Euro factory output pain eases









Markit’s senior economist Rob Dobson: “There’s some sign of light at the end of the tunnel”



The decline in the eurozone’s manufacturing sector has eased, a closely watched survey indicates, in a rare spot of good news for the region.


Markit’s eurozone manufacturing Purchasing Managers’ Index rose to 46.3 in December from 46.2 in November. A reading below 50 indicates contraction.


The research firm said the rate of decline in manufacturing “showed signs of moderating”.


But the service sector dropped to its weakest levels since July.


Including services and manufacturing, the eurozone PMI composite output index was at 47.3, up from 46.5 in November.


Return to growth?


“The eurozone downturn showed further signs of easing in December, adding to hopes that the outlook for next year is brightening,” said Chris Williamson, chief economist at Markit.


“A return to growth is looking like an increasing possibility in the first half of next year, barring any surprises, if the recent improvements in the survey data can be sustained. The turnaround is being led by Germany.”


Total output from Germany rose for the first time in eight months “though the increase was only very modest as an upturn in the service sector was offset by a faster decline in manufacturing production”, the survey said.


Output fell for the 10th month in a row in France. Earlier on Friday, Fitch kept the French government’s top AAA credit rating, making it the only major ratings agency left to say the country deserves to be among the world’s most creditworthy borrowers.


In the eurozone, only Germany still has an AAA rating from all three major ratings agencies.


Markit said that eurozone confidence remained lower than at any time since before the 2008-09 financial crisis.


Separately, a survey showed China’s huge manufacturing sector expanded in December at its fastest pace in 14 months as new orders and employment rose,


The HSBC PMI for December rose to 50.9, the highest level since October 2011. It was the fifth straight month of gains.


BBC News – Business


Read More..

NKorea rocket launch shows young leader as gambler






PYONGYANG, North Korea (AP) — A triumphant North Korea staged a mass rally of soldiers and civilians Friday to glorify the country’s young ruler, who took a big gamble this week in sending a satellite into orbit in defiance of international warnings.


Wednesday’s rocket launch came just eight months after a similar attempt ended in an embarrassing public failure, and just under a year after Kim Jong Un inherited power following his father’s death.






The surprising success of the launch may have earned Kim global condemnation, but at home the gamble paid off, at least in the short term. To his people, it made the 20-something Kim appear powerful, capable and determined in the face of foreign adversaries.


Tens of thousands of North Koreans, packed into snowy Kim Il Sung Square, clenched their fists in a unified show of resolve as a military band tooted horns and pounded on drums.


Huge red banners positioned in the square called on North Koreans to defend Kim Jong Un with their lives. They also paid homage to Kim Jong Un’s father, Kim Jong Il, and his grandfather, North Korean founder Kim Il Sung.


Pyongyang says the rocket put a crop and weather monitoring satellite into orbit. Much of the rest of the world sees it as a thinly disguised test of banned long-range missile technology. It could bring a fresh round of U.N. sanctions that would increase his country’s international isolation. At the same time, the success of the launch could strengthen North Korea’s military, the only entity that poses a potential threat to Kim’s rule.


The launch’s success, 14 years after North Korea’s first attempt, shows more than a little of the gambling spirit in the third Kim to rule North Korea since it became a country in 1948.


“North Korean officials will long be touting Kim Jong Un as a gutsy leader” who commanded the rocket launch despite being new to the job and young, said Kim Byung-ro, a North Korea specialist at Seoul National University in South Korea.


The propaganda machinery churned into action early Friday, with state media detailing how Kim Jong Un issued the order to fire off the rocket just days after scientists fretted over technical issues, ignoring the chorus of warnings from Washington to Moscow against a move likely to invite more sanctions.


Top officials followed Kim in shrugging off international condemnation.


Workers’ Party Secretary Kim Ki Nam told the crowd, bundled up against a winter chill in the heart of the capital, that “hostile forces” had dubbed the launch a missile test. He rejected the claim and called on North Koreans to stand their ground against the “cunning” critics.


North Korea called the satellite a gift to Kim Jong Il, who is said to have set the lofty goal of getting a satellite into space and then tapped his son to see it into fruition. The satellite, which North Korean scientists say is designed to send back data about crops and weather, was named Kwangmyongsong, or “Lode Star” — the nickname legendarily given to the elder Kim at birth.


Kim Jong Il died on Dec. 17, 2011, so to North Koreans, the successful launch is a tribute. State TV have been replaying video of the launch to “Song of Gen. Kim Jong Il.”


But it is the son who will bask in the glory, and face the international censure that may follow.


Even while he was being groomed to succeed his father, Kim Jong Un had been portrayed as championing science and technology as a way to lift North Korea out of decades of economic hardship.


“It makes me happy that our satellite is flying in space,” Pyongyang citizen Jong Sun Hui said as Friday’s ceremony came to a close and tens of thousands rushed into the streets, many linking arms as they went.


“The satellite launch demonstrated our strong power and the might of our science and technology once again,” she told The Associated Press. “And it also clearly testifies that a thriving nation is in our near future.”


Aside from winning him support from the people, the success of the launch helps his image as he works to consolidate power over a government crammed with elderly, old-school lieutenants of his father and grandfather, foreign analysts said.


Experts say that what is unclear, however, is whether Kim will continue to smoothly solidify power, steering clear of friction with the powerful military while dealing with the strong possibility of more crushing sanctions. The United Nations says North Korea already has a serious hunger problem.


“Certainly in the short run, this is an enormous boost to his prestige,” according to Marcus Noland, a North Korea analyst at the Peterson Institute for International Economics in Washington.


Noland, however, also mentioned the “Machiavellian argument” that this could cause future problems for Kim by significantly boosting the power of the military — “the only real threat to his rule.”


Successfully firing a rocket was so politically crucial for Kim at the onset of his rule that he allowed an April launch to go through even though it resulted in the collapse of a nascent food-aid-for-nuclear-freeze deal with the United States, said North Korea analyst Kim Yeon-su of Korea National Defense University in Seoul.


The launch success consolidates his image as heir to his father’s legacy. But it could end up deepening North Korea’s political and economic isolation, he said.


On Friday, the section at the rally reserved for foreign diplomats was noticeably sparse. U.N. officials and some European envoys stayed away from the celebration, as they did in April after the last launch.


Despite the success, experts say North Korea is years from even having a shot at developing reliable missiles that could bombard the American mainland and other distant targets.


North Korea will need larger and more dependable missiles, and more advanced nuclear weapons, to threaten U.S. shores, though it already poses a shorter-range missile threat to its neighbors.


The next big question is how the outside world will punish Pyongyang — and try to steer North Korea from what could come next: a nuclear test. In 2009, the North conducted an atomic explosion just weeks after a rocket launch.


Scott Snyder, a Korea specialist for the Council on Foreign Relations, wrote recently that North Korea‘s nuclear ambitions should inspire the U.S., China, South Korea and Japan to put aside their issues and focus on dealing with Pyongyang.


If there is a common threat that should galvanize regional cooperation, “it most certainly should be the prospect of a 30-year-old leader of a terrorized population with his finger on a nuclear trigger,” Snyder said.


____


Jon Chol Jin in Pyongyang, and Foster Klug and Sam Kim in Seoul, South Korea, contributed to this report. Follow Jean H. Lee on Twitter: (at)newsjean.


Asia News Headlines – Yahoo! News


Read More..

U.S. drops China’s Taobao website from “notorious” list






WASHINGTON (Reuters) – The United States on Thursday dropped a website owned by China‘s largest e-commerce company, Alibaba Group, from its annual list of the world’s most “notorious markets” for sales of pirated and counterfeit goods.


Taobao Marketplace, an online shopping site similar to eBay and Amazon that brings together buyers and sellers, “has been removed from the 2012 List because it has undertaken notable efforts over the past year to work with rightholders directly or through their industry associations to clean up its site,” the U.S. Trade Representative‘s office said in the report.






The move came just before an annual high-level U.S.-China trade meeting next week in Washington.


Taobao Marketplace is China’s largest consumer-oriented e-commerce platform, with estimated market share of more than 70 percent. The website has nearly 500 million registered users, with more than 800 million product listings at any given time. Most of the users are in China, Hong Kong, Taiwan and Macao.


The U.S. Chamber of Commerce has called Taobao “one of the single largest online sources of counterfeits.”


The Chinese Commerce Ministry strongly objected to Taobao’s inclusion on the USTR’s 2011 notorious markets list. A ministry spokesman said it did not appear to be based on any “conclusive evidence or detailed analysis.


Alibaba hired former USTR General Counsel James Mendenhall to help persuade USTR to remove Taobao from its list.


The Chinese company’s bid to shed its “notorious” label won support from the Motion Picture Association of America, a former critic of Taobao, which praised its effort to reduce the availability of counterfeit goods on its website.


But U.S. software, clothing and shoe manufacturers urged USTR to keep Taobao on the list.


To stay off in the future, USTR urged “Taobao to further streamline procedures … for taking down listings of counterfeit and pirated goods and to continue its efforts to work with and achieve a satisfactory outcome with U.S. rights holders and industry associations.”


USTR said it also removed Chinese website Sogou from the notorious markets list, based on reports that it has made “notable efforts to work with rights holders to address the availability of infringing content on its site.”


U.S. concerns about widespread piracy and counterfeiting of American goods in China are expected to be high on the agenda at next week’s meeting in Washington of the U.S.-China Joint Commission on Commerce and Trade.


The 2012 notorious markets list includes Xunlei, which USTR described as a Chinese-based site that facilitates the downloading and distribution of pirated movies.


Baixe de Tudo, a website hosted in Sweden but targeted at the Brazilian market, was also put on the list along with the Chinese website Gougou.


Warez-bb, which USTR described as a hub for pre-release music, software and video games, was also included. The forum site is registered in Sweden but hosted by a Russian Internet service provider, USTR said.


The full report can be found on USTR’s website at: http://www.ustr.gov/sites/default/files/121312%20Notorious%20Markets%20List.pdf


(Reporting by Doug Palmer; Editing by Will Dunham, Dan Grebler and Jim Marshall)


Internet News Headlines – Yahoo! News


Read More..

Actelion says FDA accepts lung drug for review






ZURICH (Reuters) – Biotechnology company Actelion said on Friday the U.S. health regulator accepted a submission on the company’s macitentan drug, meant to treat patients with a potentially life-threatening lung condition.


Actelion submitted the application for its drug for the treatment of pulmonary arterial hypertension, a condition characterized by abnormally high blood pressure in the arteries of the lungs, in October.






The Swiss company is banking on macitentan to replace Tracleer, which also treats pulmonary arterial hypertension (PAH) and currently accounts for around 90 percent of group sales, but goes off patent from 2015 and faces growing competition from U.S. rival Gilead’s Letairis.


The review period of the U.S. regulator, the Food and Drug Administration, is expected to last 12 months, Actelion said.


(Reporting by Martin de Sa’Pinto; Editing by Muralikumar Anantharaman)


Health News Headlines – Yahoo! News


Read More..

HMRC warns 300,000 late filers







About 300,000 people who have failed to send in their tax returns for 2010-11 could soon see their goods seized.






The taxman is sending warning letters to those who have now run up late-filing penalties of £1,300 for that year, under self-assessment.


They can still pay, or ask for the penalty to be taken off their income in 2013-14 if they are in the PAYE system.


The letters are part of a continuing campaign against a persistent minority of non-filers.


A spokesman for HM Revenue & Customs (HMRC) said the defaulters could still pay their fines, and submit the late tax returns.


“These non-filers have ignored numerous communications from HMRC, dating back to April 2011, including flyers, reminder letters, penalty notices and warning letters,” he said.


“A customer can still phone us if they think they should not be in self-assessment, and will be taken through a number of questions to indicate if they should be in self-assessment or not.


“If they shouldn’t have been in it for 2010-11, penalties will then be waived,” he added.


About 7,000 higher-rate taxpayers who had missed tax returns from earlier years were sent similar warning letters in October.


BBC News – Business


Read More..

Cuban lawmakers meet to consider economy, budget






HAVANA (AP) — Cuban lawmakers are holding the second of their twice-annual sessions with a year-end report expected on the state of the country’s economy.


Legislators are also to approve next year’s budget.






Cuban leaders have sometimes used the parliamentary gatherings to make important announcements or policy statements.


Observers will be watching for word on the progress of President Raul Castro‘s economic reform plan and efforts to promote younger leaders.


The unicameral parliament will reconvene in February with a new membership following elections. It is then expected to name Castro to another five-year term.


State-run media said Castro presided over Thursday’s session.


It was not open to international journalists.


Latin America News Headlines – Yahoo! News


Read More..

U.S. federal agency to test RIM’s BlackBerry 10






TORONTO (Reuters) – Research In Motion said a U.S. federal agency, which recently outlined plans to move away from BlackBerry in favor of Apple Inc’s iPhone, is now set to begin testing RIM‘s new BlackBerry 10 platform and devices.


The U.S. Immigration and Customs Enforcement agency (ICE), will early next year begin a pilot program on RIM’s new line of BlackBerry 10 smartphones and BlackBerry Enterprise Service 10 (BES 10), which allows corporations and government users to run the new devices on their networks, a RIM spokeswoman said late on Wednesday.






The news, which comes just as shares of the embattled company rallied to their highest close in seven months, signals that RIM’s BlackBerry 10 platform is gaining some traction ahead of its official launch next month.


RIM, a one-time pioneer in the smartphone industry, has lost market share in recent years to the iPhone and devices powered by Google Inc’s market-leading Android operating system, even among the business audience who once used BlackBerry devices exclusively.


Waterloo, Ontario-based RIM is now seeking to persuade both corporations and government users to stick with its smartphones, which have long been valued for their strong security features. It promises that its new line of devices, which will be powered by the BlackBerry 10 operating system, will be both smoother and faster than previous BlackBerry phones.


RIM is betting that these new devices – to be launched on January 30 – will revive its fortunes. But that may well depend to a large extent on the response from enterprise customers, many of whom have recently begun to flee to rival platforms.


ICE is one such example. The agency, in October, announced plans to end a long relationship with RIM, stating that its now aging line-up of BlackBerry devices could “no longer meet the mobile technology needs of the agency.


At the time, ICE outlined intentions to buy iPhones for more than 17,600 employees. It is not immediately clear whether the agency plans to revisit this plan or whether its intends to use RIM’s new BES 10 platform to manage both iPhones and BlackBerry devices. A spokeswoman for the agency was not immediately able to comment on the pilot program or the agency’s plans.


SHARES SURGE


The news comes soon after yet another rally in RIM shares on Wednesday, after Eric Jackson – a long-time bear on RIM’s stock – penned an opinion piece on his now bullish stance on the company.


Jackson, the founder of Ironfire Capital, in his piece, said parallels drawn by some analysts between RIM and its now-defunct rival Palm are flawed, as Palm never had the kind of installed subscriber base that RIM enjoys.


In his article, published on Wednesday on the TheStreet.com, Jackson contends that RIM’s new BlackBerry 10 devices have much better odds of success than Palm’s Pre device, which failed to capture a following despite positive reviews on the device and its operating system.


Jackson, who was short RIM’s stock for an extended period, argues that the positive sentiment building in RIM’s stock ahead of the launch of the make-or-break line of devices is unlikely to dissipate in a hurry, as a large portion of RIM’s 80 million subscribers are likely to upgrade to BB10 when the new devices are launched. Jackson said he now has a long position in RIM.


Shares in the company rose 5.6 percent to close at $ 13.31 on the Nasdaq – their highest close since May 1. Its Toronto-listed shares rose 5.8 percent to close at C$ 13.14.


The stock has more than doubled in price since September 24, when the shares were trading slightly above the $ 6 level in both New York and Toronto. The wave of optimism around BB10 has in recent weeks been bolstered by a number of analyst upgrades on the stock.


(Editing by Dan Grebler and Muralikumar Anantharaman)


Tech News Headlines – Yahoo! News


Read More..

McAfee arrives in U.S. from Guatemala






MIAMI (Reuters) – Computer software pioneer John McAfee, who is wanted for questioning in Belize over the murder of a fellow American, arrived in Miami on Wednesday evening after he was deported by Guatemala, according to fellow passengers on an American Airlines flight.


After landing, McAfee, 67, was escorted from the plane by airport security officers, passengers said. Shortly afterward, he tweeted, “I am in South Beach,” referring to the popular tourist area on Miami Beach.






“Some people felt uncomfortable that he was on our flight. … We all knew the story,” said Maria Claridge, 36, a South Florida photographer who was on the Silicon Valley entrepreneur’s flight to Miami.


McAfee, who was seated in the coach section and had a whole row to himself, was wearing a suit and was “very calm” during the flight, she added.


“He looked very tired, he looked like a man who hadn’t slept in days. I’d say he even looked depressed,” said another passenger, Roberto Gilbert, a Guatemalan who lives in Miami.


McAfee had been held for a week in Guatemala, where he surfaced after evading police in Belize for nearly a month following the killing of American Gregory Faull, his neighbor on the Caribbean island of Ambergris Caye.


Police in Belize want to quiz McAfee as a “person of interest” in Faull’s death, although the technology guru’s lawyers blocked an attempt by Guatemala to send him back there.


Authorities in Belize say he is not a prime suspect in the investigation. McAfee has denied any role in Faull’s killing.


The goateed McAfee has led the world’s media on a game of online hide-and-seek in Belize and Guatemala since he fled after Faull’s death, peppering the Internet with pithy quotes and colorful revelations about his unpredictable life.


“I’m happy to be going home,” McAfee, dressed in a black suit, told reporters shortly before his departure from Guatemala City airport on Wednesday afternoon. “I’ve been running through jungles and rivers and oceans and I think I need to rest for a while. And I’ve been in jail for seven days.”


Guatemala’s immigration authorities had been holding McAfee since he was arrested last Wednesday for illegally entering the country with his 20-year-old Belizean girlfriend.


The eccentric tech pioneer, who made his fortune from the anti-virus software bearing his name, has been chronicling life on the run in a blog, www.whoismcafee.com.


He said he had no immediate plans after reaching Florida.


“I’m just going to hang in Miami for a while. I like Miami,” he told Reuters by telephone just before his plane left. “There is a great sushi place there and I really like sushi.”


BELIZE STILL WAITING


Residents of the Belizean island of Ambergris Caye, where McAfee has lived for about four years, said McAfee and Faull, 52, had quarreled at times, including over McAfee’s unruly dogs.


McAfee says Belize authorities will kill him if he turns himself in for questioning. He has said he was being persecuted by Belize’s ruling party for refusing to pay some $ 2 million in bribes.


Belize’s prime minister has rejected the allegations, calling McAfee paranoid and “bonkers.


Belize police spokesman Raphael Martinez said the country still wanted to question McAfee about the Faull case.


“He will be just under the goodwill of the United States of America. He is still a person of interest, but a U.S. national has been killed and he has been somewhat implicated in that murder. People want him to answer some questions,” he said.


Martinez noted that Belize’s extradition treaty with the United States extended only to suspected criminals, a designation that did not currently apply to McAfee.


“Right now, we don’t have enough information to change his status from person of interest to suspect,” he said.


Residents and neighbors on Ambergris Caye said McAfee was unusual and at times unstable. He was seen to travel with armed bodyguards, sporting a pistol tucked into his belt.


The predicament of McAfee, a former Lockheed systems consultant, is a far cry from his heyday in the late 1980s, when he started McAfee Associates. McAfee has no relationship now with the company, which was sold to Intel Corp.


McAfee was previously charged in Belize with possession of illegal firearms, and police had raided his property on suspicions that he was running a lab to produce illegal synthetic narcotics. He said he had not taken drugs since 1983.


“I took drugs constantly, 24 hours of the day. I took them for years and years. I was the worst drug abuser on the planet,” he told Reuters before his arrest in Guatemala. “Then I finally went to Alcoholics Anonymous, and that was the end of it.”


(Writing by Dave Graham, Michael O’Boyle and David Adams. Reporting by Sofia Menchu and Mike McDonald.; Editing by Peter Cooney)


Celebrity News Headlines – Yahoo! News


Read More..

Obama backers turn from re-election to “fiscal cliff” fight






WASHINGTON (Reuters) – After a year of knocking on doors and working the phones to get President Barack Obama re-elected, Meechie Biggers had gotten over her fear of talking politics with strangers.


So when she came to Washington last week, the small-town real estate agent and a few like-minded Tennesseeans paid a visit to one of their Republican senators, Bob Corker, to try to persuade him to back Obama’s proposal to raise tax rates for the wealthy.






Biggers didn’t think she had much of a chance of changing his mind, and perhaps she didn’t. But four days later, Corker became the latest Republican to say his party should consider Obama’s proposed tax hike as part of a year-end budget deal.


“It’s a testament to knocking on doors and giving people your two cents,” Biggers said.


The election ended more than a month ago, but the campaign continues for many of the 2 million-plus foot soldiers who helped secure Obama’s second term.


Flush with victory, many volunteers and staffers are now mounting a grassroots effort to ensure that any deal that emerges from year-end “fiscal cliff” discussions includes a tax increase on the wealthiest households.


It’s an open question how many will stick with him if he is forced to consider cutting popular programs such as Medicare that enjoy broad support on the left.


But for now, it’s a chance to help Obama fulfill one of his central campaign promises – economic justice – and build on the momentum of his re-election. It also enables them to maintain friendships and a sense of purpose that were forged through the campaign.


“You can only go to so many celebrations, parties and lunches. And then you’re ready to help the president get done what he needs to get done,” said Lenda Sherrell, a retired accountant from Monteagle, Tennessee, who visited Corker along with Biggers.


The effort gives Obama added leverage in Washington at a time when many Republican allies are undergoing a painful re-examination in the wake of last month’s election.


Groups aligned with the conservative Tea Party movement, who pressed successfully for deep spending cuts in earlier budget fights, have been less visible in the fiscal-cliff battle, and business groups have pressed Republican lawmakers to abandon their no-tax-hike stance.


The grassroots pressure from the left could weaken Republicans’ resolve to hold the line against tax hikes, said Chris Arterton, a professor of political management at George Washington University. “It tends to take the wind out of their sails if their citizens are pushing in a direction that is absolutely contradictory to the politician’s views,” he said.


Corker’s office said he appreciates hearing from his constituents but he has not changed his view that increased tax revenue should come from eliminating deductions rather than raising rates.


The post-election effort stands in stark contrast to Obama’s first term, when officials did not keep his massive grassroots organization engaged in battles over spending, health care and climate change. This time around, campaign officials and liberal allies have made a concerted effort to harness the network for inside-the-Beltway policy battles.


ACTIVISTS INVITED TO WHITE HOUSE


One week after the election, Obama thanked 30,000 volunteers in a conference call and asked them to stay involved in the budget fight. Top activists such as Biggers and Sherrell have been invited to the White House for strategy and networking sessions.


Even as he tries to hammer out a deal with House of Representatives Speaker John Boehner, Obama has jetted to campaign-style rallies around the country to keep up the pressure. He has encouraged backers to send Twitter messages describing how they would be hurt by the automatic tax increases due to kick in if the fiscal cliff isn’t averted. On Monday, his campaign urged supporters in Republican congressional districts to call their lawmakers to support the tax hike.


Many of the volunteers and staffers who powered the campaign’s massive get-out-the-vote effort are continuing their work under the banner of The Action, a coalition of labor and liberal groups that launched three days after Obama’s November 6 victory.


As Obama’s Tennessee state director, Justin Wilkins steered volunteers in the deeply Republican state to phone banks and door-knocking efforts in more competitive states such as North Carolina. Now he is overseeing many of those same volunteers as part of The Action.


“Nobody had to be called. People literally came running,” he said.


Like both of Obama’s election campaigns, The Action combines cutting-edge digital tools with an emphasis on boots-on-the-ground action. A slick website directs supporters to events in their local area and provides the phone numbers of House lawmakers who have yet to back a legislative maneuver that would force a vote on Obama’s proposed tax hike in the Republican-controlled chamber. Backers can download distinctive yellow-and-black signs to wave at local rallies or post online.


Participants have spent the past month mounting demonstrations outside Republican lawmakers’ local offices and writing letters to local newspapers – a strategy designed to boost local news coverage and build public support for the tax hike.


Republicans have complained that the campaign-style tactics are complicating efforts to reach a deal. “A month after his re-election and weeks before the fiscal cliff, he’d still rather campaign than cooperate,” Senate Republican Leader Mitch McConnell said on Wednesday.


Public opinion polls show that a majority of Americans support the idea of raising taxes on the wealthiest 2 percent of U.S. households.


Volunteers see the fight as central to Obama’s prospects for a successful second term. Obama will have a tough time pursuing priorities like education without additional revenue, they say.


The Action’s narrow focus on raising taxes for the wealthy has allowed the coalition to avoid conflicts over other elements of the fiscal cliff fight that might prove more divisive, such as spending cuts or changes to popular entitlements such as Medicare and Social Security. Participants say they’re not sure whether the coalition will stay intact once the tax-hike battle is resolved.


“It’s relatively easy for the Democrats to coalesce around this, but there won’t be the same united front for the next issue,” said University of Michigan politics professor Michael Traugott.


Whether the coalition survives, many of those involved say they intend to keep up the effort to advance Obama’s agenda in the years to come.


“It was kind of a little bit scary to me to go knock on people’s doors and ask them their political stance, but I did it,” Biggers said.


“For me to go to somebody else and say, this is my opinion, do you want to hear it? That’s not me. But maybe it is now.”


(Reporting by Andy Sullivan. Editing by Fred Barbash, Mary Milliken and Lisa Shumaker.)


Health News Headlines – Yahoo! News


Read More..

Asian shares rise, yen slips after Fed’s stimulus steps






TOKYO (Reuters) – Asian shares extended gains for a seventh day on Thursday, after the U.S. Federal Reserve took new stimulus steps to bolster the economy, pressuring the yen with expectations the Japanese central bank will follow suit with more easing next week.


While stocks gained, oil and gold fell from post-Fed rallies, as investors took profits ahead of the year-end, and concerns over the U.S. budget impasse also weighed on sentiment.






The upside for equities was also contained despite the Fed‘s fresh dose of liquidity-pumping measures, as investors were worried the United States would miss a year-end deadline to avert the “fiscal cliff,” some $ 600 billion of tax hikes and spending cuts scheduled to start in January.


U.S. House of Representatives Speaker John Boehner said on Wednesday “serious differences” remain with President Barack Obama on the budget talks.


Failure to reach a compromise by the end of the year risks pushing the U.S. economy into recession and has stoked fears that a fragile recovery trend emerging in China and some other countries would be stifled.


Against this backdrop, European shares were expected to start narrowly mixed, with financial spreadbetters predicting London’s FTSE 100 <.ftse>, Paris’s CAC-40 <.fchi> and Frankfurt’s DAX <.gdaxi> will open flat to 0.2 percent higher. A 0.1 percent gain in U.S. stock futures hinted at a firm Wall Street open. <.l><.eu><.n></.n></.eu></.l></.gdaxi></.fchi></.ftse>


MSCI’s broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> added 0.3 percent to a 16-month peak, having hit successive 16-month highs since December 5. South Korean shares <.ks11> advanced 0.8 percent to a two-month high.</.ks11></.miapj0000pus>


“The Fed’s easing measures met the market’s expectations, while the setting of clear inflation and unemployment targets exceeded hopes and will clear uncertainty on the monetary front,” said Kim Yong-goo, an analyst at Samsung Securities.


The U.S. central bank committed to monthly purchases of $ 45 billion in Treasuries on top of the $ 40 billion per month in mortgage-backed bonds it started buying in September. But it also took the unprecedented step of indicating interest rates would remain near zero until unemployment falls to at least 6.5 percent.


YEN WEAKNESS CONTINUES


The dollar advanced to its loftiest in nearly nine months against the yen, touching a high of 83.635 yen. The slumping yen boosted Japan’s Nikkei share average <.n225> up 1.6 percent and above 9,700 for the first time in eight months. <.t></.t></.n225>


Japan holds an election on Sunday, with opinion surveys showing conservative former Prime Minister Shinzo Abe‘s opposition Liberal Democratic Party and its smaller ally heading for a resounding victory.


Abe wants to step up aggressive monetary easing along with heavy public works spending, policy prescriptions dubbed “Abenomics” by the media, and while he threatens to curtail the Bank of Japan‘s independence, investors reckon the responsibility of power will prevent Abe taking excessive risks that could lead to a bond market meltdown.


“As the Fed sets direction on policy rates for the rest of central banks and equity markets, the Bank of Japan sets the currency vehicle, by stepping up asset purchases and driving down the yen once LDP Chief Abe becomes the likely PM at Sunday’s elections,” Ashraf Laidi, chief global strategist at City Index, said in a note to clients.


At its December 19-20 meeting, the BOJ is widely expected to further ease monetary policy to support its weak economy.


The Fed’s latest move to make the jobless rate a target for its monetary policy could have a longer-term implication on the BOJ.


“While the BOJ’s ultimate goal is to pull Japan out of deflation, the Fed’s latest move could prompt Japanese politicians or the government to urge the BOJ to also commit itself to growth, not just price stability,” said Chotaro Morita, chief fixed income strategist at Barclays.


Morita said that market consensus is for the BOJ to expand its asset-buying and lending program, currently at 91 trillion yen ($ 1.1 trillion), by another 5-10 trillion yen, and put off taking bolder steps until after a new cabinet is formed.


Rising U.S. Treasury bond yields also drew demand for the dollar against the yen, given the stable and low Japanese yields.


BETTER EUROPEAN NEWS


The euro was relatively more robust than the dollar and the yen, inching up 0.1 percent to $ 1.3082 to approach Wednesday’s high of $ 1.3098, as some positive news emerged.


Europe clinched a deal on Thursday to give the European Central Bank new powers to supervise euro zone banks, the first step in a new phase of closer integration to help underpin the single currency.


Greece’s foreign lenders welcomed a bond buyback, paving the way for Athens to get long-delayed aid to avoid bankruptcy.


In Italy, another debt-straddled euro zone country, Silvio Berlusconi offered to stand back and make way for Mario Monti as Italy’s next leader if the outgoing technocrat premier agreed to run as the candidate for a center-right coalition. Monti’s intention to resign has raised concerns that his austerity policies may not be carried out.


Oil prices retreated from overnight gains, with U.S. crude futures down 0.2 percent to $ 86.57 a barrel and Brent falling 0.2 percent to $ 109.24.


Gold tumbled more than 1 percent on stop-loss selling after touching their highest in nearly two weeks on Wednesday. Spot gold dropped as much as 1 percent to $ 1,693.80.


($ 1 = 82.9300 Japanese yen)


(Additional reporting by Somang Yang in Seoul; Editing by Jacqueline Wong)


Business News Headlines – Yahoo! News


Read More..