Catalan election weakens bid for independence from Spain












BARCELONA, Spain (Reuters) – Separatists in Spain’s Catalonia won regional elections on Sunday but failed to get the resounding mandate they need to push convincingly for a referendum on independence.


Catalan President Artur Mas, who has implemented unpopular spending cuts in an economic crisis, had called an early election to test support for his new drive for independence for Catalonia, a wealthy region in northeastern Spain.












Voters handed almost two thirds of the 135-seat local parliament to four different Catalan separatist parties that all want to hold a referendum on secession from Spain.


But they punished the main separatist group, Mas’s Convergence and Union alliance, or CiU, cutting back its seats to 50 from 62. That will make it difficult for Mas to lead a united drive to hold a referendum in defiance of the constitution and the central government in Madrid.


“Mas clearly made a mistake. He promoted a separatist agenda and the people have told him they want other people to carry out his agenda,” said Jose Ignacio Torreblanca, head of the European Council on Foreign Relations’ Madrid office.


The result will come as a relief for Spanish Prime Minister Mariano Rajoy, who is battling a deep recession and 25 percent unemployment while he struggles to cut high borrowing costs by convincing investors of Spain’s fiscal and political stability.


Mas, surrounded by supporters chanting “independence, independence”, said he would still try to carry out the referendum but added that, “it is more complex, but there is no need to give up on the process.”


Resurgent Catalan separatism had become a major headache for Rajoy, threatening to provoke a constitutional crisis over the legality of a referendum just as he is trying to concentrate on a possible international bailout for troubled Spain.


Frustration over the Spanish tax system, under which Catalonia shares some of its tax revenue with the rest of the country, has revived a long-dormant secessionist spirit in Catalonia. Catalans believe if they could invest more of their taxes at home their economy would prosper.


Mas had tried to ride the separatist wave after hundreds of thousands demonstrated in the streets in September, demanding independence for their region, which has its own language and sees itself as distinct from the rest of Spain.


In a speech to supporters on Sunday night, Mas recognized that he had lost ground and though CiU is still the largest group in Catalan‘s parliament, he said would need the support of another party to govern and to continue pushing through tough economic measures.


“We’ve fallen well short of the majority we had. We’ve been ruling for two years under very tough circumstances,” he said.


Traditional separatists the Republican Left, or ERC, won the second biggest presence in the Catalan parliament, with 21 seats. The Socialists took 20 seats. And Rajoy’s center-right People’s Party won 19.


Three other parties, including two that want a referendum on independence, split the remaining 25 seats. ECFR’s Torreblanca said the Catalan elections were similar to those around Europe in that economic woes have benefited marginal political groups, while larger, traditional parties have lost ground.


MAS MADE BIG BET


Mas’s bet on separatism may have helped out the big winner of Sunday’s election, the Republican Left, which more than doubled its seats in the Catalan parliament to 21 from 10,


“He talked about it so much that he ended up helping the only party that has always been for independence, which is the Republican Left,” said political analyst Ismael Crespo at the Ortega y Gasset research institute.


A legal referendum would require a change to the constitution, and Spain’s main parties in the national parliament, the Socialists and Rajoy’s People’s Party, have shown no appetite for that.


Mas’s CiU had traditionally been a pro-business moderate nationalist party that fought for more autonomy and self-governance for Catalonia without breaking away from Spain.


Mas broke with that tradition in September when he made a big bet on a referendum.


Catalonia, with 7.5 million people, is more populous than Denmark. Its economy is almost as big as Portugal’s and it generates one fifth of Spanish gross domestic product.


After a decade of overspending during Spain’s real estate boom, Catalonia and most of the country’s other regions are struggling to pay state workers and meet debt payments. Unemployment has soared and spending on hospitals and schools has been cut.


Mas was one of the first Spanish leaders to embark on harsh austerity measures after Catalonia’s public deficit soared and the regional government was shunned by debt markets.


Josep Freixas, 37 and unemployed, voted for CiU but recognized the party had lost seats “because people have been really affected by the spending cuts and by the crisis.”


At CiU headquarters on Sunday night Freixas carried a rolled up pro-independence flag – a single star against yellow and red stripes – that has become a symbol of the separatist movement.


Turnout was very high in the election, 68 percent, 10 percentage points higher than in the previous vote two years ago.


Many Catalans are angry that Rajoy has refused to negotiate a new tax deal with their largely self-governing region. Annually, an estimated 16 billion euros ($ 21 billion) in taxes paid in Catalonia, about 8 percent of its economic output, is not returned to the region.


Home to car factories and banks and birthplace of surrealist painter Salvador Dali and architect Antoni Gaudi, the region also has one of the world’s most successful football clubs, FC Barcelona.


Wary that separatism could spread to the Basque Country and beyond, Rajoy said this week that the Catalan election was more important than general elections.


(The story corrects billion to million in 20th paragraph.)


(Editing by Myra MacDonald and Sandra Maler)


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Israel successfully tests missile defense system












JERUSALEM (AP) — Israel successfully tested its newest missile defense system Sunday, the military said, a step toward making the third leg of what Israel calls its “multilayer missile defense” operational.


The “David’s Sling” system is designed to stop mid-range missiles. It successfully passed its test, shooting down its first missile in a drill Sunday in southern Israel, the military said.












The system is designed to intercept projectiles with ranges of up to 300 kilometers (180 miles).


Israel has also deployed Arrow systems for longer-range threats from Iran. The Iron Dome protects against short-range rockets fired by militants in the Gaza Strip and Hezbollah guerrillas in Lebanon. Iron Dome shot down hundreds of rockets from Gaza in this month’s round of fighting.


Israeli Defense Minister Ehud Barak said the success of Iron Dome highlighted the “immense importance” of such systems.


“David’s Sling,” also known “Magic Wand,” is developed by Israel’s Rafael Advanced Defense Systems and U.S.-based Raytheon Co. and is primarily designed to counter the large arsenal of Hezbollah rockets in Lebanon.


The military said the program, which is on schedule for deployment in 2014, would “provide an additional layer of defense against ballistic missiles.”


The next generation of the Arrow, now in the development stage, is set to be deployed in 2016. Called the Arrow 3, it is designed to strike its target outside the atmosphere, intercepting missiles closer to their launch sites. Together, the two Arrow systems would provide two chances to strike down incoming missiles.


Israel also uses U.S.-made Patriot missile defense batteries against mid-range missiles, though these failed to hit any of the 39 Scud missiles fired at Israel from Iraq In the first Gulf War 20 years ago. Manufacturers say the Patriot system has been improved since then.


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HP says products may have been sold to Syria by others












(Reuters) – Hewlett Packard Co said in a letter made public on Friday that its products could have been delivered to Syria through resellers or distributors, but the world’s largest PC maker affirmed it did not sell directly to the country.


The letter was a response to a request from the U.S. Securities and Exchange Commission‘s Office of Global Security Risk that asked whether HP’s products were sold in countries where they would be subject to U.S. sanctions.












“We are aware of November 2011 news reports that your equipment was installed by the Italian company, Area SpA, in Syria as part of a nationwide surveillance and tracking system designed to monitor people in that country,” the SEC wrote in its request.


“Please describe to us the nature, duration, and extent of your past, current, and anticipated contacts with Syria and Iran, whether through subsidiaries, distributors, resellers, vendors, retailers, or other direct or indirect arrangements.”


In a letter dated October 9, HP said it had not authorized the sale of products to Syria.


Instead, HP said the Italian surveillance company had likely obtained its products from an HP partner that was unaware of their ultimate destination.


In another October 9 letter to the agency, HP said it ended its contract with Area SpA in April.


Calls to HP seeking further comment were unanswered as were calls to Area SpA.


HP’s overseas subsidiaries ended sales of printers and related supplies to third-party distributors and resellers with customers in Iran in early 2009, the company wrote.


But because its products are often sold by others through indirect channels without its knowledge or consent “it is always possible that products may be diverted to Iran or Syria after being sold to channel partners, such as distributors and resellers,” HP said.


Reuters has documented how banned computer equipment from U.S. companies has made its way to Iran’s largest telecommunications company through China-based ZTE.


Networking equipment maker Cisco Systems Inc has since cut its ties to ZTE.


HP said in both letters that it would continue to work with ZTE, but it had conducted an internal investigation relating to an alleged sale of its products to MTN Irancell, Iran’s second largest mobile carrier.


The company was also asked about EDS – an IT outsourcing company that HP bought in 2008 – and any activity in Iran, Syria and Sudan.


HP said it had the same policy regarding Sudan as it did on sales to Iran or Syria.


HP is eager to avoid more negative publicity after surprising the market on Tuesday with an $ 8.8 billion write-down on its $ 11.1 billion acquisition of software group Autonomy, accusing the British company of improper accounting to inflate sales.


Autonomy has denied any wrongdoing.


(Reporting by Nicola Leske in New York. Editing by Leslie Gevirtz and Andre Grenon)


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First Person: Unemployed, Disabled and Hungry for Work












Five million Americans are among the long-term unemployed–those without a job for 27 weeks or longer–according to the Bureau of Labor Statistics. Another 7.3 million are looking for work, while the unemployment rate sits at 7.9 percent. Numbers aside, individual stories illustrate how America is affected. To see how joblessness hits home, Yahoo News asked unemployed workers to share their job-hunting stories. Here’s one.


FIRST PERSON | I am 40 and live in Racine, Wis. I have been unemployed since I was 33. I try to find work, but I’ve been disabled since 27, and I do not collect Social Security or other income. On job applications, when I am asked if I have any disabilities, I answer yes.












I have even tried to travel to different states for employment. I am seeking employment where I can. I have tried Lowe’s, Home Depot and other similar stores. All I get are letters saying I do not qualify for employment.


By trade, I am a tattoo artist, a job I have been very good at until I became disabled. I have shoulder impingement syndrome, which consists of some of the following: torn ligaments, torn tendons, bone spurs, bursitis and arthritis.


And constant pain. I feel the weather. I hardly sleep. I wish I could be somewhere else, as it is hard on my mind to deal with on a daily basis.


Still, I try to find work where I can in this tough economy, and I am on several lists to be called and never have been called to date.


I am too proud to try to get Social Security. I cannot even afford insurance to get my condition fixed. I even have applied for local state insurance to get the problem resolved so I can work again, always with no luck. So I have remained unemployed now for over 10 years and going.


I injured myself, and I am not able to lift more than 10 pounds at a time or stand or sit for long periods of time.


I just want a job so I can try to cover the medical expenses myself since I cannot get help. Surgery costs are around $ 18,000, which sounds pretty reasonable to me.


I am no stranger to hard work. Since 12, I cut grass, shoveled snow, painted houses and fences, swept chimneys, worked in heat treatment plants with dirt and oil, worked in the casting of hot metals, laid brick, made bathroom sinks, swept floors in factories, did drill-press work, sanding work, and worked at fast food places.


I do not lie to get jobs or hid my injury. I do want to work, but I worry now that my disability will mean I won’t be hired by companies because they’re afraid it will come back on them and their company.


I cannot afford private insurance as I do not have steady income. Now I find whatever I can do to reach my goal of paying for my own surgery.


It is a sad world when you live in pain, day in and day out, and you want and need to find work.


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Germany rejects Swiss tax deal













Germany’s upper house of parliament has rejected a deal with Switzerland to tax German assets held in Swiss bank accounts.












The deal would have allowed Germans with undeclared assets in Switzerland to avoid punishment by making a one-off payment of between 21% and 41% of the value of their assets.


The deal had been negotiated in April and was due to take effect in January.


But it needed to be ratified by both parliaments.


The rejection by the German upper house, the Bundesrat, prolongs the dispute between the two countries over how to deal with the estimated 180-200bn euros (£145-160bn) of German assets hidden in Switzerland.


German Finance Minister Wolfgang Schaeuble had called for support for the deal, saying: “The agreement tries to find a better solution for a situation which is unsatisfactory.”


But Norbert Walter-Borjans, of the main opposition Social Democrats, told the Bundesrat it was a deal which made “honest taxpayers feel like fools”.


Swiss Finance Minister Eveline Widmer-Schlumpf said her government remained “committed to a successful ratification”.


And the Swiss Bankers Association said in a statement: “The German upper house has missed a major opportunity to reach a fair, optimum and sustainable solution for all parties to definitively settle the bilateral tax issues.”


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Egypt reformist warns of turmoil from Morsi decree












CAIRO (AP) — Prominent Egyptian democracy advocate Mohammed ElBaradei warned Saturday of increasing turmoil that could potentially lead to the military stepping in unless the Islamist president rescinds his new, near absolute powers, as the country’s long fragmented opposition sought to unite and rally new protests.


Egypt‘s liberal and secular forces — long divided, weakened and uncertain amid the rise of Islamist parties to power — are seeking to rally themselves in response to the decrees issued this week by President Mohammed Morsi. The president granted himself sweeping powers to “protect the revolution” and made himself immune to judicial oversight.












The judiciary, which was the main target of Morsi’s edicts, pushed back Saturday. The country’s highest body of judges, the Supreme Judical Council, called his decrees an “unprecedented assault.” Courts in the Mediterranean city of Alexandria announced a work suspension until the decrees are lifted.


Outside the high court building in Cairo, several hundred demonstrators rallied against Morsi, chanting, “Leave! Leave!” echoing the slogan used against former leader Hosni Mubarak in last year’s uprising that ousted him. Police fired tear gas to disperse a crowd of young men who were shooting flares outside the court.


The edicts issued Wednesday have galvanized anger brewing against Morsi and the Muslim Brotherhood, from which he hails, ever since he took office in June as Egypt’s first freely elected president. Critics accuse the Brotherhood — which has dominated elections the past year — and other Islamists of monopolizing power and doing little to bring real reform or address Egypt’s mounting economic and security woes.


Oppositon groups have called for new nationwide rallies Tuesday — and the Muslim Brotherhood has called for rallies supporting Morsi the same day, setting the stage for new violence.


Morsi supporters counter that the edicts were necessary to prevent the courts, which already dissolved the elected lower house of parliament, from further holding up moves to stability by disbanding the assembly writing the new constitution, as judges were considering doing. Like parliament was, the assembly is dominated by Islamists. Morsi accuses Mubarak loyalists in the judiciary of seeking to thwart the revolution’s goals and barred the judiciary from disbanding the constitutional assembly or parliament’s upper house.


In an interview with a handful of journalists, including The Associated Press, Nobel Peace laureate ElBaradei raised alarm over the impact of Morsi’s rulings, saying he had become “a new pharaoh.”


“There is a good deal of anger, chaos, confusion. Violence is spreading to many places and state authority is starting to erode slowly,” he said. “We hope that we can manage to do a smooth transition without plunging the country into a cycle of violence. But I don’t see this happening without Mr. Morsi rescinding all of this.”


Speaking of Egypt’s powerful military, ElBaradei said, “I am sure they are as worried as everyone else. You cannot exclude that the army will intervene to restore law and order” if the situation gets out of hand.


But anti-Morsi factions are chronically divided, with revolutionary youth activists, new liberal political parties that have struggled to build a public base and figures from the Mubarak era, all of whom distrust each other. The judiciary is also an uncomfortable cause for some to back, since it includes many Mubarak appointees who even Morsi opponents criticize as too tied to the old regime.


Opponents say the edicts gave Morsi near dictatorial powers, neutering the judiciary when he already holds both executive and legislative powers. One of his most controversial edicts gave him the right to take any steps to stop “threats to the revolution,” vague wording that activists say harkens back to Mubarak-era emergency laws.


Tens of thousands of people took to the streets in nationwide protests on Friday, sparking clashes between anti-and pro-Morsi crowds in several cities that left more than 200 people wounded.


On Saturday, new clashed broke out in the southern city of Assiut. Morsi opponents and members of the Muslim Brotherhood swung sticks and threw stones at each other outside the offices of the Brotherhood‘s political party, leaving at least seven injured.


ElBaradei and a six other prominent liberal leaders have announced the formation of a National Salvation Front aimed at rallying all non-Islamist groups together to force Morsi to rescind his edicts.


The National Salvation Front leadership includes several who ran against Morsi in this year’s presidential race — Hamdeen Sabahi, who finished a close third, former foreign minister Amr Moussa and moderate Islamist Abdel-Moneim Aboul-Fotouh. ElBaradei says the group is also pushing for the creation of a new constitutional assembly and a unity government.


ElBaradei said it would be a long process to persuade Morsi that he “cannot get away with murder.”


“There is no middle ground, no dialogue before he rescinds this declaration. There is no room for dialogue until then.”


The grouping seems to represent a newly assertive political foray by ElBaradei, the former chief of the U.N. nuclear watchdog agency. ElBaradei returned to Egypt in the year before Mubarak’s fall, speaking out against his rule, and was influential with many of the youth groups that launched the anti-Mubarak revolution.


But since Mubarak’s fall, he has been criticized by some as too Westernized, elite and Hamlet-ish, reluctant to fully assert himself as an opposition leader.


The Brotherhood‘s Freedom and Justice political party, once headed by Morsi, said Saturday in a statement that the president’s decision protects the revolution against former regime figures who have tried to erode elected institutions and were threatening to dissolve the constitutional assembly.


The Brotherhood warned in another statement that there were forces trying to overthrow the elected president in order to return to power. It said Morsi has a mandate to lead, having defeated one of Mubarak’s former prime ministers this summer in a closely contested election.


Morsi’s edicts also removed Abdel-Meguid Mahmoud, the prosecutor general first appointed by Mubarak, who many Egyptians accused of not prosecuting former regime figures strongly enough.


Speaking to a gathering of judges cheering support for him at the high court building in Cairo, Mahmoud warned of a “vicious campaign” against state institutions. He also said judicial authorities are looking into the legality of the decision to remove him — setting up a Catch-22 of legitimacy, since under Morsi’s decree, the courts cannot overturn any of his decisions.


“I thank you for your support of judicial independence,” he told the judges.


“Morsi will have to reverse his decision to avoid the anger of the people,” said Ahmed Badrawy, a labor ministry employee protesting at the courthouse. “We do not want to have an Iranian system here,” he added, referring to fears that hardcore Islamists may try to turn Egypt into a theocracy.


Several hundred protesters remained in Cairo’s Tahrir Square Saturday, where a number of tents have been erected in a sit-in following nearly a week of clashes with riot police.


____


Brian Rohan contributed to this report from Cairo.


Middle East News Headlines – Yahoo! News


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Nicole ‘Snooki’ Polizzi, Miley Cyrus Share Birthday Joy On Twitter












Jersey Shore” star Nicole “Snooki” Polizzi was celebrating her 25th birthday on Black Friday, but it wasn’t the shops that provided her with her favorite present.


The reality star and new mom Tweeted that her baby boy — Lorenzo, who was born in August — was the most rewarding gift of all.












PLAY IT NOW: The Jersey Shore Cast Makes A Plea To Help ‘Restore The Shore’


“My favorite birthday gift,” she Tweeted, linking to a photo of the MTV star holding her little one. (Click HERE to see the full pic.)


But, Snooki didn’t leave out her love for her fiance, Lorenzo’s daddy — Jionni LaValle, thanking him for celebrating her big day with her.


VIEW THE PHOTOS: We Did It All For The ‘Snooki’! Hot Shots Of The ‘Jersey Shore’ Star!


“Best Birthday ever with my fiance @JLaValle and Lorenzo,” she wrote.


In typical Snooki fashion, though, she wasn’t the perfect birthday girl. She made sure to emphasize it was her big day.


“Lol I’m being that annoying birthday girl to @JLaValle saying ‘but it’s my birthday today you have to,’” she Tweeted.


VIEW THE PHOTOS: She’s Just Bein’ Miley!


Snooki wasn’t the only celeb celebrating their birthday on Black Friday. Miley Cyrus turned 20, and hit Twitter to thank her fans for their well wishes.


“So much BIRFFFDAY love!” she wrote. “i wish everyday was like this.”


VIEW THE PHOTOS: Miley Cyrus & Liam Hemsworth: Young Hollywood’s Hot Power Couple


Copyright 2012 by NBC Universal, Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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Marc Anthony comes to aid of Dominican orphanage












SANTO DOMINGO, Dominican Republic (AP) — Singer Marc Anthony is coming to the aid of an orphanage in the Dominican Republic.


A foundation run by Anthony with music and sports producer Henry Cardenas plans to build a new residence hall, classrooms and a baseball field for the Children of Christ orphanage in the eastern city of La Romana. Anthony attended the groundbreaking ceremony Friday with his model girlfriend Shannon de Lima.












Children of Christ Foundation Director Sonia Hane said Anthony visited the orphanage previously and decided to help. His Maestro Cares Foundation raised $ 200,000 for the expansion on land donated by a sugar company. The orphanage was founded in 1996 for children who were abused or abandoned or whose parents were unable to care for them.


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Goldman Sachs sets value for minority holders of Amil stock












RIO DE JANEIRO (Reuters) – United Health Group Inc should pay minority shareholders in Brazilian health-insurance group Amil Participacoes SA between 25.84 reais and 27.07 reais ($ 12.42 and $ 13.01) a share for their stock as part of a takeover announced in October, Amil said in a statement on Friday.


The price was determined by the Brazilian unit of Goldman Sachs Group Inc which was hired to set a value for Amil shares, the statement said. U.S.-based United Health agreed to pay $ 4.9 billion for Amil in its largest-ever foreign acquisition that was unveiled on October 8.












When the minority stakes are purchased, Amil will be de-listed from the Sao Paulo BM&FBovespa exchange.


The upper range of the Goldman Sach‘s estimate is 12 percent below the 30.74 reais that United Health paid for its controlling stake.


Under the takeover agreement, United Health will buy out nearly all minority shareholders and raise its stake to 90 percent of Sao Paulo-based Amil, which in addition to insurance operates hospitals.


The remaining 10 percent will be held by Amil founder and Chief Executive Edson Bueno and his partner Dulce Pugliese. Bueno has also agreed to buy $ 470 million of United Health shares. Bueno will continue to manage the company.


($ 1 = 2.08 Brazilian reais.)


(Reporting by Jeb Blount and Juliana Schincariol; Editing by Tim Dobbyn)


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Wall St Week Ahead: Political wrangling to pinch market’s nerves












NEW YORK (Reuters) – Volatility is the name of this game.


With the S&P 500 above 1,400 following five days of gains, traders will be hard pressed not to cash in on the advance at the first sign of trouble during negotiations over tax hikes and spending cuts that resume next week in Washington.












President Barack Obama and U.S. congressional leaders are expected to discuss ways to reduce the budget deficit and avoid the “fiscal cliff” of automatic tax increases and spending cuts in 2013 that could tip the economy into recession.


As politicians make their case, markets could react with wild swings.


The CBOE Volatility Index <.VIX>, known as the VIX, Wall Street‘s favorite barometer of market anxiety that usually moves in an inverse relationship with the S&P 500, is in a long-term decline with its 200-day moving average at its lowest in five years. The VIX could spike if dealings in Washington begin to stall.


“If the fiscal cliff happens, a lot of major assets will be down on a short-term basis because of the fear factor and the chaos factor,” said Yu-Dee Chang, chief trader and sole principal of ACE Investments in Virginia.


“So whatever you are in, you’re going to lose some money unless you go long the VIX and short the market. The ‘upside risk’ there is some kind of grand bargain, and then the market goes crazy.”


He set the chances of the economy going over the cliff at only about 5 percent.


Many in the market agree there will be some sort of agreement that will fuel a rally, but the road there will be full of political landmines as Democrats and Republicans dig in on positions defended during the recent election.


Liberals want tax increases on the wealthiest Americans while protecting progressive advances in healthcare, while conservatives make a case for deep cuts in programs for the poor and a widening of the tax base to raise revenues without lifting tax rates.


“Both parties will raise the stakes and the pressure on the opposing side, so the market is going to feel much more concerned,” said Tim Leach, chief investment officer of U.S. Bank Wealth Management in San Francisco.


“The administration feels really confident at this point, or a little more than the Republican side of Congress may feel,” he said. “But it’s still a balanced-power Congress so neither side can feel that they can act with impunity.”


THE MIDDLE EAST AND EUROPE


Tension in the Middle East and unresolved talks in Europe over aid for Greece could add to the uncertainty and volatility on Wall Street could surge, analysts say.


An Egypt-brokered ceasefire between Israel and Hamas came into force late on Wednesday after a week of conflict, but it was broken with the shooting of a Palestinian man by Israeli soldiers, according to Palestine’s foreign minister.


Buoyed by accolades from around the world for mediating the truce, Egyptian President Mohamed Mursi assumed sweeping powers, angering his opponents and prompting violent clashes in central Cairo and other cities on Friday.


“Those kinds of potential large-scale conflicts can certainly overwhelm some of the fundamental data here at home,” said U.S. Bank’s Leach.


“We are trying to keep in mind the idea that there are a lot of factors that are probably going to contribute to higher volatility.”


On a brighter note for markets, Greece’s finance minister said the International Monetary Fund has relaxed its debt-cutting target for Greece and a gap of only $ 13 billion remains to be filled for a vital aid installment to be paid.


Still, a deal has not been struck, and Greece is increasingly frustrated at its lenders, still squabbling over a deal to unlock fresh aid even though Athens has pushed through unpopular austerity cuts.


HOUSING DATA COULD CONFIRM RECOVERY


Next week is heavy on economic data, especially on the housing front. Some of the numbers have been affected by Superstorm Sandy, which hit the U.S. East Coast more than three weeks ago, killing more than 100 people in the United States alone and leaving billions of dollars in damages.


The housing data, though, could continue to confirm a rebound in the sector that is seen as a necessary step to unlock spending and lower the stubbornly high unemployment rate.


Tuesday’s S&P/Case-Shiller home price index for September is expected to show the eighth straight month of increases, extending the longest continuous string of gains since prices were boosted by a homebuyer tax credit in 2009 and 2010.


New home sales for October, due on Wednesday, and October pending home sales data, due on Thursday, are also expected to show a stronger housing market.


Other data highlights next week include durable goods orders for October and consumer confidence for November on Tuesday and the Chicago Purchasing Managers Index on Friday.


At Friday’s close, the S&P 500 wrapped up its second-best week of the year with a 3.6 percent gain. Encouraging economic data next week could confirm that regardless of the ups and downs that the fiscal cliff could bring, the market’s fundamentals are solid.


Jeff Morris, head of U.S. equities at Standard Life Investments in Boston, said that “it’s kind of noise here” in terms of whether the market has spent “a few days up or down. It has made some solid gains over the course of the year as the housing recovery has come into view, and that’s what’s underpinning the market at these levels.


“I would caution against reading too much into the next few days.”


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: rodrigo.campos(at)thomsonreuters.com)


(Reporting by Rodrigo Campos; Editing by Tim Dobbyn and Jan Paschal)


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