1
YELLOW VOL. CCLXIII NO. 32 ****** SATURDAY/SUNDAY, FEBRUARY 8 - 9, 2014 HHHH $2.00 WSJ.com WEEKEND A Word To The Wise REVIEW The Pleat Goes On OFF DUTY n The U.S. added only 113,000 jobs in January, re- flecting employers’ reluc- tance to take on new workers despite stronger economic growth. Meanwhile, Fed offi- cials don’t appear inclined to alter their policy course. AI, A2 n The Dow rose 165.55 to 15794.08, its second consecu- tive triple-digit gain, capping a wild week for U.S. markets. B1 n Toyota is close to an agreement to pay more than $1 billion to end a U.S. crimi- nal probe of how it disclosed drivers’ complaints of unin- tended acceleration. A1 n Charter plans to nominate a full slate to Time Warner Cable’s board, setting in mo- tion a possible hostile bid. B1 n A German court slammed the ECB’s bond-purchase pro- gram but asked Europe’s top court to weigh its legality. A18 n Bitcoin exchange Mt. Gox halted customer withdrawals, sending prices of the virtual currency sharply lower. B2 n J.P. Morgan’s commodities chief withdrew from a CFTC advisory panel a day after her appointment was disclosed. B2 n ArcelorMittal’s loss nar- rowed, but the steelmaker con- tinued bleeding in Europe. B4 n GM is bumping up discounts on its new Chevrolet Silverado and GM Sierra pickups. B4 What’s News i i i Business & Finance World-Wide i i i CONTENTS Books........................ C5-10 Cooking...................... D8-9 Corporate News.... B1-4 Heard on Street....... B14 In the Markets.......... B5 Markets Dashboard B6 Opinion.................. A15-17 Sports.................... A10-14 Stock Listings.... B10-11 Style & Fashion..... D1-3 Travel........................... D6-7 Weather Watch...... B13 Wknd Investor.... B7-10 s Copyright 2014 Dow Jones & Company. All Rights Reserved > Inside NOONAN A17 America’s Power Grid Under Threat T he NSA collects data from about 20% or less of all U.S. calls, suggesting the program is less perva- sive than widely believed. A1 n Syrian civilians besieged for more than 18 months in an area of Homs began being evacuated under a deal bro- kered by the United Nations. A8 n U.N. experts will press Iran this weekend to start ad- dressing Western suspicions about the military dimension of past nuclear activities. A8 n House Republicans are weighing a plan to include a duo of unrelated policy mea- sures in a bill raising the fed- eral borrowing limit. A4 n America’s top diplomat to Europe lashed out at Rus- sia’s alleged leak of a tapped conversation between her and another U.S. official. A18 n A flight from Ukraine landed safely in Turkey after a trav- eler claiming to have a bomb tried to redirect it to Sochi. A10 n A former government contractor pleaded guilty to leaking national security in- formation to a reporter. A3 n Smartphones and tablets sold in California would have to contain antitheft technology under proposed legislation. A3 n The Yankees’ Alex Rodriguez dropped lawsuits against MLB and the players union and accepted his suspension. n Died: Maxine Kumin, 88, poet laureate who won the Pulitzer for “Up Country.” Toyota Motor Corp. is close to a deal to pay more than $1 bil- lion to end a U.S. criminal probe of how it disclosed drivers’ com- plaints of unintended accelera- tion, according to people famil- iar with the matter. An agreement could come within weeks barring setbacks and would cap a four-year inves- tigation by U.S. authorities. There are still a few sticking points in Toyota’s negotiations with prosecutors, people familiar with the matter said, and any deal could fall apart. The amount of the potential settle- ment also could change. A spokeswoman for Toyota said the Japanese auto maker was cooperating fully with fed- eral prosecutors. “Toyota continues to cooper- ate with the U.S. attorney’s of- fice in this matter,” said spokes- Please turn to page A7 BY CHARLES LEVINSON AND CHRISTOPHER M. MATTHEWS Toyota Nears $1 Billion Deal To End Probe Over Recalls A hiring chill hit the U.S. la- bor market for the second straight month in January, re- flecting employers’ reluctance to take on new workers despite some of the nation’s strongest economic growth in years. U.S. payrolls rose a seasonally adjusted 113,000 in January after December’s lackluster gain of 75,000 jobs, marking the weak- est two-month stretch of job cre- ation in three years, the Labor Department said Friday. Yet the unemployment rate ticked down to 6.6%—the lowest level since late 2008. The decline came because more people found jobs last month as opposed to last year when it fell in part be- cause of unemployed Americans abandoning their job hunts and dropping out of the labor force. The soft hiring numbers join a recent cavalcade of mixed eco- nomic data on exports, housing and manufacturing. These trends, coupled with worries about emerging markets, have unset- tled investors and stoked doubts about a stronger global recovery. The confounding performance comes after months of mounting enthusiasm among many busi- nesses, consumers and investors about stronger expansion. It in- dicates growth in gross domestic product could be settling back near the 2% pace recorded for most of the recovery rather than the better-than-3% annualized gain in the second half of 2013. “The economy got a little ahead of itself late last year,” said Doug Handler, chief U.S. econo- mist at IHS Global Insight. He said economic fundamentals generally remain strong, “but there are headwinds in the first quarter.” The report left several puz- zles unanswered, including the dichotomy of solid growth and weak hiring. Throughout the re- covery, businesses have been able to boost production at a Please turn to the next page BY ERIC MORATH AND NEIL SHAH Slow Jobs Growth Stirs Worry Economy’s Anticipated 2014 Breakout Hits a Speed Bump, but Stocks Shrug Off Disappointing Report MERÅKER, Norway—The distinct smell of animal feces and soil fills the air. A slender figure, barely illuminated by a white ceiling lamp, bends down and strokes the head of a large sow. “You are a good pig, aren’t you?” Jan Thomas Jenssen, 17, says softly. Then he straightens up, pulls down his gray woolen sweater, and heads off to train for cross-country skiing. “My plan is to be- come a farmer, like my dad and his dad be- fore him. But first things first.” Though too young for the Sochi Games, Jan Thomas is considered a strong prospect for future Olympic glory. His most impres- sive credential may not be his technique or recent competitive success, but his birth cer- tificate. He was born in the region of Trøn- delag, a place with short summers of potato farming and long winters of trudging through snow-filled valleys and ice-covered fiords, and where Olympic gold is produced at a remarkable rate. In all, Trøndelag natives have produced more than a fifth of Norway’s medals over the history of the Winter Games—even though the region accounts for only 8% of the country’s total population. At the 2010 Vancouver Olympics, they contributed to eight of the country’s nine gold medals. “How is it possible that an area of about 400,000 people can be responsible for eight out of nine gold medals?” said Stig Arve Sæther, a researcher at the Norwegian Uni- versity of Science and Technology. Norway itself is a Winter Olympics mar- vel: With only five million people, it has won 303 Winter Olympic medals, far more than any other country on the planet. To find a country smaller than world-leading Norway on the all-time Winter Olympics medal table, you have to travel down to Croatia, which ranks 24th with 11 medals. And this month, Norway is fielding one of its strongest teams in almost two gener- ations, with some experts considering it the favorite to win both the highest gold and Please turn to page A13 BY ELLEN EMMERENTZE JERVELL THE TRØNDELAG EFFECT Why Norway Owns the Winter Games WASHINGTON—The National Security Agency’s collection of phone data, at the center of the controversy over U.S. surveil- lance operations, gathers infor- mation from about 20% or less of all U.S. calls—much less than previously thought, according to people familiar with the NSA program. The program had been de- scribed as collecting records on almost every phone call placed in the U.S. But, in fact, it doesn’t collect records for most cell- phones, the fastest-growing sec- tor in telephony and an area where the agency has struggled to keep pace, the people said. The dwindling coverage sug- gests the NSA’s program is less pervasive than widely believed— and also less useful. “Landlines are going away, and new providers are entering the field,” said one person famil- iar with the program. “It’s hard to keep up.” The agency’s legal orders for data from U.S. phone companies don’t cover most cellphone re- cords, a gap the NSA has been trying to address for years. That effort has been slowed by the NSA’s need to fix a host of prob- lems that it uncovered in the program and reported to the U.S. court that oversees NSA surveil- lance in 2009, people familiar with the matter say. Moreover, the NSA has been stymied by how to remove loca- tion data—which it isn’t allowed to collect without getting addi- tional court approval—from U.S. Please turn to page A4 BY SIOBHAN GORMAN NSA Gets Only 20% Of Phone Records Russians Paint a Pretty Picture in Olympic Opening SHOWTIME: Fireworks over the Olympic Park mark the finale of the opening ceremony of the 2014 Sochi Games. After a scramble to get the facilities ready, the ceremony offered a high-tech but selective tour through Russian history—and a glitch in lighting up the Olympic rings. A10-13 Sergey Ilnitsky/European Pressphoto Agency *Share of those 16 and older, working or looking for work Note: Seasonally adjusted data Source: Labor Department The Wall Street Journal Wintry Mix | January’s jobs report Nonfarm payrolls Change, in thousands Unemployment rate Labor-force participation rate* 300 0 50 100 150 200 250 ’14 2013 Three-month moving average January: 6.6% Average rate from 2000–06: 66.4% January: 63.0% 10 0 2 4 6 8 % ’14 2013 64.0 62.0 63.0 65.0 66.0% ’14 2013 Here’s One More Reason to Regret That Tattoo You Got in the ’90s i i i Promoters Balk at Honoring Band’s Offer Of Free Admission to Fans Inked With Logo On a June night in 1998, Eric Greene approached the door at a now-defunct Austin, Texas, con- cert venue. Hoping to get in without a ticket, Mr. Greene flashed a little leg. The doorman glanced at his left calf, saw a rocket-ship tattoo, and waved him in. Mr. Greene had driven more than two hours to see Rocket from the Crypt, a San Diego sextet famous for sweaty live shows, a prolific output dur- ing its mid-1990s hey- day, and an implicit bargain with its most fervent fans: Those who tattooed its logo to their body could get into its shows free. Fast forward 16 years. The rock band is now on a reunion tour. Pent-up demand for the group, which disbanded in 2005, has club shows selling out. Mu- sic-festival promoters have been unwilling to expand the band’s guest list. That’s left Rocket from the Crypt unable to make good on its tattoo bargain. “I find that hard to believe,” says Mr. Greene, now a 47-year- old promotions pro- ducer for Houston’s NBC affiliate who is hoping the reunited band schedules a trip to Texas. Graham Fahey got the message from the band itself. The 37- year-old from Brook- lyn waited too long to buy tickets for a pair of sold-out New York concerts scheduled for April. He thought he had a trick up his sleeve to get in: a rocket tattoo on his left forearm. Alas, when he reached the band’s management to ask, Please turn to page A13 BY RYAN DEZEMBER ‘Rocket’ tat Report unlikely to shift Fed... A2 Shaky data can’t stop rally; Dow rises 165.55 points ........... B1 A foiled hijacking rattles nerves ................... A10 Visit a Sprint store sprint.com/framily Introducing the Sprint Framily Plan. You don’t have to be family to be Framily. C M Y K Composite Composite MAGENTA CYAN BLACK P2JW039000-6-A00100-10EEEB7178F 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,CC,CH,CK,CP,DN,DR,FW,HL,HW,KS,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO P2JW039000-6-A00100-10EEEB7178F

****** $2.00 SlowJobsGrowthStirsWorryonline.wsj.com/public/resources/documents/PageOne020814.pdfYELL OW VOL. CCLXIII NO.32 ***** SATURDAY/SUNDAY,FEBRUARY 8-9,2014 HHHH $2.00 WSJ.com

  • Upload
    others

  • View
    2

  • Download
    0

Embed Size (px)

Citation preview

Page 1: ****** $2.00 SlowJobsGrowthStirsWorryonline.wsj.com/public/resources/documents/PageOne020814.pdfYELL OW VOL. CCLXIII NO.32 ***** SATURDAY/SUNDAY,FEBRUARY 8-9,2014 HHHH $2.00 WSJ.com

YELLOW

VOL. CCLXIII NO. 32 * * * * * *

SATURDAY/SUNDAY, FEBRUARY 8 - 9, 2014

HHHH $2 .00

WSJ.com

WEEKEND

AWordTo TheWise

REVIEWThePleatGoesOn

OFF DUTY

n The U.S. added only113,000 jobs in January, re-flecting employers’ reluc-tance to take on new workersdespite stronger economicgrowth. Meanwhile, Fed offi-cials don’t appear inclined toalter their policy course. AI, A2n The Dow rose 165.55 to15794.08, its second consecu-tive triple-digit gain, capping awild week for U.S. markets. B1n Toyota is close to anagreement to pay more than$1 billion to end a U.S. crimi-nal probe of how it discloseddrivers’ complaints of unin-tended acceleration. A1n Charter plans to nominatea full slate to Time WarnerCable’s board, setting in mo-tion a possible hostile bid. B1n A German court slammedthe ECB’s bond-purchase pro-gram but asked Europe’s topcourt to weigh its legality. A18n Bitcoin exchange Mt. Goxhalted customer withdrawals,sending prices of the virtualcurrency sharply lower. B2n J.P. Morgan’s commoditieschief withdrew from a CFTCadvisory panel a day after herappointment was disclosed. B2nArcelorMittal’s loss nar-rowed, but the steelmaker con-tinued bleeding in Europe. B4nGM is bumping up discountson its new Chevrolet Silveradoand GM Sierra pickups. B4

What’sNews

i i i

Business&Finance

World-Wide

i i i

CONTENTSBooks........................ C5-10Cooking...................... D8-9Corporate News.... B1-4Heard on Street.......B14In the Markets.......... B5Markets Dashboard B6

Opinion.................. A15-17Sports.................... A10-14Stock Listings.... B10-11Style & Fashion..... D1-3Travel........................... D6-7Weather Watch...... B13Wknd Investor.... B7-10

s Copyright 2014 Dow Jones & Company.All Rights Reserved

>

InsideNOONAN A17

America’sPower GridUnder Threat

The NSA collects datafrom about 20% or less

of all U.S. calls, suggestingthe program is less perva-sive than widely believed. A1n Syrian civilians besiegedfor more than 18 months in anarea of Homs began beingevacuated under a deal bro-kered by the United Nations.A8n U.N. experts will pressIran this weekend to start ad-dressing Western suspicionsabout the military dimensionof past nuclear activities. A8n House Republicans areweighing a plan to include aduo of unrelated policy mea-sures in a bill raising the fed-eral borrowing limit. A4n America’s top diplomatto Europe lashed out at Rus-sia’s alleged leak of a tappedconversation between herand another U.S. official. A18nA flight fromUkraine landedsafely in Turkey after a trav-eler claiming to have a bombtried to redirect it to Sochi. A10n A former governmentcontractor pleaded guilty toleaking national security in-formation to a reporter. A3n Smartphones and tabletssold in California would have tocontain antitheft technologyunder proposed legislation. A3nThe Yankees’Alex Rodriguezdropped lawsuits againstMLB and the players unionand accepted his suspension.n Died: Maxine Kumin, 88,poet laureate who won thePulitzer for “Up Country.”

Toyota Motor Corp. is close toa deal to pay more than $1 bil-lion to end a U.S. criminal probeof how it disclosed drivers’ com-plaints of unintended accelera-tion, according to people famil-iar with the matter.

An agreement could comewithin weeks barring setbacksand would cap a four-year inves-tigation by U.S. authorities.

There are still a few stickingpoints in Toyota’s negotiationswith prosecutors, people familiarwith the matter said, and anydeal could fall apart. Theamount of the potential settle-ment also could change.

A spokeswoman for Toyotasaid the Japanese auto makerwas cooperating fully with fed-eral prosecutors.

“Toyota continues to cooper-ate with the U.S. attorney’s of-fice in this matter,” said spokes-

PleaseturntopageA7

BY CHARLES LEVINSONAND CHRISTOPHER M. MATTHEWS

Toyota Nears$1 Billion DealTo End ProbeOver Recalls

A hiring chill hit the U.S. la-bor market for the secondstraight month in January, re-flecting employers’ reluctance totake on new workers despitesome of the nation’s strongesteconomic growth in years.

U.S. payrolls rose a seasonallyadjusted 113,000 in January afterDecember’s lackluster gain of75,000 jobs, marking the weak-est two-month stretch of job cre-ation in three years, the LaborDepartment said Friday.

Yet the unemployment rateticked down to 6.6%—the lowestlevel since late 2008. The declinecame because more people found

jobs last month as opposed tolast year when it fell in part be-cause of unemployed Americansabandoning their job hunts anddropping out of the labor force.

The soft hiring numbers join arecent cavalcade of mixed eco-nomic data on exports, housingand manufacturing. These trends,coupled with worries aboutemerging markets, have unset-tled investors and stoked doubtsabout a stronger global recovery.

The confounding performancecomes after months of mountingenthusiasm among many busi-nesses, consumers and investorsabout stronger expansion. It in-dicates growth in gross domesticproduct could be settling backnear the 2% pace recorded for

most of the recovery rather thanthe better-than-3% annualizedgain in the second half of 2013.

“The economy got a littleahead of itself late last year,” saidDoug Handler, chief U.S. econo-mist at IHS Global Insight. He saideconomic fundamentals generallyremain strong, “but there areheadwinds in the first quarter.”

The report left several puz-zles unanswered, including thedichotomy of solid growth andweak hiring. Throughout the re-covery, businesses have beenable to boost production at a

Pleaseturntothenextpage

BY ERIC MORATHAND NEIL SHAH

Slow Jobs Growth StirsWorryEconomy’s Anticipated 2014 Breakout Hits a Speed Bump, but Stocks Shrug Off Disappointing Report

MERÅKER, Norway—The distinct smell ofanimal feces and soil fills the air. A slenderfigure, barely illuminated by a white ceilinglamp, bends down and strokes the head of alarge sow. “You are a good pig, aren’t you?”Jan Thomas Jenssen, 17, says softly.

Then he straightens up, pulls down hisgray woolen sweater, and heads off to trainfor cross-country skiing. “My plan is to be-come a farmer, like my dad and his dad be-fore him. But first things first.”

Though too young for the Sochi Games,Jan Thomas is considered a strong prospectfor future Olympic glory. His most impres-sive credential may not be his technique or

recent competitive success, but his birth cer-tificate. He was born in the region of Trøn-delag, a place with short summers of potatofarming and long winters of trudgingthrough snow-filled valleys and ice-coveredfiords, and where Olympic gold is producedat a remarkable rate.

In all, Trøndelag natives have producedmore than a fifth of Norway’s medals overthe history of the Winter Games—eventhough the region accounts for only 8% ofthe country’s total population. At the 2010Vancouver Olympics, they contributed toeight of the country’s nine gold medals.

“How is it possible that an area of about400,000 people can be responsible for eightout of nine gold medals?” said Stig Arve

Sæther, a researcher at the Norwegian Uni-versity of Science and Technology.

Norway itself is a Winter Olympics mar-vel: With only five million people, it has won303 Winter Olympic medals, far more thanany other country on the planet. To find acountry smaller than world-leading Norwayon the all-time Winter Olympics medal table,you have to travel down to Croatia, whichranks 24th with 11 medals.

And this month, Norway is fielding oneof its strongest teams in almost two gener-ations, with some experts considering it thefavorite to win both the highest gold and

PleaseturntopageA13

BY ELLEN EMMERENTZE JERVELL

THE TRØNDELAG EFFECT

Why Norway Owns the Winter Games

WASHINGTON—The NationalSecurity Agency’s collection ofphone data, at the center of thecontroversy over U.S. surveil-lance operations, gathers infor-mation from about 20% or less ofall U.S. calls—much less thanpreviously thought, according topeople familiar with the NSAprogram.

The program had been de-scribed as collecting records onalmost every phone call placed inthe U.S. But, in fact, it doesn’tcollect records for most cell-phones, the fastest-growing sec-tor in telephony and an areawhere the agency has struggledto keep pace, the people said.

The dwindling coverage sug-gests the NSA’s program is lesspervasive than widely believed—and also less useful.

“Landlines are going away,and new providers are enteringthe field,” said one person famil-iar with the program. “It’s hardto keep up.”

The agency’s legal orders fordata from U.S. phone companiesdon’t cover most cellphone re-cords, a gap the NSA has beentrying to address for years. Thateffort has been slowed by theNSA’s need to fix a host of prob-lems that it uncovered in theprogram and reported to the U.S.court that oversees NSA surveil-lance in 2009, people familiarwith the matter say.

Moreover, the NSA has beenstymied by how to remove loca-tion data—which it isn’t allowedto collect without getting addi-tional court approval—from U.S.

PleaseturntopageA4

BY SIOBHAN GORMAN

NSA GetsOnly 20%Of PhoneRecords

Russians Paint a Pretty Picture in Olympic Opening

SHOWTIME: Fireworks over the Olympic Park mark the finale of the opening ceremony of the 2014 Sochi Games. After a scramble to get thefacilities ready, the ceremony offered a high-tech but selective tour through Russian history—and a glitch in lighting up the Olympic rings. A10-13

Sergey

Ilnitsky/Eu

ropean

Presspho

toAgency

*Share of those 16 and older, working or looking for work Note: Seasonally adjusted data

Source: Labor Department The Wall Street Journal

Wintry Mix | January’s jobs reportNonfarm payrollsChange, in thousands

Unemployment rate Labor-forceparticipation rate*

300

0

50

100

150

200

250

’142013

Three-monthmoving average January: 6.6%

Average rate from2000–06: 66.4%

January: 63.0%

10

0

2

4

6

8

%

’142013

64.0

62.0

63.0

65.0

66.0%

’142013

Here’s One More Reason to RegretThat Tattoo You Got in the ’90s

i i i

Promoters Balk at Honoring Band’s OfferOf Free Admission to Fans Inked With Logo

On a June night in 1998, EricGreene approached the door at anow-defunct Austin, Texas, con-cert venue. Hoping to get inwithout a ticket, Mr. Greeneflashed a little leg. The doormanglanced at his left calf, saw arocket-ship tattoo,and waved him in.

Mr. Greene haddriven more than twohours to see Rocketfrom the Crypt, a SanDiego sextet famousfor sweaty live shows,a prolific output dur-ing its mid-1990s hey-day, and an implicitbargain with its mostfervent fans: Thosewho tattooed its logoto their body couldget into its shows free.

Fast forward 16 years. Therock band is now on a reuniontour. Pent-up demand for thegroup, which disbanded in 2005,

has club shows selling out. Mu-sic-festival promoters have beenunwilling to expand the band’sguest list.

That’s left Rocket from theCrypt unable to make good onits tattoo bargain.

“I find that hard to believe,”says Mr. Greene, now a 47-year-

old promotions pro-ducer for Houston’sNBC affiliate who ishoping the reunitedband schedules a tripto Texas.

Graham Fahey gotthe message from theband itself. The 37-year-old from Brook-lyn waited too long tobuy tickets for a pairof sold-out New Yorkconcerts scheduled forApril. He thought he

had a trick up his sleeve to getin: a rocket tattoo on his leftforearm. Alas, when he reachedthe band’s management to ask,

PleaseturntopageA13

BY RYAN DEZEMBER

‘Rocket’ tat

Report unlikely to shift Fed... A2 Shaky data can’t stop rally;

Dow rises 165.55 points........... B1

A foiled hijacking rattles nerves................... A10

Visit a Sprint store sprint.com/framily

Introducing the Sprint Framily℠Plan.

You don’t have to befamily to be Framily.

CM Y K CompositeCompositeMAGENTA CYAN BLACK

P2JW039000-6-A00100-10EEEB7178F CL,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SL,SW,TU,WB,WEBG,BM,CC,CH,CK,CP,DN,DR,FW,HL,HW,KS,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO

P2JW039000-6-A00100-10EEEB7178F