1
YELLOW ****** WEDNESDAY, OCTOBER 8, 2014 ~ VOL. CCLXIV NO. 84 WSJ.com HHHH $2.00 DJIA 16719.39 g 272.52 1.6% NASDAQ 4385.20 g 1.6% NIKKEI 15783.83 g 0.7% STOXX 600 330.85 g 1.5% 10-YR. TREAS. À 21/32 , yield 2.352% OIL $88.85 g $1.49 GOLD $1,211.70 À $5.00 EURO $1.2669 YEN 108.03 Getty Images TODAY IN PERSONAL JOURNAL Secrets of Office Gossip PLUS PLUS Crowded Classes at Sommelier School CONTENTS Careers............................ B8 Corporate News B2-4,9 Heard on the Street C16 Home & Digital...... D2,3 Leisure & Arts............ D5 Managing ...................... B7 Opinion................... A11-13 Property Report C10-12 Sports.............................. D6 Technology................... B6 U.S. News................. A2-5 Weather Watch........ B9 World News.. A6-10,14 s Copyright 2014 Dow Jones & Company. All Rights Reserved > What’s News i i i World-Wide n Turkey and the U.S. warned that the Syrian border city of Kobani was in imminent danger of falling to Islamic State. A1 n Iraq’s Anbar, a buffer zone between Islamic State and Baghdad, is at risk of falling to the militants, officials said. A8 n The husband and a co- worker of a Spanish nurse’s aide who was infected with Eb- ola were put in quarantine. A6 n U.S. military specialists have been sent to Liberia to run blood-testing labs. A6 n The CDC said it plans to increase screening for Ebola of people flying to the U.S. A6 n Same-sex-marriage bans in Idaho and Nevada were struck down by the Ninth U.S. Circuit appeals court. A3 n Ukraine’s president called for hundreds more interna- tional monitors in the east, cit- ing threats to a cease-fire. A7 n Hong Kong officials and student protest leaders agreed to begin formal talks after over a week of sit-ins. A14 n Robotic surgery to remove ovaries and ovarian cysts costs more and has more complica- tions than regular surgery. A5 n The Nobel Prize in Physics was awarded to three scientists for inventing the blue LED. A14 n Most migrants who recently entered the U.S. illegally showed up for deportation hearings. A5 n Five Afghan men sentenced to death for a gang rape will be hanged Wednesday, A14 n North Korea acknowledged the existence of its labor camps for the first time. A10 i i i S tocks plunged on concerns over growth, especially in Europe. The Dow slid 272.52 points, or 1.6%, to 16719.39, its worst decline since July. A1, C4 Germany’s bank chief took a hard line against stimulus, criticizing an ECB decision to buy private-sector bonds. A9 n Wal-Mart is cutting health insurance for 30,000 part-time workers and raising premiums for its other employees. A1 n Valeant and Pershing plan to boost their Allergan bid by $15 a share, valuing the Botox maker at over $56 billion. B1 n The number of job openings across the U.S. reached a 13- year high in August and the number of job seekers fell. A2 n Blackstone will stop pocket- ing extra consulting fees when selling firms or taking them public after SEC criticism. C1 n AIG’s failure would have had dire consequences, ex-New York Fed chief Geithner testi- fied in a suit over the bailout. C1 n Calpers plans to increase its $26 billion of commercial real- estate investments by 27%. C1 n The Florida overseer of state pension plans is pulling over $2 billion from Pimco. C3 n Rio Tinto said it rejected an approach this summer by Glen- core that would have created the world’s No. 1 mining firm. B1 n Bloomberg will end early access to the Michigan con- sumer survey when it begins distribution next year. A2 n Container Store shares slid 25% after the retailer again lowered its sales forecast. B2 Business & Finance Turkey and the U.S. warned that a major Syrian border city was in imminent danger of falling to Islamic State, with the two countries putting the onus on the other to halt the extremist group’s advance. Turkish President Recep Tayyip Erdogan pressed the U.S.- led coalition on Tuesday to move ahead with plans to arm and train Syrian and Iraqi ground forces to battle Islamic State, saying air- strikes alone weren’t enough. An American military official said the U.S. believes the situation in the predominantly Kurdish city of Kobani is increasingly dire, and that the city is likely to fall shortly if Turkey doesn’t intervene. The complications for Turkey stemming from the advance on Kobani were mounting rapidly. Beyond U.S. pressure to step in, protests by the country’s restive Kurds were spreading quickly. At least a dozen people were killed in clashes with security forces in Please turn to page A8 By Ayla Albayrak, Nour Malas and Julian E. Barnes U.S., Turkey at Odds As Militants Advance Stocks tumbled on escalating concerns about global growth prospects, especially in Europe, as new data showed deepening stresses in the continent’s econ- omy and remarks from a leading policy maker highlighted the lack of consensus in dealing with the slowdown. The Dow Jones Industrial Aver- age slid nearly 273 points, or 1.6%, its worst daily decline since July and fourth-biggest point drop of the year. The slump in U.S. share prices followed big losses in Ger- man, French and U.K. stock mar- kets. Nervous investors headed to safe-haven government bonds and drove up the value of the yen, which often rises in times of mar- ket turmoil. The dollar, which has been on a three-month tear, fell. The yen continued to strengthen early Wednesday in Asia, with stocks plunging in re- sponse to overseas markets. Ja- pan’s Nikkei Stock Average fell 1.5% in early trading. Although investors say they re- main broadly confident that the U.S. economy is on a relatively healthy growth path, many have expressed worries about the re- newed slowdown in Europe at a time when Japan’s economy re- Please turn to page A9 By Dan Strumpf, Alexandra Scaggs and Brian Blackstone Growth Fears Sink Markets Germany Pushes Back on Stimulus Efforts Ebola Fight Picks Up Speed Andres Kudacki/Associated Press Wal-Mart Is Cutting Insurance For 30,000 Republican Sen. Lindsey Graham, after an early scare, is cruising toward re-election next month in South Carolina. Yet, he isn’t sure what the deeper meaning of victory will be this year. “There is no mandate other than, ‘We don’t like the other guy,’ ” he said. Sen. Graham and his fellow Republicans hold a clear edge as the midterm campaign heads into its stretch run. The party is almost certain to keep con- trol of the House, and may expand its majority. De- pending on the outcome in several close states, the Republican Party could gain between four and seven seats in the Senate, giving it a good shot at capturing BY JANET HOOK MIDTERM BLUES As Elections Loom, Voters Are Excited About…Nobody Wal-Mart Stores Inc. is cut- ting health insurance for another 30,000 part-time workers and raising premiums for its other employees, as U.S. corporations push to contain costs in the wake of the federal health-care law. Autumn is typically when U.S. companies unveil changes to em- ployee insurance plans. This is the first such enrollment period since employers could assess the full financial impact of the fed- eral health-care overhaul, and it is a key moment as companies work to lower their spending ahead of looming taxes on the most generous plans. Many businesses are continu- ing to shift more costs to work- Please turn to the next page By Shelly Banjo, Anna Wilde Mathews and Theo Francis No part of speech has had to put up with so much adversity as the adverb. The grammatical equivalent of cheap cologne or trans fat, the adverb is supposed to be used spar- ingly, if at all, to modify verbs, ad- jectives or other adverbs. As Ste- phen King suc- cinctly put it: “The adverb is not your friend.” Not everybody, however, looks askance at the part of speech. Indeed, there is at least one place where the adverb not only flourishes but wields power—the American legal system. Adverbs in recent years have taken on an increasingly impor- tant—and often contentious— role in courthouses. Their influ- ence has spread with the help of lawmakers churning out new laws packed with them. A U.S. appellate court, for ex- ample, this past summer wres- tled with the question of whether a defen- dant could have “knowingly” aimed a laser pointer at a heli- copter if he mis- takenly assumed the beam wouldn’t reach the aircraft. Words such as “knowingly,” “in- tentionally” and “recklessly,” which deal with criminal intent, pop up most fre- quently, but plenty of other ad- verbs have enjoyed the spotlight. When the U.S. Supreme Court in June recognized religious protec- Please turn to page A8 BY JACOB GERSHMAN Lawyers, Judges Modify the View That Adverbs Are Mostly Bad i i i The Maligned Part of Speech Has Friends In High Court; Don’t Tell Stephen King Stephen King that chamber and, with it, control of Congress for the first time in eight years. But the GOP’s advantage springs more from in- tense anti-Obama feelings than from a wave of voters who believe Republicans will transform Washington. Indeed, disillusionment with politics may help ex- plain why Republicans’ edge isn’t wider at a time when job approval ratings of the Democratic presi- dent have slid into the 40% range. The backdrop of this fall’s voting is a mood of voter anger over the status quo, polls suggest. Just one month before the Nov. 4 election, it isn’t even Please turn to page A10 New Kind of Stress Test for Geithner Bloomberg News CRITICAL CARE: A Spanish nurse’s aide infected with Ebola in Madrid was moved to another hospital. U.S. military specialists have been sent to Liberia to operate labs, and the CDC will add screening of flight arrivals in the U.S. A6 UNDER OATH: Timothy Geithner, who helped orchestrate the U.S. bailout of AIG, responded to a suit alleging the rescue terms were too harsh. C1 Surging dollar imperils profits... C4 S&P and Nasdaq join Dow in swoon .................................................. C4 Heard on the Street: Eurozone growth hopes skid..................... C16 West Virginia’s rightward turn boosts GOP........... A4 1 Source: BlackRock. As of 6/30/2014. Based on $4.59T in AUM, including $1.3T across every sector of the bond market. Prepared by BlackRock Investments, LLC, member FINRA. ©2014 BlackRock, Inc. All rights reserved. BLACKROCK and BUILD ON BLACKROCK are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States. Usr-4634. TRUSTED TO MANAGE MORE MONEY THAN ANY OTHER INVESTMENT FIRM IN THE WORLD. 1 BLACKROCK: A GLOBAL LEADER IN FIXED INCOME. BLACKROCK TOTAL RETURN FUND (MAHQX) SEE OUR AD INSIDE C M Y K Composite Composite MAGENTA CYAN BLACK P2JW281000-6-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 P2JW281000-6-A00100-1--------XA

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Page 1: 2014 10 08 cmyk NA 04online.wsj.com/public/resources/documents/pageone100814.pdf · YELL OW ***** WEDNESDAY,OCTOBER 8, 2014~VOL. CCLXIV NO.84 WSJ.com HHHH $2.00 DJIA 16719.39 g 272.52

YELLOW

* * * * * * WEDNESDAY, OCTOBER 8, 2014 ~ VOL. CCLXIV NO. 84 WSJ.com HHHH $2 .00

DJIA 16719.39 g 272.52 1.6% NASDAQ 4385.20 g 1.6% NIKKEI 15783.83 g 0.7% STOXX600 330.85 g 1.5% 10-YR. TREAS. À 21/32 , yield 2.352% OIL $88.85 g $1.49 GOLD $1,211.70 À $5.00 EURO $1.2669 YEN 108.03

Getty

Images

TODAY IN PERSONAL JOURNAL

Secrets of Office GossipPLUSPLUS Crowded Classes at Sommelier School

CONTENTSCareers............................ B8Corporate News B2-4,9Heard on the Street C16Home & Digital...... D2,3Leisure & Arts............ D5Managing...................... B7

Opinion................... A11-13Property Report C10-12Sports.............................. D6Technology................... B6U.S. News................. A2-5Weather Watch........ B9World News.. A6-10,14

s Copyright 2014 Dow Jones & Company.All Rights Reserved

>

What’sNews

i i i

World-WidenTurkey and the U.S.warnedthat the Syrian border city ofKobani was in imminent dangerof falling to Islamic State.A1n Iraq’s Anbar, a buffer zonebetween Islamic State andBaghdad, is at risk of falling tothe militants, officials said. A8nThe husband and a co-worker of a Spanish nurse’saide who was infected with Eb-ola were put in quarantine. A6n U.S. military specialistshave been sent to Liberia torun blood-testing labs. A6n The CDC said it plans toincrease screening for Ebolaof people flying to the U.S. A6n Same-sex-marriage bansin Idaho and Nevada werestruck down by the NinthU.S. Circuit appeals court. A3nUkraine’s president calledfor hundreds more interna-tional monitors in the east, cit-ing threats to a cease-fire. A7nHong Kong officials andstudent protest leaders agreedto begin formal talks afterover a week of sit-ins. A14nRobotic surgery to removeovaries and ovarian cysts costsmore and has more complica-tions than regular surgery. A5n The Nobel Prize in Physicswas awarded to three scientistsfor inventing the blue LED. A14nMostmigrantswho recentlyentered the U.S. illegally showedup for deportation hearings.A5n Five Afghan men sentencedto death for a gang rape willbe hangedWednesday, A14nNorth Korea acknowledgedthe existence of its laborcamps for the first time. A10

i i i

Stocks plunged on concernsover growth, especially in

Europe. The Dow slid 272.52points, or 1.6%, to 16719.39, itsworst decline since July. A1, C4Germany’s bank chief tooka hard line against stimulus,criticizing an ECB decision tobuy private-sector bonds. A9nWal-Mart is cutting healthinsurance for 30,000 part-timeworkers and raising premiumsfor its other employees. A1n Valeant and Pershing planto boost their Allergan bid by$15 a share, valuing the Botoxmaker at over $56 billion. B1nThe number of job openingsacross the U.S. reached a 13-year high in August and thenumber of job seekers fell. A2nBlackstone will stop pocket-ing extra consulting fees whenselling firms or taking thempublic after SEC criticism. C1nAIG’s failurewould havehad dire consequences, ex-NewYork Fed chief Geithner testi-fied in a suit over the bailout.C1nCalpers plans to increase its$26 billion of commercial real-estate investments by 27%. C1n The Florida overseer ofstate pension plans is pullingover $2 billion from Pimco. C3nRio Tinto said it rejected anapproach this summer by Glen-core thatwould have createdtheworld’s No. 1mining firm.B1n Bloomberg will end earlyaccess to the Michigan con-sumer survey when it beginsdistribution next year. A2n Container Store shares slid25% after the retailer againlowered its sales forecast. B2

Business&Finance

Turkey and the U.S. warnedthat a major Syrian border citywas in imminent danger of fallingto Islamic State, with the twocountries putting the onus on the

other to halt the extremistgroup’s advance.

Turkish President RecepTayyip Erdogan pressed the U.S.-led coalition on Tuesday to moveahead with plans to arm and trainSyrian and Iraqi ground forces to

battle Islamic State, saying air-strikes alone weren’t enough.

An American military officialsaid the U.S. believes the situationin the predominantly Kurdish cityof Kobani is increasingly dire, andthat the city is likely to fall shortlyif Turkey doesn’t intervene.

The complications for Turkeystemming from the advance onKobani were mounting rapidly.Beyond U.S. pressure to step in,protests by the country’s restiveKurds were spreading quickly. Atleast a dozen people were killedin clashes with security forces in

PleaseturntopageA8

By Ayla Albayrak,Nour Malas

and Julian E. Barnes

U.S., Turkey at OddsAsMilitants Advance

Stocks tumbled on escalatingconcerns about global growthprospects, especially in Europe, asnew data showed deepeningstresses in the continent’s econ-omy and remarks from a leadingpolicy maker highlighted the lackof consensus in dealing with theslowdown.

The Dow Jones Industrial Aver-age slid nearly 273 points, or 1.6%,its worst daily decline since Julyand fourth-biggest point drop ofthe year. The slump in U.S. shareprices followed big losses in Ger-man, French and U.K. stock mar-kets.

Nervous investors headed tosafe-haven government bonds and

drove up the value of the yen,which often rises in times of mar-ket turmoil. The dollar, which hasbeen on a three-month tear, fell.

The yen continued tostrengthen early Wednesday inAsia, with stocks plunging in re-sponse to overseas markets. Ja-pan’s Nikkei Stock Average fell1.5% in early trading.

Although investors say they re-main broadly confident that theU.S. economy is on a relativelyhealthy growth path, many haveexpressed worries about the re-newed slowdown in Europe at atime when Japan’s economy re-

PleaseturntopageA9

By Dan Strumpf,Alexandra Scaggs

and Brian Blackstone

Growth FearsSink MarketsGermany Pushes Back on Stimulus Efforts

Ebola Fight Picks Up Speed

And

resKu

dacki/AssociatedPress

Wal-MartIs CuttingInsuranceFor 30,000

Republican Sen. Lindsey Graham, after an earlyscare, is cruising toward re-election next month inSouth Carolina. Yet, he isn’t sure what the deepermeaning of victory will be this year.

“There is no mandate other than, ‘We don’t likethe other guy,’ ” he said.

Sen. Graham and his fellow Republicans hold aclear edge as the midterm campaign heads into itsstretch run. The party is almost certain to keep con-trol of the House, and may expand its majority. De-pending on the outcome in several close states, theRepublican Party could gain between four and sevenseats in the Senate, giving it a good shot at capturing

BY JANET HOOK

MIDTERM BLUES

As Elections Loom, VotersAre Excited About…Nobody

Wal-Mart Stores Inc. is cut-ting health insurance for another30,000 part-time workers andraising premiums for its otheremployees, as U.S. corporationspush to contain costs in thewake of the federal health-carelaw.

Autumn is typically when U.S.companies unveil changes to em-ployee insurance plans. This isthe first such enrollment periodsince employers could assess thefull financial impact of the fed-eral health-care overhaul, and itis a key moment as companieswork to lower their spendingahead of looming taxes on themost generous plans.

Many businesses are continu-ing to shift more costs to work-

Pleaseturntothenextpage

By Shelly Banjo,AnnaWilde Mathewsand Theo Francis

No part of speech has had toput up with so much adversityas the adverb. The grammaticalequivalent of cheap cologne ortrans fat, the adverb is supposedto be used spar-ingly, if at all, tomodify verbs, ad-jectives or otheradverbs. As Ste-phen King suc-cinctly put it:“The adverb isnot your friend.”

Not everybody,however, looksaskance at thepart of speech.Indeed, there is at least oneplace where the adverb not onlyflourishes but wields power—theAmerican legal system.

Adverbs in recent years havetaken on an increasingly impor-tant—and often contentious—

role in courthouses. Their influ-ence has spread with the help oflawmakers churning out newlaws packed with them.

A U.S. appellate court, for ex-ample, this past summer wres-tled with the question of

whether a defen-dant could have“ k n o w i n g l y ”aimed a laserpointer at a heli-copter if he mis-takenly assumedthe beamwouldn’t reachthe aircraft.

Words such as“knowingly,” “in-tentionally” and

“recklessly,” which deal withcriminal intent, pop up most fre-quently, but plenty of other ad-verbs have enjoyed the spotlight.When the U.S. Supreme Court inJune recognized religious protec-

PleaseturntopageA8

BY JACOB GERSHMAN

Lawyers, Judges Modify the ViewThat Adverbs Are Mostly Bad

i i i

The Maligned Part of Speech Has FriendsIn High Court; Don’t Tell Stephen King

Stephen King

that chamber and, with it, control of Congress for thefirst time in eight years.

But the GOP’s advantage springs more from in-tense anti-Obama feelings than from a wave of voterswho believe Republicans will transformWashington.Indeed, disillusionment with politics may help ex-plain why Republicans’ edge isn’t wider at a timewhen job approval ratings of the Democratic presi-dent have slid into the 40% range.

The backdrop of this fall’s voting is a mood ofvoter anger over the status quo, polls suggest. Justone month before the Nov. 4 election, it isn’t even

PleaseturntopageA10

New Kind of Stress Test for Geithner

Bloomberg

New

s

CRITICAL CARE: A Spanish nurse’s aide infected with Ebola in Madrid was moved to another hospital. U.S. militaryspecialists have been sent to Liberia to operate labs, and the CDC will add screening of flight arrivals in the U.S. A6

UNDER OATH: Timothy Geithner, who helped orchestrate the U.S. bailoutof AIG, responded to a suit alleging the rescue terms were too harsh. C1

Surging dollar imperils profits... C4 S&P and Nasdaq join Dow in

swoon.................................................. C4 Heard on the Street: Eurozone

growth hopes skid..................... C16

West Virginia’s rightward turn boosts GOP........... A4

1Source: BlackRock. As of 6/30/2014. Based on $4.59T in AUM,including $1.3T across every sector of the bond market.Prepared by BlackRock Investments, LLC, member FINRA. ©2014BlackRock, Inc. All rights reserved. BLACKROCK and BUILD ONBLACKROCK are registered and unregistered trademarks ofBlackRock, Inc. or its subsidiaries in the United States. Usr-4634.

TRUSTED TO MANAGEMOREMONEY THANANY OTHER INVESTMENT FIRM IN THE WORLD.1

BLACKROCK:A GLOBAL LEADERIN FIXED INCOME.

BLACKROCKTOTALRETURNFUND (MAHQX)

SEE OUR AD INSIDE

CM Y K CompositeCompositeMAGENTA CYAN BLACK

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