SARAJEVO | Fri Jan 11, 2013 10:06am EST

SARAJEVO (Reuters) - Bosnia's war crimes court jailed a former Serb police officer for 20 years on Friday for his role in the 1995 mass killing of Muslims in Srebrenica, the worst atrocity on European soil since World War Two.

Bozidar Kuvelja, 41, was found guilty of crimes against humanity but cleared of genocide.

The court has jailed more than 20 former Bosnian Serb soldiers and police officers over the Srebrenica massacres in which some 8,000 Muslim men and boys were killed and dumped in mass graves.

"Kuvelja is convicted of taking part in the persecution and forced removal of Bosniaks (Bosnian Muslims) from Srebrenica on religious and ethnic grounds and the killing of several dozen detainees at a warehouse in nearby Kravica between July 11 and July 14," presiding judge Jasmina Kosovic said.

Kosovic said the panel of judges could not conclude beyond reasonable doubt that Kuvelja knew of the genocidal intent of the principal perpetrators of the massacres.

Declared a "safe haven" by the United Nations, Srebrenica in eastern Bosnia fell to Bosnian Serb forces under General Ratko Mladic towards the end of the 1992-95 was, in which about 100,000 people died.

Mladic and his wartime political master, Radovan Karadzic, are standing trial at the U.N. war crimes tribunal in The Hague, on charges that include genocide in Srebrenica.

Kuvelja was an officer in the special police brigade of the Jahorina Training Centre, part of the Bosnian Serb Interior Ministry. He was accused of helping round up Bosnian Muslim civilians, dividing men from women and transporting detainees to dozens of execution sites, including a warehouse in Kravica.

In Kravica, Kosovic said, "members of Kuvelja's brigade fired from automatic weapons and threw hand grenades into the packed warehouse."

Around 100 who initially survived the assault were lured out for medical treatment, only to be fired on again by Kuvelja's brigade while forced to sing nationalist Serbian songs, the judge said. (Reporting By Maja Zuvela; Editing by Angus MacSwan)

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Guests are silhouetted at the launch event of Windows 8 operating system in New York, October 25, 2012.

LAS VEGAS | Thu Jan 10, 2013 9:28pm EST

LAS VEGAS (Reuters) - Holiday-season sales of personal computers fell for the first time in more than five years, according to tech industry tracker IDC, as Microsoft Corp's new Windows 8 operating system failed to excite buyers and many instead opted for tablet devices and smartphones.

The slump caps a miserable year for PC makers such as Hewlett-Packard Co, Lenovo Group and Dell Inc, which saw the first annual decline for more than a decade with no immediate signs of relief.

It underscores an unspectacular launch for the latest version of the Windows franchise, which Microsoft is banking on to fight off incursions into the PC arena by touch-friendly devices such as Apple Inc's iPad.

"The sense is that until Windows 8 is fully installed and prices start to come down, we will be in this state of negative dynamics in the PC market," said Aaron Rakers, an analyst at Stifel, Nicolaus & Co.

Still, analysts warn against counting out Windows 8 -- the most radical change in the operating system in 20 years -- as consumers grow more comfortable with its tile-based interface and touch features.

In the past, a new operating system from Microsoft tended to stimulate a spurt of PC sales, but PC makers simply did not get enough attractive machines into the market, said IDC.

"Lost in the shuffle to promote a touch-centric PC, vendors have not forcefully stressed other features that promote a more secure, reliable and efficient user experience," said Jay Chou, senior research analyst at IDC.

This year could be better, he suggested, even in the face of talk about the death of the PC as tablets are on track to outsell full-featured machines for the first time in the United States.

"As Windows 8 matures, and other corresponding variables such as Ultrabook pricing continue to drop, hopefully the PC market can see a reset in both messaging and demand in 2013," said Chou.

PC makers sold 89.8 million units worldwide in the fourth quarter of last year, down 6.4 percent from the same quarter of 2011. That was slightly worse than expected by most, and the worst performance for more than five years, when the global economy shuddered to a halt and ushered in the worst recession since World War II.

For all of 2012, 352 million PCs were sold, down 3.2 percent from 2011. That was the first annual decline since 2001, according to IDC, in the wake of the tech stock crash and the September 11 attacks.

IDC is forecasting a meager 2.8 percent growth in PC sales for 2013.

"There's a lack of compelling reasons to upgrade," said Ashok Kumar, an analyst At Maxim Group, who said people are now waiting up to 10 years to replace computers rather than five in the past.

"Increases in performance have been smaller and there are fewer new applications that require more computing horsepower," he said. "In developing markets, the first purchase is not a PC, it's a smartphone, especially in markets where literacy levels are low."

NO MIRACLES AT CES

The numbers are bad news for Microsoft, which still provides the underlying software for nine out of 10 PCs but is suffering as Apple's iPad and other tablets eat away at the cheap end of the PC market.

Touch-friendly Windows 8 and Microsoft's own Surface tablet were designed to counter that shift, but the radical new-look software has not gripped consumers' imaginations.

"Windows 8 wasn't going to be as big a catalyst," said Shaw Wu, analyst at Sterne Agee. "It's so different, it's almost uncomfortably different from past Windows, and there's a risk that Windows 8 ends up like Vista."

Windows Vista, released worldwide in 2007, was Microsoft's least popular operating system with users in recent years.

Microsoft pulled out of the Consumer Electronics Show in Las Vegas this year, vacating its usual sprawling display area, but PC makers such as Asustek, LG Electronics and Samsung Electronics filled the gap with a dizzying array of big screen computers, lightweight laptops, tablets and combinations of those, all running Windows 8.

Many of the new models attracted jostling crowds on the show floor, like Panasonic Corp's 20-inch ultra-high-definition tablet and Razer's dedicated Edge tablet for PC gamers.

But none was hailed a show-stopper that might single-handedly turn around the fortunes of Windows.

"No single device will spur sales, it will take time for consumers to learn that Windows 8 even exists. CES will do little to change that," said Sarah Rotman Epps, an analyst for tech research firm Forrester. "Windows 8 is going to be a slow ramp, regardless of hardware quality."

Microsoft says it feels good about the progress of Windows 8, as sales hit 60 million this week after 10 weeks on the market. That is in line with Windows 7 three years ago, and well ahead of Vista, which took 100 days to reach 40 million sales.

Tami Reller, chief financial officer of Microsoft's Windows unit, said sales of Windows 8 PCs may have been held back by shortages of the most popular touch-screen machines.

"The level of demand I think surprised a lot of people. And frankly, the supply was too short," said Reller at an analyst presentation at CES this week.

Microsoft is looking to juice that demand further this month with its new Surface with Windows 8 Pro, a tablet running an Intel processor that is fully compatible with Office and traditional PC programs, unlike the first Surface it launched last year based on an ARM Holdings-designed chip.

Despite that bullishness, analysts have been edging down their earnings expectations for Microsoft lately.

"Win 8 is disappointing, the PC market will remain weak for awhile and margins are likely capped," said Morgan Stanley analyst Adam Holt on Thursday, as he downgraded the stock to 'equal-weight' from 'overweight'.

Investors are also nonplussed, driving Microsoft's shares down neraly 20 percent since last March, even as the Standard & Poor's 500 has marched upward to a five-year high this week. The shares are down 6 percent since the launch of Windows 8 on October 26.

(Additional reporting by Poornima Gupta, Miyoung Kim, Timothy Kelly, Sinead Carew and Noel Randewich in Las Vegas, and Alistair Barr and Alexei Oreskovic in San Francisco.; Editing by Gary Hill and Steve Orlofsky)

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Christopher Marinello, executive director at the Art Loss Register in London, holds Henri Matisse's painting ''Le Jardin'' in this handout photo.

STOCKHOLM | Mon Jan 7, 2013 12:47pm EST

STOCKHOLM (Reuters) - A British art sleuth has recovered a painting by French artist Matisse that was stolen from a Stockholm museum 25 years ago.

Matisse's "Le Jardin", valued at about 6 million crowns ($916,200), was recovered by Christopher Marinello, an art recovery specialist at the Art Loss Register in London.

"It is fantastic that the painting has turned up again," said Kristin Ek, spokeswoman for the Moderna Museet in Stockholm. "It was stolen so long ago that really we had almost given up hope."

The painting was stolen in May, 1987 when a thief smashed his way into the museum with a sledgehammer during the night.

The theft was reported to both Interpol and the Art Loss Register (ALR), the world's largest international private database of stolen, missing and looted artwork.

The painting was recovered after an art dealer in Britain checked with the ALR's register before selling the Matisse.

"We are happy the painting seems to be okay and in good condition," Moderna Museet's Ek said. "It was a good start to the New Year."

Marinello would not give details of how he got hold of the Matisse.

"No arms were broken and no payments were made," he said, adding the painting would be returned to the museum through Sweden's ministry of culture.

The Moderna Museet is still missing a painting by Georges Braque, after a theft in 1993.

Stolen art is a lucrative industry with $6-7 billion worth of thefts every year, and the current global economic downturn has led to a surge in crimes, according to Marinello.

Last year, for example, thieves made off with paintings by Picasso, Matisse, Monet and other prominent modern artists from Rotterdam's Kunsthal museum worth tens of millions of dollars.

If thieves cannot collect a ransom from insurers or owners, the art is sold on the black market, often for a fraction of its real worth, or even exchanged for drugs or guns.

Of the 360,000 objects on the ALR's database, Marinello said there were several he particularly wanted to find.

The first is a hoard including paintings by Vermeer, Degas and Rembrandt worth $300 million stolen from the Isabella Stewart Gardner Museum in Boston in 1990.

There is a $5 million reward for the paintings.

"Then there is a Rafael stolen by the Nazis in WWII that is pretty nice," he said.

Marinello, however, will have his work cut out. By his admission, only 5-10 percent of stolen art is ever recovered.

($1 = 6.5490 Swedish crowns)

(Reporting by Simon Johnson and Mike Collett-White)

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WASHINGTON | Fri Dec 21, 2012 12:41pm EST

WASHINGTON (Reuters) - State and local government spending grew at a 0.3 percent annual rate in the third quarter, after 11 straight quarters of contraction, the U.S. Commerce Department said on Thursday.

The last time state and local spending expanded was in the third quarter of 2009, at a much more robust rate of 2.2 percent. Then, for nearly three years, spending contracted sharply, with the biggest drop in the first quarter of 2010 at 5.5 percent.

States are pinching pennies, keeping spending growth slow as the economy recovers from the 2007-09 recession and the federal government sends them fewer funds.

"The recent improvement in the national economy has not translated to strong growth in total state expenditures," said the National Association of State Budget Officers (NASBO) in a report also released on Thursday.

Total state spending likely grew only 0.1 percent in fiscal 2012, the lowest level since the group began tracking state spending in 1987, NASBO said. Most states' fiscal years end in June, which means that many have already started fiscal 2013.

The 2007-09 recession caused states' revenues to plunge and, because all states except Vermont must end their fiscal years with balanced budgets, many slashed spending, calling special legislative sessions to make emergency mid-year cuts.

The federal government stepped in to help with the 2009 economic stimulus plan known as the American Recovery and Reinvestment Act (ARRA), which included the largest transfer of federal funds to states in U.S. history.

NASBO said state expenditures grew 3.8 percent in fiscal 2010 and 2.8 percent in fiscal 2011, mostly due to the assistance. By fiscal 2010 federal money made up nearly 35 percent of state spending, compared with 26.3 percent in fiscal 2008.

Now that the burst of stimulus money is over, states must once again shoulder the costs of public programs, even though their revenues are only beginning to return to pre-recession levels. Federal funds likely only represented 31.2 percent of state spending in fiscal 2012 and will continue to shrink, NASBO said.

"State revenues have not increased as fast as ARRA funds have declined, leading to a unique situation in which total state expenditure growth has slowed during the same time that the national economy has been improving," it reported.

Meanwhile, spending demands continue to grow, particularly for the Medicaid healthcare program for the poor that states operate with partial reimbursement from the federal government.

Over the last three years, the portion of state spending going to Medicaid has risen to 23.9 percent from 22.2 percent. Many states worry that Medicaid will eat up their budgets, and leave fewer dollars for other areas.

Spending on education dipped to 19.8 percent in fiscal 2012, the first time on record that the portion has been less than 20 percent, NASBO said.

(Reporting by Lisa Lambert; Editing by Nick Zieminski)

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1 of 2. People wait in line to enter a job fair in New York August 15, 2011.

WASHINGTON | Thu Oct 11, 2012 8:36pm EDT

WASHINGTON (Reuters) - The number of Americans filing new claims for jobless benefits slid last week to the lowest level in more than four and a half years, according to government data that may provide a boost to President Barack Obama a month before voters go to the polls.

The Labor Department report on Thursday was the latest data to suggest improvement in the jobs market, though the surprisingly large 30,000 drop in new claims may have reflected distortions due to seasonal adjustments that are likely to be smoothed out in coming weeks.

"The overall trend seems to be that the labor market is improving," said Brian Kim, a currency strategist at RBS Securities in Stamford, Connecticut.

A Labor Department analyst said seasonal factors had predicted a very large increase in claims last week, which he said would be typical for the first week of the quarter. Unadjusted claims did rise, but far less than expected, resulting in the sharp drop in the seasonally adjusted figure.

He noted that one state reported a decline in claims last week when a rise had been expected. No states had been estimated for the report, he said.

"We will likely see some payback in the claims data reported next week. But through this potential volatility, it does look like the trend in the claims is improving somewhat," said Daniel Silver, an economist at JPMorgan.

Silver said that California, given its large population and past "massive swings" in its claims data, was probably the state that caused the sharp drop in the seasonally adjusted figure.

But Pam Harris, director of the California Employment Development Department, said the state was not to blame.

Harris said California had reported all its unemployment insurance claims data on time. She said a published report stating it had not was "incorrect and inaccurate."

A second Labor Department official said "a processing issue" resulted in the state, which he did not identify, reporting fewer claims than expected.

"We cannot dictate to a state how they process their claims ... This is one of the years they happened to be behind everyone else," he said, adding the Columbus Day holiday this week may have been one factor.

"This individual state, whenever there are increases in claim, usually range from 15,000 to almost 20,000," he added.

The jobs data was tempered by a second report on Thursday that hinted at weaker U.S. and global demand.

The U.S. trade deficit widened in August to $44.2 billion, as U.S. goods exports fell for the fifth consecutive month and imports declined fractionally.

Initial claims for state unemployment benefits fell to a seasonally adjusted 339,000, the lowest number of new claims since February 2008, about a year before Obama took office in the midst of the global financial crisis.

Economists polled by Reuters had forecast claims edging up to 370,0000 last week.

Zach Pandl, strategist at Columbia Management in Minneapolis, said "you do have to be cautious about possible distortions. But with that caveat, the jobless claims numbers have been modestly encouraging over the last few weeks."

The four-week moving average for new claims, a better measure of labor market trends, fell 11,500 to 364,000, the lowest in six months.

U.S. stocks rose in response to the jobs data, while Treasury debt prices slipped and the dollar was lower against a basket of currencies.

A government report on Friday showed employers added a modest 114,000 jobs to payrolls in September but the unemployment rate dropped sharply to 7.8 percent, also the lowest level since Obama took office.

Former General Electric Chief Executive Jack Welch and others suggested last week the payrolls data was fixed to make Obama look better ahead of the election, a charge the Labor Department strongly denied.

Obama's opponent, Republican Mitt Romney, has accused the president of mishandling the economy.

Thursday's claims report showed the number of people still receiving benefits under regular state programs after an initial week of aid fell to 3.27 million in the week ended September 29, the latest data available. It was the lowest since May.

DECLINING TRADE

A Reuters poll on Thursday showed economists were slightly less optimistic about U.S. growth, lowering their median growth forecasts to an annualized 1.6 percent for the first quarter of 2013, compared to 1.7 percent last month.

The group of more than 70 respondents also trimmed their second-quarter forecasts to 2.1 percent from 2.3 percent, suggesting the U.S. economy will continue its slow, steady plod despite a recession in Europe, a slowdown in China and more restrictive fiscal policy at home.

The monthly trade deficit increased to $44.2 billion in August, from an upwardly revised estimate of $42.5 billion in July, the Commerce Department said. Analysts were expecting an August trade gap of about $44.0 billion.

Overall U.S. exports dropped 1.0 percent as troubles in Europe continue to weigh on global growth, while imports fell 0.1 percent in a sign of faltering U.S. demand for consumer products, autos and capital goods.

"It looks like net exports will contribute negatively to GDP (gross domestic product) growth, subtracting as much as half a percentage point," said Michael Moran, chief economist at Daiwa Securities America in New York.

A separate Labor Department report showed that overall U.S. import prices rose 1.1 percent for the second consecutive month in September, while U.S. export prices rose 0.8 percent.

(Additional reporting by Gertrude Chavez-Dreyfus and Ellen Freilich in New York; Editing by Andrea Ricci, James Dalgleish and Lisa Shumaker)

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A ''for sale'' sign is seen outside a home in New York June 19, 2012. U.S. housing starts fell in May from a 3-1/2 year high, although permits to build new homes rose sharply, suggesting a nascent housing recovery remains on track.

NEW YORK | Tue Oct 9, 2012 9:48am EDT

NEW YORK (Reuters) - The number of U.S. homes that could soon come onto the market fell to the lowest in more than three years as of July as distressed sales offset new delinquencies in an encouraging sign for the housing market, a data analyst firm said on Tuesday.

The pending supply of homes, also known as shadow inventory, fell to 2.3 million units as of the end of July, down 10.2 percent from 2.6 million units a year ago and at the same level as March 2009, CoreLogic said. The July data is the most recent available.

Shadow inventory includes the number of properties that are seriously delinquent or behind with loan payments, in foreclosure or held by lenders and servicers but not currently listed on the market. At the end of July it was equal to about six months' supply, CoreLogic said.

While many economists believe the housing market has finally turned a corner as prices have stabilized, the sector still faces many challenges including the swollen pipeline of foreclosures that need to be absorbed by the market.

A decline in shadow inventory should help the nascent recovery as fewer properties coming onto the market means less downward pressure on prices.

"Broadly speaking, the shadow inventory continued to shrink in July," Anand Nallathambi, chief executive of CoreLogic said in a statement. "This is yet another hopeful sign that the housing market is slowly healing."

Of the properties in shadow inventory, one million homeowners were 90 days or more behind on their mortgage payments, considered to be seriously delinquent. As well, 900,000 homes were in some stage of foreclosure, and 345,000 had already been seized by the banks.

The dollar volume of shadow inventory was $382 billion, down from $397 billion a year ago.

CoreLogic revised its methodology for the report and updated previous figures.

(Reporting by Edward Krudy; Editing by James Dalgleish)

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