Canada pledges again to balance budget by 2015

OTTAWA/NEW YORK (Reuters) – The Canadian government on Friday reiterated its intention to balance its budget by 2015, three days after projecting there would be deficits until 2016-17.

In separate appearances in Quebec City and New York, Prime Minister Stephen Harper and Finance Minister Jim Flaherty were at pains to say they still intended to end the red ink by 2015.

“It remains the government’s plan, intention, to balance the budget prior to the next federal election. The recent economic and fiscal update by the minister indicates we are actually very close to that objective,” Harper told reporters in Quebec City. The next election is in October 2015.

Flaherty’s fall fiscal update on Tuesday had pushed back the target date for eliminating the deficit by a year, to 2016-17, citing a weak global economy.

But the minister said in a speech in New York that the government was on track to balance the budget in the next two to three years, barring major external events, and he later clarified that he intended a balanced budget by 2015.

“The prime minister’s always correct,” he chuckled.

He sought to explain the discrepancy by saying the fiscal update had built in a C$ 3 billion ($ 3 billion) contingency cushion, meaning there was an underlying surplus of C$ 1.2 billion for 2015-16. He said the projection of a C$ 1.8 billion deficit amounted to about half a percent of the C$ 275 billion federal budget.

“There’s lots of water to go under the bridge between now and then,” he said.

The opposition New Democratic Party noted the discrepancy in a release headlined: “Stephen Harper makes stuff up about balancing the budget.”

It pointed out that balancing the budget by the next election was not the same as balancing it by 2016-17.

As it is, even the 2015-16 timetable is a year later than offered in the Conservative campaign for reelection in May 2011. They had promised a balanced budget by 2014-15, followed by major personal income tax relief before the 2015 election.

Flaherty’s timetable drew criticism this week from the Canadian Taxpayers Federation, which said the minister had become expert at kicking the can down the road.

The projections could be thrown out of whack if the United States goes off the fiscal cliff, a set of automatic tax hikes and spending cuts that are to be triggered on January 2 if legislators and the White House cannot agree on a more nuanced budget deal.

Flaherty said U.S. failure to avert the fiscal cliff would cause a significant and immediate decline in Canada’s gross domestic product, and he would counter it.

Referring to a possible economic shock from Europe or the United States, he said: “If that were to happen and if the Canadian economy were to be pushed back into recession with the resulting danger for higher unemployment and the danger always of a prolonged recession, then we would act.”

He added: “We would not stand by and let that happen. The kinds of measure we can take: there are various tax measures we can take, there are measures with respect to stimulus we can take, these are things that we have done before and we can do again.”

On Tuesday, Flaherty spoke of having prepared various contingency plans.

(Additional reporting by Louse Egan; Editing by David Gregorio)

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Cisco to buy cloud-networking start-up Meraki for $1.2 billion

(Reuters) – Networking equipment company Cisco Systems Inc said it will buy privately held cloud networking company Meraki for $ 1.2 billion in cash as part of its cloud and networking strategy.

Cisco said the acquisition of Meraki, which was founded in 2006 by members of MIT’s Laboratory for Computer Science, is expected to close in the second quarter of Cisco’s 2013 fiscal year and is subject to regulatory approval.

Cisco’s second quarter runs until the end of January.

Meraki – funded by Sequoia Capital and Google Inc – offers Wi-Fi technology, switching, security and mobile device management from the cloud with a focus on mid-sized businesses.

“This is a very logical move for Cisco,” said ZK research analyst Zeus Kerravala.

He said the deal will allow Cisco to offer alternative solutions to traditional Wi-Fi deployment models like smaller competitors, such as Aruba Networks and Ruckus Wireless, which debuted on Friday.

“Cisco didn’t really have anything to counter that before,” Kerravala noted.

Meraki’s Chief Executive Sanjit Biswas said in a letter to employees posted on the company website that Cisco had approached the company several weeks ago.

The company’s founders had at first rejected the offer in favor of continuing Meraki’s strategy aimed at an initial public listing.

“After several weeks of consideration, we decided late last week that joining Cisco was the right path for Meraki,” Biswas said.

He also said that Meraki had achieved a $ 100 million bookings run rate, grown to 330 employees and had a positive cash flow.

(Reporting by Nicola Leske, editing by Gary Crosse)

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Seacrest, Wonder, Usher, others praise Dick Clark

LOS ANGELES (AP) — Ryan Seacrest and Stevie Wonder paid homage to Dick Clark on stage, while Usher and will.i.am shared their praise for the TV icon and music lover off camera.

Clark, who died earlier this year, was the subject of a special tribute at the American Music Awards, which he created 40 years ago.

Seacrest said the show still reflects Clark’s original vision: Bring together the year’s most popular artists and “let the music speak for itself.”

“Dick loved the power of music and its ability to create pure joy,” Seacrest said Sunday before introducing Wonder, whom he described someone Clark loved as a friend and musician for 49 years.

“I remember his friendship and his kindness. I remember his love for music and his love for people,” Wonder said. “I challenge you, you as communicators, leaders, politicians, spiritual leaders: Put your love first like we musicians put our music first… Then we can be jamming until the break of dawn.”

Wonder played a medley of songs as images of Clark and the many musicians he worked with flashed across the screen.

Other artists shared their admiration for Clark on the red carpet and backstage at the Nokia Theatre. Will.i.am, who presented the artist of the year award to Justin Bieber, said Clark’s legacy for spotting and encouraging talent is why the American Music Awards have endured for 40 years.

“I remember seeing Whitney Houston on the American Music Awards. Lionel Richie. Santana. Jefferson Airplane,” he said. “Think of all the classic, iconic television moments. Now, my generation is part of it and the next generation is part of this American iconic family time.”

Usher, who was named favorite male soul/R&B artist Sunday, said he always admired Clark and aims to emulate his legacy of fostering young talent.

“He’s so rich with culture and been able to recognize talent for so many years and have an incredible legacy. I’m just really happy to still be a part of it and still take an award home,” Usher said. “To be an artist that’s been able to continue to evolve and transcend culture, it’s from the book of Dick Clark, the fact that he’s, throughout generations, been able to recognize incredible talent across genres.”

Usher helps guide the career of the night’s big winner, Bieber, who accepted awards for pop/rock male artist, pop/rock album for “Believe” and artist of the year Sunday.

“The proof is in the pudding,” Usher said. “The longer you do it, the more of an example you can set and being able to be that to him, being a mentor and just being an artist who continues to evolve… we’re just going to continue to push him to be his best self.”

___

AP Entertainment Writer Sandy Cohen is on Twitter: www.twitter.com/APSandy .

___

Online:

http://beta.abc.go.com/shows/american-music-awards

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One in 20 youth has used steroids to bulk up: study

NEW YORK (Reuters Health) – About five percent of middle and high school students have used anabolic steroids to put on muscle, according to a new study from Minnesota.

In addition to steroid use, more than one-third of boys and one-fifth of girls in the study said they had used protein powder or shakes to gain muscle mass, and between five and 10 percent used non-steroid muscle-enhancing substances, such as creatine.

Researchers said a more muscular body ideal in the media may be one factor driving teens to do anything possible to get toned, as well as pressure to perform in sports.

“Really the pressure to start using (steroids) is in high school,” said Dr. Linn Goldberg, from Oregon Health & Science University in Portland.

“You get the influence of older teens in high school, so when you’re a 14-year-old that comes in, you have 17-year-olds who are the seniors, and they can have great influence as you progress into the next stage of your athletic career.”

The new data came from close to 2,800 kids and teens at 20 different middle and high schools in the Minneapolis/St. Paul area. During the 2009-2010 school year, those students completed a survey on food and weight-related behaviors, including activities tied to muscle gain.

The majority of kids surveyed were poor or middle-class.

Almost all of them had engaged in at least one muscle-building activity in the past year, most often working out more to get stronger. But up to one-third of kids and teens used what the researchers deemed to be unhealthy means to gain muscle mass, including taking steroids and other muscle-building substances or overdoing it on protein shakes, dieting and weight-lifting.

Student-athletes were more likely than their peers to use most methods of muscle-building. Steroid use, however, was equally common among athletes and non-athletes.

According to findings published Monday in the journal Pediatrics, Asian students were three to four times more likely to have used steroids in the past year than white students. Most Asians in the study were Hmong, lead researcher Marla Eisenberg from the University of Minnesota in Minneapolis and her colleagues noted.

Their study shows higher adolescent use of steroids and other muscle-boosting substances than most other recent research and “is cause for concern,” according to the researchers. But it’s not clear whether the findings would apply to an area outside of the Twin Cities, or among wealthier students, they noted.

ROID RAGE?

Anabolic steroids are synthetic versions of testosterone, the male sex hormone. Steroids are prescribed legally to treat conditions involving hormone deficiency or muscle loss, but when they’re used for non-medical purposes, it’s typically at much higher doses, according to the National Institute on Drug Abuse.

In those cases, steroids can cause mood swings – sometimes known as roid rage – and for adolescents, stunted growth and accelerated puberty.

Anabolic steroids have become pervasive in professional sports, including baseball, football and boxing. (Another example of performance-enhancing drug use is “blood doping” with erythropoietin or EPO, which is behind the Lance Armstrong cycling controversy that caused him to be stripped of his Tour de France titles last month.)

Experts have worried that the drive to get ahead of competitors at any cost could trickle down to college and high school athletes, as well.

Goldberg, co-developer of the ATLAS and ATHENA programs to prevent steroid and other substance use on high school teams, said it’s important to give teens healthier alternatives to build muscle.

“I would stay away from all supplements, because you don’t know what’s in them,” Goldberg, who wasn’t involved in the new study, told Reuters Health.

“What’s important is to teach kids how to eat correctly,” he said. Goldberg said getting enough protein through food, eating breakfast and avoiding muscle toxins like alcohol and marijuana can all help young athletes get stronger without shakes or supplements.

Eisenberg’s team did not find clustering of steroid use and other muscle-enhancing behaviors within particular schools.

“Rather than being driven by a particular school sports team coach or other features of a school’s social landscape, this diffusion suggests that muscle-enhancing behaviors are widespread and influenced by factors beyond school, likely encompassing social and cultural variables such as media messages and social norms of behavior more broadly,” the researchers wrote.

SOURCE: http://bit.ly/jsoh2P Pediatrics, online November 19, 2012.

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Schools dubbed ‘exam factories’

18 November 2012 Last updated at 19:05 ET

By Angela Harrison Education correspondent, BBC News

Business leaders say some UK schools have become “exam factories” and are calling for children to be given a broader education.

The CBI is calling for radical changes to schools.

It says there is too much focus on exams at 16 and that should be switched to 18, with more emphasis on skills people need for life and work.

It calls for schools inspectors and league tables to look beyond exam results.

But it says improved attainment would boost the UK’s economic growth.

The CBI, the employers’ organisation, made the recommendations in a report released at the start of its annual conference.

Its director general John Cridland said: “In some cases secondary schools have become an exam factory.

“Qualifications are important, but we also need people who have self-discipline and serve customers well. As well as academic rigour, we need schools to produce rounded and grounded young people who have the skills and behaviours that businesses want.”

The business leaders say their report is for the UK as a whole, but power over education is devolved from Westminster and policies and exams taken differ.

Some of their recommendations relate most closely to schools in England, where Education Secretary Michael Gove is overhauling the school system, including exams.

‘Cult of the average’

Mr Cridland told journalists the CBI was not criticising government policies – or teachers.

“Government reforms are heading in the right direction, but are not sufficient on their own and must go further and faster,” he said.

The report backs England’s academy programme – where schools are encouraged to take on more independence – but is also critical.

It attacks what it calls the “cult of the average”, saying 40% of young people are underachieving while the top 10% are not being stretched enough.

The report says UK schools have had 35 years of “piecemeal reforms” and the result has been a “gentle upswing in performance”, judged by international benchmarks, but also a “long tail of low achievement”.

In England, from 2015, young people will be expected to stay in education or training until they are 18 and the CBI says the focus should be switching more towards exams at 18, with improved vocational A-levels. All children should study English and maths until that age, it recommends, which is in line with Labour proposals.

A spokesman for the Department for Education said: “The CBI rightly recognises the importance of English and maths, calls for greater rigour in the curriculum and in exams, welcomes the academy programme, wants a new accountability system and backs greater freedom for teachers.

“These are all part of the government’s radical package of reforms that will give England’s education system the thorough overhaul it needs.”

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Israel, Gaza fighting rages on as Egypt seeks truce

GAZA/JERUSALEM (Reuters) – Israel bombed Palestinian militant targets in the Gaza Strip from air and sea for a fifth straight day on Sunday, preparing for a possible ground invasion though Egypt saw “some indications” of a truce ahead.

Militant rocket fire into Israel subsided during the night but resumed in the morning with three rockets fired at the nearby coastal city of Ashkelon, the Israeli army said.

“As of now we have struck more than 1,000 targets, so Hamas should do the math over whether it is or isn’t worth it to cease fire,” Israeli Vice Prime Minister Moshe Yaalon, over Twitter.

“If there is quiet in the South and no rockets and missiles are fired at Israel’s citizens nor terrorist attacks engineered from the Gaza Strip, we will not attack.”

Forty-eight Palestinians, about half of them civilians, including 13 children, have been killed in Israel’s raids, Palestinian officials said. More than 500 rockets fired from Gaza have hit Israel, killing three people and injuring dozens.

Israel unleashed intensive air strikes on Wednesday, killing the commander of the Hamas Islamist group that governs Gaza and spurns peace with the Jewish state. Israel’s declared goal is to deplete Gaza arsenals and press Hamas into stopping cross-border rocket fire that has plagued Israeli border towns for years.

Air raids continued past midnight into Sunday, with warships shelling from the sea. A Gaza City media building was hit, witnesses said, wounding 6 journalists and damaging facilities belonging to Hamas’s Al-Aqsa TV as well as Britain’s Sky News.

An Israeli military spokeswoman said the strike had targeted a rooftop “transmission antenna used by Hamas to carry out terror activity”.

Two other predawn attacks on houses in the Jabalya refugee camp killed two children and wounded 13 other people, medical officials said.

These attacks followed a defiant statement by Hamas military spokesman Abu Ubaida, who told a news conference: “This round of confrontation will not be the last against the Zionist enemy and it is only the beginning.”

The masked gunman dressed in military fatigues insisted that despite Israel’s blows Hamas “is still strong enough to destroy the enemy”.

An Israeli attack on Saturday destroyed the house of a Hamas commander near the Egyptian border.

Casualties there were averted however, because Israel had fired non-exploding missiles at the building beforehand from a drone, which the militant’s family understood as a warning to flee, and thus their lives were spared, witnesses said.

Israeli aircraft also bombed Hamas government buildings in Gaza on Saturday, including the offices of Prime Minister Ismail Haniyeh and a police headquarters.

Among those killed in air strikes on Gaza on Saturday were at least four suspected militants riding motorcycles, and several civilians including a 30-year-old woman.

ISRAELI SCHOOLS SHUT

Israel said it would keep schools in its south shut on Sunday as a precaution to avoid casualties from rocket strikes reaching as far as Tel Aviv and Jerusalem in the past few days.

Israel’s “Iron Dome” missile interceptor system destroyed in mid-air a rocket fired by Gaza militants at Tel Aviv on Saturday, where volleyball games on the beach front came to an abrupt halt as air-raid sirens sounded.

Hamas claimed responsibility for the attack on Tel Aviv, the third against the city since Wednesday. It said it had fired an Iranian-designed Fajr-5 at the coastal metropolis, some 70 km (43 miles) north of Gaza.

In the Israeli Mediterranean port of Ashdod, a rocket ripped into several balconies. Police said five people were hurt.

Israel’s operation has drawn Western support for what U.S. and European leaders have called Israel’s right to self-defense, but there was also a growing number of calls from world leaders to seek an end to the violence.

British Prime Minister David Cameron “expressed concern over the risk of the conflict escalating further and the danger of further civilian casualties on both sides,” in a conversation with Israeli Prime Minister Benjamin Netanyahu, a spokesperson for Cameron said.

London was “putting pressure on both sides to de-escalate,” the spokesman said, adding that Cameron had urged Netanyahu “to do everything possible to bring the conflict to an end.”

Ben Rhodes, a deputy national security adviser to President Barack Obama, said the United States would like to see the conflict resolved through “de-escalation” and diplomacy, but also believes Israel has a right to self-defense.

Egyptian President Mohamed Mursi said in Cairo as his security deputies sought to broker a truce with Hamas leaders, that “there are some indications that there is a possibility of a ceasefire soon, but we do not yet have firm guarantees.”

Egypt has mediated previous ceasefire deals between Israel and Hamas, the latest of which unraveled with recent violence.

A Palestinian official told Reuters the truce discussions would continue in Cairo on Sunday, saying “there is hope,” but it was too early to say whether the efforts would succeed.

In Jerusalem, an Israeli official declined to comment on the negotiations. Military commanders said Israel was prepared to fight on to achieve a goal of halting rocket fire from Gaza, which has plagued Israeli towns since late 2000, when failed peace talks led to the outbreak of a Palestinian uprising.

Diplomats at the United Nations said Secretary-General Ban Ki-moon is expected to visit Israel and Egypt in the coming week to push for an end to the fighting.

POSSIBLE GROUND OFFENSIVE

Israel, with tanks and artillery positioned along the frontier, said it was still weighing a ground offensive.

Israeli cabinet ministers decided on Friday to more than double the current reserve troop quota set for the Gaza offensive to 75,000 and around 16,000 reservists have already been called up.

Asked by reporters whether a ground operation was possible, Major-General Tal Russo, commander of the Israeli forces on the Gaza frontier, said: “Definitely.”

“We have a plan. … It will take time. We need to have patience. It won’t be a day or two,” he added.

A possible move into the densely populated Gaza Strip and the risk of major casualties it brings would be a significant gamble for Netanyahu, favored to win a January election.

The last Gaza war, a three-week Israeli blitz and invasion over the New Year of 2008-09, killed 1,400 Palestinians, mostly civilians. Thirteen Israelis died in the conflict.

But the Gaza conflagration has stirred the pot of a Middle East already boiling from two years of Arab revolution and a civil war in Syria that threatens to spread beyond its borders.

One major change has been the election of an Islamist government in Cairo that is allied with Hamas, potentially narrowing Israel’s maneuvering room in confronting the Palestinian group. Israel and Egypt made peace in 1979.

(Writing by Allyn Fisher-Ilan; Editing by Douglas Hamilton)

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14 Black Friday Tech Deals Start Early at Walmart

1. Apple iPad 2 — 16GB

$ 399

Click here to view this gallery.

[More from Mashable: Top 10 Twitter Pics of the Week]

This year Walmart is starting Black Friday on Thursday, so you can get an early start on your holiday tech savings. You’ll need to gobble up your Thanksgiving dinner early and get over to Walmart; the company is kicking off in-store deals at 8 p.m. local time on Thanksgiving, when you can snag a Nintendo Wii Console for $ 89.

The big electronics event begins at 10 p.m. with deals on a Samsung 43-inch plasma TV and a NOOK Color. Don’t worry that they’ll run out of those door-buster deals either. Walmart is offering a one-hour guarantee on select consumer electronics during Thursday’s 10 p.m. event.

[More from Mashable: Stylish HiRise Stand Elevates Laptops to the Ideal Height]

Walmart says customers inside the store and in line between 10 p.m. and 11 p.m. local time can purchase an Apple iPad 2 16GB with Wi-Fi for $ 399 and score a $ 75 Walmart gift card, an Emerson 32-inch 720p LCD TV for $ 148 and an LG Blu-ray Player for $ 38. If the store runs out of stock, you’ll receive a Guarantee Card for the item, which you must purchase by midnight and register online.

If shopping online from the comfort of your home is more appealing than elbowing your way through a jam-packed store, Black Friday specials will be posted on Walmart’s website early on Thanksgiving Day. Head to Walmart’s Facebook page or use its mobile app to check out all the deals.

Scroll through the gallery above to see the top 14 tech deals we spotted, and let us know if you’ll be out shopping the specials this Black Friday.

Thumbnail image courtesy of Flickr, el neato

This story originally published on Mashable here.

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Dark Horse graphic novel adaptation “The Strange Case of Hyde” gets new writer

LOS ANGELES (TheWrap.com) – Screenwriter Albert Torres has come on board to re-write the script for feature film adaptation of the Dark Horse graphic novel, “The Strange Case of Hyde,” one of his representatives has told TheWrap.

The film is based on the graphic novel of the same name, which was written by Cole Haddon and published in 2011.

“The Strange Case of Hyde” follow Dr. Jekyll, after he is allegedly rehabilitated, and released from prison to help hunt a new monster who appears to be using an improved version of the infamous Hyde serum.

The film is being produced by Dark Horse Entertainment, Skydance Productions and Mark Gordon Productions.

The now classic characters Dr. Jekyll and Mr. Hyde first appeared in a novella by Robert Louis Stevenson in 1886.

Torres credits include “Henry Poole Is Here,” which starred Luke Wilson. He was also hired earlier this year to write a big-screen version of the Cartoon Network series “Ben 10″ for Silver Pictures.” He also came on board recently to re-write the script for “Akira” for Appian Way. Torres is represented by 3 Arts Entertainment and CAA.

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Golf-Obsession drove Aussie Batibasaga to mental institution

MELBOURNE, Nov 18 (Reuters) – The desire to improve can drive professional athletes to distraction, but for Australian golfer Rika Batibasaga it became a dangerous obsession that saw him handcuffed and thrown into a Florida mental institution.

In 2008, Batibasaga, whose father played international rugby for Fiji, was a 21-year-old living in Florida and grafting on the Nationwide Tour when his world spectacularly imploded.

“I was living away from home for the first time and it all got too much for me,” Batibasaga told Reuters at the Australian Masters in Melbourne on Sunday.

“I had a psychotic episode – it’s called psychosis. I lost the plot because of a lack of sleep – just due to stress.

“And I couldn’t control it and basically just flipped it out.”

Like hundreds of other young talents drawn to the United States to chase their dreams, Batibasaga felt hard work would prove the difference after he carried countryman and former house-mate Jason Day’s bag at a local tournament.

Feeling his game was not far off the professionals in that tournament, Batibasaga threw himself into a punishing training regime of 10-hour days hitting hundreds of balls, followed by running and gym sessions.

“It was stupid. It became an obsession. I felt I needed to push it a lot harder because I was almost there,” he recalled.

“But my brain just wouldn’t turn off and I would just get so frustrated and angry.

“When I went two or three days without sleep, I panicked and that it made it even worse. It just sort of snowballed.”

Into his sixth consecutive day without sleep, Batibasaga snapped.

Wearing just a pair of underwear, he jumped into a car belonging to the owner of the Orlando house he was living in and crashed it in the garage.

He jumped into another car, this one his house mate’s, and was arrested by police in front of Universal Studios.

“They both had their guns out. I guess it’s just America and they love pulling a gun on someone,” Batibasaga, an affable 25-year-old with a wispy beard, laughed.

“I was just driving around, I had no idea where I was going. I was in no state to drive.

“They put me in an ambulance, they obviously thought I was on drugs. They knocked me out at the hospital and I woke up feeling fine.”

With no phone or identification cards, Batibasaga was taken to a mental hospital where he spent “probably the scariest two days” of his life before being checked out.

The same problems came back to haunt him later, though, and he returned home for further treatment and a course of prescription drugs at a Brisbane hospital where he was diagnosed with bipolar disorder.

Batibasaga, who made the cut in his debut Australian Masters, has not suffered any further mental illness, and has learnt to take a more measured approach to success and failure.

He continues to grind on the minor tours but has shown signs of his promise, winning A$ 18,459 ($ 19,000) at the European Tour co-sanctioned Perth International last month for finishing joint 25th.

Batibasaga still has the green uniform from the Lakeside mental institution in Florida as a souvenir and wore it out to a New Year’s Eve party.

He says dozens of young golfers struggling to make the step up to the A-grade suffer from anxiety and depression that borders and often crosses over into mental illness.

“It’s rife. Because you’re always by yourself and if you’re not playing well, you go back to your hotel alone,” he said.

“When things aren’t going well, that’s when it’s tough.” ($ 1 = 0.9702 Australian dollars) (Editing by Nick Mulvenney)

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Europe’s Economy: Look Out Below, Again

It’s official: Europe has double-dipped. The 17-country euro zone has fallen into its second recession since 2008, as figures released on Nov. 15 showed gross domestic product declining 0.1 percent during the third quarter. That followed a 0.2 percent contraction during the previous three months, according to the European Union’s statistics office.

There were some unexpected bright spots. Germany and France posted 0.2 percent quarter-on-quarter growth, ahead of expectations. Even some of the region’s most troubled economies suffered relatively modest contractions, including 0.3 percent in Spain and 0.2 percent in Italy.

Overall, though, “Europe’s economic downturn has not only deepened; it’s broadened with a vengeance,” says Nicholas Spiro, managing director of Spiro Sovereign Strategy in London. Usually solid economies in such countries as Austria and the Netherlands were among those posting quarterly declines.

In some countries, even worse times could lie ahead. “Whereas austerity is starting to ease in Italy, Spain is heading for the point of maximum pain,” economist Holger Schmieding of Berenberg Bank in London wrote in a research note. Recent austerity measures in Spain “will likely lead to a more pronounced recession” during the current quarter and in early 2013, Schmieding says.

France’s 0.2 percent expansion, which followed three quarters of flat growth, “is probably the result of a temporary rebound at the European level,” says Michel Martinez, an economist at Société Générale in Paris. France “is heading to a moderate recession or at best remaining flat.”

The picture isn’t likely to improve soon, Spiro says. “We’re looking at a period of extreme weakness. This is all because of the repeated failures on the part of politicians to shore up confidence in the single currency area.”

Businessweek.com — Top News

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