2014 11 28 cmyk na 04online.wsj.com/public/resources/documents/pageone112814.pdfeven so,mr. skolnick...
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What’sNews
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World-Widen Europe escalated its waragainst U.S. tech superpowersas France, Germany and theEuropean Parliament backedfresh efforts to rein in thefirms’ growing influence. A1nU.S. and European officialssee a continuing effort byhard-line factions in Iran tosabotage nuclear talks. A8n The Pentagon is preparingto transfer additional detain-ees from the Guantanamo Bayprison in coming weeks. A4n The Obama administrationis set to release energy regula-tions thatwill prompt pushbackfrom industryand lawmakers.A4nHealthCare.gov enrollmentsgot off to a better start thisyear, with about 222,000 newsign-ups in the first week. A3n Legal immigrants are run-ning into fresh problems sign-ing up through the site. A3n Ferguson, Mo., residentscame out on Thanksgiving toclean up debris. Business own-ers are vowing to rebuild. A7nMexico’s president proposeda series of measures to con-front lawlessness, starting withlocal police corruption. A11n Israel said it uncovered anetwork of Hamas militantsin the West Bank with linksto Turkey and Jordan. A9n Justice Ginsburg was re-leased from the hospital afterhaving a heart procedure. A4n A possible Ebola vaccineappears to be safe in early test-ing, NIH researchers said. A6n Died: P.D. James, 94,crime novelist. A10… PhillipHughes, 25, cricket star. D9
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OPEC members rejectedcalls for drastic action tocut oil output, keeping theirproduction ceiling unchanged.Crude prices tumbled. A1n The holiday-shoppingseason will test how aggres-sively Americans are willing tospend and how much momen-tum the U.S. economy has. B1n Sales of new homes inthe U.S. remain sluggish de-spite low interest rates anda healing labor market. A2n China is getting close tolaunching a long-anticipateddeposit-insurance system, amove that would inject greaterrisk into the banking sector. C1nEurozone government-bondyields hit record lows amidgrowing expectations the ECBwill buy sovereign debt. C4n A top EU official surviveda no-confidence vote over hisinvolvement in tax practicesin his native Luxembourg. A10n Twomusic publishers suedcable giant Cox, claiming itis deliberately turning a blindeye to illegal downloading. B1n Honda recalled a batch ofAccord passenger cars in2002 for Takata air bags atrisk of rupturing. B3n The estranged wife of U.K.hedge-fund tycoon Christo-pher Hohn was awarded a$530million divorce payout. C2nAT&T backed off a threat tofreeze the rollout of ultrafastInternet service due to uncer-tainty around net neutrality. B3nU.S. pilots and air-traffic con-trollers are increasingly seeingdrones flying near aircraft. B4
Business&Finance
VIENNA—OPEC members re-jected calls for drastic action tocut their oil output, keeping theirproduction ceiling unchanged andsuggesting the cartel is bracingfor lower prices longer term.
The decision on Thursday sent
crude prices into a tailspin andspilled into currency and Euro-pean stock markets. If Thursday’smarket rout proves lasting, it willprovide more relief to consumersin gasoline-guzzling countrieslike the U.S. But it is hammeringthe finances of big oil producers,from Russia to Venezuela, andbiting into profit at oil companiesbig and small.
The 12-member Organizationof Petroleum Exporting Coun-tries, who collectively pump morethan one-third of the world’s oil,agreed at their meeting in Viennato stick to the group’s currenttarget of producing 30 millionbarrels a day.
Since the cartel is currentlypumping more than its ceiling,the decision—backed by a com-mitment from OPEC members tocomply with it—implies a cut ofaround 300,000 barrels a day,based on OPEC’s own figures.That would put only a relativelysmall dent in global oil supplyeven if implemented, and thegroup has exceeded its ceilingsmost quarters since late 2011.
The decision sent oil pricestumbling, with the West Texas In-termediate benchmark falling be-
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By Benoît Faucon,Summer Saidand Sarah Kent
Oil PricesPlungeAs OPECStays Put
Europe escalated its waragainst U.S. technology super-powers as the Continent’s twolargest economies and the Euro-pean Parliament on Thursdaybacked fresh efforts to rein inthe growing influence of compa-nies such as Apple Inc., Face-book Inc. and Google Inc.
France and Germany askedthe European Union to look intonew competition rules and other
regulations that better target thebusiness practices of large tech-nology firms. At the same time,the European Parliament over-whelmingly approved a resolu-tion that calls for a possiblebreakup of Google.
The moves came a day afterEurope’s privacy regulatorsasked Google and others to ex-tend the EU’s new “right to beforgotten” to their websites out-side Europe and follows a pushby U.K. lawmakers to have so-
cial-media firms do more tocomb their services for extrem-ist content.
Apple, Facebook and Googledeclined to comment.
European authorities have in-creasingly chafed at the domi-nance of U.S. Internet firms intheir markets. These Silicon Val-ley companies have huge reve-nue and global reach, but offi-cials say they pay relatively littlein corporate income taxes andslip beyond the reach of some
national regulations.“Internet companies are dis-
rupting the hierarchy of gover-nance,” said James Waterworth,head of the European office forComputer & Communications In-dustry Association, a U.S.-basedtrade group. “National govern-ments can’t keep up with themin the same way as they have,and they are scrambling to reas-
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BY SAM SCHECHNER
EuropeTargetsU.S.WebFirmsFrance, Germany Want to Expand Regulation of Google, Apple, Facebook, Amazon
Thanksgiving Cheer for Troops Far From Home
Shah
Marai/A
genceFrance-Presse/Getty
Images
Democratic Rifts Bubble UpIn Wake of Election Defeat
MADRID—Consider Juan PedroMellinas an accidental entrepre-neur. He started Eternalia, a com-pany that tends to grave sites, in2011 after losing a white-collarmarketing job. Eternalia now hasfranchises in six cities. But otherlaid-off Spaniards are muscling inon his turf, and Mr. Mellinasdoesn’t yet have enough businessto pay staff to do the cleaning athis local cemetery.
César Martín started a digitaleducation venture, Sapeando, afterhe lost his photo-editing job. Thesite was a hit, with one how-tovideo on hip-hop dancing captur-ing 2.5 million views. Still, hecouldn’t find sufficient advertisersor a bank lender. So he is throw-ing in the towel.
Gerard Vidal formed a data-en-cryption firm, Enigmedia, when hecouldn’t find an employer looking
BY MATT MOFFETT
RISKY BUSINESS
New EntrepreneursFind Pain in Spain
Long-muted tensions withinthe Democratic Party over policyand strategy are beginning tosurface publicly, a sign of leaderslooking beyond President BarackObama’s tenure in the aftermathof the party’s midterm electiondefeat.
A prominent example camethis week, when Sen. ChuckSchumer (D., N.Y.), a member ofthe Senate leadership, gave arare public rebuke to Mr. Obamaover the centerpiece of his presi-dency: the health-care overhaulof 2010. Mr. Schumer said theparty should have focused onhelping a broader swath of the
middle class than the uninsured,whom he called “a small percent-age of the electorate.’’
On the same day, the WhiteHouse surprised Democraticleaders in the Senate by threat-ening to veto a tax package ne-gotiated by both parties. TheWhite House said the deal wouldhelp “well-connected corpora-tions while neglecting workingfamilies.’’
The twin developments wereamong fissures within the partythat, at their broadest level,show Democrats at odds overwhat economic message to pres-ent to voters ahead of the 2016presidential race. Worried thatthey lacked a compelling posi-tion in the midterms, Democratsare split over whether to ad-vance a centrist message or a
more populist economic argu-ment that casts everyday fami-lies as victims of overly powerfulcorporations and benighted gov-ernment policies.
“You’re going to get a fightwithin the Democratic Party,”said Rep. Jerry Nadler (D., N.Y.),as the progressive wing of theparty splits from centrists, whofear that liberal economic policyproposals are unpalatable tomost voters. “There is a substan-tial disagreement coming up.”
Democratic infighting haslargely been out of public viewfor the last half-dozen years.Since Mr. Obama took office, Re-publicans have been the onesdealing with rifts. A conservativeTea Party wing clashed withmainstream Republicans in pri-
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By Peter Nicholas,Siobhan Hughesand Byron Tau
for a Ph.D. in physics. But even aphysicist was perplexed by the pa-perwork involved in starting acompany in Spain, and the launchwas delayed months by a processhe calls “illogical, inefficient andtotally frustrating.”
For many in the eurozone,where government budget cutsand corporate layoffs have leftmore than 18 million people out ofwork, the only way to find work isto create their own jobs. But theseinexperienced entrepreneurs areflying into harsh headwinds.
Scarce capital, dense bureau-cracy, a culture deeply averse torisk and a cratered consumer mar-ket all suppress startups in Eu-rope. The Global EntrepreneurshipMonitor, a survey of startup activ-ity, found the percentage of theadult population involved in earlystage entrepreneurial activity lastyear was just 5% in Germany, 4.6%
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All Eyes on America’s Shoppers
Sources: Commerce Department The Wall Street Journal
Inflation-adjusted U.S. GDP, quarterly change at aseasonally adjusted, annualized rate
5.0
–7.5
–5.0
–2.5
0.0
2.5
%
’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14
CC Overall GDP change
C Consumer spending’scontribution to GDP change
HOLIDAY IN AFGHANISTAN: Military members celebrate Thanksgiving Day at the headquarters of the International Security Assistance Force in Kabul.
STIMULUS SPENDING: Consumer spending in coming weeks will helpdetermine the year-end momentum of the U.S. economy, a crucialvariable for the world economy as Europe sputters and China slows. B1
Edilberto Soto was nabbed atNew York’s John F. Kennedy In-ternational Airport last monthwith a five-kilo haul from Peru.
The contraband: A rainbow-colored assortment of potatoesfrom the Andean highlands, nearwhere the tuber was first culti-vated millennia ago.
“They took them away fromus,” says Mr. Soto, a potatogrower who had planned onshowcasing the spuds at a foodshow in Brooklyn.
By “they” Mr. Soto was refer-ring to America’s line of defenseagainst the illicit entry of foodproducts: a team of agriculturalspecialists and customs officerswho use a floppy-eared beagle—wearing a dark blue vest embla-zoned with the words “ProtectingAmerican Agriculture”—to sniffout contraband, and a massive
industrial grinder to destroy it.One agricultural specialist,
Fred Skolnick, a deputy chief,says he sympathizes with offend-ers for their motives. “People arepassionate about food,” he says.“You try taking a salami awayfrom an Italian.”
The illegal foodstuffs are con-fiscated and passengers could belevied a $300 fine for the infrac-tion, but Mr. Skolnick says thatrarely happens. Instead, he says,
the JFK team gives suspectedperps 10 chances to amend theircustoms declaration to admitthey are carrying agriculturalproducts. (Agents keep trying:“Are you sure you don’t haveanything in your bag?…Looks likeyou might have something, areyou sure?”)
Even so, Mr. Skolnick has de-veloped a keen eye for spottingpotential smugglers. “Old womenin wheelchairs—that’s my firststop,” he says.
In his more than three de-cades on the job, he says, he hasuncovered “whole cow heads,whole sheep heads” and “womenwearing salami under their coat.”
The authorities’ aim is simple:protect U.S. agriculture from dis-eases.
Potatoes are notorious pest-carriers, as their thin skin andthe dirt that clings to it can carry
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BY LESLIE JOSEPHS
Peruvian Potatoes Pack a Peck of Problemsi i i
Jasper the Beagle Sniffs Out Spud Smugglers; ‘The Star of the Dish’
Peruvian potatoes
Heard on the Street.................... C8 U.K. presses Internet firms..... B4
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