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YELLOW ***** FRIDAY, SEPTEMBER 12, 2014 ~ VOL. CCLXIV NO. 62 WSJ.com HHHH $2.00 DJIA 17049.00 g 19.71 0.1% NASDAQ 4591.81 À 0.1% NIKKEI 15909.20 À 0.8% STOXX 600 344.27 g 0.1% 10-YR. TREAS. À 1/32 , yield 2.531% OIL $92.83 À $1.16 GOLD $1,237.40 g $6.10 EURO $1.2925 YEN 107.10 TODAY IN MANSION Where the Foodies Live ARENA Superheroes Invade the Living Room tomorrow in WSJ. MAGAZINE men's style issue CONTENTS Business Tech.............. B4 Corp. News............ B2-3,5 Global Finance ............. C3 Heard on Street..........C8 In the Markets.............C4 Mansion................... M1-14 Market Data............. C5-7 Opinion.....................A11-13 Sports................................D9 Theater.............................D8 U.S. News...................A2-6 Weather Watch.......... B5 World News ............. A7-9 s Copyright 2014 Dow Jones & Company. All Rights Reserved > What’s News i i i World-Wide n Washington’s allies abroad didn’t make clear how far they would go to join mili- tary operations against Is- lamic State even as they pledged their support. A1 n Defense officials said the expanded campaign against the militants will unfold grad- ually over several months. A7 n Congress broadly expressed support for Obama’s plan to aid Syrian rebels fighting Islamic State, but hurdles emerged. A7 n Syrian Islamist rebels freed 45 U.N. peacekeepers from Fiji who were captured two weeks ago in the Golan Heights. A7 n Homeland Security is plan- ning to create a military-like chain of command to police the Southwest U.S. border. A3 n The U.S. health-care in- dustry saw revenue rebound last quarter, aided by spend- ing under the health law. A4 n A judge ruled out convict- ing Pistorius of murder but opened the door to a possi- ble manslaughter verdict. A9 n Opponents of independence for Scotland gained strength in a poll that showed the anti-se- cession vote reaching 50%. A8 n Goodell didn’t pursue the Rice incident as vigorously as he might have out of re- spect for Rice’s now-wife, ac- cording to one NFL owner. D9 n School systems are improv- ing but states aren’t doing enough to keep the U.S. compet- itive globally, a report said. A6 n Fossils have revealed that the largest known predator ever to walk the earth was also an excellent swimmer. A6 i i i S anctions against Russia have entangled Exxon in U.S. foreign policy and threaten one of the company’s best chances to find and tap much- needed supplies of crude. A1 n Yahoo faced the threat of big U.S. fines in 2008 amid a secret legal battle over re- quests for customer data. B1 n RadioShack warned that it would soon run out of cash and could be forced to turn to bankruptcy court. B1 n Gasoline prices have tum- bled from highs hit in June and markets are signaling even more relief at the pump. C1 n J.P. Morgan’s Dimon has pushed though weeks of can- cer treatment while staying active in the bank’s business. A1 n Banks pitching Alibaba’s IPO are trying to convince fund managers that the firm’s shares are a bargain. C1 n Federal prosecutors are conducting a criminal probe into the rise and fall of shares in Cynk Technology. C1 n American expats are be- ing cut off by banks leery of the U.S. crackdown on money laundering and tax evasion. C1 n Chinese regulators levied fines against local arms of Audi and Chrysler over the prices of cars and parts. B1 n The Dow industrials slipped 19.71 points to 17049.00 but other major in- dexes eked out small gains. C4 n Activist investors are rais- ing billions in an effort to take advantage of their increas- ing clout in boardrooms. C1 Business & Finance A day after President Barack Obama outlined a strategy to com- bat Islamic State militants, Wash- ington’s international allies didn’t make clear how far they would go to join military operations even as they pledged their support. Mr. Obama vowed to “de- grade and ultimately destroy” the extremist group which has grabbed territory across Iraq and Syria and harbors ambitions for more. After a day of consult- ing with Secretary of State John Kerry in Saudi Arabia, most of Iraq’s neighbors signed onto a statement of support. In the communiqué, leading Arab states committed to work- ing with the U.S. to cut off the flow of foreign fighters and funds into the Islamic State. Turkey—which has opposed al- lowing the U.S. to use bases on its territory for airstrikes against Is- lamic State—didn’t sign the com- muniqué. Nearly 50 Turkish diplo- mats are being held by militants in the Iraqi city of Mosul, which Is- lamic State captured in June. In Europe, Germany said it would not take part in airstrikes, while the U.K. said it wasn’t ruling out participation. Several dozen European and other countries agreed during this month’s North Atlantic Treaty Organization sum- mit in Wales to support the cam- paign, but as of Thursday, many were still weighing the specific Please turn to page A7 BY MARIA ABI-HABIB AND JAY SOLOMON Allies Vow Support, Offer Few Specifics When Exxon Mobil Corp. Chief Executive Rex Tillerson de- tailed a deal to drill for oil in Russia’s Arctic Sea two years ago, he predicted that the proj- ect would strengthen the ties be- tween the U.S. and Russia. Instead, Exxon has wound up in the cross hairs of U.S. foreign policy, which could threaten one of the company’s best chances to find and tap significant—and much needed—amounts of crude oil. The U.S. on Thursday an- nounced new sanctions targeting Russia’s financial, defense and energy sectors in a bid to punish the Kremlin for stoking the mili- tary conflict in Ukraine. Details of the sanctions, designed to match new measures imposed by the European Union, are set to be released Friday. A U.S. official said the new penalties would affect Exxon’s current drilling in the icy Kara Sea with its Kremlin-controlled partner, OAO Rosneft, though the extent of the impact was un- clear Thursday. No other Western energy company has as much direct ex- posure to Russia as Exxon, thanks to a $3.2 billion deal giv- ing the company access to a swath of the Arctic larger than Texas that could hold the equiv- alent of billions of barrels of oil and gas. Officials in Europe, which has extensive trade links to Russia, have insisted that Western na- tions share the fallout from sanctions against Moscow. Rus- sia has said it would retaliate against additional sanctions with measures of its own, further heightening the risks to compa- nies operating there, legal ex- perts said. Exxon is “assessing the sanc- tions,” said Alan Jeffers, a com- Please turn to page A8 BY DANIEL GILBERT Sanctions Threaten Exxon New U.S. Restrictions Put Oil Giant’s Big Bet With Russian Partner in Cross Hairs When United Parcel Service Inc. Chief Executive David Abney bought his first book from Ama- zon.com Inc. about 15 years ago, e-commerce seemed no more complicated than ordering from a catalog. “Pretty basic,” he says. Online sales have mush- roomed since then into a huge business for the package-delivery company—and a big problem. Because of the ubiquity of free shipping, fierce competition from other delivery services and Ama- zon’s power to drive down ship- ping costs as it gets even more enormous, UPS’s average revenue on each Internet-related package it handles is dropping. Even though net income last year was the highest ever at UPS, profit margins on deliveries in the U.S. have been flat for three years, a sign that online sales aren’t helping the bottom line as much as they used to. UPS also has lost market share in e-commerce shipments. According to ship- ment-tracking software devel- oper ShipMatrix Inc., UPS deliv- ers about 42% of e-commerce goods, down from the company’s estimate of 55% in 1999. The numbers add up to one of the biggest challenges in the company’s 108-year history. Un- der Mr. Abney, a 59-year-old UPS lifer who took over as CEO on Sept. 1, the company is trying to squeeze costs out of its sprawl- ing delivery network and drum up more revenue. UPS is under more pressure than FedEx Corp. and the U.S. Postal Service be- cause UPS is the biggest e-com- merce carrier and its two rivals dived into the business later with narrower strategies. In the most extensive interview since UPS an- nounced his promotion in June, Mr. Abney said the rise of e-commerce “has challenged some of our Please turn to page A10 BY LAURA STEVENS BOXED-IN At UPS, E-Commerce Boom Proves a Heavy Lift Stalled UPS average revenue per U.S. package delivery The Wall Street Journal *Through June 30 Source: the company 0 3 6 $9 ’02 ’05 ’10 ’14* 2014*: $9.41 A Somber Day to Remember 9/11 Around the U.S. Gene J. Puskar/Associated Press ANNIVERSARY RITE: Family and friends of the 40 passengers and crew walk past the Wall of Names at the Flight 93 National Memorial in Shanksville, Pa. For Drivers in Belgium, God Is Their Insurance Agent i i i Thousands Bring Cars to Be Blessed by Priest; A Sprinkle of Holy Water for the Road SCHERPENHEUVEL, Belgium— Belgium’s roads are among the riskiest in Europe so thousands of drivers come here to take out an Almighty insurance policy. Every year, more than 5,000 peo- ple—most of them Belgian, along with a few Dutch and Germans—drive to this pilgrimage site to have their cars blessed by a priest. For Mariano Duye, the trip is a family tradition. His mother used to take him to Scher- penheuvel to have the family car blessed. “In God we trust, so we drive safer,” he said. He lives in Leuven, a half-hour drive from Scherpenheuvel, and has brought each of the five cars he has owned to the church. The blessing, he said, provides a sense of safety when he is back on the road. Some, like Karen Ventsmolder from Limburg, who also brought a family picture for blessing, are driven here by faith. She said she was encouraged by an accident to bring her cars here. The church at Scherpenheuvel isn’t the only one in Europe that blesses cars—there is a special Roman Catholic prayer for it—but it stands out because it is open every day. It has also been in the business for centuries. The church here be- gan a tradition for blessing horse- drawn carriages when it was built Please turn to page A4 BY MATHIAS ASK A priest blesses a car Independence Vote for Scotland Remains Close in Poll JUST DESSERTS: An Edinburgh bakery on Thursday offered up opinions on the Sept. 18 Scottish referendum. A8 Getty Images In the days after J.P. Morgan Chase & Co. chief James Dimon disclosed he had throat cancer, the 58-year-old executive received an email from Warren Buffett. Mr. Buffett, the Berkshire Hathaway Inc. head who had re- ceived treatment for prostate can- cer in 2012, advised Mr. Dimon to rest often and bring entertain- ment such as episodes of Mr. Buf- fett’s favorite television show, “Breaking Bad,” to his treatment sessions. Mr. Dimon did both. Now, about eight weeks after starting radiation and chemotherapy treatments, the J.P. Morgan chair- man and chief executive has fin- ished his scheduled rounds. He next begins difficult weeks of re- covery and waiting. The longtime executive re- mains under the close watch of doctors, who will monitor his progress during the crucial com- ing months to determine whether he is cancer-free, people familiar with the matter said. Mr. Dimon may still face additional side ef- fects and, possibly, more treat- ment, and doctors will continue to watch for problems for several years, the people said. Still, J.P. Morgan, the nation’s largest bank by assets, has set- Please turn to the next page BY EMILY GLAZER AND ANUPREETA DAS J.P. Morgan Chief Slows, A Little, to Fight Cancer Pentagon advances plan to defeat jihadists.............................. A7 Syrian Islamist rebels release U.N. troops........................................ A7 C M Y K Composite Composite MAGENTA CYAN BLACK P2JW255000-5-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 P2JW255000-5-A00100-1--------XA
