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What’sNews

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World-WidenThe Secret Service cameunder harsh criticism over therecent White House securitybreach and other lapses. A1nHealth officials diagnosedthe first U.S. case of Ebola in apatient who arrived in Texasfrom Liberia 10 days ago. A1n Pro-democracy rallies ex-panded across Hong Kong,threatening to raise the chanceof confrontation. A1, A10-11nThe U.S. air campaignagainst Islamic State is cre-ating new strains on a tight-ening Pentagon budget. A4n Britain carried out its firstairstrikes in Iraq after Parlia-ment granted permission tojoin the U.S.-led campaign. A12n Turkey prepared to debatea measure that would let thegovernment order military op-erations in Syria and Iraq. A12n Afghanistan signed secu-rity pacts with the U.S. andNATO, paving the way forforeign troops to remain. A8n The U.S. and India agreedto forge closer defense and se-curity ties at a meeting be-tween Obama and Modi. A8nCalifornia will become thefirst state to let relatives seekgun seizures from someonesuspected of posing a threat.A4n The U.S. is retaining somenuclear-warhead componentsfor a possible defense againstearthbound asteroids. A3n Earth lost half its wildlifein the past four decades, ac-cording to a new study. A3

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EBay said it would spin offPayPal by the end of next

year amid escalating competi-tion in electronic payments. A1n Investors suffered a set-back in their bid to sue theU.S. over treatment of Freddieand Fannie shareholders. C1n The SEC granted Citigroupwaivers on curbs that crimpedsales of hedge-fund invest-ments and other activities. C1nDrug and device firms paidat least $3.5 billion to U.S. doc-tors and teaching hospitals inthe last five months of 2013. B1n EU regulators laid out whythey think tax deals for Applein Ireland and Fiat in Luxem-bourg are illegal support. B3nThe Dow fell 28.32 points to17042.90 but the blue chips,S&P 500 and Nasdaq all postedgains for the quarter. C1, C4n U.S. consumer confidencefell in September to the low-est reading since May. A2n Amazon.com appears tobe close to settling a pricingdispute with Disney. B1n Some small cable firms aredropping TV services as pro-gramming costs rise. B1, B4nMicrosoft offered a previewofWindows 10, the next ver-sion of its operating system. B2n News Corp agreed to buyonline real-estate networkMove for $950 million. B5n ConocoPhillips has begunexporting Alaskan oil, the firstsuch shipment in a decade. B3

Business&Finance

WASHINGTON—The SecretService came under witheringcriticism on Tuesday over the re-cent White House securitybreach and amid new revelationsthat an armed felon rode an ele-vator with President BarackObama days earlier.

Fresh details of the Sept. 19intrusion, aired at a House Over-sight Committee hearing Tues-day, revealed numerous securitylapses that allowed Omar J. Gon-zalez to get farther into theWhite House than previouslyknown after he had scaled afence and darted across thelawn. Mr. Gonzalez knocked overa Secret Service officer and hop-scotched through the first floorof the executive mansion beforefinally being tackled and hand-cuffed outside the Green Room.

He even briefly set foot in theEast Room, where the presidentholds news conferences and en-tertains on formal occasions, justoff a stairway that leads to thefirst family’s residence.

The whirlwind trip throughthe White House was aided bytwo open front doors thatcouldn’t be automatically locked,an alarm system muted in orderto avoid disturbing those in theexecutive mansion and a decisionby Secret Service officers to sub-due the intruder, rather than fireshots or release guard dogs.

On Tuesday, Mr. Gonzalez wasindicted by a federal grand juryon three criminal counts, includ-ing unlawfully entering a re-stricted building while carrying adeadly or dangerous weapon.The charges carry a maximumpenalty of 16 years in prison. Heis scheduled to appear in U.S.District Court on Wednesday.

Mr. Gonzalez’s lawyer de-Pleaseturntothenextpage

By Brent Kendall,Jeffrey Sparshottand Reid J. Epstein

Secret ServiceDraws FireOver LapsesObama Elevator Encounter Is RevealedAs Details Emerge onWhite House Breach

HONG KONG—Pro-democracyrallies, expanding farther acrossHong Kong Wednesday in theearly hours of China’s NationalDay holiday, threatened to esca-late beyond the aims of someorganizers and raise the chanceof confrontation.

Both the government and pro-testers had dug into their posi-tions Tuesday: Protest organiz-ers called on Leung Chun-ying,the city’s chief executive, to re-sign by midnight or face grow-

ing masses on the streets. Mr.Leung urged protesters to returnhome in his first public remarkssince police cracked down onprotesters Sunday.

After the deadline passed,crowds fanned out to a provoca-tive new site—Golden BauhiniaSquare, the setting for celebra-

tions of the 65th anniversary ofthe founding of the People’s Re-public of China—despite thewarnings of some protest lead-ers who feared alienating thepublic or inciting a governmentcrackdown. Other organizers, in-cluding 17-year-old student

PleaseturntopageA10

By Jason Chow,Fiona Law

and Isabella Steger

Hong Kong Rallies ExpandAs Holiday Raises Tensions

Indian Leader Hails Partnership With U.S.

Jonathan

Ernst/Re

uters

How do a ping-pong table, ahead and a ball go together?

If you’re René Wegner, obvi-ously in a new sport.

The concept is head tennis, orHeadis, as dubbed by Mr.Wegner, and in-volves squatting,hands planted onthe table, and us-ing the head towhip, spin andslam the ball backand forth acrossthe net.

The game hasdeveloped a fol-lowing in Mr.Wegner’s nativeGermany—it is now played in 20universities—and is growing inpopularity in other parts of Eu-rope as well, particularly amongsoccer players and skateboard-ers. About 2,000 Headis balls,which are softer than soccerballs, have been sold so far thisyear compared with a total of

1,300 last year, according to Mr.Wegner, who sells them.

The game is a little bit pingpong and a little bit soccer (nohands). In September, a “Head-ness” tournament in Münster at-tracted 100 competitors.

Alex “Lauchgesicht” (LeekFace) Bohn, 21years old, wascrowned championof the event, whichhe prepped for byplaying severalhours every daythe week before.Later in themonth, he alsowon a competitionamong the top 20Headis players.

Mr. Bohn, a teacher in train-ing, played the game for the firsttime about 2-1/2 years ago whileattending a seminar related toteaching. During breaks, theseminar trainers played Headis.

“We said, ‘hell that’s crazy, wecan’t do that,’ ” said Mr. Bohn.

PleaseturntopageA12

BY SHIRLEY S. WANG

This Game Requires PlayersTo Use Their Heads, Only

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No Hands Allowed in a German VersionOf Ping Pong; ‘Leek Face’ Takes the Crown

Headis ball

CLOSER TIES: Prime Minister Narendra Modi, waving in front of the Mahatma Gandhi monument at the IndianEmbassy, vowed to cooperate on key issues after a meeting with President Obama in Washington on Tuesday. A8

Coming competition in payingfor everyday purchases withsmartphones, including an ag-gressive entry from Apple Inc.,pushed online retailer eBay Inc.to reverse course and set free itsPayPal unit.

On Tuesday, eBay said it wouldspin off PayPal to shareholders bythe end of next year, a step ini-tially proposed by activist inves-tor Carl Icahn that it had repeat-edly rejected and which couldspark a round of deal-makingamong potential rivals.

EBay and PayPal both mayprove attractive takeover candi-dates, said analysts. A stand-alone eBay would no longer haveto hand over cash it generates toPayPal, Chief Executive John Do-nahoe said. Mr. Donahoe, 54 yearsold, will step down as CEO whenthe split is complete; he may joinone or both companies’ boards.

Competition in electronic pay-ments has escalated since Mr.

Icahn first proposed the separa-tion in January. That challengedeBay’s plans to bring PayPal tomore brick-and-mortar retail out-lets, where more than 90% of con-sumer purchases are made today.

Apple this month introducesits new in-store payments servicetied to its iPhone 6 models. ApplePay will work at McDonald’s,Macy’s and other retailers, andpromises to put mobile payments

in the hands of tens of millions ofmore customers.

“Everyone is out to eat Pay-Pal’s lunch,” said Jordan McKee, asenior analyst for mobile pay-ments at 451 Research. “Nowmore than ever, PayPal needs toinnovate, be nimble and move

PleaseturntopageA6

By Greg Bensinger,David Benoitand DaisukeWakabayashi

EBay to Split as Apple, OthersPrepare to Challenge PayPal

...but its payment volumes aregrowing fast.

$50 billion

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Sizing the BusinessPayPal generates less revenuethan eBay’s retail business...

The Wall Street JournalSource: the company

Enterprise$0.3B

PayPal$1.9B

Market-place$2.2B

2ND QTR$55B

2ND QTR$5 billion

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Markets ReviewA resurgent dollar is remakingthe investment landscape asFed stimulus ends.Quarterly Report, C1, C7-10

Heard on the Street: EBay couldbecome auction target............ C18

City’s finance role hindersBeijing’s options.......................... A10

Teenage activist emerges asface of protests............................ A11

Health officials diagnosedthe first case of Ebola in theU.S. on Tuesday, bringing a dis-ease that has killed more than3,000 people this year in WestAfrica to the middle of America.

The patient, who officials de-clined to name but referred toas “he,” arrived in Texas fromLiberia 10 days ago to visit fam-ily, developed symptoms of thedisease on Sept. 24 and was ad-mitted to an isolation unit atTexas Health Presbyterian Hos-pital in Dallas four days later,health officials said.

Confirmation of the individ-ual’s illness was made by theU.S. Centers for Disease Controland Prevention and the TexasDepartment of State HealthServices on Tuesday. Officialshave now launched an intensive

medical and public-health effortboth to treat the sick individualand to identify and monitorthose people who he may haveexposed to the disease in thefour days between when hefirst developed symptoms andwhen he was placed into hospi-tal isolation.

The patient isn’t the first tobe treated for Ebola in the U.S.But he is the first to have be-come ill here, raising concernsthat others may get sick, too,and spark an outbreak. Fourother Ebola patients have beentreated for the disease in theU.S. during the past twomonths, but all were evacuatedfrom West Africa and trans-ferred immediately to hospitalisolation units as soon as theyarrived.

Tom Frieden, director of theCDC, said the number of people

PleaseturntopageA14

BY BETSY MCKAYAND ANA CAMPOY

Ebola DiagnosedIn Texas Patient;First U.S. Case

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