Hollande vows to revive French supertax
France's President Francois Hollande says he still plans to raise the top rate of income tax after his 75% plan was struck down on technical grounds.
In a national address on New Year's Eve, he said the law would be redesigned, adding, "we will still ask more of those who have the most".
However, he did not mention the 75% figure, leading some to speculate that the move would be watered down.
The president also promised "all efforts" towards cutting unemployment.
The number of jobless broke the three-million barrier for the first time this year, prompting Mr Hollande to say the trend must be reversed.
Mr Hollande has been criticised for lacking direction, and his popularity levels have plummeted, since he took power in May.
He acknowledged the "serious and legitimate" concerns of the public, and that there had been "fits and starts" in his first six months.
But the president insisted France would emerge from the financial crisis "sooner and stronger" than expected because of action by his government.
"We've set the course - jobs, competitiveness and growth - and I will not deviate. It's the future of France," he said.
The Socialist president said he would resubmit his flagship policy of raising income tax for those earning more than 1m euros (£817,000) a year.
It was rejected by the Constitutional Council on Saturday because, unlike other forms of income tax, it was to be applied to individuals rather than households.
Mr Hollande said while the law would be "redesigned" its objective would remain the same - that those who could afford to do so should pay more to France's effort to tackle its deficit.
The policy has angered France's business leaders and the right-wing opposition, who say it discourages entrepreneurship and wealth-creation. It has led to some wealthy citizens, like the actor Gerard Depardieu, to say they would emigrate.
While the measure is popular with Mr Hollande's supporters on the left, some analysts think it may be dropped or watered down, possibly by raising the income level at which it is paid.
"I suspect this tax will be shelved," Philippe Gudin, an economist for Barclays and a former French treasury official, told Reuters news agency.
"For the [low amount of] revenue it would raise, the outcry it has provoked and the damage it has done to France's image, it would be more sensible if it were quietly buried."
--BBC
Singapore growth beats estimates as it avoids recession
Singapore's economy has averted a technical recession, as it reported better-than-expected growth data for the fourth quarter.
The economy expanded 1.1% in the October to December period, from a year earlier, advance estimates showed.
On a quarter-on-quarter basis, the economy grew 1.8%. That is up from a 6.3% contraction in the third quarter.
Growth was boosted by a rebound in the services industries, which include retail, finance and insurance sectors.
For the full year, the government said it estimates the economy to have grown by 1.2%.
That is lower than its forecast of around 1.5% annual growth for 2012.
The Ministry of Trade and Industry said in a statement that growth was impacted by "the weakness in the manufacturing sector".
Singapore's manufacturing sector, which has been hurt by slowing global demand, has contracted for three successive quarters.
According to the latest data, the sector shrunk 10.8% in the fourth quarter, from the previous three months.
That follows a 9.9% contraction in the third quarter.
Analysts said that given the weak global demand, the sector may continue to remain under pressure in the coming months.
"Manufacturing still looks weak as seen from the double-digit decline," said Selena Ling, head of treasury research at OCBC in Singapore.
"Near term, it's hard to see any improvement in manufacturing."
The ministry issues advance estimates based largely on data for the first two months of the quarter.
--BBC
Merkel warns Germans of tough economic times ahead
Chancellor Angela Merkel has warned that the German economic climate in 2013 will be "even more difficult".
In her new year message, she also cautioned that the eurozone debt crisis was far from over.
However, she did say that reforms designed to address the roots of the problem were beginning to bear fruit.
Her comments appeared to contradict German Finance Minister Wolfgang Schaeuble who said last week that the worst of the crisis was over.
In a taped interview to be broadcast later on Monday, Mrs Merkel urged Germans to be more patient.
"I know that many people are naturally concerned going into the new year," she said.
"The economic environment will not in fact be easier but rather more difficult next year. But we shouldn't let that get us down; rather it should spur us on."
She linked future German prosperity to a prosperous European Union.
"For our prosperity and our solidarity, we need to strike the right balance," she said.
"The European sovereign debt crisis shows how important this balance is.
"The reforms that we've introduced are beginning to have an impact. Nevertheless we need to have further continued patience. The crisis is far from over."
In an interview with the German newspaper Bild last week, Mr Schaeuble cited positive developments in Greece and France, saying: "I think the worst is behind us."
Germany - Europe's largest economy - has been the paymaster in the eurozone crisis, a move unpopular with many German voters and some conservative MPs in Mrs Merkel's coalition.
Analysts say most Germans remain wary of eurozone bailouts but generally approve of Mrs Merkel's handling of the crisis.
In October, the German government slashed its forecast for economic output in 2013 to 1.0%, compared to 1.6% previously anticipated.
The country's central bank has said Germany may even come close to recession early in the new year.
Nevertheless, Mrs Merkel underlined that Germany in 2012 had the lowest unemployment since reunification in 1990.
President Obama praises US 'fiscal cliff' deal
Barack Obama has hailed a deal reached to stave off a "fiscal cliff" of drastic taxation and spending measures as "just one step in the broader effort to strengthen the economy".
The US president was speaking after the House of Representatives passed a Senate-backed bill by 257 votes to 167.
It raises taxes for the wealthy and delays spending cuts for two months.
There had been intense pressure for the vote to be passed before financial markets reopened on Wednesday.
In Tuesday night's house vote, 172 Democrats and 85 Republicans voted in favour of the bill.
It had been passed in the Senate less than 24 hours earlier by 89 votes to eight after lengthy talks between Vice-President Joe Biden and Senate Republicans.
Speaking before returning to Hawaii for his interrupted Christmas holiday, Mr Obama said that in signing the law he was fulfilling a campaign pledge.
"I will sign a law that raises taxes on the wealthiest 2% of Americans... while preventing a middle-class tax hike," he told a White House press conference.
The US deficit was still too high, he said: While open to compromise on budgetary issues, he would not offer Congress spending cuts in return for lifting the government's borrowing limit, known as the debt ceiling.
"There is a path forward, if we focus not on politics, but on what's right for the country," added Mr Obama.
The "fiscal cliff" measures - cutting spending and increasing taxes dramatically - came into effect automatically at midnight on Monday when George W Bush-era tax cuts expired.
The 1 January deadline triggered tax increases of about $536bn and spending cuts of $109bn from domestic and military programmes.
Economists had warned that if the full effects of the fiscal cliff were allowed to take hold, the resulting reduction in consumer spending could have sparked a new recession.
The compromise deal extends the tax cuts for Americans earning under $400,000 (£246,000) - up from the $250,000 level Democrats had originally sought.
In addition to the income tax rates and spending cuts, the package includes:
Rises in inheritance taxes from 35% to 40% after the first $5m for an individual and $10m for a couple
- Rises in capital taxes - affecting some investment income - of up to 20%, but less than the 39.6% that would prevail without a deal
- One-year extension for unemployment benefits, affecting two million people
- Five-year extension for tax credits that help poorer and middle-class families
-BBC
Thousands in Hong Kong Protest Against China-Backed Leader
Thousands of protesters in Hong Kong are calling for the city's scandal-ridden chief executive to step down and demanding that China allow them to elect their own leaders.
Police say about 17,000 protesters joined a New Year's Day march through the city, holding signs and chanting slogans demanding the Beijing-backed chief executive Leung Chun-ying step down.
Leung, who took office in July, has faced widespread criticism following revelations that he tried to cover up illegal construction at his luxury homes – a sensitive issue in the crowded city, where space is at a premium.
One of the protesters Tuesday, Hong Kong resident Calvin Tse, was among those calling for China to allow universal suffrage in the former British colony.
“Under the current mechanism, no matter how much we dislike the chief executive, we cannot make him step down. So, I am forced to come out to ask him to step down. We don't even have a vote, he is elected by a small group of people. We cannot use our voting right to express our view no matter what his performance is like.”
Citizens in Hong Kong, which returned to Chinese rule in 1997, were not given the right to elect their leader until 2017. Leung was elected in March by a committee dominated by pro-China appointees.
Many residents were upset that Leung's victory came after he criticized his rival, Henry Tang, for building an illegal basement in his own multi-million dollar home. Leung has apologized, but protesters have insisted that he step down.
In a statement Tuesday, Leung said he would “humbly” listen to the public's views. Police said as many as 8,000 protesters joined a rally in support of the leader.
In December, Leung narrowly survived a no-confidence vote in the legislature, thanks to undemocratically appointed, pro-Beijing legislators swaying the outcome.
The scandal comes amid rising anger among Hong Kong residents that China is meddling in local affairs.
60 Crushed to Death in Ivory Coast
Officials in Ivory Coast say at least 60 people were crushed to death during a stampede at a New Year's celebration in Abidjan.
At least 50 others were injured in the incident, which took place early Tuesday in the Plateau district, at a stadium where people had gathered to watch fireworks.
AIP television in Ivory Coast reports that most of the victims were teenagers. Distraught parents came to the stadium Tuesday, searching for their missing children among the bodies.
Authorities have launched an investigation into what caused the stampede.
US Oil Rig Grounded Off Alaska
A huge Shell Oil drilling rig has run aground in a storm off the rugged coast of the remote U.S. state of Alaska.
The U.S. Coast Guard said the Kulluk broke free from the ship handling it in rough seas in the Gulf of Alaska on New Year's Eve and then was cut loose from a tug boat. In less than an hour, it ran aground on the rocky shoreline of the uninhabited Sitkalidak Island as winds reached more than 100 kilometers per hour.
Crew members were rescued before the grounding. Officials said the rig is carrying 567,000 liters of diesel fuel and 45,000 liters of lube oil and hydraulic fluid. There were no immediate signs the oil was leaking.
The grounding is the latest setback in Shell's efforts to explore for oil in Alaska's Arctic waters, which have been opposed by American Indian and environmental groups and hindered by damage to drilling equipment.
Syria Begins New Year With More Violence
Syrian government troops and rebel forces fought Tuesday on the outskirts of Damascus and near the city of Aleppo.
Government aircraft pounded eastern suburbs of the capital and rebel-held areas of Aleppo, the country's commercial hub.
Authorities announced the closure of Aleppo airport because of rebel attacks. The Britain-based Syrian Observatory for Human Rights reported heavy fighting around the base of Syrian army Brigade 80, part of the airport protection force.
Anti-government activists also reported heavy fighting in the Damascus suburb of Daraya, with bombing by Syrian warplanes. Syria's government-run media said troops killed “tens of terrorists” in Daraya and nearby areas.
Syrian rebels are trying to oust President Bashar al-Assad. Activists say 45,000 people have been killed in the conflict that began with peaceful anti-government protests in March 2011.
On Monday, Syria's Prime Minister Wael al-Halaqi said the government was open to talks aimed at solving the conflict. He was responding to U.N.-Arab League envoy Lakhdar Brahimi, who said Sunday he has a plan that is acceptable to world powers.
Brahimi said the plan calls for all sides in Syria to end hostilities, enter into a national dialogue, and form a transitional government leading to new elections. But the plan says nothing about the fate of President Assad, an omission that appears to have stalled its progress.
Uefa to appeal against Serbia and England U21 bans
European football governing body Uefa has decided to appeal against sanctions imposed by its own disciplinary body on Serbia and England's Under-21 players.
England's Steven Caulker and Thomas Ince and four players and two coaches from Serbia were banned, after a brawl at the game in Krusevac in October.
Uefa also ordered Serbia to play their next competitive under-21 match behind closed doors and fined them £65,000.
The sanctions have been widely viewed as being too lenient.
The game ended with scuffles over alleged racist chants from Serbian fans towards England players.
A statement on Uefa's website read: "Uefa, via the Uefa disciplinary inspector appointed to the case, has decided to appeal all the sanctions imposed by the Control and Disciplinary Body relating to incidents which took place at the 2013 Uefa European Under-21 Championship play-off second-leg match between Serbia and England on 16 October 2012".
The UEFA disciplinary inspector now has until 8 January to lodge an appeal, the same deadline that applies to any appeals the FA and the Serbian Football Federation may make.
--BBC
Wayne Rooney could be out for three weeks for Man Utd
Wayne Rooney could be out for three weeks after suffering a knee injury.
The Manchester United striker, 27, may miss four games, including an FA Cup tie against West Ham.
"Wayne tried a volley in training and damaged a knee ligament - he'll be out for two to three weeks," United manager Sir Alex Ferguson told BBC Sport.
Rooney, who has scored seven goals in the league this season, was replaced by Javier Hernandez in United's 4-3 win over Newcastle.
He produced a disappointing performance against Swansea at the weekend and Ferguson had expected him to bounce back against the Magpies.
"After his performance on Sunday I think he would have been brilliant today. You don't have two performances like he did on Sunday," added the Scot, who turns 71 on New Year's Eve. "Unfortunately we couldn't risk him."
If Rooney is out for the full period then he will miss the matches against West Brom on Saturday, Wigan on New Year's Day, the FA Cup tie against West Ham on 5 January and the clash against fierce rivals Liverpool on 13 January.
He was out for a month earlier this season after suffering a gash to his right leg.
Meanwhile, forward Danny Welbeck and winger Ashley Young also missed the Boxing Day match at Old Trafford.
"Welbeck was taken ill in the team hotel last night," Ferguson said. "Ashley Young also got injured yesterday and Phil Jones got injured against Swansea.
"Young should be OK for Saturday [against West Brom]."
Ferguson explained why, having made his first start since September at the Liberty Stadium, captain Nemanja Vidic was on the bench against Newcastle.
"We couldn't risk Vida after playing his first game," he said.
"He had a bit of soreness in his knee, which is only to be expected after being out for so long."
--BBC