The Lede Blog: Video of Aleppo University Bombing

Video posted online by Syrian opposition activists appeared to show the moment one in a series of deadly explosions struck the campus of Aleppo University on Tuesday.

Video said to capture an explosion on the campus of Aleppo University in Syria on Tuesday, uploaded to the Web by opposition activists.

The brief clip, uploaded to the YouTube channel of the ANA New Media Association (formerly the Syrian Activists News Association), begins with a view of smoke rising from a university building as students mill about. Moments later, following a very loud explosion close to the camera, students run for cover and a much larger plume can be seen above the building.

A description of the video posted on YouTube by ANA, which is run from Cairo by the British-Syrian activist Rami Jarrah, said that the video was filmed by an activist just after the university was hit by a missile fired from a Syrian Air Force MIG fighter jet, and captured the impact of a second airstrike.

Another video clip, uploaded to the Web earlier in the day, appeared to offer a more distant view of the plumes of smoke above the campus. Mr. Jarrah, who blogs as Alexander Page, suggested that one part of the video showed the fighter jet’s contrail in the sky over the damaged buildings.

NEW FOOTAGE: Shows trail of Jet Fighter seconds after Airstrike on University of #Aleppo http://t.co/CRk3C8wb Syrian state TV Lie

— Alexander Page (@AlexanderPageSY) 15 Jan 13

While opposition activists insisted that the blasts, which killed at least 50 people, were the result of airstrikes by the government of President Bashar al-Assad, state-controlled television channels claimed that “terrorists” had fired rockets at the campus.

The pro-Assad satellite channel al-Ikhbaria broadcast video of the aftermath, showing extensive damage to the campus and victims being rushed from the scene as on-screen text blamed the attack on rebel forces.

Video from the pro-government Syrian satellite channel al-Ikhbaria showed the aftermath of bombings at Aleppo University on Tuesday

A blogger in Aleppo who supported peaceful protests against the Assad government but has been fiercely critical of the armed rebellion, Edward Dark, described the carnage as a result of an air attack that was “probably a mistake, not an intentional bombing.”

just now: regime jet bombs Aleppo Uni faculty of architecture as students are taking tests. this is in a peaceful regime held area #Syria

— edward dark (@edwardedark) 15 Jan 13

@APHClarkson no, I think it was probably a mistake, not an intentional bombing

— edward dark (@edwardedark) 15 Jan 13

Restrictions on independent reporting in Syria make it hard to confirm who was responsible for the explosions, but the university is in a government-controlled area of the city and large anti-Assad demonstrations there last May were harshly dealt with by the security forces, despite the presence of United Nations observers.

Another series of video clips, posted on YouTube shortly after the bombings, showed extensive damage to what was described as the university’s architecture, and dazed students making their way through shattered glass, carrying a wounded man on a table.

Video said to show the badly damaged Aleppo University on Tuesday.

Video of a wounded man being evacuated from a damaged building at Aleppo University on Tuesday.

Another pro-Assad satellite channel, Addounia, broadcast a report blaming “a terrorist group” for the bombings — which was uploaded, with English subtitles, to YouTube.

A video report on bombings at Aleppo University from Addounia, a pro-Assad satellite channel.

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Apple supplier sees big Q4 boost, likely a good sign for iPhone 5 demand

Shares of Apple (AAPL) have been hit hard over the last few days. Investors continue to worry about the company’s profit margins, demand for its popular line of smartphones and tablets, and its future endeavors. With upcoming competition from Research in Motion (RIMM) and Microsoft (MSFT), and an ongoing battle with Google’s (GOOG) Android operating system, analysts fear that Apple’s mobile dominance may be a thing of the past. While we won’t officially know anything until the company reports its holiday earnings on January 23rd, a small German company has painted a calming picture for Apple shareholders.

[More from BGR: HTC One SV review]

Dialog Semiconductor announced last week that it expects to report a significant increase in sales for its December quarter. The company noted that the increase was due to “a stronger than anticipated end of year, underpinned by a strong late surge in demand for smartphone and tablet products.” Dialog Semiconductor now expects to report revenues of $ 268 million, an increase from between $ 215 million and $ 235 million.

[More from BGR: Extensive BlackBerry Z10 demo video posted by German website [video]]

The important thing to note is that, as of this past fall, Apple is Dialog’s largest customer and accounts for 60% of its total revenue.

Logic dictates that solid demand for Apple’s iPhone and iPad during the holidays helped boost Dialog’s performance. This could also mean that the iPhone-maker will report not only a strong December quarter, but a better-than-expected March quarter as well.

It looks like all this talk about customers losing interest in Apple may indeed be premature.

This article was originally published on BGR.com

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Tears & Outrage: Adamari López's Shocking Tell-All Explained in 5 Clicks

The Puerto Rican TV star accuses her ex, singer Luis Fonsi, of betrayal while she battled breast cancer

Credit: Dimitrios Kambouris/Wireimage

Updated: Monday Jan 14, 2013 | 06:00 AM EST

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Flu more widespread in US; eases off in some areas

NEW YORK (AP) — Flu is now widespread in all but three states as the nation grapples with an earlier-than-normal season. But there was one bit of good news Friday: The number of hard-hit areas declined.

The flu season in the U.S. got under way a month early, in December, driven by a strain that tends to make people sicker. That led to worries that it might be a bad season, following one of the mildest flu seasons in recent memory.

The latest numbers do show that the flu surpassed an "epidemic" threshold last week. That is based on deaths from pneumonia and influenza in 122 U.S. cities. However, it's not unusual — the epidemic level varies at different times of the year, and it was breached earlier this flu season, in October and November.

And there's a hint that the flu season may already have peaked in some spots, like in the South. Still, officials there and elsewhere are bracing for more sickness

In Ohio, administrators at Miami University are anxious that a bug that hit employees will spread to students when they return to the Oxford campus next week.

"Everybody's been sick. It's miserable," said Ritter Hoy, a spokeswoman for the 17,000-student school.

Despite the early start, health officials say it's not too late to get a flu shot. The vaccine is considered a good — though not perfect — protection against getting really sick from the flu.

Flu was widespread in 47 states last week, up from 41 the week before, the Centers for Disease Control and Prevention said on Friday. The only states without widespread flu were California, Mississippi and Hawaii.

The number of hard-hit states fell to 24 from 29, where larger numbers of people were treated for flu-like illness. Now off that list: Florida, Arkansas and South Carolina in the South, the first region hit this flu season.

Recent flu reports included holiday weeks when some doctor's offices were closed, so it will probably take a couple more weeks to get a better picture, CDC officials said Friday. Experts say so far say the season looks moderate.

"Only time will tell how moderate or severe this flu season will be," CDC Director Dr. Thomas Frieden said Friday in a teleconference with reporters.

The government doesn't keep a running tally of adult deaths from the flu, but estimates that it kills about 24,000 people in an average year. Nationally, 20 children have died from the flu this season.

Flu vaccinations are recommended for everyone 6 months or older. Since the swine flu epidemic in 2009, vaccination rates have increased in the U.S., but more than half of Americans haven't gotten this year's vaccine.

Nearly 130 million doses of flu vaccine were distributed this year, and at least 112 million have been used. Vaccine is still available, but supplies may have run low in some locations, officials said.

To find a shot, "you may have to call a couple places," said Dr. Patricia Quinlisk, who tracks the flu in Iowa.

In midtown Manhattan, Hyrmete Sciuto got a flu shot Friday at a drugstore. She skipped it in recent years, but news reports about the flu this week worried her.

During her commute from Edgewater, N.J., by ferry and bus, "I have people coughing in my face," she said. "I didn't want to risk it this year."

The vaccine is no guarantee, though, that you won't get sick. On Friday, CDC officials said a recent study of more than 1,100 people has concluded the current flu vaccine is 62 percent effective. That means the average vaccinated person is 62 percent less likely to get a case of flu that sends them to the doctor, compared to people who don't get the vaccine. That's in line with other years.

The vaccine is reformulated annually, and this year's is a good match to the viruses going around.

The flu's early arrival coincided with spikes in flu-like illnesses caused by other bugs, including a new norovirus that causes vomiting and diarrhea, or what is commonly known as "stomach flu." Those illnesses likely are part of the heavy traffic in hospital and clinic waiting rooms, CDC officials said.

Europeans also are suffering an early flu season, though a milder strain predominates there. China, Japan, the West Bank, the Gaza Strip, Algeria and the Republic of Congo have also reported increasing flu.

Flu usually peaks in midwinter. Symptoms can include fever, cough, runny nose, head and body aches and fatigue. Some people also suffer vomiting and diarrhea, and some develop pneumonia or other severe complications.

Most people with flu have a mild illness. But people with severe symptoms should see a doctor. They may be given antiviral drugs or other medications to ease symptoms.

Some shortages have been reported for children's liquid Tamiflu, a prescription medicine used to treat flu. But health officials say adult Tamiflu pills are available, and pharmacists can convert those to doses for children.

___

Associated Press writers Dan Sewell in Cincinnati, Catherine Lucey in Des Moines, and Malcolm Ritter in New York contributed to this report.

___

Online:

CDC flu: http://www.cdc.gov/flu/index.htm

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Apple demand worries weigh on S&P, Nasdaq

NEW YORK (Reuters) - The S&P 500 and Nasdaq edged lower on Monday as concerns about demand for Apple products sent shares of the tech heavyweight lower and investors braced for earnings disappointments.

But Dell Inc's stock jumped 12.8 percent to $12.28, offsetting some of the tech-sector weakness, after Bloomberg TV said the No. 3 personal computer maker is in talks with private equity firms to go private.

Apple lost 3.1 percent to $505.33 and was the biggest weight on both the S&P 500 and Nasdaq 100 <.ndx> indexes after reports that the company has cut orders for LCD screens and other parts for the iPhone 5 this quarter due to weak demand. The stock earlier hit a session low of $498.51, the first dip below $500 since February 16.

"It's clear from (Apple's) reducing their supply orders that the sales haven't met their expectations, though certainly the orders they put into place for the iPhone 5 displays were higher than those that were in place for the prior phone," said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.

"Certainly, the rate of growth that they had - the tremendous surge in their revenue, stock price, all things do eventually slow and come down, so it's not a big surprise."

Apple suppliers also lost ground, with Cirrus Logic off 8.7 percent to $28.82 and Qualcomm down 1.4 percent to $63.98. The S&P tech sector <.gspt> declined 1 percent as the worst performer of the 10 major S&P sectors.

The Dow Jones industrial average <.dji> was up 24.95 points, or 0.19 percent, at 13,513.38. The Standard & Poor's 500 Index <.spx> was down 0.81 points, or 0.06 percent, at 1,471.24. The Nasdaq Composite Index <.ixic> was down 5.62 points, or 0.18 percent, at 3,120.02.

The Dow fared better than the other two indexes as Hewlett-Packard rose 6.3 percent to $17.18. The stock, which was up early in the session after JPMorgan upgraded its rating on the stock and raised its price target to $21 from $15, added to gains after the Dell report.

The pace of earnings season picks up this week with 38 S&P 500 companies set to report, including Goldman Sachs , Bank of America , Intel and General Electric .

Overall earnings are expected to grow by just 1.9 percent in this reporting period, according to Thomson Reuters data.

President Barack Obama warned Congress at a news conference on Monday that a refusal to raise the U.S. debt ceiling next month could mean a government shutdown and trigger economic chaos.

Separately, Federal Reserve Chairman Ben Bernanke will be speaking on monetary policy, recovery from the global financial crisis and long-term challenges facing the American economy at 4 p.m. (2100 GMT).

Appliance and electronics retailer Hhgregg Inc slumped 7.1 percent to $7.33 after the electronics and appliance retailer cut its same-store sales forecast for the full year.

(Additional reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)

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Leon Panetta Says U.S. Has Pledged to Help France in Mali

LISBON — In a move that could draw the United States into another conflict in North Africa, the Obama administration has pledged to help the French in their fight against Islamist militants in Mali, Defense Secretary Leon E. Panetta said Monday. He said the assistance could include air and other logistical support.

Jacquelyn Martin/Associated Press

Defense Secretary Leon E. Panetta boards a plane bound for Portugal on Monday.

The United States was already sharing intelligence with the French when their warplanes struck camps, depots and other militant positions deep inside Islamist-held territory in northern Mali on Sunday. Defense officials said that no decisions had been made about whether the United States would also offer help with midflight refueling planes and air transport, but that those options were under review.

Defense officials would not rule out the possibility that American military transport planes might land in Mali, where the United States has been conducting an ambitious counterterrorism program for years. The officials would not discuss whether the United States has deployed drone aircraft, either armed or unarmed, over Mali.

Mr. Panetta, who spoke to reporters on his plane en route to Portugal for a weeklong trip in Europe, said that the chaos in Mali was of deep concern to the administration, and he praised the French for their actions. He also said “what we have promised them is that we would work with them, to cooperate with them, to provide whatever assistance we can to try to help them in that effort.”

Mr. Panetta said that the Obama administration was deeply worried about the two extremist groups that hold large swaths of territory in northern Mali, Ansar Dine and Al Qaeda in the Islamic Maghreb, or AQIM. “We’re concerned that any time Al Qaeda establishes a base of operations, while they might not have any immediate plans for attacks in the United States and in Europe, that ultimately that still remains their objective,” he said.

For that reason, he said, “we have to take steps now to make sure that AQIM does not get that kind of traction.”

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Facebook shares rise in buildup to mystery event, earnings

SAN FRANCISCO (Reuters) – Facebook Inc’s stock opened on Monday above $ 32 for the first time since July as anticipation about upcoming products and financial results underscored Wall Street’s renewed confidence in the online social network.

Facebook will on Tuesday host its first major press event at its headquarters in Menlo Park, California, since its troubled initial public offering in May, triggering a guessing game among technology observers and online blogs about what it could unveil – everything from a smartphone to a search engine.

“There’s a lot of speculation. Nothing to me seems to be that certain,” Jefferies & Co analyst Brian Pitz said.

“If I were to bet, I’d think it was something that was ad-platform related. I’m not convinced on the phone,” said Pitz, citing previous comments by Facebook’s leaders including CEO Mark Zuckerberg that making a smartphone would be the “wrong strategy” for Facebook.

In an email to reporters last week, Facebook invited the media to “come and see what we’re building” without providing details.

Some analysts said the stock’s recent gains – shares are up roughly 17 percent since the start of the year – may have more to do with the company’s upcoming fourth-quarter financial results, slated for January 30.

“The stock is up because they have driven a dramatic increase in the ad load of their mobile app which is giving investors hope that they exceeded expectations,” BTIG analyst Richard Greenfield said.

Shares were down about 1.3 percent to $ 31.30 in mid-afternoon trading.

The world’s No.1 social network with 1 billion users, Facebook became the first U.S. company to debut on stock markets with a value of more than $ 100 billion. Its value subsequently plunged by more than 50 percent on mounting concerns about slowing revenue growth and the challenges of making money as users shift from personal computers to mobile devices.

Facebook surprised Wall Street in the third quarter by announcing that mobile ads accounted for 14 percent of its total ad revenue. Some analysts expect the company to report further growth in its nascent mobile ad business for the fourth quarter.

Zuckerberg, who founded Facebook in his Harvard dorm room, has said that mobile is the “most misunderstood aspect” of Facebook. But he has repeatedly poured cold water on rumors that Facebook would build its own smartphone to compete against Apple Inc’s iPhone and smartphones based on Google Inc’s Android operating system.

During an on-stage interview at a conference in September, Zuckerberg said that he believed search could be a ripe area of growth for Facebook.

“Facebook is really uniquely positioned to answer a lot of the questions that people have,” Zuckerberg said, such as finding a good restaurant or learning more about a job opportunity.

Still, many technology observers believe that Facebook is more likely to improve the search capabilities within Facebook than to develop a full-fledged search engine that indexes all the Web’s content and competes head-on with search leader Google.

Among the other items that technology blogs and analysts speculate might be unveiled on Tuesday were new standalone apps for Apple’s iPad tablet, new features to display video ads and even a new wing of corporate headquarters.

Some cautioned that expectations of a game-changing new product were likely to cause disappointment.

“There’s no way they’re announcing anything that has financial impact, or they wouldn’t do it now, they’d wait two weeks,” said Wedbush Securities analyst Michael Pachter, citing Facebook’s upcoming earnings.

“Why would you announce something that has a financial impact during the quiet period?,” he said.

(Reporting By Alexei Oreskovic; Editing by Paul Simao)

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Justin Timberlake's New 'Suit & Tie:' Review

By PEOPLE Music Critic Chuck Arnold

01/14/2013 at 02:45 PM EST

Inset:Joe Scarnici/Wireimage

At last Justin Timberlake is back to music, with Jay-Z in tow, on "Suit & Tie," his first new song since 2006 – and it sure is good to hear that falsetto croon again.

After the spacey beats of his last album, the multiplatinum FutureSex/LoveSounds, JT goes for a more retro vibe on this suave single, which previews his much-anticipated third solo album, The 20/20 Experience, due out later this year. With its smooth, horn-kissed lushness, it recalls the '70s R&B of Marvin Gaye as well as Robin Thicke's modern-day take on old-school soul.

While "Suit & Tie" does bring sexy back again, the lyrics find Timberlake, 32 this month, ready to sweep you – or perhaps his new wife, Jessica Biel – off your feet with old-fashioned romance.

"Let me show you a few things, show you a few things about love," he coos. Then, when Jay-Z swoops in for his rap, it's clear that wedded bliss is in the air: "Tell your mother that I love her cause I love you/ Tell your father we go farther as a couple/ They ain't lose a daughter, got a son."

Although the track once again finds Timberlake collaborating with producer Timbaland, it represents a sonic departure from previous hits like "Cry Me a River," "My Love" and "What Goes Around ... Comes Around."

"Suit & Tie" doesn't pack the same wallop as those songs, but it shows a more sophisticated side to the former boy-band member – all grown up now as a thirty-something married man.

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Flu more widespread in US; eases off in some areas

NEW YORK (AP) — Flu is now widespread in all but three states as the nation grapples with an earlier-than-normal season. But there was one bit of good news Friday: The number of hard-hit areas declined.

The flu season in the U.S. got under way a month early, in December, driven by a strain that tends to make people sicker. That led to worries that it might be a bad season, following one of the mildest flu seasons in recent memory.

The latest numbers do show that the flu surpassed an "epidemic" threshold last week. That is based on deaths from pneumonia and influenza in 122 U.S. cities. However, it's not unusual — the epidemic level varies at different times of the year, and it was breached earlier this flu season, in October and November.

And there's a hint that the flu season may already have peaked in some spots, like in the South. Still, officials there and elsewhere are bracing for more sickness

In Ohio, administrators at Miami University are anxious that a bug that hit employees will spread to students when they return to the Oxford campus next week.

"Everybody's been sick. It's miserable," said Ritter Hoy, a spokeswoman for the 17,000-student school.

Despite the early start, health officials say it's not too late to get a flu shot. The vaccine is considered a good — though not perfect — protection against getting really sick from the flu.

Flu was widespread in 47 states last week, up from 41 the week before, the Centers for Disease Control and Prevention said on Friday. The only states without widespread flu were California, Mississippi and Hawaii.

The number of hard-hit states fell to 24 from 29, where larger numbers of people were treated for flu-like illness. Now off that list: Florida, Arkansas and South Carolina in the South, the first region hit this flu season.

Recent flu reports included holiday weeks when some doctor's offices were closed, so it will probably take a couple more weeks to get a better picture, CDC officials said Friday. Experts say so far say the season looks moderate.

"Only time will tell how moderate or severe this flu season will be," CDC Director Dr. Thomas Frieden said Friday in a teleconference with reporters.

The government doesn't keep a running tally of adult deaths from the flu, but estimates that it kills about 24,000 people in an average year. Nationally, 20 children have died from the flu this season.

Flu vaccinations are recommended for everyone 6 months or older. Since the swine flu epidemic in 2009, vaccination rates have increased in the U.S., but more than half of Americans haven't gotten this year's vaccine.

Nearly 130 million doses of flu vaccine were distributed this year, and at least 112 million have been used. Vaccine is still available, but supplies may have run low in some locations, officials said.

To find a shot, "you may have to call a couple places," said Dr. Patricia Quinlisk, who tracks the flu in Iowa.

In midtown Manhattan, Hyrmete Sciuto got a flu shot Friday at a drugstore. She skipped it in recent years, but news reports about the flu this week worried her.

During her commute from Edgewater, N.J., by ferry and bus, "I have people coughing in my face," she said. "I didn't want to risk it this year."

The vaccine is no guarantee, though, that you won't get sick. On Friday, CDC officials said a recent study of more than 1,100 people has concluded the current flu vaccine is 62 percent effective. That means the average vaccinated person is 62 percent less likely to get a case of flu that sends them to the doctor, compared to people who don't get the vaccine. That's in line with other years.

The vaccine is reformulated annually, and this year's is a good match to the viruses going around.

The flu's early arrival coincided with spikes in flu-like illnesses caused by other bugs, including a new norovirus that causes vomiting and diarrhea, or what is commonly known as "stomach flu." Those illnesses likely are part of the heavy traffic in hospital and clinic waiting rooms, CDC officials said.

Europeans also are suffering an early flu season, though a milder strain predominates there. China, Japan, the West Bank, the Gaza Strip, Algeria and the Republic of Congo have also reported increasing flu.

Flu usually peaks in midwinter. Symptoms can include fever, cough, runny nose, head and body aches and fatigue. Some people also suffer vomiting and diarrhea, and some develop pneumonia or other severe complications.

Most people with flu have a mild illness. But people with severe symptoms should see a doctor. They may be given antiviral drugs or other medications to ease symptoms.

Some shortages have been reported for children's liquid Tamiflu, a prescription medicine used to treat flu. But health officials say adult Tamiflu pills are available, and pharmacists can convert those to doses for children.

___

Associated Press writers Dan Sewell in Cincinnati, Catherine Lucey in Des Moines, and Malcolm Ritter in New York contributed to this report.

___

Online:

CDC flu: http://www.cdc.gov/flu/index.htm

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Getting comfortable with living on the edge

LONDON (Reuters) - Just as you learn to put up with a nagging toothache, this week is expected to provide fresh evidence that the U.S. economy is getting used to life on the edge of the fiscal cliff.

Of course, putting off that trip to the dentist is not necessarily wise. The longer Washington delays, the more painful it will become to narrow its gaping budget deficit.

But surveys of U.S. consumer confidence in January and of house builder sentiment in December are likely to show resilience, buttressing the argument of equity bulls that Wall Street's firm start to the year is more than a relief rally or a desperate search for higher returns on investment.

Bluford Puttnam, chief economist of CME Group, said the U.S. economy had managed to grow almost 2 percent last year and create about 1.8 million jobs despite stagnation in Europe, a slowdown in China and the deadlocked budget talks.

"So I see a lot of momentum going into 2013," Puttnam said. "If we can get past this fiscal cliff, the economy is poised to have a much more confident year."

Despite fiscal tightening, he said growth could reach 2.5 percent to 3.0 percent.

Puttnam said the next rounds in the budget battle later this quarter would again be bitterly fought and the resolution would again satisfy no one. But, as with the showdown at the end of 2012, the economy would quickly move on.

"There is a one-in-ten chance that the government may even shut down for a week. It's just going to be ugly. And then it will be over. There will be some kind of compromise, and by April it will fade quickly into the background," he said.

THREE GORGES

U.S. retail sales are likely to have increased only 0.2 percent in December, dampened by the budget worries, according to economists polled by Reuters.

But a pair of regional Federal Reserve surveys and the monthly Reuters/University of Michigan consumer poll are projected to improve, while housing starts, new building permits and builders' confidence should all show that the housing recovery stands on firm foundations.

"That's what's really encouraging consumers to feel that the economy is getting better and that the momentum is broadly positive," said Jerry Webman, chief economist at OppenheimerFunds in New York.

While the phrase fiscal cliff used by U.S. Federal Reserve chief Ben Bernanke conjured up an image of an immediate plunge at the start of this year, in truth any austerity was always likely to take effect on the economy gradually.

Bank of America Merrill Lynch describes the challenges the United States faces in coming months rather as three fiscal gorges it must leap over.

The government could hit the debt ceiling approved by Congress as early as mid-February; across-the-board spending cuts are due to kick in on March 1; and the ‘continuing resolution' to fund all discretionary government spending expires on March 27.

Ideally, investors would like Democrats and Republicans to resolve all three issues with an overarching agreement to slash the deficit by $4 trillion over the next decade.

Instead, given the dysfunctional state of politics, Webman said the best that could be hoped for was another short-term fix that cuts spending and ends some tax breaks.

"The U.S. doesn't move by grand bargains, by big deals. We move by incremental decisions, and I think we'll make some imperfect but improved decisions over the course of 2013," he said.

CHINA ON THE MEND, EUROPE EERILY CALM

Encouraging economic news from China, including stronger-than-expected exports and imports in December, has also supported the start-of-year move by financial market investors out of cash and into riskier assets.

Figures on Friday are expected to show that the world's second-largest economy grew 7.8 percent from a year earlier, rebounding from the 7.4 percent pace of the third quarter and further allaying fears of a hard landing.

"Given some of the bearish commentary on China a few months ago, this should be a relief for markets and it's good for the world economy," said Derry Pickford, macro analyst at investment managers Ashburton in London.

Continuing calm in the euro zone has also helped equities, even though full-year German GDP data on Tuesday will serve as a reminder of the area's economic malaise.

Europe's largest economy contracted last quarter as factories slashed output in response to weak demand from Germany's neighbors, the Economy Ministry said on Friday.

At a news conference a day earlier, European Central Bank President Mario Draghi said he expected a recovery in euro zone growth later this year. But he ruled out an early end to the ECB's crisis policy measures and cautioned that risks were still tilted to the downside. Markets shrugged.

In Europe as in the United States, investors seem to have got used to high levels of policy uncertainty, said Ethan Harris, chief U.S. economist at Bank of America Merrill Lynch.

"It appears that the markets will look past brinkmanship moments unless policy makers break new ground," he said.

In Europe, that might mean not just threatening to eject Greece from the euro zone but actually forcing the exit. In the United States, that might mean not just threatening to violate the debt ceiling but actually doing so, Harris said in a report.

As long as such extreme events do not occur, Harris expects periodic swoons in confidence but no acute crisis.

"This renewed resilience is important because we expect many brinkmanship moments in the months ahead. A now-regular pattern has been established where deals are only struck at the last minute and often under market pressure," he wrote.

(Editing by Patrick Graham)

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