Palestinians certain to win recognition as a state in United Nations vote

UNITED NATIONS (AP) — The Palestinians are certain to win U.N. recognition as a state Thursday but success could exact a high price: Israel and the United States warn it could delay hopes of achieving an independent Palestinian state through peace talks with Israel.

The United States, Israel's closest ally, mounted an aggressive campaign to head off the General Assembly vote. Israeli Prime Minister Benjamin Netanyahu defiantly declared Thursday that the Palestinians would have to back down from long-held positions if they ever hope to gain independence.

Ahead of Thursday's vote, thousands of Palestinians from rival factions celebrated in the streets of the West Bank. Although the initiative will not immediately bring about independence, the Palestinians view it as a historic step in their quest for global recognition.

The United States, Israel's closest ally, mounted an aggressive campaign to head off the General Assembly vote.

In a last-ditch move Wednesday, U.S. Deputy Secretary of State William Burns made a personal appeal to Palestinian President Mahmoud Abbas promising that President Barack Obama would re-engage as a mediator in 2013 if Abbas abandoned the effort to seek statehood. The Palestinian leader refused, said Abbas aide Saeb Erekat.

With most of the 193 General Assembly member states sympathetic to the Palestinians, the vote is certain to succeed. Several key countries, including France, have recently announced they would support the move to elevate the Palestinians from the status of U.N. observer to nonmember observer state. However, a country's vote in favor of the status change does not automatically imply its individual recognition of a Palestine state, something that must be done bilaterally.

The Palestinians say they need U.N. recognition of a Palestinian state in the West Bank, Gaza and east Jerusalem, the lands Israel captured in 1967, to be able to resume negotiations with Israel. They say global recognition of the 1967 lines as the borders of Palestine is meant to salvage a peace deal, not sabotage it, as Israel claims.

The non-member observer state status could also open the way for possible war crimes charges against the Jewish state at the International Criminal Court.

Netanyahu warned the Palestinians Thursday that they would not win their hoped-for state until they recognize Israel as the Jewish homeland, declare an end to their conflict with the Jewish state and agree to security arrangements that protect Israel.

"The resolution in the U.N. today won't change anything on the ground," Netanyahu declared. "It won't advance the establishment of a Palestinian state, but rather, put it further off."

While Israel argues that Abbas is trying to dictate the outcome of border talks by going to the U.N., the recognition request presented to the world body in fact calls for a quick resumption of negotiations on all core issues of the conflict, including borders.

Netanyahu's predecessors accepted the 1967 lines as a basis for border talks. Netanyahu has rejected the idea, while pressing ahead with Jewish settlement building on war-won land, giving Abbas little incentive to negotiate.

For Abbas, the U.N. bid is crucial if he wants to maintain his leadership and relevance, especially following the recent conflict between his Hamas rivals in Gaza and Israel. The conflict saw the Islamic militant group claim victory and raise its standing in the Arab world, while Abbas' Fatah movement was sidelined and marginalized.

In a departure from previous opposition, the Hamas militant group, which rules the Gaza Strip, said it wouldn't interfere with the U.N. bid, and its supporters joined some of the celebrations Thursday.

In the West Bank city of Hebron, some in a crowd of several thousand raised green Hamas flags, while in the city of Ramallah, senior figures of Hamas and Islamic Jihad, two militant groups normally opposed to Abbas, addressed the crowd.

"It's the right step in the right direction," Nasser al-Shaer, a former deputy prime minister from Hamas, said of the U.N. bid.

The Palestinians chose the "International Day of Solidarity with the Palestinian People" for the vote. Before it takes place, there will be a morning of speeches by supporters focusing on the rights of the Palestinians. Abbas is scheduled to speak at that meeting, and again in the afternoon when he will present the case for Palestinian statehood in the General Assembly.

U.S. Secretary of State Hillary Clinton warned Wednesday that the U.N. vote will not fulfill the goal of independent Palestinian and Israeli states living side by side in peace, which the U.S. strongly supports because that requires direct negotiations.

"We need an environment conducive to that," she told reporters in Washington. "And we've urged both parties to refrain from actions that might in any way make a return to meaningful negotiations that focus on getting to a resolution more difficult."

The U.S. Congress has threatened financial sanctions if the Palestinians improve their status at the United Nations.

Ahead of the vote, Republican Sen. Orrin Hatch filed an amendment to a defense bill Wednesday that would eliminate funding for the United Nations if the General Assembly changes Palestine's status.

Israeli government spokesman Mark Regev said that by going to the U.N., the Palestinians violate "both the spirit and the word of signed agreements to solve issues through negotiations," which broke down four years ago.

But Israeli officials appeared to back away from threats of drastic measures if the Palestinians get U.N. approval, with officials suggesting the government would take steps only if the Palestinians use their new status to act against Israel.

Regev, meanwhile, affirmed that Israel is willing to resume talks without preconditions.

U.N. diplomats said they will be listening closely to Abbas' speech to the General Assembly on Thursday afternoon before the vote to see if he makes an offer of fresh negotiations with no strings, which could lead to new talks. The Palestinians have been demanding a freeze on Israeli settlements as a precondition.

As a sign of the importance Israel attaches to the vote, Israeli Foreign Minister Avigdor Lieberman flew to New York and was scheduled to meet Secretary-General Ban Ki-moon before the vote.

Unlike the Security Council, there are no vetoes in the General Assembly and the resolution to raise the Palestinian status from an observer to a nonmember observer state only requires a majority vote for approval. To date, 132 countries — over two-thirds of the U.N. member states — have recognized the state of Palestine.

The Palestinians have been courting Western nations, especially the Europeans, seen as critical to enhancing their international standing. A number have announced they will vote "yes" including France, Italy, Spain, Norway, Denmark and Switzerland. Those opposed or abstaining include the U.S., Israel, Germany, Canada, the Netherlands and Australia.

The Palestinians turned to the General Assembly after the United States announced it would veto their bid last fall for full U.N. membership until there is a peace deal with Israel.

Following last year's move by the Palestinians to join the U.N. cultural agency UNESCO, the U.S. withheld funds from the organization, which amount to 22 percent of its budget. The U.S. also withheld money from the Palestinians.

_____

Associated Press writers Amy Teibel in Jerusalem and Karin Laub in Ramallah, West Bank, contributed to this story.

.

Read More..

Rapper PSY wants Tom Cruise to go 'Gangnam Style'

BANGKOK (AP) — The South Korean rapper behind YouTube's most-viewed video ever has set what might be a "Mission: Impossible" for himself.

Asked which celebrity he would like to see go "Gangnam Style," the singer PSY told The Associated Press: "Tom Cruise!"

Surrounded by screaming fans, he then chuckled at the idea of the American movie star doing his now famous horse-riding dance.

PSY's comments Wednesday in Bangkok were his first public remarks since his viral smash video — with 838 million views — surpassed Justin Bieber's "Baby," which until Saturday held the record with 803 million views.

"It's amazing," PSY told a news conference, saying he never set out to become an international star. "I made this video just for Korea, actually. And when I released this song — wow."

The video has spawned hundreds of parodies and tribute videos and earned him a spotlight alongside a variety of superstars.

Earlier this month, Madonna invited PSY onstage and they danced to his song at one of her New York City concerts. MC Hammer introduced the Korean star at the American Music Awards as, "My Homeboy PSY!"

Even President Barack Obama is talking about him. Asked on Election Day if he could do the dance, Obama replied: "I think I can do that move," but then concluded he might "do it privately for Michelle," the first lady.

PSY was in Thailand to give a free concert Wednesday night organized as a tribute to the country's revered King Bhumibol Adulyadej, who turns 85 next month. He paid respects to the king at a Bangkok shopping mall, signing his name in an autograph book placed beside a giant poster of the king. He then gave an outdoor press conference, as screaming fans nearby performed the pop star's dance.

Determined not to be a one-hit wonder, PSY said he plans to release a worldwide album in March with dance moves that he thinks his international fans will like.

"I think I have plenty of dance moves left," he said, in his trademark sunglasses and dark suit. "But I'm really concerned about the (next) music video."

"How can I beat 'Gangnam Style'?" he asked, smiling. "How can I beat 850 million views?"

___

Associated Press writer Thanyarat Doksone contributed to this report.

Read More..

Seattle police plan for helicopter drones hits severe turbulence

SEATTLE (Reuters) – One of the latest crime-fighting gadgets to emerge on the wish lists of U.S. law enforcement agencies – drone aircraft – has run into heavy turbulence in Seattle over a plan by police to send miniature robot helicopters buzzing over the city.

A recent push for unmanned police aircraft in several cities is being driven largely by grants from the U.S. Department of Homeland Security, including more than $ 80,000 the city of Seattle used to buy a pair of drone choppers in 2010.

But getting aerial drones off the ground has run into stiff opposition from civil libertarians and others who say the use of stealth airborne cameras by domestic law enforcement raises questions about privacy rights and the limits of police search powers.

The aircraft would never carry weapons, but the use of drones for even mundane tasks raises ire among some because of the association of pilotless crafts with covert U.S. missile strikes in places such as Pakistan and Yemen.

In Seattle last month, a community meeting where police officials presented plans to deploy their two remote-controlled helicopters erupted into yelling and angry chants of “No drones!”

“My question is simple: What’s the return policy for the drones?” said Steve Widmayer, 57, one of numerous citizens who spoke out against the unmanned aircraft. He predicted the City Council would commit “political suicide” if it backed the plan.

Seattle City Councilman Bruce Harrell said he hoped the council would set strict drone policies by January.

Police in Seattle, along with Florida’s Miami-Dade County and Houston, are among a handful of big-city law enforcement departments known to have acquired aerial drones. But those cities have not started operating the robot aircraft.

FEAR OF FLYING ROBOTS

In Oakland, California, this month, an Alameda County sheriff’s application for a federal grant to buy an aerial drone to help monitor unruly crowds and locate illegal marijuana farms drew opposition at a Board of Supervisors meeting.

“I do not want flying spy robots looking into my private property with infrared cameras,” Oakland resident Mary Madden said. “It’s an invasion of my privacy.”

County Board President Nate Miley said the issue would be taken up by the supervisors’ Public Protection Committee.

The two Draganflyer X6 remote-controlled miniature helicopters purchased by Seattle have so far been mostly grounded, restricted to training and demonstration flights.

Equipped to carry video, still and night-vision cameras, they can remain aloft for only 15 minutes at a time before their batteries run out, police said.

Assistant Police Chief Paul McDonagh said the aircraft would not be used in Seattle for surveillance or for monitoring street protests. Instead, his department’s plans to deploy drones to search for missing persons, pursue fleeing suspects, assist in criminal investigations and for unspecified “specific situations” subject to McDonagh’s approval.

Seattle City Councilman Bruce Harrell said he hoped the council would set strict drone policies by January.

Months ago in Texas, Chief Deputy Randy McDaniel of the Montgomery County Sheriff’s Office raised eyebrows by saying he hoped to equip his department’s drones with rubber bullets and tear gas, though he told Reuters his thinking on armed aircraft has since evolved.

“From a law enforcement standpoint, that’s never going to happen,” he said. McDaniel said his office received Federal Aviation Administration clearance earlier this month to begin operational drone flights but has not yet had occasion to do so.

Actual U.S. domestic use of law-enforcement drone aircraft remains extremely limited.

The Mesa County Sheriff’s Department in Colorado has been operating two small drones, also bought with Homeland Security funds, since 2010.

It uses them largely to create three-dimensional images of crime scenes, said Benjamin Miller, director of the department’s drone program. They are not used for surveillance, he said.

In North Dakota, the Grand Forks police department last year called in a high-flying Predator drone operated by the U.S. Department of Homeland Security to monitor a tense standoff with a rancher over alleged stolen cattle.

The rancher, Rodney Brossart, and five family members are believed to be the first Americans nabbed by police with drone assistance – with the possible exception of operations along the southwest border with Mexico.

The use of drones there by the Customs and Border Protection agency – a part of Homeland Security – led to 7,500 arrests and the seizure of thousands of pounds of drugs up to the end of last year.

The nationality of those arrested in drone assisted operations in the borderlands is not clear, nor is if Customs and Border Protection partnered with local forces in any of those arrests.

(Editing by Steve Gorman and Jackie Frank)

Gadgets News Headlines – Yahoo! News

Read More..

BBC drama 'The Hour' back to make the 1950s sexy

LONDON (AP) — The media are under fire, celebrities are under the microscope. Welcome to Britain in 2012 — or in the 1950s, the setting for the BBC drama "The Hour."

A newsroom drama/political thriller about the staff of a current affairs TV program, "The Hour" gained attention last year when it debuted for its resonant story lines and distinctive retro style. The latter aspect — all mid-century modern interiors, sensuous silk dresses and slim suits — prompted the show to be dubbed, inevitably, a British "Mad Men."

The second six-episode season — in the middle of its run in Britain and starting Wednesday on BBC America — stays focused on the tempestuous trio of battling producer Bel Rowley (Romola Garai), combative reporter Freddie Lyon (Ben Whishaw, tech-master Q in the Bond film "Skyfall") and smooth anchorman Hector Madden ("The Wire" alumnus Dominic West) as they confront meddling management, murky maneuvers in high places and tensions between work and their private lives.

They also must deal with the consequences of their show's rising profile — especially the impulsive Hector, who finds that fame comes at a cost.

Series writer Abi Morgan, whose work includes screenplays for "The Iron Lady" and "Shame," said she was drawn to the period's sense of style — "a certain kind of 'La Dolce Vita' glamour that I really love." She also wanted to explore the birth of modern culture in a decade often seen as staid and conformist.

"What we know about history is inherently, it repeats itself," said Morgan, counting off the show's modern themes: "Immigration, women trying to have it all, the sense of a kind of greater global threat (because of the Cold War) ... the rise of capitalism and consumerism in Britain, the birth of celebrity, and the vulnerability of celebrity."

"The Hour" has been hailed for recasting a time usually remembered in Britain as a gray era of postwar austerity. Prosperity took a long time to arrive in Britain, which emerged from World War II victorious but broke — wartime food rationing continued until the 1950s.

But by 1957, when the second series of "The Hour" opens, wages were rising, the economy was growing, new consumer goods were available and the tempting devil of rock 'n' roll was washing up on Britain's shores.

The series introduces the BBC's brash rival ITV, which launched in 1955 as Britain's first commercial TV network, and takes excursions to seedy Soho nightclubs, where journalists and politicians mingled with denizens of the London underworld.

Garai, whose television roles include the title role in Jane Austen's "Emma" and an ambitious Victorian prostitute in "The Crimson Petal and the White," said "The Hour" helped correct "the idea that somehow the '60s was the sea-change."

"The '60s was born out of the '50s," she said. "In this series, we talk a bit about Ginsberg and Kerouac. The birth of everything we identify as 'modern' was definitely seeded in the '50s and the Beat Generation."

Like Aaron Sorkin's "The Newsroom," the show is also a love letter to journalism — a much-needed one in Britain, where the profession's image has plunged after revelations of tabloid phone hacking, and where even the august BBC has been tarred by its bungled response to a sex abuse scandal.

"I still believe in the nobility of journalism," Morgan said. "I still love good journalism, and I wanted to hark back to an age when you didn't instantly tweet and you didn't instantly blog and you didn't videophone an event. The slow burn of building a story and nurturing a story and investigating a story is still fascinating to me."

"The Hour" continues a run of strong female characters for Morgan, who dared to depict the divisive former Prime Minister Margaret Thatcher in "The Iron Lady."

In Bel, she has created something still too rare on television — a sympathetic, competent woman in a position of power. Garai said it was a delight to play a strong women who is "not seen as being bossy or controlling."

Her only qualm is the show's luscious costumes, which have made Garai and her co-stars the subject of glossy magazine spreads about '50s fashion.

The real-life Bel, she says, would have worn "a tweed suit and brogues."

"You sort of think, could Bel really afford a silk two-piece on a BBC producer's salary?" Garai said. "And then everyone goes, 'Oh shut up, Romola.' So I say 'OK, OK, yes. I'll wear the beautiful suits. And breathe in.'"

Jill Lawless can be reached at http://Twitter.com/JillLawless

Read More..

CDC: HIV spread high in young gay males

NEW YORK (AP) — Health officials say 1 in 5 new HIV infections occur in a tiny segment of the population — young men who are gay or bisexual.

The government on Tuesday released new numbers that spotlight how the spread of the AIDS virus is heavily concentrated in young males who have sex with other males. Only about a quarter of new infections in the 13-to-24 age group are from injecting drugs or heterosexual sex.

The Centers for Disease Control and Prevention said blacks represented more than half of new infections in youths. The estimates are based on 2010 figures.

Overall, new U.S. HIV infections have held steady at around 50,000 annually. About 12,000 are in teens and young adults, and most youth with HIV haven't been tested.

___

Online:

CDC report: http://www.cdc.gov/vitalsigns

Read More..

Obama meets with CEOs, middle-income earners on ‘fiscal cliff’

President Barack Obama sits in front of a screen displaying a question he tweeted during a "Twitter Town Hall" …Looking for leverage in "fiscal cliff" talks with Republicans, President Barack Obama on Wednesday was to host middle-class Americans whose taxes risk going up Jan. 1 and then retreat behind closed doors for talks with top corporate executives. The White House also worked to enlist support on Twitter, highlighting a hashtag, #My2K, for tweets about the standoff.

Obama planned to deliver a speech at 11:35 a.m. to press Congress to extend Bush-era tax cuts only for individuals with income up to $200,000 and families up to $250,000. He'll be surrounded by Americans who stand to be affected if those tax cuts are allowed to expire on Jan. 1.

Obama wants to end the tax cuts for higher earners while preserving them for for the middle class. The White House says that "a typical middle-class family of four" would pay Uncle Sam an additional $2,200 unless tax cuts are extended for them.

Obama campaigned for re-election arguing that tax cuts that chiefly benefit the richest Americans must expire in order to save popular government programs that face the ax. Republicans want to extend the tax cuts for higher earners, insisting that a tax hike on that group will reduce investments that generate jobs at a time when the economy is still sputtering and unemployment remains high. The GOP has signaled it would be willing to consider boosting tax revenue as long as Democrats agree to overhaul popular entitlement programs like Medicare or Medicaid.

That $2,200 figure is the inspiration for #My2K, part of what the White House describes as an "online push" behind the president's approach. Obama has highlighted Twitter hashtags in past disputes with Republicans: #40dollars in the fight over the payroll tax holiday and #dontdoublemyrate in a feud over student loans.

The president, who spoke to top Republican and Democratic leaders over the weekend, was to make brief public remarks at the top of a meeting with his Cabinet at 3 p.m. before huddling with senior executives from major American corporations.

Here is the list of attendees, as provided by the White House:

• Frank Blake, Chairman and CEO, the Home Depot


• Lloyd Blankfein, Chairman and CEO, Goldman Sachs Group


• Joe Echeverria, CEO, Deloitte LLP


• Ken Frazier, President and CEO, Merck and Co.


• Muhtar Kent, Chairman and CEO, Coca Cola


• Terry Lundgren, Chairman, President and CEO, Macy's Inc.


• Marissa Mayer, CEO and President, Yahoo!


• Douglas Oberhelman, Chairman and CEO, Caterpillar


• Ian Read, Chairman and CEO, Pfizer


• Brian Roberts, Chairman and CEO, Comcast


• Ed Rust, Chairman and CEO, State Farm Insurance Co.


• Arne Sorenson, President and CEO, Marriott


• Randall Stephenson, Chairman and CEO, AT&T


• Patricia Woertz, President and CEO, Archer Daniels Midland

The fiscal cliff refers to an economically painful set of tax hikes and deep spending cuts that come into effect Jan. 1 unless Congress and the president reach a deal.

Read More..

China's party paper falls for Onion joke about Kim

BEIJING (AP) — The online version of China's Communist Party newspaper has hailed a report by The Onion naming North Korean dictator Kim Jong Un as the "Sexiest Man Alive" — not realizing it is satire.

The People's Daily on Tuesday ran a 55-page photo spread on its website in a tribute to the round-faced leader, under the headline "North Korea's top leader named The Onion's Sexiest Man Alive for 2012."

Quoting The Onion's spoof report, the Chinese newspaper wrote, "With his devastatingly handsome, round face, his boyish charm, and his strong, sturdy frame, this Pyongyang-bred heartthrob is every woman's dream come true."

"Blessed with an air of power that masks an unmistakable cute, cuddly side, Kim made this newspaper's editorial board swoon with his impeccable fashion sense, chic short hairstyle, and, of course, that famous smile," the People's Daily cited The Onion as saying.

The photos the People's Daily selected include Kim on horseback squinting into the light and Kim waving toward a military parade. In other photos, he is wearing sunglasses and smiling, or touring a facility with his wife.

People's Daily could not immediately be reached for comment. A man who answered the phone at the newspaper's duty office said he did not know anything about the report and requested queries be directed to their newsroom on Wednesday morning.

It is not the first time a state-run Chinese newspaper has fallen for a fictional report by the just-for-laughs The Onion.

In 2002, the Beijing Evening News, one of the capital city's biggest tabloids at the time, published as news the fictional account that the U.S. Congress wanted a new building and that it might leave Washington. The Onion article was a spoof of the way sports teams threaten to leave cities in order to get new stadiums.

Two months ago, Iran's semiofficial Fars news agency reprinted a story from The Onion about a supposed survey showing that most rural white Americans would rather vote for Iranian President Mahmoud Ahmadinejad than President Barack Obama. It included a quote from a fictional West Virginia resident saying he'd rather go to a baseball game with Ahmadinejad because "he takes national defense seriously."

Read More..

Fla. man sues ex-Elmo puppeteer, claims NY abuse

NEW YORK (AP) — A Florida man has sued the ex-Elmo puppeteer who resigned amid a sex scandal, saying the voice actor met him in New York after trolling gay telephone chat lines seeking underage boys for sex.

The lawsuit seeking unspecified damages was filed in Manhattan federal court Tuesday by a man who remains anonymous.

The man says he met Kevin Clash on a chat line when he was 16 years old in 2000 and exploring modeling opportunities in New York.

The lawsuit says Clash had numerous Elmo dolls in his apartment when he met the teen for sex. The man, now 29, is the third to make claims against Clash, who resigned from "Sesame Street" last week after 28 years.

A spokeswoman says Clash "believes this lawsuit has no merit."

Read More..

Bounce houses a party hit but kids' injuries soar

CHICAGO (AP) — They may be a big hit at kids' birthday parties, but inflatable bounce houses can be dangerous, with the number of injuries soaring in recent years, a nationwide study found.

Kids often crowd into bounce houses, and jumping up and down can send other children flying into the air, too.

The numbers suggest 30 U.S. children a day are treated in emergency rooms for broken bones, sprains, cuts and concussions from bounce house accidents. Most involve children falling inside or out of the inflated playthings, and many children get hurt when they collide with other bouncing kids.

The number of children aged 17 and younger who got emergency-room treatment for bounce house injuries has climbed along with the popularity of bounce houses — from fewer than 1,000 in 1995 to nearly 11,000 in 2010. That's a 15-fold increase, and a doubling just since 2008.

"I was surprised by the number, especially by the rapid increase in the number of injuries," said lead author Dr. Gary Smith, director of the Center for Injury Research and Policy at Nationwide Children's Hospital in Columbus, Ohio.

Amusement parks and fairs have bounce houses, and the playthings can also be rented or purchased for home use.

Smith and colleagues analyzed national surveillance data on ER treatment for nonfatal injuries linked with bounce houses, maintained by the U.S. Consumer Product Safety Commission. Their study was published online Monday in the journal Pediatrics.

Only about 3 percent of children were hospitalized, mostly for broken bones.

More than one-third of the injuries were in children aged 5 and younger. The safety commission recommends against letting children younger than 6 use full-size trampolines, and Smith said barring kids that young from even smaller, home-use bounce houses would make sense.

"There is no evidence that the size or location of an inflatable bouncer affects the injury risk," he said.

Other recommendations, often listed in manufacturers' instruction pamphlets, include not overloading bounce houses with too many kids and not allowing young children to bounce with much older, heavier kids or adults, said Laura Woodburn, a spokeswoman for the National Association of Amusement Ride Safety Officials.

The study didn't include deaths, but some accidents are fatal. Separate data from the product safety commission show four bounce house deaths from 2003 to 2007, all involving children striking their heads on a hard surface.

Several nonfatal accidents occurred last year when bounce houses collapsed or were lifted by high winds.

A group that issues voluntary industry standards says bounce houses should be supervised by trained operators and recommends that bouncers be prohibited from doing flips and purposefully colliding with others, the study authors noted.

Bounce house injuries are similar to those linked with trampolines, and the American Academy of Pediatrics has recommended against using trampolines at home. Policymakers should consider whether bounce houses warrant similar precautions, the authors said.

___

Online:

Pediatrics: http://www.pediatrics.org

Trade group: http://www.naarso.com

___

AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

Read More..

Consumer confidence hits four-year high

WASHINGTON (AP) — U.S. consumer confidence rose this month to its highest level in almost five years, helped by a better outlook for hiring over the next six months.

The Conference Board said Tuesday that its consumer confidence index rose to 73.7 in November from 73.1 in October. Both are the best readings since February 2008.

The index is still below the level of 90 that is consistent with a healthy economy. It last reached that point in December 2007, the first month of the Great Recession. But the index has increased from the all-time low of 25.3 touched in February 2009.

Higher consumer confidence could translate into a more robust holiday shopping season and stronger economic growth. Consumer spending drives nearly 70 percent of economic activity.

The report also supported the findings of a separate survey from the University of Michigan released last week, which showed consumer sentiment at a five-year high. Still, both surveys increased at slower rates than the previous month.

Americans are growing more optimistic because they see the job market improving, the Conference Board said. Employers added 171,000 jobs in October and more jobs were created in August and September than first thought.

The Conference Board surveyed approximately 2,500 households in the first two weeks of the month. Those surveyed were asked how they felt about the economy and job market now, as well as where they see both going in six months. They were also asked if they planned to make a major purchase or take a vacation in the next six months.

The survey found that most people viewed current conditions the same as in October. But the percentage of Americans who expect more jobs to be available in the next six months rose to 20.3 percent, from 19.7 percent in October.

And the percentage of Americans who say jobs are "plentiful" rose to 11.2 percent from 10.4 percent in the previous month. That's the highest level in four years and a good sign for hiring this month.

More Americans said they plan to buy a home, an appliance or take a vacation, the survey found. About 6.9 percent said they planned to buy a home, the highest on record. But the percentage expecting to buy a car fell.

Confidence among households earning $50,000 and higher slipped to 88 from 91.7 in October. But among the poorest households, those earning less than $15,000, confidence jumped to 56.2 from 50.2.

Many of the participants in the Michigan survey said they expect the unemployment rate to drop over the next six months. Still, some expressed concerns about the "fiscal cliff," a package of sharp tax increases and spending cuts that will take effect next year unless Congress and the White House can replace them. The tax increases would leave consumers with much less money to spend.

A better housing market may also be contributing to consumers' better mood.

Standard & Poor's/Case-Shiller reported Tuesday that its 20-city index of home prices rose 3 percent in September compared with the same month last year. Prices also gained 3.6 percent in the July-September quarter compared with the same quarter in 2011.

Across the nation, prices increased in 18 of 20 cities over the 12-month period.

Read More..