Israeli Police Evict Palestinian Protesters from E-1

JERUSALEM (AP) — Palestinians who pitched tents at a strategic West Bank site to protest plans to build a Jewish housing project there were evicted early Sunday, the police said.

The protesters put up tents in the area known as E-1 on Friday, saying they wanted to “establish facts on the ground” to stop Israeli construction in the West Bank. They were borrowing a phrase and a tactic usually associated with Jewish settlers, who believe establishing communities means the territory will remain theirs once structures are built.

Micky Rosenfeld, a police spokesman, said officers evicted about a hundred protesters from the site early Sunday morning after a court decision authorizing their removal. He did not know which court had allowed the eviction.

The Israeli newspaper Haaretz reported that the eviction was carried out despite a temporary Supreme Court injunction preventing it.

Mr. Rosenfeld said that no arrests were made during the half-hour eviction and that no injuries were sustained on either side. He said that the tents were not dismantled, but that a decision on that would be made later in the day.

Prime Minister Benjamin Netanyahu ordered roads leading to the area closed on Saturday evening, and had the military shut off access. Mr. Netanyahu’s office said the state was petitioning the Supreme Court to rescind its injunction blocking the evacuation.

Israel announced it was moving forward with the E-1 settlement after the United Nations recognized a de facto state of Palestine in the West Bank, Gaza and East Jerusalem in November.

Palestinians said E-1 would be a major blow to their statehood aspirations, as it blocks East Jerusalem from its West Bank hinterland. They are demanding these areas, along with Gaza, for their future state.

The protesters said they wanted to build a village called Bab al-Shams at the site.

The construction plans drew unusually sharp criticism from some of Israel’s staunchest allies, including the United States, who strongly oppose the E- 1 project.

Israeli officials have said actual construction on the project may be years away, if it ever happens, while Israeli critics have questioned whether Mr. Netanyahu actually intends to develop E-1 or is pandering to hard-liners ahead of the country’s Jan. 22 election.

In a separate episode Saturday, the Israeli military said soldiers shot at a Palestinian who tried to enter Israel from the West Bank. The military said soldiers called on the man to stop, then fired warning shots in the air, and finally fired at his legs when he refused to stop.

The Palestinian police said he later died of his wounds.

It was the second shooting death on the borders with the Palestinian territories in two days. On Friday, Palestinian officials in the Gaza Strip said a man was shot and killed near the coastal territory’s border fence. The Israeli military said he was part of a group who rushed the fence to damage it.

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Microsoft taps Krikorian to help run its Xbox business

SAN FRANCISCO (Reuters) – Microsoft Corp said on Thursday it hired technology entrepreneur Blake Krikorian to help run its Interactive Entertainment Business as the world’s largest software company plans bigger things for its Xbox gaming console.

Krikorian will be corporate vice president for the Interactive Entertainment Business, reporting to Marc Whitten, chief product officer for the division, Microsoft added.

The appointment follows Microsoft’s recent acquisition of Krikorian’s company, id8 Group R2 Studios, which had developed an application that allows users to control home heating and lighting systems from smartphones.

Microsoft is trying to transform Xbox from a gaming device into a broader service that controls most aspects of home entertainment, including music, movies, TV and sports.

“We look forward to his contribution to our team as Xbox continues to evolve and transform the games and entertainment landscape,” Whitten said in a statement.

Krikorian’s Sling Media – which was sold to EchoStar Communications in 2007 – made the Slingbox device for watching TV over the Internet.

Krikorian resigned from Amazon.com Inc’s board in late December after about a year and a half as a director at the company, the Internet’s largest retailer.

(Reporting By Alistair Barr; Editing by Tim Dobbyn)

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Chris Daughtry Makes 'Every Moment Count' with His Family

There was a time that Chris Daughtry stayed out every night, jamming onstage until dawn. But the rocker tells PEOPLE that those days are fewer and further between — replaced with the responsibilities of fatherhood and a growing social awareness.

“Being a father has made me grow up,” Daughtry, 33, says. “Life is about more than just me. I’ve got a great wife, great kids and a great life now.”

Sitting in his North Carolina home with his 2-year-old twins, Noah James and Adalynn Rose, Daughtry seems every bit the doting dad. As the toddlers start getting restless, he knows exactly what they need. “It’s almost nap time,” he says. “We like to keep them on a schedule.”

Brian Doben

“I have been blessed a lot in life,” says Daughtry, “and it’s the least I can do to give back.” Case in point: he teamed up with DC entertainment to be an ambassador for the We Can be Heroes giving campaign to fight hunger in the Horn of Africa.

It was a perfect fit for Daughtry, a lifelong comic fan who has Batman’s famous masks displayed in his home studio. “I always wanted to be a superhero,” he laughs. “That’s why I work out so much. So teaming up with DC Comics for a charitable campaign just made sense to me.”

Brian Doben

Daughtry, who homeschools his older kids with his wife, Deanna, was also touched by the Sandy Hook school shooting.

“As a father, I was just heartbroken,” he says, “I can’t even imagine what these families are going through.” Compelled to action, Daughtry decided to donate 100 percent of the proceeds of his song “Gone Too Soon” to the Connecticut School Shooting Victims Fund.

The tragedy has reminded Daughtry of the importance of family. “I’m not the type to give a lot of advice,” he says. “But to be a good dad, you have to be present. When I’m home, I’m home. I don’t work at home unless it’s after the kids go to bed. I don’t want my kids to say, ‘My dad never had time for me.’ They understand that there is a time I have to work, but when I come home, they need my undivided attention. I try to make every moment count.”

Brian Doben

And as for romance with Deanna, his wife of 12 years? “We just like to have movie night at home,” he says. “Sometimes we go out to a nice restaurant or something, but usually when we’re talking about what to do, she’s like, ‘Let’s just stay in.’ I love that. We sit together on the couch and watch a movie, and I feel very close to her.”

Adds Deanna: “I love to see Chris as a husband and father. He really has his priorities together, and we both have committed to put the kids first. But he’s good at finding time for us to ‘date,’ which is good for us, and also good for the kids.”

After spending the holidays with family, Daughtry will return to the road on Jan. 25 for a three-week tour with 3 Doors Down. “I love getting on stage. I love the camaraderie of being on tour,” he says. “I enjoy my time on the road, but when it’s over, I can come back home and just be Dad.”

Brian Doben

– Steve Helling

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Wall Street Week Ahead: Attention turns to financial earnings

NEW YORK (Reuters) - After over a month of watching Capitol Hill and Pennsylvania Avenue, Wall Street can get back to what it knows best: Wall Street.

The first full week of earnings season is dominated by the financial sector - big investment banks and commercial banks - just as retail investors, free from the "fiscal cliff" worries, have started to get back into the markets.

Equities have risen in the new year, rallying after the initial resolution of the fiscal cliff in Washington on January 2. The S&P 500 on Friday closed its second straight week of gains, leaving it just fractionally off a five-year closing high hit on Thursday.

An array of financial companies - including Goldman Sachs and JPMorgan Chase - will report on Wednesday. Bank of America and Citigroup will join on Thursday.

"The banks have a read on the economy, on the health of consumers, on the health of demand," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.

"What we're looking for is demand. Demand from small business owners, from consumers."

EARNINGS AND ECONOMIC EXPECTATIONS

Investors were greeted with a slightly better-than-anticipated first week of earnings, but expectations were low and just a few companies reported results.

Fourth quarter earnings and revenues for S&P 500 companies are both expected to have grown by 1.9 percent in the past quarter, according to Thomson Reuters I/B/E/S.

Few large corporations have reported, with Wells Fargo the first bank out of the gate on Friday, posting a record profit. The bank, however, made fewer mortgage loans than in the third quarter and its shares were down 0.8 percent for the day.

The KBW bank index <.bkx>, a gauge of U.S. bank stocks, is up about 30 percent from a low hit in June, rising in six of the last eight months, including January.

Investors will continue to watch earnings on Friday, as General Electric will round out the week after Intel's report on Thursday.

HOUSING, INDUSTRIAL DATA ON TAP

Next week will also feature the release of a wide range of economic data.

Tuesday will see the release of retail sales numbers and the Empire State manufacturing index, followed by CPI data on Wednesday.

Investors and analysts will also focus on the housing starts numbers and the Philadelphia Federal Reserve factory activity index on Thursday. The Thomson Reuters/University of Michigan consumer sentiment numbers are due on Friday.

Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis, said he expected to see housing numbers continue to climb.

"They won't be that surprising if they're good, they'll be rather eye-catching if they're not good," he said. "The underlying drive of the markets, I think, is economic data. That's been the catalyst."

POLITICAL ANXIETY

Worries about the protracted fiscal cliff negotiations drove the markets in the weeks before the ultimate January 2 resolution, but fear of the debt ceiling fight has yet to command investors' attention to the same extent.

The agreement was likely part of the reason for a rebound in flows to stocks. U.S.-based stock mutual funds gained $7.53 billion after the cliff resolution in the week ending January 9, the most in a week since May 2001, according to Thomson Reuters' Lipper.

Markets are unlikely to move on debt ceiling news unless prominent lawmakers signal that they are taking a surprising position in the debate.

The deal in Washington to avert the cliff set up another debt battle, which will play out in coming months alongside spending debates. But this alarm has been sounded before.

"The market will turn the corner on it when the debate heats up," Prudential Financial's Krosby said.

The CBOE Volatility index <.vix> a gauge of traders' anxiety, is off more than 25 percent so far this month and it recently hit its lowest since June 2007, before the recession began.

"The market doesn't react to the same news twice. It will have to be more brutal than the fiscal cliff," Krosby said. "The market has been conditioned that, at the end, they come up with an agreement."

(Reporting by Gabriel Debenedetti; editing by Rodrigo Campos)

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Immigration Arrests Lead to Online Outcry, and Release

PHOENIX — Immigration agents arrested the mother and brother of a prominent activist during a raid at her home here late Thursday, unleashing a vigorous response on social media and focusing new attention on one of the most controversial aspects of the Obama administration’s policies on deportation.

The agents knocked on Erika Andiola’s door shortly after 9 p.m., asking for her mother, Maria Arreola.

Ms. Arreola had been stopped by the police in nearby Mesa last year and detained for driving without a license. Her fingerprints were sent to federal immigration officials as part of a controversial program called Secure Communities, which the Obama administration has been trying to expand nationwide.

That routine check revealed that Ms. Arreola had been returned to Mexico in 1998 after she was caught trying to illegally cross the border into Arizona with Erika and two of her siblings in tow. As a result, she was placed on a priority list for deportation.

After being seized on Thursday, she could have been sent back to Mexico in a matter of hours, but Obama administration officials moved quickly to undo the arrests. Officials had been pressured by the robust response from advocates — through phone calls, e-mails and online petitions, but primarily on Twitter, where they mobilized support for Ms. Andiola, a well-known advocate for young illegal immigrants, under the hashtag #WeAreAndiola.

The reaction offered the Obama administration a taste of what it might expect when it gets into the thick of the debate over an immigration overhaul, which Congress is expected to tackle this year. President Obama has already been under harsh criticism for the number of illegal immigrants deported since he took office — roughly 400,000 each year, a record unmatched since the 1950s.

Ms. Andiola, 25, posted a tearful video on YouTube shortly after her mother and brother were handcuffed and driven away. “I need everybody to stop pretending that nothing is wrong,” she said in the video, “stop pretending that we’re all just living normal lives, because we’re not. This could happen to any of us anytime.”

She is the co-founder of the Arizona Dream Act Coalition, one of the groups pushing for a reprieve for immigrants brought illegally to the United States as children, as she was. She has been arrested while camped in front of Senator John McCain’s office here, protested outside the United States Capitol, and appeared on the cover of Time magazine in June under the headline, “We are Americans — just not legally.”

In November, Ms. Andiola got a work permit under a program begun by the Obama administration last year that gives certain young illegal immigrants temporary reprieve from deportation. She graduated from Arizona State University in 2009.

On Friday afternoon, her mother returned home from a detention center in Florence, 70 miles southeast of Phoenix and usually the last stop for certain illegal immigrants before they are deported. Her brother, Heriberto Andiola Arreola, 36, who had been kept in Phoenix, was let go earlier, at 6 a.m.

Their swift releases underline the power of the youth-immigrant movement and their social media activism, which was critical in spreading Ms. Andiola’s story overnight.

In a statement, Barbara Gonzalez, a spokeswoman for Immigration and Customs Enforcement, said a preliminary review of the case revealed that it contains some of the elements outlined in the agency’s “prosecutorial discretion policy” and would “merit an exercise of discretion.” Advocates have long argued that the policy has done little to keep families from being broken apart by deportations.

Ms. Andiola said in an interview that she told her mother to go to her room before opening the door Thursday night; she suspected the men standing outside worked for immigration. By the time the men came in, her brother, who was outside talking to a neighbor, was already in handcuffs, she said.

“Where’s Maria?” the men asked her, she recalled.

Ms. Arreola walked out of the room and, in Spanish, the men asked her to accompany them outside, where they placed her under arrest.

Though she and her son are free, their future is uncertain, as they could be arrested again while their cases are under review or deported should the eventual ruling go against them, said Marielena Hincapié, executive director of the National Immigration Law Center, one of the groups helping the family.

Stories like this, Ms. Hincapié went on, “happen every day, in every state,” outside of the media spotlight. What made it different this time is that Ms. Andiola had connections and wasted no time mobilizing them. There are others, she said, whom “you never hear about.”

Julia Preston contributed reporting from New York.

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A sense of dread shrouds Nintendo’s Wii U

The latest Wii U sales numbers are out from Japan, the United States and the United Kingdom — and unease is deepening. In Japan, Famitsu Magazine reported Wii U weekly sales slipping to 70,000 units from 76,000 units during the important period ending in January 6. This is the week many Japanese teenagers spend their New Year’s money and sales of consoles tend to bounce. During the week, the portable 3DS sold 305,000 units, up sharply from the already impressive 266,000 units in the previous week. The seven-year-old Sony (SNE) PlayStation 3 managed to increase its sales to 64,000 units from 54,000 units. The equally ancient PSP climbed to 53,000 from 34,000. Even the star-crossed PS Vita managed to vault to 31,000 from 18,000.

[More from BGR: LG reportedly halts Nexus 4 production to make way for new Nexus device]

As Wii U sales are mired close to PlayStation 3 levels in Japan, it is getting hammered by the aging Microsoft (MSFT) Xbox 360 in America. NPD just reported that Xbox 360 moved 1.4 million units in December while Wii U limped through the holiday season with 460,000 units. This is below the 600,000 unit level that the earlier Wii console managed years ago against a much younger console competition in 2006. Back then, Wii launched head-to-head with Sony’s PlayStation 3 in the US market, and the Xbox 360 had been launched just one year earlier.

[More from BGR: BlackBerry Z10 shown off in leaked marketing materials]

In 2012, Wii U debuted against two rival home consoles that were more than half a decade old. The results are not pretty. Meanwhile in the U.K., the Wii U shifted 40,000 units during its launch weekend, but none of the titles cracked the top 10 of the GfK game software chart.

It is clear that the lack of compelling software is hurting Wii U right now. Nintendo (NTDOY) wanted to push it out well before the buzz around the next generations of Sony and Microsoft consoles started building. The problem with the rush is that Wii U is now facing several fallow months before big titles arrive. The January-April sales period could be spectacularly ugly and may cause real damage to Nintendo’s home console reputation if it leads to U.S. sales dipping below 300,000 a month and Japanese sales dipping below 30,000 a month. The danger here is that if consumers start suspecting that the Wii U is a lame duck, they may choose to wait for one of the big rival vendors to roll out some spectacular hardware next winter.

All in all, it’s hard to avoid the notion that the console gaming universe is shrinking. In the U.S., game software sales contracted by a disastrous 26% in December. PS Vita is in dire straits and may leave Nintendo’s 3DS as the only viable portable console in 2014. Wii U is wobbling badly, possibly leading to a 2014 scenario when only Sony and Microsoft are left standing in the home console battle. U.S. consumers are still wild about huge, violent console epics like Call of Duty, Assassin’s Creed and Halo. Those are titles that define PlayStation and Xbox. The casual gaming that defines Wii U is under siege by the smartphone/tablet gaming frenzy that shows no sign of abating.

This article was originally published on BGR.com

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Britney & Jason's Love Story in 6 Sweet Shots

From a snuggle in the surf to a surprise engagement, see the former couple's most romantic moments

Credit: Kevin Mazur/Wireimage

Updated: Friday Jan 11, 2013 | 07:00 AM EST
By: Cara Lynn Shultz

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Flu season strikes early and, in some places, hard

NEW YORK (AP) — From the Rocky Mountains to New England, hospitals are swamped with people with flu symptoms. Some medical centers are turning away visitors or making them wear face masks, and one Pennsylvania hospital set up a tent outside its ER to deal with the feverish patients.

Flu season in the U.S. has struck early and, in many places, hard.

While flu normally doesn't blanket the country until late January or February, it is already widespread in more than 40 states, with about 30 of them reporting some major hot spots. On Thursday, health officials blamed the flu for the deaths of 20 children so far.

Whether this will be considered a bad season by the time it has run its course in the spring remains to be seen.

"Those of us with gray hair have seen worse," said Dr. William Schaffner, a flu expert at Vanderbilt University in Nashville.

The evidence so far points to a moderate season, Schaffner and others say. It looks bad in part because last year was unusually mild and because the main strain of influenza circulating this year tends to make people sicker and really lay them low.

David Smythe of New York City saw it happen to his 50-year-old girlfriend, who has been knocked out for about two weeks. "She's been in bed. She can't even get up," he said.

Also, the flu's early arrival coincided with spikes in a variety of other viruses, including a childhood malady that mimics flu and a new norovirus that causes vomiting and diarrhea, or what is commonly known as "stomach flu." So what people are calling the flu may, in fact, be something else.

"There may be more of an overlap than we normally see," said Dr. Joseph Bresee, who tracks the flu for the Centers for Disease Control and Prevention.

Most people don't undergo lab tests to confirm flu, and the symptoms are so similar that it can be hard to distinguish flu from other viruses, or even a cold. Over the holidays, 250 people were sickened at a Mormon missionary training center in Utah, but the culprit turned out to be a norovirus, not the flu.

Flu is a major contributor, though, to what's going on.

"I'd say 75 percent," said Dr. Dan Surdam, head of the emergency department at Cheyenne Regional Medical Center, Wyoming's largest hospital. The 17-bed emergency room saw its busiest day ever last week, with 166 visitors.

The early onslaught has resulted in a spike in hospitalizations. To deal with the influx and protect other patients from getting sick, hospitals are restricting visits from children, requiring family members to wear masks and banning anyone with flu symptoms from maternity wards.

One hospital in Allentown, Pa., set up a tent this week for a steady stream of patients with flu symptoms. But so far "what we're seeing is a typical flu season," said Terry Burger, director of infection control and prevention for the hospital, Lehigh Valley Hospital-Cedar Crest.

On Wednesday, Boston declared a public health emergency, with the city's hospitals counting about 1,500 emergency room visits since December by people with flu-like symptoms.

All the flu activity has led some to question whether this year's flu shot is working. While health officials are still analyzing the vaccine, early indications are that it's about 60 percent effective, which is in line with what's been seen in other years.

The vaccine is reformulated each year, based on experts' best guess of which strains of the virus will predominate. This year's vaccine is well-matched to what's going around. The government estimates that between a third and half of Americans have gotten the vaccine.

In New York City, 57-year-old Judith Quinones skipped getting a flu shot this season and suffered her worst case of flu-like illness in years. She was laid up for nearly a month with fever and body aches. "I just couldn't function," she said.

But her daughter got the vaccine. "And she got sick twice," Quinones said.

Europe is also suffering an early flu season, though a milder strain predominates there. Flu reports are up, too, in China, Japan, the West Bank, the Gaza Strip, Algeria and the Republic of Congo. Britain has seen a surge in cases of norovirus.

On average, about 24,000 Americans die each flu season, according to the CDC. That's an estimate — the agency does not keep a running tally of adult flu deaths each year, only for children. Some state health departments do keep count, and they've reported dozens of flu deaths so far.

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 and can help themselves and protect others by staying home and resting. But people with severe symptoms should see a doctor. They may be given antiviral drugs or other medications to ease symptoms.

Flu vaccinations are recommended for everyone 6 months or older. Of the 20 children killed by the flu this season, only two were fully vaccinated.

___

AP Medical Writer Maria Cheng in London contributed to this report.

___

Online:

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

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Asian shares retreat after China CPI, yen slides

TOKYO (Reuters) - Asian shares fell on Friday as a pick-up in Chinese inflation prompted profit taking but underlying sentiment was supported by an improving outlook for global economies, while the yen slid on renewed expectations for bold monetary easing in Japan.

China's annual consumer inflation rate accelerated to a seven-month high of 2.5 percent in December on rising food prices, narrowing the scope for the central bank to boost the economy by easing monetary policy. The producer price index fell 1.9 percent in December from a year ago, marking the 10th consecutive month of decline, but improved from November's 2.2 percent annual drop.

Brent crude futures eased 0.3 percent to $111.60 a barrel and U.S. crude trimmed earlier rises to trade nearly flat.

MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> eased 0.3 percent, erasing morning gains which brought the index near its highest level since August 2011 hit last week.

Shanghai shares <.ssec> fell 0.6 percent, dragging Hong Kong shares <.hsi> down into negative territory, while Seoul shares <.ks11> slipped 0.8 percent.

"It's not the end of the world. We have been trending in overbought territory for more than a week anyway, so this higher headline inflation is a trigger for some profit taking. We are in a consolidation phase," said Hong Hao, Bank of Communication International's chief equity strategist based in Hong Kong.

Hirokazu Yuihama, a senior strategist at Daiwa Securities in Tokyo, said the China inflation data offered some positive signs but, given the market's rapid rally over the past month, it was probably used as an excuse to book profits.

"The slight pickup in inflation is still well below the 3.5 percent forecast by China, and may also reflect recovery in consumption," he said, adding that the data was unlikely to significantly dent an overall trend in improving risk appetite.

Global markets rallied after China posted unexpectedly strong December trade numbers on Thursday, buoying hopes demand from the world's second-largest economy will rise.

World stock prices rose to an eight-month high on Thursday, with an encouraging view on the U.S. economy from a top Federal Reserve official driving the Standard & Poor's 500 index to its highest closing level in five years.

Reflecting growing confidence in equities markets, EPFR Global noted that equity mutual funds have brought in $6.8 billion of inflows over the last four business days, with equity flows exceeding bond flows.

In a sign of some stability, South Korea's central bank held interest rates steady for a third consecutive month on Friday as expected, to assess the effect from two cuts last year. However, the bank also revised down its outlook for South Korea's GDP growth in 2013 to 2.8 percent from 3.2 percent, which along with a sharp rise in the won hurt Seoul shares.

ABE FUELS NIKKEI BUYING

Japan's benchmark Nikkei stock average <.n225> climbed as much as 1.7 percent to a 23-month high as the yen accelerated its declines against the dollar and the euro. <.t/>

Prime Minister Shinzo Abe "is seen seriously committed to making the economy better as he is becoming more detailed, and investors are feeling it is possible under his government", said Kyoya Okazawa, head of global equities at BNP Paribas in Tokyo.

"While most macro funds have finished allocating Japan shares to their portfolios by the end of the year, we are getting inquiries from long-only funds which intend to pick up Japanese stocks on fundamentals."

Japan's cabinet approved on Friday an economic stimulus package in the biggest spending boost since the financial crisis as Abe pursues an ambitious agenda to spur growth and end stubborn deflation.

The dollar jumped to 89.35 yen, its highest since June 2010, on strengthening speculation Abe will exert strong pressure on the Bank of Japan to take much bolder measures to defeat deflation and stimulate the Japanese economy. The euro surged to 118.58 yen, its highest since May 2011.

The yen's latest slide came after Abe said in an interview with the Nikkei newspaper published on Friday that the BOJ should consider maximizing employment as a monetary policy goal to help boost the economy.

The yen selling also gained momentum after data on Friday showed Japan had logged a current account deficit in November for the first time in 10 months, as exports fell due to weak global demand and energy imports increased.

The deficit stood at 222.4 billion yen ($2.5 billion), overshooting a 3.5 billion yen deficit forecast.

Japanese financial markets will be closed on Monday for a public holiday.

EURO OPTIMISM

The European Central Bank on Thursday kept interest rates steady at 0.75 percent as expected, but its president Mario Draghi's comments offered a cautiously optimistic view.

The euro extended its gains on Friday to a one-week high of $1.3280.

Spain tapped markets on Thursday for its first bond sale of 2013, raising more money than expected at a lower borrowing cost than in a previous auction. Benchmark 10-year Spanish government bond yields fell to a 10-month low of 4.90 percent, somewhat easing investors' nerves about Spain's ability to manage its huge debts..

As the yen fell, Tokyo gold futures rallied to a record high on Friday to as high as 4,820 yen per gram, exceeding the previous record of 4,754 yen marked on September 7, 2011.

(Additional reporting by Ayai Tomisawa in Tokyo and Clement Tan in Hong Kong; Editing by Shri Navaratnam and Paul Tait)

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Japan Approves $116 Billion in Emergency Economic Stimulus

TOKYO — The Japanese government approved emergency stimulus spending of more than $100 billion on Friday, part of an aggressive push by Prime Minister Shinzo Abe to kick-start growth in Japan’s long-moribund economy.

Mr. Abe also reiterated pressure on Japan’s central bank to make a firmer commitment to stopping deflation by pumping more money into the economy — a measure the prime minister says is crucial to getting businesses to invest and consumers to spend.

“We will put an end to this shrinking, and aim to build a stronger economy where earnings and incomes can grow,” Mr. Abe told a televised news conference. “For that, the government must first take the initiative to create demand, and boost the entire economy.”

Under the plan, the Japanese government will spend about 10.3 trillion yen (about $116 billion) on public works and disaster mitigation projects, subsidies for companies that invest in new technology and financial aid to small businesses.

The government will seek to raise real economic growth by 2 percentage points and add 600,000 jobs to the economy, Mr. Abe said. The measures announced Friday amount to one of the largest spending plans in Japan’s history, he stressed.

By simply talking about stimulus measures, Mr. Abe, who took office late last month, has already driven down the value of the yen, much to the relief of Japanese exporters whose competitiveness benefits from a weaker currency.

But the government’s promises to spend its way out of economic stagnation also raise concerns over Japan’s public debt, which has already mushroomed to twice the size of its economy and is the largest in the industrialized world.

At the root of Japan’s debt woes was a similar attempt in the 1990s by Mr. Abe’s own Liberal Democratic Party to stimulate economic growth through government spending on extensive public works projects across the country.

Mr. Abe said, however, that the spending this time around would be better focused to bring about growth through investment in innovation. He said the government would also invest in measures that would help mitigate the fall in Japan’s population, by encouraging families to have more children.

“To grow in a sustainable way, we must help create a virtuous cycle where companies actively borrow and invest, and in so doing raise employment and incomes,” Mr. Abe said.

“For that, it is extremely important that we adopt a growth strategy that gives everyone solid hope that the future of the Japanese economy lies in growth.”

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