Euro, dollar up after G20, stocks ease on growth concern

LONDON (Reuters) - The euro and the dollar rose against the yen on Monday after the G20 decided not to criticize Japan for its expansionist policies, but shares eased as Europe's weak growth outlook weighed on sentiment.

Financial leaders from the world's 20 biggest economies promised on Saturday not to devalue their currencies to boost exports, aiming to defuse talk of currency wars that had been roiling the markets.

The euro gained 0.2 percent to 125.32 yen, edging up toward a 34-month high of 127.71 yen hit earlier this month, while the dollar rose 0.6 percent to 94 yen, closer to its highest level since May 2010 of 94.46 hit on February 11.

"Future yen direction will continue to be driven by domestic monetary policy from the Bank of Japan and improving international investor confidence, which are both driving the yen weaker," said Lee Hardman, currency analyst at Bank of Tokyo-Mitsubishi UFJ.

Japanese Prime Minister Shinzo Abe is poised to nominate a new BOJ governor. Sources told Reuters that former financial bureaucrat Toshiro Muto, considered likely to be less radical than other candidates, was leading the field.

Abe said on Monday that buying foreign bonds was a future option for the Bank of Japan, which would entail selling of the yen by the central bank.

The euro was also rising against the dollar, gaining 0.1 percent to $1.3375 ahead of address by European Central Bank president Mario Draghi to the region's parliament which may touch on the outlook for the single currency after the G20 meeting.

In European markets, attention was also switching to the release of euro area Purchasing Managers' Indexes for February and German sentiment indices due later in the week, and the upcoming general elections in Italy.

Analysts expect Thursday's euro area flash PMI indices, which point to economic activity around six months out, to show growth stabilizing across the recession-hit region, leaving hopes for a recovery in the second half of the year intact.

Concerns over an inconclusive outcome in Italian elections at the end of the week added to the weaker sentiment as a fragmented parliament could hamper a future government's reform efforts.

The worries about the outlook for Italy were encouraging investors back into safe have German government bonds on Monday, with 10-year Bund yields easing 3.6 basis points to be around 1.63 percent.

"Political uncertainty will keep Bunds well bid this week," ING rate strategist Alessandro Giansanti said, adding that only better than expected economic data could create selling pressure on German debt near term.

EARNINGS HIT

European equity markets were taking their lead from corporate earnings reports which have been reflecting the sluggish economic conditions across the region.

Danish brewer Carlsberg , which generates just over 60 percent of its sales in western Europe, became the latest company to report a weaker-than-expected quarterly profit, sending its shares to lowest level in nearly a month.

The 5 percent drop in price for shares in the world's fourth biggest brewery helped send the FTSEurofirst 300 index <.fteu3> of top European shares down 0.4 percent in morning trade. Germany's DAX <.gdaxi>, the UK FTSE <.ftse> and France's CAC-40 <.fchi> were all also slightly weaker. <.l><.eu/>

Earlier, the effect of the G20 statement and the comments from Abe indicating a renewed drive to stimulate the economy lifted the Nikkei stock index <.n225> by 2.1 percent, near to its highest level since September 2008.

U.S. stock futures were barely changed and are expected to stay little changed as Wall Street will be closed on Monday for the Presidents' Day holiday. <.n/>

MSCI's world equity index <.miwd00000pus> was flat as markets extended two-week period of consolidation that has followed the big run up in January when demand was buoyed by the efforts of global central banks to stimulate the world economy.

Data from EPFR Global, a US-based firm that tracks the flows and allocations of funds globally, shows investors pulled $3.62 billion from U.S. stock funds in the latest week, the most in 10 weeks after taking a neutral stance the prior week.

But demand for emerging market equities remained strong, with investors putting $1.81 billion in new cash into stock funds, the fund-tracking firm said.

CHINA RETURN

In the commodity markets traders played catch up after a week-long holiday last week in China, the world's second biggest consumer of many raw materials, had kept activity subdued, with worries about the euro zone economy weighing on sentiment.

Copper, for which China is the world's largest consumer, fell 0.8 percent to $8,135 a metric ton (1.1023 tons) on the London futures market.

Gold rebounded by 0.3 percent from a six-month low to be $1,614 an ounce as jewelers in China returned to the physical market after the Lunar New Year holiday.

Crude oil markets were mostly steady after some weak U.S. industrial production data on Friday [ID:nL1N0BF44A] was seen dampening demand, while tensions in the Middle East lent some support.

U.S. crude fell 20 cents to $95.66 a barrel but Brent inched up two cents $117.86.

(Reporting by Richard Hubbard; editing by Philippa Fletcher)

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IHT Rendezvous: In Singapore's Immigration Debate, Sign of Asia's Slipping Middle Class?

BEIJING — Immigration is a hot-button issue nearly everywhere in the world, though the contours of the debate vary from place to place. In the United States, sweeping changes to the law may offer legal residency for millions of people who have entered the country illegally, my colleague Ashley Parker reports.

In Singapore, the debate looks somewhat different: The government plans to increase the population from just over five million to a possible high of nearly seven million by 2030, via regulated, legal immigration, and this is provoking opposition.

So much so that on Saturday, about 3,000 people turned out for what some commentators said was one of the biggest demonstrations in the nation’s history. (If the number seems small, it reflects the tight political control exerted over Singapore life by the People’s Action Party, which has run the country for about half a century and discourages public protest.)

What are the contours of the debate in Singapore?

Concern over booming immigration, often focused on new arrivals from increasingly rich China, has been simmering in the nation, with many feeling that the immigrants do not play by the same rules, that their manners are poor and that they are pushing up prices. That feeling crystallized last year when a wealthy Chinese man driving a Ferrari at high speed killed three people (including himself) in a nighttime accident.

(Similar sentiments are found in Hong Kong, as my colleagues Bettina Wassener and Gerry Mullany wrote.)

Vividly illustrating the resentment, Singaporeans sometimes call the wealthy immigrants “rich Chinese locusts,” according to an article in the Economic Observer’s Worldcrunch.

So the Singapore government’s Population White Paper that passed in Parliament earlier this month, just before Chinese New Year, was bound to stir things up.

The government is presenting the rise in immigration as a target that is needed if Singapore, where immigrants already make up about 40 percent of the population, and which has the highest concentration of millionaires in the world, is to continue to flourish, reports said. Singaporeans just are not having enough children, said the prime minister, Lee Hsien Loong.

“In my view, in 2030, I think six million will not be enough to meet Singaporeans’ needs as our population ages because of this problem of the baby boomers and bulge of aging people,” Mr. Lee said in Parliament, adding that 6.9 million was not a target but a number to be used to help plan for infrastructure.

“Do we really need to increase our population by that much?” wrote a person called Chang Wei Meng in a letter to The Straits Times, according to Reuters. “What happened to achieving the Swiss standard of living?”

Gilbert Goh, a main organizer of the rally Saturday at Singapore’s Speaker’s Corner in a public park, said the protesters had a message: “They want to tell the government, please reconsider this policy. The turnout is a testimony that this policy is flawed and unpopular on the ground,” The Associated Press quoted Mr. Goh as saying.

Yet amid the familiar rhetoric about immigrants, heard around the world – they don’t fit in, they’re rude, they’re different – might something more important be going on here?

In a blog post on Singapore News Alternative, Nicole Seah, a politician who has run for Parliament and comments on social issues, wrote: “Along with many other Singaporeans, I oppose the White Paper.”

Why? She is looking for “a society that lives in harmony, rather than tense and overcrowded conditions,” she writes.

“Not the Singapore Inc. that has been aggressively forced down our throats the past few years – a Singapore which is in danger of becoming a transient state where people from all over, come, make their fortunes, and leave.”

Not “a Singapore that has become a playground for the rich and the people who can afford it. A Singapore where the middle class is increasingly drowned out because they do not have the social clout or sufficient representatives in Parliament to voice their concerns.”

Ms. Seah’s statements raise an interesting question: Is this part of a phenomenon that the columnist Chrystia Freeland has written about so ably for this newspaper, the ascendancy of a wealthy, “plutocrat” class and the slipping status of the middle class?

As Ms. Freeland wrote last week: “The most important fact about the United States in this century is that middle-class incomes are stagnating. The financial crisis has revealed an equally stark structural problem in much of Europe.” Is it hitting Asia, too, and does Singapore’s protest speak, at least in part, to this? Hong Kong’s dissatisfaction too?

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Sports Illustrated Swimsuit Models: Then and Now

How are Elle, Christie, Kathy and more faring (and looking) since their first shoots? Answer: Pretty darn well!

Credit: Courtesy of Sports Illustrated

Updated: Tuesday Feb 12, 2013 | 09:00 AM EST
By: Kate Hogan

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UN warns risk of hepatitis E in S. Sudan grows

GENEVA (AP) — The United Nations says an outbreak of hepatitis E has killed 111 refugees in camps in South Sudan since July, and has become endemic in the region.

U.N. refugee agency spokesman Adrian Edwards says the influx of people to the camps from neighboring Sudan is believed to be one of the factors in the rapid spread of the contagious, life-threatening inflammatory viral disease of the liver.

Edwards said Friday that the camps have been hit by 6,017 cases of hepatitis E, which is spread through contaminated food and water.

He says the largest number of cases and suspected cases is in the Yusuf Batil camp in Upper Nile state, which houses 37,229 refugees fleeing fighting between rebels and the Sudanese government.

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Florida hit by "tsunami" of tax identity fraud

MIAMI (Reuters) - Bruce Parton was only a few weeks from retirement after 30 years as a mail carrier in sunny Florida.

He never lived to fulfill his retirement plan of moving back to a quiet life in the Catskill mountains of New York, not far from where he grew up on Long Island.

Instead, he was gunned down on his daily mail route in December 2010 by members of an identity theft ring who stole his master key as part of a scheme to claim fraudulent tax refunds.

Using stolen names and Social Security numbers, criminals are filing phony electronic tax forms to claim refunds, exploiting a slow-moving federal bureaucracy to collect the money before victims, or the Internal Revenue Service, discover the fraud.

Parton was a victim of what officials say has ballooned into a massive, and dangerous, illegal industry that could cost the nation $21 billion over the next five years, according to the U.S. Treasury Department.

While that is a relatively small sum compared to the $1.1 trillion collected from individual tax payers in the last fiscal year, the crime has been growing by leaps and bounds in the last three years.

"We are on the top of a national trend that is causing a hemorrhage of tax dollars," said Wifredo Ferrer, United States Attorney for south Florida. "It's a tsunami of fraud."

While the IRS says it has detected cases in every state except North Dakota and West Virginia, the fraud's epicenter is Florida, and it is mostly concentrated in Miami and Tampa.

Miami has 46 times the per-capita rate of false tax refund claims than the rest of the country, and 70 times the national average in dollar terms, Ferrer told Reuters.

"For whatever reason, we always tend to lead the nation when it comes to fraud," he said, noting that his office has been battling massive Medicare fraud in recent years that has since spread to other parts of the country.

Florida's high proportion of older residents, who can be more vulnerable to fraud, may be one reason for the high levels of fraud in the state.

Nationwide, the number of cases of tax identity theft detected by authorities sky-rocketed to more than 1.2 million cases in 2012 from only 48,000 in 2008, according to the Treasury Department.

The real number of phony tax filings is likely much higher as the fraud is hard to track, according to a November General Accountability Office report.

GANG LINKS

The tax ID theft problem is particularly troubling as, unlike Medicare fraud, it is associated with violent crime and armed gangs.

Tampa police first detected it in 2010 when officers discovered wanted street criminals engaged in tax fraud. "They were holed up in hotels with laptops churning out tax claims," said congresswoman Kathy Castor, who represents the area and is pressing the IRS to get tougher on the fraud.

When agents raided a Howard Johnson in East Tampa in late 2010, they found suspects smoking marijuana and four laptop computers being used to file fraudulent tax returns on Turbo Tax, the tax preparation software, according to police records.

The suspects had lists of personal information containing more than 1,000 names and confidential personal information, multiple re-loadable debit cards, and records of numerous financial transactions. The investigation revealed that the suspects had been camped out in the hotel room for more than a week filing claims.

Tax identity fraudsters are apparently drawn by the ease of the crime, officials say.

"The scheme is very basic, it works virtually the same in almost every case," said Ferrer. "All they need is your name and the tax ID number."

Armed with that information a refund claim can be filed electronically, making up other details on the form, including addresses, employer data, income and deductions.

Criminals obtain the vital numbers using various tactics, often by bribing office workers with access to personnel files inside companies, as well as large public institutions such as hospitals and schools, according to prosecutors.

Last summer a hacker stole 3.8 million unencrypted tax records from the South Carolina Department of Revenue in what is believed to be the largest security breach of a U.S. tax agency. Authorities say they do not know the hacker's motive.

One North Miami man, Rodney Saint Fleur, was charged last year with using the LexisNexis research service account at the law firm where he worked to access names and Social Security numbers of 26,000 people as part of an identity theft scheme, according to court documents.

Victims in Florida have varied from hospital patients, to Holocaust survivors at an elderly Jewish community center, as well as active duty military serving overseas.

In December, a former U.S. Marine from North Miami was sentenced to nearly five years in prison for stealing the identities of more than 40 fellow Marines stationed at Camp Leatherneck in Afghanistan as part of a plot to claim $54,000 in fraudulent income-tax refunds.

In Parton's case the criminals were after his master key that gives postal workers access to mail drop-off boxes and apartment mailboxes. He was shot twice in the chest by a gunman as part of a plot to steal identities in people's mail for tax refund fraud.

The gunman, Pikerson Mentor, 31, was sentenced last month to life plus 42 years.

More than 600 people turned up for Parton's funeral, including postal workers and people who got to know him on his route. "He had been doing that mail route for 10 years and he always had a smile for everyone," said his daughter, Nina Parton.

The criminals stay under the radar using identities of the elderly or the very young, who are unlikely to be filing for earned income, as well as the deceased. They typically claim small refunds, around $3,000, but use multiple identities, with payments often made to pre-paid debit cards.

FIGHTING BACK

The IRS said last week it is intensifying a crackdown on identify theft, with 3,000 agents devoted to tackling the problem, double the number assigned in 2011.

The number of IRS criminal investigations into identity theft more than tripled in the year to September 2012, and it was on pace to double again this year, acting IRS Commissioner Steven Miller told reporters.

The tax collection agency prevented $20 billion in attempted tax refund fraud in fiscal year 2012, up from $14 billion a year earlier, he said.

"It's one of the biggest challenges that faces the IRS today," Miller said. "We're doing much better on all fronts but we have much more to do."

Despite the increase in investigations, the agency still had a backlog of 300,000 cases of people waiting for legitimate refunds after they were victims of fraud. It takes an average of six months to resolve a case, Miller said.

"The IRS have put a lot of resources on it, but they always seem to be behind the curve," said Keith Fogg, a tax professor at Villanova University School of Law.

Electronic filing, which now accounts for 80 percent of returns and was introduced to speed up delivery of refunds, has made the system more vulnerable to fraud.

The IRS is seeking to speed up the loading of data from W-2 payroll forms issued at the beginning of the tax season, a time lapse which gives fraudsters a window of opportunity to file using false data.

The IRS is also looking for ways to authenticate the identity of tax filers at the time of filing to pre-empt fraud, as well as working with the Social Security Administration to limit access to a registry of social security data of deceased tax payers, the so-called "Death Master File", a frequent target of fraud.

"We will not be prosecuting our way out of this. That's not going to be the answer. We're going to have to make it more and more difficult for criminals to profit from this behavior," said Miller. "If they're not successful they will move onto something else."

(Editing by Mary Milliken and Claudia Parsons)

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IHT Rendezvous: How Much Do You Trust Journalists?

LONDON — Another poll came out this week showing that in the hierarchy of trust, journalists figure near the bottom of the heap.

Some of us take a perverse pride in being down there with the money-changers and the harlots (actually, the latter sometimes rate rather highly in these surveys.)

The comforting theory is that if everybody hates us, we must be doing something right.

The Ipsos MORI poll published on Friday found that among 1,018 British respondents, only one-in-five trusted journalists to tell the truth — on a par with bankers and below real estate agents.

Bizarrely, almost 70 percent trusted television news presenters — ahead of priests and other clergymen.

The only small consolation for the derided scribes was that they came out just ahead of politicians. Only 18 percent of respondents believed politicians could be relied on to tell the truth.

Now, the results may just reflect the current state of British journalism, and indeed of British politics.

In the latest development in a long-running phone-hacking scandal, Scotland Yard on Wednesday arrested six more journalists who previously worked for Rupert Murdoch’s now defunct News of the World.

The scandal already led to a months-long inquiry by Lord Justice Sir Brian Leveson, who concluded with an excoriating critique of the press as a whole for displaying “significant and reckless disregard for accuracy.”

Media-watchers believe, however, that in an era of rapid technological change, the trust issue goes wider than the morally dubious practices of some of the British red-top press.

As my colleague David Carr wrote at the height of the phone-hacking scandal last year: “Journalism’s ills don’t live exclusively on Fleet Street or stop at British shores.”

“Economic pressures have increased the urgency to make news and drive traffic, even as budgets have been cut and experienced news professionals tossed overboard,” David wrote.

He said part of the reason the public had lost confidence was that the product sometimes did not merit it. “If journalism is losing its way, that’s a story that needs to be told over and over,” he wrote.

An American student journal this week quoted Ron F. Smith, author of Ethics in Journalism, as saying the reputation of journalists was continually being questioned.

“Nearly every public opinion poll shows that people have lost respect for journalists and lost faith in the news media,” according to the introduction to his 2003 ethics manual.

Mariah Young, an aspiring journalist who writes for The Bullet, a student newspaper at Virginia’s University of Mary Washington, used the citation to ask whether journalists had lost a once cherished sense of ethics.

In an era of Twitter and the Internet, it was becoming harder for journalists to break news, papers to publish and people to trust the media, Ms. Young concluded.

There was similar soul-searching last month by John Lloyd, a veteran British commentator and Reuters columnist.

“The trend in a lot of the media is toward more scandal, more controversy and more opining,” he wrote, lamenting that news organizations wedded to objective reporting, investigation and rational analysis were now in a minority, “and a lot of them are finding it hard to make a living.”

He called for greater focus on long-term strategic issues such as global warming, dwindling resources and social change. “We should find some way of making this stuff part of a real global conversation — one that is vivid, comprehensible and more democratic,” he wrote.

In a comment to Mr. Lloyd, one anonymous news editor wrote, “Journalism has always attracted the self-righteous, opinionated and egotistical and with the new Facebook generation now in the workforce that bar is already at an all-time high.”

Has journalism really lost its way? Or does the public always get the press it deserves? And is the impact of citizen journalism a plus or a minus? Tell us what you think.

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Robin Roberts: My Dark Days, My Brave Fight

By Sharon Cotliar

02/16/2013 at 09:00 AM EST

Sitting in a white fluffy bathrobe in front of her bathroom mirror, Robin Roberts – still recuperating from a bone marrow transplant just five months earlier – seems at ease with her striking reflection. Just as she was after battling breast cancer in 2007, Roberts is once again bald, but this time she's skipping the wig.

"Whatever," the Good Morning America anchor says with a shrug. "I'm thankful I have a pretty-good-shaped head." And the 30 lbs. she's lost from her 5'10" frame during her month-long hospital stay? "It's been hard to put back on, a first in my life," she admits. "But I gained a pound last week in New Orleans. Woo-hoo!" And when Charlie Gibson, an old friend and former GMA cohort, drops by her Manhattan apartment and asks how she is, she replies as if nothing eventful has happened: "I'm good. How are you?" she says casually. "No, I wasn't being polite," Gibson replies. "I really want to know, 'How are you?' "

That's the question millions have been asking ever since the anchor left GMA last August to undergo a bone marrow transplant for a rare blood-and-bone-marrow disease called myelodysplastic syndrome, which can lead to a fast-growing form of leukemia.

"Every day I feel more like my old self. I didn't think I would," Roberts says, noting that she was so weak when she left the hospital in October, she could barely walk. While some shaky moments persist – "I've still got chemo brain and my vision is blurry" – Roberts is eager to return to her GMA anchor chair at last on Feb. 20, exactly five months after her transplant. "You feel so bad for so long, you just want to feel normal. And now I do."

She also has a new sense of perspective after fighting for her life for a second time. While Roberts, 52, projected an upbeat, brave persona in blog posts and tweets during her recovery, "it's important people know I'm not always like that," she says. "But I choose to be happy and not string together the bad days." Says her sister and bone marrow donor Sally-Ann: "We've been through a lot the last few months," including the death of their beloved mom, Lucimarian. "I marvel at Robin's strength."

It's a strength that was tested in April, when Roberts's doctor told her over the phone he suspected she had MDS. After looking it up on the Internet, "I was literally on the floor," she recalls. "I collapsed." But as GMA viewers know, she soon picked herself up and decided to go ahead with the grueling process of a bone marrow transplant; luckily her sister was a perfect match. Just as she was about to begin treatment, another life-altering event intervened: Roberts had to race home to Pass Christian, Miss., during Hurricane Isaac to say goodbye to her ailing mother, who died just hours after Roberts reached her on Aug. 30. The trip came at a pivotal moment for the terrified Roberts. "I don't care how old you are; when you're sick, you want your mom," she says, choking up. "And I wanted my mom."
 

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UN warns risk of hepatitis E in S. Sudan grows

GENEVA (AP) — The United Nations says an outbreak of hepatitis E has killed 111 refugees in camps in South Sudan since July, and has become endemic in the region.

U.N. refugee agency spokesman Adrian Edwards says the influx of people to the camps from neighboring Sudan is believed to be one of the factors in the rapid spread of the contagious, life-threatening inflammatory viral disease of the liver.

Edwards said Friday that the camps have been hit by 6,017 cases of hepatitis E, which is spread through contaminated food and water.

He says the largest number of cases and suspected cases is in the Yusuf Batil camp in Upper Nile state, which houses 37,229 refugees fleeing fighting between rebels and the Sudanese government.

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G20 defuses talk of "currency war", no accord on debt

MOSCOW (Reuters) - The Group of 20 nations declared on Saturday there would be no 'currency war' and deferred plans to set new debt-cutting targets in an indication of concern about the fragile state of the world economy.

Japan's expansive policies, which have driven down the yen, escaped criticism in a statement thrashed out in Moscow by financial policymakers from the G20, which groups developed and emerging markets and accounts for 90 percent of the world economy.

After late night talks, finance ministers and central bankers agreed on wording closer than expected to a joint statement issued last Tuesday by the Group of Seven rich nations backing market-determined exchange rates.

A draft communique seen by delegates on Friday had steered clear of the G7's call for economic policy not to be targeted at exchange rates. But the final version included a G20 commitment to refrain from competitive devaluations and stated monetary policy would be directed at price stability and growth.

"The language has been strengthened since our discussions last night," Canadian Finance Minister Jim Flaherty told reporters. "It's stronger than it was, but it was quite clear last night that everyone around the table wants to avoid any sort of currency disputes."

The communique did not single out Japan for aggressive monetary and fiscal policies that have seen the yen drop 20 percent, a trend that may now continue.

"The market will take the G20 statement as an approval for what it has been doing -- selling of the yen," said Neil Mellor, currency strategist at Bank of New York Mellon in London. "No censure of Japan means they will be off to the money printing presses."

The statement reflected a substantial, but not complete, endorsement of Tuesday's statement by the G7 nations - the United States, Japan, Britain, Canada, France, Germany and Italy.

"We all agreed on the fact that we refuse to enter any currency war," French Finance Minister Pierre Moscovici told reporters.

NO FISCAL TARGETS

The text also contained a commitment to credible medium-term fiscal strategy, but stopped short of setting specific goals.

A debt-cutting pact struck in Toronto in 2010 will expire this year if leaders fail to agree to extend it at a G20 summit of leaders in St Petersburg in September.

European Economic and Monetary Affairs Commissioner Olli Rehn said he expected concrete debt targets to be agreed at the September meeting.

"We have a common view on the need to have a credible medium-term plans for fiscal consolidation, which is also essential so we have foundation for sustainable growth," he told Reuters.

The United States says it is on track to meet its Toronto pledge but argues that the pace of future fiscal consolidation must not snuff out demand. Germany and others are pressing for another round of binding debt-cutting goals.

Backing in the communique for the use of domestic monetary policy to support economic recovery reflected the U.S. Federal Reserve's commitment to monetary stimulus through quantitative easing, or QE, to promote recovery and jobs.

QE entails large-scale bond buying -- $85 billion a month in the Fed's case -- that helps economic growth but creates money, much of which has leaked into emerging markets, threatening to destabilize them.

That was offset in the communique by a commitment to minimize "negative spillovers" of the resulting financial flows that emerging markets fear may pump up asset bubbles and ruin their export competitiveness.

"Major developed nations (should) pay attention to their monetary policy spillover," Vice Finance Minister Zhu Guangyao was quoted by state news agency Xinhua as saying in Moscow.

"Major developed countries' implementation of excessively relaxed currency policy has an influence on the world economy."

Russia, this year's chair of the G20, said the group had failed to reach agreement on medium-term budget deficit levels and also expressed concern about ultra-loose policies that it and other big emerging economies say could store up trouble for later.

Finance Minister Anton Siluanov said a rebalancing of global growth required more than an adjustment of exchange rates.

"Structural reforms in all countries, either with a positive or negative balance of payments, should play a bigger role," he said in an address to Saturday's talks.

The G20 put together a huge financial backstop to halt a market meltdown in 2009 but has failed to reach those heights since. At successive meetings, Germany has pressed the United States and others to do more to tackle their debts. Washington in turn has urged Berlin to do more to increase demand.

On currencies, the G20 text reiterated its commitment last November, "to move more rapidly toward mores market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals, and avoid persistent exchange rate misalignments".

It said disorderly exchange rate movements and excess volatility in financial flows could harm economic and financial stability.

(Additional reporting by Gernot Heller, Lesley Wroughton, Maya Dyakina, Tetsushi Kajimoto, Jan Strupczewski, Lidia Kelly, Katya Golubkova, Jason Bush, Anirban Nag and Michael Martina. Writing by Douglas Busvine. Editing by Timothy Heritage/Mike Peacock)

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Meteorite Fragments Are Said to Rain Down on Siberia; 500 Injuries Reported

MOSCOW — Bright objects, apparently debris from a meteorite, streaked through the sky in western Siberia early on Friday, accompanied by a boom that damaged buildings across a vast area of territory. Around 500 people were reported to have been injured, most from breaking glass.

Emergency officials had reported no deaths by Friday afternoon but said that 14 people had been hospitalized.

Russian experts believe the blast was caused by a 10-ton meteor known as a bolide, which created a powerful shock wave when it reached the Earth’s atmosphere, the Russian Academy of Sciences said in a statement. Scientists believe the bolide exploded and evaporated at a height of around 20 to 30 miles above the Earth’s surface, but that small fragments may have reached the ground, the statement said.

The governor of the Chelyabinsk district reported that a search team had found an impact crater on the outskirts of a city about 50 miles west of Chelyabinsk. An official from the Interior Ministry told the Russian news agency Interfax that three large pieces of meteorite debris had been retrieved in the area and that 10,000 police officers are searching for more.

A small asteroid, known as 2012 DA14, is expected to pass close to Earth later on Friday, NASA reported on its Web site. Aleksandr Y. Dudorov, a physicist at Chelyabinsk State University, said it was possible that the meteorite may have been flying alongside the asteroid.

“What we witnessed today may have been the precursor of that asteroid,” said Mr. Dudorov in a telephone interview. 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. Meteorites typically cause sonic booms as they enter the Earth’s atmosphere. On Friday, the force was powerful enough to shatter dishes and televisions in 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. A video made outside a building in Chelyabinsk captured 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.”

He said that there was a blast that caused balconies to shake and windows to shatter. 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,” the man said.

The object was visible from the city of Nizhniy Tagil, around 220 miles north of Chelyabinsk, where so many people called an emergency assistance number that it stopped working, the Novy Region news service reported.

The government response on Friday was huge. Seven airplanes were deployed to search for places where meteorites might have fallen and more than 20,000 people dispatched to comb the area on foot, according to the Ministry of Emergency Situations. There were also 28 sites designated to monitor radiation. No unusual readings had been detected, the ministry reported.

The area around Chelyabinsk is also home to “dozens of defense factories, including nuclear factories and those involved in production of thermonuclear weapons,” said Vladimir Lipunov, an astrophysicist at the Shternberg State Astronomy Institute.

“No one needs to be told what the Urals is,” Mr. Lipunov told the NTV television station. “A second hit in the same area is unlikely and everything could have been much, much worse.”

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, 2012 DA14, would collide with Earth. But it would pass within “the belt of satellites in geostationary orbit, which is 22,200 miles above Earth’s surface.”

The asteroid is set to pass Earth at around 2:25 p.m. Eastern time, 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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