Consumer spending rises, but saving slows

























WASHINGTON (Reuters) – Consumer spending rose solidly in September as households stepped up purchases on automobiles and a range of other goods, but the increase came at the expense of savings.


The Commerce Department said on Monday consumer spending rose 0.8 percent, the largest increase since February, after an unrevised 0.5 percent gain in August.





















Economists polled by Reuters had expected spending, which accounts for about 70 percent of U.S. economic activity to increase 0.6 percent in September.


When adjusted for inflation, consumer spending increased 0.4 percent after edging up 0.1 percent the prior month.


Financial markets showed little reaction to the data. U.S. stock markets will be closed on Monday, and possibly on Tuesday, as a mammoth storm threatens the U.S. East Coast.


The figures were incorporated in last Friday’s third-quarter gross domestic product report. Consumer spending increased at a 2 percent annual pace in the third quarter after rising at a 1.5 percent pace the prior period.


That helped to lift economic growth at a 2 percent rate during the quarter, an acceleration from the April-June period’s 1.3 percent pace.


The spurt in spending as the quarter ended, which was concentrated in long-lasting goods such as autos and Apple Inc’s iPhone 5, suggests some of the momentum could carry through the remainder of the year. However, challenges remain.


While overall income last month grew 0.4 percent, the most since March and a step-up from August’s 0.1 percent, the amount of money at the disposal of households after accounting for inflation and taxes was flat.


That meant households cut back on saving to fund purchases. This and sluggish job growth could hamper spending over the long-term. The saving rate slipped to 3.3 percent last month, the lowest since November 2011, from 3.7 percent the prior month.


“Households were only able to boost consumption in the third quarter by dipping into their savings,” said Paul Dales, senior U.S. economist at Capital Economics. “Faced with the prospect of major tax hikes in the New Year, however, they will soon become more cautious.”


(Reporting By Lucia Mutikani; Editing by Andrea Ricci)


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More than ever, Barca more than club for Catalans

























BARCELONA, Spain (AP) — Nearly 20 minutes into the latest clash between Spain’s most popular football teams, Barcelona‘s 98,000-seat Camp Nou stadium erupted into a deafening roar. Tens of thousands of Catalans in the city at the heart of their separatist movement chanted in unison: “Independence!”


More than ever, FC Barcelona, known affectionately as Barca, is living up to its motto of being “more than a club” for this wealthy northeastern region where Spain’s economic crisis is fueling separatist sentiment.





















Lifelong Barca club member Enric Pujol was at Camp Nou for this month’s game against Real Madrid, the team of Spain’s capital. Wearing his burgundy-and-blue Barca jersey, Pujol also held one of the hundreds of pro-independence “estelada” flags, featuring a white star in a blue triangle, which bristled throughout the stands.


“It was a beautiful emotion to see Camp Nou like that,” said Pujol. “Barca is more than a club because of the values it transmits. It is linked to Catalan culture. In this sense it is a club and a social institution that acts like our flag.”


Barca has been seen as a bastion of Catalan identity dating back to the three decades of dictatorship when Catalans could not openly speak, teach or publish in their native Catalan language. Barcelona writer Manuel Vazquez Montalban famously called the football team “Catalonia‘s unarmed symbolic army.”


Barca-Real Madrid matches have a nickname: “el clasico” — the classic — and they are one of the world’s most-watched sporting events, seen by 400 million people in 30 countries. But local passions run high. In Spain, where football has deep political and cultural connotations, many see the clashes of Spain’s most successful teams as a proxy battle between wealthy Catalonia and the central government in Madrid. If Barca is a symbol of Catalan nationalism, Real Madrid is an emblem of a unified Spain.


“Look, the truth is that ever since the Civil War there has always been tension in Spain,” said Pujol. “Having traveled in Spain, they always look at us as Catalans.”


Ahead of kickoff before any “clasico,” Camp Nou traditionally greets Real Madrid players with a huge mosaic of Barcelona’s burgundy-and-blue made up of colored cards. This year, for the first time, they held up cards forming the red-and-yellow striped Catalan “senyera” flag — an explicit nationalist message. (Barca says it can neither confirm nor deny reports that its away uniform next season will be modeled on the senyera.)


Then came the crowd’s collective shout for independence at 1714 hours — in reference to the year 1714 when Barcelona fell to the troops of Philip V in the War of Spanish Succession. It was organized by a pro-independence group through social media.


Barca fan David Fort sees his team as a vehicle to show the world that Catalonia has its own language and culture, which is distinct from what he called the “bulls and flamenco” associated with Spain.


“We have this love for Barca because we have the chance to be represented around the world,” said Fort, a 38-year-old architect from the southern Catalan town of Tarragona. “When we travel and they ask me if I am Spanish, I say not exactly, but when I mention Barca they say ‘Ah! The Catalan team’, and of course since they are champions you feel proud.”


Barca, like every institution in Spain, was marked by the Spanish Civil War of the late 1930s and resulting right-wing dictatorship that ended after Franco’s death in 1975.


Franco’s soldiers killed Barca’s club president in 1936, and the club was forced to change its name from a Catalan to a Spanish version. And while Real Madrid was identified with the regime, Barca, for many, came to represent Catalan anti-fascist resistance.


“Under Franco, people could not shout ‘Long Live Catalonia!,’ but they could shout ‘Long Live Barca!’ (¡Visca Barca!)” in Catalan, said Ernest Folch, a newspaper columnist who writes about Barca for El Periodico. The chant became a kind of code for expressing Catalan pride.


“Barca is an anomaly. There is no other club with its particular history,” said Folch. “It survived the Franco dictatorship, and has always been a focal point for protest and ferment where sport has mixed with politics.”


And politics is a very hot topic these days in Catalonia.


Voters will go to the polls on Nov. 25 in regional elections sure to be judged as a litmus test of the strength of the pro-independence movement that brought 1.5 million people to the streets of Barcelona on Sept. 11 in the largest rally since the 1970s.


Catalonia is heavily in debt and has in fact asked Spain for a euros 5.9 billion ($ 75 billion) bailout. Even so, regional lawmakers voted on Sept. 27 to hold a referendum on self-determination at a date still to be determined. And although it is still unclear that a “Yes” vote would win, Spain’s central government has called such a referendum unconstitutional and will surely try to stop it from taking place.


That all puts Catalonia, and therefore Barca, in the midst of Spain’s struggles to deal with consequences of back-to-back recessions, 25 percent unemployment, and high public debt that has drawn it into the euro crisis along with already bailed-out Greece, Ireland and Portugal.


Barca’s appeal, of course, transcends its regional identity. The team is beloved throughout the world, and a poll last year found that it had displaced Real Madrid as Spain’s most popular team. Barca has 546 fan clubs in Catalonia, and 841 in the rest of Spain. Some of these fans— even in Catalonia — disagree with what they perceive as the political turn the club has taken in recent years.


“It’s surreal to talk to talk about these ideas related to independence,” said fan Jamie Easton, 27, a Spaniard born in Barcelona to a British father and a mother of Catalan descent. “Barca is a Catalan and Spanish club because Barcelona is part of Spain, and fans can feel however they want.”


The upswing in separatist sentiment in Catalonia has forced both the club and its players— many of whom form the backbone of Spain’s world champion national side — to try a difficult balancing act between supporting their most fervent pro-independence fans without alienating the millions of others who are not.


“We are Barca. We represent Catalonia and we will support whatever Catalans want,” said Barca and Spain midfielder Xavi Hernandez. But he added: “We try to isolate ourselves from everything outside the game. We know the political issue is there, and the people have the right to express themselves however they wish, but we are here to play football and make sure people have fun.”


The glaring exception to the moderate tone is former coach Pep Guardiola, a hugely popular figure in Catalonia, who appeared in a video during the Sept. 11 march saying: “Here you have my vote for independence.”


Two weeks after the politically charged “clasico,” Barca president Sandro Rosell made his first official visit to southern Spain to cool tensions at a meeting of Barca fan clubs.


“I don’t know what information you are receiving here, but I preferred to come here and say on behalf of the club that Barca will never get mixed up in political issues,” Rosell told the 1,000 Spanish fans, promising that Barca would never display a mosaic of the separatist “estelada” flag at Camp Nou.


“This doesn’t mean that this isn’t a Catalan club and that of course we will defend our roots and origins, but one thing shouldn’t be mixed with the other. One thing is politics and the other is identity. Barca unites us all.”


___


AP Writer Jorge Sainz contributed to this report from Madrid.


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Facebook More Irresistible Than Sex?

























Reported by Dr. Julielynn Wong:


You may want to ask your date to turn off his or her phone. A new study suggests Facebook and email trump sex in terms of sheer irresistibility.





















The German study used smartphone-based surveys to probe the daily desires of 205 men and women, most of whom were college age. For one week the phones, provided by the researchers, buzzed seven times daily, alerting study subjects to take a quick survey on the type, strength and timing of their desires, as well as their ability to resist them.


While the desire for sex was stronger, the study subjects were more likely to cave into the desire to use media, including email and social networking platforms like Facebook and Twitter, according to the study.


“Media desires, such as social networking, checking emails, surfing the Web or watching television might be hard to resist in light of the constant availability, huge appeal, and apparent low costs of these activities,” said study author Wilhelm Hofmann, an assistant professor of behavioral science at the University of Chicago Booth School of Business.


The subjects were paid $ 28 at the start of the study and were eligible for extra incentives if they filled out more than 80 percent of the surveys. It’s no small wonder that more than 10,000 surveys were completed.


The urge to check social media was so strong that subjects gave in up to 42 percent of the time, according to the study published in the journal Psychological Science. One explanation is that it’s much more convenient to check email or Facebook than it is to have sex.


“The sex drive is much stronger but it’s also much more situational,” said Karen North, director of the Annenberg Program on Online Communities at the University of Southern California in Los Angeles, who was not involved with the study. “We’re training ourselves to check our messages every couple minutes.”


“People are constantly looking down to check their phones,” North added. “They can’t stop.”


One drawback of this study is that it failed to address whether the subjects had sexual partners.  So while some subjects might have been single, all of them had smartphones, North said. It’s also unclear whether the findings can be generalized to the general population.


While social media can help people stay connected, Hofmann said overuse can be damaging.


“Media desires distract us from getting work done,” he said. “People underestimate how much time they consume and the distractions they produce and that can be harmful.”


The study surprised media expert Bob Larose, a professor in the department of telecommunications, information studies, and media at Michigan State University, East Lansing, Mich.


“It’s surprising that self-regulation fails so much more often for media use than for sex, alcohol or food,” said Larose, who was not involved with the study. ”That speaks to the power of the instantly available, 24/7 media environment to disrupt our lives… Our failure to control media use can deplete our ability to control other aspects of our lives.”


For those who fear social media is taking over their personal or professional lives, there is hope.  North offers some tips.


“If it is interfering with social/business relationships, work, or school performance, then people should try to scale back and control or limit the behavior,” she said, describing how self-imposed “rules,” like no social media at the dinner table, can help curb the constant urge to check Facebook.


“People can use a self monitoring technique, such as charting when they use social media as a means of reducing it,” North added. “Some people find it helpful to set rewards for staying within use standards that they set for themselves.”


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China halts project amid protests




























Demonstrators were thought to be calling for the release of people arrested during a protest on Saturday



Plans to expand a petrochemical plant in eastern China have been shelved after days of protests.


On Friday, crowds opposed to the expansion attacked police in the city of Ningbo in Zhejiang province.


Officials from Ningbo’s city government announced on Sunday evening that work on the project would now not go ahead.


Environmental protests have become more common in China. They come ahead of a once-in-a-decade change of national leaders in Beijing.


Protesters gathered again in Ningbo on Sunday, marching on the offices of the district government. They are opposed to the expansion of the plant by a subsidiary of the China Petroleum and Chemical Corporation.


“There is very little public confidence in the government,” protester Liu Li told the Associated Press.


“Who knows if they are saying this just to make us leave and then keep on doing the project,” she added.


Violent clashes


On Saturday, police dispersed more than 1,000 protesters in Ningbo.


Witnesses described scuffles and said a few people were arrested.


Local police accused protesters of throwing stones and bricks at officers. Residents, however, said the violence came after police used tear gas and made arrests.


Local officials met demonstrators later on Saturday to hear their demands.


The huge growth in China’s economy has come at a huge environmental cost.


Many Chinese are becoming more environmentally aware and are deeply concerned about pollution, correspondents say.


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Lithuania opens 2nd round of national election

























VILNIUS, Lithuania (AP) — Voting stations have opened in the second round of Lithuania’s parliamentary elections, with the results likely to determine whether the small East European nation continues tough austerity measures in an effort to join the euro zone.


Nearly half of Parliament’s 141 seats are at stake in single-mandate district voting, which takes place two weeks after the party-list round that failed to produce a clear favorite.





















Two center-left opposition parties took the most seats and have pledged to form a new coalition government, but the ruling conservative party, which came in third, still has a chance to emerge victorious as it has candidates in over half the 67 districts where voting will be held Sunday.


Opposition parties have vowed to increase social spending and postpone tentative plans to adopt the euro in 2014.


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German publisher Burda bids for social network Xing
















FRANKFURT (Reuters) – German publisher Burda has bid to take over professional social network Xing AG as it further reduces its dependence on traditional printed media.


Privately held Burda said it had raised its stake in Xing to 38.89 percent, exceeding a legal threshold, which triggered the mandatory offer.












Burda is offering 44 euros per share for the remaining stake, valuing Xing at 240 million euros ($ 311.03 million), a 20 percent premium to Thursday’s closing price.


Commerzbank analyst Heike Pauls advised shareholders against tendering their shares as the offer values Xing at less than 8 times 2012 earnings before interest, taxes, depreciation and amortization (EBITDA).


“Too cheap for a growth stock with consolidation upside. We still think LinkedIn may come forward with a better offer at some point in time.”


Burda has been Xing’s main shareholder since 2009 as part of an overhaul of its business to cope with declining revenues from print titles such as magazines “Bunte” and “Focus”.


Xing, which connects professionals seeking jobs and companies looking for employees, said on Friday it would study the offer. It added that Burda so far has been a good strategic investor and that it was looking forward to this being the case in the future.


The network competes with U.S. peer LinkedIn and privately held Viadeo from France, and it makes money selling premium subscriptions and advertising.


Xing shares were up 18.2 percent at 44.10 euros at 1032 GMT, reflecting shareholders hopes for a better offer.


Xing has 12.4 million members worldwide of which 5.7 million are in German-speaking countries.


LinkedIn has 175 million members globally but still lags Xing in Germany, Austria and Switzerland, where it had about 2 million members at the end of June.


($ 1 = 0.7716 euros)


(Reporting by Ludwig Burger, Harro ten Wolde and Peter Maushagen; Editing by Hans-Juergen Peters)


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German composer Hans Werner Henze dies at 86
















BERLIN (AP) — German composer Hans Werner Henze, whose prolific and wide-ranging work included a wealth of operas and 10 symphonies, died Saturday, his publisher said. He was 86.


Henze died in the eastern German city of Dresden, longstanding publisher Schott Music said in a statement, calling him “one of the most important and influential composers of our time.” It didn’t disclose the cause of death.












Henze’s work over the decades straddled musical genres. He composed stage works, symphonies, concertos, chamber works and a requiem, and once said that “many things wander from the concert hall to the stage and vice versa.”


His operas ranged from the 1950s “Ein Landarzt” (“A Country Doctor”), based on a story by Franz Kafka, to “L’Upupa,” written in 2002 and the only opera for which Henze wrote his own libretto. Other works included the musical dramas “Elegy for Young Lovers” and “The Bassarids,” and the oratorio “The Raft of the Medusa” — dedicated to the Cuban revolutionary Che Guevara.


The Semperoper opera house in Dresden recently kicked off a tribute to Henze with a performance of his antiwar drama “We come to the River,” produced in collaboration with writer Edward Bond and first performed in London in 1976.


Henze was born July 1, 1926 in Guetersloh in western Germany and grew up as the Nazis tightened their grip on the country. After studying and starting his career in music and theater in West Germany, he left the country in 1953 and went to live in Italy.


Alongside his operas, Henze was known for his symphonies, among them “Sinfonia N. 9,” finished in 1997 — a choral symphony based on Anna Seghers’ novel “The Seventh Cross” that reflected his anti-fascist convictions.


His final symphony, “Sinfonia No. 10,” completed in 2000, was premiered by Sir Simon Rattle with the City of Birmingham Symphony Orchestra.


As well as composing, Henze took teaching assignments in Austria, the U.S., Cuba and Germany. He served as composer-in-residence at the Berkshire Music Center in Tanglewood, Massachusetts, and at the Berlin Philharmonic, Schott Music said.


Henze founded the Cantiere Internazionale d’Arte festival and summer school in Montepulciano, Italy, in 1976.


Information on survivors and funeral arrangements was not immediately available.


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Meds a good “first step” for treating alcoholism
















NEW YORK (Reuters Health) – Two drugs commonly used to treat alcoholism may be appropriate for people in different stages of recovery, a new analysis confirms – likely because they work differently in the brain.


The drugs, acamprosate (marketed as Campral) and naltrexone (ReVia), are both non-addictive themselves and don’t make users sick when mixed with alcohol. So they’re a good first option for people struggling with alcohol dependence who are motivated to stop drinking but would like to avoid an inpatient program, researchers said.












In a new analysis of 64 trials evaluating the two medications, researchers from California found acamprosate was more effective at helping people who were not currently drinking stay sober. Naltrexone had the advantage when it came to cutting back on heavy drinking and helping recovering alcoholics avoid cravings.


All of the trials randomly assigned participants to take one of the drugs or a placebo pill, with drinkers typically also attending therapy sessions. They included about 11,000 people in total.


Both acamprosate and naltrexone tended to work better when study subjects had stayed away from alcohol for at least a few days before starting the drug trials, or had been through a detox program.


Natalya Maisel from the VA Palo Alto Health Care System in Menlo Park, California, and her colleagues calculated that eight people dependent on alcohol would need to be treated with acamprosate for one additional person to quit drinking. Nine would need to take naltrexone to keep one from returning to heavy drinking, the researchers reported in the journal Addiction.


The findings make sense to addiction specialists given how each drug acts on the brain, according to Dr. Raymond Anton, head of the Center for Drug & Alcohol Programs at the Medical University of South Carolina in Charleston.


Acamprosate is known to calm brain activity in general, so it can stabilize a brain that gets out of sorts when an alcoholic stops drinking. But if people start drinking again while on acamprosate, it probably won’t help keep their cravings down, he added.


Naltrexone, Anton said, works on the brain’s reward and reinforcement system – so if people were to drink while on the drug, it would block some of the positive feelings produced by alcohol and keep them from overdoing it.


“It stops a slip from becoming a relapse,” he said. Naltrexone can also help alcoholics in recovery avoid giving in to cues, like when they drive past a liquor store, according to Anton, who wasn’t involved in the new study.


Maisel’s team noted that most of the trials of both acamprosate and naltrexone used in the analysis were only a few months long – and there is “a paucity of information in the literature regarding how long the benefits of these medications last after treatment,” the researchers said.


Anton said both drugs could be a useful “first step” in addressing problem drinking when paired with therapy – especially for people who are hesitant to seek care because of the time and money involved in intensive treatment. They should talk with their doctors about medication options, he said.


Generic acamprosate costs $ 40 to $ 90 for a one-month supply. Naltrexone runs closer to $ 100 per month.


“People should realize that there are alternative treatments that are useful for them while they continue in their normal work and family, that they don’t necessarily have to go into a 30-day treatment center to get treatment for alcohol,” Anton told Reuters Health.


“If it doesn’t work, you can always think about rehab or inpatient treatment later on.”


SOURCE: http://bitly.com/TiGITG Addition, online October 17, 2012.


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Minister: Germany close to balanced budget in 2013
















BERLIN (AP) — Germany‘s finance minister says the government will come close to balancing its budget next year as economic growth outpaces public spending.


Germany, Europe’s biggest economy, has been working toward a target of fully balancing its budget in 2016. On Friday, Chancellor Angela Merkel said that “must be our essential aim, because we have this obligation toward our children and grandchildren.”












Finance Minister Wolfgang Schaeuble indicated in an article for the Tagesspiegel newspaper released Saturday that the government is ahead of target. He said the federal government expects a “near-balanced budget” in 2013.


Schaeuble said Germany’s budget deficit will fall below 0.5 percent this year. Last year, it was 1 percent.


The country’s healthy public finances have been helped by a robust economy that has produced increases in tax income.


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Amnesty Int: Ivory Coast torturing detainees
















ABIDJAN, Ivory Coast (AP) — Ivory Coast security officials are torturing dozens of detainees by administering electric shocks and other forms of abuse, Amnesty International alleged Friday.


The victims include people charged with endangering state security in the wake of a recent spate of attacks targeting military installations. Since early August, unknown gunmen have carried out roughly 10 attacks at checkpoints, military bases and other installations throughout the country, including in the commercial capital of Abidjan.












United Nations officials have said that more than 200 people have been detained on suspicion of involvement in the attacks, and that torture has been documented at multiple detention facilities.


Gaetan Mootoo, West Africa researcher for Amnesty, said an investigation team received reports of a range of abuses during a recent month-long visit.


“We were able to meet dozens of detainees who told us how they have been tortured by electricity or had molten plastic poured on their bodies,” Mootoo said. “Two of them have been sexually abused. Some have been held for many months denied contact with their families and access to lawyers.”


Army spokesman Cherif Moussa denied the torture allegations Friday. “Our camps are not concentration camps,” he said.


However, he acknowledged the possibility that individual soldiers may occasionally “go beyond what they are allowed to do” when dealing with inmates.


He added that the government tried to ensure that inmates’ rights were respected. “We want to prove that we are not abusing people’s rights,” he said. “We’re working for the state’s security. We’re working for the people’s security.”


Earlier this month, the Associated Press interviewed former detainees at a military camp in the southwestern port town of San Pedro who described widespread beatings as well as the use of electric shocks. A guard at the camp corroborated most of the claims, though camp commanders denied them.


In its statement Friday, Amnesty described how one detainee, a police officer, had died as a result of the torture he endured at the San Pedro camp.


“Serge Herve Kribie was arrested in San Pedro on August 21 by the national army and interrogated about recent attacks,” Amnesty said. “He was stripped naked, tied to a pole, had water poured on his body, and was then subjected to electric shocks. He died a few hours later.”


Amnesty said that some detainees were only released after ransoms were paid. One detainee told the rights group: “My parents first paid 50,000 CFA (a little under US $ 100) and then after my release, my jailers went at my house and demanded a higher sum. I told them that I couldn’t pay such an amount and they agreed to receive 20,000 CFA more (about US$ 40).”


The government has blamed the attacks on allies of former President Laurent Gbagbo, who was arrested in April 2011. Gbagbo’s refusal to cede office after losing the November 2010 election to now-President Alassane Ouattara sparked six months of violence in which at least 3,000 were killed.


Amnesty researchers also met with some of the more than 100 Gbagbo allies – including his wife, Simone – who are being detained on charges stemming from the post-election violence.


“Some of them told us that despite the fact that they have been held since April 2011, they only saw an investigating judge twice for less than a few hours,” Mootoo said.


Despite widespread evidence that forces loyal to Ouattara also committed atrocities during the violence, none have been arrested or credibly investigated, sparking allegations of victor’s justice.


Also Friday, in Amsterdam, judges at the International Criminal Court rejected a request for release by former president Gbagbo, who is being detained on suspicion of crimes against humanity.


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