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YELLOW ***** THURSDAY, FEBRUARY 6, 2014 ~ VOL. CCLXIII NO. 30 WSJ.com HHHH $2.00 DJIA 15440.23 g 5.01 0.03% NASDAQ 4011.55 g 0.5% NIKKEI 14180.38 À 1.2% STOXX 600 318.04 À 0.1% 10-YR. TREAS. g 13/32 , yield 2.668% OIL $97.38 À $0.19 GOLD $1,257.30 À $5.60 EURO $1.3533 YEN 101.45 TODAY IN PERSONAL JOURNAL Anatomy of a Fashion Style PLUS Why Your Flight Was Changed (It’s Not the Weather) P CONTENTS Business Tech............ B6 Corporate News B1-3,8 Global Finance............ C3 Heard on Street ..... C10 In the Markets........... C4 Leisure & Arts............ D5 Opinion.................. A15-17 Sports.............................. D6 Stock Listings ............ C9 Style & Travel ........ D1-4 U.S. News................. A2-6 Weather Watch........ B9 World News......... A8-13 s Copyright 2014 Dow Jones & Company. All Rights Reserved > What’s News i i i World-Wide n The U.S. will narrow its drone program in Pakistan to target a short list of terrorists and aim to end it during Pre- mier Sharif’s current term. A1 n The NLRB revived a sweep- ing proposal to streamline and speed union-organizing elections at companies. A2 n House GOP leaders, seeking to raise the debt ceiling, are considering such sweeteners as boosting military pensions. A4 n GOP opponents of legisla- tion giving legal status to ille- gal immigrants made clear they will resist such a move. A6 n The two Koreas agreed to hold the first reunion of fami- lies separated by the Korean War in over three years. A10 n The U.N. criticized Vatican handling of sex-abuse cases and said suspect priests should be reported to authorities. A11 n Blasts in Baghdad killed at least 34, as militants battled for control of Sunni areas to the west of Iraq’s capital. A13 n The harsh winter season is blowing cities’ snow-re- moval budgets but has been a boon for some businesses. A3 n Talks on cost overruns in the project to expand the Pan- ama Canal broke off and work has largely come to a halt. B2 n Swiss voters will decide Sunday whether the country should set quotas on resident permits for EU citizens. A13 n Scientists warned that an avian-flu strain has mutated and can infect humans. A10 n Nine firefighters died bat- tling a blaze at a document warehouse in Argentina. A8 i i i I nsurers are facing pressure from regulators and law- makers over plans that limit choices of doctors and hospi- tals, a tactic the industry said is vital to curbing prices. A1 n CVS said it would stop selling all tobacco products as it seeks to become more of a health-care provider. B1 n Google agreed to tweak the way it presents search results in Europe under an antitrust deal with EU regulators. A1 n Twitter said its user growth slowed in the fourth quarter, even as the company’s reve- nue more than doubled. B1 n U.S. stock indexes edged lower after a volatile start to the week. The Dow eased 5.01 points to end at 15440.23. C4 n More banks are introduc- ing fees on checking accounts as regulatory curbs and costs drive a search for income. C1 n The number of companies traded on U.S. stock exchanges grew last year for the first time since the late 1990s. C1 n Coke signed a pact to sell its drinks through an at-home beverage system being devel- oped by Green Mountain. B1 n Regulators are weighing whether to ease Volcker rule provisions that could affect col- lateralized loan obligations. C1 n Time Warner broke out HBO results for the first time, show- ing it topping Netflix in profit but not revenue growth. B3 n Disney’s profit rose 33% in its fiscal first quarter amid the blockbuster success of the ani- mated musical “Frozen.” B4 Business & Finance Looking for a Few Good Chefs, Marines Launch Culinary Assault i i i Competition to Spice Up Field Rations Brings Out ‘Warrior Spirit,’ Tabasco TRIANGLE, Va.—Television cooking shows have asked chefs to work wonders with hard-to- swallow ingredients like jelly- fish, rattlesnake and even a rooster’s coxcomb. On a recent Satur- day, former U.S. Ma- rine John Crist faced an even tougher chal- lenge: Transform mili- tary-issued field ra- tions, known as a Meal, Ready to Eat, or MRE, into something palatable. Mr. Crist, 45 years old, was runner-up last year in the inau- gural MRE cook-off at the National Museum of the Marine Corps here. This year, he had a new strategy he considered foolproof. “Tabasco, a lot more than I used last year,” said the deputy fire marshal from Hagerstown, Md. “In my mind, I’ve already won this.” But Mr. Crist knew the com- petition would be stiff. “There he is!” someone shouted, as the reigning champion, Craig Allen, sauntered into the roped-off area to onlookers’ applause. Mr. Allen, a 36- year-old contractor with Headquarters Marine Corps, oozed confidence, joking that he had already warmed up for the contest. “I just cooked breakfast at home,” he said. Field rations have long been a necessary evil for soldiers, from hardtack biscuits and jerky generations ago to canned rations in the World Wars through Vietnam. Vacuum- sealed MREs were first issued in the U.S. in the 1980s. They might Please turn to the next page BY BEN KESLING Beef patty, jalepeno pepper jack MRE Google Inc. showed on Wednes- day that it has developed a simple mantra to skirt antitrust trouble: Don’t litigate, negotiate. Under a tentative deal with Eu- ropean Commission regulators, Google agreed to tweak the way it presents search results in Europe to address concerns that it is abusing its dominance in online search to favor its own services at the expense of rivals. Google wouldn’t pay a fine un- der the agreement, announced by the commission. The deal disap- pointed competitors like Microsoft Corp. that had sought a tougher response. Google used a similar strategy of accommodation to resolve a po- tential antitrust lawsuit in the U.S., agreeing last year to small changes to its search practices to Please turn to page A8 By Vanessa Mock, Sam Schechner and Rolfe Winkler Aggressively Agreeable Google Cuts Antitrust Deal years, don’t have jobs—a total of 10.4 million. Some are looking for jobs; many aren’t. Some had jobs that went overseas or were lost to technology. Some refuse to uproot for work because they are tied down by family needs or tethered to homes worth less than the mortgage. Some rely on gov- ernment benefits. Others depend on working spouses. Having so many men out of work is partly a symptom of a U.S. economy slow to recover from the worst recession in 75 years. It is also a chronic condition that shows how technology and globali- zation are transforming jobs faster than many workers can adapt, economists say. The trend has been building for decades, ac- cording to government data. In the early 1970s, Please turn to page A14 Mark Riley was 53 years old when he lost a job as a grant writer for an Arkansas community col- lege. “I was stunned,” he said. “It happened on my daughter’s 11th birthday.” His boss blamed state budget cuts. That was almost three years ago and he still hasn’t found steady work. Mr. Riley, whose unem- ployment benefits ran out 14 months ago, says his long and fruitless search is proof employers won’t hire men out of work too long. “We’re poor, but we’re not broke,” Mr. Riley said. “We still have property. We have cars. We have some assets, we just can’t liquidate them.” Mr. Riley’s frustration is widely shared. More than one in six men ages 25 to 54, prime working BY MARK PETERS AND DAVID WESSEL IDLED AMERICANS More Men in Their Prime Are Out of Work and at Home STRIKE’S A BLOW: A 48-hour strike by London Underground workers led to the cancellation of about two-thirds of subway service in the U.K. capital Wednesday. Commuters, above, wait in Victoria Station. A13 London Commute Goes Down Tube California Insurance Commis- sioner Dave Jones said he plans to revise his agency’s standards for insurers’ health networks partly because current regula- tions don’t give him enough power to continue oversight af- ter a health plan goes on the market. The aim would be to “make sure when people pur- chase health insurance, they Please turn to page A4 specialists at top academic medi- cal centers, which tend to charge insurers higher fees and aren’t included in many of the new net- works. Some consumers say they will have to switch doctors with the new health-law plans. But the is- sue extends beyond the new poli- cies, as insurers have been trim- ming the array of doctors in private Medicare Advantage cov- erage and losing some big health-network providers due to market clashes. through HealthCare.gov, a shift that could force insurers to ex- pand those networks. Meantime, regulators in states including Washington and New Hampshire are ramping up their own scrutiny, and lawmakers in Mississippi and Pennsylvania, among others, are weighing bills that could force plans to add more hospitals and doctors. The moves come amid com- plaints by some consumers that they don’t have access to a broad enough range of care—such as Insurers are facing pressure from regulators and lawmakers about plans that offer limited choices of doctors and hospitals, a tactic the industry said is vital to keep down coverage prices in the new health law’s market- places. This week, federal regulators proposed a tougher review pro- cess for the doctors and hospi- tals in plans to be sold next year BY ANNA WILDE MATHEWS AND CHRISTOPHER WEAVER Insurers Face New Pressure Over Limited Doctor Choice The Obama administration will narrow its controversial drone program in Pakistan to target a short list of high-level terrorists, and aim to end it during the prime minister’s current term, se- nior U.S. officials have told their Pakistani counterparts. The downsizing of the covert Central Intelligence Agency pro- gram reflects Pakistani objections to the strikes and logistical con- straints on the spy agency at the end of this year, when U.S. troops are scheduled to pull out of neighboring Afghanistan, accord- ing to administration, intelligence and military officials. Senior U.S. officials said they have discussed the revisions with Pakistani officials in a series of meetings over the past six months. U.S. officials say the goal is to make the drone campaign less of an irritant in the two countries’ troubled relations, without preventing the CIA from conducting higher-priority opera- tions during the time the pro- gram has left. The changes fall short of Prime Minister Nawaz Sharif’s demands for an immediate freeze in drone strikes. Pakistani officials in Is- lamabad and Washington weren’t immediately available to com- ment. Officials say the revision is meant to move the CIA away from what some critics call a Please turn to page A10 By Adam Entous and Siobhan Gorman in Washington and Saeed Shah in Islamabad Pakistan Drone Program Curbed Note: Doesn’t total 100 due to rounding Sources: CVS Caremark; analysts (revenue); Euromonitor International (share of sales) The Wall Street Journal Share of U.S. retail cigarette sales in 2012: Drugstores 4% Gas stations 48% Tobacco specialists 21% Convenience stores 16% Other 8% Supermarkets 4% $2 billion Amount CVS expects to lose from ending tobacco sales, out of $133 billion in projected 2014 revenue NEW STRATEGY: Pharmacy giant CVS said it would drop tobacco products because they aren’t a good fit in a company that is trying to become more of a health-care provider, offering in-store clinics. Above, a CVS cashier retrieved cigarettes for a customer Wednesday in New York City. B1 Big Drugstore Chain Kicks Habit, Plans to Stop Selling Smokes Andrew Hinderaker for The Wall Street Journal European Pressphoto Agency Lawmakers spar over health law’s impact on labor................. A4 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 P2JW037000-5-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 P2JW037000-5-A00100-1--------XA
Transcript of See The Wall Street Journal's Front Page
YELLOW
* * * * * THURSDAY, FEBRUARY 6, 2014 ~ VOL. CCLXIII NO. 30 WSJ.com HHHH $2 .00
DJIA 15440.23 g 5.01 0.03% NASDAQ 4011.55 g 0.5% NIKKEI 14180.38 À 1.2% STOXX600 318.04 À 0.1% 10-YR. TREAS. g 13/32 , yield 2.668% OIL $97.38 À $0.19 GOLD $1,257.30 À $5.60 EURO $1.3533 YEN 101.45
TODAY IN PERSONAL JOURNAL
Anatomy of a Fashion StylePLUS Why Your Flight Was Changed (It’s Not the Weather)P
CONTENTSBusiness Tech. ........... B6Corporate News B1-3,8Global Finance............ C3Heard on Street..... C10In the Markets........... C4Leisure & Arts............ D5
Opinion.................. A15-17Sports.............................. D6Stock Listings............ C9Style & Travel........ D1-4U.S. News................. A2-6Weather Watch........ B9World News......... A8-13
s Copyright 2014 Dow Jones & Company.All Rights Reserved
>
What’sNews
i i i
World-WidenThe U.S. will narrow itsdrone program in Pakistan totarget a short list of terroristsand aim to end it during Pre-mier Sharif’s current term. A1nThe NLRB revived a sweep-ing proposal to streamlineand speed union-organizingelections at companies. A2nHouse GOP leaders, seekingto raise the debt ceiling, areconsidering such sweeteners asboosting military pensions. A4nGOP opponents of legisla-tion giving legal status to ille-gal immigrantsmade clear theywill resist such amove. A6n The two Koreas agreed tohold the first reunion of fami-lies separated by the KoreanWar in over three years. A10nThe U.N. criticized Vaticanhandling of sex-abuse casesand said suspect priests shouldbe reported to authorities. A11n Blasts in Baghdad killed atleast 34, as militants battledfor control of Sunni areas tothe west of Iraq’s capital. A13n The harsh winter seasonis blowing cities’ snow-re-moval budgets but has been aboon for some businesses. A3n Talks on cost overruns inthe project to expand the Pan-ama Canal broke off and workhas largely come to a halt. B2n Swiss voters will decideSunday whether the countryshould set quotas on residentpermits for EU citizens. A13n Scientists warned that anavian-flu strain has mutatedand can infect humans. A10nNine firefighters died bat-tling a blaze at a documentwarehouse in Argentina. A8
i i i
Insurers are facing pressurefrom regulators and law-
makers over plans that limitchoices of doctors and hospi-tals, a tactic the industry saidis vital to curbing prices. A1n CVS said it would stopselling all tobacco productsas it seeks to become moreof a health-care provider. B1nGoogle agreed to tweak theway it presents search resultsin Europe under an antitrustdeal with EU regulators. A1nTwitter said its user growthslowed in the fourth quarter,even as the company’s reve-nue more than doubled. B1nU.S. stock indexes edgedlower after a volatile start tothe week. The Dow eased 5.01points to end at 15440.23. C4nMore banks are introduc-ing fees on checking accountsas regulatory curbs and costsdrive a search for income. C1n The number of companiestraded on U.S. stock exchangesgrew last year for the firsttime since the late 1990s. C1nCoke signed a pact to sell itsdrinks through an at-homebeverage system being devel-oped by Green Mountain. B1n Regulators are weighingwhether to ease Volcker ruleprovisions that could affect col-lateralized loan obligations. C1nTimeWarner broke outHBOresults for the first time, show-ing it topping Netflix in profitbut not revenue growth. B3nDisney’s profit rose 33% inits fiscal first quarter amid theblockbuster success of the ani-mated musical “Frozen.” B4
Business&Finance
Looking for a Few Good Chefs,Marines Launch Culinary Assault
i i i
Competition to Spice Up Field RationsBrings Out ‘Warrior Spirit,’ Tabasco
TRIANGLE, Va.—Televisioncooking shows have asked chefsto work wonders with hard-to-swallow ingredients like jelly-fish, rattlesnake and even arooster’s coxcomb.
On a recent Satur-day, former U.S. Ma-rine John Crist facedan even tougher chal-lenge: Transform mili-tary-issued field ra-tions, known as aMeal, Ready to Eat, orMRE, into somethingpalatable.
Mr. Crist, 45 yearsold, was runner-uplast year in the inau-gural MRE cook-off atthe National Museumof the Marine Corps here. Thisyear, he had a new strategy heconsidered foolproof. “Tabasco,a lot more than I used last year,”said the deputy fire marshal
from Hagerstown, Md. “In mymind, I’ve already won this.”
But Mr. Crist knew the com-petition would be stiff. “Therehe is!” someone shouted, as thereigning champion, Craig Allen,sauntered into the roped-offarea to onlookers’ applause.
Mr. Allen, a 36-year-old contractorwith HeadquartersMarine Corps, oozedconfidence, joking thathe had alreadywarmed up for thecontest. “I just cookedbreakfast at home,” hesaid.
Field rations havelong been a necessaryevil for soldiers, fromhardtack biscuits andjerky generations ago
to canned rations in the WorldWars through Vietnam. Vacuum-sealed MREs were first issued inthe U.S. in the 1980s. They might
Pleaseturntothenextpage
BY BEN KESLING
Beef patty,jalepeno pepper
jack MRE
Google Inc. showed onWednes-day that it has developed a simplemantra to skirt antitrust trouble:Don’t litigate, negotiate.
Under a tentative deal with Eu-ropean Commission regulators,Google agreed to tweak the way itpresents search results in Europeto address concerns that it isabusing its dominance in onlinesearch to favor its own services atthe expense of rivals.
Google wouldn’t pay a fine un-der the agreement, announced bythe commission. The deal disap-pointed competitors like MicrosoftCorp. that had sought a tougherresponse.
Google used a similar strategyof accommodation to resolve a po-tential antitrust lawsuit in theU.S., agreeing last year to smallchanges to its search practices to
PleaseturntopageA8
By Vanessa Mock,Sam Schechner
and Rolfe Winkler
AggressivelyAgreeableGoogle CutsAntitrust Deal
years, don’t have jobs—a total of 10.4 million.Some are looking for jobs; many aren’t. Some hadjobs that went overseas or were lost to technology.Some refuse to uproot for work because they aretied down by family needs or tethered to homesworth less than the mortgage. Some rely on gov-ernment benefits. Others depend on workingspouses.
Having so many men out of work is partly asymptom of a U.S. economy slow to recover fromthe worst recession in 75 years. It is also a chroniccondition that shows how technology and globali-zation are transforming jobs faster than manyworkers can adapt, economists say.
The trend has been building for decades, ac-cording to government data. In the early 1970s,
PleaseturntopageA14
Mark Riley was 53 years old when he lost a jobas a grant writer for an Arkansas community col-lege. “I was stunned,” he said. “It happened on mydaughter’s 11th birthday.” His boss blamed statebudget cuts.
That was almost three years ago and he stillhasn’t found steady work. Mr. Riley, whose unem-ployment benefits ran out 14 months ago, says hislong and fruitless search is proof employers won’thire men out of work too long.
“We’re poor, but we’re not broke,” Mr. Rileysaid. “We still have property. We have cars. Wehave some assets, we just can’t liquidate them.”
Mr. Riley’s frustration is widely shared. Morethan one in six men ages 25 to 54, prime working
BY MARK PETERS AND DAVID WESSEL
IDLED AMERICANS
More Men in Their PrimeAre Out ofWork and at Home
STRIKE’S A BLOW: A 48-hour strike by London Underground workersled to the cancellation of about two-thirds of subway service in the U.K.capital Wednesday. Commuters, above, wait in Victoria Station. A13
London Commute Goes Down Tube
California Insurance Commis-sioner Dave Jones said he plansto revise his agency’s standardsfor insurers’ health networkspartly because current regula-tions don’t give him enoughpower to continue oversight af-ter a health plan goes on themarket. The aim would be to“make sure when people pur-chase health insurance, they
PleaseturntopageA4
specialists at top academic medi-cal centers, which tend to chargeinsurers higher fees and aren’tincluded in many of the new net-works.
Some consumers say they willhave to switch doctors with thenew health-law plans. But the is-sue extends beyond the new poli-cies, as insurers have been trim-ming the array of doctors inprivate Medicare Advantage cov-erage and losing some bighealth-network providers due tomarket clashes.
through HealthCare.gov, a shiftthat could force insurers to ex-pand those networks.
Meantime, regulators in statesincluding Washington and NewHampshire are ramping up theirown scrutiny, and lawmakers inMississippi and Pennsylvania,among others, are weighing billsthat could force plans to addmore hospitals and doctors.
The moves come amid com-plaints by some consumers thatthey don’t have access to a broadenough range of care—such as
Insurers are facing pressurefrom regulators and lawmakersabout plans that offer limitedchoices of doctors and hospitals,a tactic the industry said is vitalto keep down coverage prices inthe new health law’s market-places.
This week, federal regulatorsproposed a tougher review pro-cess for the doctors and hospi-tals in plans to be sold next year
BY ANNA WILDE MATHEWSAND CHRISTOPHER WEAVER
Insurers Face New PressureOver Limited Doctor Choice
The Obama administration willnarrow its controversial droneprogram in Pakistan to target ashort list of high-level terrorists,and aim to end it during theprime minister’s current term, se-nior U.S. officials have told theirPakistani counterparts.
The downsizing of the covertCentral Intelligence Agency pro-gram reflects Pakistani objections
to the strikes and logistical con-straints on the spy agency at theend of this year, when U.S. troopsare scheduled to pull out ofneighboring Afghanistan, accord-ing to administration, intelligenceand military officials.
Senior U.S. officials said theyhave discussed the revisions withPakistani officials in a series ofmeetings over the past sixmonths. U.S. officials say the goalis to make the drone campaignless of an irritant in the twocountries’ troubled relations,without preventing the CIA fromconducting higher-priority opera-tions during the time the pro-gram has left.
The changes fall short of PrimeMinister Nawaz Sharif’s demandsfor an immediate freeze in dronestrikes. Pakistani officials in Is-lamabad and Washington weren’timmediately available to com-ment.
Officials say the revision ismeant to move the CIA awayfrom what some critics call a
PleaseturntopageA10
By Adam Entous andSiobhan Gorman in
Washington and SaeedShah in Islamabad
PakistanDroneProgramCurbed
Note: Doesn’t total 100 due to rounding
Sources: CVS Caremark; analysts (revenue);Euromonitor International (share of sales)
The Wall Street Journal
Share of U.S. retail cigarettesales in 2012:
Drugstores 4%
Gas stations48%
Tobaccospecialists21%
Conveniencestores16%
Other8%
Supermarkets 4%
$2 billionAmount CVS expects to losefrom ending tobacco sales,out of $133 billion in projected2014 revenue
NEW STRATEGY: Pharmacy giant CVS said it would drop tobacco products because they aren’t a good fit in a company that is trying to becomemore of a health-care provider, offering in-store clinics. Above, a CVS cashier retrieved cigarettes for a customer Wednesday in New York City. B1
Big Drugstore Chain Kicks Habit, Plans to Stop Selling Smokes
And
rew
HinderakerforTh
eWallS
treetJournal
European
Presspho
toAgency
Lawmakers spar over healthlaw’s impact on labor................. A4
Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
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P2JW037000-5-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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