Euro surges to 14-month high, Fed decision awaited


LONDON (Reuters) - The euro hit its highest level in over a year on Wednesday and shares, oil and metals were also on the rise, as confidence in the global economic outlook strengthened ahead of European data and the U.S. Federal Reserve's latest policy decision.


The Fed is expected to maintain asset buying at $85 billion a month when it concludes its meeting later and retain its commitment to hold interest rates near zero until unemployment falls to at least 6.5 percent.


European economic confidence data for January at 1000 GMT, ECB crisis loan repayments and Italy's sale of five and 10-year bonds will absorb most of investors' attention before then, as they look for further evidence of a pick-up in the region.


Share markets in London, Paris and Frankfurt opened little changed ahead of the data, leaving all eyes on a rally by the euro as it broke above $1.35 for the first time since December 2011.


Alongside the recent rebound in confidence in the euro zone, one of the drivers behind the recent spike has been the eagerness of banks to repay the crisis loans they took from the European Central Bank just over a year ago.


"It (the euro rise) is just a carry on with the current trend, risk is pretty healthy and equities are doing well," said Bank of Tokyo Mitsubishi strategist Derek Halpenny.


"The danger is European policymakers allow a spike (in euro and market rates) as a result of a removal of one of the principle support measures ... With the Fed and the BOJ still easing the euro is clearly the path of least resistance."


An earlier rise in Asian equities meant the MSCI world share index was up 0.2 percent at a new 21-month high as European trading gathered pace. U.S. stock futures suggested a cautious start on Wall Street.


Strong U.S. housing data on Tuesday and China's promising economic growth forecast for 2013 also supported the upbeat mood and raised expectations for robust demand for fuel and industrial commodities, underpinning oil prices and lifting copper.


In the bond market, German Bund futures opened lower as investors made room for a sale of long-dated German paper and braced for solid demand at an Italian debt auction.


Italy will offer up to 6.5 billion euros of bonds maturing in 2017 and 2022. Traders expect the sale to benefit from yield-hungry investors but flagged the risk of indigestion after a bout of buying in recent months that triggered a sharp rally.


"(The auction) probably (goes) alright but I don't think it trades well afterwards," one trader said.


(Additional reporting by Ana Nicolaci da Costa; Editing by Giles Elgood)



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The Female Factor: Chinese Courts Turn a Blind Eye to Abuse







BEIJING — Before they married in 2009, Tan Yong admitted to Li Yan that he had beaten his three previous wives. He promised to change.




The promises didn’t last, said Li Dehuai, Ms. Li’s brother. Soon after the wedding, Mr. Tan began abusing his wife.


“He stubbed out cigarettes on her face and legs. He would take her hair and hit her head against the wall. He locked her on the balcony for hours in the winter,” said Mr. Li, speaking by telephone from Chongqing in southwestern China. The abuse went on for more than a year.


Today, Mr. Tan is dead, beaten to death by Ms. Li with the barrel of his air gun during an argument in November 2010, and Mr. Li is trying to save his sister’s life as she sits in a jail in Sichuan Province awaiting execution for murder. The case has caused an outcry among Chinese legal experts and feminists, who say it underscores the severe sentences often imposed on women who fight back, injuring or killing abusive husbands.


“Li Yan’s case tells people that extreme tragedy will happen if an abused woman cannot get effective help from the neighborhood committee, the women’s federation, the police,” said Feng Yuan, of the Anti-Domestic Violence Network, based in Beijing.


“When power cannot deliver justice, abused women will find their own way of achieving justice, sadly and wrongly,” Ms. Feng said.


Chinese law requires that a history of domestic abuse be considered in such cases. Ms. Li’s was especially gruesome: After killing her husband (which she confessed to early, asking a neighbor to call the police), she cut him up and boiled some of the parts. If that is hard to excuse, consider this, said Ms. Feng: She wasn’t in her right mind.


“There’s something called abused women’s syndrome, and she had it. A woman like that may lose her reason and lose control,” said Ms. Feng, one of hundreds of people petitioning the courts to retry Ms. Li, this time taking the abuse into proper consideration. This was not done the first time, making Ms. Li’s case a miscarriage of justice, they say.


Others who have joined the appeal include lawyers, deputies to the National People’s Congress and Amnesty International, which last week issued an urgent action call for the Chinese authorities not to execute Ms. Li. The sentence could be carried out any day now, activists say, probably before the Lunar New Year’s Eve on Feb. 9.


Women’s jails are filled with women who have injured or killed abusive husbands, according to the Anti-Domestic Violence Network, citing studies by local women’s federations and scholars. They account for 60 percent of inmates in one jail in Anshan, in Liaoning Province, and 80 percent of women serving heavy sentences in a jail in Fuzhou, in Fujian Province.


In a study by Xing Hongmei of China Women’s University, of 121 female inmates in a Sichuan jail who were serving time for attacking or killing abusive partners, 71 were originally sentenced to life in prison or to death (sometimes commuted, delayed or overturned on appeal), and 28 more were sentenced to at least 10 years. This means more than 80 percent received the heaviest possible sentences for murder or bodily harm, the study said.


For months before she killed Mr. Tan, Ms. Li sought help from the authorities in Anyue County, in Sichuan Province, where they lived, her brother said.


“She telephoned the police in, I think, May 2010, after a beating, but they said it was an affair between married people and hung up,” he said.


She went to her neighborhood committee. “They told her to go to the women’s association. The women’s association told her to go to the police. The police told her to go to the neighborhood committee,” and so it continued, he said. “She was sent from place to place and didn’t know what to do.”


Officials at the local justice department whom she asked about divorce told her that unless Mr. Tan agreed, she could be left destitute. She was better off tolerating the abuse, they advised.


There was some documentation of the abuse, including police photographs of injuries and a medical report after hospital treatment, said Mr. Li. But both the Sichuan court that sentenced her and the Supreme Court in Beijing, which reviews all death sentences — Mr. Li and activists say it upheld his sister’s sentence last week — failed to take this into account when sentencing her, Mr. Li said.


“We all hoped the court would recognize the torture she’d suffered in those years,” he said. “But it didn’t.”


“I know what my sister did was wrong, but since this happened, I have studied many cases of domestic abuse, and I know her situation is not uncommon,” he said.


He has not yet been able to tell their mother, or Ms. Li’s 18-year-old daughter from a previous marriage, that Ms. Li faces imminent execution.


“I think my niece knows, somehow,” he said. “But my mother couldn’t take it.”


Their father, who died last year, had worked in the same silk factory as Ms. Li and Mr. Tan, and had disliked the man from the start, Mr. Li said.


“He was so depressed at her situation,” he said. “I think he died of grief.”


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Anne Hathaway Says She 'Met A Lot of Bad Ones' Before Meeting Her Husband















01/29/2013 at 06:00 AM EST







Adam Shulman and Anne Hathaway


Christopher Polk/WireImage


Following the Screen Actors Guild Awards on Sunday, Anne Hathaway was feeling the love at an after party at the Four Seasons in Beverly Hills.

Hathaway – who won an Actor for her role in Les Misérables – was overheard saying, "I'm in a celebratory mood."

With a drink in her hand, Hathaway told friends that her engagement ring from husband Adam Shulman is her "prized possession" and that her wedding band "isn't bad either," an onlooker tells PEOPLE.

Hathaway – who, according to a source "was playing matchmaker all night" – was later overheard telling her friends that she "met a lot of bad ones" before meeting Shulman.

– Patrick Gomez


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Soldier talks about his new arms after transplant


BALTIMORE (AP) — A soldier who lost all four limbs in an Iraq roadside bombing has two new arms following a double transplant at Johns Hopkins Hospital.


Twenty-six-year-old Brendan Marrocco along with the surgeons who treated him will be at the Baltimore hospital on Tuesday to discuss the new limbs.


The transplants are only the seventh double-hand or double-arm transplant ever conducted in the United States.


The infantryman was injured by a roadside bomb in 2009. The New York City man also received bone marrow from the same dead donor. The approach is aimed at helping his body accept the new arms with minimal medication to prevent rejection.


The military is sponsoring operations like these to help wounded troops. About 300 have lost arms or hands in the wars.


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Stock index futures point to slightly lower start

LONDON (Reuters) - Stock index futures pointed to a slightly lower open on Wall Street on Tuesday, with futures for the S&P 500 down 0.1 percent.


Futures for the Dow Jones were flat, while contracts on the Nasdaq 100 shed 0.2 percent at 04.47 a.m. EST.


European shares edged up to hover near two-year highs, with strong earnings reports and a brightening economic outlook lifting sentiment, although technical factors could limit gains in the near term.


Yahoo Inc said it forecasts a modest uptick in revenue for the current year, sending shares in the Internet group 3 percent higher in after hours trade.


The second-largest U.S. automaker, Ford, is expected to report earnings per share of $0.26, up from $0.20 one year earlier, when it unveils fourth-quarter results at 1200 GMT. Ford, which is heavily reliant on its pickup trucks for profits, is bound to benefit from an uptick in construction this year.


Drugmaker Pfizer is expected to report EPS of $0.44, down from $0.50 in the previous year, on plunging U.S. sales of its Lipitor cholesterol drug - which is facing generic competition since November 2011 - and disappointing demand for its Prevnar vaccine against childhood infections.


Online retailer Amazon.com reports results for the holiday quarter. They were expected to show strong sales growth, tempered by little to no profit as the world's largest Internet retailer spent heavily on its Kindle mobile gadget platform, cloud computing service and its rapidly expanding chain of shipping warehouses.


Standard & Poor's releases its S&P Case/Shiller Home Price Index for November at 1400 GMT. Prices are expected to have continued their recovery, up 0.6 percent on a seasonally adjusted basis, pointing to a housing market that is mending.


The Conference Board releases January consumer confidence figures at 1500 GMT, expected to have fallen to 64 from 65.1. The market will be looking for any impact from the "fiscal cliff" debate or the payroll tax increases at the beginning of the year.


The Federal Reserve's Open Market Committee begins two days of meetings on interest rates. Traders speculated more solid U.S. growth indicators might see the Fed pull back on its aggressive easing stimulus, which has played a key role in fuelling an equity market rally since the second half of last year.


Elon Musk has long considered Tesla Motors Inc the bold, nimble answer to the auto industry's cautious culture. Now the electric car maker's top executive has extended his help to another industrial giant: Boeing Co .


Pentagon and industry officials said on Monday a manufacturing problem was the most likely cause of an engine failure that led to the grounding of all 25 Marine Corps versions of the Lockheed Martin Corp F-35 fighter jet 10 days ago.


The Dow Jones industrial average <.dji> closed down 14.05 points, or 0.10 percent, at 13,881.93 on Monday. The Standard & Poor's 500 Index <.spx> was down 2.78 points, or 0.18 percent, at 1,500.18. The Nasdaq Composite Index <.ixic> was up 4.59 points, or 0.15 percent, at 3,154.30.


(Reporting By Francesco Canepa; Editing by Catherine Evans)



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India Ink: One Delhi Gang Rape Suspect Is Ruled a Minor

NEW DELHI

The Indian Juvenile Justice Board ruled Monday that one suspect in the recent fatal gang rape of a young woman on a moving bus is officially a juvenile, which could result in a lenient sentence if he is found guilty of the crime.

The teenager, who school records show is 17 years old, could receive a maximum sentence of three years in a detention facility if found guilty. Five other men accused of the premeditated rape and killing of a 23-year old physiotherapy student on Dec. 16 could face life imprisonment or the death penalty if found guilty.

The December gang rape and the victim’s subsequent death of injuries sustained during the rape prompted widespread protests in India over the lack of safety and justice for women, and calls for the rapists to be executed.

Some criminal and legal experts expected the juvenile to be forced to undergo a bone ossification test, which is sometimes used to determine age in India where birth records are not always accurate. But the juvenile board’s ruling Monday makes that unlikely.

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Jennifer Lawrence Feeling Better Thanks to a 'Lot of Medication'









01/28/2013 at 07:00 AM EST



Jennifer Lawrence is on the mend.

The ailing Silver Linings Playbook starlet is finally feeling fine after a reported bout with pneumonia.

"I'm so much better," Lawrence, 22, told reporters backstage at Sunday's Screen Actors Guild Awards, where she won for lead female actor. "I'm a lot better. I've been on a lot of medication and got a really cool inhaler, so I'm doing much better."

The actress – who was "laying low all week," a source told PEOPLE – missed Saturday's Australian Academy of Cinema and Television Arts International Awards due to the illness, according to her costar Jacki Weaver.

"Poor Jen is really sick," Weaver reportedly said, after accepting an award for Lawrence. "She really is sick. She has pneumonia."

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CDC: Flu seems to level off except in the West


New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.


The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.


Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.


There is still vaccine available although it may be hard to find. The CDC has a website that can help.


___


CDC: http://www.cdc.gov/flu/


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Futures flat, Caterpillar on tap to report


NEW YORK (Reuters) - Stock index futures were little changed on Monday, with investors reluctant to make big bets following a rally that took the S&P 500 above 1,500 for the first time in more than five years.


A strong start to the earnings season has boosted equities, with major averages rising for four straight weeks. The S&P has gained for eight straight days, its longest winning streak in eight years.


Over the past four weeks, the S&P has jumped 7.2 percent, suggesting markets may be vulnerable to a pullback if news disappoints.


Earnings will continue to be a primary focus, with Caterpillar Inc likely to be a market mover when it reports its latest quarterly financial results later on Monday. The heavy machinery maker could provide a clue into the state of the global industrial sector, which is closely tied to the pace of economic growth.


Yahoo Inc reports after the closing bell, and could face heightened expectations following strong results at Google Inc last week.


Thomson Reuters data through Friday showed that of the 147 S&P 500 companies that have reported earnings so far, 68 percent exceeded expectations. Since 1994, 62 percent of companies have topped expectations, while the average over the past four quarters stands at 65 percent.


S&P 500 futures rose 0.8 point and but were slightly below above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 7 points and Nasdaq 100 futures rose 0.2 point.


The S&P 500 closed at its highest since December 10, 2007, and the Dow ended at its highest since October 31, 2007.


Investors will also be looking to durable goods orders and pending home sales, both for December. Durable goods are due at 8:30 a.m. (1330 GMT) and are seen rising 1.8 percent. Pending home sales are seen rising 0.3 percent.


Last week, sales of new U.S. single-family homes fell in December but rose in 2012 to the highest level since 2009, a sign the U.S. housing market turned a corner last year.


Bargain hunters may look to Apple Inc for a bargain the first session after the tech giant lost its coveted title as the largest U.S. company by market capitalization to Exxon Mobil Corp . On Friday, Apple's market cap fell to $413 billion, down roughly $250 billion from its September peak. Apple's fall is about equal to the entire value of Google Inc .


U.S. stocks rose on Friday, lifted by strong results from such companies as Procter & Gamble . The rise put the S&P 500 about 4.1 percent away from its all-time closing high of 1,565.15 on October 9, 2007.


(Editing by W Simon)



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IHT Rendezvous: The Clinton Doctrine of American Foreign Policy

The partisan political theater, of course, was top-notch. Sen. Rand Paul’s declaration that he would have fired Hillary Rodham Clinton; her angry rebuttal of Sen. Ron Johnson’s insistence that the Obama administration misled the American people about the Benghazi attack; Sen. John McCain’s continued outrage at the slapdash security the State Department provided its employees.

Beneath the posturing, though, ran larger questions: what strategy does the United States have to counter the militant groups running rampant across North and West Africa? And what kind of secretary of state has Ms. Clinton been? In her last Congressional hearing in that position, Ms. Clinton expressed exasperation with Washington’s political trench warfare.

“We’ve got to get our act together,” she said.

Ms. Clinton has been a very good but very cautious secretary of state, many analysts say – one who, for the most part, kept her distance from Afghanistan, Israel-Palestine and other seemingly intractable conflicts.

One State Department official, while praising Ms. Clinton’s tenure, nonetheless looked forward to the arrival of Sen. John Kerry, her designated successor: “I came to admire Clinton as secretary of state, her focus on women and innovation in particular,” the official told me. “But am really happy to have someone in the job who does not retain political ambitions.”

In a recent assessment of Clinton’s tenure, Michael O’Hanlon of the Brookings Institution argued that she had enjoyed some success, including restoring the United States’ image abroad, but she made no historic breakthroughs, he said.

Mr. O’Hanlon argued that Ms. Clinton’s famed work ethic paid off. She made few mistakes, no major gaffes and did not “needlessly antagonize” friends or enemies. O’Hanlon called Ms. Clinton’s role in the administration’s “pivot to Asia” and tough stance toward China arguably “her greatest and most memorable contribution.”

The problem, as last week’s hearing showed, is that the Middle East and the threat of terrorism continue to dominate American foreign policy. Even as the United States becomes more energy independent, terrorist attacks like the kidnappings in a remote oil facility in Algeria will make headlines and influence markets. And barring a massive shift in American domestic politics, Israel’s security will continue to be viewed as a vital interest of the United States.

Ms. Clinton, to her credit, made forty trips to Europe that helped produce crippling new sanctions on Iran. Last fall, she helped broker a ceasefire between Israel and Hamas in Gaza. But she failed to personally engage in Israeli-Palestinian peace talks.

To be fair, the Obama White House may have limited her options. After promising more open debate than occurred under President George W. Bush, the Obama White House tightly controlled the formulation of American foreign policy. Critics have also accused Mr. Obama of being overly cautious in foreign affairs.

With the exception of the Libya intervention and the raid that killed Osama bin Laden, Mr. Obama was “coolly calculating and reluctant to engage” in his first-term foreign policy, The Economist magazine recently argued.

Mr. Obama, of course, is trying to avoid the over-reach his predecessor displayed in Iraq. He also faces enormous fiscal pressures at home. But there is a risk that the pendulum is swinging too far toward a smug isolationism in Washington.

As Ms. Clinton departs, worrying trends are emerging in the way America engages with the world. The new U.S. weapon of choice is the drone strike – a tactic that carries zero political risk at home but spreads anti-Americanism abroad.

Complex foreign policy problems that threaten American security are increasingly seen as “entanglements” best avoided. And there is a convenient view that there are no “good guys” in the power struggles now unfolding in the post-Arab-Spring Middle East.

The potential lesson of the bruising political battle over Benghazi is simple: Take few risks, turn embassies into bunkers and avoid political firestorms at home. In her testimony, Ms. Clinton passionately argued against that approach.

Declaring Somalia and Colombia success stories, she said the United States could counter militancy in Africa and the Middle East by working with regional organizations and training local security forces. U.S. funding and training of an African Union Mission in Somalia, or AMISOM, Ms. Clinton said, had slowly succeeded in driving back al-Shabaab and other Islamist forces. In Colombia, the government has driven back FARC rebels and narco-traffickers.

There have been setbacks and the efforts in both countries are imperfect. But local security forces trained and funded by the international community slowly gained ground in painstaking efforts over many years.

“What we have to do is recognize that we’re in for a long-term struggle here,” Ms. Clinton said at the hearing. “And that means we’ve got to pay attention to places that historically we have not chosen to or had to.”

During their heated exchange, Mr. McCain criticized Ms. Clinton and the Obama administration for not doing enough to train Libya’s security forces. Secretary Clinton replied that House Republicans had put a hold on the funding the administration requested to train Libyans.

“If this is a priority and we are serious about trying to help this government stand up security forces,” she said, “then we have to work together.”

Ms. Clinton is right. And so is Mr. McCain. Congressional politicking hinders the State Department. And the State Department executed terribly in Benghazi. But Ms. Clinton, who I have criticized in the past, won the day.

“We are in a new reality,” she said, referring to the change sweeping across the Middle East. “We are trying to makes sense of events that nobody had predicted but that we’re going to have to live with.”

Ms. Clinton called for the United States to show “humility” abroad and stop making national security issues “political footballs” at home. She said a Cold War style bipartisan agreement should be reached to launch a long-term American effort to strengthen local security forces and promote democracy across Africa and the post-Arab-Spring Middle East.

“Let’s be smart and learn from what we’ve done in the past,” she said. “Put forth a policy that wouldn’t go lurching from administration to administration but would be a steady one.”

“We have more assets than anyone in the world,” Ms. Clinton added, “but I think we’ve gotten a little bit off track in trying to figure out how best to utilize them.”

A “little bit off track” is a euphemism for partisanship endangering national security. If the U.S. doesn’t get its act together, expect more Benghazis.

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