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November 12, 2014 nº 1,567 - Vol. 12

"Success is how high you bounce when you hit the bottom.

General George S. Patton

Read Migalhas LatinoAmérica in Spanish every Tuesday and Thursday. Visit the website at www.migalhas.com/latinoamerica

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• Top News

EU court backs migrant benefit curbs

The European Court of Justice has said member states can deny certain payments to unemployed EU citizens who move to that country just to claim benefits. The court said Germany was right to deny an unemployed Romanian woman a particular allowance because she showed no sign of seeking work. The ruling sets a precedent for the rest of the EU. Politicians in several member states have promised to crack down on what they call "benefit tourism". British PM Cameron welcomed the ruling, describing it as "simple common sense". The ruling only relates to non-contributory benefits, where the claimant does not make a contribution through the tax system. The court said the defendant did not have sufficient financial resources to claim residency in Germany after an initial three months, so she could not claim that the rules excluding her from certain benefits were discriminatory. The EU court said there was no discrimination involved in denying a citizen from another EU country access to a non-contributory benefit which is available to German citizens. The court pointed to safeguards in EU rules which it said aim to "prevent economically inactive Union citizens from using the host member state's welfare system to fund their means of subsistence".

Obama urges FCC to adopt net neutrality rules

Obama on Monday said that he strongly supports the concept of net neutrality, the idea that providers should treat all Internet data equally and not give preferential treatment. Specifically, net neutrality is aimed at curbing large companies who could use their power to enter into exclusive agreements with Internet service providers to ensure that their data is transmitted at faster speeds or during periods of high demand. Obama stated: "Net neutrality" has been built into the fabric of the Internet since its creation—but it is also a principle that we cannot take for granted. We cannot allow Internet service providers (ISPs) to restrict the best access or to pick winners and losers in the online marketplace for services and ideas. That is why today, I am asking the to answer the call of almost 4 million public comments, and implement the strongest possible rules to protect net neutrality."

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• Crumbs

1 - U.S. and China Strike Trade Deal to Cut Tech Tariffs - click here.

2 - Alibaba Goes Global, Singles Day Sales Top $5.9 Billion - click here.

3 - McDonald's Recalls 2.5 Million 'Hello Kitty' Happy Meal Toys - click here.

4 - Marijuana Arrests Down Across US, But Advocates Want More Progress - click here.

5 - Portugal Telecom shares spike on bid - click here.

6 - New rules proposed to put an end 'too big to fail' banks - click here.

7- Asia-Pacific Nations Agree To Go After Corruption - click here.

8 - First illegal immigrant with law license makes a go of his profession - click here.

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• MiMIC Journal

Obama and Xi in Beijing summit

The US and Chinese leaders hold more talks in Beijing, amid rumbling unease over trade rivalries and regional tensions. The United States has expressed concern about what it sees as China's provocative stance in the South China Sea and accuses Beijing of continuing cyber attacks. China, for its part, is suspicious that America's "pivot to Asia" is an attempt to counter the country's rise as an Asian superpower.

Australia's free trade deal with China 'could be a disaster'

A senior member of Australia's Liberal Party says a looming free trade deal with China could be a disaster. Senator Bill Heffernan said China's refusal to float its currency could give it a big advantage over Australia. The two countries are expected to announce a free trade agreement (FTA) by next Monday when Chinese President Xi Jinping visits Australia. It would be the third FTA signed by Australia this year, following similar agreements with South Korea and Japan. Heffernan said the Australian government should have learnt from its past experience that not all trade deals benefitted both signatories.

Chinese shoppers set record for 'singles day' shopping spree

A day meant to celebrate being single has turned in to the world's largest shopping event. But it's unlikely to catch on in the US The world's largest supplier of goods, Alibaba. has turned an obscure student holiday into the country's biggest shopping event. Chinese shoppers bought more than $9 billion dollars in goods for themselves today. To put that in perspective, that's almost three times what Americans spent last year on Black Friday and Cyber Monday.

Xinjiang court sentences 22 people to jail for religious activities

The People's Court of Kashgar in China's western region of Xinjiang sentenced 22 people to prison terms for illegal religious activities and other crimes. The Xinhua News Agency stated it is the latest sign of unease over Muslim extremism in the region.

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• Historia verdadera

Exportaciones

El gobierno de Ecuador le apuesta a la economía popular y solidaria para incrementar el volúmen y la diversidad de las exportaciones a Estados Unidos, para lo cual varias entidades firmaron un convenio que busca facilitar el acceso al mercado estadounidense. El convenio comprende la articulación de estrategias dirigidas a la capacitación y la promoción de los actores y productos de la economía popular. Y contempla la posibilidad de que estudiantes estadounidenses de maestrías en negocios realicen pasantías en empresas de la economía popular y solidaria de Ecuador para el asesoramiento técnico y comercial de los productores.

Shell

El gigante petrolero Royal Dutch Shell planea participar en la Ronda Uno de licitaciones de áreas en exploración y campos en producción de hidrocarburos que México tiene en marcha tras concretar la mayor reforma energética en décadas. Marvin Odum, director para las Américas de Shell, precisó que los proyectos en aguas profundas en el Golfo de México, en los que la petrolera estatal mexicana Pemex buscará socios, resultan los más atractivos.

Minería

La minera estatal chilena Codelco, la mayor productora de cobre del mundo, ofreció una prima rebajada de 133 dólares por tonelada para los envíos del metal a China en el 2015. La propuesta es un 3,6 % más baja respecto de los 138 dólares por tonelada aplicada a los envíos a Shanghái en el 2014, lo que es visto como una referencia de Codelco para China. La prima incluye cobertura y transporte.

• Brief News

Regulators said poised to levy first fines in FX probe

US, UK and Swiss authorities are preparing to levy the first penalties over foreign-exchange manipulation against at least six banks today. Barclays Plc, Citigroup Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Royal Bank of Scotland Group Plc and UBS AG will be fined between 225 million pounds ($357 million) and 250 million pounds each by the FCA, most likely for failings in their systems and controls. Investigations have been under way on three continents for about 18 months over allegations dealers at the world's biggest banks traded ahead of clients and colluded to rig benchmarks used by pension funds and money managers to determine what they pay for foreign currencies. The six companies have set aside about $5.3 billion in recent weeks for legal matters, including the currency investigations.

EU politicians vote to allow GMO bans

European Union politicians on Tuesday approved a plan allowing nations to ban genetically modified organisms (GMOs) on their soil. The plan, a compromise reached in June, gives national governments the final say in deciding on the use of EU-approved GMOs. Parliament's Committee on Environment, Public Health and Food Safety approved the new rule by a vote of 53-11. The committee chose to drop a provision allowing GMO companies to lobby nations for approval. The committee-ratified plan will now be discussed by member states then sent back to the EU Parliament for final approval.

ObamaCare architect blames 'stupidity of American voter' for healthcare law's approval

One of the key architects of the Affordable Care Act has come under fire for suggesting that "the stupidity of the American voter" allowed the federal healthcare law to pass. MIT Professor Jonathan Gruber helped design Massachusetts' healthcare law, which inspired the president's signature healthcare reform legislation, known as ObamaCare. In 2013, Gruber spoke the Annual Health Economics Conference, at which he claimed that a deliberate lack of transparency helped Congress approve ObamaCare. "This bill was written in a tortured way to make sure Congressional Budget Office did not score the mandate as taxes," Gruber said. "If CBO scored the individual mandate as taxes, the bill dies." He went on to suggest that lawmakers and voters did not understand the law or how financing worked, which helped it get approval. Gruber said he wished "we could make it all transparent, but I'd rather have this law than not."

Russia to build Iran atomic reactors

Russia agrees to build up to eight nuclear reactors in Iran, as a deadline approaches for agreement in talks on curbing Iran's nuclear program. The deal agreed by Russia and Iran envisages the construction of two reactors, with scope for a further six. World powers including Russia have been pressurizing Iran to curb its activity amid fears it wants to build a bomb. Diplomats are due to meet for a final round of talks next week. It is unclear what effect the Russian deal will have.

Argentina raids banks and financial houses

Tax officials have raided more than 70 financial organizations across Argentina, in what they say is an operation targeting money-laundering. Agents targeted banks, currency exchange shops and other institutions in Buenos Aires and various provinces. Officials accused them of tax avoidance and of facilitating capital flight out of the country. Earlier this month, Argentina temporarily suspended the operations of Procter and Gamble, alleging tax fraud. Argentina has been controlling access to foreign currency to try to maintain its falling central bank reserves.

HRW calls for strict international law to end incendiary weapon use in Ukraine and Syria

Human Rights Watch and Harvard Law School's International Human Rights Clinic called Tuesday for a strict international law to end the use of incendiary weapons. The report was published in response to evidence of repeated incendiary weapon use in Ukraine and Syria.

Pennsylvania lawmakers sue over firearms law

Five Pennsylvania state legislators and the mayors of two cities filed a lawsuit in the Commonwealth Court of Pennsylvania on Monday asking it to strike down a state law passed last month allowing advocacy groups to sue municipalities over local gun laws. The law, commonly known as Act 192, includes language granting the right to sue municipalities. The bill also purports to bar courts from employing ordinary notions of standing and provides plaintiffs the right to collect attorneys fees and other expenses against a county, municipality or township that in good faith defends its law. The complaint alleges that the process of passing the law was flawed, as it was combined with an uncontroversial bill that increases penalties for theft of certain metals.

Media companies escalate fight with FCC over disclosure of tv contracts

Media companies are urging a federal appeals court in Washington, D.C., to stop the Federal Communications Commission from forcing them to disclose details of TV contracts in connection with two big pending merger reviews. The request for an emergency stay — filed Monday with the D.C. Circuit Court of Appeals — came after the agency upheld its position that the contracts should be available for third parties to look at during its review of Comcast Corp.'s proposed acquisition of Time Warner Cable Inc. and AT&T's pending purchase of DirecTV. TV channel-owners including Walt Disney Co., CBS Corp, Viacom Inc., 21st Century Fox, Time Warner Inc., Scripps Networks Interactive and Univision Communications Inc. want the court to vacate the order, intensifying a weeks-long battle over the issue.

Lawyer is reprimanded in an email controversy

The nation's leading patent court has ordered a "public reprimand" of a prominent patent lawyer in a coda to a bizarre saga that earlier this year led the court's ranking judge to give up his post. In an order last week, the 11 active judges of the US Court of Appeals for the Federal Circuit reprimanded Edward Reines of Weil, Gotshal & Manges LLP for attempting to solicit clients with an email sent to him in March by Randall Rader, then the chief judge of the court. According to the order, shortly after Reines argued two patent cases earlier this year at the Federal Circuit, Rader let him know by email that other judges thought he had done well. With Rader's blessing, Reines shared the email with others partly, according to the order, to try to drum up business. In May, news of the email led to Rader resigning his position as chief judge. Weeks later, Rader resigned from the bench.

CNN to pull plug on broadcasting in Russia

Russia’s assault on foreign “propaganda” has made new waves, after CNN said it would stop broadcasting in the country and a Kremlin-backed news service outlined plans for global expansion. CNN said its English-language news channel would not be available after the end of the year “in light of recent changes in Russian media legislation”. Russia has banned advertising on cable and satellite channels, while also preventing foreign companies from owning more than 20 per cent of media outlets from 2016. The move came as Russia launched an umbrella brand for its state television, radio and online news, including the Ria Novosti news agency and Voice of Russia radio station. The company, Sputnik, will launch online radio services in 30 languages next year, and compete for influence with the likes of CNN, the BBC and Qatar’s Al Jazeera.

MEPs call for EU tax haven probe

MEPs have called for an investigation into tax evasion in the EU, threatening greater scrutiny of the new European Commission president, Jean-Claude Juncker, and his long tenure as Luxembourg’s prime minister. During a committee meeting on Tuesday, Michael Theurer, a German Alde MEP, said: “In view of the recently published Luxembourg leaks, we have the duty to investigate the legality and the legitimacy of tax avoidance. If a co-operation between governments and big enterprises leads to tax avoidance, this has to be addressed in a broader context which goes beyond just Luxembourg.”