North Korea Turns Its Ire on the South





SEOUL, South Korea — North Korea threatened on Friday to take “physical countermeasures” against South Korea if it helps enforce sanctions against the besieged North, calling the United Nations-endorsed penalties a “declaration of war” and warning of a prolonged chill in the relations between the two Koreas.




North Korea’s confrontational posture was likely to significantly limit room for the South’s incoming conservative president, Park Geun-hye, to make overtures for reconciliation with the North; like the outgoing President Lee Myung-bak and President Obama in the United States, Mr. Park considers the dismantling of the North’s nuclear program the premise in all South Korea’s diplomacy toward the North. Since her December election, she has said she would not tolerate the North’s nuclear program and would deal sternly with North Korean provocations.


In a statement issued in the name of its Committee for the Peaceful Reunification of the Fatherland, which manages relations with South Korea, North Korea gave no hint of what those countermeasures might be. While its earlier pronouncements more often than not turned out to be bluster, North Korea does have a history of following up some with unexpected military attacks — most recently, its shelling of a border island in 2010 that left four South Koreans dead. It was also blamed for sinking a South Korean warship the same year, leaving 46 sailors dead.


Those two incidents brought the two Koreas closer to waging a full-scale war than ever in recent decades, dispelling Washington’s desire to engage North Korea in serious negotiation. While calling for a vigorous enforcement of U.N. sanctions, Glyn Davies, Washington’s special envoy on North Korea, also appealed to the North’s new leader, Kim Jong-un, not to miss the opportunities for a new beginning, stressing that Washington cannot improve ties with Pyongyang without progress in inter-Korean relations.


North Korea outburst against South Korea on Friday in the latest installment of a verbal barrage it has launched since the United Nations Security Council on Tuesday unanimously adopted a resolution condemning North Korea’s Dec. 12 rocket launching. The resolution called the rocket a violation of earlier U.N. resolutions banning it from testing ballistic missile technology, and called for tightening sanctions against the country.


“If the puppet group of traitors takes a direct part in the U.N. ‘sanctions,’ the D.P.R.K. will take strong physical countermeasures against it,” North Korea said, using the nickname it often uses for the South Korean government and the acronym of its official name, the Democratic People’s Republic of Korea. “‘Sanctions’ mean a war and a declaration of war against us.”


The U.N. resolution was the fifth to be slapped on the North for its rocket and nuclear programs since 1993. It calls for tightening existing sanctions, such as expanding a travel ban on North Korean officials and the freezing of assets of North Korean banks and other agencies accused of engaging in shipments and financing for the North’s missile and nuclear programs. It also broadened the means for U.N. member nations to intercept and confiscate cargo headed for the North.


Since the Security Council resolution, North Korea has said it would conduct a nuclear test and launch more long-range rockets and that there would be no more talks on the “denuclearization” of the Korean Peninsula, a main goal of Washington’s thus-far unsuccessful diplomacy on the Korean Peninsula for the last two decades.


With Friday’s threat against the South, North Korea, under the young Mr. Kim, appeared to be following a well-worn track established under his late father, Kim Jong-il, before his death in December 2011: a cycle of North Korean provocation such as a rocket launching, U.N. condemnation, North Korean warnings of “physical countermeasures,” which were sometimes followed by provocative actions, such a nuclear test.


While this familiar cycle repeated itself in recent years, North Korea also steadily boosted its nuclear and missile capabilities. The North Korean nuclear crisis began in the early 1990s with nothing but a tiny amount of fissile material North Korea was suspected of gleaning from its experimental research reactor. It has since accumulated enough plutonium for an estimated half dozen nuclear bombs, built a full-scale uranium-enrichment program, conducted two nuclear tests and made strides toward building intercontinental ballistic missiles that U.S. officials feared could one day be tipped with nuclear warheads.


On Thursday, North Korea said it felt no need to hide its intention of building rockets and nuclear weapons with the United States as a “target” because Washington had intensified its “hostile” policy of “stifling” the already impoverished country.


Read More..

New PlayStation 4 details emerge: 8-core AMD ‘Bulldozer’ CPU, redesigned controller and more






2013 is a huge year for gamers. Nintendo (NTDOY) just launched the Wii U ahead of the holidays and both Sony (SNE) and Microsoft (MSFT) are expected to issue next-generation consoles before the year is through. We’ve seen plenty of rumors about both systems over the past few months, and the latest comes from Kotaku and focuses on Sony’s PlayStation 4.


[More from BGR: BlackBerry 10 said to be overhyped, RIM’s comeback chances remain slim]






The site claims to have gotten its hands on documents describing Sony’s developer system given to premier partners so they can build games ahead of the next-generation console launch. The specs, if accurate, will obviously line up with the release version of the system. Included in the specs Kotaku is reporting are an AMD64 “Bulldozer” CPU with eight cores total, an AMD GPU, 8GB of system RAM, 2.2GB of video memory, a 160GB hard drive, a Blu-ray drive, four USB 3.0 ports and more.


[More from BGR: Apple: ‘Bent, not broken’]


Sony also reportedly has a redesigned controller in the works that will include a capacitive touch pad.


This article was originally published on BGR.com


Gaming News Headlines – Yahoo! News




Read More..

Voice of Te'o prankster? Couric plays voicemails


NEW YORK (AP) — The person Manti Te'o says was pretending to be his online girlfriend told the Notre Dame linebacker "I love you" in voicemails that were played during his interview with Katie Couric.


Taped earlier this week and broadcast Thursday, the hour-long talk show featured three voicemails that Te'o claims were left for him last year. Te'o said they were from the person he believed to be Lennay Kekua, a woman he had fallen for online but never met face-to-face.


After the first message was played, Te'o said: "It sounds like a girl, doesn't it?"


"It does," Couric responded.


The interview was the All-American's first on camera since his tale of inspired play after the deaths of his grandmother and girlfriend on the same day in September unraveled as a bizarre hoax in an expose by Deadspin.com on Jan. 16.


Te'o's parents appeared with him for part of the interview and backed up his claim that he wasn't involved in the fabrication, saying they, too, had spoken on the phone with a person they believed to be Kekua.


Couric addressed speculation that the tale was concocted by Te'o as a way to cover up his sexual orientation. Asked if he were gay, Te'o said "no" with a laugh. "Far from it. Faaaar from that."


He also said he was "scared" and "didn't know what to do" after receiving a call on Dec. 6 — two days before the Heisman Trophy presentation — from a person who claimed to be his "dead" girlfriend.


The first voicemail, he said, was from what was supposed to be Kekua's first day of chemotherapy for leukemia.


"Hi, I am just letting you know I got here and I'm getting ready for my first session and, um, just want to call you to keep you posted. I miss you. I love you. Bye," the person said.


In the second voicemail, the person was apparently upset by someone else answering Te'o's phone.


The third voicemail was left on Sept. 11, according to Te'o, the day he believed Kekua was released from the hospital and the day before she "died."


"Hey babe, I'm just calling to say goodnight," the person on the voicemail said. "I love you. I know that you're probably doing homework or you're with the boys. ... But I just wanted to say I love you and goodnight and I'll be ok tonight. I'll do my best. Um, yeah, so get your rest and I'll talk to you tomorrow. I love you so much, hon. Sweet dreams."


Couric suggested the person who left those messages might have been Ronaiah Tuisasosopo, a 22-year-old man from California, who Te'o said has apologized to him for pulling the hoax.


"Do you think that could have been a man on the other end of the phone?" she asked.


"Well, it didn't sound like a man," Te'o said. "It sounded like a woman. If he somehow made that voice, that's incredible. That's an incredible talent to do that. Especially every single day."


Tuiasosopo has not spoken publicly since news of the hoax broke. The Associated Press has learned that a home in California where Te'o sent flowers to the Kekua family was once a residence of Tuiasosopo and has been in his family for decades.


Also on Thursday, the woman whose pictures were used in fake online accounts for Kekua said Tuiasosopo confessed to her in a 45-minute phone conversation as the scheme unraveled.


Diane O'Meara spoke with The Associated Press in a telephone interview. She said Tuiasosopo told her he'd been "stalking" her Facebook profile for five years and stealing photos.


O'Meara's attorney, Jim Artiano, said they had not decided on whether to take any legal action.


The 23-year-old O'Meara, of Long Beach, Calif., said she knew Tuiasosopo from high school and he contacted her through Facebook on Dec. 16. She said that, over the next three weeks, Tuiasosopo got in touch with her several times, attempting to get photos and video of O'Meara. She said he made up a story about wanting them to help cheer up a cousin who was injured in a car crash.


O'Meara learned her identity had been stolen on Jan. 13 when she was contacted by Deadspin.com.


The next day she got in touch with Tuiasosopo.


"When I contacted Ronaiah I got a very bizarre vibe from him, he became very nervous, he wasn't asking the questions I expected. He was asking 'Who contacted you? What did they say?'" O'Meara said.


Later that day, he confessed, O'Meara said. She said she asked Tuiasosopo why he didn't simply stop the hoax.


"He told me he wanted to end the relationship," O'Meara said. "He said he wanted to stop the relationship between Lennay and Manti, but Manti didn't want Lennay to break up with him ... He said he tried to stop the game many times."


When news of the hoax broke a few days later, O'Meara said she received a text from Tuiasosopo asking her to call him as soon as possible. O'Meara said she didn't respond.


___


Associated Press writer Tami Abdollah contributed to this report from Los Angeles.


Read More..

The New Old Age Blog: Time to Recognize Mild Cognitive Disorder?

The Diagnostic and Statistical Manual of Mental Disorders, published and periodically updated by the American Psychiatric Association, is one of those documents few laypeople ever read, but many of us are affected by.

It can make it easier or harder to get an insurance company or Medicare to cover treatments, for example. It factors into a variety of legal and governmental decisions.

And on a personal basis, a psychiatric diagnosis may be welcome (having a name and a treatment plan for what’s bothering us can be comforting) or not (are we really suffering from a mental disorder if we seem depressed after a family member dies?).

That last question refers to a change in the new DSM5, to be published in May, that has generated considerable controversy and that I discussed in an earlier post: the removal of the “bereavement exclusion,” once part of the diagnosis of Major Depressive Disorder.

Another element of the revised DSM could also affect readers: It will include something called Mild Neurocognitive Disorder. The task force revising the manual wanted to align psychiatry with the rest of medicine, which has already begun to distinguish between levels of impairment, said its chairman, David Kupfer, a University of Pittsburgh psychiatrist.

True enough, as we have reported before. Neurologists call it Mild Cognitive Impairment, a stage where cognitive decline becomes noticeable enough to affect daily functioning, yet people can still live independently and have not progressed to dementia.

In fact, a large proportion of people with mild cognitive problems never will develop dementia — but doctors and researchers cannot yet determine who will and who won’t. Biomarkers that could identify the biological brain changes that presage dementia are still years away.

Will it be helpful, then, for health professionals using the DSM5 — most of them not psychiatrists, but primary care doctors — to begin diagnosing Mild Neurocognitive Disorder? Particularly as there is no treatment that can reverse it or reliably slow its progression, if it would progress?

Dr. Ronald Petersen, director of the Mayo Clinic’s Alzheimer’s Disease Research Center and a member of the working group that developed the new DSM5 criteria, said he thought the newly recognized disorder would be useful. “The predementia phase is becoming increasingly important,” he told me in an interview.

Counseling could help people compensate for the memory loss and other deficits they are experiencing, for example. With a DSM-recognized diagnosis, those approaches are more likely to be covered by insurers.

Besides, “one argument against Alzheimer’s therapies is that we wait too late, when there’s too much damage to the central nervous system to repair,” Dr. Petersen said, referring to several recent disappointing drug trials. In the future, with earlier diagnoses, “you may be able to intervene, stop the process and forestall the dementia.”

But as we have seen with screening tests for other diseases, early detection does not always lead to better health or longer lives. It can, however, lead to unnecessary treatments and procedures involving risks of their own. Could that happen with Mild Neurocognitive Disorder?

“It will lead to wild overdiagnosis,” predicted Allen Frances, an emeritus professor of psychiatry at Duke and the chairman of the task force that developed the previous DSM edition. Indeed, about a quarter of people initially diagnosed with mild cognitive impairment are later determined to be normal, a prominent researcher told my colleague Judy Graham last year.

“People will get unnecessary tests and start getting weird treatments that have no proven efficacy,” said Dr. Frances, who has criticized a number of DSM5 changes. “They’re going to worry like crazy about being demented.”

Dr. Petersen agreed that it was a legitimate concern, but “by and large, we’re becoming better at distinguishing between the normal cognitive effects of aging and disease.” (The American Psychiatric Association will publish a specialized DSM for primary care physicians, Dr. Kupfer pointed out, to help guide them through diagnoses.)

It is hard for patients and families to know how to react when experts disagree. But keep in mind that contemporary health care aims for what is called shared decision-making. That means patients and professionals discuss options and weigh the risks and benefits of treatments and procedures, their likely outcomes, patients’ preferences, and come to agreement on how to proceed. This essay in the New England Journal of Medicine calls shared decision-making “the pinnacle of patient-centered care.”

So when Dr. Frances refers to the DSM5 as “a guide, not a bible,” and urges skepticism about some of its diagnoses, he is advocating an approach that patients and families should probably bring to any medical decision.

Seeking further information, asking questions, assessing options — those are reasonable responses if, a few weeks after a loved one’s death, a doctor says you may have major depression. Or if she thinks your memory loss could mean Mild Neurocognitive Disorder.

“The shorter the evaluation, the less the person knows you, the less he or she can explain and justify the diagnosis, the more tests and treatments that will result, the more a person should be cautious and get a second opinion,” Dr. Frances said.

Whatever the DSM5 says, it’s hard to argue with that.

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

Read More..

Storm-Damaged Homes Mean Lower Property Tax Revenues in New York Region





Localities across the New York region, already reeling from the cost of cleaning up from Hurricane Sandy, are confronting the prospect of an even bigger blow to their finances: a precipitous decline in property tax revenues.




The storm damaged tens of billions of dollars’ worth of real estate, especially in coastal areas of Long Island and New Jersey. As a result, localities can no longer expect to reap the same taxes from properties that have lost much of their value — in some cases, permanently.


Without new revenues, state and local officials and Wall Street analysts said, these areas may have to make deep cuts in spending on schools, police and fire departments and other services. They also may be hard-pressed to finance rebuilding.


“Absolutely, this is going to be devastating for several years,” said Ester Bivona, former president of the New York State Receivers and Collectors Association, which represents local tax officials.


The Division of Local Government Services in New Jersey estimated this month that more than a dozen municipalities in the state could lose at least 10 percent of their tax bases. About another 10 face a drop between 5 percent and 10 percent, state and local officials said.


Among the worst hit is Toms River, one of New Jersey’s largest municipalities, with 90,000 people. It recently warned Wall Street that property tax receipts could drop 10 percent to 15 percent, according to its financial disclosure documents.


Down the coast, the tiny borough of Tuckerton lost close to 20 percent of its property tax base. In Sea Bright, nearly half the homes are uninhabitable.


The situation is similar on Long Island, according to interviews with officials there.


The village of Freeport in Nassau County expects that many of its 15,000 homeowners will qualify for reductions in property tax bills, erasing at least 5 percent of property tax revenues and probably far more.


Experts said the looming revenue crisis for localities in the region underscores how natural disasters can have a profound effect long after the debris is gone.


If localities try to raise overall tax rates to make up for looming deficits, they may touch off a backlash from homeowners with undamaged properties.


“My thing is to encourage property owners to not seek reassessments because you’re going to pay on one end or the other,” said Andrew Hardwick, Freeport’s mayor. “If too many people seek reassessment and are successful with it, that means, how do you pay the bills on the other end? You raise the taxes again? It doesn’t make sense.”


Some localities, like Long Beach, on Long Island, had shaky finances before the storm and are now in deeper trouble, according to local budget records. But many others had been on solid financial ground.


Two major bond-rating agencies, Moody’s Investors Service and Standard & Poor’s, have expressed concerns in recent weeks about the fiscal stability of numerous municipalities in the region.


New York City and county governments in New York are far less reliant on property taxes than localities, so they are expected to have an easier time weathering a drop in the value of the tax base caused by storm damage. The city, for example, has its own income and business taxes.


What’s more, the city and county governments in both states have a much broader property tax base than small localities.


The $50.7 billion Hurricane Sandy relief bill approved this month by the House of Representatives provides up to $300 million in low-interest loans for localities facing shortfalls. The Senate has supported a similar provision in its own relief package.


But some local officials said such financing was not nearly enough. States themselves have not yet sent aid, and senior state officials said they were not inclined to do so until federal money was exhausted.


“It’s a pretty inescapable conclusion that there will be an impact on the tax base,” said Michael Drewniak, chief spokesman for Gov. Chris Christie of New Jersey.


“In many instances, we had homes completely wiped out or severely damaged to the point they were rendered uninhabitable,” Mr. Drewniak said. “That left behind rebuildable land but, in the meantime, no ‘improvements’ to tax. In other cases, people may find it cost prohibitive to rebuild at all, depending on their individual circumstances.”


It could be a year or two before the aftereffects are fully understood, given that localities will have to assess damaged properties before lowering property taxes on them.


Griff Palmer contributed reporting.



Read More..

IHT Rendezvous: IHT Quick Read: Jan. 24

NEWS In one of her final appearances as secretary of state, Hillary Rodham Clinton on Wednesday vigorously defended her handling of last September’s attack on the United States diplomatic compound in Benghazi, Libya, which killed four Americans and prompted a scathing review of State Department procedures. Michael R. Gordon reports from Washington.

North Korea vowed on Thursday to launch more long-range rockets and conduct its third nuclear test, ratcheting up tensions following the United Nations Security Council’s decision to tighten sanctions against the country for launching a rocket last month. Choe Sang-Hun reports from Seoul.

Prime Minister David Cameron of Britain has added to Europe’s malaise, vowing to reduce British entanglement with the European Union—or allow his people to vote in a referendum to leave the bloc altogether. Andrew Higgins reports from Brussels.

Defense Secretary Leon E. Panetta is lifting the U.S. military’s official ban on women in combat, which will open up hundreds of thousands of additional front-line jobs to them, senior defense officials said Wednesday. Elisabeth Bumiller and Thom Shanker report from Washington.

At the most recent count, there were 212,000 refugees in Lebanon, registered or awaiting registration with the United Nations refugee agency. A year ago, the agency had registered 5,000. The increase mirrors the intensification of a conflict across the border in Syria that the United Nations says has now killed 60,000. Josh Wood reports from Al-Minya, Lebanon.

Jamie Dimon, the chief executive of JPMorgan Chase, apologized again for the bank’s recent $6 billion trading loss, this time in front of an audience that included the elite of the financial world. But in keeping with his confident demeanor, it was a diet portion of humble pie. Jack Ewing reports from Davos, Switzerland.

ARTS Nearly 212,000 oil paintings in Britain have been photographed and put online in a comprehensive project designed to make the country a cultural pioneer of the digital age. Stephen Castle reports from London.

FASHION The garden in all its summer enchantment has blossomed as the big theme of the Paris couture season. Suzy Menkes reviews from Paris.

SPORTS Li Na, one of China’s biggest sports stars, played one of the best big matches of her career to defeat Maria Sharapova, 6-2, 6-2 and reach the Australian Open final. Christopher Clarey reports from Melbourne, Australia.

Read More..

Siri was supposed to be a key feature on Verizon’s DROID lineup until Apple swooped in







Since the release of the iPhone 4S, Apple (AAPL) has touted its intelligent voice assistant Siri as a key feature of the iOS ecosystem. The startup company behind the app originally launched Siri as standalone program on the App Store and had plans to release Android and BlackBerry versions in the future. Siri was quickly acquired by Apple, however, and plans to expand the app were cancelled.


[More from BGR: Apple reports Q1 results: $ 13.1 billion profit beats estimates, iPhone sales and Q2 guidance miss big]






According to a report from The Huffington Post, Verizon (VZ) had actually signed a deal with the creators of Siri to feature the voice assistant on its DROID line of smartphones several months before the company was approached by Apple. The wireless carrier even created commercials touting the unique feature, although they never saw the light of day.


[More from BGR: As data gets cheaper for Verizon to transmit, customers are paying more]


After two months of availability on the App Store, Apple acquired Siri in 2010 and the rest is history.


This article was originally published on BGR.com


Wireless News Headlines – Yahoo! News




Read More..

Djokovic advances to Australian Open final


MELBOURNE, Australia (AP) — Two-time defending champion Novak Djokovic advanced to his third consecutive Australian Open final with a 6-2, 6-2, 6-1 win over No. 4-seeded David Ferrer on Thursday night.


The top-ranked Djokovic was in dominating form, hitting 30 crisp winners in the 1-hour, 29-minute match. He is aiming to be the first man in the Open era to win three consecutive Australian titles.


On Sunday, he'll meet the winner of Friday's semifinal between No. 2-ranked Roger Federer, a four-time Australian champion, and U.S. Open winner Andy Murray, who is ranked No. 3.


Djokovic, who is now unbeaten in five Grand Slam head-to-heads with Ferrer, allowed his opponent only four points in the first four games of the last set to strangle any chance of a comeback.


Read More..

Well: Long Term Effects on Life Expectancy From Smoking

It is often said that smoking takes years off your life, and now a new study shows just how many: Longtime smokers can expect to lose about 10 years of life expectancy.

But amid those grim findings was some good news for former smokers. Those who quit before they turn 35 can gain most if not all of that decade back, and even those who wait until middle age to kick the habit can add about five years back to their life expectancies.

“There’s the old saw that everyone knows smoking is bad for you,” said Dr. Tim McAfee of the Centers for Disease Control and Prevention. “But this paints a much more dramatic picture of the horror of smoking. These are real people that are getting 10 years of life expectancy hacked off — and that’s just on average.”

The findings were part of research, published on Wednesday in The New England Journal of Medicine, that looked at government data on more than 200,000 Americans who were followed starting in 1997. Similar studies that were done in the 1980s and the decades prior had allowed scientists to predict the impact of smoking on mortality. But since then many population trends have changed, and it was unclear whether smokers today fared differently from smokers decades ago.

Since the 1960s, the prevalence of smoking over all has declined, falling from about 40 percent to 20 percent. Today more than half of people that ever smoked have quit, allowing researchers to compare the effects of stopping at various ages.

Modern cigarettes contain less tar and medical advances have cut the rates of death from vascular disease drastically. But have smokers benefited from these advances?

Women in the 1960s, ’70s and ’80s had lower rates of mortality from smoking than men. But it was largely unknown whether this was a biological difference or merely a matter of different habits: earlier generations of women smoked fewer cigarettes and tended to take up smoking at a later age than men.

Now that smoking habits among women today are similar to those of men, would mortality rates be the same as well?

“There was a big gap in our knowledge,” said Dr. McAfee, an author of the study and the director of the C.D.C.’s Office on Smoking and Public Health.

The new research showed that in fact women are no more protected from the consequences of smoking than men. The female smokers in the study represented the first generation of American women that generally began smoking early in life and continued the habit for decades, and the impact on life span was clear. The risk of death from smoking for these women was 50 percent higher than the risk reported for women in similar studies carried out in the 1980s.

“This sort of puts the nail in the coffin around the idea that women might somehow be different or that they suffer fewer effects of smoking,” Dr. McAfee said.

It also showed that differences between smokers and the population in general are becoming more and more stark. Over the last 20 years, advances in medicine and public health have improved life expectancy for the general public, but smokers have not benefited in the same way.

“If anything, this is accentuating the difference between being a smoker and a nonsmoker,” Dr. McAfee said.

The researchers had information about the participants’ smoking histories and other details about their health and backgrounds, including diet, alcohol consumption, education levels and weight and body fat. Using records from the National Death Index, they calculated their mortality rates over time.

People who had smoked fewer than 100 cigarettes in their lifetimes were not classified as smokers. Those who had smoked at least 100 cigarettes but had not had one within five years of the time the data was collected were classified as former smokers.

Not surprisingly, the study showed that the earlier a person quit smoking, the greater the impact. People who quit between 25 and 34 years of age gained about 10 years of life compared to those who continued to smoke. But there were benefits at many ages. People who quit between 35 and 44 gained about nine years, and those who stopped between 45 and 59 gained about four to six years of life expectancy.

From a public health perspective, those numbers are striking, particularly when juxtaposed with preventive measures like blood pressure screenings, colorectal screenings and mammography, the effects of which on life expectancy are more often viewed in terms of days or months, Dr. McAfee said.

“These things are very important, but the size of the benefit pales in comparison to what you can get from stopping smoking,” he said. “The notion that you could add 10 years to your life by something as straightforward as quitting smoking is just mind boggling.”

Read More..

Euro Watch: Data Point to Slow Recovery in Euro Zone


The euro zone economy took a step closer to recovery this month as the rate of decline in the bloc’s private sector eased more than expected, a business survey showed on Thursday.


But in an indication of the hurdles left to scale, Spain’s unemployment surged to 26 percent in the fourth quarter, a record high since measurements began in the 1970s, as a prolonged recession and deep spending cuts left almost 6 million people out of work at the end of last year.


The manufacturing survey published by Markit supports European Central Bank President Mario Draghi’s assertion that the 17-nation currency union is benefiting from “positive contagion” but still hints at an economic contraction in the first quarter of 2013.


Markit’s Flash Composite Eurozone Purchasing Managers’ Index, which surveys around 5,000 companies and is seen as a good growth indicator, jumped to 48.2 from December’s 47.2, beating expectations for a rise to 47.5.


While the index has now held below the 50 mark that separates growth from contraction in all but one of the last 17 months, Markit said the data suggested conditions in the bloc were improving.


“We shouldn’t get too gloomy about those numbers,” Chris Williamson, a data collator at Markit, said. “There is a turning point that took place towards the end of last year and the beginning of this year so things are picking up. Any downturn is looking likely to end in the first half.”


He added, however, that the manufacturing index was “still consistent” with gross domestic product in the 17-country bloc falling at a quarterly rate of about 0.2 percent to 0.3 percent.


The euro zone economy contracted in the second and third quarters of last year, meeting the technical definition of recession, and the downturn is expected to have deepened in the fourth quarter.


Earlier data from Germany, Europe’s largest economy and the bloc’s growth engine, showed its private sector expanded at its fastest pace in a year.


In neighboring France, data from Markit showed that business activity shrank in January at the fastest pace since the trough of the global financial crisis. The preliminary composite purchasing managers’ index, covering activity in the services and manufacturing sectors combined, came out at 42.7 for the month, slumping from 44.6 in December.


Spain’s unemployment rate rose to 26 percent in the fourth quarter of 2012, or 5.97 million people, the National Statistics Institute said on Thursday, up from 25 percent in the previous quarter and more than double the European Union average.


“We haven’t seen the bottom yet and employment will continue falling in the first quarter,” José Luis Martínez, a strategist with Citigroup, said.


Spain sank into its second recession since 2009 at the end of 2011 after a burst housing bubble left millions of low-skilled laborers out of work and sliding private and business sentiment gutted consumer spending and imports.


Efforts by Prime Minister Mariano Rajoy’s government to control one of the euro zone’s largest deficits through billions of euros of spending cuts and tax increases have fueled general malaise, further hampering demand.


Still, Mr. Draghi of the E.C.B. is taking an optimistic view, declaring earlier this month that the euro zone economy would recover later in 2013 and that there was now a “positive contagion” effect in play.


Europe’s top central banker cited falling bond yields, rising stock markets and historically low volatility as evidence for this, causing several forecasters to ditch expectations for an imminent cut in euro zone interest rates.


Read More..