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YELLOW ****** FRIDAY, SEPTEMBER 5, 2014 ~ VOL. CCLXIV NO. 56 WSJ.com HHHH $2.00 DJIA 17069.58 g 8.70 0.1% NASDAQ 4562.29 g 0.2% NIKKEI 15676.18 g 0.3% STOXX 600 348.89 À 1.1% 10-YR. TREAS. g 11/32 , yield 2.448% OIL $94.45 g $1.09 GOLD $1,265.10 g $3.80 EURO $1.2944 YEN 105.26 TODAY IN MANSION Millionaire House Swap ARENA Chasing Oscars: Fall Film Preview Jim Scheiner CONTENTS Commodities............... C7 Corporate News B2,3,5 Global Finance............ C3 Heard on the Street C8 In the Markets........... C4 Letters to the Editor A12 Markets Dashboard C5 Opinion................... A11-13 Sports............................ D12 Technology................... B4 U.S. News................. A2-5 Weather Watch........ B6 World News ........... A6-9 s Copyright 2014 Dow Jones & Company. All Rights Reserved > What’s News i i i World-Wide n American allies including the U.K. and France said they would help form an interna- tional military coalition to fight a growing threat from Islamic State militants. A1 n A British-backed team has been quietly investigat- ing Islamic State for war crimes since January. A8 n The U.S. and Europe moved to toughen sanctions on Mos- cow over Ukraine, raising pres- sure ahead of peace talks. A6 n A hacker broke into part of the HealthCare.gov web- site in July and uploaded malicious software. A1 n A U.S. appeals court said it would rehear a case chal- lenging insurance subsidies in the federal health law. A2 n Virginia ex-Gov. McDonnell and his wife were found guilty of a slate of public corruption charges. A4 n GOP figures say Jeb Bush’s aides have been spreading word to avoid committing to other possible presidential bids. A4 n A federal judge blocked new early-voting curbs in Ohio, ruling such efforts ap- pear to be unconstitutional. A4 n Senate Republicans raced to shore up the campaign of Kansas Sen. Roberts, a sud- denly vulnerable incumbent. A4 n USAID said it would spend nearly $100 million to fight Ebola in West Africa. A9 n A pharmacist linked to a deadly 2012 outbreak of meningitis was arrested. A5 n Died: Joan Rivers, 81, co- median with acerbic wit. A5 i i i T he ECB unveiled rate cuts and new stimulus plans in a bid to combat too-low infla- tion, despite opposition from Germany’s central bank. A1, A6 Investors sent European stocks soaring and punished the euro. U.S. stocks reversed early gains to end lower. C1, C4 n BP was grossly negligent in the Deepwater Horizon di- saster, a judge ruled, a decision that could cost the firm up to $18 billion in pollution fines. B1 n The U.S. trade deficit nar- rowed in July, reflecting stronger global demand for American goods. A2 n A panel of regulators pro- posed giving MetLife tougher government oversight as a “sys- temically important” firm. C1 n The FDA approved a Merck cancer drug that is designed to unleash the body’s immune system against tumors. B1 n Apple said it plans new steps to keep hackers out of user accounts after nude photos of celebrities were leaked. B1 n Apple plans to include wire- less technology in its smartwatch that would allow the device to make mobile payments. B1 n Tesla confirmed it would build a $5 billion advanced battery factory in Nevada. B5 n Fast-food workers demon- strated in cities nationwide in a push for higher wages. B3 n Steven Spielberg hired ca- ble-television veteran Michael Wright to run DreamWorks. B6 n Nvidia sued Samsung and Qualcomm, accusing them of infringing patents. B3 Business & Finance FRANKFURT—In an effort to keep too-low inflation from de- railing the eurozone’s weak economy, the European Central Bank surprised financial markets with a cut in interest rates and new stimulus plans, despite op- position from Germany’s power- ful central bank. The moves on Thursday pum- meled the euro and boosted Eu- ropean stock and bond prices. They also highlighted the in- creasingly diverging paths be- tween central banks in the U.S. and U.K., which are eyeing tighter policies, and the ECB and other central banks in Continen- tal Europe that are ramping up their stimulus efforts. The U.S. and U.K. have had more vigorous, jobs-rich expansions than the eurozone. Their inflation rates are also closer to the 2% pace that major central banks consider opti- mal for their economies. After the rate cut was an- nounced, the euro fell 1.6% against the dollar to $1.29, a 14-month low. The Stoxx Europe 600 surged 1.1%, and the U.K.’s FTSE 100 rose 0.1%, closing in on its highest level in its 30-year history. ECB President Mario Draghi detailed a litany of worrying de- velopments that compelled the central bank to act, from stagnant growth to weakening inflation. “In August, we see a worsen- ing of the medium-term inflation outlook, a downward movement in all indicators of inflation ex- pectations,” he said at a news conference. “Most, if not all, the data we got in August on GDP and inflation showed that the re- covery was losing momentum.” Germany’s finance minister Please turn to page A6 BY BRIAN BLACKSTONE Europe’s Bank Primes Pump ECB Cuts Rates and Launches New Stimulus, Surprising Markets; Germans Dissent NEWPORT, Wales—American allies including the U.K. and France said they would help form an international military coalition to fight a growing threat from Is- lamic State militants. While members of the North Atlantic Treaty Organization meeting here on Thursday were weighing what role they would play, U.S. officials urged them to commit to a strategy that in- cludes providing more arms to Kurdish forces fighting the Isla- mist insurgents in northern Iraq. The American plan also en- tails choking off the financial re- sources the militants rely on to pay their fighters, curbing the flow of foreign extremists and backing Arab forces capable of battling Islamic State. One of the most impassioned pleas at the NATO summit came from King Abdullah of Jordan, who implored world leaders to create a “coalition of the committed” to fight Islamic State, said partici- pants in the private meetings. President Barack Obama’s push represents the most ambi- tious U.S. effort to create an in- ternational coalition to combat an extremist threat since Presi- dent George W. Bush enlisted dozens of nations to fight al Qaeda and its Taliban allies in Afghanistan after the Sept. 11, 2001, attacks. U.S. officials said they were expecting key NATO allies—in- cluding the U.K., France and Please turn to page A8 BY DION NISSENBAUM AND STACY MEICHTRY Coalition Emerges To Battle Militants Broken-Marriage Defense Fails Ex-Governor, Wife in Corruption Trial Steve Helber/Associated Press (Mr. McDonnell); Richmond Times Dispatch/Associated Press (Ms. McDonnell) RIO BRANCO, Brazil—Marina Silva started life as the child of illiterate rubber tappers trudg- ing malarial jungles to collect latex sap in a remote corner of Brazil’s Amazon. She was bap- tized in politics confronting gun-toting cattle ranchers sent to burn down her forest home. Now, the 56-year-old activ- ist-turned-senator may become president of Latin America’s biggest nation. Polls show Ms. Silva would win enough votes to force a runoff against incumbent Presi- dent Dilma Rousseff in Brazil’s Oct. 5 election, and win in the second round three weeks later. It is a major shift from a few weeks ago, when Ms. Rousseff appeared headed for re-election and Ms. Silva wasn’t in the race. But Ms. Silva has soared in the polls since re- placing a Socialist Party candidate killed in a plane crash last month. BY JOHN LYONS RIDING A WAVE Outsider From the Amazon Shakes Up Brazilian Politics The surging Silva candidacy carries enormous unknowns for the world’s seventh biggest econ- omy, now coming to grips with the end of a yearslong commod- ity boom. Ms. Silva’s supporters say she is the reformer Brazil needs to stamp out cronyism and other political ills that are sti- fling development. Critics see her as an outlier who would be chewed up by Brazil’s Darwinian multiparty system, adding even more uncertainty to the outlook for the emerging economy. “She is riding a great wave of disenchantment with a political system that everyone agrees needs reforming, but there are real questions about whether she would have the conditions to ac- tually govern the country,” said Tereza Cruvinel, a political analyst and writer based in Brasília. Ms. Silva’s candidacy is channeling voter anxiety amid a jarring reversal of Brazil’s prospects. In 2010, Please turn to page A10 Sources: Lacovara Laboratory; Drexel University; Illustration: Jennifer Hall The Wall Street Journal SIZE AND WEIGHT COMPARISON Big, Bigger, Biggest? Researchers discovered fossils of a 65-ton dinosaur in Argentina that is one of the largest land animals ever known. About 85 feet long and more than two stories tall, the creature likely outweighed any other dinosaur. A5 DREADNOUGHTUS SCHRANI Boeing 737-900 Tyrannosaurus rex African elephant 70 TONS 60 50 40 30 20 10 0 65 TONS CONVICTED: A jury found Bob and Maureen McDonnell guilty of public corruption, rejecting the couple’s defense that their marriage was too broken for them to conspire. Mr. and Mrs. McDonnell, who have five children and are both 60 years old, face lengthy prison terms and hefty fines. A4 A hacker broke into part of the HealthCare.gov insurance en- rollment website in July and up- loaded malicious software, ac- cording to federal officials. Investigators found no evi- dence that consumers’ personal data were taken or viewed dur- ing the breach, federal officials said. The hacker appears only to have gained access to a server used to test code for Health- Care.gov, the officials said. The server was connected to more sensitive parts of the web- site that had better security pro- tections, the officials said. That means it would have been possi- ble, if difficult, for the intruder to move through the network and try to view more protected information, an official at the Department of Health and Hu- man Services said. There is no indication that happened, and in- vestigators suspect the hacker didn’t intend to target a Health- Care.gov server. The prospect nevertheless raised concerns among federal officials because of how easily the intruder gained access and how much damage could have occurred. The HHS official said the at- tack appears to mark the first successful intrusion into the website, where millions of Amer- icans bought insurance starting last year under the 2010 Afford- able Care Act. The agency dis- covered the attack last week. “Our review indicates that the server did not contain consumer personal information; data was Please turn to the next page BY DANNY YADRON Hacker Breaches Part Of Federal Health Site SURREY, ENGLAND—Jill Vick- ers spends three hours a day tending her lush, hydrangea- trimmed garden. So the sight of snails munching holes in her plants makes her mad. Her usual way of coping is to toss them in the compost bin. But on occasion, the 62-year-old retired teacher resorts to some rather unneighborly behavior: “I chuck them that way,” she said one evening, quietly motioning toward the house next door. Throwing mollusks over the garden wall might seem the an- tithesis of Britishness, but after months of unusually warm and wet weather, the U.K. is suffer- ing an onslaught of snails—and of snail tossing. A Royal Horti- cultural Society survey this past spring found that one in five gardeners admitted chucking a snail into the neighbor’s garden. Some said they throw slugs, too. It isn’t clear how the practice began, but many exasperated gardeners say they resort to it after watching the slimy critters devour their lettuce and dahlias. Some say deporting the snails with a toss seems more humane than crushing or poisoning them would be. “I just throw them over the fence,” says Freddie Beaumont, a hairdresser who lives near the town of Reading. “You throw them far enough away and you hope they don’t come back.” The habit can cause neighborly tempers to flare—and can lead to Please turn to page A10 BY JEANNE WHALEN The English Gardener’s Slimy Secret: Snail Chucking i i i Pesky Mollusks Are Tossed Into Neighbors’ Yards; ‘Very Naughty’ Marina Silva Zuma Press Weak demand blunts efforts to revive Europe’s economy ......... A6 Cut in interest rates sends euro plummeting....................................... C1 Appeals court to rehear case on insurance subsidies ..................... A2 More secure credit-cards .......... C1 U.S., Europe move to toughen sanctions against Russia......... A6 C M Y K Composite Composite MAGENTA CYAN BLACK P2JW248000-6-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 P2JW248000-6-A00100-1--------XA
Transcript
Page 1: 2014 09 05 cmyk NA 04 - The Wall Street Journalonline.wsj.com/public/resources/documents/PageOne090514.pdf2014_09_05_cmyk_NA_04 Author: paintond Created Date: 9/5/2014 4:03:08 AM ...

YELLOW

* * * * * * FRIDAY, SEPTEMBER 5, 2014 ~ VOL. CCLXIV NO. 56 WSJ.com HHHH $2 .00

DJIA 17069.58 g 8.70 0.1% NASDAQ 4562.29 g 0.2% NIKKEI 15676.18 g 0.3% STOXX600 348.89 À 1.1% 10-YR. TREAS. g 11/32 , yield 2.448% OIL $94.45 g $1.09 GOLD $1,265.10 g $3.80 EURO $1.2944 YEN 105.26

TODAY IN MANSION

Millionaire House SwapARENA Chasing Oscars: Fall Film Preview

JimScheiner

CONTENTSCommodities............... C7Corporate News B2,3,5Global Finance............ C3Heard on the Street C8In the Markets........... C4Letters to the Editor A12

Markets Dashboard C5Opinion................... A11-13Sports............................ D12Technology................... B4U.S. News................. A2-5Weather Watch........ B6World News........... A6-9

s Copyright 2014 Dow Jones & Company.All Rights Reserved

>

What’sNews

i i i

World-Widen American allies includingthe U.K. and France said theywould help form an interna-tional military coalition tofight a growing threat fromIslamic State militants. A1n A British-backed teamhas been quietly investigat-ing Islamic State for warcrimes since January. A8nThe U.S. and Europemovedto toughen sanctions on Mos-cow over Ukraine, raising pres-sure ahead of peace talks. A6n A hacker broke into partof the HealthCare.gov web-site in July and uploadedmalicious software. A1n A U.S. appeals court saidit would rehear a case chal-lenging insurance subsidiesin the federal health law. A2nVirginia ex-Gov. McDonnelland his wife were foundguilty of a slate of publiccorruption charges. A4nGOP figures say Jeb Bush’saides have been spreadingwordto avoid committing to otherpossible presidential bids. A4n A federal judge blockednew early-voting curbs inOhio, ruling such efforts ap-pear to be unconstitutional. A4n Senate Republicans racedto shore up the campaign ofKansas Sen. Roberts, a sud-denly vulnerable incumbent.A4nUSAID said it would spendnearly $100 million to fightEbola in West Africa. A9nApharmacist linked to adeadly 2012 outbreak ofmeningitis was arrested. A5n Died: Joan Rivers, 81, co-median with acerbic wit. A5

i i i

The ECB unveiled rate cutsand new stimulus plans in

a bid to combat too-low infla-tion, despite opposition fromGermany’s central bank. A1, A6 Investors sent Europeanstocks soaring and punishedthe euro. U.S. stocks reversedearly gains to end lower. C1, C4n BP was grossly negligentin the Deepwater Horizon di-saster, a judge ruled, a decisionthat could cost the firm up to$18 billion in pollution fines. B1n The U.S. trade deficit nar-rowed in July, reflectingstronger global demand forAmerican goods. A2n A panel of regulators pro-posed giving MetLife toughergovernment oversight as a “sys-temically important” firm. C1n The FDA approved a Merckcancer drug that is designedto unleash the body’s immunesystem against tumors. B1nApple said it plans new stepsto keep hackers out of useraccounts after nude photos ofcelebrities were leaked. B1nApple plans to include wire-less technology in its smartwatchthat would allow the device tomake mobile payments. B1nTesla confirmed it wouldbuild a $5 billion advancedbattery factory in Nevada. B5n Fast-food workers demon-strated in cities nationwide ina push for higher wages. B3n Steven Spielberg hired ca-ble-television veteran MichaelWright to run DreamWorks. B6nNvidia sued Samsung andQualcomm, accusing them ofinfringing patents. B3

Business&Finance

FRANKFURT—In an effort tokeep too-low inflation from de-railing the eurozone’s weakeconomy, the European CentralBank surprised financial marketswith a cut in interest rates andnew stimulus plans, despite op-position from Germany’s power-ful central bank.

The moves on Thursday pum-meled the euro and boosted Eu-ropean stock and bond prices.

They also highlighted the in-creasingly diverging paths be-tween central banks in the U.S.and U.K., which are eyeingtighter policies, and the ECB andother central banks in Continen-tal Europe that are ramping uptheir stimulus efforts.

The U.S. and U.K. have hadmorevigorous, jobs-rich expansions thanthe eurozone. Their inflation ratesare also closer to the 2% pace thatmajor central banks consider opti-mal for their economies.

After the rate cut was an-nounced, the euro fell 1.6% againstthe dollar to $1.29, a 14-monthlow. The Stoxx Europe 600 surged1.1%, and the U.K.’s FTSE 100 rose0.1%, closing in on its highest levelin its 30-year history.

ECB President Mario Draghidetailed a litany of worrying de-velopments that compelled thecentral bank to act, from stagnantgrowth to weakening inflation.

“In August, we see a worsen-ing of the medium-term inflation

outlook, a downward movementin all indicators of inflation ex-pectations,” he said at a newsconference. “Most, if not all, thedata we got in August on GDPand inflation showed that the re-covery was losing momentum.”

Germany’s finance ministerPleaseturntopageA6

BY BRIAN BLACKSTONE

Europe’s Bank Primes PumpECB Cuts Rates and Launches New Stimulus, Surprising Markets; Germans Dissent

NEWPORT, Wales—Americanallies including the U.K. andFrance said they would help forman international military coalitionto fight a growing threat from Is-lamic State militants.

While members of the NorthAtlantic Treaty Organizationmeeting here on Thursday wereweighing what role they wouldplay, U.S. officials urged them tocommit to a strategy that in-cludes providing more arms toKurdish forces fighting the Isla-mist insurgents in northern Iraq.

The American plan also en-tails choking off the financial re-sources the militants rely on topay their fighters, curbing theflow of foreign extremists andbacking Arab forces capable ofbattling Islamic State.

One of the most impassionedpleas at the NATO summit camefromKing Abdullah of Jordan, whoimplored world leaders to create a“coalition of the committed” tofight Islamic State, said partici-pants in the private meetings.

President Barack Obama’spush represents the most ambi-tious U.S. effort to create an in-ternational coalition to combatan extremist threat since Presi-dent George W. Bush enlisteddozens of nations to fight alQaeda and its Taliban allies inAfghanistan after the Sept. 11,2001, attacks.

U.S. officials said they wereexpecting key NATO allies—in-cluding the U.K., France and

PleaseturntopageA8

BY DION NISSENBAUMAND STACY MEICHTRY

CoalitionEmergesToBattleMilitants

Broken-Marriage Defense Fails Ex-Governor, Wife in Corruption Trial

SteveHelber/AssociatedPress(M

r.McD

onnell);R

ichm

ondTimes

Dispatch/A

ssociatedPress(M

s.McD

onnell)

RIO BRANCO, Brazil—MarinaSilva started life as the child ofilliterate rubber tappers trudg-ing malarial jungles to collectlatex sap in a remote corner ofBrazil’s Amazon. She was bap-tized in politics confrontinggun-toting cattle ranchers sentto burn down her forest home.

Now, the 56-year-old activ-ist-turned-senator may becomepresident of Latin America’sbiggest nation.

Polls show Ms. Silva wouldwin enough votes to force arunoff against incumbent Presi-dent Dilma Rousseff in Brazil’sOct. 5 election, and win in thesecond round three weeks later.It is a major shift from a fewweeks ago, when Ms. Rousseff appeared headedfor re-election and Ms. Silva wasn’t in the race.But Ms. Silva has soared in the polls since re-placing a Socialist Party candidate killed in aplane crash last month.

BY JOHN LYONS

RIDING A WAVE

Outsider From the AmazonShakes Up Brazilian Politics

The surging Silva candidacycarries enormous unknowns forthe world’s seventh biggest econ-omy, now coming to grips withthe end of a yearslong commod-ity boom. Ms. Silva’s supporterssay she is the reformer Brazilneeds to stamp out cronyism andother political ills that are sti-fling development. Critics seeher as an outlier who would bechewed up by Brazil’s Darwinianmultiparty system, adding evenmore uncertainty to the outlookfor the emerging economy.

“She is riding a great wave ofdisenchantment with a politicalsystem that everyone agreesneeds reforming, but there arereal questions about whether shewould have the conditions to ac-tually govern the country,” said

Tereza Cruvinel, a political analyst and writer basedin Brasília.

Ms. Silva’s candidacy is channeling voter anxietyamid a jarring reversal of Brazil’s prospects. In 2010,

PleaseturntopageA10

Sources: Lacovara Laboratory; Drexel University; Illustration: Jennifer HallThe Wall Street Journal

SIZE ANDWEIGHT COMPARISON

Big, Bigger, Biggest?Researchers discovered fossils of a 65-ton dinosaur in Argentina that isone of the largest land animals ever known. About 85 feet long and morethan two stories tall, the creature likely outweighed anyother dinosaur. A5

DREADNOUGHTUSSCHRANI

Boeing737-900

Tyrannosaurusrex

Africanelephant

70 TONS6050403020100

65TONS

CONVICTED: A jury found Bob and Maureen McDonnell guilty of public corruption, rejecting the couple’s defense that their marriage was too brokenfor them to conspire. Mr. and Mrs. McDonnell, who have five children and are both 60 years old, face lengthy prison terms and hefty fines. A4

A hacker broke into part ofthe HealthCare.gov insurance en-rollment website in July and up-loaded malicious software, ac-cording to federal officials.

Investigators found no evi-dence that consumers’ personaldata were taken or viewed dur-ing the breach, federal officialssaid. The hacker appears only tohave gained access to a serverused to test code for Health-Care.gov, the officials said.

The server was connected tomore sensitive parts of the web-site that had better security pro-tections, the officials said. Thatmeans it would have been possi-ble, if difficult, for the intruderto move through the networkand try to view more protectedinformation, an official at theDepartment of Health and Hu-man Services said. There is no

indication that happened, and in-vestigators suspect the hackerdidn’t intend to target a Health-Care.gov server.

The prospect neverthelessraised concerns among federalofficials because of how easilythe intruder gained access andhow much damage could haveoccurred.

The HHS official said the at-tack appears to mark the firstsuccessful intrusion into thewebsite, where millions of Amer-icans bought insurance startinglast year under the 2010 Afford-able Care Act. The agency dis-covered the attack last week.

“Our review indicates that theserver did not contain consumerpersonal information; data was

Pleaseturntothenextpage

BY DANNY YADRON

Hacker Breaches PartOf Federal Health Site

SURREY, ENGLAND—Jill Vick-ers spends three hours a daytending her lush, hydrangea-trimmed garden. So the sight ofsnails munching holes in herplants makes her mad.

Her usual way of coping is totoss them in the compost bin.But on occasion, the 62-year-oldretired teacher resorts to somerather unneighborly behavior: “Ichuck them that way,” she saidone evening, quietly motioningtoward the house next door.

Throwing mollusks over thegarden wall might seem the an-tithesis of Britishness, but after

months of unusually warm andwet weather, the U.K. is suffer-ing an onslaught of snails—andof snail tossing. A Royal Horti-cultural Society survey this pastspring found that one in fivegardeners admitted chucking asnail into the neighbor’s garden.

Some said they throw slugs, too.It isn’t clear how the practice

began, but many exasperatedgardeners say they resort to itafter watching the slimy crittersdevour their lettuce and dahlias.Some say deporting the snailswith a toss seems more humanethan crushing or poisoning themwould be.

“I just throw them over thefence,” says Freddie Beaumont, ahairdresser who lives near thetown of Reading. “You throwthem far enough away and youhope they don’t come back.”

The habit can cause neighborlytempers to flare—and can lead to

PleaseturntopageA10

BY JEANNE WHALEN

The English Gardener’s Slimy Secret: Snail Chuckingi i i

Pesky Mollusks Are Tossed Into Neighbors’ Yards; ‘Very Naughty’

Marina Silva

ZumaPress

Weak demand blunts efforts torevive Europe’s economy......... A6

Cut in interest rates sends europlummeting....................................... C1

Appeals court to rehear case oninsurance subsidies..................... A2

More secure credit-cards.......... C1

U.S., Europe move to toughensanctions against Russia......... A6

CM Y K CompositeCompositeMAGENTA CYAN BLACK

P2JW248000-6-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

P2JW248000-6-A00100-1--------XA

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