2014 10 24 cmyk na 04 - the wall street...
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* * * * * * FRIDAY, OCTOBER 24, 2014 ~ VOL. CCLXIV NO. 98 WSJ.com HHHH $2 .00
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TODAY IN MANSION
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CONTENTSArt.................................. D2,7Corporate News... B2-4Global Finance............ C3Heard on the Street C8In the Markets....... C4,5Movies........................ D3-5
Opinion................... A11-13Television...................... D8Theater....................... D7,9Sports........................... D10U.S. News................. A2-5Weather Watch........ B6World News........... A6-9
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What’sNews
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World-Widen A doctor in New York whohad treated Ebola patients inWest Africa tested positive forthe virus, setting up a newfront in the U.S.’s attempt tocontrol the disease’s spread. A1n Researchers will test theeffectiveness of transfusingblood products fromEbola sur-vivors into infected patients.A5n The gunman who killed aCanadian soldier had soughta passport to travel to Syria,investigators said. A1n The shooting is promptinga review of Canada’s securityand intelligence protocols. A7nDemocrats are failing todraw enough support fromwomen in three key Senateraces, recent polls suggest. A4n China’s Communist Partyvowed to improve the legalsystem, even as it reasserteddominance over the courts. A8n EU leaders agreed on aset of long-term targets onenergy and climate change. A8n Israelis and Palestiniansstaged angry demonstrationsa day after a Palestinian driverkilled an Israeli infant. A6nA review of photos smug-gled out of Syria that appear toshow prison torture has identi-fied only a few victims. A6nQatar and Kuwait are toolax about Islamic State financ-ing activities, the U.S. said. A6nSouth Carolina’sHousespeaker quit and admitted cam-paign-finance violations. A2nArchaeologists uncoveredperhaps the world’s highestand oldest Ice Age settlementin the Peruvian Andes. A9
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Amazon’s loss widened to$437 million, its worst in
14 years, as the company’s am-bitious expansion plans hurtthe bottom line. Shares slid12% in after-hours trading. A1n A Comcast executive tookaim at HBO over its plannedstreaming-video service, sayingthe move could cannibalize alucrative pay-TV business. B1nMicrosoft’s revenue, ex-cluding its recently acquiredNokia business, rose 11% lastquarter as the company out-paced corporate-tech rivals. B1nU.S. stocks rallied, aided bybetter-than-expected earningsreports. The Dow climbed216.58 points to 16677.90. C1n GM’s sales in North Amer-ica helped the auto makerearn a $1.47 billion profitbefore deferred payouts. B3nU.S. airlines posted soaringprofits and forecast a strongfourth quarter on falling fuelprices and strong demand. B4n Coke is replacing its mar-keting chief with the head ofits Iberian business as it seeksto improve poor soda sales. B1n Tesco said its chairmanwould step down as the U.K.retailer disclosed more ac-counting problems. B2nAudi recalled A4 sedans be-cause of a software glitch af-fecting air bags. Honda nameda new safety executive. B3nRengan Rajaratnam agreedto pay over $840,000 to settlea civil insider-trading case. C2nCaterpillar reported a sur-prise profit jump, aided by costcuts and locomotive sales. B4
Business&Finance
Three weeks before MichaelZehaf-Bibeau killed a Canadiansoldier and thrust the govern-ment into a terrified lockdownon Wednesday, he came to Ot-tawa to get a passport so hecould travel to Syria, police said.On Tuesday, he prayed and sleptin a downtown hostel for thehomeless where he had beenstaying.
A number of details about Mr.Zehaf-Bibeau emerged Thursdaythat began to fill in a picture ofa middle-class suburban youthwho grew estranged from his
family—last week he had lunchwith his mother, Susan Bibeau, afederal civil servant he hadn’tseen in five years—and de-scended into a string of pettycrimes. What authoritiescouldn’t yet answer was whythat led to the attack.
“I think the passport figured
prominently in his motives,” saidBob Paulson, the commissionerof the Royal Canadian MountedPolice. Investigators learned ofhis plans to travel to Syria fromhis estranged mother onWednesday, the RCMP said, afterthe shooting and his own death.
Mr. Zehaf-Bibeau was on ra-dar of Canadian intelligence anddeemed a man “down on life,”according to one person familiarwith the investigation. But hewasn’t on a list of 90 Canadiansdeemed “high-risk” travelers be-cause of their potential for ter-
ror links abroad, according tothe RCMP.
He may have had links, how-ever, to one such person. Investi-gators said they are probing apossible connection to a Vancou-ver-area man who is believed tohave traveled to Syria. That manis Hasibullah Yusufzai, accordingto a U.S. official.
In July, Mr. Yusufzai becamethe first person charged in Can-ada under a law passed last
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By Alistair MacDonaldin Toronto,
Paul Vieira in Ottawaand Siobhan Gorman
in Washington
Gunman’s Journey to TerrorShooter SoughtPassport to SyriaBeforeAttack;EarlierYearsMarkedWithPettyCrimes
Chris
Wattie/Re
uters
Amazon’s Spending BingeLeads to a Large Loss
Over the past few years, Helen Nonini, a 35-year-old executive in Milan, has sold off most of her once-beloved Gucci handbags and accessories. She evengot rid of a roomy Gucci travel satchel she receivedas a gift.
“I just don’t want to be categorized,” says Ms.Nonini. “I don’t want someone in the street to lookat me and know right away who designed the bagI’m carrying or how much I paid for it.” Lately shehas been favoring other big-ticket, albeit logo-less,labels like Bottega Veneta.
Winning back customers like Ms. Nonini—manyof whom are unexcited by the luxury brands that
BY MANUELA MESCO
LOSING LUSTER
Gucci Finds Its BrandOf Luxury a Tough Sell
Amazon.com Inc.’s soaringambitions are coming at a steepcost, dragging the e-commercegiant to its largest quarterly lossin 14 years.
A surge in spending on new-product development, music andvideo licensing, and other partsof the Seattle company’s expan-sion strategy led to a net loss of$437 million in the third quarter,worse than its year-earlier lossof $41 million. The wider losscame despite a 20% jump in rev-enue to $20.58 billion.
In another stumble, Amazontook a $170 million charge on itsAmazon Fire smartphone, whichwas released in July but is sell-ing poorly, analysts say. Thecompany also issued a lukewarmsales forecast for the currentquarter, its most important ofthe year because of holiday-re-lated spending.
Investors punished Amazonfor the disappointing results, re-leased after the close of regulartrading Thursday. In after-hourstrading, its shares skidded 12%,or $33.43, to $279.75, their low-
BY GREG BENSINGER
SAN FRANCISCO—The mostclosely guarded assets at AT&TPark are hidden just behind thecenter-field wall. A massive over-head net shields them from fall-ing baseballs, and a group ofminders keeps eager fans fromgetting too close.
They are the stars of the SanFrancisco Giants’ farm system: ra-dicchio, cilantro, sorrel and kale.And don’t overlook the tarragon,Swiss chard, lemon grass andsage.
Just steps from the field wherethe World Series will resume withGame 3 on Friday night, morethan two dozen vegetables, herbsand fruits are growing in the Gi-
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BY BRIAN COSTA
InWorld Series,Giants Field aVegetable Patch
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Team’s GardenHas Lots of Fans;
No Stealing
provided a thrill for so long—is an uphill battle forGucci, whose red-hot growth has sputtered.
On Thursday, Gucci’s parent, Kering SA, saidthird-quarter sales for the brand declined 1.6% com-pared with the same period a year ago. Overall salesat the luxury conglomerate rose by 3.3%, to €2.6 bil-lion ($3.29 billion).
Those results are part of a continuing trend. Ac-cording to Bain, global sales growth of accessoriessuch as handbags and shoes has been decelerating.They grew by 7% last year, compared with 16% in2012, and are expected to rise 5% this year.
The travails of Gucci, whose sleek stores and cov-eted goods helped fuel the rise of luxury mega-
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Canadian lawmakers gave a hero’s welcome to Kevin Vickers, sergeant-at-arms of the House of Commons, one day after he shot the gunman.
Microsoft outpaces peers......... B1
Security under review .............. A7
est level since June 2013.Amazon’s chief financial of-
ficer, Tom Szkutak, struck amore cautious tone in a confer-ence call with reporters than hehas in the past, suggesting thatthe fast-moving company mightbe forced to get choosier aboutwhere it invests.
“We do have a lot of opportu-nities in front of us,” he said.“We certainly have been in sev-eral years now of what I will callan investment mode, but weknow that we have to be very se-lective about which opportuni-ties we pursue.”
For years, Amazon won thedevotion of investors with quar-ter after quarter of skyrocketingsales and optimism about long-term projects seen as generatorsof even more growth. But skepti-cism about the payoff from someof the investments has beengrowing, and the company’sshares had sunk 21% since thestart of this year before Amazonreported its results Thursday.
So far in 2014, Amazon hasPleaseturntothenextpage
A doctor who had returned toNew York City recently aftertreating Ebola patients in WestAfrica tested positive for the vi-rus on Thursday, officials said,setting up a new front in the na-tion’s attempt to control thespread of the deadly disease.
Craig Spencer, a 33-year-oldphysician who had worked withDoctors Without Borders inGuinea until returning to the U.S.a week ago, is the fourth patientto be diagnosed with Ebola inthe U.S. and the ninth to betreated here.
Dr. Spencer called the NewYork City Department of Healthand Mental Hygiene at about11:52 a.m. to report that he had afever and gastrointestinal prob-lems, and had quarantined him-self inside a fifth-floor apart-ment on West 147th Street inManhattan, authorities said. AFire Department of New Yorkhazardous materials team put Dr.Spencer in an exposure suit andtransported him to Bellevue Hos-pital Center, the official said.
He tested positive less thanthree weeks after Liberian ThomasEric Duncan, the first person diag-nosed on U.S. soil, died on Oct. 8.The subsequent Ebola diagnoses oftwo nurses who treated Mr. Dun-can raised concerns that the na-tion’s medical systems weren’twell-equipped to stop the spread
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By Josh Dawsey,Andrew Tangeland Betsy McKay
New YorkPhysicianContractsEbola
Narrowing Gender Gap Aids GOP
UNDER PRESSURE: Recent polls suggest the Democrats are failing todraw enough support from women in three key Senate races, includingin Colorado, where Sen. Mark Udall, above, faces a tough fight. A4
AssociatedPress
New policies at U.S. schools... A5 Travel delays hit Africa effort... A5 Study to test transfusions..... A5
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