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VOL. CCLXIV NO. 75 * * * * * * * * *

SATURDAY/SUNDAY, SEPTEMBER 27 - 28, 2014

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review

Where InnovationComes FromByWalter Isaacson

ture, according to people familiarwith the matter.

The move reverberatedthrough financial markets in adramatic reminder of the influ-ence Mr. Gross built as a success-ful, high-profile investor. Theyield on the 10-year benchmark

Please turn to page A6

tor had decided to resign fromPimco when he found out thatother executives there planned tofire him, according to people fa-miliar with the matter.

Mr. Gross said in a statementthat Janus is “the right fit at theright time in my career—and mylife.” He couldn’t be reached forfurther comment. He recentlyearned more than $200 million ayear at Pimco but will receive noseverance as part of his depar-

by-one into the chief executive’soffice with an ultimatum, saypeople familiar with the matter:Either Bill goes or I go.

On Friday, Mr. Gross wasgone, off to Janus Capital GroupInc. to run a tiny bond fund thatwas started in May. What theDenver company—only a tenth asbig as Pimco in assets undermanagement—didn’t say in an-nouncing the hire was that theworld’s most famous bond inves-

port Beach, Calif., firm, blamingspecific executives, according toa person familiar with the situa-tion. The 70-year-old Mr. Grossfired off the angry missive eventhough Pimco’s executive com-mittee had previously warnedhim to tone down volatile behav-ior that included yelling at co-workers.

For many executives at Pimco,the email was the last straw. Af-ter that, some of them went one-

Weeks before he quit Friday,the man who brought bond in-vesting to the masses sent ascornful email to other top exec-utives at Pacific InvestmentManagement Co., the firm he co-founded in 1971 and built into agiant.

Bill Gross’s email included a10-point outline of what he sawas major problems at the New-

WEEKEND

REVIEW offduty

ABigWeekendInLittle

Providence

OFF DUTY

n Bill Gross stepped downfrom bond giant Pimco tojoin Janus. Gross decided toresign after he learned thatother Pimco executivesplanned to fire him. A1, A6, B1n News of Gross’s departurehelped spur selling in aTreasury market that was al-ready under pressure. B5

n Stocks surged, capping aturbulent week for markets,with the Dow gaining 167.35points, or 1%, to 17113.15. B5

n Federal prosecutors areinvestigating Commerzbankfor alleged violations ofmoney-laundering laws. B1

n Starboard Value has takena stake in Yahoo and pushedthe Internet portal to explorea combination with AOL. B1

n The U.S. economy is re-gaining traction on businessinvestment and a modestpickup among consumers. A2

n BlackBerry’s loss narrowedas cost-cutting lifted mar-gins, but revenue fell shortof analysts’ expectations. B3

n Alibaba gave Credit Suisseand Morgan Stanley the big-gest cut of an incentive poolfor its IPO underwriters. B2

n Ford recalled 850,000 ve-hicles amid concerns a glitchcould cause air bags to mal-function in an accident. B3

n TGI Fridays plans to becomethe latest restaurant firm toeffectively exit the businessof running restaurants. B3

What’sNews

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Business & Finance

World-Wide

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CONTENTSBooks..........................C5-10Corp. News................B3-4Eating...........................D5-7Heard on Street.......B14In the Markets............B5Letters to Editor......A14

Opinion....................A13-15Sports.............................A12Style & Fashion.....D2-4The Week.......................C4U.S. News..................A2-7World...................A8-10,16Wknd Investor........B7-9

s Copyright 2014 Dow Jones & Company.All Rights Reserved

InsideNOONAN A15

RepublicansNeed

A Direction

C ivilians and rebels acrossSyria protested allied air-

strikes against extremists,underscoring the challengethe U.S.-led campaign facesin dealing with complex tiesamong rival factions. A1, A8-9 Cameron secured parlia-mentary support for the U.K.to join airstrikes in Iraq. A9

n A fire allegedly caused bya contractor at an air-trafficcontrol center near Chicagogrounded over 2,000 flights. A1

n Ukraine tentativelyagreed to pay $3.1 billion indebt to resume some gas de-liveries from Russia. A10

n Russia’s Parliamentpassed a bill limiting foreignownership of Russian mediacompanies to 20%. A10

n A week of talks betweenIran and six powers on Teh-ran’s nuclear program madelittle headway closing gaps. A9

n Kathryn Ruemmler andDonald Verrilli are under con-sideration by Obama to bethe next attorney general. A4

n The former leader ofSpain’s Catalonia region de-fended himself against cor-ruption allegations. A10

n U.S. prosecutors won’t askdefendants who plead guiltyto waive their right to appealover bad legal advice. A4

n Oklahoma police are seek-ing FBI help after a man al-legedly attacked co-workers,beheading one victim. A7

BY KIRSTEN GRIND

‘Bond King’ Loses Showdown at FirmPimco Founder Gross Abdicates After Co-Workers Threaten to Quit Over His Criticism; Moves to Rival Janus

Thousands of civilians andrebels across Syria protested al-lied airstrikes against extremistmilitants that continued on Fri-day, underscoring the challengethe U.S.-led campaign faces indealing with complex ties amongrival rebel factions.

The attacks are leading toconfusion on the ground andnew complications for Americanpolicy makers, as they try tonavigate the tensions betweenthe more moderate Syrian reb-els they back and extremist ones.

Many of these moderate Syr-ian rebels—a linchpin of theObama administration’s Syriastrategy to better train and armthe opposition—accuse the U.S.of excluding them from theWest’s strategy on Syria and ofundercutting their efforts to oustPresident Bashar al-Assad.

The risks were highlighted bythe Friday protests, with demon-strators raising anti-Americanbanners—a notable departurefrom when activists pleaded forinternational intervention in theearly days of the Syrian conflict.

The unrest stemmed largelyfrom the U.S. decision this pastweek to target not only the ex-tremist Islamic State militantgroup in Syria, but also a secondcluster of fighters, what Americanofficials call the Khorasan group.

When U.S. missiles and bombswere fired at sites used by Khor-asan this week as part of the of-fensive against Islamic Stateforces, American officials saidthe strikes were intended to dis-rupt an imminent Khorasan ter-ror plot directed at the West.

To many Syrians, however, theKhorasan militants are indistin-guishable from the Nusra Frontrebel group, which opposes bothPresident Assad and the foreignfighters of the Islamic State mili-

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BY SIOBHAN GORMANAND MARIA ABI-HABIB

AirstrikesIn SyriaRoil RebelAlliances

Jason Adams, a business-development executiveby day and a molecular biologist by training, hadnever considered himself a hacker. That changedwhen he discovered an off-label way to monitor his8-year-old daughter’s blood-sugar levels from afar.

His daughter Ella has Type 1 diabetes and wearsa glucose monitor made by Dexcom Inc. The devicemeasures her blood sugar every five minutes anddisplays it on a nearby receiver the size of a pager,a huge advantage in helping monitor her bloodsugar for spikes and potentially fatal drops. But itcan’t transmit the data to the Internet, which meantMr. Adams never sent Ella to sleepovers for fear shecould slip into a coma during the night.

Then Mr. Adams found NightScout, a system cob-bled together by a constellation of software engi-neers, many with diabetic children, who were frus-trated by the limitations of current technology. Theopen-source system they developed essentiallyhacks the Dexcom device and uploads its data to theInternet, which lets Mr. Adams see Ella’s blood-

sugar levels on his Pebble smartwatch wherever sheis. It isn’t perfect. It drains cellphone batteries, cancut out at times and hasn’t been approved by theFood and Drug Administration. But for many, it hasfilled a gap.

The home-built setup is part of a shift in the wayAmericans relate to the medical industry and theirown health care. Technologically savvy patients arestarting to tinker under the hoods of medical con-traptions, seeking more influence over devices likeblood-sugar monitors, insulin pumps and defibrilla-tors that record and control bodily functions. Theirgoal is greater access to data and faster inventionthan is possible under the formal regulatory pro-cess.

Patients have been tweaking hearing aids so theyplay music, using 3-D printers to make their ownprosthetics and fiddling with a device used to mea-sure acidity levels in the esophagus. The Massachu-setts Institute of Technology has been hosting“hackathons” where engineers and students try toimprove medical products and work out new solu-

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BY KATE LINEBAUGH

DO­IT­YOURSELFERS

Hackers Tinker With Medical Devices

CHICAGO—A fire allegedlycaused by a contract employee ata main air-traffic control centernear Chicago grounded more than2,000 flights Friday and high-lighted again the vulnerability ofthe nation’s air-travel system.

The Federal Aviation Adminis-tration facility in Aurora, Ill.,which handles high-altitude traf-fic in and around Chicago, wasevacuated and the fire wasquickly extinguished, but only af-ter it disabled some gear. Flightsto and from Chicago’s two air-ports slowly started resumingsome five hours later.

The Federal Bureau of Investi-gation said late Friday that BrianHoward, 36 years old, had beencharged by the U.S. District Courtin Chicago on Friday with onecount of destruction of aircraft or

Please turn to the next page

BY SUSAN CAREYAND ANDY PASZTOR

Fire Tied toWorker SnarlsAir TrafficAcross U.S.

As New Leader Arrives in U.S., Indians Celebrate Art of Diplomacy

DUBLIN—When Patrick Murphymoved to a small town in westernIreland a decade ago, there werealready two other Patrick Mur-phys in the neighborhood.

They weren’t relatedand lived in differenthomes. But they all sharedthe same address:Dromtrasna Collins, Ab-beyfeale, County Limerick.

Like many parts of ru-ral Ireland, the towndoesn’t use house num-bers. Some addressesdon’t even carry streetnames. And unlike the restof Europe and most of theindustrialized world, Ire-land also doesn’t havepostal codes—the equivalent of aZIP Code in the U.S.

The Abbeyfeale postman firstdelivered mail to the Patrick Mur-phy who had lived in the village

the longest, and they worked itout from there.

“My neighbors would get itfirst,” said Mr. Murphy, 40 yearsold. “They’d have a good read, andthey’d go, ‘No it’s probably notus.’ ”

Now, the governmenthere wants to end confu-sion like this, and plans toroll out the country’s firstpostal-code system nextspring. It promises to beone of the world’s mostspecific—assigning an in-dividual number to everyresidence and business.

That is far more precisethan in the U.K., where aunique code might encom-pass more than a dozenhomes. In the U.S., a ZIP

Code can include an entire town.Many Irish citizens, however,

say the system is pushing the en-velope. It’s intrusive, they say. And

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BY LISA FLEISHER

The Irish Post Office Has a PlanTo Tell One Murphy From Another

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Does One Residence, One Zip Code PortendA Loss of Charm? Pushing the Envelope

SIDE BY SIDE: An Indian tattoo artist paints portraits of President Obama and Indian Prime Minister Narendra Modi, who is visiting the U.S. in a bidto rebuild ties. Plans include White House meetings and likely talks on arms purchases, and a mass rally in New York. A16, updates on WSJ.com.

Diabetes patient Evan Costik, 6,pumps a dose of insulin.

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Pimco veteran to take reins.... A6 Should investors chase Gross?... B1 Heard on the Street.................. B14

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British Parliament approvesairstrikes in Iraq............................ A9

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