Euro factory output pain eases









Markit’s senior economist Rob Dobson: “There’s some sign of light at the end of the tunnel”



The decline in the eurozone’s manufacturing sector has eased, a closely watched survey indicates, in a rare spot of good news for the region.


Markit’s eurozone manufacturing Purchasing Managers’ Index rose to 46.3 in December from 46.2 in November. A reading below 50 indicates contraction.


The research firm said the rate of decline in manufacturing “showed signs of moderating”.


But the service sector dropped to its weakest levels since July.


Including services and manufacturing, the eurozone PMI composite output index was at 47.3, up from 46.5 in November.


Return to growth?


“The eurozone downturn showed further signs of easing in December, adding to hopes that the outlook for next year is brightening,” said Chris Williamson, chief economist at Markit.


“A return to growth is looking like an increasing possibility in the first half of next year, barring any surprises, if the recent improvements in the survey data can be sustained. The turnaround is being led by Germany.”


Total output from Germany rose for the first time in eight months “though the increase was only very modest as an upturn in the service sector was offset by a faster decline in manufacturing production”, the survey said.


Output fell for the 10th month in a row in France. Earlier on Friday, Fitch kept the French government’s top AAA credit rating, making it the only major ratings agency left to say the country deserves to be among the world’s most creditworthy borrowers.


In the eurozone, only Germany still has an AAA rating from all three major ratings agencies.


Markit said that eurozone confidence remained lower than at any time since before the 2008-09 financial crisis.


Separately, a survey showed China’s huge manufacturing sector expanded in December at its fastest pace in 14 months as new orders and employment rose,


The HSBC PMI for December rose to 50.9, the highest level since October 2011. It was the fifth straight month of gains.


BBC News – Business


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NKorea rocket launch shows young leader as gambler






PYONGYANG, North Korea (AP) — A triumphant North Korea staged a mass rally of soldiers and civilians Friday to glorify the country’s young ruler, who took a big gamble this week in sending a satellite into orbit in defiance of international warnings.


Wednesday’s rocket launch came just eight months after a similar attempt ended in an embarrassing public failure, and just under a year after Kim Jong Un inherited power following his father’s death.






The surprising success of the launch may have earned Kim global condemnation, but at home the gamble paid off, at least in the short term. To his people, it made the 20-something Kim appear powerful, capable and determined in the face of foreign adversaries.


Tens of thousands of North Koreans, packed into snowy Kim Il Sung Square, clenched their fists in a unified show of resolve as a military band tooted horns and pounded on drums.


Huge red banners positioned in the square called on North Koreans to defend Kim Jong Un with their lives. They also paid homage to Kim Jong Un’s father, Kim Jong Il, and his grandfather, North Korean founder Kim Il Sung.


Pyongyang says the rocket put a crop and weather monitoring satellite into orbit. Much of the rest of the world sees it as a thinly disguised test of banned long-range missile technology. It could bring a fresh round of U.N. sanctions that would increase his country’s international isolation. At the same time, the success of the launch could strengthen North Korea’s military, the only entity that poses a potential threat to Kim’s rule.


The launch’s success, 14 years after North Korea’s first attempt, shows more than a little of the gambling spirit in the third Kim to rule North Korea since it became a country in 1948.


“North Korean officials will long be touting Kim Jong Un as a gutsy leader” who commanded the rocket launch despite being new to the job and young, said Kim Byung-ro, a North Korea specialist at Seoul National University in South Korea.


The propaganda machinery churned into action early Friday, with state media detailing how Kim Jong Un issued the order to fire off the rocket just days after scientists fretted over technical issues, ignoring the chorus of warnings from Washington to Moscow against a move likely to invite more sanctions.


Top officials followed Kim in shrugging off international condemnation.


Workers’ Party Secretary Kim Ki Nam told the crowd, bundled up against a winter chill in the heart of the capital, that “hostile forces” had dubbed the launch a missile test. He rejected the claim and called on North Koreans to stand their ground against the “cunning” critics.


North Korea called the satellite a gift to Kim Jong Il, who is said to have set the lofty goal of getting a satellite into space and then tapped his son to see it into fruition. The satellite, which North Korean scientists say is designed to send back data about crops and weather, was named Kwangmyongsong, or “Lode Star” — the nickname legendarily given to the elder Kim at birth.


Kim Jong Il died on Dec. 17, 2011, so to North Koreans, the successful launch is a tribute. State TV have been replaying video of the launch to “Song of Gen. Kim Jong Il.”


But it is the son who will bask in the glory, and face the international censure that may follow.


Even while he was being groomed to succeed his father, Kim Jong Un had been portrayed as championing science and technology as a way to lift North Korea out of decades of economic hardship.


“It makes me happy that our satellite is flying in space,” Pyongyang citizen Jong Sun Hui said as Friday’s ceremony came to a close and tens of thousands rushed into the streets, many linking arms as they went.


“The satellite launch demonstrated our strong power and the might of our science and technology once again,” she told The Associated Press. “And it also clearly testifies that a thriving nation is in our near future.”


Aside from winning him support from the people, the success of the launch helps his image as he works to consolidate power over a government crammed with elderly, old-school lieutenants of his father and grandfather, foreign analysts said.


Experts say that what is unclear, however, is whether Kim will continue to smoothly solidify power, steering clear of friction with the powerful military while dealing with the strong possibility of more crushing sanctions. The United Nations says North Korea already has a serious hunger problem.


“Certainly in the short run, this is an enormous boost to his prestige,” according to Marcus Noland, a North Korea analyst at the Peterson Institute for International Economics in Washington.


Noland, however, also mentioned the “Machiavellian argument” that this could cause future problems for Kim by significantly boosting the power of the military — “the only real threat to his rule.”


Successfully firing a rocket was so politically crucial for Kim at the onset of his rule that he allowed an April launch to go through even though it resulted in the collapse of a nascent food-aid-for-nuclear-freeze deal with the United States, said North Korea analyst Kim Yeon-su of Korea National Defense University in Seoul.


The launch success consolidates his image as heir to his father’s legacy. But it could end up deepening North Korea’s political and economic isolation, he said.


On Friday, the section at the rally reserved for foreign diplomats was noticeably sparse. U.N. officials and some European envoys stayed away from the celebration, as they did in April after the last launch.


Despite the success, experts say North Korea is years from even having a shot at developing reliable missiles that could bombard the American mainland and other distant targets.


North Korea will need larger and more dependable missiles, and more advanced nuclear weapons, to threaten U.S. shores, though it already poses a shorter-range missile threat to its neighbors.


The next big question is how the outside world will punish Pyongyang — and try to steer North Korea from what could come next: a nuclear test. In 2009, the North conducted an atomic explosion just weeks after a rocket launch.


Scott Snyder, a Korea specialist for the Council on Foreign Relations, wrote recently that North Korea‘s nuclear ambitions should inspire the U.S., China, South Korea and Japan to put aside their issues and focus on dealing with Pyongyang.


If there is a common threat that should galvanize regional cooperation, “it most certainly should be the prospect of a 30-year-old leader of a terrorized population with his finger on a nuclear trigger,” Snyder said.


____


Jon Chol Jin in Pyongyang, and Foster Klug and Sam Kim in Seoul, South Korea, contributed to this report. Follow Jean H. Lee on Twitter: (at)newsjean.


Asia News Headlines – Yahoo! News


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Microsoft plots living room domination with 43 new entertainment apps for Xbox 360






Game consoles are no longer simply for video games, as evidenced by last week’s announcement that the PlayStation 3 is the top Netflix (NFLX) streaming device of the year. Yusuf Mehdi, Microsoft’s (MSFT) chief marketing officer for its Interactive Entertainment Division, said this past March that Xbox 360 owners were spending more hours watching online entertainment than playing online games. And now, in a bid to bolster its efforts to conquer the living room, Microsoft Director of Programming for Xbox Live Larry “Major Nelson” Hyrb announced in a blog post that 43 new entertainment apps (mostly video) will launch between now and spring of 2013 in various regions. Ten new apps including ARTE, CinemaNow, CNET, Karaoke, Maxim, Napster, SkyDrive, SPORT1, VEVO and Zattoo will arrive this week. Microsoft’s full list of upcoming apps follows below.



1. All3M (United Kingdom, United States)
2. Ameba TV (Canada, United States)
3. ARTE (Germany, France)
4. Azteca (Mexico)
5. Canalplay Infinity (France)
6. CBC’s Hockey Night (Canada)
7. CrunchyRoll (Majority of LIVE Regions)
8. Deezer (Majority of LIVE Regions)
9. Eredivisie Live (Netherlands)
10. Fightbox (Austria, Germany, Spain, France, Ireland, Italy, Sweden, United Kingdom)
11. Flixster (United States)
12. GameTrailers (Australia, Canada, Germany, Spain, France, Italy, Japan, Mexico, United Kingdom, United States)
13. Globosat Muu (Brazil)
14. Gulli Replay (France)
15. HBO Nordics (Denmark, Finland, Norway, Sweden)
16. IndieFlix (Australia, Canada, Ireland, New Zealand, United Kingdom, United States)
17. Livesport.tv (Austria, Belgium, Germany, Denmark, Spain, Finland, France, Ireland, Italy, Netherlands, Norway, New Zealand, Sweden, United Kingdom)
18. Machinima (Majority of LIVE Regions)
19. Maxim (United States)
20. MTV (United States)
21. MyTF1 (France)
22. MyTF1VOD (France)
23. Napster (Germany, United Kingdom)
24. Pathe Thuis (Netherlands)
25. PBS (United States)
26. PopcornFlix (United States)
27. Rai TV (Italy)
28. Sainsbury (United Kingdom)
29. Saraiva (Brazil)
30. SBS (Netherlands)
31. SF Anytime (Denmark, Finland, Norway, Sweden)
32. Slacker Radio (Canada, United States)
33. SPORT1 (Austria, Germany)
34. The CW Network (United States)
35. Televisa (Mexico)
36. TV3 (Spain)
37. Viaplay (Denmark, Finland, Norway, Sweden)
38. Vidéo à la Demande d’Orange (France)
39. Vimeo (United States)
40. VIVO Play (Brazil)
41. Watchever (Austria, Germany)
42. Zattoo (Germany)
43. Ziggo (Netherlands)







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Politico financier Joe L. Allbritton dies at 87






LOS ANGELES (TheWrap.com) – Joe L. Allbritton, the millionaire founder of Politico‘s parent company, died Wednesday of heart ailments in a Houston hospital. He was 87.


The founder of Allbritton Communications, which launched Politico and owns several television stations, built the Washington, D.C.-based media empire after controversy-fraught years as the chief of Riggs National Bank.






Born in Mississippi and raised in Texas, Allbritton was a self-made businessman, who dabbled in real estate, mortuaries and banking before entering the news business in 1974, when he purchased the struggling Washington Star newspaper.


He revived the paper. Six years later, federal regulations regarding cross ownership of newspaper and television stations forced him to sell his $ 35 million investment. Time Inc. bought it for $ 217 million.


Allbritton held on to his more lucrative media properties, including WJLA, an ABC affiliate in Washington, D.C. that took his initials, and helped launch NewsChannel 8, also in Washington, one of the country’s first 24-hour news channels.


The company he founded, which is now run by his son, Robert, has made inroads into the internet world – founding Politico in 2007 and TBD, a short-lived internet news site that the company shuttered in 2012. Though Politico is his son’s creation, the elder Allbritton bankrolled the publication and has been accused of excessively involving himself in its editorial affairs.


But, for all of Allbritton’s successes and wealth, his career was marred by a nationwide recession in the early 1990s that Forbes magazine said brought the bank to the brink of insolvency.


The economic slump left Riggs with bad loans on drastically devalued real estate, but Allbritton was also blamed by analysts for ignoring the growing suburban banking market which took business away from Riggs.


Despite these woes, he refused to give up his private jet at Riggs, even as shareholders urged him to sell the Gulfstream.


He was also criticized for his eagerness to do business with some shady customers


He personally courted Chilean dictator Augusto Pinochet, whom human rights groups accused of killing more than 3,000 of his own citizens during his 17-year reign.


And – in a 2001 letter to Teodoro Obiang Nguema, the dictator of oil-rich Equatorial Guinea – Allbritton praised the west African strongman’s “reputation for prudent leadership.” Obiang deposited hundreds of millions of dollars in banks controlled by Allbritton.


But little of this criticism appeared in Politico’s glowing, three-page obituary on its financier.


The piece, bylined by editor-in-chief John F. Harris and reporter James Hohmann, makes a brief, passing mention of a federal inquiry into Allbritton’s dealings with Pinochet. There is no mention of Obiang.


The man, whom the Washington Post noted – in the headline of its obituary – led once-venerable Riggs to “disrepute” is praised by Politico with a laundry list of accomplishments.


“He would wear Politico baseball caps and T-shirts while playing with his grandchildren. Sometimes, he would quiz executives at the company on business and editorial matters, sometimes pretending caustically to second-guess their decisions,” Harris and Hohmann wrote of the former boss.


“It took the publisher, adept at reading his father’s sense of humor, to assure people that he was just kidding; his main involvement in the new publication was as cheerleader.”


It wasn’t the only time Allbritton was accused of involving himself in Politico’s coverage.


In 2007, five months after the news agency’s christening, Glenn Greenwald, then a columnist at Salon, accused Politico of having a conservative bias, pointing to Allbritton’s appointment of Frederick J. Ryan Jr., a one-time assistant to President Ronald Reagan, as president and CEO of Politico.


“There is nothing wrong per se with hard-core political operatives running a news organization. Long-time Republican strategist Roger Ailes oversees Fox News, of course,” Greenwald wrote. “But it seems rather self-evident that a news organization run by someone with such clear-cut political biases ought to have a hard time holding itself out as some sort of politically unbiased source of news.”


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Blood Clots Are Ready for Their Close-Up [Slide Show]






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India Debates Facebook and Free Speech






It started with a comment on Facebook (FB). On Nov. 17, Bal Thackeray, leader of the Hindu nationalist party Shiv Sena, died in Mumbai. The party’s members often clash with Muslims and are known for their street brawling. When their leader died, party stalwarts told Mumbai’s merchants to shut their stores the next day out of respect for Thackeray. At 7 p.m. on Nov. 18, Shaheen Dhada, a member of a prominent Muslim family in the town of Palghar, commented on her Facebook wall about Thackeray and whether he deserved such special treatment. “Today,” Dhada wrote in conclusion, “Mumbai shuts down due to fear, not due to respect!”


Only her Facebook friends immediately saw the message, but someone must have shown it to local members of Shiv Sena. Within 25 minutes a man phoned the 21-year-old and asked whether she thought what she posted was right. Shaken, she deleted the post and put up an apology.






It was too late. By 7:30 the police were at Dhada’s door, demanding she go with them to the station to submit a written apology. Later that night a mob smashed up the small hospital owned and run by her uncle, a well-known orthopedic surgeon. The police finally let her go at 2:30 a.m. but told her to return the next morning.


The police charged both Dhada and a friend who responded favorably to her post with insulting religious sentiments, and booked them under a little-known provision of India’s Information Technology Act, known as 66A. It allows for a three-year jail term for posting online content that is “grossly offensive or has menacing character” or causes “annoyance, inconvenience, hatred, danger, obstruction, insult.”


The incident received widespread attention. “The entire nation is furious at this apparently illegal arrest,” Markandey Katju, a former Supreme Court judge and chairman of the Press Council of India, wrote to the chief minister of the state of Maharashtra, where Dhada lives. National TV channels interviewed the Dhada family. The police have yet to drop the charge.


The Dhada affair is part of a larger struggle between authorities and ordinary Indians about their rights online. In October, police took into custody Ravi Srinivasan, a businessman, after Karti Chidambaram, the son of Finance Minister Palaniappan Chidambaram, filed a complaint against Srinivasan for posting “defamatory/scurrilous tweets.” The tweet had compared Karti’s wealth to that of the son-in-law of Sonia Gandhi, the leader of the ruling Congress Party. Srinivasan was released on bail soon after the incident became widely publicized. In September, cartoonist Aseem Trivedi was arrested for sketches he posted online that attacked government corruption. Trivedi was accused of sedition but later released.


On Nov. 29, Shreya Singhal, a New Delhi native who recently graduated from the University of Bristol, filed a petition in India’s Supreme Court saying section 66A violates Indians’ constitutional right to freedom of speech. The petition included a reference to the Facebook arrests. Because the Dhada case was so hot, the court considered the petition immediately. On Nov. 30 the judges summoned Attorney General Goolam Vahanvati and asked him to explain the legality of using 66A to arrest someone for posting a comment on Facebook. The attorney general told the court that the government was tightening guidelines to check abuse of 66A. “The intent of the law was not wrong,” Vahanvati said, “but the arrests in Maharashtra were unwarranted.”


The bottom line: Indians are protesting a law that gives police ample authority to arrest those who say anything controversial online.


Businessweek.com — Top News


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Cuban lawmakers meet to consider economy, budget






HAVANA (AP) — Cuban lawmakers are holding the second of their twice-annual sessions with a year-end report expected on the state of the country’s economy.


Legislators are also to approve next year’s budget.






Cuban leaders have sometimes used the parliamentary gatherings to make important announcements or policy statements.


Observers will be watching for word on the progress of President Raul Castro‘s economic reform plan and efforts to promote younger leaders.


The unicameral parliament will reconvene in February with a new membership following elections. It is then expected to name Castro to another five-year term.


State-run media said Castro presided over Thursday’s session.


It was not open to international journalists.


Latin America News Headlines – Yahoo! News


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Fandango launches Oscar-themed web series with Dave Karger






LOS ANGELES (TheWrap.com) – Fandango is elbowing into the Oscar horse race.


The movie-ticket seller launched its first original digital video series Wednesday, “The Frontrunners,” which will cover the major contenders for the top awards. The show will feature conversations with a star-studded group of Oscar hunters that includes Richard Gere (“Arbitrage”), Amy Adams (“The Master”), Hugh Jackman (“Les Miserables”) and Ben Affleck (“Argo”).






During the broadcasts, actors and directors will deconstruct key scenes from their movies, explaining how they crafted a moment of domestic conflict, in the case of Gere, or decided to intercut between a Hollywood script reading and the Iranian Hostage Crisis, as with Affleck.


However, commerce will be mixed in along with the art. Fandango will offer ticketing information along with the digital videos, with the hopes that the clips will inspire users to check out the movie being discussed.


The show, shot at Soho House in Los Angeles, will be hosted by Fandango’s Chief Correspondent Dave Karger, the movie guru the company lured over from Entertainment Weekly in September. It’s part of a bold bet that Fandango is making on original content.


To that in end, the company tapped former Disney digital executive Paul Yanover to serve in the newly created role of president and tasked him with creating a suite of programming for Fandango and its 41 million unique visitors.


“Our goal with Fandango is to make it the definitive movie-going brand across all platforms,” Nick Lehman, the president of digital for NBC Universal Entertainment Networks & Interactive Media, told TheWrap in October. “We want to continue expanding in ways that entertain and inform and video is key to that strategy. Advertisers are clamoring for it because there is a dearth of high quality original video content on the web.”


As TheWrap reported exclusively in October, Karger is also planning programs that will center on box office contenders and one program that will boast both A-List actors and below-the-line talent.


New episodes of “The Frontrunners” will air weekly through the Academy Awards on February 24, 2013. The first three installments will be available Wednesday


Internet News Headlines – Yahoo! News


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Rock legends take to New York stage for storm Sandy victims






NEW YORK (Reuters) – Bruce Springsteen, the Rolling Stones and Alicia Keys were among the musical stars headlining an all-star benefit concert for victims of Superstorm Sandy on Wednesday, in what producers promised was “the greatest line-up of legends ever assembled on a stage.”


Organizers said the “12-12-12″ concert at New York‘s Madison Square Garden was being distributed to nearly 2 billion people worldwide through television feeds, radio and online streaming.






“How do I begin again? My city’s in ruins?” Springsteen sang. He was joined by fellow New Jersey native Jon Bon Jovi for “Born to Run,” ushering in a night of musical duets.


Next up, Roger Waters performed alongside Eddie Vedder, and Paul McCartney was due to jam later in the evening with Dave Grohl.


“This has got to be the largest collection of old English musicians ever assembled in Madison Square Garden,” Mick Jagger told the crowd. The Stones performed “You Got Me Rocking” and “Jumpin’ Jack Flash.”


To help with the fundraising, celebrities such as Leonardo DiCaprio, Kristen Stewart, Jake Gyllenhaal, Chelsea Clinton and Billy Crystal took part in a telethon during the concert, which was expected to last four to five hours.


Comedian Adam Sandler took the stage for a Sandy-themed spoof on Leonard Cohen’s “Hallelujah,” rhyming the title with “Sandy, Screw Ya!”


Backstage, actress Susan Sarandon recounted losing power in her New York home but said that was a small hardship compared with the real victims who lost their homes.


Steven Van Zandt, guitarist of the E Street Band, scolded “the oil companies” and “Wall Street guys” for not doing more to help.


“Even with the music business not what it used to be … we are proud to be here,” he said.


Before the concert, producer John Sykes said $ 32 million had already been raised from ticket sales and sponsorships. Organizers are hoping to raise tens of millions more.


It was being broadcast live on television, radio, movie theaters, on Facebook and iHeartRadio, and streamed on digital billboards in New York‘s Times Square, London and Paris.


EXPANDING FUNDRAISING’S REACH


More than 130 people were killed when Sandy pummeled the East Coast of the United States in October. Thousands more were left homeless as the storm tore through areas of New York, New Jersey and Connecticut, causing billions of dollars in damage.


Throughout the show, celebrities shared memories of growing up in New York City or the Jersey Shore, and offered shout-outs to first responders.


“Watching my hometown get pummeled was devastating to watch,” said actor-comedian Crystal, who grew up on Long Beach, Long Island. “It’s a helpless feeling of what’s in store for us maybe in the future.”


Sykes was also involved with “The Concert for New York City” after the September 11, 2001, attacks, which raised more than $ 30 million for charity.


He said technological advances over the past decade had exponentially changed the reach of fundraising.


“We have both traditional and new media behind us in a way that we’ve never had before, and that is really going to be the ‘x-factor’ on how much money we can raise for the victims,” he said.


Donations raised from the concert produced by Clear Channel Entertainment and the Weinstein Co, will go to the Robin Hood Relief Fund, which will provide money and materials to groups helping people hardest hit by the storm.


(Additional reporting by Piya Sinha-Roy; Editing by Jill Serjeant, Patricia Reaney and Peter Cooney)


Music News Headlines – Yahoo! News


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Venezuela’s Chavez in delicate state after surgery






CARACAS (Reuters) – Venezuelan President Hugo Chavez is in stable but delicate condition after his latest cancer surgery, the government said on Wednesday in a somber assessment that could indicate an end to his 14-year rule.


“Having been through a complex and delicate surgery, he is now in an equally complex post-operation process,” Information Minister Ernesto Villegas said on national television. “We trust in his strength.”






In an earlier broadcast, Vice President Nicolas Maduro spoke of “difficult” times ahead, urging Venezuelans to pray for Chavez and to keep faith that he would come home soon from Cuba, where he underwent the surgery on Tuesday.


Chavez’s downturn has opened gaping uncertainty about the future of his self-styled socialist revolution in a nation of 29 million people with the world’s largest oil reserves.


A frequent critic of the United States, Chavez has spearheaded a resurgence of the left in Latin America, galvanized a global “anti-imperialist” alliance from Iran to Belarus and led a decade-long push by developing nations for greater control over natural resources.


A close ally, Ecuador’s President Rafael Correa, sought to put a more positive spin on the cancer operation, telling reporters in Quito that Chavez was doing all right.


“He is fine, even though the surgery was complex,” Correa said, but he added that the future was not certain.


“If the gravity of his illness meant he could not continue to lead Venezuela, the revolutions must continue, in Venezuela, in Ecuador, in Argentina, in Bolivia.”


At home, Chavez has won cult-like status among the poor with his charisma and oil-financed largesse from health clinics to free homes. But he has alienated business with frequent nationalizations and angered many Venezuelans by putting ideological crusades over basic services.


Maduro, whom Chavez has named as a preferred successor should he be incapacitated, offered no medical details on Wednesday but urged Venezuelans to stay hopeful.


PRAYER VIGILS


Supporters have been holding prayer vigils, while opponents also sent Chavez best wishes for a successful recovery. Senior government ministers and military commanders attended a Mass to pray for Chavez’s health, which was broadcast live on state TV.


“He is fighting for life,” the head of the National Assembly, Diosdado Cabello, told the congregation.


In a plaza near the center of Caracas, neighbors came to write well wishes for Chavez on a white cloth. But government officials appeared to be cautiously preparing the president’s supporters for the worst.


Villegas said in a statement that Venezuelans should view Chavez’s situation like that of an ill relative and have faith that he will return.


“If he doesn’t, our people should be ready to understand. It would be irresponsible to hide the delicate nature of the moment we are currently living,” he wrote.


One government source said Chavez was in critical condition early on Wednesday, but since then his vital signs had improved.


State media ran hours of tributes to the president, and of rank-and-file supporters around the country gushing with admiration. “He is a second Jesus Christ,” one woman beamed.


The stakes also are enormous for allies around Latin America and the Caribbean who rely on generous oil subsidies and other aid from Chavez. President Raul Castro’s communist government in Cuba is particularly vulnerable because of its dependence on more than 100,000 barrels of oil per day from Venezuela.


Wall Street investors are also watching closely in the hope that Chavez’s intransigent socialism will give way to a more market-friendly administration.


Venezuela’s global bonds, which usually rise on bad news about Chavez’s health, saw a muted reaction on Wednesday.


The operation was Chavez’s fourth in Havana since mid-2011 for a recurring cancer in the pelvic region.


Opposition leaders have criticized the government for lack of transparency, pointing out that other Latin American leaders provided detailed reports of both diagnoses and treatments.


Chavez is due to start a new, six-year term on January 10 after his October re-election.


REGIONAL ELECTIONS LOOM


The Chavez health saga has eclipsed the buildup to regional elections on Sunday that will be an important test of political forces in Venezuela at such a pivotal moment.


Of most interest in the 23 state elections is opposition leader Henrique Capriles’ bid to retain the Miranda governorship against a challenge from former Vice President Elias Jaua.


Polls have been mixed with one showing Capriles way ahead and another giving Jaua a 5 percentage point lead.


Capriles must win if he is to retain credibility and be the opposition’s presidential candidate-in-waiting should Chavez’s cancer force a new election. Even though it may be premature, many Venezuelans already are asking themselves what a Capriles versus Maduro presidential election would be like.


Capriles, who favors a Brazilian-style government promoting open markets with firm welfare safeguards, won 44 percent in the election, a record 6.5 million votes for the opposition.


Although past polls have shown Capriles more popular than all of Chavez’s allies, that would not necessarily be the case against a Maduro candidacy imbued with Chavez’s personal blessing and with the power of the Socialist Party behind him.


(Additional reporting by Marianna Parraga, Eyanir Chinea, Mario Naranjo, Efrain Otero and Daniel Wallis in Caracas, and Eduardo Garcia in Quito.; Editing by Kieran Murray and Christopher Wilson)


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