1
YELLOW VOL. CCLXIII NO. 38 ******** SATURDAY/SUNDAY, FEBRUARY 15 - 16, 2014 HHHH $2.00 WSJ.com WEEKEND WHAT WOULD LINCOLN DO? REVIEW WSJ. MAGAZINE the women's style issue n The UAW was dealt a sting- ing defeat as it fell short in an election to organize work- ers at Volkswagen’s plant in Chattanooga, Tenn. A1 n The Dow rose 126.80 to 16154.39 and gained 2.3% for the week, its best weekly show- ing so far this year, despite mixed economic signs. A1 n U.S. industrial output fell 0.3% in January, with the un- expected drop partly blamed on the severe weather. A2 n Euro-zone GDP grew at a 1.1% annual rate in the fourth quarter, below the pace needed to ease unemployment. A7 n Brazilian data suggested that growth has weakened over the past two quarters. A7 n Target staffers raised con- cerns about its payment card system at least two months before a security breach. B1 n Occidental Petroleum is re-evaluating its relationship with a top oil trader. B1 n Berkshire Hathaway has joined the investment frenzy around cable firms, disclosing a stake in Liberty Global. B2 n Federal regulators will let banks provide services to marijuana-related businesses operating under state laws. B2 n Fed Chairwoman Yellen’s husband quit the board of a center funded by UBS. B2 What’s News i i i Business & Finance World-Wide i i i CONTENTS Books........................ C5-10 Cooking...................... D4-6 Corporate News B1,3-4 Heard on Street....... B14 In the Markets.......... B5 Markets Dashboard B6 Opinion.................. A15-17 Sports..................... A11-14 Stock Listings.... B10,13 Style & Fashion..... D1-3 Travel........................ D9-10 Weather Watch...... B14 Wknd Investor.... B7-10 s Copyright 2014 Dow Jones & Company. All Rights Reserved > Inside NOONAN A17 Mrs. Clinton and The Blair Papers T he U.S.’s Arab allies have agreed to provide Syrian rebels with more so- phisticated weaponry, includ- ing shoulder-fired missiles that can take down jets. A1 Syria peace talks re- mained at an impasse amid flaring tensions between Russia and the U.S. A6 n Rhode Island officials and unions reached a tentative ac- cord to water down a sweep- ing pension-overhaul law. A3 n Biden acknowledged con- gressional Democrats’ opposi- tion to Obama’s trade agenda but defended a Pacific pact. A2 n Obama called for creating a $1 billion climate-change fund, a proposal unlikely to gain traction in Congress. A5 n Kerry said he received com- mitments from China on fur- ther steps to press North Korea over its nuclear program. A9 n The NSA’s departing chief said the agency will send data- storage proposals to the White House in the coming week. A3 n Afghan presidential can- didates and election experts worry that the vote set for April could be rigged. A6 n Two Turkish citizens were charged with distributing illegal prescription drugs in the U.S. B3 n Died: Jim Fregosi, 71, base- ball All-Star and manager. AMMAN, Jordan—Washing- ton’s Arab allies, disappointed with Syria peace talks, have agreed to provide rebels there with more sophisticated weap- onry, including shoulder-fired missiles that can take down jets, according to Western and Arab diplomats and opposition fig- ures. Saudi Arabia has offered to give the opposition for the first time Chinese man-portable air defense systems, or Manpads, and antitank guided missiles from Russia, according to an Arab diplomat and several oppo- sition figures with knowledge of the efforts. Saudi officials couldn’t be reached to comment. The U.S. has long opposed arming rebels with antiaircraft missiles for fear they could fall into the hands of extremists who might use them against the West or commercial airlines. The Sau- dis have held off supplying them in the past because of U.S. oppo- sition. A senior Obama adminis- tration official said Friday that the U.S. objection remains the same. “There hasn’t been a change internally on our view,” the official said. The U.S. for its part has stepped up financial support, handing over millions of dollars in new aid to pay fighters’ sala- ries, said rebel commanders who received some of the money. The U.S. wouldn’t comment on any payments. The focus of the new rebel military push is to retake the southern suburbs of Damascus in hopes of forcing the regime to accept a political resolution to the war by agreeing to a transi- tional government without Presi- dent Bashar al-Assad. But if the Manpads are sup- plied in the quantities needed, Please turn to page A6 BY MARIA ABI-HABIB AND STACY MEICHTRY Saudis to Give Syrian Rebels Mobile Antiaircraft Missiles RIYADH, Saudi Arabia—Dai- failluh al-Bugami was just a year old when his parents noticed that his lips turned blue as he slept at night. It was his weight, doctors said, putting pressure on his delicate airways. Now Daifailluh is 3, and at 61 pounds he is nearly double the typical weight of a child his age. So the Bugamis are planning the once unthinkable: To have their toddler undergo bariatric sur- gery to permanently remove part of his stomach in hopes of reducing his appetite and stav- ing off a lifetime of health prob- lems. That such a young child would be considered for weight-loss surgery—something U.S. surgeons generally won’t do—underscores the growing health crisis here and elsewhere in the Middle East. Widespread access to unhealthy foods, cou- pled with sedentary behavior brought on by wealth and the absence of a dieting and exercise culture, have caused obesity lev- els in Saudi Arabia and many other Gulf states to approach or even exceed those in Western countries. While solid national data are hard to come by, some experts say that obesity has turned into a serious health problem for Saudi children, with an esti- mated 9.3% of school-age youths meeting the World Health Orga- nization’s body-mass-index crite- ria for obesity, according to re- search published in 2013 in the Saudi Journal of Obesity. About 18% of school-age children in the U.S. were considered obese in 2010, according to the Centers for Disease Control and Preven- tion. Daifailluh’s doctor, Aayed Alqahtani, is a leading advocate of a radical approach to the problem. Pa- tients travel to him from across the country and the Gulf region. Over the past seven years, he has performed bariatric surgery on nearly 100 children Please turn to page A10 BY SHIRLEY S. WANG GLOBAL GLUTTONY As World’s Kids Get Fatter, Doctors Turn to the Knife *Body-mass index of 30 or more Sources: United Nations; Saudi Journal of Obesity; Aayed Alqahtani The Wall Street Journal Saudi Trouble Saudi Arabia faces a growing weight-related health crisis. Overall obesity rate* 35.2% Obesity rate for school-age children 9.3% Obesity rate for preschool-age children 6.0% Bariatric surgeries in 2012 11,000 Gold Medal Hopes Turned Upside Down for Skier From Down Under TOPSY-TURVY: The former gold medalist in women’s aerials, Australia’s Lydia Lassila, took bronze Friday at the Winter Olympics. Meanwhile, members of the U.S. speedskating team decided to abandon their embattled Under Armour racing suits. See coverage of Sochi 2014 on A11-13 and at WSJ.com. Jae C. Hong/Associated Press SOCHI, Russia—After 10 days in Russia’s sparse Olympic fron- tier, Sonari Glinton glimpsed a beautiful green siren: the Star- bucks mermaid on a crisp white coffee cup. Was she a mirage? Starbucks isn't an Olympic sponsor and is therefore forbid- den to have an official presence here. The nearest Starbucks is about 350 miles away by car in a little-known city called Rostov- on-Don. The only branded coffee player is supposed to be McDonald’s Corp., which has been gaining grounds globally with its McCafé outlets. Olympic sponsors such as McDonald’s usually de- fend their turf more fiercely than a Team Canada goalie. But after Mr. Glin- ton, a journalist for NPR, trailed the mys- tery cup for several hundred feet, its owner told him that he was out of luck. It came from the “office,” she said—the Olympic broadcast- ing center where NBC has its own secret Starbucks. The media giant, which paid $775 million for exclusive U.S. broadcasting rights for the Games, has erected the Sochi Starbucks in its cordoned-off area of the Olympic media cen- ter. Baristas serve the free java 24-hours-a-day to the roughly 2,500 people NBC says it sent here. Bringing in the joe is a delicate exercise. NBC flies in a rotating crew of some 15 baris- tas from Starbucks coffee shops in Russia, sets them up with ac- commodations in Sochi, and pays their regular wages. As with past Games, Starbucks has gladly co- operated with the effort. All told, the barista battalion is larger than the Sochi Olympic teams of some 57 countries. One barista working at the co- vert facility next to the NBC cafe- teria on Friday night said she had come from Moscow; another one Please turn to page A10 BY PAUL SONNE AND ANTON TROIANOVSKI Here’s the Skinny on NBC’s Olympic Latte Secret i i i Network’s Private Coffee Bar Stirs Envy Inside Restricted Java Zone Notice to Readers WSJ.com publishes through the weekend. The Wall Street Journal won’t print Monday on Washington’s Birthday, or Presidents Day. U.S. stocks jumped Friday as investors pushed major indexes to their strongest weekly gains so far this year despite mixed signs of economic growth. The Dow Jones Industrial Av- erage climbed 126.80 points, or 0.8%, to 16154.39 on Friday. The Dow’s weekly surge of 360.31 points, or 2.3%, was the index’s biggest gain since December. The gains have largely erased the losses suffered when stocks tumbled in late January, with the overall stock market re- bounding nearly as fast as it fell. The S&P 500 index is up 5.6% in the past nine trading days, after falling 5.6% in eight ses- sions to its low on Feb. 3. For some analysts and inves- tors, the most remarkable part of this week’s rally is that it was fueled without much positive news. Economic data continued to show a nation in the midst of a patchy recovery, while corpo- rate earnings were hit-and-miss. Yet the overall stock market’s gains underscore the belief by many investors that the econ- omy and companies will grow enough to justify keeping stocks at relatively high levels. Stocks also got a lift from Federal Reserve Chairwoman Janet Yellen, who during her first speech to Congress allayed some worries that the Fed might shift the pace of its plan to dial back its bond-buying push. The precipitous drop in stock Please turn to page A2 BY TOMI KILGORE AND DAN STRUMPF Stocks Turn In Top Week Of Year The United Auto Workers union suffered a crushing defeat Friday, falling short in an elec- tion in which it seemed to have a clear path to organizing work- ers at Volkswagen AG’s plant in Chattanooga, Tenn. The setback is a bitter defeat because the union had the coop- eration of Volkswagen manage- ment and the aid of Germany’s powerful IG Metall union, yet it failed to win a majority among the plants 1,550 hourly workers. Volkswagen workers rejected the union by a vote of 712 to 626. The defeat raises questions about the future of a union that for years has suffered from de- clining membership and influ- ence, and almost certainly leaves its president, Bob King, who had vowed to organize at least one foreign auto maker by the time he retires in June, with a tar- nished legacy. “If the union can’t win [in Chattanooga], it can’t win any- where,” said Steve Silvia, a eco- nomics and trade professor at American University who has studied labor unions. A win would have marked the first time the union has been able to organize a foreign-owned auto plant in the U.S., and would have been particularly meaning- ful, because the vote was set in a right-to-work state in the South, where antiunion sentiment is strong and all past UAW orga- Please turn to page A5 BY NEAL E. BOUDETTE Union Suffers Big Loss At Tennessee VW Plant Visit a Sprint store sprint.com/framily Introducing the Sprint Framily Plan. Saving. It’s a Framily value. C M Y K Composite Composite MAGENTA CYAN BLACK P2JW046000-8-A00100-10FEEB7178F CL,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SL,SW,TU,WB,WE BG,BM,BP,CC,CH,CK,CP,DN,DR,FW,HL,HW,KS,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO P2JW046000-8-A00100-10FEEB7178F

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Page 1: Saudisto Give SyrianRebels MobileAntiaircraftMissilesonline.wsj.com/public/resources/documents/pageone...Games,Starbucks has gladly co-operated with the effort. All told, the baristabattalion

YELLOW

VOL. CCLXIII NO. 38 * * * * * * * *

SATURDAY/SUNDAY, FEBRUARY 15 - 16, 2014

HHHH $2 .00

WSJ.com

WEEKEND

WHATWOULD

LINCOLNDO?

REVIEWWSJ. MAGAZINE

the women's style issue

n The UAWwas dealt a sting-ing defeat as it fell short inan election to organize work-ers at Volkswagen’s plant inChattanooga, Tenn. A1n The Dow rose 126.80 to16154.39 and gained 2.3% forthe week, its best weekly show-ing so far this year, despitemixed economic signs. A1n U.S. industrial output fell0.3% in January, with the un-expected drop partly blamedon the severe weather. A2n Euro-zone GDP grew at a1.1% annual rate in the fourthquarter, below the pace neededto ease unemployment. A7n Brazilian data suggestedthat growth has weakenedover the past two quarters. A7n Target staffers raised con-cerns about its payment cardsystem at least two monthsbefore a security breach. B1n Occidental Petroleum isre-evaluating its relationshipwith a top oil trader. B1n Berkshire Hathaway hasjoined the investment frenzyaround cable firms, disclosinga stake in Liberty Global. B2n Federal regulators willlet banks provide services tomarijuana-related businessesoperating under state laws. B2n Fed Chairwoman Yellen’shusband quit the board of acenter funded by UBS. B2

What’sNews

i i i

Business&Finance

World-Wide

i i i

CONTENTSBooks........................ C5-10Cooking...................... D4-6Corporate News B1,3-4Heard on Street.......B14In the Markets.......... B5Markets Dashboard B6

Opinion.................. A15-17Sports..................... A11-14Stock Listings.... B10,13Style & Fashion..... D1-3Travel........................ D9-10Weather Watch...... B14Wknd Investor.... B7-10

s Copyright 2014 Dow Jones & Company.All Rights Reserved

>

InsideNOONAN A17

Mrs. Clinton andThe Blair Papers

The U.S.’s Arab allieshave agreed to provide

Syrian rebels with more so-phisticated weaponry, includ-ing shoulder-fired missilesthat can take down jets. A1 Syria peace talks re-mained at an impasse amidflaring tensions betweenRussia and the U.S. A6n Rhode Island officials andunions reached a tentative ac-cord to water down a sweep-ing pension-overhaul law. A3nBiden acknowledged con-gressional Democrats’ opposi-tion to Obama’s trade agendabut defended a Pacific pact.A2nObama called for creating a$1 billion climate-changefund, a proposal unlikely togain traction in Congress. A5nKerry said he received com-mitments from China on fur-ther steps to press North Koreaover its nuclear program.A9nThe NSA’s departing chiefsaid the agency will send data-storage proposals to theWhiteHouse in the coming week. A3n Afghan presidential can-didates and election expertsworry that the vote set forApril could be rigged. A6nTwoTurkish citizenswerechargedwith distributing illegalprescription drugs in theU.S.B3nDied: Jim Fregosi, 71, base-ball All-Star andmanager. AMMAN, Jordan—Washing-

ton’s Arab allies, disappointedwith Syria peace talks, haveagreed to provide rebels therewith more sophisticated weap-onry, including shoulder-firedmissiles that can take down jets,according to Western and Arabdiplomats and opposition fig-ures.

Saudi Arabia has offered to

give the opposition for the firsttime Chinese man-portable airdefense systems, or Manpads,and antitank guided missilesfrom Russia, according to anArab diplomat and several oppo-sition figures with knowledge ofthe efforts. Saudi officialscouldn’t be reached to comment.

The U.S. has long opposedarming rebels with antiaircraftmissiles for fear they could fallinto the hands of extremists whomight use them against the West

or commercial airlines. The Sau-dis have held off supplying themin the past because of U.S. oppo-sition. A senior Obama adminis-tration official said Friday thatthe U.S. objection remains thesame. “There hasn’t been achange internally on our view,”the official said.

The U.S. for its part hasstepped up financial support,handing over millions of dollarsin new aid to pay fighters’ sala-ries, said rebel commanders who

received some of the money. TheU.S. wouldn’t comment on anypayments.

The focus of the new rebelmilitary push is to retake thesouthern suburbs of Damascus inhopes of forcing the regime toaccept a political resolution tothe war by agreeing to a transi-tional government without Presi-dent Bashar al-Assad.

But if the Manpads are sup-plied in the quantities needed,

PleaseturntopageA6

BY MARIA ABI-HABIBAND STACY MEICHTRY

Saudis to Give Syrian RebelsMobile Antiaircraft Missiles

RIYADH, Saudi Arabia—Dai-failluh al-Bugami was just a yearold when his parents noticedthat his lips turned blue as heslept at night. It was his weight,doctors said, putting pressure onhis delicate airways.

Now Daifailluh is 3, and at 61pounds he is nearly double thetypical weight of a child his age.So the Bugamis are planning theonce unthinkable: To have theirtoddler undergo bariatric sur-gery to permanently removepart of his stomach in hopes ofreducing his appetite and stav-ing off a lifetime of health prob-lems.

That such a young child would be consideredfor weight-loss surgery—something U.S. surgeonsgenerally won’t do—underscores the growinghealth crisis here and elsewhere in the MiddleEast. Widespread access to unhealthy foods, cou-pled with sedentary behavior brought on bywealth and the absence of a dieting and exercise

culture, have caused obesity lev-els in Saudi Arabia and manyother Gulf states to approach oreven exceed those in Westerncountries.

While solid national data arehard to come by, some expertssay that obesity has turned intoa serious health problem forSaudi children, with an esti-mated 9.3% of school-age youthsmeeting the World Health Orga-nization’s body-mass-index crite-ria for obesity, according to re-search published in 2013 in theSaudi Journal of Obesity. About18% of school-age children in theU.S. were considered obese in2010, according to the Centersfor Disease Control and Preven-

tion.Daifailluh’s doctor, Aayed Alqahtani, is a leading

advocate of a radical approach to the problem. Pa-tients travel to him from across the country andthe Gulf region. Over the past seven years, he hasperformed bariatric surgery on nearly 100 children

PleaseturntopageA10

BY SHIRLEY S. WANG

GLOBAL GLUTTONY

As World’s Kids Get Fatter,Doctors Turn to the Knife

*Body-mass index of 30 or moreSources: United Nations; Saudi Journal ofObesity; Aayed Alqahtani

The Wall Street Journal

Saudi TroubleSaudi Arabia faces a growingweight-related health crisis.

Overall obesity rate* 35.2%Obesity rate forschool-age children 9.3%Obesity rate forpreschool-age children 6.0%Bariatric surgeriesin 2012 11,000

Gold Medal Hopes Turned Upside Down for Skier From Down Under

TOPSY-TURVY: The former gold medalist in women’s aerials, Australia’s Lydia Lassila, took bronze Friday at the Winter Olympics. Meanwhile, membersof the U.S. speedskating team decided to abandon their embattled Under Armour racing suits. See coverage of Sochi 2014 on A11-13 and at WSJ.com.

JaeC.

Hon

g/AssociatedPress

SOCHI, Russia—After 10 daysin Russia’s sparse Olympic fron-tier, Sonari Glinton glimpsed abeautiful green siren: the Star-bucks mermaid on a crisp whitecoffee cup.

Was she a mirage?Starbucks isn't an Olympic

sponsor and is therefore forbid-den to have an official presencehere. The nearest Starbucks isabout 350 miles away by car in alittle-known city called Rostov-on-Don. The only branded coffeeplayer is supposed to beMcDonald’s Corp., which has beengaining grounds globally with itsMcCafé outlets. Olympic sponsorssuch as McDonald’s usually de-

fend their turf morefiercely than a TeamCanada goalie.

But after Mr. Glin-ton, a journalist forNPR, trailed the mys-tery cup for severalhundred feet, itsowner told him that hewas out of luck. Itcame from the “office,”she said—the Olympic broadcast-ing center where NBC has its ownsecret Starbucks.

The media giant, which paid$775 million for exclusive U.S.broadcasting rights for theGames, has erected the SochiStarbucks in its cordoned-offarea of the Olympic media cen-ter. Baristas serve the free java24-hours-a-day to the roughly

2,500 people NBC saysit sent here.

Bringing in the joeis a delicate exercise.NBC flies in a rotatingcrew of some 15 baris-tas from Starbuckscoffee shops in Russia,sets them up with ac-commodations inSochi, and pays their

regular wages. As with pastGames, Starbucks has gladly co-operated with the effort.

All told, the barista battalion islarger than the Sochi Olympicteams of some 57 countries.

One barista working at the co-vert facility next to the NBC cafe-teria on Friday night said she hadcome from Moscow; another one

PleaseturntopageA10

BY PAUL SONNEAND ANTON TROIANOVSKI

Here’s the Skinny on NBC’s Olympic Latte Secreti i i

Network’s Private Coffee Bar Stirs Envy Inside Restricted Java Zone

Notice to ReadersWSJ.com publishes throughthe weekend. The WallStreet Journal won’t printMonday on Washington’sBirthday, or Presidents Day.

U.S. stocks jumped Friday asinvestors pushed major indexesto their strongest weekly gainsso far this year despite mixedsigns of economic growth.

The Dow Jones Industrial Av-erage climbed 126.80 points, or0.8%, to 16154.39 on Friday. TheDow’s weekly surge of 360.31points, or 2.3%, was the index’sbiggest gain since December.

The gains have largely erasedthe losses suffered when stockstumbled in late January, withthe overall stock market re-bounding nearly as fast as itfell.

The S&P 500 index is up 5.6%in the past nine trading days,after falling 5.6% in eight ses-sions to its low on Feb. 3.

For some analysts and inves-tors, the most remarkable partof this week’s rally is that it wasfueled without much positivenews. Economic data continuedto show a nation in the midst ofa patchy recovery, while corpo-rate earnings were hit-and-miss.

Yet the overall stock market’sgains underscore the belief bymany investors that the econ-omy and companies will growenough to justify keeping stocksat relatively high levels.

Stocks also got a lift fromFederal Reserve ChairwomanJanet Yellen, who during herfirst speech to Congress allayedsome worries that the Fedmight shift the pace of its planto dial back its bond-buyingpush.

The precipitous drop in stockPleaseturntopageA2

BY TOMI KILGOREAND DAN STRUMPF

StocksTurn InTopWeekOf Year

The United Auto Workersunion suffered a crushing defeatFriday, falling short in an elec-tion in which it seemed to havea clear path to organizing work-ers at Volkswagen AG’s plant inChattanooga, Tenn.

The setback is a bitter defeatbecause the union had the coop-eration of Volkswagen manage-ment and the aid of Germany’spowerful IG Metall union, yet itfailed to win a majority amongthe plants 1,550 hourly workers.

Volkswagen workers rejectedthe union by a vote of 712 to626. The defeat raises questionsabout the future of a union thatfor years has suffered from de-clining membership and influ-

ence, and almost certainly leavesits president, Bob King, who hadvowed to organize at least oneforeign auto maker by the timehe retires in June, with a tar-nished legacy.

“If the union can’t win [inChattanooga], it can’t win any-where,” said Steve Silvia, a eco-nomics and trade professor atAmerican University who hasstudied labor unions.

A win would have marked thefirst time the union has beenable to organize a foreign-ownedauto plant in the U.S., and wouldhave been particularly meaning-ful, because the vote was set in aright-to-work state in the South,where antiunion sentiment isstrong and all past UAW orga-

PleaseturntopageA5

BY NEAL E. BOUDETTE

Union Suffers Big LossAt Tennessee VW Plant

Visit a Sprint store sprint.com/framily

Introducing the Sprint Framily℠Plan.

Saving.It’s a Framily value.

CM Y K CompositeCompositeMAGENTA CYAN BLACK

P2JW046000-8-A00100-10FEEB7178F CL,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SL,SW,TU,WB,WEBG,BM,BP,CC,CH,CK,CP,DN,DR,FW,HL,HW,KS,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO

P2JW046000-8-A00100-10FEEB7178F