Friday, May 31, 2013

Reuters: Most Read Articles: Iran presidential debate on economy dissolves into chaos

Reuters: Most Read Articles
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Iran presidential debate on economy dissolves into chaos
May 31st 2013, 21:10

Hassan Rohani speaks during a conference at the Expediency Council's Research and Strategic Studies Center in Tehran February 27, 2008. REUTERS/Stringer

Hassan Rohani speaks during a conference at the Expediency Council's Research and Strategic Studies Center in Tehran February 27, 2008.

Credit: Reuters/Stringer

By Yeganeh Torbati and Zahra Hosseinian

DUBAI | Fri May 31, 2013 5:10pm EDT

DUBAI (Reuters) - Iran's first debate between candidates for the presidency degenerated into acrimony live on state television on Friday when, instead of discussing the economy, some of the hopefuls resorted to sniping over the questions and format.

The testy exchange between the moderator and reformist Mohammad Reza Aref, moderate Hassan Rohani, and conservative Mohsen Rezaie was the subject of wide ridicule by Iranian viewers who had tuned in for the four-hour discussion.

They were among eight candidates for the June 14 vote presenting their ideas on an economy buffeted by international sanctions over Iran's disputed nuclear program, rising unemployment, and inflation running at over 30 percent, according to official figures.

The series of three debates are central to trying to build public interest in the presidential vote, the first since 2009, which unleashed months of protests by those who said Mahmoud Ahmadinejad's win was fraudulent, demonstrations that were eventually crushed by security forces.

The economy is likely to weigh heavily on Iranians' minds when they head to the polls. Although most major state policies, such as the nuclear issue, are ultimately decided by Supreme Leader Ayatollah Ali Khamenei, Iranian presidents traditionally have greater sway in enacting their economic agendas.

The debate's first half allowed the eight to give a three minute answer, with a 90 second response from the other seven. Then moderator Morteza Heydari asked them an economic question that could only be answered yes, no or with an abstention.

One question was: If you want to select an official for your administration, what is their most important quality? Candidates could choose between a lack of corruption, experience, expertise or prudence.

They were also presented with pictures, such as an agricultural scene, a market, or a cargo ship, and asked to say whatever came to mind.

"INSULTING"

The three, seated with their colleagues in a line of desks in front of a backdrop of flowers and rolling woodland, said the format was farcical and did not allow them to present their plans to the country or engage in dialogue with each other.

Several times they simply refused to answer the question.

"In honor of the dear people of my country I will sit here, but I will answer none of your test questions," said Aref, gesticulating with his pen towards the moderator standing in front of an image of Khamenei.

"I am a patient person and I can tolerate a lot," added Rezaie. "With these repetitive, discontinuous, short, one-to-three minute answers, the people are being harmed and the eight people up here are being insulted."

Rohani, the most prominent moderate candidate in an election dominated by hardliners, said: "People will see this style of debate as insulting."

Nuclear negotiator Saeed Jalili; foreign policy adviser to Khamenei Ali Akbar Velayati and Tehran mayor Mohammad Baqer Qalibaf are considered the frontrunners and mostly kept quiet.

The slate of candidates, vetted last week by Iran's Guardian Council, is dominated by conservatives and hardliners seen as close to Khamenei. The council banned two independent contenders, moderate former president Akbar Hashemi Rafsanjani and Ahmadinejad ally Esfandiar Rahim Mashaie.

RIDICULE

Iran's clerical rulers are keen to secure a high turnout that would underpin their legitimacy. They are also wary of a repeat of 2009's protests, and the debate was a rare unscripted moment in an election authorities hope to tightly control.

Iranians spoken to by Reuters were dismissive of the way the debate played out.

"Compared to the debates four years ago, where each candidate could discuss issues in more detail, this one was really bad," said Neda, 27, in Tehran. "They didn't have enough time to go into any details. I know nothing more about them now than before this debate."

"It was not properly planned at all. Candidates didn't have time to go into details and therefore their answers were very vague," said shopworker Ali, 27, by phone from Tehran.

Neither would give their surnames for fear of reprisals for criticizing the government and speaking to a foreign reporter.

The presidential debates in 2009 drew similar attention, although then it was more for the personal insults.

In one live head-to head debate, reformist Mirhossein Mousavi sharply attacked Ahmadinejad, accusing him of enacting an "adventurist" foreign policy marked by "extremism and superficiality". Ahmadinejad accused Mousavi's wife of entering graduate school without taking the required exams.

Yasmin Alem, a U.S.-based expert on Iran's electoral system, said Friday's debate showed that Iran's leadership had tried to introduce a less explosive format.

"After what came to pass in the heated 2009 debates, the leadership in Tehran has decided to dumb down the process to a point where it now borders on ridicule," she said.

In the more orderly first half, the candidates agreed Iran's economy was in crisis and there was a need for greater support for domestic production, though they offered few specifics.

They were also nearly unanimous in criticizing Ahmadinejad's economic management, particularly his government's method of implementing ambitious subsidy reforms, which they said had raised inflation.

Several spoke of the need for more resistance to sanctions. Velayati said changing foreign policies would have an impact, although he did not say what he would change.

Qalibaf, who enjoys a reputation as a pragmatist, gave some of the most specific policy plans.

His government would increase the independence of the central bank, attempt to grow Iran's service economy, for instance in the information technology sector, and refrain from hasty decisions that create instability, he said.

(Editing by Alison Williams)

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Reuters: Most Read Articles: U.S. woman, British man killed in Syria ambush : state media

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U.S. woman, British man killed in Syria ambush : state media
May 31st 2013, 18:25

A still image taken from video broadcasted by Syrian TV on May 30, 2013, shows a U.S. passport that Syrian TV say belongs to 33-year-old Michigan woman Nicole Mansfield, it claims was killed in Syria while fighting with opposition forces against the government of Syrian President Bashar al-Assad in the country's civil war, her family said. Video broadcasted May 30, 2013. REUTERS/Syrian TV via Reuters TV

1 of 2. A still image taken from video broadcasted by Syrian TV on May 30, 2013, shows a U.S. passport that Syrian TV say belongs to 33-year-old Michigan woman Nicole Mansfield, it claims was killed in Syria while fighting with opposition forces against the government of Syrian President Bashar al-Assad in the country's civil war, her family said. Video broadcasted May 30, 2013.

Credit: Reuters/Syrian TV via Reuters TV

Fri May 31, 2013 2:25pm EDT

(Reuters) - Forces loyal to Syrian President Bashar al-Assad killed a 33-year-old Michigan woman who had converted to Islam, and a British man during an ambush in a northwestern province, Syrian state media said on Friday.

Nicole Mansfield's aunt, Monica Mansfield Speelman, told Reuters on Thursday the FBI had informed her that afternoon of the death of her niece, who was from Flint, Michigan.

Syrian state television aired footage showing the body of the woman, who was dressed in a full black hijab. The footage also showed her American ID.

State media said the woman and two others apparently were killed in the ambush by Syrian government forces on an opposition mission north of Idlib. Syrian media also showed the passport of a British man, Ali alManasfi, 22. European security source confirmed that report to Reuters.

British daily The Guardian quoted a Syrian army officer as saying it was believed a third person killed was Canadian because his cell phone listed numerous calls to Canada. It was not clear when the ambush occurred.

Syrian state media said an initial investigation showed Mansfield and alManasfi were part of a mission to explore a nearby checkpoint. Government forces found weapons with the group and several documents, including a sketch of a security building, plus weapons, state media reported.

It was not clear what Mansfield and alManasfi were doing with the rebels, or which rebel group they were with.

Speelman said on Thursday she did not have details of how her niece had died.

"I'm just devastated," she said. "Evidently, she was fighting with opposition forces."

Speelman said Mansfield, a single mother of an 18-year-old daughter, had converted to Islam about five years ago. She said she did not know when her niece, who worked at a group home, had traveled to Syria.

"I didn't think she would stoop that low to go over there and try to harm anybody," Speelman said of her niece.

Media reports quoted a post from the Facebook page of Mansfield's daughter, Triana Lynn Mansfield, as saying: "I love you forever and always Mom. ... I'll stay strong. And you will never be forgotten."

Nicole Mansfield, who had attended Baptist churches in the area, began wearing a hijab about four or five years ago, her grandmother, Carole Mansfield, told media website MLive.com

"I told her the first time I saw her in her garb that she was looking a rattlesnake in the eye," she was quoted as saying.

The conflict in Syria has killed more than 80,000 people since March 2011.

(Reporting by Mariam Karouny in Beirut, Mark Hosenball in Washington and Brendan O'Brien in Milwaukee; Writing by Nick Carey; Editing by Vicki Allen)

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Reuters: Most Read Articles: Moscow threatens to speed missiles to Syria but also offers to delay

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Moscow threatens to speed missiles to Syria but also offers to delay
May 31st 2013, 16:53

A rocket launcher belonging to forces of Syrian President Bashar al Assad is seen in Arjoun village near Qusair town May 30, 2013. REUTERS/ Rami Bleible

A rocket launcher belonging to forces of Syrian President Bashar al Assad is seen in Arjoun village near Qusair town May 30, 2013.

Credit: Reuters/ Rami Bleible

By Thomas Grove

MOSCOW | Fri May 31, 2013 7:08am EDT

MOSCOW (Reuters) - Russian S-300 anti-aircraft missiles will probably arrive in Syria only after several months, but more Israeli air strikes or the creation of a no-fly zone would speed up delivery, a Russian arms industry source said.

Russia, an ally of Syrian President Bashar al-Assad, said it would fulfil an order for the long-range surface-to-air missiles to Syria as a deterrent against foreign military intervention.

And in a sign that Moscow Would fulfill other deals, the head of aircraft maker MiG was quoted as saying he was counting on providing Syria with at least 10 MiG-29 fighter planes.

"Regarding the deliveries of the S-300, they can begin no earlier than the autumn," the arms industry source told Interfax on Friday, speaking on the condition of anonymity.

"Technically it's possible, but much will depend on how the situation develops in the region and the position of Western countries."

Without naming Israel specifically, Interfax paraphrased the source as saying: "Air attacks on Syria from the side of a neighboring government or the introduction of a so-called no-fly zone above Syria may serve as a pretext for speeding up the deliveries of the S-300."

Yuri Ushakov, President Vladimir Putin's aide on foreign policy, said contracts must be met but that Russia does not supply arms "that would be subject to international sanctions".

RIA news agency quoted the head of MiG as saying that he was discussing terms for the fighter planes with a Syrian delegation in Moscow now. It did not say when delivery was expected.

Russia's S-300s can intercept manned aircraft and guided missiles and Western experts say they would enhance Assad's Russian-supplied arsenal of short-range Pantsir missiles and medium-range BUK missile systems.

Russian daily Vedomosti has reported that Assad bought four units of the modernized S-300PMU-2 system for nearly $1 billion.

A Defence Ministry source said Assad would use his other air defence systems to guard the S-300, giving him "pretty good" air defences.

Russia has been Assad's most powerful diplomatic ally in a conflict that has killed more than 80,000 people since March, 2011. Along with China, it has vetoed three U.N. Security Council resolutions aimed at pressuring Assad to end violence.

The Defence Ministry source said Syrian troops would need to be trained on the S-300 in Russia's southern province of Astrakhan.

Former Russian Air Force Commander General Anatoly Kornukov told Interfax that such training would need a minimum of two to four weeks depending on the diligence of the recipients.

The S-300s themselves would be ready for use "within five minutes after the delivery", he said.

The S-300 can track targets up to 300 km (190 miles) away and can hit at a range of up to 200 km, sparking Israeli fears that Assad's reach could extend well into the Jewish state and threaten flights over its main commercial airport near Tel Aviv.

A Western intelligence source has said that Israel has carried out strikes in Syria against what Western and Israeli officials say were weapons headed for Hezbollah militants.

(Reporting by Thomas Grove and Maria Tsvetkova, Editing by Elizabeth Piper and Alistair Lyon)

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Reuters: Most Read Articles: Frankfurt 'Blockupy' protesters target ECB, banks, airport

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Frankfurt 'Blockupy' protesters target ECB, banks, airport
May 31st 2013, 14:58

1 of 3. Riot police stand near the euro sign in front of the European Central Bank (ECB) headquarters during an anti-capitalist ''Blockupy'' demonstration in Frankfurt May 31, 2013.

Credit: Reuters/Kai Pfaffenbach

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Reuters: Most Read Articles: Turkish police tear gas anti-government protesters

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Turkish police tear gas anti-government protesters
May 31st 2013, 15:00

A Turkish riot policeman uses tear gas as a demonstrator holds a banner which reads, ''Chemical Tayyip'', referring to Prime Minister Tayyip Erdogan, during a protest against the destruction of trees in a park brought about by a pedestrian project, in Taksim Square in central Istanbul May 31, 2013. REUTERS/Osman Orsal

A Turkish riot policeman uses tear gas as a demonstrator holds a banner which reads, ''Chemical Tayyip'', referring to Prime Minister Tayyip Erdogan, during a protest against the destruction of trees in a park brought about by a pedestrian project, in Taksim Square in central Istanbul May 31, 2013.

Credit: Reuters/Osman Orsal

By Murad Sezer and Osman Orsal

ISTANBUL | Fri May 31, 2013 9:37am EDT

ISTANBUL (Reuters) - Turkish police fired tear gas and water cannon on Friday at protesters occupying a park in central Istanbul, injuring scores in the latest violent crackdown on anti-government demonstrations.

The protest at Gezi Park started late on Monday after developers tore up trees but has widened into a broader demonstration against Prime Minister Tayyip Erdogan's Islamist-rooted Justice and Development Party (AKP).

Riot police recently clashed with tens of thousands of May Day protesters in Istanbul. There have also been protests against the government's stance on the conflict in neighboring Syria, a recent tightening of restrictions on alcohol sales and warnings against public displays of affection.

Police staged a dawn raid on demonstrators who had been camping for days in Gezi Park in anger at plans to build a shopping mall, and clouds of tear gas rose around the area in Taksim Square that has long been a venue for political protest.

"We do not have a government, we have Tayyip Erdogan...Even AK Party supporters are saying they have lost their mind, they are not listening to us," said Koray Caliskan, a political scientist at Bosphorus University who attended the protest. "This is the beginning of a summer of discontent."

The Istanbul Medical Chamber, a doctors' association, said at least 100 people sustained minor injuries on Friday, some of them when a wall they were climbing collapsed as they tried to flee clouds of tear gas.

Amnesty International said it was concerned by what it described as "the use of excessive force" by the police against what had started out as a peaceful protest.

Erdogan has overseen a transformation in Turkey during his decade in power, turning its economy from crisis-prone into Europe's fastest-growing. Per capita income has tripled in nominal terms since his party rose to power.

He remains by far Turkey's most popular politician, and is widely viewed as its most powerful leader since Mustafa Kemal Ataturk founded the modern secular republic on the ashes of the Ottoman Empire 90 years ago.

The unrest has been far from the sort of mass demonstrations seen in other parts of the Middle East or even parts of Europe in recent years, but it reflects growing opposition concern about Erdogan's authoritarianism.

DEFIANCE

Hundreds of military officers have been jailed on charges of plotting a coup against Erdogan in recent years; others including academics, journalists and politicians face trial on similar accusations.

Erdogan has made no secret of his ambition to run for the presidency in elections next year when his term as prime minister ends, exacerbating opposition concerns.

"These people will not bow down to you" read one banner at the Gezi Park protest, alongside a cartoon of Erdogan wearing an Ottoman emperor's turban.

Postings on social media including Twitter, where "Occupy Gezi" - a reference to protests in New York and London last year - was a top-trending hashtag, and Facebook said similar demonstrations were planned for the next few days in other Turkish cities including Ankara, Izmir, Adana and Bursa.

"Kiss protests" - in which demonstrators are urged to lock lips - had already been planned for Istanbul and Ankara this weekend after subway officials were reported to have admonished a couple for kissing in public a week ago.

Erdogan is pushing ahead with a slew of multi-billion dollar projects which he sees as embodying Turkey's emergence as a major power. They include a shipping canal designed to rival Panama or Suez, a giant mosque and a third Istanbul airport billed to be one of the world's biggest.

Speaking just a few miles from Gezi Park at the launch on Wednesday of construction of a third bridge linking Istanbul's European and Asian shores, Erdogan vowed to pursue plans to redevelop Taksim Square.

Architects, leftist political parties, academics, city planners and others have long opposed the plans, saying they lacked consultation with civic groups and would remove one of central Istanbul's few green spaces.

(Additional reporting by Ece Toksabay and Ayla Jean Yackley; Writing by Nick Tattersall; Editing by Mark Heinrich)

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Reuters: Most Read Articles: Court allows rule designed to find bulk rifle sales

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Court allows rule designed to find bulk rifle sales
May 31st 2013, 15:23

U.S. President Barack Obama walks on the South Lawn of the White House upon his return to Washington from Chicago May 30, 2013. REUTERS/Yuri Gripas

U.S. President Barack Obama walks on the South Lawn of the White House upon his return to Washington from Chicago May 30, 2013.

Credit: Reuters/Yuri Gripas

WASHINGTON | Fri May 31, 2013 11:23am EDT

WASHINGTON (Reuters) - A federal appeals court on Friday upheld a gun reporting rule that the Obama administration adopted in 2011 to try to detect bulk sales of semi-automatic rifles to Mexican drug gangs.

A unanimous panel of the U.S. Court of Appeals for the District of Columbia Circuit said the administration acted within its authority to adopt the rule, which affects firearms sellers in states bordering Mexico.

The Gun Control Act of 1968 "unambiguously authorizes" the rule, and it is unrealistic to argue, as gun retailers and manufacturers did, that the rule is too burdensome, Judge Karen Henderson wrote for the panel of three judges.

The rule requires stores in Arizona, California, New Mexico and Texas to notify federal law enforcement when someone buys two or more of a specific type of firearm within five business days.

The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) adopted the notice requirement amid soaring drug violence in Mexico, carried out in part using firearms that originated in the United States.

Retailers and gunmakers, including the National Shooting Sports Foundation, a trade group based in Newtown, Connecticut, scene of the December school massacre, sued to block the rule.

With the failure of new gun control proposals in Congress since the Newtown shooting, which killed 20 elementary school children, the rule stands as one of the few firearms measures put in place by President Barack Obama's administration.

A spokesman for the National Shooting Sports Foundation did not immediately respond to a request for comment. An ATF spokeswoman also did not immediately respond.

The measure applies only to high-caliber, semi-automatic rifles that can use a detachable magazine.

Thousands of firearms are believed to cross the border illegally into Mexico each year, and semi-automatic rifles with detachable magazines are a favorite of drug traffickers, the ATF said in a report last year.

Mexican authorities recovered more than 68,000 U.S.-sourced guns from 2007 to 2011, the ATF said.

The case is National Shooting Sports Foundation Inc, et al, v. B. Todd Jones, U.S. Court of Appeals for the D.C. Circuit, No. 12-5009.

(Reporting by David Ingram; Editing by Doina Chiacu)

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Reuters: Most Read Articles: Data signal soft economy but not abrupt slowdown

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Data signal soft economy but not abrupt slowdown
May 31st 2013, 15:25

A woman goes down an escalator at a Toys R Us store in New York, December 14, 2010. REUTERS/Shannon Stapleton

A woman goes down an escalator at a Toys R Us store in New York, December 14, 2010.

Credit: Reuters/Shannon Stapleton

By Lucia Mutikani

WASHINGTON | Fri May 31, 2013 9:00am EDT

WASHINGTON (Reuters) - Consumer spending fell in April for the first time in almost a year and inflation pressures were subdued, pointing to a slowdown in economic activity, which should allow the Federal Reserve to maintain its monetary stimulus for a while.

The Commerce Department said on Friday consumer spending fell 0.2 percent, the weakest reading since May last year, after edging up 0.1 percent in March. Economists had expected a 0.1 percent gain.

Consumer spending, which accounts for about 70 percent of U.S. economic activity, was held down by weak demand for utilities and a drop in receipts at gasoline stations on the back of a fall in gasoline prices at the pump.

When adjusted for inflation, spending nudged up 0.1 percent last month after rising 0.2 percent. The sixth straight month of gains in the so-called real consumer spending came as a key inflation gauge fell in April by the most since July last year, pushed down by declining gasoline prices.

That modest rise suggested that consumer spending would slow in the second quarter after accelerating at a 3.4 percent annual pace in the first three months of the year.

"Consumer spending is on a very modest track because income is not growing very much. Wage gain is very low even though job growth has picked up," said Kevin Logan, chief U.S. economist at HSBC Securities in New York.

U.S. Treasuries prices extended gains after the data, while stock index futures were lower in morning trade.

The economy has been hit by higher taxes and deep government spending cuts as the government tries to slash its budget deficit.

It grew at a 2.4 percent pace in the January-March period, but is expected to slow to a rate of between 1.5 percent and 2.2 percent this quarter because of the government budget cuts, which are already putting a strain on manufacturing.

Lack of income growth as job gains remain moderate is weighing on domestic demand. Last month, income was flat and the saving rate was unchanged at 2.5 percent.

The weak demand tone was underscored by very benign inflation pressures in April.

A price index for consumer spending fell 0.3 percent last month after dipping 0.1 percent in March. A core reading that strips out food and energy costs was flat after rising 0.1 percent the prior month.

Over the past 12 months, inflation has risen just 0.7 percent, the smallest gain since October 2009 and pushing further below the Federal Reserve's 2 percent target. The index had increased 1.0 percent in the period through March.

Core prices were up 1.1 percent, the smallest rise since March 2011 and slowing from 1.2 percent in March.

The weak spending and the lack of inflation pressures should dampen market speculation the U.S. central bank might start scaling back monetary easing later this year.

Fed Chairman Ben Bernanke said last week a decision to start tapering the $85 billion in bonds the Fed is buying each month could come at one of its "next few meetings" if the economy appeared set to maintain momentum.

"Certainly, the inflation data suggest the Fed at the moment should not be overly concerned about inflation. That gives them plenty of scope to continue QE," said Logan.

(Reporting By Lucia Mutikani; Editing by Neil Stempleman)

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Reuters: Most Read Articles: Record unemployment, low inflation underline Europe's pain

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Record unemployment, low inflation underline Europe's pain
May 31st 2013, 17:16

Job seekers line up as they wait for an interview during the 8th job forum dedicated to recruiting in Nice February 14, 2013. REUTERS/Eric Gaillard

Job seekers line up as they wait for an interview during the 8th job forum dedicated to recruiting in Nice February 14, 2013.

Credit: Reuters/Eric Gaillard

By Robin Emmott and Martin Santa

BRUSSELS | Fri May 31, 2013 7:18am EDT

BRUSSELS (Reuters) - Unemployment has reached a new high in the euro zone and inflation remains well below the European Central Bank's target, underscoring just how severe a challenge EU leaders face to revive the bloc's sickly economy.

Joblessness in the 17-nation currency area rose to 12.2 percent in April, statistics agency Eurostat said on Friday, marking a new record since the data series began in 1995.

With the euro zone also in its longest recession since its creation in 1999, consumer price inflation was far below the ECB's target of just below 2 percent, coming in at 1.4 percent in May, slightly above April's 1.2 percent rate.

That rise may quieten concerns about deflation, but the deepening unemployment crisis is a threat to the social fabric of the euro zone, with almost two-thirds of young Greeks unable to find work exemplifying southern Europe's threat of creating a 'lost generation'.

Economists and policy makers have expressed concern that the greatest threat to the unity of the euro zone is now social breakdown from the crisis, rather than market-driven factors.

In France, Europe's second largest economy, the number of jobless rose to a record in April, while in Italy, the unemployment rate hit its highest level in at least 36 years, with 40 percent of young people out of work.

Some economists expect the ECB, which meets on June 6, to act to revive the economy and go beyond another interest rate cut to consider a U.S.-style money printing program known as quantitative easing.

"We do not expect a strong recovery in the euro zone," said Nick Matthews, a senior economist at Nomura International in London. "It puts pressure on the ECB to deliver even more conventional and non conventional measures."

In the past, the euro zone has needed economic growth of around 1.5 percent to create new jobs, according to Carsten Brzeski, an economist at ING. With the Organisation for Economic Cooperation and Development forecasting this week that the euro zone economy would contract by 0.6 percent this year, unemployment is set to worsen long before it turns around.

"We do not see a stabilization in unemployment before the middle of next year," said Frederik Ducrozet, an economist at Economist at Credit Agricole in Paris. "The picture in France is still deteriorating."

5.6 MILLION YOUNG JOBLESS

ECB President Mario Draghi, whose bold decision-making helped protect the euro zone from break-up last year with a plan to buy the bonds of governments in trouble, has so far preferred to leave the onus on euro zone governments to reform.

A majority of economists polled by Reuters do not expect the ECB to cut its deposit or main refinancing rates in the coming months, although the OECD this week called for the bank to consider quantitative easing.

The Commission, the EU's executive, told governments this week they must focus on reforms to outdated labor and pension systems to regain Europe's lost business dynamism, a move to shift focus away from debilitating budget cuts towards growth.

EU leaders meeting at the end of June in Brussels are expected to put the problem of joblessness at the forefront of their summit.

European Council President Herman Van Rompuy, who chairs the meetings, said last week youth unemployment was one of the most pressing issues for the 27-nation European Union as a whole.

Ministers from France, Italy and Germany, meeting in Paris this week, called on their counterparts to help tackle youth unemployment, with German Finance Minister Wolfgang Schaeuble describing it as a "battle for Europe's unity".

In April, 5.6 million people under 25 were unemployed in the European Union, with 3.6 million of those in the euro zone.

Even if governments take on unions and vested interests to enact reforms, they will take time to produce benefits.

The impact of the euro zone's debt and banking crises has been sapping confidence from companies and households.

Private consumption saved Germany from slipping into recession in the first three months of this year, but retail sales still fell unexpectedly in April because of the cold European winter.

Meanwhile, French consumer spending dropped again in February, falling by 0.2 percent after contracting in January. French household purchasing power contracted in 2012 for the first time since 1984.

(Reporting by Robin Emmott and Martin Santa; editing by Luke Baker and Jeremy Gaunt)

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Reuters: Most Read Articles: U.S. Secret Service says threatening letter sent to Obama

Reuters: Most Read Articles
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
U.S. Secret Service says threatening letter sent to Obama
May 31st 2013, 02:15

U.S. President Barack Obama delivers remarks on the rebuilding of the Jersey Shore following Hurricane Sandy, from Asbury Park in New Jersey, May 28, 2013.

Credit: Reuters/Jason Reed

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Reuters: Most Read Articles: Michigan woman dies in Syria fighting for opposition: family

Reuters: Most Read Articles
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Michigan woman dies in Syria fighting for opposition: family
May 31st 2013, 06:05

Thu May 30, 2013 11:31pm EDT

(Reuters) - A 33-year-old Michigan woman and convert to Islam has been killed in Syria while fighting with opposition forces against the government of President Bashar al-Assad in the country's civil war, her family said on Thursday.

The woman's aunt told Reuters that the FBI had informed her on Thursday afternoon of the death of her niece, Nicole Mansfield of Flint, but said she did not have the details of how she died.

"I'm just devastated," said the aunt, Monica Mansfield Speelman. "Evidently, she was fighting with opposition forces."

Speelman said Mansfield, a single mother of an 18-year-old daughter, had converted to Islam about five years ago but that she did not know when her niece had traveled to Syria.

"I didn't think she would stoop that low to go over there and try to harm anybody," Speelman said of her niece, who she said had worked at a group home.

A U.S. State Department official, speaking on condition of anonymity, had earlier told Reuters that Washington was working via the Czech Republic mission in Syria to get more information.

"As we do in all such cases, we are working through our Czech protecting power in Syria to obtain more information, and we appreciate the efforts of the Czech mission on behalf of our citizens," the official said. He added that U.S. authorities could not comment further "because of privacy considerations."

(Reporting by Brendan O'Brien in Milwaukee and Mark Hosenball in Washington; Editing by Cynthia Johnston and Eric Beech)

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Reuters: Most Read Articles: New Yorker wins U.S. spelling bee with 'knaidel'

Reuters: Most Read Articles
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New Yorker wins U.S. spelling bee with 'knaidel'
May 31st 2013, 03:32

Arvind Mahankali of New York holds his trophy after winning the National Spelling Bee at National Harbor in Maryland May 30, 2013. REUTERS/Kevin Lamarque

1 of 11. Arvind Mahankali of New York holds his trophy after winning the National Spelling Bee at National Harbor in Maryland May 30, 2013.

Credit: Reuters/Kevin Lamarque

By Ian Simpson

OXON HILL, Maryland | Thu May 30, 2013 11:32pm EDT

OXON HILL, Maryland (Reuters) - Arvind Mahankali, a 13-year-old boy from Bayside Hills, New York, won the Scripps National Spelling Bee on Thursday by correctly spelling "knaidel," a kind of dumpling.

Mahankali, a student at Nathaniel Hawthorne Middle School, had finished third in the contest twice before, each time stumbling on German words. This year, the packed auditorium erupted in a standing ovation when he nailed "knaidel," which comes from German-derived Yiddish.

"I thought, 'The German curse had turned into a German blessing,'" he said of his victory. "It means I can retire on a good note."

Mahankali, who wants to become a quantum physicist, defeated 10 other finalists. Asked what he planned to do during his summer vacation, he said he planned to study physics.

He said he would use the $30,000 cash prize for college.

The second-place finisher was Pranav Sivakumar, 13, of Tower Lakes, New York, who attends Barrington Middle School. Sriram Hatwar, 13, from Painted Post, New York, and a student at the Alternative School for Math & Science, finished third.

Finalists were eliminated on such words as "pathognomonic," a disease's characteristics, "doryline," a kind of ant, "melocoton," a grafted peach, and "kaburi," a land crab.

Contestants bit lips and clutched hands as they spelled before a crowded ballroom. All asked for definitions, origins, and a sentence using the word. Most wrote the word on their hands or forearms with a finger before spelling them into a microphone.

Asked by pronouncer Jacques Bailly to spell "temenos," Vismaya Kharkar, 14, from Bountiful, Utah, covered her face with her hands and rocked her head forward and backward.

Then she wrote it into her hand and, after spelling it correctly, flashed a big smile and high-fived other contestants. But Kharkar went out on "paryphodrome," exclaiming "Oh, no!" when the bell sounded indicating a misspelling.

Amber Born, a 14-year-old from Marblehead, Massachusetts, who is home schooled, reacted with raised eyebrows when given "lansquenet," a kind of card game. "That is cause for panic," she said, then slowly spelled it correctly.

Mahankali won a contest that involved 11 million young spellers at some point. A total of 281 aged 8 to 14 from all 50 U.S. states, the District of Columbia and foreign countries took part in the Bee held outside Washington.

For the first time since it started in 1927, the contest included tests on vocabulary. Organizers said the new quizzes were part of the Bee's commitment to deepening knowledge of the English language.

Since 1999, 11 of the 15 winners have been of South Asian origin, including the last six.

(Editing by Scott Malone, Alden Bentley and Christopher Wilson)

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Reuters: Most Read Articles: Asian shares, dollar pressured as Nikkei outperforms

Reuters: Most Read Articles
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Asian shares, dollar pressured as Nikkei outperforms
May 31st 2013, 06:06

Employees of the Tokyo Stock Exchange (TSE) work at the bourse in Tokyo May 20, 2013. REUTERS/Toru Hanai

1 of 8. Employees of the Tokyo Stock Exchange (TSE) work at the bourse in Tokyo May 20, 2013.

Credit: Reuters/Toru Hanai

By Chikako Mogi

TOKYO | Thu May 30, 2013 11:54pm EDT

TOKYO (Reuters) - Asian shares recovered but the dollar stayed pressured on Friday after lackluster U.S. data eased concerns about an early end to the Federal Reserve's strong stimulus program which has sharpened investor appetite for risk.

Global markets rose overnight as U.S. GDP grew a slightly less-than-expected annualized 2.4 percent in the first quarter, new jobless benefits claims rose in the latest week, and pending home sales grew far less than expected in April, pointing to a fragile economy which still requires support from monetary policy.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS steadied from the previous day's drop to a six-week low. With a fall of about 4 percent so far in May, the index was set for its worst monthly performance in a year.

Australian shares .AXJO inched up 0.1 percent after touching their lowest in nearly two months the previous session while South Korean shares rose 0.3 percent.

"The market is slowly gathering upside momentum, helped by a view that the likelihood of the U.S. Federal Reserve abruptly pulling its stimulus program is small," said Han Beam-ho, a market analyst at Sinha Investment Corp, of Seoul shares.

Bourses in Shanghai, Hong Kong, Jakarta and Manila Philippines were lower.

Japanese equities also staged a rebound after tumbling more than 5 percent to a five-week low on Thursday as exporters took a hit from the dollar's fall against the yen.

The Nikkei stock average .N225 gained 1.6 percent after sliding sharply last week from a 5-1/2-year peak.

Analysts said the recent correction presents an opportunity for investors to re-enter the market at better levels.

"It's not a bear market, it's just a correction," said Kenichi Hirano, a strategist at Tachibana Securities. "The index has broken below its 25-day moving average, and it's a comfortable level to buy back."

The dollar fell to a three-week low of 100.46 yen on Thursday and its index .DXY, measured against a basket of six key currencies, also touched a three-week low, having hit its highest since July 2010 of 84.498 just a week ago. The dollar index was stable on Friday and the dollar rose 0.3 percent against the yen to 101.02.

CORRECTION FROM OVERSHOOT

The Nikkei had raced ahead and overshot even relative to the rapid rate of yen selling, which was inspired by expectations for bold reflationary measures by the Bank of Japan, so corrections to Japanese stocks may be steeper than the change in currencies. In the past week, the Nikkei shed 15 percent compared to the dollar's 3 percent drop against the yen.

"Given the fact that markets embraced a sliding yen as a sign that central bank intervention continued to offer a sizable tailwind for equities, we have to raise the red flag on what if it doesn't - at least until it does again?," said Andrew Wilkinson, chief economic strategist at Miller Tabak & Co in New York, in a note to clients.

"We must acknowledge that there are several headwinds brewing that could trip up investors."

The heightening volatility in Japanese equities and the yen had come hand-in-hand with the surge in benchmark 10-year Japanese government bond yields to a one-year high.

The jump in JGB yields was partly in line with rising U.S. yields but it also underscored the risk of putting too much confidence in the BOJ's aggressive bond buying plan alone to contain increases in Japanese yields, said Hideo Kumano, chief economist at Dai-Ichi Life Research Institute.

"The Japanese government's growth strategy plan due to be unveiled early next month will play a significant role in determining market trends going forward," Kumano said.

The euro recovered the $1.30 level and reached a three-week high on Thursday, encouraged by the bigger-than-expected improvement in the European Commission's economic confidence survey, showing a pick-up in morale in the euro zone's five largest economies.

Commodities remained generally top-heavy.

"Commodities tend to move in tandem with the dollar, so if speculation about an eventual shift in the Fed's stance pushes U.S. yields higher and the dollar rises, that would generally cap commodities prices," said Bob Takai, general manager of Sumitomo Corp's energy division in Tokyo.

U.S. crude futures were steady around $93.65 a barrel and Brent was up 0.1 percent to $102.28.

Spot gold was up 0.3 percent to $1,418.11 an ounce, helped by the dollar's soft tone.

(Additional reporting by Jungyoun Park in Seoul and Ayai Tomisawa in Tokyo; Editing by Eric Meijer)

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Reuters: Most Read Articles: Hunters for Amelia Earhart plane wreckage excited by sonar image

Reuters: Most Read Articles
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Hunters for Amelia Earhart plane wreckage excited by sonar image
May 31st 2013, 02:06

The reef at Nikumaroro, Republic of Kiribati, is pictured in this October 1937 photograph released on March 21, 2012. REUTERS/TIGHAR/Eric Bevington/TIGHAR/Handout (

The reef at Nikumaroro, Republic of Kiribati, is pictured in this October 1937 photograph released on March 21, 2012.

Credit: Reuters/TIGHAR/Eric Bevington/TIGHAR/Handout (

By Malia Mattoch McManus

HONOLULU | Thu May 30, 2013 10:06pm EDT

HONOLULU (Reuters) - A team of researchers seeking to solve the mystery of aviator Amelia Earhart's 1937 disappearance say a sonar image taken from just beyond the shore of a remote Pacific island could be a piece of wreckage from her plane.

A forensic imaging specialist for a research team that conducted a $2.2 million expedition to the island of Nikumaroro searching for Earhart's plane last year said the image could represent a wing or part of the fuselage from Earhart's aircraft.

Earhart and her navigator, Fred Noonan, departed Papua New Guinea on July 2, 1937, during her quest to circumnavigate the globe along an equatorial route. But they disappeared that day and emergency searches did not locate them.

The International Group for Historic Aircraft Recovery (TIGHAR) said it needs to send an expedition back to Nikumaroro, in the Republic of Kiribati, to verify that the image of something apparently lodged below an undersea cliff represents a piece of Earhart's plane.

TIGHAR released images last year from the July expedition to Nikumaroro, 800 miles southwest of Honolulu, that it said could be a field of man-made debris with remnants of Earhart's plane.

The latest sonar image was spotted in March by a member of TIGHAR's online community, said a post on the group's website.

"It looks unlike anything else in the sonar data, it's the right size, it's the right shape and it's in the right place," a statement on the TIGHAR website said this week.

"The resolution on the sonar does not suffice to conclusively determine what this is," Jeff Glickman, the forensic imaging specialist for TIGHAR, said in a phone interview.

"It is unique, and suggestive of being man made. It is in the right place, but whether it's a fuselage or a wing is difficult to say," Glickman said.

He added that "there is always the possibility" the image is of part of a boat that had nothing to do with Earhart.

Richard Gillespie, executive director of TIGHAR, has theorized that Earhart's plane was washed off the reef by surf after Earhart and her navigator landed on Nikumaroro.

Gillespie has said circumstantial evidence collected on previous trips to Nikumaroro makes a strong case for his theory that Earhart ended her days as a castaway, ultimately perishing in the island's harsh conditions.

Items that have been discovered include what appears to be a jar of a once-popular brand of anti-freckle cream from the 1930s, a clothing zipper from the same decade, a bone-handled pocket knife of the type Earhart carried, and piles of fish and bird bones indicative of a Westerner trying to survive.

TIGHAR did not say on its website when the group expects to be able to return to the island.

(Reporting by Malia Mattoch McManus; Writing by Alex Dobuzinskis; Editing by Cynthia Johnston and Eric Beech)

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