wa- fers are largely indistinguish- able from one another to the untrained eye, collectors see aesthetic merit. “If you hold them in the sunshine, they just spit rainbows right back at your face. They’re beautiful,” says Joyce Haughey, a graphics designer from Trafalgar, Ind., who keeps several thousand scrap wafers in her studio. Some enthusiasts, like Timothy Please turn to page A6 BY NICK SHCHETKO You Can’t Eat These Chips, But Some Find Silicon Addictive i i i A Select Few See Beauty in Computer Brains; Museum-Quality Industrial Artistry Silicon wafer Unexpected Guest at the Wedding Oded Balilty/Associated Press PHOTO OP: Israelis Noga and Moshiko Siho leave an army staging area after taking photos on the Israeli-Gaza border on Wednesday, the first full day of an Israeli-Hamas truce. The U.S. and Israel hope moderate Palestinian leaders will be strengthened in a multibillion-dollar relief effort. A14 The Islamic State runs a self-sustaining economy across territory it controls in Syria and Iraq, pirating oil while exacting tribute from a population of at least eight million, Arab and Western officials said, making it one of the world’s richest terror groups and an unprecedented threat. That illicit economy presents a new pic- ture of Islamic State’s financial underpin- nings. The group was once thought to de- pend on funding from Arab Gulf donors and donations from the broader Muslim world. Now, Islamic State—the former branch of al BY NOUR MALAS AND MARIA ABI-HABIB The Islamic State’s Economy of Extortion Qaeda that has swallowed parts of Iraq and Syria—is a largely self-financed organization. Money from outside donors “pales in comparison to their self-funding through criminal and terrorist activities,” a U.S. State Department official said, adding that those activities generate millions of dollars each month. For Western and Arab nations that are striving to stop Islamic State, the group’s lo- cal funding sources pose a conundrum: A clampdown on economic activity that helps fund the group, counterterrorism officials and experts said, could cause a humanitarian crisis in the already stressed areas Islamic State controls. “Can you prevent ISIS from taking assets? Not really, because they’re sitting on a lot of assets already,” said a Western counterter- rorism official. “So you must disrupt the net- work of trade. But if you disrupt trade in commodities like food, for example, then you risk starving thousands of civilians.” From Raqqa in Syria to Mosul in Iraq, Sunni radicals from the group administer an orderly extortion system of business and farm tributes, public-transport fees and pro- tection payments from Christians and other religious minorities who choose to live under Please turn to page A10 TERROR GROUP’S RICHES Cruelty Reigns Inside City Held by Militants BAGHDAD—In Islamist-held Mosul this week, a local doctor watched insurgents berate and arrest a man in a public market, accusing him of adultery. When Islamic State militants then stoned the man to death in public, the doctor chose not to watch. But many others did, and not by choice. The fighters re- peatedly screened a video re- cording of the killing on several large digital monitors they erected in the city center. More than two months after the Sunni extremist group took over on June 10, such displays of public brutality and humiliation have become part of a constant drumbeat of indignity endured by the population of Iraq’s sec- ond-largest city, according to about half a dozen residents in- terviewed by phone. A United Nations report pub- lished Wednesday said Islamic State militants, who have cap- tured large swaths of territory across Syria and Iraq, hold exe- cutions, amputations and lash- ings in public squares regularly on Fridays in territory they con- trol in northern Syria. They urge civilians, including children, to watch, according to the report. Initially, many in the Sunni- majority city of Mosul were pleased to see Islamic State fighters send the mostly Shiite Iraqi army fleeing after sectarian tensions in the country worsened under Prime Minister Nouri al- Maliki. But that enthusiasm faded fast. “People aren’t sympathizing with them anymore,” said the doctor. “People wanted to get rid of the Iraqi army. But after the Islamic State turned against Mo- sul, the people of Mosul started turning against them.” Residents say the rising re- sentment has come alongside ru- mors that homegrown militias are mustering troops in secret to Please turn to page A10 BY MATT BRADLEY Missing From Major College Stadiums: The Students Football stadiums will be packed this weekend for the kick- off of the college season. But many of the student sections are likely to have empty seats. Average student attendance at college football games is down 7.1% since 2009, according to an analysis by The Wall Street Jour- nal of stadium turnstile records from about 50 public colleges with top-division football teams. The decline was 5.6% at colleges in the five richest conferences. The decrease even at schools with entrenched football tradi- tions and national championships stands in contrast to college foot- ball’s overall popularity. Total turnout at home games of top-tier teams hit a record in 2013, while Please turn to the next page BY BEN COHEN Islamist Conflict Rebels seize border area between Syria, Israel ...... A14 Islamic State’s social-media strategy................................ A14 U.S. airstrikes ease in Iraq as new plans weighed.... A14 The Federal Bureau of Inves- tigation is probing a computer- hacking attack on J.P. Morgan Chase & Co. and as many as four other banks, in what people fa- miliar with the probe described as a significant breach of corpo- rate computer security. The timing and extent of the hacking attacks weren’t immedi- ately clear, though cybersecurity experts began probing the possi- ble J.P. Morgan breach earlier this month, according to people familiar with the investigation. Those people said the evi- dence gathered so far suggested hackers were able to make a sig- nificant foray into J.P. Morgan’s computer system. People with knowledge of the probe said it appeared between two and five U.S. financial institutions may have been affected. The names of all targeted banks couldn’t be immediately determined. J.P. Morgan isn’t seeing con- siderable fraud related to the attack, a person familiar with the matter said. The company and federal cyber investigators are in discussions as they exam- ine the apparent attack on the bank’s computer system. “Companies of our size un- fortunately experience cyberat- tacks nearly every day,” said Please turn to page A6 By Danny Yadron, Emily Glazer and Devlin Barrett Big Banks Are Hit In Cyber Attacks How college teams rank, on the field and off ..................................... D5 Another IMF Boss, Another Probe SUSPECT: Christine Lagarde is under investigation for negligence in a corruption probe from her days as France’s finance minister. A7 Thomas Samson/Agence France-Presse/Getty Images Copyright © 2013, Oracle and/or its affiliates. All rights reserved. More Enterprise SaaS Applications Than Any Other Cloud Services Provider Oracle Cloud Applications ERP Financials Procurement Projects Supply Chain HCM Human Capital Recruiting Talent CRM Sales Service Marketing C M Y K Composite Composite MAGENTA CYAN BLACK P2JW240000-5-A00100-1--------XA CL,CN,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SC,SL,SW,TU,WB,WE BG,BM,BP,CC,CH,CK,CP,CT,DN,DR,FW,HL,HW,KS,LA,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO P2JW240000-5-A00100-1--------XA
Transcript
Page 1: 2014 08 28 cmyk NA 04 - The Wall Street Journalonline.wsj.com/public/resources/documents/pageone082814.pdf · 2018-08-28 · with top-division football teams. Thedecline was5.6%atcolleges

YELLOW

* * * * * THURSDAY, AUGUST 28, 2014 ~ VOL. CCLXIV NO. 50 WSJ.com HHHH $2 .00

DJIA 17122.01 À 15.31 0.1% NASDAQ 4569.62 g 0.02% NIKKEI 15534.82 À 0.1% STOXX600 343.33 À 0.1% 10-YR. TREAS. À 9/32 , yield 2.361% OIL $93.88 À $0.02 GOLD $1,281.90 g $1.90 EURO $1.3193 YEN 103.88

TODAY IN PERSONAL JOURNAL

Fashion’s Latest Fancy: the PocketPLUS New Trick to Find a Lower Airfare

CONTENTSBusiness Tech..............B4Corp. News............B2-3,5Global Finance.............C3Heard on Street..........C8In the Markets.............C4Leisure & Arts.............D4

Market Data.............C5-7Opinion.....................A11-13Sports................................D5Style & Travel..........D1-3U.S. News...................A2-6Weather Watch..........B6World News.......A7-8,14

s Copyright 2014 Dow Jones & Company.All Rights Reserved

>

What’sNews

i i i

World-Widen Kiev accused Russia offunneling more armor intorebel-held areas of Ukraine andsaid Russian troops had seizedvillages in a new offensivealong its southern shore. A7n The Islamic State runs aself-sustaining economy acrossterritory that the terror groupcontrols in Syria and Iraq.A1n Rebel factions in Syria, in-cluding an al Qaeda affiliate,captured a border crossingbetween Syria and Israel. A14n The American campaignin Iraq has leveled off as theU.S. weighs plans for expandedairstrikes and aid drops. A14n Pakistan’s military is closeto an agreement for Sharif tocede control of security affairsand strategic foreign policy. A8nAfghan candidate Abdullahpulled out of a U.N.-super-vised audit of the nation’sdisputed presidential vote. A8n The Israeli-Hamas truceheld for its first full day. TheU.S. and Israel hope a Gazarelief effort will boost mod-erate Palestinian leaders. A14n IMF chief Lagarde wasplaced under formal investi-gation for negligence in aFrench corruption probe. A7n The CBO cut its forecastfor the U.S. government’sdeficit over the next decade,citing low interest rates. A2n A court overturned thecriminal convictions of 16Amish people in a series ofbeard and hair cuttings. A3n A fatal accident at a gunrange involving a 9-year-oldhas raised the issue of agelimits at such operations. A6

i i i

The FBI is probing a com-puter-hacking attack on J.P.

Morgan and as many as fourother banks, in what people fa-miliar with the probe describedas a significant breach of cor-porate computer security. A1n Nonbank lendersmade al-most a quarter of all mortgageloans in the first half amid aretreat from the market bysome traditional banks. C1nAlibaba posted big growthin revenue frommobile devices,which may bolster the firm’scase when pitching its IPO. B1n Argentina’s internationalreserves are starting to dwin-dle after the nation’s default,adding to stress on the peso. C1nThe 30-year Treasury’syield hit its lowest level thisyear as U.S. governmentbonds tracked higher. C4n Stocks ended little changed.The S&P 500 edged up 0.10point to a record 2000.12. C4n The SEC approved rulesrequiring greater disclosureabout loans underpinningasset-backed securities. C3n A new DTCC entity aims toshedmore light onWall Street’sweb of client relationships. C1n California Gov. Brown andlawmakers reached a deal ona tax-credit program to stemthe loss of film and TVwork.A4n A judge denied Apple’s re-quest to bar Samsung fromselling devices in the U.S. thatinfringe on Apple patents. B4n Nike scored a marketingcoup with Michael Jordan’sappearance at Roger Federer’sU.S. Open match Tuesday. B2

Business&Finance

WELLINGTON, Nev.—From hisbasement in a sparsely populatedpart of northwestern Nevada,Patrick Mulreany operates a mu-seum that attracts about fourvisitors a year. Its focus: semi-conductors and the shiny disksused to makethem.

The formerHewlett-Pack-ard Co. engi-neer’s privatecollection ofabout 120 dis-plays highlightsadvancementsin the electronics industry. It alsopoints to the peculiarities of asmall number of people whosepassion is silicon platters.

“There’s a lot of stuff aroundhere that’s one of a kind,” saidMr. Mulreany, smiling as he led avisitor down a long hall with

dozens of framed displays ofchips and wafers on the walls.

Stamp or coin collectors canusually point to the artistic char-acteristics of their holdings. Notpeople who seek out semiconduc-tor wafers, which are processedin factories and diced up to yieldindividual chips.

Though wa-fers are largelyindistinguish-able from oneanother to theuntrained eye,collectors seeaesthetic merit.

“If you holdthem in the

sunshine, they just spit rainbowsright back at your face. They’rebeautiful,” says Joyce Haughey, agraphics designer from Trafalgar,Ind., who keeps several thousandscrap wafers in her studio.

Some enthusiasts, like TimothyPleaseturntopageA6

BY NICK SHCHETKO

You Can’t Eat These Chips,But Some Find Silicon Addictive

i i i

A Select Few See Beauty in Computer Brains;Museum-Quality Industrial Artistry

Silicon wafer

Unexpected Guest at the Wedding

OdedBa

lilty/A

ssociatedPress

PHOTO OP: Israelis Noga and Moshiko Siho leave an army staging area after taking photos on the Israeli-Gaza border on Wednesday, the first fullday of an Israeli-Hamas truce. The U.S. and Israel hope moderate Palestinian leaders will be strengthened in a multibillion-dollar relief effort. A14

The Islamic State runs a self-sustainingeconomy across territory it controls in Syriaand Iraq, pirating oil while exacting tributefrom a population of at least eight million,Arab and Western officials said, making itone of the world’s richest terror groups andan unprecedented threat.

That illicit economy presents a new pic-ture of Islamic State’s financial underpin-nings. The group was once thought to de-pend on funding from Arab Gulf donors anddonations from the broader Muslim world.Now, Islamic State—the former branch of al

BY NOUR MALAS AND MARIA ABI-HABIB

The Islamic State’sEconomy of Extortion

Qaeda that has swallowed parts of Iraq andSyria—is a largely self-financed organization.

Money from outside donors “pales incomparison to their self-funding throughcriminal and terrorist activities,” a U.S. StateDepartment official said, adding that thoseactivities generate millions of dollars eachmonth.

For Western and Arab nations that arestriving to stop Islamic State, the group’s lo-cal funding sources pose a conundrum: Aclampdown on economic activity that helpsfund the group, counterterrorism officialsand experts said, could cause a humanitariancrisis in the already stressed areas Islamic

State controls.“Can you prevent ISIS from taking assets?

Not really, because they’re sitting on a lot ofassets already,” said a Western counterter-rorism official. “So you must disrupt the net-work of trade. But if you disrupt trade incommodities like food, for example, then yourisk starving thousands of civilians.”

From Raqqa in Syria to Mosul in Iraq,Sunni radicals from the group administer anorderly extortion system of business andfarm tributes, public-transport fees and pro-tection payments from Christians and otherreligious minorities who choose to live under

PleaseturntopageA10

TERROR GROUP’S RICHES

Cruelty Reigns Inside CityHeld byMilitantsBAGHDAD—In Islamist-held

Mosul this week, a local doctorwatched insurgents berate andarrest a man in a public market,accusing him of adultery.

When Islamic State militantsthen stoned the man to death inpublic, the doctor chose not towatch. But many others did, andnot by choice. The fighters re-peatedly screened a video re-cording of the killing on severallarge digital monitors theyerected in the city center.

More than two months after

the Sunni extremist group tookover on June 10, such displays ofpublic brutality and humiliationhave become part of a constantdrumbeat of indignity enduredby the population of Iraq’s sec-ond-largest city, according to

about half a dozen residents in-terviewed by phone.

A United Nations report pub-lished Wednesday said IslamicState militants, who have cap-tured large swaths of territoryacross Syria and Iraq, hold exe-cutions, amputations and lash-ings in public squares regularlyon Fridays in territory they con-trol in northern Syria. They urgecivilians, including children, towatch, according to the report.

Initially, many in the Sunni-majority city of Mosul werepleased to see Islamic Statefighters send the mostly Shiite

Iraqi army fleeing after sectariantensions in the country worsenedunder Prime Minister Nouri al-Maliki. But that enthusiasmfaded fast.

“People aren’t sympathizingwith them anymore,” said thedoctor. “People wanted to get ridof the Iraqi army. But after theIslamic State turned against Mo-sul, the people of Mosul startedturning against them.”

Residents say the rising re-sentment has come alongside ru-mors that homegrown militiasare mustering troops in secret to

PleaseturntopageA10

BY MATT BRADLEY

Missing FromMajor CollegeStadiums:The Students

Football stadiums will bepacked this weekend for the kick-off of the college season. Butmany of the student sections arelikely to have empty seats.

Average student attendance atcollege football games is down7.1% since 2009, according to ananalysis by The Wall Street Jour-nal of stadium turnstile recordsfrom about 50 public collegeswith top-division football teams.The decline was 5.6% at collegesin the five richest conferences.

The decrease even at schoolswith entrenched football tradi-tions and national championshipsstands in contrast to college foot-ball’s overall popularity. Totalturnout at home games of top-tierteams hit a record in 2013, while

Pleaseturntothenextpage

BY BEN COHEN

Islamist Conflict Rebels seize border area

between Syria, Israel ...... A14 Islamic State’s social-media

strategy................................ A14 U.S. airstrikes ease in Iraq

as new plans weighed.... A14

The Federal Bureau of Inves-tigation is probing a computer-hacking attack on J.P. MorganChase & Co. and as many as fourother banks, in what people fa-miliar with the probe describedas a significant breach of corpo-rate computer security.

The timing and extent of thehacking attacks weren’t immedi-ately clear, though cybersecurityexperts began probing the possi-ble J.P. Morgan breach earlierthis month, according to peoplefamiliar with the investigation.

Those people said the evi-dence gathered so far suggestedhackers were able to make a sig-nificant foray into J.P. Morgan’scomputer system. People withknowledge of the probe said itappeared between two and fiveU.S. financial institutions mayhave been affected. The namesof all targeted banks couldn’t beimmediately determined.

J.P. Morgan isn’t seeing con-siderable fraud related to theattack, a person familiar withthe matter said. The companyand federal cyber investigatorsare in discussions as they exam-ine the apparent attack on thebank’s computer system.

“Companies of our size un-fortunately experience cyberat-tacks nearly every day,” said

PleaseturntopageA6

By Danny Yadron,Emily Glazer

and Devlin Barrett

Big BanksAre HitIn CyberAttacks

How college teams rank, on thefield and off..................................... D5

Another IMF Boss,Another Probe

SUSPECT: Christine Lagarde isunder investigation for negligencein a corruption probe from her daysas France’s finance minister. A7

Thom

asSa

mson/AgenceFrance-Presse/Getty

Images

Copyright © 2013, Oracle and/or its affiliates. All rights reserved.

More Enterprise SaaS ApplicationsThan Any Other Cloud Services Provider

Oracle CloudApplications

ERPFinancialsProcurementProjectsSupply Chain

HCMHuman CapitalRecruitingTalent

CRMSalesServiceMarketing

CM Y K CompositeCompositeMAGENTA CYAN BLACK

P2JW240000-5-A00100-1--------XA CL,CN,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SC,SL,SW,TU,WB,WEBG,BM,BP,CC,CH,CK,CP,CT,DN,DR,FW,HL,HW,KS,LA,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO

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