NEWS,26.02.2013

US consumer confidence rebounds

Americans' confidence in the economy rebounded in February, reversing three straight months of declines as shoppers began adjusting to a payroll tax hike last month. The New York-based Conference Board says on Tuesday that its Consumer Confidence Index stands at 69.6, up from a revised 58.4 in January. Economists had expected 60.5, according to research firm FactSet.It was the highest reading since November's 71.5. Confidence has fallen since then as shoppers were worried about growing economic uncertainty.The consumer confidence indicator is watched closely because consumer spending accounts for 70% of US economic activity. The figure is still well below the 90 reading that indicates a healthy economy.

Denmark to cut corporate taxes

Denmark's government on Tuesday presented a controversial growth package that would reduce corporate taxes and increase public spending to spur growth and create 150 000 jobs. The centre-left coalition plan calls for a progressive reduction in corporate taxes from the current 25% to 22%, as well as an increase in public investment of six billion kroner (€804m or $1.05bn) to stimulate the economy."We are creating jobs now, but we are also getting Denmark ready to grab the economic recovery when the internal slump turns," Social Democratic Prime Minister Helle Thorning-Schmidt told a news conference, adding that while there were no quick fixes, the growth plan was a "step in the right direction."At the same time, Economy Minister Margrethe Vestager said no new taxes would be imposed on businesses."We are sending a clear signal to companies that we do not plan any new taxes and duties for businesses … This is not just a growth package, it is a complete growth plan towards 2020," she said.The corporate tax reduction would however not include a decrease in the tax on labour costs in the financial sector, nor would it apply to North Sea oil extraction.The proposal also calls for lower energy duties for companies, an increase in planned public sector investment and a reintroduction of tax rebates for Danes who make home improvements.While Danish industry was positive, the unions were not, with eight unions having written an open letter to the prime minister complaining that reduced corporate tax would be at the expense of public investment.The move came one week after a proposal to overhaul the student grant system, and a social security reform that would force all unemployed under-30's to pursue an education rather than live off social security.All three government proposals must now be negotiated with other parliamentary parties in order to win a majority.Although the left-wing Red Greens are expected to vote against the government's proposals, centre-right parties are expected to approve them.

US pushes trans-Atlantic free trade

US Secretary of State John Kerry pushed on Tuesday for a free-trade agreement between the United States and Europe, saying it is a priority for President Barack Obama's second term that would help create jobs and growth on both sides of the Atlantic.The proposal has been garnering support on both continents, with Obama saying earlier this month that the US believes "trade that is free and fair across the Atlantic supports millions of good-paying American jobs."Speaking after talks on Tuesday with Chancellor Angela Merkel and Foreign Minister Guido Westerwelle, Kerry said such an agreement would be a boon to the US and Europe."We think this is something that can help lift the economy of Europe, strengthen our economy, create jobs for Americans, for Germans for all Europeans, and create one of the largest allied markets in the world," he told reporters alongside Merkel. "It will help raise standards, it will help break down barriers, and we believe it is good for all of us."Germany, Europe's largest economy, has strongly supported the idea and Westerwelle said that he hoped the groundwork could be done quicikly to begin negotiations with the U.S. on the agreement by the summer."We see here a window of opportunity," Westerwelle said after his one-on-one meeting with Kerry. "It's a window of opportunity that we need to seize in the interest of growth, and jobs for Germany, the United States and Europe."Still, negotiations may not be easy or short, with agriculture likely to be one tricky area.Kerry's swing through Berlin was his second stop on a nine-country dash through Europe and the Middle East, Kerry's first trip as secretary of state.He started his trip in Britain and heads next to France.

N Korea leader monitors 'actual war' drill

North Korean leader Kim Jong-Un oversaw a live-fire artillery drill aimed at simulating an "actual war", state media said on Tuesday, a day after South Korea swore in its first female president."An endless barrage of shells were fired by artillery pieces on 'enemy positions', their roar rocking heaven and earth, and all of them were enveloped in flames," the Korean Central News Agency (KCNA) said."Feasting his eyes at the 'enemy positions' in flames, [Kim] was satisfied," the official agency added.KCNA gave no precise time or location for the drill, but its announcement followed Monday's presidential inauguration in the South, at which new leader Park Geun-Hye signalled a zero-tolerance policy to North Korea provocation.According to KCNA, Kim ordered the live fire exercise to test the capability of artillery units "to fight an actual war".It marked the latest in a series of high-profile military inspections by Kim following the North's nuclear test earlier this month.Last week Kim oversaw an air force demonstration, a paratroop drill and a separate tactical attack exercise combined with live shell firing.In her inauguration speech, Park demanded that Pyongyang "abandon its nuclear ambitions" immediately and warned that the North's test was a challenge to the future survival of the Korean people.While promising to pursue the trust-building policy with Pyongyang that she had promised in her campaign, Park stressed she would never compromise South Korea's national security.Cross-border tension has been high since the North's 12 February test which sparked global fury and condemnation from the UN Security Council.Pyongyang said the test was a response to a tightening of sanctions after the North's successful long-range rocket launch in December, which the international community condemned as a disguised ballistic missile test.

Tepid response over Castro retirement

Cuban-Americans in Miami are reacting with a collective shrug over the news that Raul Castro plans to retire from Cuba's presidency within five years.Many believe Castro's departure and the ascendance of Miguel Diaz-Canel won't bring change.Exiles such as 74-year-old Alberto Faustino have been waiting years for the Castro brothers to leave or be forced out. Fidel Castro handed power to his brother after falling ill in 2006. Raul Castro said on Sunday that his new presidential term would be his last.Diaz-Canel has been tapped to be Raul Castro's top lieutenant and possible successor.Faustino and other Cuban-Americans said the absence of free elections and continuation of rule by the Communist Party mean there will be little to celebrate when Castro is gone.Meanwhile, AFP reported that Venezuelan President Hugo Chavez, who is convalescing in a Caracas hospital, issued a statement on Monday congratulating President Castro for his re-election to a final five-year term.Chavez sent his "warmest congratulations to the revolutionary leader Raul Castro" and wished him "great success" after the National Assembly re-elected him on Sunday.The Venezuelan leftist leader has forged close ties with Cuba's the retired Fidel and his brother Raul. Chavez has undergone four rounds of cancer surgery in Cuba since June 2011.Chavez returned to Caracas on 18 February after spending two months in a Cuban hospital following his latest surgery in Havana.The Venezuelan government has issued sporadic statements since Chavez's 11 December operation and his face has only been seen in four pictures released on 15 February, showing him in bed, smiling with his two daughters.