Fed's Plosser: U.S. unemployment to fall under 7 percent by end - 2013

SAN DIEGO (Reuters) - Philadelphia Federal Reserve President Charles Plosser said on Friday that he expected U.S. unemployment to decline to between 6.8 percent and 7.0 percent by the end of this year, helped by economic growth of around 3 percent in both 2013 and 2014.
Plosser also told reporters on the sidelines of the annual meeting of the American Economic Association that he hoped the U.S. central bank would stop buying bonds if the jobless rate indeed fell at this pace, which would bring the level of unemployment close to the Fed's threshold of 6.5 percent.
"Hopefully, if you're getting that close, you will have stopped asset purchases before you get to 6.5 (percent). Otherwise you have really got another problem on your hands," he said. Data released earlier on Friday showed the U.S. unemployment rate held steady at 7.8 percent in December.

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Italy PM Monti says not eyeing role of finance minister in next government

ROME (Reuters) - Outgoing Italian Prime Minister Mario Monti said on Friday he was aiming to lead the next government and he was unlikely to agree to be economy minister in another premier's cabinet after February elections.
"I do not think I would have the motivation to commit myself to serve a government that did not agree with me on at least 98 percent of policy," he said when asked whether he would consider the role of economy minister in an interview on La 7 television.

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Fed's Plosser: U.S. potential growth rate has likely been lowered

SAN DIEGO (Reuters) - Philadelphia Federal Reserve President Charles Plosser said on Friday that the United States had likely suffered a lasting decline in the trend potential growth rate of its economy as a result of the severe 2007-2009 U.S. recession.
"It certainly looks like we've had a permanent shock," he told a panel discussion on the real business cycle during the annual meeting of the American Economics Association. However, he said that it would take a considerable period of time before the data would be able to verify that trend growth had declined.

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Britain extradites al Qaeda suspect to U.S

LONDON (Reuters) - A Pakistani man accused by British authorities of being an al Qaeda operative who took part in a plot to bomb U.S. and English targets was extradited from Britain to the United States on Thursday to face terrorism charges.
Abid Naseer, 26, was one of a dozen men arrested in April 2009 on suspicion of preparing to cause mass casualties by bombing Manchester city centre in northern England.
He and the other suspects were never charged, but Britain said in addition to the alleged Manchester plot, Naseer was part of a wider al Qaeda cell bent on staging attacks in the United States and Norway.
On Thursday, he was taken by counter-terrorism police from a high security prison in east London to Luton airport, north of the British capital, and handed over to U.S. officials.
He is wanted for trial in the United States for his alleged role in planned suicide bomb attacks on New York City subways in 2009, for which a number of men have already been convicted.
He faces three charges: providing material support to a foreign terrorist organisation; conspiracy to provide material support to a foreign terrorist organisation; and conspiracy to use a destructive device.
Naseer and 11 others, mostly students from Pakistan, were arrested in daylight raids in 2009 after Britain's most senior counter-terrorism officer was photographed openly carrying details about the operation.
Britain's then-prime minister, Gordon Brown, said officers were dealing with a "very big terrorist plot", but no explosives were found and all the men were later released as there was not enough evidence to charge them.
Britain's case against them had been based around emails exchanged between Naseer and a Pakistan account believed to be registered to an al Qaeda operative.
British authorities said the emails, which appeared to be discussions about girlfriends and wedding plans, in fact related to ingredients for explosives and they said Naseer posed a serious threat to national security.
The men were ordered to be deported to Pakistan but Naseer won an appeal against the decision because of fears he would be mistreated if he was returned.
He was arrested again in July 2010 when the U.S. warrant was issued, and last month European Court of Human Rights rejected his appeal against the extradition.

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Icelandic girl fights for right to her own name

REYKJAVIK, Iceland (AP) — Call her the girl with no name.
A 15-year-old is suing the Icelandic state for the right to legally use the name given to her by her mother. The problem? Blaer, which means "light breeze" in Icelandic, is not on a list approved by the government.
Like a handful of other countries, including Germany and Denmark, Iceland has official rules about what a baby can be named. In a country comfortable with a firm state role, most people don't question the Personal Names Register, a list of 1,712 male names and 1,853 female names that fit Icelandic grammar and pronunciation rules and that officials maintain will protect children from embarrassment. Parents can take from the list or apply to a special committee that has the power to say yea or nay.
In Blaer's case, her mother said she learned the name wasn't on the register only after the priest who baptized the child later informed her he had mistakenly allowed it.
"I had no idea that the name wasn't on the list, the famous list of names that you can choose from," said Bjork Eidsdottir, adding she knew a Blaer whose name was accepted in 1973. This time, the panel turned it down on the grounds that the word Blaer takes a masculine article, despite the fact that it was used for a female character in a novel by Iceland's revered Nobel Prize-winning author Halldor Laxness.
Given names are even more significant in tiny Iceland that in many other countries: Everyone is listed in the phone book by their first names. Surnames are based on a parent's given name. Even the president, Olafur Ragnar Grimsson, is addressed simply as Olafur.
Blaer is identified as "Stulka" — or "girl" — on all her official documents, which has led to years of frustration as she has had to explain the whole story at the bank, renewing her passport and dealing with the country's bureaucracy.
Her mother is hoping that will change with her suit, the first time someone has challenged a names committee decision in court.
Though the law has become more relaxed in recent years — with the name Elvis permitted, inspired by the charismatic rock and roll icon whose name fits Icelandic guidelines — choices like Cara, Carolina, Cesil, and Christa have been rejected outright because the letter "c'' is not part of Iceland's 32-letter alphabet.
"The law is pretty straightforward so in many cases it's clearly going to be a yes or a no," said Agusta Thorbergsdottir, the head of the committee, a panel of three people appointed by the government to a four-year term.
Other cases are more subjective.
"What one person finds beautiful, another person may find ugly," she acknowledged. She pointed to "Satania" as one unacceptable case because it was deemed too close to "Satan."
The board also has veto power over people who want to change their names later in life, rejecting, for instance, middle names like Zeppelin and X.
When the artist Birgir Orn Thoroddsen applied to have his name legally changed to Curver, which he had used in one form or another since age 15, he said he knew full well the committee would reject his application.
"I was inspired by Prince who changed his name to The Artist Formerly Known As Prince and Puff Daddy who changed his to P. Diddy and then Diddy with seemingly little thought or criticism," he said. "I applied to the committee, but of course I got the 'No' that I expected."
On his thirtieth birthday, he bought a full-page advertisement that read, "From February 1, 2006, I hereby change my name to Curver Thoroddsen. I ask the nation, my friends and colleagues to respect my decision."
"I can understand a clause to protect children from being named something like 'Dog poo,' but it is strange that an adult cannot change his name to what he truly wants," he said.
Thoroddsen is keeping his protest to the media. But Eidsdottir says she is prepared to take her case all the way to the country's Supreme Court if a court doesn't overturn the commission decision on Jan. 25.
"So many strange names have been allowed, which makes this even more frustrating because Blaer is a perfectly Icelandic name," Eidsdottir said. "It seems like a basic human right to be able to name your child what you want, especially if it doesn't harm your child in any way.

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Better margins a bonus for Next as Christmas sales rise

Next, Britain's No.2 clothing retailer, nudged its full-year profit forecast higher after an increase in sales over the Christmas period was supplemented by improved margins due to a renewed attack on costs.
Shares in Next, which has a long-standing policy of never going on sale before December 26, rose 2.3 percent on Thursday, topping the FTSE 100 leader board, after it forecast profit growth in both the 2012/13 and 2013/14 years even though it expects the consumer environment to stay subdued.
With Britain facing a possible triple-dip recession, many retailers have been finding the going tough as consumers fret over job security and a squeeze on incomes.
"I think it is getting slowly better in that the difference between inflation and wages is narrowing and I think will probably continue to narrow," chief executive Simon Wolfson told Reuters.
"But certainly for the rest of 2013 I still think real incomes will drop, albeit at probably a lower rate than they fell last year," said Wolfson, a supporter of Britain's ruling Conservative Party, who sits in the upper house of Parliament.
Next has generally defied the economic gloom, helped by its strong online offer, a constant stream of new store openings and diversification into homewares and overseas markets.
On Wednesday, John Lewis, Britain's largest department store group, posted record Christmas sales, driven by stellar online trade. That performance was mirrored on Thursday by upmarket grocer Waitrose, which is also part of the John Lewis stable.
Kicking off the post-Christmas retail reporting season for listed companies, Next said total sales, excluding VAT sales tax, rose 3.9 percent in the November 1 to December 24 period.
That compared with an increase of 2.7 percent in its third quarter, giving a year to date rise of 3.9 percent - in line with guidance of 3.0-4.5 percent.
Sales at Next's over 500 stores in Britain and Ireland rose 0.8 percent in the November, December period while sales at the Directory home shopping, internet and catalogue business increased 11.2 percent.
Although sales were in line with internal expectations, cost control measures, markdowns and gross margins were all slightly better than expected, the firm said, adding that its post-Christmas Sale had started well.
Wolfson said a host of costs, such as in warehousing, distribution and store operations, had come in below budget. Further cost savings have been identified for the 2013/14 year.
Next now expects a year to end-January 2013 pretax profit of 611-625 million pounds ($995 million-$1.02 billion), up from previous guidance of 590-620 million pounds.
It forecast earnings per share growth for 2012-13 of 14-17 percent, partly reflecting a 241 million pounds share buyback.
Shares in Next, up 38 percent over the last year, were up 84 pence at 3,856 pence at 1122 GMT, valuing the business at 6.2 billion pounds.
"Next remains our top pick of the FTSE 100 Retailers, a core sector holding underpinned by a flexible store base and the benefits of Directory," said Peel Hunt analyst John Stevenson, who raised his 12-month target price to 4,000 pence.
For the 2013-14 year the firm guided to sales growth of 1.5-4.0 percent, with profit up in line with sales and a further 250 million pounds of share buy backs.
"International and online will continue to grow and we will continue to open profitable new space," said Wolfson, flagging 250,000 square feet for 2013-14, with new space skewed to the home area.
He said Next was not seeing any rise in the cost of its spring/summer stock, a lot of which has already been purchased.
"So we can say that with some certainty there will be zero inflation in the price of spring/summer stock in like-for-like product.

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Basque group announces it is dissolving

BAYONNE, France (AP) — The Basque nationalist group known as Batasuna — legal in France but banned in Spain — has announced that it is dissolving after 11 years.
It leaders said Thursday that Batasuna, which means "unity," is dissolving because "the Basque country is witnessing a new political phase."
In Spain, Batasuna has been outlawed since 2003 for its links to the separatist group ETA, but in France it has had a low-profile presence pressing for autonomy for the three French Basque provinces and union with the four Basque provinces in Spain.
A statement by Batasuna noted the ETA's decision to end armed conflict in January 2011. The group said its struggle for a "free, united Basque country" will continue with other "political tools.

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British zoos start annual census

LONDON (AP) — In a sea of flapping black and white flippers, Ricky is hard to miss: He's got spiky yellow feathers, a flamboyant character, and he's the only rockhopper among the dozens of penguins living in the London Zoo.
That's a big help for keepers embarking on their annual stock-taking of all the zoo's residents. It's no easy task, when there are more than 17,500 creatures to count. All animals have to be accounted for, including the tarantulas, locusts and snails.
Zoo managers started the painstaking process on Thursday, and the final tally could take weeks.
Officials hope this year will bring new partners and families to a range of animals. An all-female family of nine otters has been waiting for a new male to arrive, and Ricky, who has been the lone rockhopper in the zoo since 2011, would also appreciate a mate.
"Ricky's quite a unique character — he was rejected by his parents and was hand-reared. He's more interested in zoo keepers than in other penguins," said zoological director David Field. "It's time to get him some rockhopper partners."
The census is required as part of the zoo's license terms, and the data is used for zoo management and international breeding programs for endangered animals.
Most animals in the zoo have microchips in their bodies, making counting a little less daunting. Fish and animals with camouflage properties — like leaf insects — are trickier, and the tiniest ones such as ants are counted in colonies, not as individuals.
New additions to the zoo being counted for the first time included baby Ziggy, an endangered white-naped mangabey monkey, and Maxilla, a black-and-white colobus monkey.
The zoo also welcomed a pair of new Sumatran tigers — male Jae Jae from a zoo in Ohio in the U.S. and female Melati, from Perth, Australia.
The tigers were matched by an international breeding program to ensure a genetically diverse population of animals. They will soon be properly introduced to each other and meet visitors in a newly expanded enclosure in spring.
"We breed them in the zoo because they are running out of time in the wild," said Field, who's hopeful the tigers will soon produce cubs.
The World Wildlife Fund says there are now fewer than 400 of the big cats, which are native to Indonesia.

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Fed becoming worried about stimulus side effects

 Federal Reserve officials are increasingly concerned about the potential risks of the U.S. central bank's asset purchases on financial markets, even if they look set to continue an open-ended stimulus program for now.
In a surprise to Wall Street, minutes from the Fed's December policy meeting, published on Thursday, showed a growing reticence about further increases in the central bank's $2.9 trillion balance sheet, which it expanded sharply in response to the financial crisis and recession of 2007-2009.
"Several (officials) thought that it would probably be appropriate to slow or to stop purchases well before the end of 2013, citing concerns about financial stability or the size of the balance sheet," the minutes said, referring to the narrower group of voting Fed members.
Investors picked up on the report's hawkish tone, with stock prices drifting lower after the announcement, while the U.S. dollar extended gains against the euro. Yields on the 30-year Treasury bond hit 3.12 percent, their highest levels since May.
"The minutes of the Federal Reserve's December monetary policy meeting revealed a somewhat surprising level of concern among the ranks of central bankers regarding the long-term impact of the bank's asset purchase program, or quantitative easing," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington D.C.
Still, the Fed appeared likely to continue buying assets for the foreseeable future, having announced in December it was extending monthly purchases of $40 billion in mortgage securities and also buying $45 billion in Treasuries each month.
A few of the voting members on the central bank's policy-setting Federal Open Market Committee thought asset buying would be warranted until about the end of 2013. A few others highlighted the need for further large-scale stimulus but did not specify an amount or time frame.
Fed officials generally agreed that the labor market outlook was not likely to improve without further nudging from the monetary authorities.
QE "HEEBIE-JEEBIES"
The U.S. economy expanded a respectable 3.1 percent in the third quarter on an annualized basis, but growth is believed to have slowed sharply to barely above 1.0 percent in the last three months of the year.
Data on Thursday showed a solid gain of 215,000 new private sector jobs for December, while analysts polled by Reuters last week were looking for a rise of 150,000 new jobs in the Labor Department's official survey, due out on Friday.
Still, the minutes indicated worries about quantitative easing policies were spreading beyond the usual regional Fed hawks who, like Richmond Fed President Jeffrey Lacker, have opposed additional Fed easing.
"What's clear from these minutes is that there is little consensus among the members of the FOMC on how long asset purchases should carry on," said Jason Conibear, trading director at Cambridge Mercantile.
"Some members want more accommodation for as long as it takes, some want more but to start winding it down while others have got the heebie-jeebies about the size of the balance sheet."
In the December meeting, the Fed also launched a new framework of policy thresholds, numerical guideposts that are supposed to give markets and the public a clearer idea of how policymakers will react to incoming economic data.
Officials say they will keep interest rates near zero until the unemployment rate falls to 6.5 percent for as long as estimates of medium-run inflation do not exceed 2.5 percent.
The minutes suggested it took officials some time to build a consensus around the idea.
"A few participants expressed a preference for using a qualitative description of the economic indicators influencing the Committee's thinking," the minutes said.
U.S. unemployment has come down steadily after hitting a peak of 10 percent in late 2009, but remains elevated at 7.7 percent.
Fed officials noted worries about the looming "fiscal cliff," which was dealt with only partly in an agreement earlier this week, were hurting the confidence of businesses and households.

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Stocks fade after Fed discloses split on stimulus

A two-day rally in the stock market came to an end Thursday afternoon when an account of the Federal Reserve's last meeting revealed a split between bank officials over how long the Fed should keep buying bonds to support the economy.
The Dow Jones industrial average and the Standard & Poor's 500 index treaded water for much of the day, then slid into the red around 2 p.m. Eastern, after the Fed released the minutes from its December meeting.
The Dow ended with a loss of 21.19 points at 13,391.36.
The S&P 500 lost 3.05 points to 1,459.37 and the Nasdaq composite fell 11.70 to 3,100.57.
At last month's meeting of the Federal Reserve's policy-making committee, the central bank pledged to buy $85 billion of Treasurys and mortgage-backed bonds and also keep a benchmark interest rate near zero until the unemployment rates drops below 6.5 percent.
On Thursday, the minutes from that meeting showed Fed officials were divided over the bond purchases. Some of its 12 voting members thought they should continue through this year, while another group thought they should be slowed or stopped much earlier. Just "a few" members saw no need for a time frame, according to the minutes.
"It's pretty surprising," said Thomas Simons, market economist at the investment bank Jefferies. "I think everybody thought there was broad agreement on policy, but now it seems like few of them really wanted to vote for it."
The stock market opened on a weak note after retailers reported mixed holiday sales and as the prospect of a new budget battle in Congress loomed. UnitedHealth Group led the Dow lower. The insurance giant's stock fell $2.55 to $51.99 after analysts at Deutsche Bank and other firms cut their ratings on the stock.
"It's natural to relax a bit after such a huge day as yesterday," said Lawrence Creatura, who manages a small-company fund at Federated Investors.
The Dow soared 308 points Wednesday, its largest point gain since December 2011. The rally was ignited after lawmakers passed a bill to avoid a combination of government spending cuts and tax increases called the "fiscal cliff."
That deal gave the market a jump start into the new year. The Dow and the S&P 500 are already up more than 2 percent.
"We're off to a very strong start," Creatura said. "The dominant reason is the resolution of the fiscal cliff. But January is usually a strong month, as investors all shift money into the market at the same time. When the calendar flips, it's as if you're allowed to begin the race anew."
Economists had warned that the full force of the fiscal cliff could drag the country into a recession. The law passed late Tuesday night averted that outcome for now, but other fiscal squabbles are likely in the months ahead. Congress must raise the government's borrowing limit soon or be forced to choose between slashing spending and paying its debts.
In other Thursday trading, prices of U.S. government bonds fell, sending their yields higher. The yield on the benchmark 10-year Treasury note rose to 1.90 percent from 1.84 percent late Wednesday, a sign that some bond traders believe the Fed minutes hinted at an early end to its bond buying.
Family Dollar Stores sank 13 percent after reporting earnings that fell short of analysts' projections. The company also forecast a weaker outlook for the current period and full year. Family Dollar's stock lost $8.30 to $55.74.
Nordstom Inc. surged 3 percent after the department-store chain reported strong holiday sales, especially in the South and Midwest. Nordstrom's stock was up $1.64 to $55.27.
Among other stocks making big moves:
— Transocean jumped $2.96 to $49.20. The owner of the oil rig that sank in the Gulf of Mexico in 2010 after an explosion killed 11 workers reached a $1.4 billion settlement with the Justice Department.
— Hormel Foods, known for making Spam and other meat products, said that it's buying Skippy, the country's No. 2 peanut butter brand, from Unilever for about $700 million. Hormel's stock jumped $1.19 to $33.20.

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