NYT > Home Page: DealBook: Mary Jo White to Be Named New S.E.C. Boss

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DealBook: Mary Jo White to Be Named New S.E.C. Boss
Jan 24th 2013, 14:10

President Obama is naming Mary Jo White, a former United States attorney turned white collar defense lawyer, to be the next chairwoman of the Securities and Exchange Commission, according to a White House official.

Mr. Obama will announce the nomination at the White House on Thursday at 2:30 pm, the official said. As part of the event, he will also re-nominate Richard Cordray to lead the Consumer Financial Protection Bureau, a role that he has held for the last year as a recess appointment.

In appointing Ms. White and Mr. Cordray, the White House is sending a signal about the importance of holding Wall Street accountable for wrongdoing. Both are former prosecutors.

Regulatory chiefs are often market experts or academics. But Ms. White, now a partner at Debevoise and Plimpton, spent nearly a decade the United States Attorney in New York, the first woman named to this post. Among her prominent cases, she oversaw the prosecution of John Gotti, the mafia boss, as well as the individuals responsible for the 1993 World Trade Center bombing.

As the attorney general of Ohio, Mr. Cordray made a name for himself suing Wall Street companies in the wake of the financial crisis.

The White House expects Ms. White and Mr. Cordray to draw on their prosecutorial backgrounds while carrying out a broad regulatory overhaul that Congress enacted in response to the crisis.

"The President will name two individuals to serve in top enforcement roles in his administration to help ensure we are effectively implementing these reforms so that Wall Street is held accountable and middle class Americans never again are harmed by the abuses of a few," the official said.

The decision to appoint Ms. White was widely expected after her name emerged as the likely pick in news reports last week. Ms. White will replace Elisse Walter, a longtime S.E.C. official, who took over as chairwoman after Mary L. Schapiro stepped down as the agency's leader in November.

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NYT > Home Page: Kerry to Field Questions From Panel He Chairs

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Kerry to Field Questions From Panel He Chairs
Jan 24th 2013, 08:37

WASHINGTON (AP) — Democratic Sen. John Kerry, on a smooth path to confirmation as secretary of state, is likely to face friendly questioning when he testifies before the committee that he's served on for 28 years and led for the past four.

The Senate Foreign Relations Committee chairman will sit at the witness table Thursday when he appears before the panel, a month after President Barack Obama said he wanted him to succeed Secretary of State Hillary Rodham Clinton. Clinton is stepping down.

The five-term Massachusetts senator is widely expected to win overwhelming bipartisan support from his colleagues, and that notion was reinforced by the list of people who will introduce him: Clinton, Massachusetts freshman Sen. Elizabeth Warren and Republican Sen. John McCain.

McCain and Kerry are friends who have worked closely on national security issues. They're also decorated Vietnam War veterans and former presidential candidates who know the sharp sting of defeat.

At the conclusion of a Capitol Hill news conference Tuesday, McCain joked about Kerry's hearing and the tough tactics that won't be employed.

"We will look forward to interrogating him at his hearing — mercilessly," McCain said to laughter. "We will bring back, for the only time, waterboarding to get the truth."

The hearing is the first of three for Obama's national security nominees and the least controversial.

Former Republican Sen. Chuck Hagel, nominated for defense secretary, will face tough questions about his past statements on Israel, Iran, nuclear weapons and defense spending at his confirmation hearing next Thursday before the Senate Armed Services Committee. John Brennan, the president's choice for CIA director, will be quizzed about White House national security leaks and the use of unmanned drones at his hearing next month.

The job of the nation's top diplomat would be the realization of a dream for Kerry, whom Obama passed over in 2008 when he chose Clinton. When Joe Biden became vice president, Kerry replaced the former Delaware senator as chairman of the committee. Sen. Bob Menendez, D-N.J., the incoming chairman, will preside at Kerry's hearing.

Obama nominated Kerry after Susan Rice, the U.S. ambassador to the United Nations, removed her name from consideration following criticism from Republicans over her initial comments about the attacks on the U.S. mission in Benghazi, Libya.

Kerry, 69, is the son of a diplomat and has served as Obama's unofficial envoy, using his skills of persuasion with leaders of Afghanistan and Pakistan.

Although a rough hearing is unlikely, Kerry will be pressed about the civil war in Syria and other hot spots, foreign aid and the Keystone XL oil pipeline, about which he'll have a major say.

More than half the Senate has urged quick approval of the pipeline, increasing the pressure on Obama to move forward on the project despite concerns from environmentalists.

"We urge you to choose jobs, economic development and American energy security," wrote 53 senators, who added that the pipeline "has gone through the most exhaustive environmental scrutiny of any pipeline" in U.S. history.

The $7 billion project would carry tar sands oil from Canada to refineries along the Texas Gulf Coast.

The Obama administration has twice thwarted the 1,700-mile pipeline, which Calgary-based TransCanada first proposed in late 2008. The State Department delayed the project in late 2011 after environmental groups and others raised concerns about a proposed route through environmentally sensitive land in Nebraska.

The State Department said this week it does not expect to complete a review of the project before the end of March. The State Department has jurisdiction over the pipeline because it crosses a U.S. border.

In the past, Kerry has played a major role on climate change legislation and has warned of the environmental dangers.

In advance of his hearing, Kerry said he plans to divest holdings in dozens of companies in his family's vast financial portfolio to avoid conflicts of interest if he is confirmed.

He notified the State Department earlier this month that within 90 days of his confirmation he would move to sell off holdings in three trusts benefiting him and his wife, Teresa Heinz Kerry. In the Jan. 8 letter to the department's Office of the Legal Adviser, Kerry said he would not take part in any decisions that could affect the companies he has holdings in until those investments are sold off.

Kerry is the wealthiest man in the Senate, worth more than $184 million, according to a 2011 Senate disclosure.

___

Associated Press writers Matthew Daly and Stephen Braun contributed to this report.

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NYT > Home Page: Djokovic Advances to Australian Open Final

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Djokovic Advances to Australian Open Final
Jan 24th 2013, 10:19

MELBOURNE, Australia (AP) — Two-time defending champion Novak Djokovic advanced to his third consecutive Australian Open final with a 6-2, 6-2, 6-1 win over No. 4-seeded David Ferrer on Thursday night.

The top-ranked Djokovic was in dominating form, hitting 30 crisp winners in the 1-hour, 29-minute match. He is aiming to be the first man in the Open era to win three consecutive Australian titles.

On Sunday, he'll meet the winner of Friday's semifinal between No. 2-ranked Roger Federer, a four-time Australian champion, and U.S. Open winner Andy Murray, who is ranked No. 3.

Djokovic, who is now unbeaten in five Grand Slam head-to-heads with Ferrer, allowed his opponent only four points in the first four games of the last set to strangle any chance of a comeback.

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NYT > Home Page: Benjamin Millepied to Be Paris Opera Ballet Director

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Benjamin Millepied to Be Paris Opera Ballet Director
Jan 24th 2013, 08:00

PARIS — Benjamin Millepied, the choreographer and a former principal at New York City Ballet, will be the new director of dance at the Paris Opera Ballet, starting in September 2014.

Benjamin Millepied.

Benjamin Millepied currently leads L.A. Dance Project.

The announcement, to be made on Thursday morning at the Palais Garnier by the general director of the Paris Opera, Nicolas Joel, will end months of intense speculation surrounding the successor to Brigitte Lefèvre, the director of dance at the Paris Opera since 1995 who plans to retire at the end of the 2013-14 season.

Mr. Millepied's appointment comes as a surprise as it was generally expected that a current or former company member would be chosen to lead one of the world's grandest and most traditional ensembles. The shortlist was considered to come from a small group of Paris Opera Ballet insiders, including the star dancers, or étoiles, Nicolas Le Riche, due to retire in 2014, and Laurent Hilaire, a ballet master with the company and Ms. Lefèvre's right-hand man.

Although Mr. Millepied, 35, was born in Bordeaux and trained at the Lyon Conservatory, he joined the School of American Ballet as a teenager. His subsequent professional career as a dancer was spent with City Ballet, where he rose quickly through the ranks to become a principal dancer in 2002. He retired in 2011 to focus on choreography, and moved to Los Angeles, where he founded the L.A. Dance Project last year.

In an interview on Wednesday at his hotel here, Mr. Millepied said he was approached relatively recently, in mid-November, by Stéphane Lissner, artistic director of La Scala, who is to succeed Mr. Joel as general director in 2015. In the Paris Opera hierarchy, the director of dance's artistic policy is subject to the approval of the general director, but in past decades there has been little interference or involvement.

"I certainly knew about the position, but I also knew that there were candidates from within the company," Mr. Millepied said. "I was surprised, but I felt very quickly that the artistic dialogue between us was an exciting one. After a while I did feel there was a really good chance I might get the position. Which made my head spin."

Well it might.

Mr. Millepied will inherit one of the world's greatest classical troupes. It has 150 dancers, a complex hierarchy of ranking and promotions and the sizable weight of history: the company is effectively an outgrowth of the very beginnings of ballet at the court of Louis XIV. Its dancers almost all come from the Paris Opera Ballet school, and they rarely leave to dance elsewhere once they have achieved a coveted position in the company.

They are also civil servants, with long-term contracts that run until their mandatory retirement, with pension, at 42. And with the notable exception of Ms. Lefèvre, directors tend to drop like flies at the Paris Opera. Even Rudolf Nureyev lasted only six stormy, if productive, years in the 1980s, while directors like John Taras and Violette Verdy managed just a few seasons.

The byzantine politics, scale and bureaucracy of the Paris Opera is worlds away from Mr. Millepied's professional experience. He has long put together touring groups, and even at the peak of his dancing career was an indefatigable organizer of small choreographic projects and festivals with musicians and artists. He is a prolific choreographer who has created works for major companies (including American Ballet Theater, City Ballet and the Paris Opera Ballet), and his public profile is high, thanks partly to his work on the Darren Aronofsky film "Black Swan" and his subsequent marriage to its star, Natalie Portman.

But his new company, the L.A. Dance Project, which made its debut in September in Los Angeles, is small and experimental in orientation. (Mr. Millepied said he planned to continue running the L.A. Dance Project until he began his new job, when he would move to Paris with Ms. Portman and their son. He said he hoped the company, which has a budget guaranteed for the next three years, would continue.)

A version of this article appeared in print on January 24, 2013, on page C1 of the New York edition with the headline: Millepied Will Be New Director of Paris Opera Ballet.

Media files:
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NYT > Home Page: Spanish Joblessness Climbs Again, With No Relief in Sight

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Spanish Joblessness Climbs Again, With No Relief in Sight
Jan 24th 2013, 08:34

MADRID (Reuters) - Spain's unemployment rate soared to its highest level since measurements began in the 1970s as a prolonged recession and deep spending cuts left almost 6 million people out of work at the end of last year.

Reuters

Spain's unemployment rate rose to 26 percent in the fourth quarter of 2012, or 5.97 million people, the National Statistics Institute said on Thursday, up from 25 percent in the previous quarter and more than double the European Union average.

"We haven't seen the bottom yet and employment will continue falling in the first quarter," said Citigroup strategist Jose Luis Martinez.

Spain sank into its second recession since 2009 at the end of 2011 after a burst housing bubble left millions of low-skilled laborers out of work and sliding private and business sentiment gutted consumer spending and imports.

Efforts by Prime Minister Mariano Rajoy's government to control one of the euro zone's largest deficits through billions of euros of spending cuts and tax hikes have fueled general malaise, further hampering demand.

When Rajoy took office in late 2011 there were 5.27 million jobless in Spain.

The economic downturn put an average of 1,900 out of work every day through 2012 and with the recession expected to last at least until the end of 2013, net job creation is unlikely this year.

Joblessness has been particularly acute for Spain's youth, with 60 percent of people under the age of 25 unemployed in the fourth quarter.

In the fourth quarter, the economy shrank at its fastest pace since the recession began, the Bank of Spain said on Wednesday, dragged down by a steep drop in private consumption due in part to a September VAT hike and public wage cuts.

(Additional reporting by Manuel Maria Ruiz; Writing by Paul Day; Editing by Fiona Ortiz)

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NYT > Home Page: Euro Watch: Data Point to Slow Recovery in Euro Zone

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Euro Watch: Data Point to Slow Recovery in Euro Zone
Jan 24th 2013, 10:11

The euro zone economy took a step closer to recovery this month as the rate of decline in the bloc's private sector eased more than expected, a business survey showed on Thursday.

But in an indication of the hurdles left to scale, Spain's unemployment surged to 26 percent in the fourth quarter, a record high since measurements began in the 1970s, as a prolonged recession and deep spending cuts left almost 6 million people out of work at the end of last year.

The manufacturing survey published by Markit supports European Central Bank President Mario Draghi's assertion that the 17-nation currency union is benefiting from "positive contagion" but still hints at an economic contraction in the first quarter of 2013.

Markit's Flash Composite Eurozone Purchasing Managers' Index, which surveys around 5,000 companies and is seen as a good growth indicator, jumped to 48.2 from December's 47.2, beating expectations for a rise to 47.5.

While the index has now held below the 50 mark that separates growth from contraction in all but one of the last 17 months, Markit said the data suggested conditions in the bloc were improving.

"We shouldn't get too gloomy about those numbers," Chris Williamson, a data collator at Markit, said. "There is a turning point that took place towards the end of last year and the beginning of this year so things are picking up. Any downturn is looking likely to end in the first half."

He added, however, that the manufacturing index was "still consistent" with gross domestic product in the 17-country bloc falling at a quarterly rate of about 0.2 percent to 0.3 percent.

The euro zone economy contracted in the second and third quarters of last year, meeting the technical definition of recession, and the downturn is expected to have deepened in the fourth quarter.

Earlier data from Germany, Europe's largest economy and the bloc's growth engine, showed its private sector expanded at its fastest pace in a year.

In neighboring France, data from Markit showed that business activity shrank in January at the fastest pace since the trough of the global financial crisis. The preliminary composite purchasing managers' index, covering activity in the services and manufacturing sectors combined, came out at 42.7 for the month, slumping from 44.6 in December.

Spain's unemployment rate rose to 26 percent in the fourth quarter of 2012, or 5.97 million people, the National Statistics Institute said on Thursday, up from 25 percent in the previous quarter and more than double the European Union average.

"We haven't seen the bottom yet and employment will continue falling in the first quarter," José Luis Martínez, a strategist with Citigroup, said.

Spain sank into its second recession since 2009 at the end of 2011 after a burst housing bubble left millions of low-skilled laborers out of work and sliding private and business sentiment gutted consumer spending and imports.

Efforts by Prime Minister Mariano Rajoy's government to control one of the euro zone's largest deficits through billions of euros of spending cuts and tax increases have fueled general malaise, further hampering demand.

Still, Mr. Draghi of the E.C.B. is taking an optimistic view, declaring earlier this month that the euro zone economy would recover later in 2013 and that there was now a "positive contagion" effect in play.

Europe's top central banker cited falling bond yields, rising stock markets and historically low volatility as evidence for this, causing several forecasters to ditch expectations for an imminent cut in euro zone interest rates.

A version of this article appeared in print on January 25, 2013, in The International Herald Tribune.

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NYT > Home Page: North Korea Vows Nuclear Test as Threats Intensify

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North Korea Vows Nuclear Test as Threats Intensify
Jan 24th 2013, 06:07

SEOUL, South Korea — North Korea vowed on Thursday to launch more long-range rockets and conduct its third nuclear test, ratcheting up tensions following the United Nations Security Council's decision to tighten sanctions against the country for launching a rocket last month.

In a statement issued through its state-run media, the National Defense Commission, the North's highest governing agency, headed by its young leader Kim Jong-un, said that "a variety of satellites and long-range rockets which will be launched by the D.P.R.K. one after another and a nuclear test of higher level which will be carried out by it in the upcoming all-out action" will be aimed at deterring the hostile policy of "the U.S., the sworn enemy of the Korean people."

The statement, which used the acronym for the North's official name, Democratic People's Republic of Korea, did not clarify when it would conduct such a test, which would be the first since Mr. Kim came to power in December 2011. But citing preparations at the Punggye test site in northeastern North Korea, South Korean officials and news media said that Pyongyang can conduct a new underground nuclear test there on short notice.

North Korea had previously hinted at the possibility of conducting a nuclear test, as its Foreign Ministry did on Wednesday when it issued a scathing statement rejecting a unanimous resolution that the Security Council adopted on Tuesday. The resolution tightened sanctions and condemned North Korea's Dec. 12 rocket launching as a violation of earlier resolutions banning the country from conducting any tests involving ballistic missile technology.

The North's statement on Thursday indicated that Mr. Kim, despite recent hints of economic reform and openness in North Korea, was likely to follow the pattern his father, Kim Jong il had established when he ran the country: a cycle of a rocket launching, U.N. condemnation and nuclear test.

Mr. Kim's posture threw a direct challenge to President Obama as he starts his second term, and to Park Geun-hye, who will be sworn in as president of South Korea next month.

After years of tensions with North Korea, both Mr. Obama and Ms. Park recently said they were keeping the door open for dialogue with North Korea on the premise that such engagement would lead to the eventual dismantling of its nuclear weapons program.

On Thursday, the North's National Defense Commission said the Security Council's move convinced it to "launch an all-out action" to foil Washington's hostile policy and "safeguard the sovereignty of the country and the nation." It said that North Korea's drive to rebuild its moribund economy and its rocket program, until now billed as a peaceful space project, will now "all orientate toward the purpose of winning in the all-out action for foiling the U.S."

"Settling accounts with the U.S. needs to be done with force, not with words as it regards jungle law as the rule of its survival," it said.

The North's comments came as Washington reaffirmed its policy of punishing North Korea for moving toward the development of long-range missiles tipped with a nuclear warhead, spearheading international backing for the Security Council resolution.

North Korea's Foreign Ministry said Wednesday that it would take "physical counteraction" to bolster its "nuclear deterrence both qualitatively and quantitatively."

In recent months, international experts have detected what appear to be new tunneling activities and efforts to fix flood damage in the Punggye-ri nuclear test site in northeastern North Korea. The North conducted an underground nuclear test in Punggye-ri in 2006 and in 2009.

North Korea said its Unha-3 rocket December put a scientific satellite into orbit. But Washington said the launching was a cover for testing technology for intercontinental ballistic missiles. After analyzing the debris of the rocket North Korea fired in December to put a satellite into orbit, South Korean officials said North Korea indigenously built crucial components of a missile that can fly more than 6,200 miles.

A new nuclear test by the North could help bolster its efforts to build a nuclear device small enough to mount on long-range missiles.

In recent years, North Korea has made it increasingly clear that it is determined to keep its nuclear weapons at whatever costs, undermining a once-popular belief that the Pyongyang government's brinkmanship was a mere bargaining ploy designed to get as many concessions as possible in exchange for nuclear weapons.

Choi Jin-wook, an analyst at the Korea Institute for National Unification in Seoul, said, "This is a strong message from North Korea, basically saying that no matter how much economic aid it receives, no matter how flexible other countries become, it will be negotiating only on the premise that it will be accepted and treated as a nuclear power."

He continued, "The North is sending a wake-up alarm to Washington and Seoul."

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