2014 08 26 cmyk NA 04online.wsj.com/public/resources/documents/pageone082614.pdf · doughnut chain...
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YELLOW ***** TUESDAY, AUGUST 26, 2014 ~ VOL. CCLXIV NO. 48 WSJ.com HHHH $2.00 DJIA 17076.87 À 75.65 0.4% NASDAQ 4557.35 À 0.4% NIKKEI 15613.25 À 0.5% STOXX 600 340.46 À 1.1% 10-YR. TREAS. À 4/32 , yield 2.391% OIL $93.35 g $0.30 GOLD $1,277.30 g $1.30 EURO $1.3192 YEN 104.06 Getty Images TODAY IN PERSONAL JOURNAL Teens Sleep Late for Success PLUS The White Lies of Science CONTENTS Business Tech.............. B5 Corp. News............B2-4,6 Global Finance ............. C3 Health & Wellness D1-3 Heard on Street..........C8 In the Markets.............C4 Leisure & Arts ............. D5 Market Data............. C5-7 Opinion.....................A11-13 Sports................................D6 U.S. News...................A2-5 Weather Watch.......... B7 World News............. A6-9 s Copyright 2014 Dow Jones & Company. All Rights Reserved > What’s News i i i World-Wide n The Pentagon is prepar- ing to send surveillance air- craft into Syrian airspace to gather intelligence on poten- tial Islamic State targets. A1 n Sunnis in northern Iraq, suspected of collaborating with the Islamist militants, are being prevented from re- turning to their homes. A1 n Israel evacuated hundreds of families from small towns near the border with Gaza as the Israeli military and Hamas militants exchanged fire. A6 n The U.S. and four allies condemned escalating vio- lence in Libya and what they called outside interference. A6 n Russia said it wants to send another convoy of what it calls humanitarian aid into Ukraine. Kiev accused Moscow of send- ing tanks across the border. A8 n French President Hollande dissolved his government af- ter a quarrel within his cabi- net over how to cure the country’s economic ills. A8 n A separate Ebola outbreak has emerged in the Demo- cratic Republic of Congo, some 2,000 miles from the strain raging in West Africa. A9 n Thousands of people filled a St. Louis church to remem- ber Michael Brown, whose shooting in a nearby suburb sparked days of protests. A3 n Texas Gov. Perry moved for dismissal of charges that he abused veto power, saying they are unconstitutional. A5 n Flooding in Bangladesh has left nearly half a million people homeless, washed away roads and damaged crops. A8 i i i B uffett is helping finance Burger King’s planned takeover of Canadian chain Tim Hortons, thrusting the in- vestor into the debate over so- called tax-inversion deals. A1 Some lawmakers blasted the potential deal, raising pres- sure for government action on the tax-inversion issue. B4 n Amazon agreed to pay about $970 million for Twitch, an Internet videogame chan- nel, underscoring the popu- larity of online gaming. B1 n The S&P 500 pushed above 2000 for the first time but failed to hold on through the close, finishing up 9.52 points at a record 1997.92. C1 n The euro sank to an 11- month low of $1.3192 as in- vestors bet the ECB will keep the currency weaker to stim- ulate Europe’s economy. C1 n New-home demand has largely stalled this year, fall- ing 2.4% in July from June. Meanwhile, existing-home sales have strengthened. A2 n U.S. factories continue to lose ground to foreign rivals in sectors that include steel, trucks and car parts. B1 n A judge blocked a Hawaii law curbing genetically mod- ified crops, in a victory for seed and chemical firms. B1 n A group of hedge funds holding about $1.7 billion of Argentine bonds sued BNY Mellon, seeking to gain ac- cess to interest payments. C2 n Fairchild Semiconductor said it would shed some older manufacturing operations, cut- ting its workforce by 15%. B5 Business & Finance GWAIR, Iraq—Sunni families in northern Iraq are being pre- vented from returning to their homes, suspected by their neigh- bors and Kurdish authorities who control the area of collabo- rating with the extremist group Islamic State. The offensive by the Sunni militants is threatening to re- shape the demographics of once- mixed communities by dividing territory along ethnic and reli- gious lines, Iraqi and Kurdish of- ficials say. Kurds, Christians and other minorities were driven from their homes by the insurgents’ rapid advance. But even after Kurdish forces, aided by U.S. air- strikes, wrested back control of some of the towns, many are re- fusing to move back if their Sunni Arab neighbors are also allowed to return. Kurdish security forces have been screening Sunni Arabs for ties to Islamic State fighters be- fore allowing them to return to their homes. More than half a dozen such Sunni families sat on a roadside at a checkpoint lead- ing to this northern town on Fri- day. Some said they had been there, living in their cars and waiting, for days. “We want to return to our homes, but they say you can’t cross,” said Khamis Najim Abdal- lah, a Gwair resident stranded with his seven children and try- Please turn to page A6 BY NOUR MALAS Militant Attacks Divide Iraqi Neighbors The Pentagon is preparing to send surveillance aircraft, including drones, into Syrian airspace to gather intelligence on Islamist tar- gets, laying the groundwork for a possible expansion of the limited U.S. military air campaign beyond Iraq, senior U.S. officials said. The decision amounts to an ac- knowledgment that U.S. intelli- gence-collection efforts must be ex- panded to provide a better picture of the threat posed by the group calling itself the Islamic State, which holds large swaths of Syrian and Iraqi territory. It is also one of the first tangible signs that the Obama administration may be pre- paring for military operations in Syria against the group, which is also known as ISIS. The U.S. military’s Central Command, which oversees Ameri- can operations in the region, re- quested more surveillance aircraft, including drones, to gather more intelligence on potential Islamic State targets, and officials said they could start flying missions over eastern Syria shortly. “The Pentagon is preparing to conduct reconnaissance flights over Syria,” a senior U.S. official said. “There is no decision yet to do strikes, but in order to help make that decision, you want to get as much situational awareness as pos- sible.” The Obama administration’s pos- ture toward the group calling itself the Islamic State has toughened markedly following the grisly video released last week showing the kill- ing of American journalist James Foley. President Barack Obama vowed last week to extract the “can- cer” of Islamic extremists from the Middle East. Mr. Obama authorized the sur- veillance flights in Syria with drones and manned aircraft over the weekend, a senior administra- tion official said. The White House on Monday called for more involvement by the government of Iraq, which has lost control of substantial parts of the country to Islamic State extremists, and for a greater involvement by other tribes, groups and govern- ments in the Middle East. But mili- tary officials said the work of pre- Please turn to page A6 By Adam Entous, Julian E. Barnes and Dion Nissenbaum U.S. Lays Groundwork for Syria Strike In Missouri, the Protests Pause for a Funeral Robert Cohen/Press Pool Buffett Enters Tax Fray With Burger King Investment LOS ANGELES—Thirty minutes before meeting the basketball team he bought for $2 billion, Steve Ballmer was pacing a Starbucks parking lot on Wilshire Boulevard. His black Chevy SUV was headed to Beverly Hills, where he would face the players and coaches of the Los Angeles Clippers for the first time. He had never been to an event like this, he said later, and felt both elated and anxious. To avoid arriving early, he stopped for a giant ice tea. “What are the dynamics with basketball stars?” he asked himself as he paced. “I’m used to software developers.” The former Microsoft Corp. chief executive had worked stealthily to clinch a deal, attending a game with the league commissioner, getting back-channel BY MONICA LANGLEY WHOLE NEW BALLGAME For Steve Ballmer’s Next Act, A $2 Billion Impulse Buy Investor Warren Buffett is helping finance Burger King Worldwide Inc.’s planned take- over of Canadian coffee-and- doughnut chain Tim Hortons Inc., according to people familiar with the matter, in a surprise twist that thrusts the billionaire into a debate over U.S. taxes. Mr. Buffett’s Berkshire Hatha- way Inc. would invest in the deal in the form of preferred shares, some of the people said. Berk- shire is expected to provide about 25% of the deal’s financ- ing, one of the people said. The exact structure of Mr. Buffett’s participation remains unclear and the discussions are ongoing. The takeover, likely valued at around $10 billion or more, could be announced in the next day or two, according to the people. Shareholders cheered the po- tential tie-up Monday after the companies confirmed they were in discussions, sending stock in both companies soaring. Mr. Buffett’s backing of the deal may add to that enthusiasm given his reputation for shrewd investing. The investment would also thrust Mr. Buffett, known for championing American compa- nies like Coca-Cola Co. and for advocating that wealthy individ- uals pay their fair share of taxes, into an uncomfortable position at the center of a spirited debate over U.S. tax policy. The deal is to be structured as a so-called inversion that would move the new company’s headquarters to Canada. Such deals, which can help companies sidestep taxes, have drawn stiff opposition in Please turn to the next page By Dana Mattioli, David Benoit and Julie Jargon Ten years ago, Masayoshi Oi- wane made a big bet: that casi- nos would come to Japan. A decade later, Jap- anese are still forbid- den by law to double down at the blackjack table. But Mr. Oiwane is sticking with his wager. His Japan Casino School opened in 2004 with a mission to teach students the finer points of run- ning gambling tables and spinning roulette wheels. “I was so sure that casinos were to be legalized soon,” says the 45-year-old Mr. Oiwane, who serves as the school’s principal. “So I didn’t think starting a ca- sino school in a country where casinos are illegal was a bad business idea.” The odds may be finally tilt- ing in Mr. Oiwane’s fa- vor. Legalized gam- bling is one pillar of Prime Minister Shinzo Abe’s pro-growth agenda, and he has promised to back a ca- sino bill in the coming parliament session this fall. Mr. Abe’s support didn’t help this spring, when a casino bill failed to come up for a vote due to bureaucratic delays. But legislators say the chances are better this time. Please turn to page A10 BY TAKASHI MOCHIZUKI AND KATE O’KEEFFE So, How Do You Say ‘Betting on the Come’ in Japanese? i i i In 2004, Mr. Oiwane Opened a Casino School; He’s Still Waiting for Gambling to Be Legalized Masayoshi Oiwane help from former Walt Disney Co. Chief Executive Michael Eisner and meeting secretly with both Clip- pers owners, Donald Sterling and his estranged wife, Shelly Sterling. His Clippers purchase had closed five days earlier, but watching the billions exit his bank account had been strangely anticlimactic. Now, just before the Aug. 17 dinner, he felt the weight of what he had done. “I don’t have the first clue about being an owner” of a sports team, he thought. Arriving at the Spago restaurant in suit and tie, Mr. Ballmer shook hands with Clippers players he had admired: all-stars Chris Paul and Blake Griffin; center DeAndre Jordan; forward Matt Barnes. There were halting comments, polite laughter and much cellphone checking. Clippers Coach Doc Rivers was struck by the body language: “They were suddenly Please turn to page A10 MOURNING: The casket of Michael Brown, the teen whose shooting by a police officer spawned riots, is taken from a St. Louis church for burial. A3 Steve Ballmer, who retired from Microsoft in February, is back to his boisterous ways as the Los Angeles Clippers’ new owner. Stuart Palley for The Wall Street Journal Deal talks add heat to inversion issue in Washington................... B4 NBC via Getty Images ‘Breaking Bad’ Dominates Emmys CHEMISTRY: The AMC crime drama, which ended last fall, took home the award for best drama; Bryan Cranston, above, was named best actor, while Aaron Paul and Anna Gunn won for supporting roles. More at WSJ.com. C M Y K Composite Composite MAGENTA CYAN BLACK P2JW238000-5-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 P2JW238000-5-A00100-1--------XA
Transcript of 2014 08 26 cmyk NA 04online.wsj.com/public/resources/documents/pageone082614.pdf · doughnut chain...
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* * * * * TUESDAY, AUGUST 26, 2014 ~ VOL. CCLXIV NO. 48 WSJ.com HHHH $2 .00
DJIA 17076.87 À 75.65 0.4% NASDAQ 4557.35 À 0.4% NIKKEI 15613.25 À 0.5% STOXX600 340.46 À 1.1% 10-YR. TREAS. À 4/32 , yield 2.391% OIL $93.35 g $0.30 GOLD $1,277.30 g $1.30 EURO $1.3192 YEN 104.06
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TODAY IN PERSONAL JOURNAL
Teens Sleep Late for SuccessPLUS The White Lies of Science
CONTENTSBusiness Tech..............B5Corp. News............B2-4,6Global Finance.............C3Health & Wellness D1-3Heard on Street..........C8In the Markets.............C4
Leisure & Arts.............D5Market Data.............C5-7Opinion.....................A11-13Sports................................D6U.S. News...................A2-5Weather Watch..........B7World News.............A6-9
s Copyright 2014 Dow Jones & Company.All Rights Reserved
>
What’sNews
i i i
World-Widen The Pentagon is prepar-ing to send surveillance air-craft into Syrian airspace togather intelligence on poten-tial Islamic State targets. A1n Sunnis in northern Iraq,suspected of collaboratingwith the Islamist militants,are being prevented from re-turning to their homes. A1n Israel evacuated hundredsof families from small townsnear the border with Gaza asthe Israeli military and Hamasmilitants exchanged fire. A6n The U.S. and four alliescondemned escalating vio-lence in Libya and what theycalled outside interference. A6nRussia said it wants to sendanother convoy of what it callshumanitarian aid into Ukraine.Kiev accused Moscow of send-ing tanks across the border. A8n French President Hollandedissolved his government af-ter a quarrel within his cabi-net over how to cure thecountry’s economic ills. A8nA separate Ebola outbreakhas emerged in the Demo-cratic Republic of Congo, some2,000 miles from the strainraging in West Africa. A9n Thousands of people filleda St. Louis church to remem-ber Michael Brown, whoseshooting in a nearby suburbsparked days of protests. A3n Texas Gov. Perry movedfor dismissal of charges thathe abused veto power, sayingthey are unconstitutional. A5n Flooding in Bangladeshhas left nearly half a millionpeople homeless, washed awayroads and damaged crops. A8
i i i
Buffett is helping financeBurger King’s planned
takeover of Canadian chainTim Hortons, thrusting the in-vestor into the debate over so-called tax-inversion deals. A1 Some lawmakers blastedthe potential deal, raising pres-sure for government action onthe tax-inversion issue. B4nAmazon agreed to payabout $970 million for Twitch,an Internet videogame chan-nel, underscoring the popu-larity of online gaming. B1n The S&P 500 pushedabove 2000 for the first timebut failed to hold on throughthe close, finishing up 9.52points at a record 1997.92. C1n The euro sank to an 11-month low of $1.3192 as in-vestors bet the ECB will keepthe currency weaker to stim-ulate Europe’s economy. C1n New-home demand haslargely stalled this year, fall-ing 2.4% in July from June.Meanwhile, existing-homesales have strengthened. A2n U.S. factories continue tolose ground to foreign rivalsin sectors that include steel,trucks and car parts. B1n A judge blocked a Hawaiilaw curbing genetically mod-ified crops, in a victory forseed and chemical firms. B1n A group of hedge fundsholding about $1.7 billion ofArgentine bonds sued BNYMellon, seeking to gain ac-cess to interest payments. C2n Fairchild Semiconductorsaid it would shed some oldermanufacturing operations, cut-ting its workforce by 15%. B5
Business&Finance
GWAIR, Iraq—Sunni familiesin northern Iraq are being pre-vented from returning to theirhomes, suspected by their neigh-bors and Kurdish authoritieswho control the area of collabo-rating with the extremist groupIslamic State.
The offensive by the Sunnimilitants is threatening to re-shape the demographics of once-mixed communities by dividingterritory along ethnic and reli-gious lines, Iraqi and Kurdish of-ficials say.
Kurds, Christians and otherminorities were driven fromtheir homes by the insurgents’rapid advance. But even afterKurdish forces, aided by U.S. air-strikes, wrested back control ofsome of the towns, many are re-fusing to move back if theirSunni Arab neighbors are alsoallowed to return.
Kurdish security forces havebeen screening Sunni Arabs forties to Islamic State fighters be-fore allowing them to return totheir homes. More than half adozen such Sunni families sat ona roadside at a checkpoint lead-ing to this northern town on Fri-day. Some said they had beenthere, living in their cars andwaiting, for days.
“We want to return to ourhomes, but they say you can’tcross,” said Khamis Najim Abdal-lah, a Gwair resident strandedwith his seven children and try-
PleaseturntopageA6
BY NOUR MALAS
MilitantAttacksDivide IraqiNeighbors
The Pentagon is preparing tosend surveillance aircraft, includingdrones, into Syrian airspace togather intelligence on Islamist tar-gets, laying the groundwork for apossible expansion of the limitedU.S. military air campaign beyondIraq, senior U.S. officials said.
The decision amounts to an ac-knowledgment that U.S. intelli-gence-collection efforts must be ex-panded to provide a better pictureof the threat posed by the groupcalling itself the Islamic State,which holds large swaths of Syrianand Iraqi territory. It is also one ofthe first tangible signs that the
Obama administrationmay be pre-paring for military operations inSyria against the group, which isalso known as ISIS.
The U.S. military’s CentralCommand, which oversees Ameri-can operations in the region, re-quested more surveillance aircraft,including drones, to gather moreintelligence on potential IslamicState targets, and officials saidthey could start flying missions
over eastern Syria shortly.“The Pentagon is preparing to
conduct reconnaissance flights overSyria,” a senior U.S. official said.“There is no decision yet to dostrikes, but in order to help makethat decision, you want to get asmuch situational awareness as pos-sible.”
TheObama administration’s pos-ture toward the group calling itselfthe Islamic State has toughenedmarkedly following the grisly videoreleased last week showing the kill-ing of American journalist JamesFoley. President Barack Obamavowed lastweek to extract the “can-
cer” of Islamic extremists from theMiddle East.
Mr. Obama authorized the sur-veillance flights in Syria withdrones and manned aircraft overthe weekend, a senior administra-tion official said.
The White House on Mondaycalled formore involvement by thegovernment of Iraq, which has lostcontrol of substantial parts of thecountry to Islamic State extremists,and for a greater involvement byother tribes, groups and govern-ments in theMiddle East. Butmili-tary officials said the work of pre-
PleaseturntopageA6
By Adam Entous,Julian E. Barnes
and Dion Nissenbaum
U.S.LaysGroundwork for Syria Strike
In Missouri, the Protests Pause for a Funeral
Robert
Cohen/PressPo
ol
Buffett EntersTax FrayWithBurger KingInvestment
LOS ANGELES—Thirty minutes before meetingthe basketball team he bought for $2 billion, SteveBallmer was pacing a Starbucks parking lot onWilshire Boulevard.
His black Chevy SUV was headed to Beverly Hills,where he would face the players and coaches of theLos Angeles Clippers for the first time. He had neverbeen to an event like this, he said later, and felt bothelated and anxious.
To avoid arriving early, he stopped for a giant icetea. “What are the dynamics with basketball stars?”he asked himself as he paced. “I’m used to softwaredevelopers.”
The former Microsoft Corp. chief executive hadworked stealthily to clinch a deal, attending a gamewith the league commissioner, getting back-channel
BY MONICA LANGLEY
WHOLE NEW BALLGAME
For Steve Ballmer’s Next Act,A $2 Billion Impulse Buy
Investor Warren Buffett ishelping finance Burger KingWorldwide Inc.’s planned take-over of Canadian coffee-and-doughnut chain Tim HortonsInc., according to people familiarwith the matter, in a surprisetwist that thrusts the billionaireinto a debate over U.S. taxes.
Mr. Buffett’s Berkshire Hatha-way Inc. would invest in the dealin the form of preferred shares,some of the people said. Berk-shire is expected to provideabout 25% of the deal’s financ-ing, one of the people said. Theexact structure of Mr. Buffett’sparticipation remains unclearand the discussions are ongoing.
The takeover, likely valued ataround $10 billion or more,could be announced in the nextday or two, according to thepeople.
Shareholders cheered the po-tential tie-up Monday after thecompanies confirmed they werein discussions, sending stock inboth companies soaring. Mr.Buffett’s backing of the deal mayadd to that enthusiasm given hisreputation for shrewd investing.
The investment would alsothrust Mr. Buffett, known forchampioning American compa-nies like Coca-Cola Co. and foradvocating that wealthy individ-uals pay their fair share of taxes,into an uncomfortable positionat the center of a spirited debateover U.S. tax policy. The deal isto be structured as a so-calledinversion that would move thenew company’s headquarters toCanada. Such deals, which canhelp companies sidestep taxes,have drawn stiff opposition in
Pleaseturntothenextpage
By DanaMattioli, DavidBenoit and Julie Jargon
Ten years ago, Masayoshi Oi-wane made a big bet: that casi-nos would come to Japan.
A decade later, Jap-anese are still forbid-den by law to doubledown at the blackjacktable. But Mr. Oiwaneis sticking with hiswager.
His Japan CasinoSchool opened in2004 with a missionto teach students thefiner points of run-ning gambling tablesand spinning roulettewheels.
“I was so sure that casinoswere to be legalized soon,” saysthe 45-year-old Mr. Oiwane, who
serves as the school’s principal.“So I didn’t think starting a ca-sino school in a country wherecasinos are illegal was a badbusiness idea.”
The odds may be finally tilt-ing in Mr. Oiwane’s fa-vor. Legalized gam-bling is one pillar ofPrime Minister ShinzoAbe’s pro-growthagenda, and he haspromised to back a ca-sino bill in the comingparliament sessionthis fall.
Mr. Abe’s supportdidn’t help this spring,when a casino billfailed to come up for a
vote due to bureaucratic delays.But legislators say the chancesare better this time.
PleaseturntopageA10
BY TAKASHI MOCHIZUKIAND KATE O’KEEFFE
So, How Do You Say‘Betting on the Come’ in Japanese?
i i i
In 2004,Mr. Oiwane Opened a Casino School;He’s StillWaiting for Gambling toBeLegalized
Masayoshi Oiwane
help from former Walt Disney Co. Chief ExecutiveMichael Eisner and meeting secretly with both Clip-pers owners, Donald Sterling and his estranged wife,Shelly Sterling.
His Clippers purchase had closed five days earlier,but watching the billions exit his bank account hadbeen strangely anticlimactic. Now, just before theAug. 17 dinner, he felt the weight of what he haddone. “I don’t have the first clue about being anowner” of a sports team, he thought.
Arriving at the Spago restaurant in suit and tie,Mr. Ballmer shook hands with Clippers players hehad admired: all-stars Chris Paul and Blake Griffin;center DeAndre Jordan; forward Matt Barnes. Therewere halting comments, polite laughter and muchcellphone checking. Clippers Coach Doc Rivers wasstruck by the body language: “They were suddenly
PleaseturntopageA10
MOURNING: The casket of Michael Brown, the teen whose shooting by a police officer spawned riots, is taken from a St. Louis church for burial. A3
Steve Ballmer, who retired fromMicrosoft in February, is back tohis boisterous ways as the LosAngeles Clippers’ new owner.
Stuart
PalleyforTh
eWallS
treetJournal
Deal talks add heat to inversionissue in Washington................... B4
NBC
viaGetty
Images
‘Breaking Bad’ Dominates Emmys
CHEMISTRY: The AMC crime drama, which ended last fall, took home theaward for best drama; Bryan Cranston, above, was named best actor, whileAaron Paul and Anna Gunn won for supporting roles. More at WSJ.com.
CM Y K CompositeCompositeMAGENTA CYAN BLACK
P2JW238000-5-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
P2JW238000-5-A00100-1--------XA
