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THURSDAY, SEPTEMBER 11, 2014 ~ VOL. CCLXIV NO. 61
DJIA 17068.71 À 54.84 0.3% NASDAQ 4586.52 À 0.8% NIKKEI 15788.78 À 0.3% STOXX 600 344.70 g 0.05%
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U.S. to Expand Airstrikes Into Syria, Arm Rebels and Build Coalition in Quest to Roll Back Islamic State
BY CAROL E. LEE
AND JULIAN E. BARNES
i
Business & Finance
WASHINGTON—President Barack Obama authorized the start
of U.S. airstrikes in Syria and expanded a monthlong bombing
campaign in Iraq to “degrade and
ultimately destroy” Islamic militants who recently beheaded two
Americans.
The decisions, outlined Wednesday in a prime-time address to the
I
nvestigators have uncovered a flurry of communications between a Washington
research firm and several hedge
funds, opening a new front in
an insider-trading probe involving a change in government health-care policy. A1
n Banco Santander named
Ana Patricia Botín as chairman, succeeding her father,
Emilio Botín, after his death
from a heart attack. C1, C2
nation on the eve of the 13th anniversary of the Sept. 11 terror attacks, considerably deepen U.S.
military involvement in the Middle
East. They also mark an acknowledgment by Mr. Obama that the intensity of the threat from the militant group Islamic State requires
the type of long-term, open-ended
conflict he has resisted since taking
office—and which he campaigned
for the White House saying he
would avoid.
In asking Americans to support another military incursion in
the Middle East, Mr. Obama said
his strategy to combat Islamic
State, also called ISIS and ISIL,
would be bolstered by a coalition
of Arab and European nations.
His plan builds on his authorization in August of airstrikes in Iraq
to protect American personnel
threatened by Islamic State and
to provide humanitarian assistance to besieged Iraqis.
Mr. Obama said the U.S. goal
now is to help Iraqis reclaim
large swaths of territory the
group has rapidly overtaken in
recent months since spilling
over from its stronghold in
neighboring Syria. His speech
paves the way for the first U.S.
strikes at the group’s bases and
havens in Syria.
“America will lead a broad coalition to roll back this terrorist
threat,” Mr. Obama said. “I will
Remembering 9/11, as the World’s Focus Turns to a New Threat
n Apple’s new service for
mobile payments relies on a
technology that has had
trouble winning acceptance
from merchants. B1, B4
n Microsoft’s talks to buy
Mojang set up a clash of cultures between the tech giant
and “Minecraft” fans. B1, B4
n Sony reached a deal for its
planned Web-based TV service
to carry MTV, Nickelodeon and
20 other Viacom channels. B1
n Ferrari’s chairman is stepping down after rifts with
Fiat came to light. Fiat CEO
Marchionne will take over. B8
n JDS plans to split into two
firms, separating its optical
components business from
its networking operations. B3
TRIBUTE IN LIGHT: Near the National September 11 Memorial in Manhattan, beams of light recall the Twin Towers felled by terrorists 13 years ago.
i
World-Wide
n The Palestinian government
is working on a donor conference for Gaza reconstruction
but Hamas is hurting the push,
the prime minister said. A7
n Israel’s military opened
five criminal probes over its
conflict with Hamas in Gaza. A7
n Cameron made a late
push in Scotland for a united
Britain, urging voters not to
choose independence. A9
n The cost of employer health
coverage in the U.S. continued
its muted growth this year,
rising 3%, a survey found. B2
n The NFL is appointing FBI
ex-chief Mueller to probe the
league’s handling of evidence
in the Ray Rice incident. D5
n A judge temporarily halted
Detroit’s bankruptcy trial after
the city and a bond insurer
reached a tentative deal. A3
CONTENTS
Business Tech..............B4
Corp. News............B2-3,6
Global Finance.............C3
Heard on Street.......C10
In the Markets.............C4
Leisure & Arts.............D4
Market Data.............C5-8
Opinion.....................A11-13
Sports................................D5
Style & Travel..........D1-3
U.S. News...................A2-5
Weather Watch..........B8
World News.......A8-9,14
>
s Copyright 2014 Dow Jones & Company.
All Rights Reserved
Bloomberg News
n Ukraine’s president said
Russia had withdrawn most of
its troops from eastern Ukraine,
bolstering hopes that the
peace deal would stick. A8
n The U.S. is close to imposing
the toughest round of energy
sanctions so far on Russia. A8
‘PAINFUL LEARNING PROCESS’
China’s Global Mining Play
Is Failing to Pan Out
BY WAYNE ARNOLD
DYNASTY: After her father’s death,
Ana Patricia Botín took over Banco
Santander, becoming the first woman
to helm a major European bank. C1
Hedge Funds
Scrutinized in
Washington
Insider Probe
WASHINGTON—Federal investigators have uncovered a
flurry of communications between a Washington research
firm and several hedge funds,
opening a new front in an insider-trading probe focused on
the firm’s 2013 investor alert
about a change in government
health-care policy.
By Brody Mullins,
Susan Pulliam
and Juliet Chung
The Wall Street Journal has
previously reported that the Securities and Exchange Commission is investigating whether
anyone in the government illegally leaked word of the announcement to Height Securities. Now, the agency is looking
at whether hedge funds violated
securities rules by trading on
the resulting alert to Height SePlease turn to the next page
Composite
n Obama authorized the
start of U.S. airstrikes in
Syria and expanded a monthlong bombing campaign in
Iraq to “degrade and ultimately destroy” the militant
group Islamic State. A1, A6-7
n A cornerstone of the widened strategy against Islamic
State will be reliance on U.S.trained local forces to confront the group head on. A6
n Kerry went to Baghdad to
rally support from the new
government to confront the
Islamist insurgency. A6
A Succession in
Spanish Banking
CAPE PRESTON, Australia—A $10 billion iron-ore
mine that has taken more than eight years to develop
near this remote Australian port is a glaring example
of how much has gone wrong with China’s decadelong push to buy up raw materials around the world.
Citic Pacific’s Sino Iron mine cost roughly four
times its initial budget, and analysts who track the
project say it likely will lose hundreds of millions of
dollars in 2014, its first full year of production. Citic
Pacific, a Hong Kong-listed subsidiary of Chinese
state-owned behemoth Citic Group, and its contractors made a series of blunders, from thinking they
could import workers at Chinese pay levels to a
botched bet on currencies that forced the company
to seek a $1.5 billion bailout from its parent.
And while Sino Iron is at last shipping ore, it remains locked in a legal battle with its local partner,
Clive Palmer, a property mogul turned politician who
has accused Citic Pacific of taking Australian resources without fully paying for them.
“It was a painful learning process,” said Zhang Jijing, who spent 16 years running Citic Group’s Australian business before being appointed in late 2009
president and executive director of subsidiary Citic
Pacific, which recently changed its name to Citic Ltd.
“Today I look back and I did not realize it would be
so difficult.”
Over the past decade, China rushed to buy up
global commodities as its economy boomed—both
Please turn to page A10
Replay: New Wizardry Keeps
Pinball Rolling in the Internet Age
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 Vote on spending bill is delayed
over Syria funds request......... A4
 Kerry meets with leader of new
government in Iraq...................... A6
President
Gambles
Delay Was
Worth It
Souped-Up Machines, Global Rankings
Power a Renaissance; Watch Out for Wax
BY JOHN W. MILLER
snazzier machines, trickier
games and a new ranking system
CUYAHOGA FALLS, Ohio—At that compares players from all
the recent Battle at Stonehedge over the world. Leagues and
pinball tournament here, Jessie tournaments like the one in
Carduner cursed her ninth-place which Ms. Carduner competed
finish and vowed to get profes- are mushrooming.
sional help.
The
Interna“I’m
thinking
tional Flipper Pinabout getting a
ball Association in
hypnotist,” said the
New York now
51-year-old linguiscounts
27,000
tics professor at
ranked players, up
Kent State Univerfrom 500 eight
sity. Ms. Carduner,
years ago, and
who is 4 feet 10
1,600 tournaments
inches tall and
a year, up from 50.
wears high heels so
Though half the
she can get a better
players are from
view of the game,
the U.S., aficionasays she practices
dos span the globe,
up to 30 hours a Simpsons pinball machine from Norway to
week but gets jitNew Zealand.
tery at competitions.
Pinball, which grew out of an
She is one of a growing legion 18th-century French variation of
of fans powering a pinball re- billiards known as bagatelle, had
Please turn to page A10
naissance. They are drawn by
President Barack Obama’s
speech to the nation Wednesday night laying out a strategy
for dealing with the threat
from Islamic State extremists
closed the book on one presidential gamble—but opened
the door to a fresh one that’s
only beginning.
The first gamble Mr. Obama
took unfolded over the past
three months, starting on the
day in early June
ANALYSIS when Islamic State
fighters captured
the strategic Iraqi city of Mosul. With that victory, Islamic
State established itself as a legitimate threat to an Iraqi government that the U.S. has
spent hundreds of billions of
dollars propping up.
Yet rather than move quickly
with a big American response,
Mr. Obama instead decided to
delay, using the specter of the
Islamic State threat to generate
pressure on Iraqis to first ditch
Prime Minister Nouri al-Maliki.
The White House had concluded
that Mr. Maliki had become a
divisive Shiite sectarian leader
who stood in the way of overseeing a unified Iraqi government and military capable of
working with the U.S. to really
turn back Islamic State fighters.
A change in Iraq’s government, in short, became the
price for a full dose of American military help. That change
in Baghdad finally came this
week, when Mr. Maliki officially
departed and a new prime minister and government moved in.
That has raised American hopes
that Shiites, Sunnis and Kurds
might become more united in
working with the U.S. to begin
reclaiming ground that Islamic
State forces have seized, and it
Please turn to page A6
Oracle Cloud
Applications
HCM
Human Capital
Recruiting
Talent
CRM
Sales
Service
Marketing
ERP
Financials
Procurement
Projects
Supply Chain
More Enterprise SaaS Applications
Than Any Other Cloud Services Provider
Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
P2JW254000-5-A00100-10EFFB7178F
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Mark Lennihan/Associated Press
n U.S. stocks moved higher,
rebounding from two days of
losses. The Dow added 54.84
points to close at 17068.71. C4
n The SEC unveiled a raft of
cases against company insiders
for allegedly breaking rules on
disclosing holdings and trades. C1
not hesitate to take action against
ISIL in Syria, as well as Iraq. This
is a core principle of my presidency: If you threaten America,
you will find no safe haven.”
The president gave no timetable for the new, U.S.-led fight
Please turn to page A7
BY GERALD F. SEIB
n Currency markets have
re-energized as investors rush
to take advantage of central
banks’ diverging paths. C1
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HHHH $2.00
WSJ.com
Obama Vows to ‘Destroy’ Militants
What’s
News
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