Apple falls on lower shipment forecasts, muted China debut






(Reuters) – Apple Inc shares fell 3.9 percent on Friday after the iPhone 5 debuted in China to a cool reception and two analysts cut shipment forecasts.


Jefferies analyst Peter Misek trimmed his iPhone shipment estimates for the Jan-March quarter, saying that the technology company had started cutting orders to suppliers to balance excess inventory.






Shares of Apple suppliers Jabil Circuit Inc, Qualcomm Inc, Skyworks Solutions Inc, TriQuint Semiconductor Inc, Avago Technologies Ltd, and Cirrus Logic Inc also fell in early trading.


Apple shares have lost a quarter of their value since they hit a life high of $ 705.07 on September 21, as it faces increasing competition from phones using Google Inc’s Android operating system.


Misek cut his first-quarter iPhone sales estimate to 48 million from 52 million and gross margin expectations for the company by 2 percentage points to 40 percent.


UBS Investment Research cut its price target on Apple stock to $ 700 from $ 780 on lower expected iPhone and iPad shipments for the March quarter.


The brokerage said it was modeling more conservative growth for the world’s biggest technology company after making supply chain checks that revealed that fewer iPhones were being built.


“Some of our Chinese sources do not expect the iPhone 5 to do as well as the iPhone 4S,” UBS analyst Steven Milunovich wrote in a note to clients.


Apple launched the iPhone 5 in China on Friday, a move widely expected to bring the Cupertino-based company some respite from a recent slide in market share in China, but early reports indicated that demand may not be as great as expected.


“The iPhone 5 China launch has been surprisingly muted but (we) are unsure how much weather (snow) or the required pre-ordering (to prevent riots) are factors,” Misek said.


Apple shares fell as low as $ 508.50 in morning trading on the Nasdaq on Friday.


(Editing by Supriya Kurane)


Tech News Headlines – Yahoo! News


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Reese Witherspoon Spreads Holiday Cheer While Stuck in Traffic















12/14/2012 at 12:00 PM EST







Reese Witherspoon in Brentwood, Calif.


Splash News Online; Inset: FilmMagic


Reese Witherspoon beat the gridlock gloom with a pinch of holiday humor on Thursday.

The actress was spotted driving a car that would make her the envy of any Christmas fanatic. Witherspoon tricked out her Land Rover with reindeer antlers flanking each side and a red Rudolph nose on the front.

The silly decorations might not illicit giggles from baby Tennessee just yet, but Witherspoon's cute car surely cheered up other drivers lucky enough to catch a glimpse.

The actress, 36, recently joked that she's working on getting her pre-baby brain back. "I couldn't remember, the other day, what you call that thing that keeps the food cold. It was the refrigerator," said Witherspoon. "I couldn't remember the name of it!"

Julia Haskins

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APNewsBreak: Texas cancer probe draws NCI scrutiny


AUSTIN, Texas (AP) — The federal National Cancer Institute says it's taking a fresh look at a troubled $3 billion cancer-fighting effort already being scrutinized by prosecutors and lawmakers in Texas.


The U.S. government's cancer research agency confirmed Friday that upheaval within the Cancer Prevention and Research Institute of Texas caught its attention. NCI spokeswoman Aleea Farrakh Khan told The Associated Press that officials are "evaluating recent events" at CPRIT.


CPRIT is on an exclusive list of NCI-approved funding entities, which includes the American Cancer Society. The designation is a federal seal-of-approval that signals high peer review standards and conflict of interest policies.


Khan says NCI has made no decisions about CPRIT or contacted the agency directly.


Prosecutors are investigating CPRIT following an $11 million award to a private company that bypassed review.


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Wall Street drops as Apple falls, "cliff" looms

NEW YORK (Reuters) - Stocks fell on Friday, with the Nasdaq weighed down by another drop in shares of Apple, and as the overhang of "fiscal cliff" negotiations kept buying to a premium.


Apple slid 4 percent to $508.75 after UBS cut its price target on the stock to $700 from $780. The most valuable U.S. company has seen its stock hit hard in the last three months, and it fell on Friday after a tepid reception for iPhone 5 in China.


The S&P Information Technology Index <.gspt> dropped 0.9 percent as Apple fell and Jabil Circuit Inc lost 6.2 percent to $17.38 after UBS cut its price target.


The possibility of a "fiscal cliff" deal not taking place until early 2013 is rising. The back-and-forth negotiations over the fiscal cliff in Washington have kept markets on hold in what would already be a quiet period for stocks.


"We're faced with uncertainty ... and that's going to continue now into January. It basically puts everybody on hold, and (you) just have the markets kind of thrash around," said Larry Abruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston.


President Barack Obama and House of Representatives Speaker John Boehner held a "frank" meeting on Thursday at the White House to discuss how to avoid the tax hikes and spending cuts set to kick in early in 2013.


The S&P 500 dropped 0.6 percent on Thursday after six straight positive sessions. Investors are concerned that going over the cliff could tip the economy back into recession. While a deal is expected to ultimately be reached, a drawn-out debate - like the one seen over 2011's debt ceiling - can erode confidence.


"The markets are not being reactionary right now, though we lost ground yesterday," said Stephen Carl, head equity trader at the Williams Capital Group in New York.


"It doesn't look like anything has been resolved, or is leaning one way or another."


Still, expectations of an eventual agreement have helped the S&P 500 bounce back over the last month, and on Wednesday, the index hit its highest intraday level since late October. For the year, the S&P has advanced more than 12 percent.


The Dow Jones industrial average <.dji> slipped 24.09 points, or 0.18 percent, to 13,146.63. The Standard & Poor's 500 Index <.spx> lost 4.81 points, or 0.34 percent, to 1,414.64. The Nasdaq Composite Index <.ixic> fell 15.50 points, or 0.52 percent, to 2,976.66.


Best Buy Co Inc slid 15.5 percent to $11.93 after the electronics retailer agreed to extend the deadline for the company's founder to make a bid. Shares jumped as much as 19 percent on Thursday after initial reports of a bid this week from founder Richard Schulze.


Consumer prices fell in November for the first time in six months, indicating U.S. inflation pressures were muted. A separate report showed manufacturing grew at its swiftest pace in eight months in December.


Data out of China was encouraging, as Chinese manufacturing grew at its fastest pace in 14 months in December. The news was seen as helping U.S. materials companies, including U.S. Steel , which rose 6.3 percent to $23.73.


(Editing by Bernadette Baum and Jan Paschal)



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Russia says Syrian rebels might win


MOSCOW/BEIRUT (Reuters) - Syrian rebels are gaining ground and might win, Russia's Middle East envoy said on Thursday, in the starkest such admission from a major ally of President Bashar al-Assad in 20 months of conflict.


"One must look the facts in the face," Russia's state-run RIA quoted Mikhail Bogdanov as saying. "Unfortunately, the victory of the Syrian opposition cannot be ruled out."


Bogdanov, a deputy foreign minister and the Kremlin's special envoy for Middle East affairs, said the Syrian government was "losing control of more and more territory" and Moscow was preparing to evacuate Russian citizens if necessary.


Syria has relied on war planes and helicopters to bombard rebel districts but Damascus denied accusations by U.S. and NATO officials that it had fired Scud missiles in recent days.


The foreign ministry said the long-range missiles were not used against "terrorist groups," a term it uses for the rebels, who now hold an almost continuous arc of territory from the east to the southwest of Damascus.


The head of NATO said he thought Assad's government was nearing collapse and the new leader of Syria's opposition told Reuters the people of Syria no longer needed international forces to protect them.


"The horrific conditions which the Syrian people endured prompted them to call on the international community for military intervention at various times," said Mouaz al-Khatib, a preacher who heads Syria's National Coalition.


"Now the Syrian people have nothing to lose. They handled their problems by themselves. They no longer need international forces to protect them," he added in the interview on Wednesday night, accusing the international community of slumbering while Syrians were killed.


He did not specify whether by intervention he meant a no-fly zone that rebels have been demanding for month, a ground invasion - which the opposition has warned against - or arms.


He said the opposition would consider any proposal from Assad to surrender power and leave the country, but would not give any assurances until it saw a firm proposal.


In the latest blow to the government, a car bomb killed at least 16 men, women and children in Qatana, a town about 25 km (15 miles) southwest of Damascus where many soldiers live, activists and state media said.


The explosion occurred in a residential area for soldiers in Qatana, which is near several army bases, said Rami Abdelrahman, head of the pro-opposition Syrian Observatory for Human Rights.


He put the death toll as 17, including seven children and two women. State news agency SANA said 16 people had died.


State television showed soldiers walking by a partly collapsed building, with rubble and twisted metal on the road.


The pro-government Al-Ikhbariya TV said a second car bomb in the Damascus suburb of al-Jadideh killed eight, most of them women and children.


Apart from gaining territory in the outskirts of Damascus in recent weeks, rebels have also made hit-and-run attacks or set off bombs within the capital, often targeting state security buildings or areas seen as loyal to Assad, such as Jaramana, where twin bombs killed 34 people in November.


The Pakistani Foreign Office said security concerns had prompted it to withdraw the ambassador and all Pakistani staff from the embassy in the central suburb of East Mezzeh, a couple miles from the Interior Ministry.


BACK TO THE WALL


With his back to the wall, Assad was reported to be turning ever deadlier weapons on his adversaries.


"I think the regime in Damascus is approaching collapse," NATO Secretary-General Anders Fogh Rasmussen said on Thursday.


Human Rights Watch said some populated areas had been hit by incendiary bombs, containing flammable materials such as napalm, thermite or white phosphorous, which can set fire to buildings or cause severe burns and respiratory damage.


The British-based Syrian Observatory said war planes were bombing rebel-held eastern suburbs of Damascus on Thursday and artillery was hitting Daraya and Moadamiyeh, southwestern areas near the centre where rebels have been fighting for a foothold.


At least 40,000 people have been killed in Syria's uprising, which started in March 2011 with street protests which were met with gunfire by Assad's security forces, and which spiraled into the most enduring and destructive of the Arab revolts.


The United States, European powers and Arab states bestowed their official blessing on Syria's newly-formed opposition coalition on Wednesday, despite increasing signs of Western unease at the rise of militant Islamists in the rebel ranks.


Western nations at "Friends of Syria" talks in Marrakech, Morocco rallied around a new opposition National Coalition formed last month under moderate Islamist cleric al-khatib.


Russia, which along with China has blocked any U.N. Security Council measures against Assad, criticized Washington's decision to grant the coalition formal recognition, saying it appeared to have abandoned any effort to reach a political solution.


Bogdanov's remarks were the clearest sign yet that Russia is preparing for the possible defeat of Assad's government.


"We are dealing with issues of preparations for an evacuation. We have mobilization plans and are clarifying where our citizens are located," Bogdanov said.


A British Foreign Office spokesperson said the Russian position remained largely unchanged but the situation on the ground gave Moscow an interest in finding an agreed solution, even if the chances of such a solution remained slim.


"If Russia's position on Syria had been a brick wall, it is now a brick wall with a crack in it," the spokesperson said.



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Review: PlayStation icons join in ‘Battle Royale’






The holiday season is a good time to catch up with old friends. If you’re an Xbox fan, you’re probably getting reacquainted with galactic warrior Master Chief in his new adventure, “Halo 4.” If you’re a Nintendophile, you’re probably frolicking with Mario on your new Wii U.


Sony, meanwhile, has expanded its holiday guest list to invite nearly two decades worth of characters to mix it up in “PlayStation All-Stars Battle Royale” (for the PlayStation 3, $ 59.99; Vita, $ 39.99). Fans of the original PlayStation can welcome back old pals like Sir Daniel Fortesque of “MediEvil” and the title character of “Parappa the Rapper.” Younger gamers who have only known the PS3 will be happy to see Nathan Drake from “Uncharted” and Cole MacGrath from “Infamous.” Turn them loose in an assortment of game-inspired arenas and you’ve got chaos.






It’s not an original idea: Nintendo has been pitting its lovable characters against each other since 1999′s “Super Smash Bros.” As you’d expect, “All-Stars” lets up to four players choose their favorite personalities and pound on each other until one is left standing.


The technique is a change from most fighting games. Most of the time, kicking or punching your opponent doesn’t do much damage. Instead, each blow adds to an attack meter; build up enough energy and you can unleash three levels of truly deadly moves. There’s a little more strategy, but most players won’t find it too complicated.


The solo campaign is awfully skimpy, but “All-Stars” makes for a lively party when you have a few friends over. Two-and-a-half stars out of four.


— Sony’s burlap-clad goofball Sackboy is part of the “All-Stars” lineup, but he takes center stage in “LittleBigPlanet Karting” ($ 59.99).


Yes, it’s a go-kart racer — a genre that has already made room for Mario, Donkey Kong and Sonic the Hedgehog — but Sony freshens it up by giving you the ability to build your own racetracks and share them online. By exploring the game’s built-in courses, you can find hundreds of elements to add to your own, and they all share the homespun “arts-and-crafts” aesthetic of the original “LittleBigPlanet.”


Unfortunately, “LBP Karting” also revives the weird, floaty physics of its parent. That worked fine in the two-dimensional fantasy world of “LBP,” but it’s annoying when you’re behind the wheel. The tracks are filled with the power-ups, obstacles and gravity-defying leaps you’d expect in a kart racer, but the vehicles themselves feel sluggish and unresponsive. Two stars.


—Insomniac Games’ popular “lombax”-robot buddies are celebrating their 10th anniversary, both in “All-Stars” and their own “Ratchet & Clank: Full Frontal Assault” ($ 19.99). The latter game, however, is a big disappointment, stripping away most of what made the team so endearing.


It’s a “base defense” game, meaning you’re plopped down on a planet and then have to protect your turf from waves of invading enemies. That eliminates the exploration and discovery that made most of the “R&C” games so absorbing, replacing it with a tiresome cycle of building fortifications, having them destroyed, then rebuilding them. Instead of the comedy that was once this series’ trademark, you get drudgery. One star.


___


Follow Lou Kesten on Twitter at http://twitter.com/lkesten


Gaming News Headlines – Yahoo! News


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Lindsey Vonn Reveals Depression Battle






Photo Exclusive








12/13/2012 at 12:45 PM EST



Lindsey Vonn seems to have it all.

As the most decorated skier in U.S. history, Vonn's easy smile and record-decimating athletic career have made her a fixture on podiums, magazine covers and multi-million dollar endorsement deals. But life off the slopes wasn't always so rosy.

In an exclusive interview with PEOPLE, the Olympic gold medalist, 28, discloses that she's quietly suffered from depression for many years and currently takes an anti-depressant to help manage her symptoms.

"Everything about my life seemed so perfect to people. But I struggle like everyone else," Vonn confesses.

At one point in 2008, she says, "I couldn't get out of bed anymore. I felt hopeless, empty, like a zombie."

But these days, Vonn is happier than she's been in a long time. "I feel like I just needed to get everything off my chest," says the ski racer, who filed for divorce late last year from her husband Thomas Vonn, also her longtime manager and coach.

With the winter race season underway – Vonn nabbed her 57th World Cup win on Dec. 8 in St. Moritz, Switzerland – she's hit a new groove.

"All the parts of my life are finally in sync," she says. "I accept who I am, and I'm moving forward."

For the star athlete's exclusive interview and photo shoot, pick up PEOPLE magazine, on newsstands Friday

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Study: People worldwide living longer, but sicker


LONDON (AP) — Nearly everywhere around the world, people are living longer and fewer children are dying. But increasingly, people are grappling with the diseases and disabilities of modern life, according to the most expansive global look so far at life expectancy and the biggest health threats.


The last comprehensive study was in 1990 and the top health problem then was the death of children under 5 — more than 10 million each year. Since then, campaigns to vaccinate kids against diseases like polio and measles have reduced the number of children dying to about 7 million.


Malnutrition was once the main health threat for children. Now, everywhere except Africa, they are much more likely to overeat than to starve.


With more children surviving, chronic illnesses and disabilities that strike later in life are taking a bigger toll, the research said. High blood pressure has become the leading health risk worldwide, followed by smoking and alcohol.


"The biggest contributor to the global health burden isn't premature (deaths), but chronic diseases, injuries, mental health conditions and all the bone and joint diseases," said one of the study leaders, Christopher Murray, director of the Institute of Health Metrics and Evaluation at the University of Washington.


In developed countries, such conditions now account for more than half of the health problems, fueled by an aging population. While life expectancy is climbing nearly everywhere, so too are the number of years people will live with things like vision or hearing loss and mental health issues like depression.


The research appears in seven papers published online Thursday by the journal Lancet. More than 480 researchers in 50 countries gathered data up to 2010 from surveys, censuses and past studies. They used statistical modeling to fill in the gaps for countries with little information. The series was mainly paid for by the Bill & Melinda Gates Foundation.


As in 1990, Japan topped the life expectancy list in 2010, with 79 for men and 86 for women. In the U.S. that year, life expectancy for men was 76 and for women, 81.


The research found wide variations in what's killing people around the world. Some of the most striking findings highlighted by the researchers: — Homicide is the No. 3 killer of men in Latin America; it ranks 20th worldwide. In the U.S., it is the 21st cause of death in men, and in Western Europe, 57th.


— While suicide ranks globally as the 21st leading killer, it is as high as the ninth top cause of death in women across Asia's "suicide belt," from India to China. Suicide ranks 14th in North America and 15th in Western Europe.


— In people aged 15-49, diabetes is a bigger killer in Africa than in Western Europe (8.8 deaths versus 1 death per 100,000).


— Central and Southeast Asia have the highest rates of fatal stroke in young adults at about 15 cases per 100,000 deaths. In North America, the rate is about 3 per 100,000.


Globally, heart disease and stroke remain the top killers. Reflecting an older population, lung cancer moved to the 5th cause of death globally, while other cancers including those of the liver, stomach and colon are also in the top 20. AIDS jumped from the 35th cause of death in 1990 to the sixth leading cause two decades later.


While chronic diseases are killing more people nearly everywhere, the overall trend is the opposite in Africa, where illnesses like AIDS, malaria and tuberculosis are still major threats. And experts warn again shifting too much of the focus away from those ailments.


"It's the nature of infectious disease epidemics that if you turn away from them, they will crop right back up," said Jennifer Cohn, a medical coordinator at Doctors Without Borders.


Still, she acknowledged the need to address the surge of other health problems across Africa. Cohn said the agency was considering ways to treat things like heart disease and diabetes. "The way we treat HIV could be a good model for chronic care," she said.


Others said more concrete information is needed before making any big changes to public health policies.


"We have to take this data with some grains of salt," said Sandy Cairncross, an epidemiologist at the London School of Hygiene and Tropical Medicine.


He said the information in some of the Lancet research was too thin and didn't fully consider all the relevant health risk factors.


"We're getting a better picture, but it's still incomplete," he said.


___


Online:


www.lancet.com


http://healthmetricsandevaluation.org


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Wall Street dips as "fiscal cliff" fears outweigh data

NEW YORK (Reuters) - U.S. stocks fell slightly on Thursday, pulling back from six straight days of gains despite a batch of positive economic releases as "fiscal cliff" negotiations in Washington weighed on sentiment.


Weekly claims for jobless benefits dropped near the lowest level since February 2008 and retail sales rose in November after an October decline, improving the picture for consumer spending.


Best Buy Co shares shot up more than 18 percent after a report that the company's founder is expected to offer to buy the consumer electronics retailer by the end of the week.


Trading was constrained by the drawn-out fiscal talks between Democrats and Republicans. Investors worry that tax hikes and spending cuts set to begin in 2013 if a deal is not reached in Washington will hurt growth. Republican House Speaker John Boehner accused President Barack Obama of "slow-walking" the economy off the fiscal cliff.


"There's a lot of confusion. Nobody knows what's going to happen with the cliff," said Tom Schrader, managing director of U.S. equity trading at Stifel Nicolaus Capital Markets in Baltimore.


Despite the overarching concerns, the S&P 500 has managed gains for six sessions, touching its highest level since October 22 on Wednesday.


"I don't know if there's a lot of anticipation that they're going to get anything done, but the market doesn't seem too worried about it," Schrader said.


The Dow Jones industrial average <.dji> was down 9.35 points, or 0.07 percent, at 13,236.10. The Standard & Poor's 500 Index <.spx> lost 0.88 point, or 0.06 percent, at 1,427.60. The Nasdaq Composite Index <.ixic> rose 3.60 points, or 0.12 percent, at 3,017.41.


A day after the Federal Reserve announced a new round of stimulus for the economy, markets focused on Chairman Ben Bernanke's reiteration that monetary policy would not be sufficient to offset going over the fiscal cliff.


European Union finance ministers reached agreement to make the European Central Bank the bloc's top banking supervisor, which could boost confidence in EU leaders' ability to confront the euro zone's sovereign debt crisis.


CVS Caremark Corp gained 3.0 percent to $48.97 after saying it expects higher earnings in 2013.


Best Buy's stock was trading up $2.09 at $14.27 at midday.


Jobless claims dropped 29,000 to a seasonally adjusted 343,000, indicating healing in the labor market.


(Editing by Kenneth Barry)



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North Korea launches rocket , raising nuclear arms stakes


SEOUL/TOKYO (Reuters) - North Korea successfully launched a rocket on Wednesday, boosting the credentials of its new leader and stepping up the threat the isolated and impoverished state poses to opponents.


The rocket, which North Korea says put a weather satellite into orbit, has been labeled by the United States, South Korea and Japan as a test of technology that could one day deliver a nuclear warhead capable of hitting targets as far away as the continental United States.


"The satellite has entered the planned orbit," a North Korean television news reader clad in traditional Korean garb announced, after which the station played patriotic songs with the lyrics "Chosun (Korea) does what it says".


The rocket was launched just before 10 a.m. (0100 GMT), according to defense officials in South Korea and Japan, and was more successful than a rocket launched in April that flew for less than two minutes.


The North American Aerospace Defense Command (NORAD) said that it "deployed an object that appeared to achieve orbit", the first time an independent body has verified North Korean claims.


North Korea followed what it said was a similar successful launch in 2009 with a nuclear test that prompted the U.N. Security Council to stiffen sanctions that it originally imposed in 2006 after the North's first nuclear test.


North Korea is banned from developing nuclear and missile-related technology under U.N. resolutions, although Kim Jong-un, the youthful head of state who took power a year ago, is believed to have continued the state's "military first" programs put in place by his late father, Kim Jong-Il.


North Korea hailed the launch as celebrating the prowess of all three members of the Kim family to rule since it was founded in 1948.


"At a time when great yearnings and reverence for Kim Jong-il pervade the whole country, its scientists and technicians brilliantly carried out his behests to launch a scientific and technological satellite in 2012, the year marking the 100th birth anniversary of President Kim Il Sung," its KCNA news agency said. Kim Il Sung, the current leader's grandfather, was North Korea's first leader.


The United States condemned the launch as "provocative" and a breach of U.N. rules, while Japan's U.N. envoy called for a Security Council meeting. However, diplomats say further tough sanctions are unlikely from the Security Council as China, the North's only major ally, will oppose them.


"The international community must work in a concerted fashion to send North Korea a clear message that its violations of United Nations Security Council resolutions have consequences," the White House said in a statement.


U.S. intelligence has linked North Korea with missile shipments to Iran. Newspapers in Japan and South Korea have reported that Iranian observers were in the North for the launch, something Iran has denied.


Japan's likely next prime minister, Shinzo Abe, who is leading in opinion polls ahead of an election on Sunday and who is known as a hawk on North Korea, called on the United Nations to adopt a resolution "strongly criticizing" Pyongyang.


A North Korean Foreign Ministry spokesman reiterated that the rocket was a "peaceful project".


"The attempt to see our satellite launch as a long-range missile launch for military purposes comes from hostile perception that tries to designate us a cause for security tension," KCNA cited the spokesman as saying.


"STUMBLING BLOCK"


China had expressed "deep concern" prior to the launch which was announced a day after a top politburo member, representing new Chinese leader Xi Jinping, met Kim Jong-un in Pyongyang.


On Wednesday, its tone was measured, regretting the launch but calling for restraint on any counter-measures, in line with a policy of effectively vetoing tougher sanctions.


"China believes the Security Council's response should be cautious and moderate, protect the overall peaceful and stable situation on the Korean peninsula, and avoid an escalation," Chinese Foreign Ministry spokesman Hong Lei told journalists.


Bruce Klingner, a Korea expert at the Heritage Foundation, said: "China has been the stumbling block to firmer U.N. action and we'll have to see if the new leadership is any different than its predecessors."


A senior adviser to South Korea's president said last week it was unlikely there would be action from the United Nations and Seoul would expect its allies to tighten sanctions unilaterally.


Kim Jong-un, believed to be 29 years old, took power when his father died on December 17 last year and experts believe the launch was intended to commemorate the first anniversary of his death. The April launch was timed for the centennial of the birth of Kim Il Sung.


Wednesday's success puts the North ahead of the South which has not managed to get a rocket off the ground.


"This is a considerable boost in establishing the rule of Kim Jong-un," said Cho Min, an expert at the Korea Institute of National Unification.


There have been few indications the secretive and impoverished state, where the United Nations estimates a third of people are malnourished, has made any advances in opening up economically over the past year.


North Korea remains reliant on minerals exports to China and remittances from tens of thousands of its workers overseas.


Many of its 22 million people need handouts from defectors, who have escaped to South Korea, for basic medicines.


Given the puny size of its economy - per capita income is less than $2,000 a year - one of the few ways the North can attract world attention is by emphasizing its military threat.


It wants the United States to resume aid and to recognize it diplomatically, although the April launch scuppered a planned food deal.


The North is believed to be some years away from developing a functioning nuclear warhead although it may have enough plutonium for about half a dozen nuclear bombs, according to nuclear experts.


It has also been enriching uranium, which would give it a second path to nuclear weapons as it sits on big natural uranium reserves.


"A successful launch puts North Korea closer to the capability to deploy a weaponized missile," said Denny Roy, a senior fellow at the East-West Center in Hawaii.


"But this would still require fitting a weapon to the missile and ensuring a reasonable degree of accuracy. The North Koreans probably do not yet have a nuclear weapon small enough for a missile to carry."


The North says its work is part of a civil nuclear program although it has also boasted of it being a "nuclear weapons power".


(Additional reporting by Jumin Park and Yoo Choonsik in SEOUL; David Alexander, Matt Spetalnick and Paul Eckert in WASHINGTON; Linda Sieg in TOKYO, Sui-Lee Wee and Michael Martina in BEIJING,; Rosmarie Francisco in MANILA; Writing by David Chance; Editing by Raju Gopalakrishnan and Robert Birsel)



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