After the Big Snowfall, the Struggle to Dig Out





Residents and emergency workers in the Northeast struggled to dig out Sunday after a gigantic midwinter storm left much of the region buried under drifting snow and reeling from gale-force wind.




As temperatures dipped into the teens across the region, utility crews worked to restore power to the more than 650,000 customers who were blacked out by the storm.


By Sunday morning, more than 300,000 customers remained without power, mostly in southeastern Massachusetts and Cape Cod, Rhode Island and the shore line of eastern Connecticut. NStar, which serves Massachusetts, said that many regions were still too dangerous to send in crews.


Road crews also labored into the night to remove snow from streets and sidewalks, piling it in whatever open space they could find. In Connecticut, crews were using a front-end loader late Saturday night to remove snow from I-95 near Fairfield.


The storm, spawned by the collision of two weather systems, touched more than 40 million people, though early reports suggested it accounted for only a handful of deaths. One awful case involved a young boy shoveling snow with his father in the Dorchester neighborhood of Boston who died of carbon monoxide poisoning after he retreated inside a car to warm up. The exhaust pipe was blocked by snow.


More than three feet of snow fell on parts of Connecticut, and more than two feet accumulated on Long Island and in Massachusetts, causing coastal flooding that forced evacuations of some Massachusetts communities. The Weather Service said it had reports out of New Haven County of 36.2 inches in Oxford and 38 inches in Milford. In Commack, on Long Island, 29.1 inches of snow and 27.5 inches at MacArthur Airport in Islip. In Boston, the official accumulation was 24.9 inches, the fifth highest in city history.


Some streets in Connecticut resembled ski slopes or mountain passes, and Gov. Dannel P. Malloy asked the federal government on Saturday for help.


“As we continue with the recovery from this historic winter storm, I am asking the federal government to provide us assistance with this process,” Governor Malloy said.


Airlines were also trying to return to normal Sunday, after canceling more than 5,000 flights since Friday; the fallout could reverberate for days. Logan International Airport in Boston and the three major airports around New York City have all resumed operations.


For many areas, “this storm will rank in the top five of recorded snowstorms,” said David Stark, a meteorologist for the National Weather Service in eastern Suffolk County on Long Island. Outside his office, measurements have been taken since 1949, and this storm beat them all with 30.9 inches.


“The way this evolved was a very classic winter nor’easter,” Mr. Stark said. “The way it formed and moved is well understood, and it is the type of situation we have seen in the past — but this storm brought more moisture and therefore more snow.”


Mayor Michael R. Bloomberg expressed relief Saturday that the city had avoided worse damage and offered to assist the more heavily pounded neighboring states and Long Island, the hardest-hit part of New York State. Most roads in the city, he said, were well on the way to being cleared, and he thanked people for staying off the streets during the storm. The accumulation in Central Park was measured at 11.4 inches by the time the snow relented at daybreak Saturday.


“I think it is fair to say we were very lucky,” Mr. Bloomberg said.


The National Weather Service received reports of flooding up and down the Massachusetts coast, especially in areas just north and south of Boston. Water carrying slabs of ice sloshed through the streets and lapped against houses. The National Guard was dispatched to assist in evacuations.


Waves off the South Shore of Boston and parts of Cape Cod measured as high as 20 feet. Two feet of water was observed in Winthrop, Mass., just north of Boston. Waters breached a sea wall in the Humarock section of Scituate, while roads in Gloucester, Marblehead and Revere were reported flooded or impassable.


At a news conference, Gov. Andrew M. Cuomo said New York would send crews to Connecticut and Massachusetts to help remove snow and restore power.


Reporting was contributed by Jess Bidgood, Robert Davey, Ann Farmer, Dina Kraft, Elizabeth Maker, Eli Rosenberg, Nate Schweber, Michael Schwirtz, Katharine Q. Seelye, Ravi Somaiya, Alex Vadukul and Vivian Yee.



Read More..

Boeing 787 Completes Test Flight





A Boeing 787 test plane flew for more than two hours on Saturday to gather information about the problems with the batteries that led to a worldwide grounding of the new jets more than three weeks ago.




The flight was the first since the Federal Aviation Administration gave Boeing permission on Thursday to conduct in-flight tests. Federal investigators and the company are trying to determine what caused one of the new lithium-ion batteries to catch fire and how to fix the problems.


The plane took off from Boeing Field in Seattle heading mostly east and then looped around to the south before flying back past the airport to the west. It covered about 900 miles and landed at 2:51 p.m. Pacific time.


Marc R. Birtel, a Boeing spokesman, said the flight was conducted to monitor the performance of the plane’s batteries. He said the crew, which included 13 pilots and test personnel, said the flight was uneventful.


He said special equipment let the crew check status messages involving the batteries and their chargers, as well as data about battery temperature and voltage.


FlightAware, an aviation data provider, said the jet reached 36,000 feet. Its speed ranged from 435 to 626 miles per hour.


All 50 of the 787s delivered so far were grounded after a battery on one of the jets caught fire at a Boston airport on Jan. 7 and another made an emergency landing in Japan with smoke coming from the battery.


The new 787s are the most technically advanced commercial airplanes, and Boeing has a lot riding on their success. Half of the planes’ structural parts are made of lightweight carbon composites to save fuel.


Boeing also decided to switch from conventional nickel cadmium batteries to the lighter lithium-ion ones. But they are more volatile, and federal investigators said Thursday that Boeing had underestimated the risks.


The F.A.A. has set strict operating conditions on the test flights. The flights are expected to resume early this week, Mr. Birtel said.


Battery experts have said it could take weeks for Boeing to fix the problems.


Read More..

Heavy Snow and Winds Batter Northeast





A powerful nor’easter swept fast and furiously across the Northeast on Saturday, dumping mountains of snow, forcing hundreds of motorists to abandon their cars at the height of the blizzard and knocking out power for hundreds of thousands of people.




Through the night, winds gusted with hurricane force strength in some places, downing powerlines and creating white-out conditions. More than three feet of snow fell in parts of Connecticut, and more than two feet were reported on Long Island and Massachusetts, with the storm still doing damage as day broke.


A state of emergency was declared in four states on Friday. The governor of Massachusetts banned travel on all roads as night fell, an order that remained in effect on Saturday. In Connecticut, where the governor had ordered no cars on state highways on Friday night, residents were told early Saturday morning to stay off all roads.


Still, whether by choice or necessity, hundreds of drivers tried to travel home and beat the storm as whipping winds created white-out conditions. On Long Island, the storm descending so quickly that hundreds were forced to abandon their cars on the highways and streets as roads became impassable.


Snowplow drivers worked furiously to clear roads, but the snow limited what they could do.


“It’s really hard right now, it’s wet, it’s heavy and it’s freezing, so everything is going slow,” said Jack Mandaneza, 31, as he took a break from plowing on the Long Island Expressway at the height of the storm.


Barbara Barkiano, 43, a housecleaner, tried to make her way along the highway behind the plows, but the snow snapped both windshield wipers on her Honda Civic hybrid.


“My knees are shaking,” she said stopping at a gas station to hand-scrape snow from her windshield. She added, “I’m going to stay right here for a while.”


The storm’s impact was felt by more than 40 million people, from northern New Jersey to Maine.


For many, the memory of Hurricane Sandy — and its terrible toll — was still fresh as they crowded supermarkets and supply stores to stock up as the stormed beared down on the region.


Long lines at gas stations, and scattered reports that places were running out of fuel led Mayor Michael R. Bloomberg of New York City to warn people not to “panic buy” gasoline.


The storm played out the way many forecasters said it would — with New York City spared from the worst of the storm, and points to the north and east hit harder.


In Central Park, a total snowfall of 11.4 inches was reported at 6 a.m., and the snowfall had ended by daybreak.


But people in Connecticut, Rhode Island and Massachusetts, as well as on Long Island, faced the prospect of a long weekend of digging out.


“We don’t have all the statistics in quite yet, but for some locations this is one for the record books,” said David Stark, a meteorologist at the National Weather Service based in Suffolk County Long Island.


With snow still falling, the Weather Service said they had reports out of New Haven County, in Connecticut, of more than three feet, including 36.2 inches in Oxford and 38 inches in Milford. In Commack, on Long Island, 29.1 inches of snowfall were reported at 6 a.m. and 27.5 inches at MacArthur Airport in Islip.


The deep snows and impassable roads will make it hard for utlitiy workers to restore power even as the storm abates.


There were 407,000 power failures reported in Massachusetts, and more than 180,000 were reported in Rhode Island. And the Pilgrim nuclear power plant in Plymouth, Mass., shut down because of the storm. On Long Island, about 10,000 customers were reported without power, the Long Island Power Authority said.


Marcy Reed, president of National Grid, said failures could last several days because repairs would not begin until the storm ended and would require unearthing power lines buried under mounds of snow.


Nate Schweber contributed reporting from Long Island.



Read More..

In Nigeria, Polio Vaccine Workers Are Killed by Gunmen





At least nine polio immunization workers were shot to death in northern Nigeria on Friday by gunmen who attacked two clinics, officials said.




The killings, with eerie echoes of attacks that killed nine female polio workers in Pakistan in December, represented another serious setback for the global effort to eradicate polio.


Most of the victims were women and were shot in the back of the head, local reports said.


A four-day vaccination drive had just ended in Kano State, where the killings took place, and the vaccinators were in a “mop-up” phase, looking for children who had been missed, said Sarah Crowe, a spokeswoman for the United Nations Children’s Fund, one of the agencies running the eradication campaign.


Dr. Mohammad Ali Pate, Nigeria’s minister of state for health, said in a telephone interview that it was not entirely clear whether the gunmen were specifically targeting polio workers or just attacking the health centers where vaccinators happened to be gathering early in the morning. “Health workers are soft targets,” he said.


No one immediately took responsibility, but suspicion fell on Boko Haram, a militant Islamist group that has attacked police stations, government offices and even a religious leader’s convoy.


Polio, which once paralyzed millions of children, is now down to fewer than 1,000 known cases around the world, and is endemic in only three countries: Nigeria, Pakistan and Afghanistan.


Since September — when a new polio operations center was opened in the capital and Nigeria’s president, Goodluck Jonathan, appointed a special adviser for polio — the country had been improving, said Dr. Bruce Aylward, chief of polio eradication for the World Health Organization. There have been no new cases since Dec. 3.


While vaccinators have not previously been killed in the country, there is a long history of Nigerian Muslims shunning the vaccine.


Ten years ago, immunization was suspended for 11 months as local governors waited for local scientists to investigate rumors that it caused AIDS or was a Western plot to sterilize Muslim girls. That hiatus let cases spread across Africa. The Nigerian strain of the virus even reached Saudi Arabia when a Nigerian child living in hills outside Mecca was paralyzed.


Heidi Larson, an anthropologist at the London School of Hygiene and Tropical Medicine who tracks vaccine issues, said the newest killings “are kind of mimicking what’s going on in Pakistan, and I feel it’s very much prompted by that.”


In a roundabout way, the C.I.A. has been blamed for the Pakistan killings. In its effort to track Osama bin Laden, the agency paid a Pakistani doctor to seek entry to Bin Laden’s compound on the pretext of vaccinating the children — presumably to get DNA samples as evidence that it was the right family. That enraged some Taliban factions in Pakistan, which outlawed vaccination in their areas and threatened vaccinators.


Nigerian police officials said the first shootings were of eight workers early in the morning at a clinic in the Tarauni neighborhood of Kano, the state capital; two or three died. A survivor said the two gunmen then set fire to a curtain, locked the doors and left.


“We summoned our courage and broke the door because we realized they wanted to burn us alive,” the survivor said from her bed at Aminu Kano Teaching Hospital.


About an hour later, six men on three-wheeled motorcycles stormed a clinic in the Haye neighborhood, a few miles away. They killed seven women waiting to collect vaccine.


Ten years ago, Dr. Larson said, she joined a door-to-door vaccination drive in northern Nigeria as a Unicef communications officer, “and even then we were trying to calm rumors that the C.I.A. was involved,” she said. The Iraq and Afghanistan wars had convinced poor Muslims in many countries that Americans hated them, and some believed the American-made vaccine was a plot by Western drug companies and intelligence agencies.


Since the vaccine ruse in Pakistan, she said, “Frankly, now, I can’t go to them and say, ‘The C.I.A. isn’t involved.’ ”


Dr. Pate said the attack would not stop the newly reinvigorated eradication drive, adding, “This isn’t going to deter us from getting everyone vaccinated to save the lives of our children.”


Aminu Abubakar contributed reported from Kano, Nigeria.



Read More..

John E. Karlin, 1918-2013: John E. Karlin, Who Led the Way to All-Digit Dialing, Dies at 94


Courtesy of Alcatel-Lucent USA


John E. Karlin, a researcher at Bell Labs, studied ways to make the telephone easier to use.







A generation ago, when the poetry of PEnnsylvania and BUtterfield was about to give way to telephone numbers in unpoetic strings, a critical question arose: Would people be able to remember all seven digits long enough to dial them?




And when, not long afterward, the dial gave way to push buttons, new questions arose: round buttons, or square? How big should they be? Most crucially, how should they be arrayed? In a circle? A rectangle? An arc?


For decades after World War II, these questions were studied by a group of social scientists and engineers in New Jersey led by one man, a Bell Labs industrial psychologist named John E. Karlin.


By all accounts a modest man despite his variegated accomplishments (he had a doctorate in mathematical psychology, was trained in electrical engineering and had been a professional violinist), Mr. Karlin, who died on Jan. 28, at 94, was virtually unknown to the general public.


But his research, along with that of his subordinates, quietly yet emphatically defined the experience of using the telephone in the mid-20th century and afterward, from ushering in all-digit dialing to casting the shape of the keypad on touch-tone phones. And that keypad, in turn, would inform the design of a spate of other everyday objects.


It is not so much that Mr. Karlin trained midcentury Americans how to use the telephone. It is, rather, that by studying the psychological capabilities and limitations of ordinary people, he trained the telephone, then a rapidly proliferating but still fairly novel technology, to assume optimal form for use by midcentury Americans.


“He was the one who introduced the notion that behavioral sciences could answer some questions about telephone design,” Ed Israelski, an engineer who worked under Mr. Karlin at Bell Labs in the 1970s, said in a telephone interview on Wednesday.


In 2013, the 50th anniversary of the introduction of the touch-tone phone, the answers to those questions remain palpable at the press of a button. The rectangular design of the keypad, the shape of its buttons and the position of the numbers — with “1-2-3” on the top row instead of the bottom, as on a calculator — all sprang from empirical research conducted or overseen by Mr. Karlin.


The legacy of that research now extends far beyond the telephone: the keypad design Mr. Karlin shepherded into being has become the international standard on objects as diverse as A.T.M.’s, gas pumps, door locks, vending machines and medical equipment.


Mr. Karlin, associated from 1945 until his retirement in 1977 with Bell Labs, headquartered in Murray Hill, N.J., was widely considered the father of human-factors engineering in American industry.


A branch of industrial psychology that combines experimentation, engineering and product design, human-factors engineering is concerned with easing the awkward, often ill-considered marriage between man and machine. In seeking to design and improve technology based on what its users are mentally capable of, the discipline is the cognitive counterpart of ergonomics.


“Human-factors studies are different from market research and other kinds of studies in that we observe people’s behavior and record it, systematically and without bias,” Mr. Israelski said. “The hallmark of human-factors studies is they involve the actual observation of people doing things.”


Among the issues Mr. Karlin examined as the head of Bell Labs’ Human Factors Engineering department — the first department of its kind at an American company — were the optimal length for a phone cord (a study that involved gentle, successful sabotage) and the means by which rotary calls could be made efficiently after the numbers were moved from inside the finger holes, where they had nestled companionably for years, to the rim outside the dial.


John Elias Karlin was born in Johannesburg on Feb. 28, 1918, and reared nearby in Germiston, where his parents owned a grocery store and tearoom.


He earned a bachelor’s degree in philosophy, psychology and music, and a master’s degree in psychology, both from the University of Cape Town. Throughout his studies he was a violinist in the Cape Town Symphony Orchestra and the Cape Town String Quartet.


Moving to the United States, Mr. Karlin earned a Ph.D. from the University of Chicago in 1942. Afterward, he became a research associate at Harvard; he also studied electrical engineering there and at the Massachusetts Institute of Technology.


At Harvard, Mr. Karlin did research for the United States military on problems in psychoacoustics that were vital to the war effort — studying the ways, for instance, in which a bomber’s engine noise might distract its crew from their duties.


Read More..

Flights and Trains Canceled as Storm Heads to Northeast


Richard Perry/The New York Times


In Jersey City, Jose Angelo, left, helped Isauro Palacios, a contractor from Belleville, N.J., as he loaded a new snow blower into the back of his truck Thursday as a snowstorm approached the region.







As heavy, wet snow started to blanket much of the Northeast on Friday morning, people rushed to stores to stock up on supplies, drivers lined up at gas stations to fill their tanks and local authorities from New York City to Maine started working to battle what forecasters said could be the biggest blizzard for some cities in a century.






National Weather Service

A satellite image taken at 10:15 p.m. Eastern time Thursday. Areas in blue indicate colder cloud tops or deeper cloud cover. The system over the Midwest and the system spread across the East are expected to merge on Friday.






Throughout the night and into the morning airlines announced the suspension of thousands of flights out of New York and Boston airports , as thousands of workers readied their plows, checked their stocks of salt and braced for what will most likely be a cold and busy weekend. Amtrak announced that it would suspend northbound service out of Penn Station in New York and southbound service out of Boston beginning early Friday afternoon.


Schools across New York, Connecticut, Massachusetts and Rhode Island announced they would close, or dismiss students early on Friday.


On Long Island, where some forecasts said there could be more than 18 inches of snow, the power company, which has received heavy criticism for its response to Hurricane Sandy, promised customers that they were prepared.


The city of Boston, where forecasts called for more than two feet of snow to fall by Saturday, announced that it would close all schools on Friday, joining other localities in trying to get ahead of the storm and keep people off the roads.


“We are taking this storm very seriously and you should take this storm very seriously,” said Jerome Hauer, the New York State Commissioner of the Division of Homeland Security and Emergency Services, at an afternoon news conference.


“If you don’t have to go to work tomorrow, we suggest that you do not,” he said. “If you do, we suggest that you plan for an early departure.”


The latest forecasts, he said, called for between 12 and 20 inches of snow in the New York City region and wind gusts that could exceed 60 miles per hour.


However, with the storm still some distance away, forecasters warned that predictions could change. The first sign of the storm will be a dusting of light snow that is expected to start falling across the region Friday morning.


At some point Friday night, the arctic jet stream will drop down from Canada and intersect with the polar jet stream, which usually travels through the lower 48 states.


“They will cross somewhere between New Jersey and Nantucket,” said Tim Morrin, a meteorologist at the National Weather Service. “That is where the center of the storm will deepen and explosively develop.”


If the current models hold, the storm could rival the blizzard of 1978 in New England, when more than 27 inches of snow fell in Boston and surrounding cities. That storm, which occurred on a weekday, resulted in dozens of deaths and crippled the region for days.


Peter Judge, a spokesman for the Massachusetts Emergency Management Agency, said more than 20 agencies had gathered at the agency’s operations center in Framingham, Mass., where they were preparing for a historic storm.


“From our perspective, this is a very severe, blizzard-type storm that we haven’t had for quite a long time,” Mr. Judge said. “Worst-case scenario, this will be the worst one that we’ve dealt with in many, many years. I can’t even come up with something comparable.”


Officials prepared for debris management, snow removal and supplies distribution, he said, as well as widespread power failures, which he said were the major concern. “People will lose their heat when they lose their power, and they’re certainly much more in harm’s way than at other times of the year,” he said.


Boston was bracing for the worst of the storm to hit between 2 and 5 p.m. Friday. Gov. Deval Patrick, who called the pending storm “a serious weather event,” has ordered all nonemergency personnel to work from home Friday and encouraged private employers to keep their workers home.


Read More..

Alicia Keys, Bobby Brown perform at Will.i.am show


LOS ANGELES (AP) — Fergie may have been absent — but the Black Eyed Peas were joined by another female diva onstage: Alicia Keys.


Keys sang "Where Is the Love" with the pop-rap group at will.i.am's charity event Thursday night at The Avalon Hollywood in Los Angeles. British singer Estelle also sang Fergie's portion of "The Time (Dirty Bit)."


Will.i.am's TRANS4M benefit show — which assists his i.am.angel foundation — also featured Bobby Brown and Ludacris, who both earned roaring cheers from the crowd of several hundred.


Will.i.am. said at the end of the evening that he raised $3.3 million.


"We're having fun, but we're also collecting funds," he told the crowd.


Will.i.am introduced Grammy-winning Keys to the audience saying: "Are you ready for a strong woman?"


The R&B singer performed "Girl on Fire" and "Try Sleeping With a Broken Heart."


Brown sang his jams "Every Little Step" and "Tenderoni." He performed at the same event in 2011, as will.i.am and Taboo of the Peas worked as his background dancers. They did the same Thursday night.


He told will.i.am in between his set that he was proud of the musician and his charity work.


The Peas closed the night with the massive hit "I Gotta Feeling."


___


Online:


http://iamangelfoundation.org .


___


Follow Mesfin Fekadu on twitter.com/MusicMesfin


Read More..

The New Old Age Blog: The Executor's Assistant

I’m serving as executor for my father’s estate, a role few of us are prepared for until we’re playing it, so I was grateful when the mail brought “The American Bar Association Guide to Wills and Estates” — the fourth edition of a handbook the A.B.A. began publishing in 1995.

This is a legal universe, I’m learning, in which every step — even with a small, simple estate that owes no taxes and includes no real estate or trusts — turns out to be at least 30 percent more complicated than expected.

If my dad had been wealthy or owned a business, or if we faced a challenge to his will, I would have turned the whole matter over to an estate lawyer by now. But even then, it would be helpful to know what the lawyer was talking about. The A.B.A. guide would help.

Written with surprising clarity (hey, they’re lawyers), it maps out all kinds of questions and decisions to consider and explains the many ways to leave property to one’s heirs. Updated from the third edition in 2009, the guide not only talks taxes and trusts, but also offers counsel for same-sex couples and unconventional families.

If you want to permit your second husband to live in the family home until he dies, but then guarantee that the house reverts to the children of your first marriage, the guide tells you how a “life estate” works. It explains what is taxable and what isn’t, and discusses how to choose executors and trustees. It lists lots of resources and concludes with an estate-planning checklist.

In general, the A.B.A. intends its guide for the person trying to put his or her affairs in order, more than for family members trying to figure out how to proceed after someone has died. But many of us will play both these parts at some point (and if you are already an executor, or have been, please tell us how that has gone, and mention your state). We’ll need this information.


Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

Read More..

Chinese Imports and Exports Soar in January


HONG KONG — January trade data from China on Friday showed a surge in exports and imports from the levels of a year earlier — a phenomenon largely due to the timing of the Lunar New Year holiday but also supporting the view that the Chinese economy is firming up.


Economic data from China are often severely distorted by the holiday, when many factories shut down for a week or more.


The holiday this year takes place in February — the first day of the Lunar New Year is Sunday. Last year it fell squarely in January, cutting down on the number of working days during that month.


The trade data released Friday reflected this with a large increase, compared with the year before, as analysts had expected. Exports climbed 25 percent from January 2012, according to the General Administration of Customs, and imports rose 28.8 percent.


The increases were much lower when adjusted for the holiday-induced differences in the number of working days, with exports up 12.4 percent and imports just 3.4 percent higher.


Still, the data beat expectations by a wide margin, supporting the view that healthier domestic and overseas demand also had been significant.


“This strong export number cannot be fully explained by the Chinese New Year effect alone,” Zhiwei Zhang, chief China economist at Nomura in Hong Kong, said in a research note. “These data suggest that external and domestic demand are both strong, which supports our view that the economy is on track for a cyclical recovery” in the first half of this year, he added.


Dariusz Kowalczyk, an economist at Crédit Agricole in Hong Kong, said, “We need to wait for February results to have the full picture of trade at the start of 2013.” However, he added, “one trend is clear: exports have been doing very well recently. This may be a sign of improved external demand but is also a testimony to the resilience of Chinese exporters and to their competitiveness.”


Improved overseas demand and a string of government-mandated stimulus measures have gradually propped up growth and dispelled fears of a hard landing in China. While the Chinese economy expanded just 7.8 percent last year — down from 9.3 percent in 2011 and 10.4 percent in 2010 — many analysts expect growth to top 8 percent again in 2013.


Central bank data Friday that showed ample money had continued to flood into the economy also supported this view. Banks extended 1.07 trillion renminbi, or $172 billion, in new loans during January, more than analysts had expected. Total “social financing aggregate” in the economy, a broad measure of liquidity, or the ease of trading assets, more than doubled from a year earlier, to 2.54 trillion renminbi.


That figure, Mr. Kowalczyk commented, was a “blowout number.”


Like other data released Friday, the financing figure was lifted by the Lunar New Year effects, but even without these, Mr. Kowalczyk said, it was a “huge amount of funding” and would sustain solid economic growth in the near term at least.


Longer term, he cautioned, it would also “stoke inflationary pressures,” and could lead the central bank to tighten monetary policy further down the line as it seeks to stave off inflationary pressures.


For now, inflation remains benign. Consumer prices rose just 2 percent in January from a year earlier, a moderation from the 2.5 percent year-on-year increase in December. The low inflation number, released Friday, was in line with forecasts, but analysts widely expect a rebound in February.


Read More..

European Central Bank Leaves Interest Rate Unchanged


FRANKFURT — The European Central Bank left its main interest rate unchanged at its current record low Thursday, as expected, amid signs that the euro zone economy could be crawling out of recession.


The E.C.B. left its main rate at 0.75 percent, where it has been since July. Recent surveys of business sentiment have raised expectations that the euro zone could be slowly recovering, although there is also concern that the rising value of the euro against the dollar could undercut the fragile gains.


Recent data have supported the E.C.B. view that the euro zone will emerge from recession later this year. New orders to German industry rose 0.8 percent in the fourth quarter of 2012.


But the recovery is threatened by the rising value of the common currency, which could hurt exports by making euro zone products more expensive for foreign buyers. In recent weeks, the euro has risen substantially against the dollar, to the highest levels in a year.


Few analysts had expected the E.C.B. to shift its monetary policy Thursday. Some predict that the benchmark rate could stay at its present level for an extended period as the euro zone slowly returns to growth.


“We expect interest rates to be on hold at 0.75 percent until 2017 and only significant changes in the economic environment would trigger a change one way or the other,” Marie Diron, senior economic adviser to the consulting firm Ernst & Young, said in an e-mail before the decision.


Although there was no change in rates, the E.C.B. news conference later Thursday afternoon could prove eventful. Mario Draghi, the E.C.B. president, is likely to face questions about whether the bank will respond to the appreciation of the euro, which was up again midday Thursday, to nearly $1.36. Back in July it was trading just above $1.21.


A stronger euro means that products ranging from cars to wine become more expensive abroad, putting European producers at a disadvantage to foreign competitors.


Analysts do not expect Mr. Draghi to take steps to devalue the euro, but he could remind his counterparts at other central banks outside the euro zone of their promise not to start a currency war. If the value of one currency goes up, another currency must come down, making exchange-rate manipulation by central banks a zero-sum game that economists believe is counterproductive.


Mr. Draghi is also likely to face numerous questions about problems at the Italian bank Monte dei Paschi di Siena, which has required a €3.9 billion bailout by the Italian government. Mr. Draghi was governor of the Bank of Italy, responsible for bank supervision, during the period when Monte dei Paschi was getting in trouble several years ago.


Mr. Draghi’s supporters have pointed out that there was a deliberate attempt by that bank’s previous management to conceal the extent of their losses, and that the Bank of Italy did not have the authority to prevent Monte dei Paschi managers from making foolish decisions. Part of the bank’s problems stem from its acquisition of regional bank Antonveneta in 2008 for €9 billion, a price considered much too high even at the time.


But at the very least, the case of Monte dei Paschi has illustrated the limits of bank supervision, and called into question whether the E.C.B. will be able to do a better job than national supervisors when it begins assuming supreme regulatory authority over banks in the course of this year.


The problems at Monti dei Paschi bank have also been exploited by Silvio Berlusconi, the former prime minister of Italy, as he attempts a comeback in elections at the end of this month. Mr. Berlusconi has run a populist campaign promising to undo some of the economic changes made by his successor, Mario Monti.


Italian politics aside, international investors are concerned about the new jitters the debacle could create in euro zone bond markets, which have calmed considerably lately.


“A government may well be formed on a platform that rejects some, if not most, of the Monti government’s fiscal reforms,” Carl Weinberg, chief economist at High Frequency Economics in Valhalla, New York, wrote in a note to clients Wednesday. “As uncertainty grows, the bond markets are becoming increasingly unsettled.”


Read More..