Common Sense: High Taxes Are Not a Prime Reason for Relocation, Studies Say


Pool photo by Mikhail Klimentyev


Gerard Depardieu with Vladimir Putin in January. Russia granted Mr. Depardieu a passport after his spat with France over taxes.







Last month, Vladimir V. Putin hugged his newly minted fellow Russian citizen, the actor Gerard Depardieu, posing for cameras at the Black Sea port of Sochi. “I adore your country,” Mr. Depardieu gushed — especially its 13 percent flat tax on personal income.




Sochi may not be St. Tropez, but it does have winter temperatures in the 60s and even palm trees. Mr. Putin’s deputy prime minister confidently predicted a “mass migration of wealthy Europeans to Russia.”


Here in the United States, the three-time Masters champion Phil Mickelson recently walked off the 18th hole at Humana Challenge and said he might move from California because the state increased its top income tax rate to 13.3 percent from 10.3 percent.


“Hey Phil,” Gov. Rick Perry of Texas wrote in a Twitter message, “Texas is home to liberty and low taxes ... we would love to have you as well!!” Tiger Woods later said that he had left California for Florida for just that reason years ago. Mr. Mickelson can “vote with his Gulfstream,” a Wall Street Journal editorial noted, and warned California to “expect a continued migration.”


It’s an article of faith among low-tax advocates that income tax increases aimed at the rich simply drive them away. As Stuart Varney put it on Fox News: “Look at what happened in Britain. They raised the top tax rate to 50 percent, and two-thirds of the millionaires disappeared in the next tax year. Same things are happening in France. People are leaving where the top tax rate is 75 percent. Same thing happened in Maryland a few years ago. New millionaire’s tax, the millionaires disappeared. You’ve got exactly the same thing in California.”


That, at least, is what low-tax advocates want us to think, and on its face, it seems to make sense. But it’s not the case. It turns out that a large majority of people move for far more compelling reasons, like jobs, the cost of housing, family ties or a warmer climate. At least three recent academic studies have demonstrated that the number of people who move for tax reasons is negligible, even among the wealthy.


Cristobal Young, an assistant professor of sociology at Stanford, studied the effects of recent tax increases in New Jersey and California.


“It’s very clear that, over all, modest changes in top tax rates do not affect millionaire migration,” he told me this week. “Neither tax increases nor tax cuts on the rich have affected their migration rates.”


The notion of tax flight “is almost entirely bogus — it’s a myth,” said Jon Shure, director of state fiscal studies at the Center on Budget and Policy Priorities, a nonprofit research group in Washington. “The anecdotal coverage makes it seem like people are leaving in droves because of high taxes. They’re not. There are a lot of low-tax states, and you don’t see millionaires flocking there.”


Despite the allure of low taxes, Mr. Depardieu hasn’t been seen in Russia since picking up his passport and seems to be hedging his bets by maintaining a residence in Belgium. Meanwhile, Russian billionaires are snapping up trophy properties in high-tax London, New York and Beverly Hills, Calif.


“I don’t hear about many billionaires moving to Moscow,” said Robert Tannenwald, a lecturer in economic policy at Brandeis University and former Federal Reserve economist. Along with Nicholas Johnson, he and Mr. Shure are co-authors of “Tax Flight Is a Myth,” a 2011 research paper.


Of course, some people do move for tax reasons, especially wealthy retirees, athletes and other celebrities without strong ties to high-tax locations, like jobs and families. In renouncing his French citizenship, Mr. Depardieu follows other French celebrities, the chef Alain Ducasse, the singer Johnny Hallyday and Yannick Noah, a former tennis star. Several Paris hedge fund managers have decamped to London and the fashion mogul Bernard Arnault applied for Belgian citizenship, though not, he has said, for tax reasons.


Stars like Mr. Depardieu and Mr. Mickelson certainly have incentives to move. Mr. Depardieu complained that he paid 85 percent of his income in taxes in France last year and has paid 145 million euros over 45 years. France has a top rate of 41 percent as well as a wealth tax, and the Socialist president, François Hollande, is trying to impose a temporary surcharge of 75 percent on incomes over 1 million euros. Mr. Mickelson earned more than $60 million last year, Sports Illustrated estimates, which means the three-percentage-point California tax increase could add up to an additional $1.8 million in tax.


This article has been revised to reflect the following correction:

Correction: February 15, 2013

An earlier version of this column misstated Mr. Depardieu’s citizenship. He has applied for residency in Belgium; he is not a citizen of that nation. The earlier version also misidentified the golf tournament at which the golfer Phil Mickelson said he might move from California to escape its taxes. It was the Humana Challenge, not Pebble Beach.



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Meteorite Fragments Are Said to Rain Down on Siberia; 400 Injuries Reported





MOSCOW – A shower of falling objects, tentatively identified as fragments of a meteorite, streaked through the sky in western Siberia early on Friday, damaging buildings across a vast swath of territory. More than 400 people were reported to have been injured, most from breaking glass.




But hours after the objects fell to earth, emergency officials had reported no deaths.


Yelena Smirnykh, a spokeswoman for the Ministry of Emergency Situations, told Ekho Moskvy radio that she believed the meteorite broke apart and fell in several places. Another government expert, who spoke to Moscow FM radio station, said he believed it may have been a bolide, a type of fireball meteor that explodes in the earth’s atmosphere because of its composition or angle of entry and can be observed from the ground.


However, the governor of the Chelyabinsk region reported that a search team had found an impact crater on the outskirts of a city about 50 miles west of Chelyabinsk, which would indicate the meteor did not explode in the atmosphere. Several fragments were also reported to have struck around the city of Satka.


A small asteroid, known as 2012 DA14, is expected to pass close to earth later on Friday, NASA reported on its Web site. It was not clear whether the meteorite event in the Ural Mountains was in any way related.


Dozens of amateur videos of the event were broadcast on Friday morning. They showed bright objects streaking through a clear morning sky, leaving a thick trail of white vapor.


Dozens of amateur videos of the event were broadcast on Friday morning. They showed bright objects streaking through a clear morning sky, leaving a thick trail of white vapor.


Video clips from the city of Chelyabinsk showed an early morning sky illuminated by a brilliant flash, followed by the sound of breaking glass and multiple car alarms apparently triggered by the impact, which was powerful enough to shatter dishes and televisions inside people’s homes.


“I saw a flash in the window, turned toward it and saw a burning cloud, which was surrounded by smoke and was going downward – it reminded me of what you see after an explosion,” said Maria Polyakova, 25, head of reception at the Park-City Hotel in Chelyabinsk, which is 950 miles east of Moscow.


She said the explosion occurred shortly thereafter, shattering the thick glass doors on the hotel’s first floor. She said the hotel was evacuated, but that there was no panic. Emergency officials in Chelyabinsk reported that at least four people were injured by broken glass at a school, according to the Interfax news agency. Authorities said windows facing the point of impact broke throughout the city.


“Now we have many calls about trauma, cuts and bruises,” Igor Murog, a deputy governor of the Ural region, told Interfax.


A video made outside a building in Chelyabinsk captured a blast strong enough to break windows far from the point of impact and the astonished voices of witnesses who were uncertain what it was they had just seen.


“Maybe it was a rocket,” said one man, who rushed outside onto the street along with his co-workers when the object hit, far out of sight. A man named Artyom, who spoke to the Moscow FM radio station, said the explosion was enormous.


“I was sitting at work and the windows lit up and it was as if the whole city was illuminated, and I looked out and saw a huge streak in the sky and it was like that for two or three minutes and then I heard these noises, like claps,” he said. “And then all the dogs started barking.”


On impact, he said balconies shook and windows shattered. He said he did not believe it was a meteorite. “We are waiting for a second piece, that is what people are talking about now,” he said.


There were reports that falling objects were visible as far away as Yekaterinburg, 125 miles southeast of Chelyabinsk. A police official told Interfax that authorities had identified one meteorite’s point of impact, in a sparsely populated area around 50 miles outside the city of Satka.


Siberia stretches the length of Asia and there is a history of meteor and asteroid showers there. In 1908 a powerful explosion was reported near the Tunguska River in central Siberia, its impact so great that trees were flattened for 25 miles around. Generations of scientists have studied that event, analyzing particles that were driven into the earth’s surface as far away as the South Pole. A study published in the 1980s concluded the object weighed a million tons.


In the United States, NASA alluded to the Tunguska incident when it said that it was watching closely an asteroid 150 feet in diameter expected to whiz past earth on Friday at a distance of around 17,200 miles, the closest for many decades.


In a statement on its Web site, NASA said on Friday that there was no risk that the asteroid – known as 2012 DA14 – would collide with earth. But it would pass within “the belt of satellites in geostationary orbit, which is located 22,200 miles above earth’s surface.”


The asteroid is set to pass earth at around 2:25 p.m. E.S.T., NASA said. “At the time of closest approach, the asteroid will be over the eastern Indian Ocean, off Sumatra,” the agency said.


“Asteroid 2012 DA14 will not impact earth, but if another asteroid of a size similar to that of 2012 DA14 were to impact earth, it would release approximately 2.5 megatons of energy in the atmosphere and would be expected to cause regional devastation,” NASA said. The asteroid will not be visible to the naked eye, the agency added.


Referring to the “Tunguska Event,” NASA said the impact of an asteroid just smaller than 2012 DA14 “is believed to have flattened about 825 square miles of forest in and around the Podkamennaya Tunguska River in what is now Krasnoyarsk Krai, Russia.”


Viktor Klimenko contributed reporting from Moscow, and Alan Cowell from London.



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Pistorius in court in murder case


PRETORIA, South Africa (AP) — Paralympic superstar Oscar Pistorius openly wept as he appeared in court Friday, charged with the murder of his girlfriend as South Africans closely watched developments in a killing that has stunned the country.


Reeva Steenkamp, a model and budding reality TV show participant, was shot and killed at Pistorius' upmarket home in an eastern suburb of the South African capital in the predawn hours of Thursday, sending the country reeling.


Pistorius solemnly entered court in a gray suit and blue tie. He later broke down in tears.


Chief Magistrate Desmond Nasir was presiding over the hearing which likely will include Pistorius' request for bail. Police oppose the granting of bail.


Pistorius' father, Henke, was in the court as was his brother Carl, sister Aimee and other supporters of the 26-year-old double-amputee athlete.


Police said Friday an autopsy on the body of the victim was taking place. Lt. Col. Katlego Mogale said the results of the autopsy would not be published.


More than 100 people packed into Courtroom C at Pretoria Magistrate's Court, including dozens of photographers and videographers.


The Paralympian and Olympic athlete was earlier seen leaving a police station, his jacket completely covering his head as he got into a police vehicle.


He was holding what appeared to be a white handkerchief in one hand as he was led by officers to a police van outside the Boschkop Police Station in eastern Pretoria, where he had been questioned on Thursday and had spent the night in custody.


Police said the victim was shot four times at Pistorius' villa in a gated community. Officers found a 9 mm pistol inside the home and arrested Pistorius on a murder charge.


Pistorius made history at the London Olympics last year when he became the first double-amputee track athlete to compete at any games. He didn't win a medal but did make the semifinals of the 400 meters and the final of the 4X400 relay, propelling the world's best-known Paralympian to the level of an international track star.


___


AP Sports Writer Imray reported from Johannesburg. Associated Press writer Michelle Faul contributed to this story.


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Well: Ask Well: Swimming to Ease Back Pain

Many people find that recreational swimming helps ease back pain, and there is research to back that up. But some strokes may be better than others.

An advantage to exercising in a pool is that the buoyancy of the water takes stress off the joints. At the same time, swimming and other aquatic exercises can strengthen back and core muscles.

That said, it does not mean that everyone with a case of back pain should jump in a pool, said Dr. Scott A. Rodeo, a team physician for U.S.A. Olympic Swimming at the last three Olympic Games. Back pain can have a number of potential causes, some that require more caution than others. So the first thing to do is to get a careful evaluation and diagnosis. A doctor might recommend working with a physical therapist and starting off with standing exercises in the pool that involve bands and balls to strengthen the core and lower back muscles.

If you are cleared to swim, and just starting for the first time, pay close attention to your technique. Work with a coach or trainer if necessary. It may also be a good idea to start with the breaststroke, because the butterfly and freestyle strokes involve more trunk rotation. The backstroke is another good option, said Dr. Rodeo, who is co-chief of the sports medicine and shoulder service at the Hospital for Special Surgery in New York.

“With all the other strokes, you have the potential for some spine hyperextension,” Dr. Rodeo said. “With the backstroke, being on your back, you don’t have as much hyperextension.”

Like any activity, begin gradually, swimming perhaps twice a week at first and then progressing slowly over four to six weeks, he said. In one study, Japanese researchers looked at 35 people with low back pain who were enrolled in an aquatic exercise program, which included swimming and walking in a pool. Almost all of the patients showed improvements after six months, but the researchers found that those who participated at least twice weekly showed more significant improvements than those who went only once a week. “The improvement in physical score was independent of the initial ability in swimming,” they wrote.

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DealBook: S.E.C. Is Said to Be Investigating Trading Before Heinz Deal

Regulators are scrutinizing unusual trading surrounding the planned $23 billion takeover of the food company H. J. Heinz, raising questions about potential illegal activity in one of the biggest deals in recent memory, a person briefed on the matter said.

The Securities and Exchange Commission opened an insider trading inquiry on Thursday as Berkshire Hathaway and the investment firm 3G Capital agreed to pay $72.50 a share for Heinz, this person said. Regulators first noticed a suspicious spike in trading on Wednesday.

If the S.E.C.’s preliminary inquiry turns into a broader investigation, it could cast a shadow over the deal. As part of the process, authorities would turn their focus toward the limited universe of insiders who could have tipped off traders about the deal.

The agency’s inquiry is expected to be centered on options trading in Heinz, activity that soared this week as news of the deal circulated Wall Street. In what is known as a call option, investors can place a bullish bet on a stock, without actually committing to buy the shares. Instead, investors have the opportunity to buy at a given price and future date.

As recently as Tuesday, there was scant activity in Heinz options. But by Wednesday, as the companies were putting the finishing touches on the deal, options trading jumped, data from Bloomberg shows.

The price of Heinz’s stock soared after the deal was announced. The stock finished up nearly 20 percent on Thursday to close at $72.50, matching the offer price.

The S.E.C. is focusing on the sudden leap in options trading Wednesday, building on a related case it filed last year that also involved 3G, a company with Brazilian roots. In September, the agency obtained an emergency court order to freeze the assets of a Brazilian man suspected of insider trading around 3G Capital’s takeover of Burger King. The trader, a Brazilian citizen who worked at Wells Fargo in Miami, reportedly received the tip from a 3G investor.

Neither the company nor any individual at 3G has been accused of any wrongdoing in that case or in the Heinz inquiry.

While the inquiry is in its early stages, the person briefed on the matter said that regulators could take relatively prompt action. If it is concerned that traders might move the money overseas, the S.E.C. could ask a federal court to freeze the traders’ assets.

The S.E.C. routinely opens inquiries into trading activity after major mergers are announced, but often does not bring charges. The agency, however, has renewed its focus on insider trading, mounting dozens of cases in recent years.

An S.E.C. spokesman declined to comment. Bloomberg News earlier reported that S.E.C. investigators were reviewing the surge in Heinz options trading.

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Woman Found Fatally Shot at Home of Pistorius


Emilio Morenatti/Associated Press


Oscar Pistorius, the South African Olympic and Paralympic track star, in September.







JOHANNESBURG — Paralympic champion Oscar Pistorius was taken into police custody early Thursday morning after he shot and killed a woman in his home in Pretoria, according to South African police officials.




Mr. Pistorius, 26, won two gold medals and a silver at last year’s Paralympic Games in London. He was the first double amputee to run in the Olympics and reached the 400-meter semi-final in 2012 in London. Known by the nickname Blade Runner, he races using carbon fiber prosthetic blades.


Early Thursday morning, the police responded to a report of gunshots in the upscale housing complex where Mr. Pistorius lives, said Col. Katlego Mogale, a police spokeswoman. When they arrived, they found paramedics treating a 30-year-old woman for gunshot wounds. The woman was pronounced dead and a 26-year-old man was taken into custody, Colonel Mogale said. She declined to identify the man as Mr. Pistorius, but another police official confirmed that it was the runner.


Colonel Mogale said that the case is being investigated as a murder and that the suspect is expected to appear in court later Thursday. She would not comment on a possible motive for the shooting.


“A case of murder has been opened,” Colonel Mogale said. “Currently the investigators and the forensic people are on the scene.”


Reports from local media said that Mr. Pistorius told the police that the shooting was an accident and that he had mistaken the woman, who was said to be his girlfriend, for an intruder.


South Africa has one of the world’s highest rates of violent crime, and break-ins by armed robbers are relatively common. Legal handgun ownership is also common, with some restrictions.


Adele Kirsten of Gun-Free SA, an anti-gun violence organization, said that whatever the motive, the shooting was an avoidable tragedy.


“The idea that you have a gun to protect your family against intruders, the data doesn’t bear that out,” Ms. Kirsten said. “What it tells us is that having a gun in your home puts you and your family at risk of being shot.”


In the Paralympics last September, Mr. Pistorius won individual gold, when he successfully defended his Paralympic 400 meter title. He had lost his 100- and 200-meter titles, but was part of the gold medal-winning 4x100 meter relay team. He same second in the 200 meter race.


After that contest, Mr. Pistorius damaged his reputation among his followers by criticizing the winner, Alan Oliveira of Brazil, raising questions about the length of the winner’s blades. Mr. Pistorius later apologized and praised the gold medalist in the 100 meter race, Jonnie Peacock of Britain.


Mr. Pistorius, who was born without fibulas, had both legs amputated below the knee before his first birthday and he battled for many years to compete against able-bodied athletes. In 2008, he qualified for the Beijing Games but was ruled ineligible by track’s world governing body because his blades were deemed to give him a competitive advantage.


South African journalists said Mr. Pistorius lived in an upscale, walled complex near the South Africa capital of Pretoria and that his girlfriend was a fashion model. A reporter outside the complex on Thursday said it was protected by high walls and razor wire.


Lydia Polgreen reported from Johannesburg, and Alan Cowell from Paris.



This article has been revised to reflect the following correction:

Correction: February 14, 2013

An earlier version of this article referred incorrectly in one reference to the sprinter at whose home a woman was fatally shot. He is Oscar Pistorius, not Pretorius.



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Olympian Pistorius in custody after woman killed


PRETORIA, South Africa (AP) — Olympic athlete Oscar Pistorius was taken into custody and was expected to appear in court Thursday after a 30-year-old woman who was believed to be his girlfriend was shot dead at his home in South Africa's capital, Pretoria.


Police Lt. Col. Katlego Mogale told The Associated Press that officers received a call in the early hours of the morning that there had been a shooting at the double-amputee runner's home in a gated housing complex.


Mogale said when police arrived they found paramedics trying to revive the woman, who had been shot an unspecified number of times. Mogale, who was speaking to the AP from the scene, said the woman died at the house.


Officers found a 9 mm pistol at Pistorius' house and Mogale said the 26-year-old Pistorius is expected to appear in court later on Thursday.


Police have not released the name of the woman, but the publicist for Reeva Steenkamp, Pistorius' girlfriend, told Sky News that Steenkamp had died. Tributes to Steenkamp, a model, poured onto social media sites.


Many South African media outlets had reported that the dead woman was Pistorius' girlfriend Steenkamp and that he may have mistaken her for a burglar and shot her, but police did not clarify the dead woman's relationship to Pistorius. Mogale said the victim's family had not yet identified the body.


It was reported that the woman may have been trying to surprise Pistorius for Valentine's Day and he thought she was an intruder breaking into his home. The shooting prompted discussions on talk radio shows about the country's gun control laws.


Radio 702 talk show host Redi Thlabi discussed accidental shootings, including one in which a father shot his daughter as she tried to sneak out early one morning, mistaking her for an intruder.


"I am just shocked and speechless," Thlabi said. "I wonder if this puts the spotlight on the gun ownership debate. Do you feel safe when you hear such stories?"


Pistorius made history in London last year when he became the first double-amputee track athlete to compete in the Olympic Games. He is one of South Africa's and the world's most famous sportsmen.


Having had both his legs amputated below the knee before his first birthday because of a congenital condition, he campaigned for years to be allowed to compete against able-bodied athletes. Having initially been banned because of his carbon fiber blades — which critics said gave him an unfair advantage — he was cleared by sport's highest court in 2008 and allowed to run at the top events.


He competed in the 400 meters and on South Africa's 4x400 relay team at the London Games, making history after being have his selection confirmed on South Africa's team at the very last minute. He also retained his Paralympic title in the 400 meters in London.


South Africa's Sports Confederation and Olympic committee released a statement later Thursday saying they had been "inundated" with requests for comment but were not in a position to give out any details of the shooting.


"SASCOC, like the rest of the public, knows no more than what is in the public domain, which is there has been an alleged fatal shooting on the basis of a mistaken identity and an apparent assumption of a burglary," the South African Olympic committee said. "The organization is in no position to comment on the incident other than to say our deepest sympathy and condolences have been expressed to the families of all concerned."


South Africa has some of the world's highest murder rates, with nearly 50 people killed each day in the nation of 50 million. It also has high rates of rape, other assaults, robbery and carjackings.


U.N. statistics show South Africa has the second highest rate of shooting deaths in the world, second only to Colombia.


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Imray reported from Cape Town, South Africa.


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Use of Morning-After Pill Is Rising, Report Says


The use of morning-after pills by American women has more than doubled in recent years, driven largely by rising rates of use among women in their early 20s, according to new federal data released Thursday.


The finding is likely to add to the public debate over rules issued by the Obama administration under the new health care law that require most employers to provide free coverage of birth control, including morning-after pills, to female employees. Some religious institutions and some employers have objected to the requirement and filed lawsuits to block its enforcement.


Morning-after pills, which help prevent pregnancy after sex, were used by 11 percent of sexually active women from 2006 to 2010, the period of the study. That was up from just 4 percent in 2002. Nearly one in four women between the ages of 20 and 24 who had ever had sex have used the pill at some point, the data show.


Morning-after pills are particularly controversial among some conservative groups who contend they can cause abortions by interfering with the implantation of a fertilized egg that the groups regard as a person.


Medical experts say that portrayal is inaccurate, and that studies provide strong evidence that the most commonly used pills do not hinder implantation, but work by delaying or preventing ovulation so that an egg is never fertilized in the first place, or thicken cervical mucus so sperm have trouble moving.


This month, the Obama administration offered a proposal that could expand the number of groups that do not need to provide or pay for birth control coverage. But the proposal did not end the political fight over the issue, which legal experts say may end up in the Supreme Court.


The new data was released by the National Center for Health Statistics and based on interviews with more than 12,000 women from 2006 to 2010. Researchers asked sexually active women if they had ever used emergency contraception, “also known as Plan B, Preven or morning-after pills,” as well as about their use of other forms of birth control.


Over all, 99 percent of sexually active women ages 15 to 44 have used contraception at some point in their lives, or about 53 million women, up slightly from 2002. An earlier report found that 62 percent of all women of reproductive age were currently using some form of birth control.


The new report found that 98.6 percent of sexually active Catholic women had used contraception at some point, but the data did not show how many Catholic women currently use contraception.


Condom use has risen markedly. More than 93 percent of women said they had partners who had used condoms at some point, compared with 82 percent of women in 1995, a likely effect of strong public advocacy for condom use during the AIDS epidemic.


In contrast, women who had used intrauterine devices, or IUDs, at some point in their lives declined to about 8 percent from 10 percent in 1995. The use of birth control pills has remained steady since 1995 at 82 percent.


Eighty-nine percent of white women said they had used birth control pills at some point, compared with 67 percent of Hispanic women, 78 percent of black women and 57 percent of Asian women.


Education played a role in the type of contraception used. Forty percent of women without a high school diploma said they chose sterilization, while just 10 percent of women with a bachelor’s degree said they used that method. Those without a high school diploma were also far more likely to use three-month injectables, like Depo-Provera — 36 percent compared with 13 percent of women with a college degree.


About 12 percent of college graduates said they had used emergency contraception, while 7 percent of women with only a high school degree said they had used it.


Educated women were far more likely to have practiced periodic abstinence based on the menstrual cycle. About 28 percent of women with a master’s degree or higher had practiced this method, while just 13 percent of women without a high school diploma had, the report found.


White women, American-born Hispanic women and black women were most likely to practice withdrawal, with more than half of women in each group saying they have used that method. Just 44 percent of foreign-born Hispanics said they practiced withdrawal.


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Japanese Economy Contracts and Remains in Recession





TOKYO (AP) — Japan’s economy remained mired in recession late last year, shrinking 0.4 percent in annualized terms for the third straight quarter of contraction on feeble demand at home and overseas.


The government reported Thursday that growth for all of 2012 was 1.9 percent, after a 0.6 percent contraction in 2011 and a 4.7 percent increase in 2010 and a 5.5 percent contraction in 2009.


The figures were worse than expected, as many analysts had forecast the economy may have emerged from recession late last year as the Japanese yen weakened against other major currencies, giving a boost to Japanese export manufacturers.


Prime Minister Shinzo Abe, who took office in late December, is championing aggressive spending and monetary stimulus to help get growth back on track. He has lobbied the central bank to set an inflation target of 2 percent, aimed at breaking out of Japan’s long bout of deflation, or falling prices, that he says are inhibiting corporate investment and growth.


But the Bank of Japan was not expected to announce any major new initiatives from a policy meeting on Thursday. The current central bank governor, Masaaki Shirakawa, is due to leave office on March 19, and Mr. Abe is expected to appoint as his successor an expert who favors his more activist approach to monetary policy.


Last year began on an upbeat note with annual growth in the first quarter at 6 percent as strong government spending on reconstruction from the March 2011 tsunami disaster helped spur demand. But the economy contracted in the second quarter and deteriorated further as frictions with China over a territorial dispute hurt exports to one of Japan’s largest overseas markets.


Despite the dismal data for last year, many in Japan expect at least a temporary bump to growth from higher government spending on public works and other programs. An index measuring consumer confidence, released this week, jumped to its highest level since 2007, the biggest increase in a single month.


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Pope to Make First Public Appearance Since Decision to Resign





VATICAN CITY — As Christians embarked on the 40-day period of Lent preceding Easter, Pope Benedict XVI made his first public appearance on Wednesday since the stunning announcement of his resignation two days ago, holding a general audience at the Vatican before a mass at St. Peter’s described by officials as likely to be his final celebration of a major mass in the huge basilica before his retirement on Feb. 28.




Loud cheers greeted the pope as he entered the Vatican’s audience hall which has a capacity of around 8,000 people.


The day — Ash Wednesday at the beginning of one of the most important periods in the Christian religious calendar — offered the pope’s followers a chance to see and hear him before he withdraws into a far more sheltered life in a convent within the Vatican walls where an apartment has been prepared for him.


Still unclear, however, are some of the practical consequences of Benedict’s decision, Vatican officials acknowledged Tuesday, from how the former pope will be addressed, to what to do with the papal ring used to seal important documents, traditionally destroyed upon a pope’s death.


“There are a series of questions that remain to be seen, also on the part of the pope himself, even if it is a decision that he had made some time ago,” the Rev. Federico Lombardi, the Vatican spokesman, said at a news conference. “How he will live afterward, which will be very different from how he lives now, will require time and tranquillity and reflection and a moment of adaptation to a new situation.”


Thousands of Catholics gathered for a glimpse of Benedict, including Francesca Meggiorini, from Verona, who had brought her four children with her because, she said, “this is special. I wanted my kids to be present. The pope was a man whose simple words went straight to the heart. So it’s wonderful for my children to be here. I think this experience will remain in their memory.”


Kevin Murphy, on a pilgrimage from Saint Benedict School in Bury St. Edmunds in eastern England, called Benedict “a great moral and spiritual leader.” And Fabio Semeraro, a ballet dancer from Rome, said he came to see the pope after “because it’s an important event. You get attached to a pope, but then again, after there will be another.”


Even though the Code of Canon Law allows popes to resign, the occurrence was rare enough to have caught Vatican officials off guard, including on issues like the protocol and potentially awkward logistics of having a former pope and his successor share a backyard.


When he leaves the papacy at the end of the month, Benedict will retire to his summer home in Castel Gandolfo, in the hills outside Rome, before moving to the Mater Ecclesiae convent, a plain, four-story structure built 21 years ago to serve as an international place “for contemplative life within the walls of Vatican City,” as it is described on a Vatican Web site.


Workers began transforming the building into a residence in November, after the cloistered nuns who had occupied the convent left, Father Lombardi said. He did not tip his hand about whether the renovations were carried out with the pontiff as the future occupant in mind. “The pope knew this place, this building and thought it was appropriate for his needs,” he said.


The timing, however, raised suspicions that the pope had been planning the details of his retirement for some time. The editor of the Vatican newspaper, L’Osservatore Romano, wrote Monday that the pope had made his decision “many months ago,” after a demanding trip to Mexico and Cuba in March 2012, “and kept with a reserve that no one could violate.”


Father Lombardi said that the stress of that trip had further convinced the pope that he no longer had the stamina to do the job.


In fact, the pope had meditated on the possibility of resigning for years. In the 2010 book “Light of the World: The Pope, the Church and the Signs of the Times,” from a series of interviews conducted by Peter Seewald, a German journalist, Benedict said that if a pope “clearly realized that he is no longer physically, psychologically and spiritually capable of carrying out the duties of his office,” he would have “the right, and under some circumstances also an obligation, to resign.”


Rumors of his imminent resignation began to appear periodically in the Italian news media in recent years, as the pope appeared increasingly frail in public appearances.


A Vatican official, who asked not to be named because he was discussing papal business, said that the number of people who had known about the pope’s decision “a long time, could be counted on one hand.” But the pope had informed a small group of other collaborators “in recent days.”


When he retires to Vatican City, the pope will be able to move freely, Father Lombardi said, though it was “premature” to say how involved he will be in day-to-day activities — like saying Mass — at the Vatican.


He would not, however, intervene in the choice of his successor. “You can be sure that the cardinals will be autonomous in their decision and he will have no specific role in this election,” Father Lombardi said, adding that the pope was “a very discreet person.”


The conclave to choose the next pope will begin 15 to 20 days after the pope resigns, and a new leader of the Roman Catholic Church is expected to be in place by Easter, which falls on March 31 this year.


Father Lombardi said the pope would continue to perform his regular duties until the end of the month, and would keep all the appointments on his calendar. Some parts of his schedule will be modified to take into account the heightened public interest in the pope during his final days in office, Father Lombardi indicated.


For instance, the Ash Wednesday mass usually takes place in a church on the Aventine Hill. But this year it will be conducted in St. Peter’s to allow a greater number of the faithful to attend, Father Lombardi said.


His final audience, on Feb. 27, will be moved to St. Peter’s Square instead of the usual indoor venue used in winter, “to allow the faithful to say goodbye to the pope.”


Elisabetta Povoledo reported from Vatican City, and Alan Cowell from Paris.



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