P2JW267000-6-A00100-1--------XA CMYK Composite 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 TODAY IN PERSONAL JOURNAL Toddlers Make a Spectacle PLUS Excuses That Work With the Boss WEDNESDAY, SEPTEMBER 24, 2014 ~ VOL. CCLXIV NO. 72 ****** DJIA 17055.87 g 116.81 0.7% NASDAQ 4508.69 g 0.4% NIKKEI Closed (16205.90) First Wave of Strikes Targets Leaders, Training Camps and Control Centers of Two Extremist Groups Business & Finance TURKEY T ** R. E i Damascus n U.S.-led airstrikes in Syria hit militant leaders, training camps and control centers, U.S. officials said. The attacks targeted both Islamic State and an al Qaeda-linked group that officials feared was planning terror attacks on the U.S. and Europe. Follow-on strikes continued Tuesday. A1, A6, A7 n Israel shot down a Syrian fighter jet that entered its airspace over the Golan Heights, the first such strike in nearly 29 years. A8 n A DOT report faults the rollout of an upgrade to the U.S. air-traffic-control system, saying technology costs may outweigh benefits. A1 n Obama told the U.N. that the U.S. and China have a special responsibility to lead efforts to cut emissions. A4 n The number of Ebola cases could soar unless efforts to curb the outbreak are ramped up, health experts said. A11 n The rate of diabetes in the U.S. may be leveling off after doubling over nearly two decades, a study shows. A3 n Coke, Pepsi and Dr Pepper pledged to cut beverage calories in the U.S. diet by 20%. A3 n Most states will have at least one more insurer selling plans under the health law in the coming year. A4 n The number of inmates in federal prisons is expected to fall by more than 12,000 over the next two years. A4 n A top EU official blasted Russia for renewing threats of retaliation against Ukraine over a trade deal. A10 CONTENTS Business Tech..............B4 Corp. News........B2-3,7,9 Global Finance.............C3 Heard on Street.......C16 Home & Digital.......D1-4 In the Markets.............C4 Leisure & Arts........D5-6 Managing........................B6 Opinion....................A13-15 Sports...........................D7-8 U.S. News...................A2-5 Weather Watch..........B9 World News............A6-11 IRAN Fallujah Baghdad JORDAN 100 miles 100 km *Area is approximate Breakdown of the strikes IN THE FIRST WAVE The USS Arleigh Burke in the Red Sea and the USS Philippine Sea in the northern Persian Gulf launched more than 40 Tomahawk Cruise missiles, targeting province of Aleppo. The majority of these strikes were against Khorasan targets. IN THE SECOND WAVE F-22 Raptors, F-15 Strike Eagles, F-16s, B-1 bombers and drones hit targets in northern Syria, including headquarters buildings (pictured) and training camps run by Islamic State militants. THE THIRD WAVE Involved planes that took off from the USS George Bush, an aircraft carrier, and F-16s based in the Middle East. Those strikes were against Islamic State targets in eastern Syria near Deir Ezzour. Toll of attacks 14 strikes against Islamic State targets 8 strikes against Khorasan targets 160 munitions fired by allied warplanes inside Syria, destroying key buildings and infrastructure of the extremist groups Islamic State and Khorasan. 6 nations involved The U.S., Jordan, U.A.E., Saudi Arabia and Bahrain participated, with support planes from Qatar. Sources: U.S. Department of Defense (airstrikes; stats); Institute for the Study of War (Islamic State areas); U.S. Department of Defense/Reuters (photo) The Wall Street Journal Terror Fears Spurred Expanded Attacks BY SIOBHAN GORMAN AND JULIAN E. BARNES World-Wide IRAQ WASHINGTON—Two weeks after outlining a narrow fight with Islamic State, the U.S. suddenly expanded its offensive, opening a two-front war in Syria against the original target and an al Qaeda-linked group known as Khorasan. The Obama administration Car Owners Talk Dirty To Save Water i i said the decision to include Khorasan—whose leader may have been killed in the rapid succession of airstrikes—was made based on fears that it was planning terrorist attacks on the U.S. and Europe. Khorasan was “nearing the execution phase” in which it had the ability to act quickly, a U.S. official said. The plans involved airline plots with U.S. targets, bombings in Europe and additional plots against Jordan, according to people familiar with the intelligence reports. The move extends the mission President Barack Obama described to the nation early this month, when he said military action in Iraq and Syria would be designed to reclaim territory now held by Islamic State. The president announced his Cadillac Heads to Big Apple Ventura Residents Flaunt Filth, Even Gull Guano BY SARAH SLOAT BY MIRIAM JORDAN > s Copyright 2014 Dow Jones & Company. All Rights Reserved ROAD TRIP: General Motors said it is moving its headquarters for Cadillac, long based in Detroit, to New York City, where GM hopes the struggling car brand can better reach luxury buyers. B7 Report Faults Rollout Of Air-Traffic Upgrade BY SUSAN CAREY AND ANDY PASZTOR An effort to modernize the U.S. air-traffic-control system is seeing such a bumpy rollout that costs associated with some of the core technology outweigh potential benefits, according to a report soon to be released by a federal watchdog. An audit report by the Transportation Department’s inspector general, slated to be released in the next few days, raises new questions about the design, deployment and projected benefits of one of the Federal Aviation Administration’s futuristic ways to enhance monitoring and man- Widening Conflict Mideast coalition formed amid frantic talks............... A6 Syria rebels fear airstrikes could aid Assad................... A7 Advanced F-22 fighter jet makes combat debut........ A7 In Germany, Amazon Keeps Unions at Bay i VENTURA, Calif.—Tom Carrese was cruising down Main Street in his van. “Dirty, dirty, dirty…filthy!” he said with delight, pointing at cars parked along the main drag of this coastal town. Taking a side street, he spotted a grimy gray Nissan pickup at a traffic light and flagged it to stop. At the curb, Mr. Carrese introduced himself as a representative of a local radio station. “I see you haven’t washed your car for a while.” “…because there’s a water shortage,” the driver, Mark Castle, said, completing the sentence. At a gas station nearby, a Subaru Forester was so caked with dirt that it was impossible to tell whether its actual color was forest green, smoky gray or black. “Thank you for not washing your car,” said Mr. Carrese, as he Please turn to page A12 plans to “degrade and ultimately destroy” Islamic State, also known as ISIS and ISIL, but didn’t discuss additional measures to counter threats from al Qaeda operatives and affiliates, which came as a surprise. Senior administration officials said the airstrikes against Khorasan fall within the president’s legal basis for striking IsPlease turn to page A8 The attacks were conducted with the aid of Arab allies, but the U.S. carried out the bulk of the raids. After the first wave of strikes, the U.S. said it conducted follow-on attacks during the day Tuesday that hit two Islamic State armored vehicles in Syria. The U.S. and its allies unleashed more than 160 missiles and bombs on targets inside Syria, disrupting infrastructure used by the extremist groups Islamic State and al Qaeda-linked Khorasan, Pentagon officials said in the first assessments of the impact of the strikes. While it will be days before a definitive conclusion can be drawn, U.S. officials said they believe some leaders of both Islamic State and Khorasan were likely killed in the strikes on training camps and headquarters buildings. The expansion of the military campaign against Islamic State from Iraq to Syria carries significant risks for President Barack Obama’s administration. Mr. Obama has spent his presidency extricating the U.S. from two long and costly wars in Iraq and Afghanistan. Now there is the prospect of getting mired again in a protracted Middle East war. Western-backed rebels fear U.S.-led airstrikes on Islamic State and other extremist groups inside Syria will ultimately tip the balance in the multi-sided civil war in favor of the Syrian regime that Please turn to page A6 KULTUR CLASH Agence France-Presse/Getty Images i Tikrit Al-Bukamal LEBANON R. n Pakistan said it plans to sell a stake in the country’s biggest oil-and-gas business. A8 ri s Deir Ezzour Kirkuk es at hr n HDL’s chief quit amid a probe into fees paid to doctors for blood-sample tests. B3 By Julian E. Barnes in Washington and Sam Dagher in Beirut T ig SYRIA Islamic State control/support or contested up n Norway’s Yara and CF Industries of the U.S. are discussing a merger that would create a global fertilizer giant. B3 IISS T NN Airstrikes n Online retailers and publishers are pushing back against Facebook’s efforts to track users across the Internet. B1, B4 n Nielsen will start measuring mobile TV viewing but many networks, cable and satellite firms haven’t signed on. B1 Erbil Mosul Sinjar Raqqa n Citizens Financial’s IPO was priced at $21.50 a share, below the expected range, raising $3 billion. C1 n Home Depot’s data breach has started to trigger card fraud that is rippling across financial institutions. C2 I RA Q A QI I KKU URR DD Mosul Dam Aleppo n Yields on Treasury bills due Oct. 2 fell into negative territory as demand for shortterm debt pushed up prices. C1 n Stocks slid on soft economic news from Europe. The Dow fell 116.81 to 17055.87. The S&P 500 had its third straight loss. C4 n Pfizer explored a potential inversion deal for Actavis in recent weeks, but talks between the firms have ended. B1 n New inversion rules should discourage new deals by making them harder and less profitable, tax experts said. B2 IR TAA he SEC is investigating whether Pimco artificially boosted the returns of an exchange-traded fund. C1 i WASHINGTON—The first U.S.led airstrikes on extremist groups in Syria hit militant leaders, training camps and control centers, U.S. officials said, promising this was only the start of a long campaign. i agement of aircraft. The document is sharply critical about early implementation of ground-based radio towers that are part of a proposed $4.5 billion network designed to track the locations of planes more precisely than current radar. The new system, dubbed ADS-B, eventually aims to rely primarily on satellite-based navigation and tracking. The report comes as U.S. passenger airlines enjoy the safest period in history, with no fatal accidents in more than six years, though incidents persist involving close calls between jetliners in the air and on the ground. By Please turn to the next page FRANKFURT—German unions are accustomed to wielding formidable influence. Union officials sit on supervisory boards at blue-chip companies. They have a track record of wearing down foreign employers. Not so at Amazon.com Inc. For the 16 years the online retailer has done business in Germany, it has shunned the nation’s consensus-driven labor model. It ignores trade unions and largely dictates contract terms at its nine German distribution centers, where it employs about 9,000. Germany’s Verdi labor union has been trying to change that, signing up Amazon employees and this week launching the latest in a series of strikes in an effort to get management’s ear. It hasn’t gotten far. Currently, the union has no say at Amazon. “From my point of view, Verdi and Amazon don’t go together,” says Robert Marhan, Amazon’s general manager at a warehouse in the central German town of Bad Hersfeld, which has become a logistics hub. As in the U.S., where Amazon has resisted unions, the company in Germany deals directly with its staff, talking with employees and on-site councils of employee representatives. “What we have is a culture that we see as foreign,” says Verdi President Frank Bsirske, who calls Amazon’s approach unilateral and arbitrary. P2JW267000-6-A00100-1--------XA i STOXX 600 341.89 g 1.4% 10-YR. TREAS. À 9/32 , yield 2.535% OIL (new)$91.56 À $0.69 GOLD $1,221.00 À $4.20 EURO $1.2848 YEN 108.88 U.S. Promises Long Campaign in Syria What’s News i HHHH $2.00 WSJ.com Europe’s weak job market, labor reforms, financial crises and pressures of globalization have kept German unions conciliatory in recent years. But with Germany’s economy now stronger, its unions are again flexing their muscles. Union-backed politicians this year pushed through Germany’s first-ever national minimum wage. Verdi last year added members for the first time since its founding in 2001. Amazon has been in Germany since 1998. Verdi, which has 2.1 million members, didn’t approach management with demands about wages and working conditions until 2012. It has wooed some Amazon employees to join the union, although it dePlease turn to page A12 Labor Struggle Germany’s Verdi union membership 3 million 2.1 million, +0.2% 2 1 0 ’01 ’03 ’05 ’07 ’09 ’11 ’13 Source: German Trade Union Federation DGB The Wall Street Journal Composite MAGENTA BLACK CYAN YELLOW