Japan, U.S. agree on Tokyo joining Trans-Pacific trade talks


 

 

 


Japan's Prime Minister Shinzo Abe delivers a speech during the ruling Liberal Democratic Party (LDP) annual convention in Tokyo March 17, 2013. REUTERS/Toru Hanai
TOKYO/WASHINGTON | Fri Apr 12, 2013 8:37am EDT
(Reuters) - Japan and the United States have agreed on a deal to allow Tokyo to join talks on a U.S.-led Asia-Pacific free trade pact that Prime Minister Shinzo Abe is making a keystone of his strategy to open Japan's economy and spur long-sought growth.
The agreement brings Japan closer to entering talks on the Trans-Pacific Partnership (TPP), which Japan hopes to participate in as early as July.
"Japan and the United States have reached an agreement on Japan's participation in the TPP talks," Abe told reporters on Friday after a meeting with cabinet ministers.
"I think Japan's national interests are protected under this U.S.-Japan agreement," he said, adding he hoped Japan could take part in the negotiations as soon as possible.
In Washington, Acting U.S. Trade Representative Demetrios Marantis said Japan had agreed to "a robust package of actions and agreements" to address U.S. concerns in the automotive, insurance and other sectors.
"As a result, we are pleased to welcome Japan's participation in the TPP negotiations pending a consensus agreement among the current TPP members and the completion of our respective domestic processes," Marantis said.
Still, a key U.S. lawmaker reserved judgment on the deal.
"I will not support Japan's entry into TPP unless we obtain airtight assurances that Japan's participation in the TPP negotiations will neither diminish the comprehensive and ambitious nature of these negotiations nor delay the goal of concluding the negotiations this year," said House of Representatives Ways and Means Committee Chairman Dave Camp, a Michigan Republican.
ABE'S 'THIRD ARROW'
Abe last month announced his decision to join the trade talks - despite fierce opposition from Japan's politically powerful farm lobby - as part of a "third arrow" in his "Abenomics" policy triad, after fiscal spending and drastic monetary policy easing.
Japan needs formal approval by all 11 participating countries to take part in the talks. If Japan does join, the pact would cover an area that accounts for almost 40 percent of world economic output.
The U.S.-Japan agreement allows the White House to give Congress 90-days' notice that it plans to start trade negotiations in time for Japan to participate in a July round of TPP talks.
U.S. labor groups had been worried about the impact of removing U.S. tariffs on autos.
But Tokyo and Washington agreed that the United States would phase out its auto tariffs - 2.5 percent on cars and 25 percent on trucks - over the longest period possible under the future TPP deal, the Japanese government said in a statement.
They also confirmed that certain industrial products were "sensitive" for the United States while certain farm products were "sensitive" for Japan, and agreed to keep talking bilaterally about non-tariff barriers in areas such as insurance and investment, it said.
New Zealand Trade Minister Tim Groser said last month the TPP member nations could formally decide whether to allow Japan into the talks when the 21-member trade officials meet in Indonesia on April 20-21 for the annual meeting of the Asia-Pacific Economic Cooperation forum.
Countries in the trade talks include Canada, Mexico, Australia, Chile, Peru, Singapore, Malaysia, Vietnam and Brunei. The member countries aim to strike a deal by the end of this year.
(Reporting by Kaori Kaneko; Editing by Linda Sieg, Edmund Klamann and Nick Zieminski)

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Exclusive: Brazil's Rousseff to make rare state visit to U.S.

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Exclusive: Brazil's Rousseff to make rare state visit to U.S.

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SAO PAULO - President Dilma Rousseff will make the first formal state visit by a Brazilian leader to the United States in nearly two decades, a diplomatic breakthrough for an emerging power that has clashed with Washington but is hungry for closer ties and recognition of its growing prestige.
 

Exclusive: Brazil's Rousseff to make rare state visit to U.S.

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Brazil's President Dilma Rousseff speaks with reporters during breakfast at the Planalto Palace in Brasilia December 27, 2012. REUTERS/Ueslei Marcelino
SAO PAULO | Thu Apr 11, 2013 4:23pm EDT
(Reuters) - President Dilma Rousseff will make the first formal state visit by a Brazilian leader to the United States in nearly two decades, a diplomatic breakthrough for an emerging power that has clashed with Washington but is hungry for closer ties and recognition of its growing prestige.
The trip will occur later this year, likely in October, officials told Reuters on condition of anonymity because the White House has not yet announced the visit. A White House spokeswoman declined comment.
A state visit, which includes formalities such as a black-tie dinner and a military ceremony upon arrival, is usually reserved for Washington's closest strategic partners.
"It's great news, long overdue," said Paulo Sotero, director of the Brazil Institute at the Wilson Center, a think-tank in Washington. "It shows that the United States really values the relationship, which is what Brazil most wants to hear."
The upgrade in diplomatic ties is likely to rekindle hopes for a long-sought treaty to avoid double taxation on Brazilian and U.S. businesses, as well as the chance for greater commerce between the two largest economies in the Americas.
Bilateral trade totaled about $59 billion last year, but Brazil's economy remains relatively closed to imports and its 200 million-strong population is seen as a big potential growth market for U.S. companies.
The red-carpet reception also will be a political victory for Rousseff, a left-leaning but pragmatic leader who has sought closer relations with the United States but felt snubbed when President Barack Obama did not host a more elaborate welcome during a White House visit in April 2012.
Relations have been cordial, but marked by disagreements.
Latin America's biggest country has been frustrated by a perceived lack of support from Washington as it seeks a permanent seat on the United Nations Security Council and other recognition of its rising influence following an economic boom over the past decade.
PROBLEMS UNDER LULA
Rousseff's predecessor, Luiz Inacio Lula da Silva, angered Washington by blocking hemispheric trade talks and trying to broker a deal to end the global standoff over Iran's nuclear program in 2010, the final year of his presidency.
Rousseff, by contrast, has mostly avoided dealing with Iran, more strongly emphasized human rights in Brazil's foreign relations and also taken a relative distance from Venezuela, Washington's loudest antagonist in Latin America.
Sotero said Obama's visit to Brasilia in March 2011 marked the beginning of a "reset" in relations.
"For a while there was really very little dialogue," Sotero said. "This (state visit) gives me more optimism that we've moved on from that."
It's unclear whether Rousseff will be a more enthusiastic partner on trade than Lula.
Brazil's recent economic slowdown and strained ties with major trading partner Argentina have prompted speculation that Rousseff might be willing to push for greater commercial ties with the United States or European Union.
However, she has also implemented targeted tariff increases to protect Brazilian industries from what she calls a "currency war" being waged by the United States and other rich countries to devalue their currencies for trade purposes.
The last Brazilian president to make a state visit to the United States was Fernando Henrique Cardoso, in 1995.
(Additional reporting by Jeff Mason in Washington; Editing by Paul Simao)

Construction workers to play in first game in new Maracana

MANCHESTER - Construction workers who helped rebuild Brazil's Maracana stadium will play in the first match to be staged there later this month, Rio de Janeiro's Secretary of State for Sport Andre Lazaroni said on Thursday.
Sports, Lifestyle, 11 Apr 2013

Special Report: Rough justice as Brazil tries to right past wrongs to Indians

MARAIWATSEDE, Brazil - Damião Paridzané was nine years old in 1966 when the Brazilian Air Force loaded him and hundreds of other Xavante Indians onto a cargo plane. | Video
Special Reports 10 Apr 2013

Photographer Salgado captures untouched nature in new UK show

LONDON - Brazilian photographer Sebastião Salgado considers the eight years he spent documenting the world's most dramatic landscapes and indigenous communities a small price to pay for his art.
Entertainment, Fashion, Arts, 09 Apr 2013

Brazil's Embraer looks to shock Lockheed with price of cargo jet

RIO DE JANEIRO - Brazilian planemaker Embraer SA is looking to shock rivals with the price of its KC-390 military transport plane when it starts booking firm orders within the next 12 months, according to a senior executive.

Brazil to investigate ex-president Lula in vote-buying scandal

BRASILIA - A Brazilian federal prosecutor has opened an investigation into allegations that former President Luiz Inacio Lula da Silva was involved in a vote-buying scheme in Congress that led to the conviction of close aides for corruption.
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Foreign demand for beef, soybeans adds pressure on Amazon forest

OSLO - Rising foreign demand for beef and soybeans will tempt Brazil to clear more of the Amazon rainforest, in a reversal of recent success in slowing forest losses, a study said on Thursday.
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Foreign demand for beef, soybeans adds pressure on Amazon forest

OSLO - Rising foreign demand for beef and soybeans will tempt Brazil to clear more of the Amazon rainforest, in a reversal of recent success in slowing forest losses, a study said on Thursday.
Environment, 04 Apr 2013

Factbox: Likely candidates in Brazil's 2014 presidential election

SAO PAULO - Brazilian President Dilma Rousseff is a clear favorite to win re-election next year, but a weak economy means she could face a stiff challenge from a range of candidates, including a popular environmentalist and the scion of a local political dynasty.
World, 04 Apr 2013

Exclusive - Pfizer, Novartis, Abbott weigh bids for Brazil's Ache - sources

NEW YORK/LONDON - At least three of the world's top drugmakers are bidding for Brazil's Ache Laboratorios Farmaceuticos in an auction that may value the group at more than $5 billion, people familiar with the matter said.
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Retail sales unexpectedly fall in March

  • Retail sales unexpectedly fall in March
    8:48am EDT
     
     
    A shopper carries bags from Tiffany & Co. jewelers along 5th Avenue in New York City, April 4, 2013. REUTERS/Mike Segar
    WASHINGTON | Fri Apr 12, 2013 8:48am EDT
    (Reuters) - Retail sales contracted in March for the second time in three months, a sign the American economy may have stumbled at the end of the first quarter.
    Retail sales fell 0.4 percent during the month, the Commerce Department said on Friday. That was below analysts' expectations that sales would be flat.
    Readings for retail sales have been volatile so far this year, making it difficult to know whether the weakness in March was due to a tax hike that went into effect at the start of the year or to temporary factors related to the weather.
    Retail sales advanced 1 percent in February, according to revised readings from the government.
     
    Stripping out cars, gasoline and building materials, sales fell 0.2 percent in March. This core measure corresponds closely with the consumer spending component of gross domestic product. The government revised lower past core retail sales figures to show a 0.3 percent gain in February and flat sales in January.
    Prior reports on retail sales had made consumers look surprisingly resilient despite tax increases that kicked in on January 1. A tax on payrolls climbed for all workers, while income tax rates rose for the nation's most wealthy.
    Fiscal policy tightened further in March when the federal government began across-the-board spending cuts, part of Washington's efforts to shrink the budget deficit.
    Non-partisan researchers in the U.S. Congress estimate Washington's austerity drive will subtract about 1.5 percentage points from economic growth this year.
    Many economists have also noted the loss of economic momentum in many economic indicators for March could have been due to a warm winter which may have led companies and consumers to pull forward spending.
    Indicators from retail sales and hiring to factory manager confidence were much stronger in February, and a chilly March may have dulled activity.
    It is also plausible that economic reports have not accurately adjusted for the shift in timing for the Easter holiday, which fell in March of this year after falling in April of 2012.
    The weakness in March retail sales was broad based, with car sales down 0.6 percent and receipts from electronics and appliance stores down 1.6 percent. Sales at clothing stores rose just 0.1 percent.
    (Reporting by Jason Lange; Editing by Neil Stempleman)
     

U.S. will never accept a nuclear-armed North Korea: Kerry (Video)

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U.S. will never accept a nuclear-armed North Korea: Kerry

SEOUL - U.S. Secretary of State John Kerry dismissed as "unacceptable by any standard" weeks of bellicose warnings of impending nuclear war by North Korea and said Washington would never accept the reclusive state becoming a nuclear power. | Video

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REFILE - QUALITY REPEAT South Korean President Park Geun-Hye (L) and U.S. Secretary of State John Kerry shake hands before their talks at the presidential Blue House in Seoul April 12, 2013. REUTERS-Kim Jae-Hwan-Pool
SEOUL | Fri Apr 12, 2013 8:07am EDT
(Reuters) - U.S. Secretary of State John Kerry dismissed as "unacceptable by any standard" weeks of bellicose warnings of impending nuclear war by North Korea and said Washington would never accept the reclusive state becoming a nuclear power.
Kerry, addressing reporters after talks with South Korean President Park Geun-hye and leaders of the 28,000-strong U.S. military contingent in the country, also said the United States would defend its allies in the region if necessary.
 
"The rhetoric we are hearing from North Korea is simply unacceptable by any standard," Kerry said. "We are all united in the fact that North Korea will not be accepted as a nuclear power."
North Korea has issued weeks of shrill warnings to the United States and South Korea, including of waging thermonuclear war, after the imposition of new U.N. sanctions in response to its third nuclear arms test in February.
Kerry's visit coincides with preparations for the anniversary on Monday of North Korean state founder Kim Il-sung's birth date, a possible pretext for a military show of strength.
Speculation has mounted that Pyongyang may launch a medium-range missile after reports in South Korea and the United States that missiles had been moved into suitable locations.
Kerry said North Korean leader Kim Jong-un would be making a "huge mistake" if he proceeded with a launch.
He also said that China, the North's sole diplomatic and financial ally, has the ability to make a difference on influencing North Korea's policies.
Hours before his arrival, a U.S. government agency said North Korea had a nuclear weapon it can mount on a missile, adding an ominous dimension to discussions in Seoul.
However, the assessment by the Pentagon's Defense Intelligence Agency (DIA) was swiftly dismissed by several U.S. officials and South Korea.
Asked if war was imminent, a U.S. official in South Korea said: "Not at all".
YOUTH, INEXPERIENCE
Washington's greatest concern, the official said, was the possibility of unexpected developments linked to 30-year-old Kim Jong-un.
"Kim Jong-un's youth and inexperience make him very vulnerable to miscalculation. Our greatest concern is a miscalculation and where that may lead," said the official, who spoke on condition of anonymity.
"We have seen no indications of massive troop movements, or troops massing on the border, or massive exercises or anything like that that would back up any of the rhetoric that is going on."
Park, meeting officials from her ruling Saenuri Party before her talks with Kerry, struck a conciliatory note by suggesting Seoul should at least listen to what North Korea had to say.
"We have a lot of issues, including the Kaesong industrial zone," local media quoted her as saying. So should we not meet with them and ask: "Just what are you trying to do?'"
The president was referring to North Korea's closure this week of the jointly run Kaesong industrial park, with the loss of 53,000 jobs.
In Washington, Republican Representative Doug Lamborn quoted the DIA as saying it had concluded with "moderate confidence" that North Korea had developed a nuclear bomb that could be fitted on a ballistic missile, but added such a weapon would probably be unreliable.
North Korea has conducted three nuclear tests, but it was not believed to be near weapons capability.
In Pyongyang, Rodong Sinmun, the mouthpiece of the ruling Workers' Party, said North Korea would never abandon its nuclear weapons program, made necessary by the "invariable ambition of the U.S. to militarily invade" North Korea.
South Korea's Defence Ministry maintained it did not believe North Korea could mount a nuclear warhead on a missile.
Despite the DIA report, the Pentagon's spokesman and the U.S. national intelligence director both said it was "inaccurate" to infer Pyongyang had the proven ability to launch a nuclear missile.
The DIA was criticized after the start of the Iraq war in 2003 for being too bullish in predicting Baghdad might have weapons of mass destruction.
Its conclusion about North Korea follows more than a month of rising tension on the Korean peninsula.
Asked about the U.S. reports that Pyongyang may have developed a nuclear weapon, Chinese Foreign Ministry spokesman Hong Lei said: "China upholds the maintenance of peace and stability on the Korean peninsula and pushing for its denuclearization via talks and consultations. No matter what changes there are in the situation, we will uphold this direction."
U.N. sanctions sparked a furious response from Pyongyang. The North has also called annual military drills between U.S. and South Korean forces a "hostile" act.
North Korea has stationed as many as five medium-range missiles on its east coast, according to defense assessments by Washington and Seoul. South Korean and U.S. officials believe it is preparing to launch a Musudan missile, whose range of 3,500 km (2,100 miles) or more would put Japan within striking distance and may threaten Guam, home to U.S. military bases.
(Additional reporting by Jack Kim and Daum Kim in SEOUL, Sui-Lee Wee in BEIJING, John Ruwitch in SHANGHAI, and Patricia Zengerle, Mark Hosenball and Jeff Mason in Washington; Writing by Ronald Popeski; Editing by Nick Macfie)

SKorea President Urges Talks With North Amid Missile Tension, SKorea President Urges Talks

PHOTO: In this April 10, 2013 photo, U.S. Air Force F-16 fighter jets prepare to take off from a runway during their military exercise at the Osan U.S. Air Base in Osan, South Korea.
Ahn Young-joon/AP Photo
Full Story | Related:
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    Amid Missile Tension, SKorea President Urges Talks

    PHOTO: In this April 10, 2013 photo, U.S. Air Force F-16 fighter jets prepare to take off from a runway during their military exercise at the Osan U.S. Air Base in Osan, South Korea.
    In a surprise change of tone, South Korean President Park Geun-hye offered to open talks with North Korea in an effort to calm down the heated tensions on the Korean Peninsula.
    "We must activate the trust process of Korean Peninsula," the president said at a dinner meeting with lawmakers of the National Assembly's committee in charge of foreign policy and unification affairs. "We will engage in talks." In the past she has maintained that no talks could take place unless the North gave up its nuclear program, which is also the U.S. line.
    The president said South Korea and the U.S. have held the "same policies with one voice" in line with the spirit of "strongest allies" especially when it comes to dealing with the North.
    But sources close to the presidential office in Seoul are concerned that Thursday's "olive branch" was made without consulting with the U.S.
    Secretary of State John Kerry is headed to Seoul on Friday for talks with South Korean officials on the tensions.
    "Talk or no talk, the problem is that the sudden softness might come as a surprise to the secretary (Kerry) who's already on his way," said Ken Choi, a senior editor at South Korea's Chosun Ilbo newspaper. "This could send a wrong message to North Korea, as if there's a rift between the two allies."
    Kerry has just wrapped up a foreign ministers' G-8 meeting in London at which they condemned North Korea's aggressive rhetoric and the development of its nuclear missile programs, saying that Pyongyang's recent actions threaten international security.
    "G-8 foreign ministers condemned in the strongest possible terms the continued development of its nuclear weapons and ballistic missile programs by the Democratic People's Republic of Korea," the ministers said in a statement.
    "Even if the situation is difficult, the 'process' of trust on Korean Peninsula must continue," said the South Korea president. Earlier she also encouraged the latest medical aid shipped to North Korea by a private South Korean organization. "The humanitarian aid to North Korea will continue," she said.
    Also on Thursday, South Korean Minister of Unification held a press conference encouraging North Korea to come out and talk about what they want.
    "It's gone too far. We all needed an outlet that could drop the level of tensions. Good move," said Kim Yong-hyun, Professor of North Korean Studies at Dongkuk University in Seoul.
    The South's Unification Minister Ryoo Kihl-jae urged Pyongyang to cool down, engage in dialogue and reverse its decision to suspend operations of a joint industrial park just north of their shared border.
    "We strongly urge North Korea not to exacerbate the crisis on the Korean peninsula," Ryoo said.
    South Korea Bracing for North Korean Missile Test Watch Video
    North Korea Prepares to Launch Missile Watch Video
    North Korea's Possible Missile Test Has South on High Alert Watch Video
    Surveillance has shown that Pyongyang is ready to launch its untested mid-range Musudan missile anytime soon, putting armed forces in Seoul and Tokyo together with American troops in Northeast Asia on high alert.
    South Korea's Defense Ministry confirmed Seoul has deployed three naval destroyers, an early warning surveillance aircraft and a land-based radar system.
    RELATED: South Korea Bracing for North Korean Missile Test 'Anytime Soon'
    The U.S. now has sea-based radars to track just-launched missiles. The SBX radar that looks like a large golf-ball mounted on a floating oil rig "has been deployed to the Pacific for an operational missile defense mission. It's up and running and active," a U.S. official told ABC News.
    In Tokyo, Prime Minister Shinzo Abe reassured citizens the government had stepped up intelligence gathering efforts, amid growing signs of a ballistic missile launch.
    Kyodo News, citing an unnamed defense official, reported the missile launcher in North Korea had moved into firing position with its rockets facing upward in a "raised position." Chief Government Spokesman Yoshihide Suga refused to address the report at his daily press briefing, only saying "there are various moves."
    "It is extremely regrettable that North Korea has repeated provocative acts against the international community that we can say are at unforgivable levels," Abe said, according to Kyodo.
    Patriot missile batteries remained parked at Defense Ministry headquarters in Tokyo, ready to shoot down any missile that threatened Japan. Nearby at the Ichigaya train station, it was business as usual, though commuters quietly expressed unease about tensions on the Korean peninsula.
    "We are amateurs. We have no idea how accurate those missiles are, so I can't help but worry," said Hyuga Tsuchiya, a high school student.
    Tsuchiya added, he was concerned about Japan's ability to respond to a potential strike, saying he did not believe the country's Self Defense Forces were properly equipped, militarily.
    "They are right there, on the other side of the Sea of Japan," said Setsuko Fukuhara. "Our lives seem so normal inside [Japan], but there are a lot of problems lurking close by. It's really scary."
    In a sign of increasing jitters, an air traffic control center in Fukuoka erroneously sent out a nationwide alert Thursday afternoon, saying North Korea had launched a ballistic missile, according to NHK. The message prompted airports to warn pilots nearby to "be aware" of a missile, though the mistake was corrected minutes later. The Ministry of Land, Infrastructure, and Transport, which oversees the center told NHK, there have been no reports of the false alarm affecting flights, so far.
    Yesterday, a false tweet posted to the account of Yokohama's disaster management office, sent officials scrambling. The tweet, sent out to 39,000 plus followers, said "North Korea has launched a ballistic missile," and stayed up for 20 minutes before employees deleted it. Officials were forced to issue a public apology.
    Inside Pyongyang, though, the mood was festive ahead of its founder Kim Il-sung's 101th birthday April 15. Its state television reported congratulatory foreign delegations arriving in Pyongyang, a twist after they warned all foreigners in both North and South Korea to evacuate because they could not guarantee safety in case of an imminent war that the United States and South Korea are to be blamed for.
    Foreign diplomats stationed in Pyongyang described the situation there as "normal" despite the North Korean government ratcheting up its threats against South Korea and the United States.
    RELATED: North Korea Warns Foreigners to Get Out
    Of the nearly two dozen embassies in Pyongyang contacted by ABC News, only 11 answered the phone and most of them declined to comment, citing instructions from their governments not to speak with reporters amid heightened diplomatic sensitivities.
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Israel Offers to Deport Frail Palestinian Prisoner


Israel Offers to Deport Frail Palestinian Prisoner


An official says Israel has offered to deport a hunger-striking Palestinian prisoner to Europe or a U.N. member country in an effort to reach a compromise over the case.
However, Samer Issawi's lawyer, Jawad Bulous, says he refuses to be deported.
The Israeli official says the prime minister's office made the offer after E.U. and U.N. officials expressed concern about Issawi's health. The official spoke on condition of anonymity in line with regulations.
A spokesman for the E.U. in Israel, David Kriss, says it didn't receive an official offer.
Issawi was sentenced to 26 years prison for attacks on Israelis. He was released as part of a 2011 deal, but Israel later accused him of militant activity and rearrested him.
Israel has reached similar deals before to deport prisoners.
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JPMorgan Shows Strength in Quarter

JPMorgan Shows Strength in Quarter 

JPMorgan Shows Strength in Quarter

A vote is planned on whether Jamie Dimon should keep the chief and chairman titles.Jacquelyn Martin/Associated PressJamie Dimon, chief executive and chairman of JPMorgan Chase.
JPMorgan Chase, the nation’s largest bank, reported a 33 percent rise in first-quarter earnings on Friday, bolstered by gains in the investment banking business and a surge in mortgage lending.
“All our businesses had strong performance, and our client franchises did exceptionally well,” Jamie Dimon, the bank’s chief executive, said in a statement.
As the economy recovers slowly, demand for loans remained stagnant. JPMorgan said total loans at the bank fell 1 percent. Yet gains from investment banking allowed JPMorgan to record 12 consecutive quarters of profit.
Within the investment banking unit, assets grew by 8 percent to $19.3 trillion for the first quarter. Fees rose 4 percent, to $1.4 billion.
The net earnings of $6.5 billion, or $1.59 a share, exceeded Wall Street analysts’ expectations of $5.41 billion, or $1.40 a share. Revenue was $25.8 billion, compared with $26.8 billion in the same period a year earlier.

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The report kicked off the bank earnings season. As the nation’s largest bank by assets, JPMorgan is often looked at as a bellwether.
A bright spot for JPMorgan’s earnings was mortgage lending, fueled in part by federal programs that have helped damp interest rates. Those low rates have prompted homeowners to refinance. In total, the mortgage banking group posted a profit of $673 million for the first quarter, down 31 percent from a year earlier.
Mortgage originations rose 37 percent in the quarter, to $52.7 billion.
“We are seeing positive signs that the economy is healthy and getting stronger,” Mr. Dimon said. “Housing prices continued to improve, and new home purchases are also starting to come back.
The bank’s credit card business also improved, with sales volume rising to $94.7 billion, an increase of 9 percent from the same quarter a year earlier, but down 7 percent from last quarter. Auto lending also grew by 12 percent from a year earlier to $6.5 billion.
The results point to some of the larger challenges facing the nation’s biggest banks. As low interest rates continue to undercut profits, banks like JPMorgan are under pressure to cut expenses.
JPMorgan said on Friday that its total head count continued to fall, reaching 255,898.
The bank has pinned some of its hopes for future profitability on its asset management business, as profits from riskier businesses like trading get undercut by a spate of new regulation. The asset management business reported net income of $487 million for the quarter, up 26 percent from a year earlier.
JPMorgan continued to gain business in private banking, accumulating $2.2 trillion in assets under management, up 8 percent from a year earlier.
Another quarter of earnings offers JPMorgan another chance to move beyond the multibillion-dollar trading loss that has dogged the bank. During the bank’s quarterly earnings call in January, for example, Mr. Dimon said that the latest quarter signaled the end of the trading debacle. “We are getting near the end of it,” he said.
Since announcing the trading loss last May, JPMorgan and its influential chairman, Mr. Dimon, have struggled to reassure skittish investors and defray a series of federal investigations related to the bungled wagers on complex-credit derivatives. Mr. Dimon has testified before Congress, vastly reshuffled its executive ranks and fortified risk controls. In January, JPMorgan’s board slashed Mr. Dimon’s compensation by 50 percent to $11.5 million.
More recently, Senator Carl Levin, Democrat of Michigan, grilled current and former senior executives at the bank about lax oversight policies and gulfs in risk management. The Congressional hearing, which lasted for nearly four hours, renewed pressure on Mr. Dimon and the bank. At times, senior executives floundered as they tried to combat lawmakers’ accusations that the officials misled investors and regulators about the soured bet. The hearing came just a day after a scathing 300-page report into the losses.
Mr. Dimon has struck a more contrite tone, seemingly chastened by the continued fallout from the trading losses. In his annual letter to shareholders, released on Wednesday, Mr. Dimon repeatedly apologized for the losses. He described the losses as the “the stupidest and most embarrassing situation I have ever been a part of,” vowing to continue to bolster risk controls and rout out problems.
Rather than taking a combative tone toward regulations that rein in Wall Street, Mr. Dimon expressed regret for how the trading losses “let our regulators down.”
In his letter, Mr. Dimon also warned shareholders that the bank would continue to face regulatory challenges in the “coming months.” JPMorgan, Mr. Dimon said, will deploy resources to improve firmwide controls on risk and compliance. “We are reprioritizing our major projects and initiatives,” he said.
The earnings on Friday come just a month before JPMorgan’s annual shareholder meeting, where the results of a crucial vote will be announced. Shareholders will decide whether to strip Mr. Dimon of his chairman title, a role he has held since 2006. Ahead of the nonbinding vote, JPMorgan has been working behind the scenes to make their case to shareholders that Mr. Dimon should keep the dual roles.
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Nuclear Missile Is in Reach for N. Korea, Pentagon Says



Nuclear Missile Is in Reach for N. Korea, Pentagon Says

A report by the Pentagon’s intelligence arm concluded North Korea has learned to make a nuclear weapon small enough to be carried by a missile, but cautioned its “reliability will be low.”
In Seoul, Kerry Issues Rebuke of North Korea

Pentagon Says Nuclear Missile Is in Reach for North Korea

WASHINGTON — A new assessment by the Pentagon’s intelligence arm has concluded for the first time, with “moderate confidence,” that North Korea has learned how to make a nuclear weapon small enough to be delivered by a ballistic missile.
Mark Wilson/Getty Images
From left, Robert S. Mueller III of the F.B.I.; James R. Clapper Jr. of national intelligence; and John O. Brennan of the C.I.A. appeared before a House intelligence committee on Thursday on Capitol Hill.
Do You Live Near the Korean Peninsula?
With the escalating provocation by North Korea, The New York Times is interested in hearing from residents of the Korean peninsula, Japan, China and the region.
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Readers’ Comments

"North Korea is playing a dangerous game, not vis-a-vis the US but with regard to China. The latter appears to be tiring of the Kim family's antics and could well end up abandoning the North."
The assessment by the Defense Intelligence Agency, which has been distributed to senior administration officials and members of Congress, cautions that the weapon’s “reliability will be low,” apparently a reference to the North’s difficulty in developing accurate missiles or, perhaps, to the huge technical challenges of designing a warhead that can survive the rigors of flight and detonate on a specific target.
The assessment’s existence was disclosed Thursday by Representative Doug Lamborn, Republican of Colorado, three hours into a budget hearing of the House Armed Services Committee with Defense Secretary Chuck Hagel and the chairman of the Joint Chiefs of Staff, Gen. Martin E. Dempsey. General Dempsey declined to comment on the assessment because of classification issues.
But late Thursday, the director of national intelligence, James R. Clapper Jr., released a statement saying that the assessment did not represent a consensus of the nation’s intelligence community and that “North Korea has not yet demonstrated the full range of capabilities necessary for a nuclear armed missile.”
In another sign of the administration’s deep concern over the release of the assessment, the Pentagon press secretary, George Little, issued a statement that sought to qualify the conclusion from the Defense Intelligence Agency, which has primary responsibility for monitoring the missile capabilities of adversary nations but which a decade ago was among those that argued most vociferously — and incorrectly — that Iraq had nuclear weapons.
“It would be inaccurate to suggest that the North Korean regime has fully tested, developed or demonstrated the kinds of nuclear capabilities referenced in the passage,” Mr. Little said.
A spokesman for the South Korean Defense Ministry, Kim Min-seok, said early Friday that despite various assessments. “we have doubt that North Korea has reached the stage of miniaturization.”
Nonetheless, outside experts said that the report’s conclusions could explain why Mr. Hagel has announced in recent weeks that the Pentagon was bolstering long-range antimissile defenses in Alaska and California, intended to protect the West Coast, and rushing another antimissile system, originally not set for deployment until 2015, to Guam.
Also Thursday, Mr. Clapper sought to tamp down fears that North Korean rhetoric could lead to an armed clash with the United States, South Korea and regional allies, and a high South Korean official called for dialogue with North Korea.
Mr. Clapper told a hearing of the House Intelligence Committee that in his experience, two other confrontations with the North — the seizure of the Navy spy ship Pueblo in 1968 and the death of two military officers in a tree-cutting episode in the demilitarized zone in 1976 — stoked much greater tensions between the two countries. The statement by the South Korean official, Unification Minister Ryoo Kihl-jae, was televised nationally, and it represented a considerable softening in tone by President Park Geun-hye’s government.
Secretary of State John Kerry, meanwhile, was scheduled to arrive in Seoul on Friday and to travel to China and Japan after that. He has two principal goals on the last leg of a six-nation trip: to encourage China to use its influence to persuade North Korea to abandon its nuclear weapons program while reassuring South Korea and Japan that the United States remains committed to their defense.
The report issued by the Defense Intelligence Agency last month was titled “Dynamic Threat Assessment 8099: North Korea Nuclear Weapons Program.” Its executive summary reads: “D.I.A. assesses with moderate confidence the North currently has nuclear weapons capable of delivery by ballistic missiles; however the reliability will be low.”
A spokesman for Mr. Lamborn, Catherine Mortensen, said the material he quoted during the hearing was unclassified. Pentagon officials said later that while the report remained classified, the one-paragraph finding had been declassified but not released. Republicans in Congress have led efforts to increase money for missile defense, and Mr. Lamborn has been critical of the Obama administration for failing to finance it adequately.
North Korea has conducted three nuclear tests, including one this year, and shot a ballistic missile as far as the Philippines in December. American and South Korean intelligence agencies believe that another test — perhaps of a midrange missile called the Musudan that can reach Japan, South Korea and almost as far as Guam — may be conducted in the coming days, to celebrate the birth of Kim Il-sung, the country’s founder. At the Pentagon, there is particular concern about another missile, yet untested, called the KN-08, which may have significantly longer range.
“North Korea has already demonstrated capabilities that threaten the United States and the security environment in East Asia,” Mr. Clapper told the House Intelligence Committee.
He added that “we believe Pyongyang has already taken initial steps” toward fielding what he called a “road-mobile intercontinental ballistic missile.” He appeared to be referring to the KN-08, provided to North Korea by a Russian company and based on the design of a Russian submarine-launched nuclear missile.
Mr. Clapper referred to “extremely belligerent, aggressive public rhetoric towards the United States and South Korea” by the North’s young president, Kim Jong-un. And he made it clear that getting inside Mr. Kim’s head, and understanding his goals, had been particularly frustrating.
He suggested that while Mr. Kim’s grandfather and father had clear motives — to periodically threaten the world with nuclear crises, then wait to get paid in cash, food or equipment to lower the rhetoric — the younger Mr. Kim apparently intended to demonstrate both to North Koreans and to the international community that North Korea deserves respect as a nuclear power.
“His primary objective is to consolidate, affirm his power,” Mr. Clapper told the House committee, adding that “the belligerent rhetoric of late, I think, is designed for both an internal and an external audience.”
Asked if the North Korean leader had an “endgame,” Mr. Clapper said, “I don’t think, really, he has much of an endgame other than to somehow elicit recognition from the world and specifically, most importantly, the United States, of North Korea as a rival on an international scene, as a nuclear power, and that that entitles him to negotiation and to accommodation, and presumably for aid.”
Other officials have said, in background interviews, that Mr. Kim is trying to get North Korea into the same position as Pakistan: an acknowledged nuclear power that the West has given up hopes of disarming.
Mr. Clapper appeared with the heads of several other intelligence agencies, including Lt. Gen. Michael T. Flynn of the Defense Intelligence Agency; the F.B.I. director, Robert S. Mueller III; and the C.I.A. director, John O. Brennan, to present their annual assessment of the threats facing the nation. The same officials briefed the Senate Intelligence Committee last month.
Even as they sought to explain the North Korean leader’s recent bellicose threats, which have prompted American and South Korean troops to increase alert levels, Mr. Clapper and other top intelligence officials acknowledged that United States spy agencies do not know much about Mr. Kim.
“Kim Jong-un has not been in power all that long, so we don’t have an extended track record for him like we did with his father and grandfather,” Mr. Brennan said. “That’s why we are watching this very closely and to see whether or not what he is doing is consistent with past patterns of North Korean behavior.”
Mr. Clapper added that with such little information on Mr. Kim, “there’s no telling how he’s going to behave.”
“He impresses me as impetuous, not as inhibited as his father became about taking aggressive action,” he added. “The pattern with his father was to be provocative and then to sort of back off. We haven’t seen that yet with Kim Jong-un.”
As for what might change the North’s posture, Mr. Clapper pointed to China’s new leadership. “I think probably if anyone has real leverage over the North Koreans, it is China,” he said.

Michael R. Gordon contributed reporting from Manas, Kyrgyzstan, and Choe Sang-hun from Seoul.
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North Korea Heightens Nuclear Tensions

U.S. Defense Against North Korea
The Times’s David E. Sanger on how the Obama administration is reacting to North Korea’s nuclear maneuvers.

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