TODAYINPERSONALJOURNAL ACurefor...
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YELLOW ****** THURSDAY, FEBRUARY 20, 2014 ~ VOL. CCLXIII NO. 41 WSJ.com HHHH $2.00 89.84 points, or 0.6%, to 16040.56, taking most of the losses after the 2 p.m. release, in a seesaw trading day also driven by fresh emerging-market con- cerns. Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management LLC, said the Fed’s hawks “are proba- bly going to be beating a drum that not many people are going Please turn to the next page a distant horizon of a Fed move. Surprising declines in the unem- ployment rate in recent months have forced officials to start dis- cussing their plans for eventual rate hikes, what will impel them to act and how to guide the pub- lic about their likely course in the months ahead. Investors took the minutes re- lease largely in stride. The Dow Jones Industrial Average fell omy from overheating, according to minutes of the meeting re- leased Wednesday. These officials were most likely from the Fed’s band of policy “hawks” who have largely failed in resisting the cen- tral bank’s easy-money policies. The fact that the subject came up at all in January shows how the central bank’s policy debate is slowly and subtly evolving and might offer the first glimmers on December 2008, near the height of the financial crisis, and Chair- woman Janet Yellen shows no appetite for raising them soon. Investors, seeing that, generally don’t see Fed rate increases until well into 2015, a view also held by many officials. Still, a “few” Fed officials ar- gued at a Jan. 28-29 policy meet- ing that increases might be needed soon to prevent the econ- Conversation at the Federal Reserve’s most recent policy meeting turned to something that hasn’t been a serious topic for years: the possibility of in- terest-rate increases in the near future. The Fed has held short-term interest rates near zero since DJIA 16040.56 g 89.84 0.6% NASDAQ 4237.95 g 0.8% NIKKEI 14766.53 g 0.5% STOXX 600 334.94 À 0.1% 10-YR. TREAS. g 6/32 , yield 2.730% OIL $103.31 À $0.88 GOLD $1,320.60 g $4.10 EURO $1.3733 YEN 102.31 Getty Images TODAY IN PERSONAL JOURNAL A Cure for Canceled Flights PLUS Losing Russian Hockey Coach: ‘Eat Me Alive’ CONTENTS Business Tech............ B8 Corporate News B1-4,9 Global Finance............ C3 Heard on Street ..... C10 In the Markets........... C4 Leisure & Arts............ D4 Markets Dashboard C6 Opinion.................. A13-15 Sports......................... D5-8 Style & Travel......... D1-3 U.S. News................. A2-6 Weather Watch........ B9 World News......... A7-10 s Copyright 2014 Dow Jones & Company. All Rights Reserved > What’s News i i i World-Wide n Ukraine’s president and opposition agreed to a truce after a night of deadly vio- lence, amid pressure from the U.S. and Europe. A1, A8-9 n The government is consid- ering enlarging the NSA phone- data collection, an unintended consequence of suits seeking to stop the surveillance. A4 n Twin car blasts targeting Iran’s cultural center in a Shi- ite area of Beirut killed six, the latest attack in Lebanon linked to Syria’s civil war. A7 n Iran and world powers agreed to a framework and timetable for talks on ending Tehran’s nuclear threat. A7 n Saudi Arabia sidelined its spy chief, Prince Bandar, as leader of its efforts to arm and fund Syrian rebels. A7 n Slashing the size of Afghan security forces would jeopar- dize U.S. hopes of stabilizing the country, a report said. A10 n Obama and his counterparts from Mexico and Canada vowed to strengthen trade ties and pursue a trans-Pacific pact. A9 n A Nebraska judge ruled that a law letting the Keystone oil pipeline be built across the state is unconstitutional. A3 n Italy’s premier-designate plans to present his new cabi- net to the president Saturday, ahead of a confidence vote. A10 n Panama said work to expand the Panama Canal will restart, but a final deal in a financing dispute hadn’t been reached. B3 n Scientists are struggling to replicate a new approach for creating stem cells, raising questions about the method. A6 i i i F acebook agreed to buy messaging startup WhatsApp for $19 billion in cash and stock, a record for a venture capital-backed firm. A1 n Some Fed officials argued last month that rate increases might be needed soon, accord- ing to meeting minutes. A1 n The Dow fell 89.84 points to 16040.56. The S&P 500 and Nasdaq also retreated. C4 n Housing starts slid 16% in January, in part due to win- ter weather, but building also fell in warm areas. A2 n Activist shareholder Peltz is renewing his campaign to split up Pepsi, urging a spinoff of its beverage business. B1 n A gauge of China’s factory activity dropped to a seven- month low in February. A10 n Google is considering ex- panding its ultrahigh-speed broadband fiber network to nine more metro areas. B1 n The FCC plans new rules for broadband providers that aim to enforce net neutrality. B4 n Gap told employees it plans to raise its minimum hourly wage to $10 by next year. B3 n Natural-gas prices hit a five- year high on bets frigid weather will further strain supplies. C1 n Bank of America increased CEO Moynihan’s pay by 17% to $14 million for 2013. C2 n Hedge-fund chief Kenneth Griffin gave Harvard $150 mil- lion, its largest gift ever. C1 n Tesla is boosting output of its electric cars. The firm’s quar- terly results beat forecasts. B2 Business & Finance BY JON HILSENRATH AND VICTORIA MCGRANE Fed Puts Rate Increase on the Radar Move Before 2015 Remains Unlikely, but Meeting Minutes Suggest Some Inflation Hawks Are Circling KIEV, Ukraine—President Vik- tor Yanukovych bowed to pres- sure from the West and a widen- ing rebellion at home by agreeing Wednesday to a truce with demonstrators who spent the day staring down riot police across a smoldering no-man’s- land in the center of the capital. The move away from confron- tation came as the U.S. and Eu- rope—blindsided by the violence that left at least 25 people dead—edged toward imposing sanctions on Ukrainian officials they deem responsible for the crackdown. The hasty threats of retalia- tion came as Western leaders groped for ways to respond to a more-assertive Russia, which had urged Mr. Yanukovych to get tough on what it termed extrem- ists. The Obama administration has found itself repeatedly caught off guard by Russian President Vladimir Putin’s moves in places like Syria, Iran and Egypt, or in offering asylum to NSA leaker Edward Snowden. At the same time, months of internal divisions in Europe served to hold up any action on sanctions against Ukraine and undermine Europe’s foreign-pol- icy credibility. Details of the agreed-upon truce appeared to be sketchy, and the two sides previously have agreed to back away from confrontation only to see fight- ing flare anew. Mr. Yanukovych announced over his website that he had agreed with opposition leaders to an end to hostilities, and “the start to negotiations with the aim of ending bloodshed.” But for now Mr. Yanukovych promised not to storm the main encampment in central Kiev, which riot police had sought to clear overnight, according to one opposition leader at the meet- ing, boxer-turned-politician Vi- tali Klitschko. “We have received assurances from Yanukovych that there would be no assault,” Mr. Klitschko said in a statement on his website. “Essentially, what we have is a truce.” On Wednesday the space be- tween the protest camp and po- lice lines was a wasteland of smoldering wooden beams and tires and twisted, red-hot scrap metal. With protesters armed with bats, Molotov cocktails and even guns, expectations were for Please turn to page A8 BY ALAN CULLISON Ukraine Simmers Under Uneasy Truce GERMANTOWN, Md.—Pete Bunce walked into a room at a U.S. military hospital in Germany in March 2004, and stared hard at the unconscious young Marine on the bed. His head, gouged by shrapnel from an insurgent bomb in Iraq, was grotesquely swollen. His face was distorted and his right eye was near blind. Mr. Bunce spoke his first thought: “This is not my son.” The Bunce family and their doctors have spent the decade since trying to restore Justin Bunce to the man they knew, with limited success. Cpl. Bunce remains intelligent and funny. But his brain no lon- ger sends the messages that al- low him to walk smoothly, or to warn him when his behavior might offend or frighten people. “I can’t dream anymore,” he said. “I would even be happy with nightmares, but I don’t even have those.” The wars in Afghanistan and Iraq have left a generation of brain-injured veterans who, like Cpl. Bunce, may get better, but never well. Between Jan. 1, 2001, and Sept. 30, 2013, more than 265,000 U.S. troops suffered traumatic brain injuries, accord- ing to the Defense and Veterans Brain Injury Center. Most were mild concussions. Some 26,250 troops, however, suffered pene- trating head wounds or brain in- juries classified as moderate or severe, which caused uncon- sciousness from 30 minutes to more than a day. The Bunces, their doctors and the Department of Veterans Af- fairs have embarked on an ex- periment that could help deter- mine whether some of these veterans can ever resume some- thing close to regular lives. Cpl. Bunce is one of 119 brain- injured veterans that the VA has placed in privately run group Please turn to page A12 BY MICHAEL M. PHILLIPS SAVED NOT CURED Brain-Injured Vets Search for Solace Facebook Inc. agreed to buy messaging company WhatsApp for $19 billion in cash and stock, a blockbuster transaction that dwarfs the already sky-high prices that other startups have been able to recently command. The 55-employee company, which acts as a kind of replace- ment for text messaging, has seen its use more than double in the past nine months to 450 million monthly users. That makes its service more popular than Twit- ter Inc., the widely used micro- blogging service which has about 240 million users and is currently valued at about $30 billion. The transaction, which in- cludes $3 billion in restricted stock units to be granted to WhatsApp’s founders and em- ployees over four years, ranks as the largest-ever purchase of a company backed by venture capi- tal. Besides making its founders billionaires, the deal marks an enormous windfall for Sequoia Capital, the only venture firm that backed WhatsApp. Sequoia invested about $60 million for a stake valued at up to $3 billion in the deal, according to a person familiar with the matter. The deal price also easily out- ranks any acquisition of startups in recent years, including Face- book’s purchase of photo-sharing app Instagram for more than $1 billion in 2012, and, a year earlier, Microsoft Corp.’s $8.5 billion buy of video-calling company Skype. What isn’t clear is how much revenue WhatsApp makes—the company declined to comment on its sales. It charges 99 cents a Please turn to page A6 By Reed Albergotti, Douglas MacMillan and Evelyn M. Rusli Facebook’s $19 Billion Deal Sets High Bar Ukrainian riot police, above, and protesters battled Wednesday in central Kiev. The president and demonstrators agreed to a truce late in the day. Igor Kovalenko/European Pressphoto Agency (2) Crazy Train: The Iron Horse Built of Bamboo i i i Riders Hang Tight Aboard Cambodia’s Makeshift Railways BY JESSE PESTA BATTAMBANG, Cambodia— Lim Sareub needed a ride home recently, so she did the usual thing. She went to an abandoned train station, sat down on a Dr. Seuss-like contraption just inches above the tracks, then rocketed down the rails on a train made of bamboo. The wiggly old tracks stretched into the distance like two wet noodles. The bamboo train—just a platform the size of a bed, really—gained speed and began shuddering. Weeds lining the tracks whipped at passengers’ thighs. Someone on board casually started swinging a machete off the side, hacking at the underbrush. A chicken flapped out of the way. Please turn to page A12 Crisis and Confrontation Once again, U.S. feels Putin’s sharp elbows ..................... A8 Citizens’ outrage is fueled by exposure to EU ................ A8 Kiev mayhem reveals the EU’s divisions............................ A9 Heard on the Street.................. C10 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 P2JW051000-6-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 P2JW051000-6-A00100-1--------XA
Transcript of TODAYINPERSONALJOURNAL ACurefor...
YELLOW
* * * * * * THURSDAY, FEBRUARY 20, 2014 ~ VOL. CCLXIII NO. 41 WSJ.com HHHH $2 .00
89.84 points, or 0.6%, to16040.56, taking most of thelosses after the 2 p.m. release, ina seesaw trading day also drivenby fresh emerging-market con-cerns. Brian Jacobsen, chiefportfolio strategist at WellsFargo Funds Management LLC,said the Fed’s hawks “are proba-bly going to be beating a drumthat not many people are going
Pleaseturntothenextpage
a distant horizon of a Fed move.Surprising declines in the unem-ployment rate in recent monthshave forced officials to start dis-cussing their plans for eventualrate hikes, what will impel themto act and how to guide the pub-lic about their likely course inthe months ahead.
Investors took the minutes re-lease largely in stride. The DowJones Industrial Average fell
omy from overheating, accordingto minutes of the meeting re-leased Wednesday. These officialswere most likely from the Fed’sband of policy “hawks” who havelargely failed in resisting the cen-tral bank’s easy-money policies.
The fact that the subject cameup at all in January shows howthe central bank’s policy debateis slowly and subtly evolving andmight offer the first glimmers on
December 2008, near the heightof the financial crisis, and Chair-woman Janet Yellen shows noappetite for raising them soon.Investors, seeing that, generallydon’t see Fed rate increases untilwell into 2015, a view also heldby many officials.
Still, a “few” Fed officials ar-gued at a Jan. 28-29 policy meet-ing that increases might beneeded soon to prevent the econ-
Conversation at the FederalReserve’s most recent policymeeting turned to somethingthat hasn’t been a serious topicfor years: the possibility of in-terest-rate increases in the nearfuture.
The Fed has held short-terminterest rates near zero since
DJIA 16040.56 g 89.84 0.6% NASDAQ 4237.95 g 0.8% NIKKEI 14766.53 g 0.5% STOXX600 334.94 À 0.1% 10-YR. TREAS. g 6/32 , yield 2.730% OIL $103.31 À $0.88 GOLD $1,320.60 g $4.10 EURO $1.3733 YEN 102.31
Getty
Images
TODAY IN PERSONAL JOURNAL
A Cure for Canceled FlightsPLUS Losing Russian Hockey Coach: ‘Eat Me Alive’
CONTENTSBusiness Tech............ B8Corporate News B1-4,9Global Finance............ C3Heard on Street..... C10In the Markets........... C4Leisure & Arts............ D4
Markets Dashboard C6Opinion.................. A13-15Sports......................... D5-8Style & Travel......... D1-3U.S. News................. A2-6Weather Watch........ B9World News......... A7-10
s Copyright 2014 Dow Jones & Company.All Rights Reserved
>
What’sNews
i i i
World-Widen Ukraine’s president andopposition agreed to a truceafter a night of deadly vio-lence, amid pressure from theU.S. and Europe. A1, A8-9n The government is consid-ering enlarging the NSA phone-data collection, an unintendedconsequence of suits seekingto stop the surveillance. A4n Twin car blasts targetingIran’s cultural center in a Shi-ite area of Beirut killed six,the latest attack in Lebanonlinked to Syria’s civil war. A7n Iran and world powersagreed to a framework andtimetable for talks on endingTehran’s nuclear threat. A7n Saudi Arabia sidelined itsspy chief, Prince Bandar, asleader of its efforts to armand fund Syrian rebels. A7n Slashing the size of Afghansecurity forces would jeopar-dize U.S. hopes of stabilizingthe country, a report said. A10nObamaand his counterpartsfromMexico and Canada vowedto strengthen trade ties andpursue a trans-Pacific pact. A9nA Nebraska judge ruledthat a law letting the Keystoneoil pipeline be built across thestate is unconstitutional. A3n Italy’s premier-designateplans to present his new cabi-net to the president Saturday,ahead of a confidence vote. A10nPanama saidwork to expandthe Panama Canal will restart,but a final deal in a financingdispute hadn’t been reached. B3n Scientists are struggling toreplicate a new approach forcreating stem cells, raisingquestions about themethod.A6
i i i
Facebook agreed to buymessaging startup
WhatsApp for $19 billion incash and stock, a record for aventure capital-backed firm. A1n Some Fed officials arguedlast month that rate increasesmight be needed soon, accord-ing to meeting minutes. A1n The Dow fell 89.84 pointsto 16040.56. The S&P 500 andNasdaq also retreated. C4n Housing starts slid 16% inJanuary, in part due to win-ter weather, but buildingalso fell in warm areas. A2nActivist shareholder Peltzis renewing his campaign tosplit up Pepsi, urging a spinoffof its beverage business. B1nA gauge of China’s factoryactivity dropped to a seven-month low in February. A10nGoogle is considering ex-panding its ultrahigh-speedbroadband fiber network tonine more metro areas. B1nThe FCC plans new rules forbroadband providers that aimto enforce net neutrality. B4nGap told employees it plansto raise its minimum hourlywage to $10 by next year. B3nNatural-gas prices hit a five-year high on bets frigidweatherwill further strain supplies. C1n Bank of America increasedCEO Moynihan’s pay by 17%to $14 million for 2013. C2nHedge-fund chief KennethGriffin gave Harvard $150 mil-lion, its largest gift ever. C1nTesla is boosting output ofits electric cars. The firm’s quar-terly results beat forecasts. B2
Business&Finance
BY JON HILSENRATHAND VICTORIA MCGRANE
Fed Puts Rate Increase on the RadarMove Before 2015 Remains Unlikely, but Meeting Minutes Suggest Some Inflation Hawks Are Circling
KIEV, Ukraine—President Vik-tor Yanukovych bowed to pres-sure from the West and a widen-ing rebellion at home byagreeing Wednesday to a trucewith demonstrators who spentthe day staring down riot policeacross a smoldering no-man’s-land in the center of the capital.
The move away from confron-tation came as the U.S. and Eu-rope—blindsided by the violencethat left at least 25 peopledead—edged toward imposingsanctions on Ukrainian officialsthey deem responsible for thecrackdown.
The hasty threats of retalia-tion came as Western leadersgroped for ways to respond to amore-assertive Russia, whichhad urged Mr. Yanukovych to gettough on what it termed extrem-ists.
The Obama administrationhas found itself repeatedlycaught off guard by RussianPresident Vladimir Putin’s moves
in places like Syria, Iran andEgypt, or in offering asylum toNSA leaker Edward Snowden.
At the same time, months ofinternal divisions in Europeserved to hold up any action onsanctions against Ukraine and
undermine Europe’s foreign-pol-icy credibility.
Details of the agreed-upontruce appeared to be sketchy,and the two sides previouslyhave agreed to back away fromconfrontation only to see fight-
ing flare anew.Mr. Yanukovych announced
over his website that he hadagreed with opposition leadersto an end to hostilities, and “thestart to negotiations with theaim of ending bloodshed.”
But for now Mr. Yanukovychpromised not to storm the mainencampment in central Kiev,which riot police had sought toclear overnight, according to oneopposition leader at the meet-ing, boxer-turned-politician Vi-tali Klitschko.
“We have received assurancesfrom Yanukovych that therewould be no assault,” Mr.Klitschko said in a statement onhis website. “Essentially, whatwe have is a truce.”
On Wednesday the space be-tween the protest camp and po-lice lines was a wasteland ofsmoldering wooden beams andtires and twisted, red-hot scrapmetal. With protesters armedwith bats, Molotov cocktails andeven guns, expectations were for
PleaseturntopageA8
BY ALAN CULLISON
Ukraine Simmers Under Uneasy Truce
GERMANTOWN, Md.—PeteBunce walked into a room at aU.S. military hospital in Germanyin March 2004, and stared hardat the unconscious young Marineon the bed. His head, gouged byshrapnel from an insurgentbomb in Iraq, was grotesquelyswollen. His face was distortedand his right eye was near blind.
Mr. Bunce spoke his firstthought: “This is not my son.”
The Bunce family and theirdoctors have spent the decadesince trying to restore JustinBunce to the man they knew,with limited success.
Cpl. Bunce remains intelligentand funny. But his brain no lon-ger sends the messages that al-low him to walk smoothly, or towarn him when his behaviormight offend or frighten people.“I can’t dream anymore,” hesaid. “I would even be happywith nightmares, but I don’teven have those.”
The wars in Afghanistan andIraq have left a generation ofbrain-injured veterans who, likeCpl. Bunce, may get better, butnever well.
Between Jan. 1, 2001, andSept. 30, 2013, more than265,000 U.S. troops sufferedtraumatic brain injuries, accord-ing to the Defense and VeteransBrain Injury Center. Most weremild concussions. Some 26,250troops, however, suffered pene-trating head wounds or brain in-juries classified as moderate orsevere, which caused uncon-sciousness from 30 minutes tomore than a day.
The Bunces, their doctors andthe Department of Veterans Af-fairs have embarked on an ex-periment that could help deter-mine whether some of theseveterans can ever resume some-thing close to regular lives.
Cpl. Bunce is one of 119 brain-injured veterans that the VA hasplaced in privately run group
PleaseturntopageA12
BY MICHAEL M. PHILLIPS
SAVED NOT CURED
Brain-Injured VetsSearch for Solace
Facebook Inc. agreed to buymessaging company WhatsAppfor $19 billion in cash and stock,a blockbuster transaction thatdwarfs the already sky-highprices that other startups havebeen able to recently command.
The 55-employee company,which acts as a kind of replace-ment for text messaging, has seenits use more than double in thepast nine months to 450 millionmonthly users. That makes itsservice more popular than Twit-ter Inc., the widely used micro-blogging service which has about240 million users and is currentlyvalued at about $30 billion.
The transaction, which in-cludes $3 billion in restrictedstock units to be granted toWhatsApp’s founders and em-ployees over four years, ranks asthe largest-ever purchase of acompany backed by venture capi-tal.
Besides making its foundersbillionaires, the deal marks anenormous windfall for SequoiaCapital, the only venture firmthat backed WhatsApp. Sequoiainvested about $60 million for astake valued at up to $3 billion inthe deal, according to a personfamiliar with the matter.
The deal price also easily out-ranks any acquisition of startupsin recent years, including Face-book’s purchase of photo-sharingapp Instagram for more than $1billion in 2012, and, a year earlier,Microsoft Corp.’s $8.5 billion buyof video-calling company Skype.
What isn’t clear is how muchrevenue WhatsApp makes—thecompany declined to comment onits sales. It charges 99 cents a
PleaseturntopageA6
By Reed Albergotti,Douglas MacMillanand Evelyn M. Rusli
Facebook’s$19 BillionDeal SetsHigh Bar
Ukrainian riot police, above, and protesters battled Wednesday in central Kiev. The president and demonstrators agreed to a truce late in the day.
Igor
Kovalenko/Eu
ropean
Presspho
toAgency(2)
Crazy Train:The Iron HorseBuilt of Bamboo
i i i
Riders Hang TightAboard Cambodia’sMakeshift Railways
BY JESSE PESTA
BATTAMBANG, Cambodia—Lim Sareub needed a ride homerecently, so she did the usualthing. She went to an abandonedtrain station, sat down on a Dr.Seuss-like contraption justinches above the tracks, thenrocketed down the rails on atrain made of bamboo.
The wiggly old tracksstretched into the distance liketwo wet noodles. The bambootrain—just a platform the size ofa bed, really—gained speed andbegan shuddering.
Weeds lining the trackswhipped at passengers’ thighs.Someone on board casuallystarted swinging a machete off theside, hacking at the underbrush. Achicken flapped out of the way.
PleaseturntopageA12
Crisis and Confrontation Once again, U.S. feels Putin’s sharp elbows..................... A8 Citizens’ outrage is fueled by exposure to EU................ A8 Kiev mayhem reveals the EU’s divisions............................ A9
Heard on the Street.................. C10
Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
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