From a snuggle in the surf to a surprise engagement, see the former couple's most romantic moments
Credit: Kevin Mazur/Wireimage
Updated: Friday Jan 11, 2013 | 07:00 AM EST
By: Cara Lynn Shultz
WASHINGTON (AP) — Nearly half the 70 employees at a Ford dealership in Clarksville, Ind., have been out sick at some point in the past month. It didn't have to be that way, the boss says.
"If people had stayed home in the first place, a lot of times that spread wouldn't have happened," says Marty Book, a vice president at Carriage Ford. "But people really want to get out and do their jobs, and sometimes that's a detriment."
The flu season that has struck early and hard across the U.S. is putting businesses and employees alike in a bind. In this shaky economy, many Americans are reluctant to call in sick, something that can backfire for their employers.
Flu was widespread in 47 states last week, up from 41 the week before, the Centers for Disease Control and Prevention said Friday. The only states without widespread flu were California, Mississippi and Hawaii. And the main strain of the virus circulating tends to make people sicker than usual.
Blake Fleetwood, president of Cook Travel in New York, says his agency is operating with less than 40 percent of its staff of 35 because of the flu and other ailments.
"The people here are working longer hours and it puts a lot of strain on everyone," Fleetwood says. "You don't know whether to ask people with the flu to come in or not." He says the flu is also taking its toll on business as customers cancel their travel plans: "People are getting the flu and they're reduced to a shriveling little mess and don't feel like going anywhere."
Many workers go to the office even when they're sick because they are worried about losing their jobs, says John Challenger, CEO of Challenger, Gray & Christmas, an employer consulting firm. Other employees report for work out of financial necessity, since roughly 40 percent of U.S. workers don't get paid if they are out sick. Some simply have a strong work ethic and feel obligated to show up.
Flu season typically costs employers $10.4 billion for hospitalization and doctor's office visits, according to the CDC. That does not include the costs of lost productivity from absences.
At Carriage Ford, Book says the company plans to make flu shots mandatory for all employees.
Linda Doyle, CEO of the Northcrest Community retirement home in Ames, Iowa, says the company took that step this year for its 120 employees, providing the shots at no cost. It is also supplying face masks for all staff.
And no one is expected to come into work if sick, she says.
So far, the company hasn't seen an outbreak of flu cases.
"You keep your fingers crossed and hope it continues this way," Doyle says. "You see the news and it's frightening. We just want to make sure that we're doing everything possible to keep everyone healthy. Cleanliness is really the key to it. Washing your hands. Wash, wash, wash."
Among other steps employers can take to reduce the spread of the flu on the job: holding meetings via conference calls, staggering shifts so that fewer people are on the job at the same time, and avoiding handshaking.
Newspaper editor Rob Blackwell says he had taken only two sick days in the last two years before coming down with the flu and then pneumonia in the past two weeks. He missed several days the first week of January and has been working from home the past week.
"I kept trying to push myself to get back to work because, generally speaking, when I'm sick I just push through it," says Blackwell, the Washington bureau chief for the daily trade paper American Banker.
Connecticut is the only state that requires some businesses to pay employees when they are out sick. Cities such as San Francisco and Washington have similar laws.
Challenger and others say attitudes are changing, and many companies are rethinking their sick policies to avoid officewide outbreaks of the flu and other infectious diseases.
"I think companies are waking up to the fact right now that you might get a little bit of gain from a person coming into work sick, but especially when you have an epidemic, if 10 or 20 people then get sick, in fact you've lost productivity," Challenger says.
___
Associated Press writers Mike Stobbe in Atlanta, Eileen A.J. Connelly in New York, Paul Wiseman in Washington, Barbara Rodriguez in Des Moines, Iowa, and Jim Salter in St. Louis contributed to this report.
NEW YORK (Reuters) - After over a month of watching Capitol Hill and Pennsylvania Avenue, Wall Street can get back to what it knows best: Wall Street.
The first full week of earnings season is dominated by the financial sector - big investment banks and commercial banks - just as retail investors, free from the "fiscal cliff" worries, have started to get back into the markets.
Equities have risen in the new year, rallying after the initial resolution of the fiscal cliff in Washington on January 2. The S&P 500 on Friday closed its second straight week of gains, leaving it just fractionally off a five-year closing high hit on Thursday.
An array of financial companies - including Goldman Sachs
"The banks have a read on the economy, on the health of consumers, on the health of demand," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.
"What we're looking for is demand. Demand from small business owners, from consumers."
EARNINGS AND ECONOMIC EXPECTATIONS
Investors were greeted with a slightly better-than-anticipated first week of earnings, but expectations were low and just a few companies reported results.
Fourth quarter earnings and revenues for S&P 500 companies are both expected to have grown by 1.9 percent in the past quarter, according to Thomson Reuters I/B/E/S.
Few large corporations have reported, with Wells Fargo
The KBW bank index <.bkx>, a gauge of U.S. bank stocks, is up about 30 percent from a low hit in June, rising in six of the last eight months, including January.
Investors will continue to watch earnings on Friday, as General Electric
HOUSING, INDUSTRIAL DATA ON TAP
Next week will also feature the release of a wide range of economic data.
Tuesday will see the release of retail sales numbers and the Empire State manufacturing index, followed by CPI data on Wednesday.
Investors and analysts will also focus on the housing starts numbers and the Philadelphia Federal Reserve factory activity index on Thursday. The Thomson Reuters/University of Michigan consumer sentiment numbers are due on Friday.
Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis, said he expected to see housing numbers continue to climb.
"They won't be that surprising if they're good, they'll be rather eye-catching if they're not good," he said. "The underlying drive of the markets, I think, is economic data. That's been the catalyst."
POLITICAL ANXIETY
Worries about the protracted fiscal cliff negotiations drove the markets in the weeks before the ultimate January 2 resolution, but fear of the debt ceiling fight has yet to command investors' attention to the same extent.
The agreement was likely part of the reason for a rebound in flows to stocks. U.S.-based stock mutual funds gained $7.53 billion after the cliff resolution in the week ending January 9, the most in a week since May 2001, according to Thomson Reuters' Lipper.
Markets are unlikely to move on debt ceiling news unless prominent lawmakers signal that they are taking a surprising position in the debate.
The deal in Washington to avert the cliff set up another debt battle, which will play out in coming months alongside spending debates. But this alarm has been sounded before.
"The market will turn the corner on it when the debate heats up," Prudential Financial's Krosby said.
The CBOE Volatility index <.vix> a gauge of traders' anxiety, is off more than 25 percent so far this month and it recently hit its lowest since June 2007, before the recession began.
"The market doesn't react to the same news twice. It will have to be more brutal than the fiscal cliff," Krosby said. "The market has been conditioned that, at the end, they come up with an agreement."
(Reporting by Gabriel Debenedetti; editing by Rodrigo Campos)
WASHINGTON (Reuters) - President Barack Obama and Afghan President Hamid Karzai will hold a critical round of talks on Friday that could help determine how fast the United States withdraws troops from Afghanistan and whether it leaves a residual force after 2014.
Hosting Karzai at the White House, Obama faces the challenge of pressing ahead with his re-election pledge to continue winding down the long war in Afghanistan while preparing the Afghan government to prevent a slide back into chaos and a Taliban resurgence once most NATO forces are gone.
Karzai's visit, which follows a year of growing strains in U.S.-Afghan ties, comes amid stepped-up deliberations in Washington over the size and scope of the U.S. military role in Afghanistan once the NATO-led combat mission concludes at the end of next year.
White House officials have left open the possibility of a complete U.S. withdrawal after 2014 - as happened in Iraq in 2011 - an option that conflicts with the Pentagon's view that thousands of troops will be needed to bolster and train still-fragile Afghan security forces.
But talk of this "zero option" may actually be a gambit to squeeze concessions from Karzai, who has yet to agree on immunity from prosecution for any U.S. forces that stay behind under a bilateral security pact being negotiated. It could also send a message to the Pentagon to scale back expectations of future troop levels.
The White House believes Obama and Karzai, despite a history of sometimes tense relations, can narrow their differences. But Obama aides expect no breakthroughs or concrete agreements and say it will be months before Obama decides how many troops - if any - he wants to keep in Afghanistan.
U.S. officials have said privately that the White House is asking for options to be developed for keeping between 3,000 and 9,000 troops in the country. General John Allen, the top U.S. and NATO commander in Afghanistan, had initially suggested that as many as 15,000 troops should remain.
With some 66,000 U.S. troops currently in Afghanistan, Obama is also deciding on the pace of this year's troop reductions. Afghan forces are due to take the lead role in security across the country in 2013.
"WAR OF NECESSITY"
Obama once called Afghanistan a "war of necessity" but is heading into a second term looking for an orderly way out of the conflict, which was sparked by the September 11, 2001, attacks by al Qaeda on the United States.
Former Senator Chuck Hagel, Obama's nominee to become defense secretary, is likely to favor a sizable troop reduction.
Deliberations between Obama and his aides on winding down the unpopular war will have to compete with other priorities dominating his agenda, including the next round of U.S. fiscal showdowns and an intensifying push for gun-control measures.
Many of Obama's Republican opponents have criticized him for setting a timetable for withdrawal from Afghanistan and accuse him of undercutting the U.S. mission by reducing the size of the U.S. force there too quickly.
Karzai's talks with Obama - together with a working lunch and joint news conference - will cap a series of meetings this week with Defense Secretary Leon Panetta, Secretary of State Hillary Clinton and top lawmakers.
"After a long and difficult past, we finally are, I believe, at the last chapter of establishing ... a sovereign Afghanistan that can govern and secure itself for the future," Panetta told Karzai at the start of talks at the Pentagon on Thursday.
Clinton and Karzai met at the State Department on Thursday evening and were to have a working dinner.
Also on the agenda for the Obama-Karzai talks are tentative reconciliation efforts involving Taliban insurgents. Those efforts have shown flickers of life after nearly 10 months of limbo.
Karzai and his U.S. partners have not always seen eye to eye, even though the American military has been seen as crucial to securing his tenure from insurgents' attempts to oust him.
In October, Karzai accused the United States of playing a double game by fighting the war in Afghan villages instead of going after those in Pakistan who support insurgents.
(Additional reporting by David Alexander and Warren Strobel; Editing by David Brunnstrom)
OTTAWA (Reuters) – Native Canadians are so angry that they could resort to blocking resource development and bring the economy “to its knees” unless the Conservative government addresses their grievances, an influential chief said on Thursday.
Native Canadian chiefs are due to meet with Prime Minister Stephen Harper on Friday to discuss the poor living conditions facing many of Canada’s 1.2 million aboriginals.
“We have had enough. Our young people have had enough. Our women have had enough … . We have nothing left to lose,” said Grand Chief Derek Nepinak from the province of Manitoba.
Activists have already blockaded some rail lines and threatened to close Canada’s borders with the United States in a campaign they call “Idle No More.”
Canada has 633 separate native “bands,” each of which have their own communities and lands, and not all share the same opinions. The chief of the Assembly of First Nations, the aboriginal umbrella group, said his members had come to a tipping point, but he made no mention of damaging the economy.
“You cannot ignore what is happening with Idle No More… We will drive the final stake in the heart of colonialism and it will happen in this generation,” Shawn Atleo told a separate news conference.
“First Nations are not opposed to resource development, they are just not supportive of development at any cost,” he said.
Native Canadian leaders say they want more federal money, a greater say over what happens to resources on their land and more respect from the federal Conservative government.
“These are demands, not requests,” said Nepinak. “The Idle No More movement has the people – it has the people and the numbers – that can bring the Canadian economy to its knees. It can stop Prime Minister Stephen Harper’s resource development plan,” Nepinak told reporters in Ottawa.
“We have the warriors that are standing up now, that are willing to go that far. So we’re not here to make requests, we’re here to demand attention,” he said.
Aboriginal bands are unhappy about Enbridge Inc’s plans to build a pipeline from the oil sands of Alberta to the Pacific province of British Columbia, and some say they will not allow the project to go ahead.
Some aboriginal bands oppose the Enbridge pipeline on the grounds that it is too environmentally dangerous while others say the company did not do enough to consult them before applying for permission to go ahead with the project.
“DIPLOMATIC HAND”
Nepinak said he wants to extend a “diplomatic hand” toward resolving the issues and gave no details about what he meant by bringing the economy to its knees.
Nepinak and other Manitoba chiefs are also demanding that Ottawa rescind parts of two recent budget acts they say reduce environmental protection for lakes and rivers, and make it easier to sell lands on the reserves where many natives live.
“We’ve been working tirelessly to gain access through various channels into this Harper regime … . How do we trust the words of this prime minister?” Nepinak asked.
Successive Canadian governments have struggled for decades to improve the life of aboriginals.
Ottawa spends around C$ 11 billion ($ 11.1 billion) a year on its aboriginal population, yet living conditions for many are poor, particularly for those on reserves with high rates of poverty, addiction, joblessness and suicide.
As part of the Idle No More campaign, protesters blocked a Canadian National Railway Co line in Sarnia, Ontario, in late December and early January.
($ 1=$ 0.99 Canadian)
(Reporting by David Ljunggren; Editing by Peter Galloway, Xavier Briand and David Brunnstrom)
Internet News Headlines – Yahoo! News
By Elizabeth McNeil
01/10/2013 at 07:35 PM EST
Audrey Hepburn with her son, Luca Dotti, in 1985
Audrey Hepburn Childrens Fund
She thought her nose too big, her feet too large and her neck too long. She loved to shop for groceries (but not clothes), didn't wear makeup at home, never went to the gym and enjoyed two fingers of Scotch every night.
"She was not this ethereal creature," says Robert Wolders, 76, the Dutch actor who was her companion for the last 13 years of her life. "She was an earthy woman with a ribald sense of humor."
What Hepburn had, adds Wolders, "was more than beauty. It was this extraordinary mystique."
Hepburn left Hollywood at age 34 at the height of her fame, moving into a 1732 farmhouse in Tolochenaz, a small Swiss village, where she found happiness raising two sons and purpose in her charity work for UNICEF.
Two decades after her death from abdominal cancer at 63 on Jan. 20, 1993, her children and her last love remember the Audrey they adored.
NEW YORK (AP) — From the Rocky Mountains to New England, hospitals are swamped with people with flu symptoms. Some medical centers are turning away visitors or making them wear face masks, and one Pennsylvania hospital set up a tent outside its ER to deal with the feverish patients.
Flu season in the U.S. has struck early and, in many places, hard.
While flu normally doesn't blanket the country until late January or February, it is already widespread in more than 40 states, with about 30 of them reporting some major hot spots. On Thursday, health officials blamed the flu for the deaths of 20 children so far.
Whether this will be considered a bad season by the time it has run its course in the spring remains to be seen.
"Those of us with gray hair have seen worse," said Dr. William Schaffner, a flu expert at Vanderbilt University in Nashville.
The evidence so far points to a moderate season, Schaffner and others say. It looks bad in part because last year was unusually mild and because the main strain of influenza circulating this year tends to make people sicker and really lay them low.
David Smythe of New York City saw it happen to his 50-year-old girlfriend, who has been knocked out for about two weeks. "She's been in bed. She can't even get up," he said.
Also, the flu's early arrival coincided with spikes in a variety of other viruses, including a childhood malady that mimics flu and a new norovirus that causes vomiting and diarrhea, or what is commonly known as "stomach flu." So what people are calling the flu may, in fact, be something else.
"There may be more of an overlap than we normally see," said Dr. Joseph Bresee, who tracks the flu for the Centers for Disease Control and Prevention.
Most people don't undergo lab tests to confirm flu, and the symptoms are so similar that it can be hard to distinguish flu from other viruses, or even a cold. Over the holidays, 250 people were sickened at a Mormon missionary training center in Utah, but the culprit turned out to be a norovirus, not the flu.
Flu is a major contributor, though, to what's going on.
"I'd say 75 percent," said Dr. Dan Surdam, head of the emergency department at Cheyenne Regional Medical Center, Wyoming's largest hospital. The 17-bed emergency room saw its busiest day ever last week, with 166 visitors.
The early onslaught has resulted in a spike in hospitalizations. To deal with the influx and protect other patients from getting sick, hospitals are restricting visits from children, requiring family members to wear masks and banning anyone with flu symptoms from maternity wards.
One hospital in Allentown, Pa., set up a tent this week for a steady stream of patients with flu symptoms. But so far "what we're seeing is a typical flu season," said Terry Burger, director of infection control and prevention for the hospital, Lehigh Valley Hospital-Cedar Crest.
On Wednesday, Boston declared a public health emergency, with the city's hospitals counting about 1,500 emergency room visits since December by people with flu-like symptoms.
All the flu activity has led some to question whether this year's flu shot is working. While health officials are still analyzing the vaccine, early indications are that it's about 60 percent effective, which is in line with what's been seen in other years.
The vaccine is reformulated each year, based on experts' best guess of which strains of the virus will predominate. This year's vaccine is well-matched to what's going around. The government estimates that between a third and half of Americans have gotten the vaccine.
In New York City, 57-year-old Judith Quinones skipped getting a flu shot this season and suffered her worst case of flu-like illness in years. She was laid up for nearly a month with fever and body aches. "I just couldn't function," she said.
But her daughter got the vaccine. "And she got sick twice," Quinones said.
Europe is also suffering an early flu season, though a milder strain predominates there. Flu reports are up, too, in China, Japan, the West Bank, the Gaza Strip, Algeria and the Republic of Congo. Britain has seen a surge in cases of norovirus.
On average, about 24,000 Americans die each flu season, according to the CDC. That's an estimate — the agency does not keep a running tally of adult flu deaths each year, only for children. Some state health departments do keep count, and they've reported dozens of flu deaths so far.
Flu usually peaks in midwinter. Symptoms can include fever, cough, runny nose, head and body aches and fatigue. Some people also suffer vomiting and diarrhea, and some develop pneumonia or other severe complications.
Most people with flu have a mild illness and can help themselves and protect others by staying home and resting. But people with severe symptoms should see a doctor. They may be given antiviral drugs or other medications to ease symptoms.
Flu vaccinations are recommended for everyone 6 months or older. Of the 20 children killed by the flu this season, only two were fully vaccinated.
___
AP Medical Writer Maria Cheng in London contributed to this report.
___
Online:
CDC flu: http://www.cdc.gov/flu/index.htm
TOKYO (Reuters) - Asian shares and Brent crude futures fell on Friday as a pick-up in Chinese inflation prompted profit-taking, although an improving outlook for global economies curbed losses, while the yen slid on renewed expectations for bold monetary easing in Japan.
China's annual consumer inflation rate accelerated to a seven-month high of 2.5 percent in December on rising food prices, narrowing the scope for the central bank to boost the economy by easing monetary policy. The producer price index fell 1.9 percent in December from a year earlier, marking the 10th consecutive month of declines, but improved from November's 2.2 percent annual drop.
Brent crude futures fell 0.4 percent to $111.50 a barrel and U.S. crude trimmed earlier rises to trade nearly flat at 93.86.
"China's inflation was hotter than expected which might add a little bit of downside risk and some investors may be cashing in profits," said Ben Le Brun, market analyst at OptionsXpress.
MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> eased 0.2 percent, erasing morning gains that brought the index near its highest level since August 2011 hit last week. The index looked set to end the week virtually flat after starting the first week of 2013 with a 2.4 percent jump.
Shanghai shares <.ssec> tumbled 1.3 percent, dragging Hong Kong shares <.hsi> into negative territory, while Australian shares <.axjo> ended down 0.3 percent.
"It's not the end of the world. We have been trending in overbought territory for more than a week anyway, so this higher headline inflation is a trigger for some profit-taking. We are in a consolidation phase," said Hong Hao, Bank of Communication International's chief equity strategist, based in Hong Kong.
Hirokazu Yuihama, a senior strategist at Daiwa Securities in Tokyo, said the China inflation data offered some positive signs but, given the market's rapid rally over the past month, it was probably used as an excuse to book profits.
"The slight pickup in inflation is still well below the 3.5 percent forecast by China, and may also reflect recovery in consumption," he said, adding that the data was unlikely to significantly dent an overall trend in improving risk appetite.
Unexpectedly strong Chinese trade data on Thursday buoyed hopes that demand from the world's second-largest economy will rise, while cautiously optimistic comments from European Central Bank President Mario Draghi eased anxiety over the euro zone debt problems.
European markets will likely sustain optimism. Financial spread-betters predicted London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> would open as much as 0.3 percent higher. U.S. stock futures were little changed, hinting at steady Wall Street start. <.l><.eu><.n/>
EPFR Global noted that equity mutual funds have brought in $6.8 billion of inflows over the last four business days, with equity flows exceeding bond flows.
In a sign of some stability, South Korea's central bank held interest rates steady for a third consecutive month on Friday as expected, to assess the effect from two cuts last year. However, the bank also revised down its outlook for South Korea's GDP growth in 2013 to 2.8 percent from 3.2 percent, which along with a sharp rise in the won hurt Seoul shares.
ABE FUELS NIKKEI BUYING
Japan's benchmark Nikkei stock average <.n225> closed up 1.4 percent at a 23-month high as the yen's further slide boosted exporters. Japanese financial markets will be closed on Monday for a public holiday. <.t/>
Prime Minister Shinzo Abe "is seen seriously committed to making the economy better as he is becoming more detailed, and investors are feeling it is possible under his government," said Kyoya Okazawa, head of global equities at BNP Paribas in Tokyo.
Japan's cabinet approved on Friday an economic stimulus package in the biggest spending boost since the financial crisis as Abe pursues an ambitious agenda to spur growth and end stubborn deflation.
The dollar jumped to 89.35 yen, its highest since June 2010, on strengthening speculation Abe will exert strong pressure on the Bank of Japan to pursue aggressive easing steps. Abe said in an interview with the Nikkei newspaper on Friday that the BOJ should consider maximizing employment as a monetary policy goal to help boost the economy.
The euro surged to 118.58 yen, its highest since May 2011.
The yen selling gained momentum after data on Friday showed Japan had logged a current account deficit in November for the first time in 10 months at 222.4 billion yen ($2.5 billion), overshooting a 3.5 billion yen deficit forecast.
"Fresh short-term players, who know nothing about Japan and have never traded the yen before, are now joining the yen selling, and these fresh faces are responding to headlines," said Yunosuke Ikeda, a senior FX strategist at Nomura Securities.
The euro was last at $1.3261 after earlier hitting a one-week high of $1.3280, helped by a smooth first bond sale of the year from Spain on Thursday, which pushed benchmark 10-year Spanish government bond yields to a 10-month low of 4.90 percent.
As the yen fell, Tokyo gold futures rallied to a record high on Friday to as high as 4,820 yen per gram, exceeding the previous record of 4,754 yen marked on September 7, 2011.
(Additional reporting by Ayai Tomisawa in Tokyo, Clement Tan in Hong Kong and Ramya Venugopal in Singapore; Editing by Shri Navaratnam, Paul Tait and Chris Gallagher)
SURAT, India (Reuters) - Turning a single Indian state with a long tradition of entrepreneurship and a solid political majority into an investor-friendly economic powerhouse is one thing.
Replicating that experience across a diverse country of 1.2 billion would be a tougher prospect for Narendra Modi, whose leadership of booming Gujarat state has led to his being touted as a potential candidate to become India's next prime minister.
While Modi wins praise even from critics for cutting red tape and making government more responsive and predictable, many ingredients for Gujarat's run of growth were in place well before he took office in 2001.
"It is like an icing on cake sort of thing. You have a nice cake and Modi has done a lot of good icing," said Rakesh Chaudhary, director of Pratibha Group, a textile manufacturer in Palsana on the outskirts of the Gujarat city of Surat.
Industry in Gujarat is helped by a long coastline and plenty of barren land that is easy to turn over to factory use.
The power that comes from a long-standing and heavy majority for his Bharatiya Janata Party (BJP) in the state also gives Modi an advantage that he would not enjoy on a national stage marked by fractious coalition politics.
Despite a controversial past - Modi is accused by critics of not doing enough to stop or of even quietly encouraging religious riots in 2002 that saw as many as 2,000 killed, most of them Muslims - he has established a reputation as an economic reformer in part by building on the strengths of Gujarat and marketing them heavily.
Modi's marketing savvy, aided by the Washington lobbying and public affairs firm APCO Worldwide, will be on display at the biennial "Vibrant Gujarat Summit" that begins on Friday.
Initiated by Modi in 2003 to attract investment after the violence and an earthquake in 2001, the event is attended by thousands of corporate officials who pledge billions in investment, although in reality only a fraction has seen the light of day. Of 12.4 trillion rupees ($225 billion) in investment proposed at the 2009 event, just 8.5 percent had been spent as of November 2011, according to state government data.
"Under Modi's regime, there has been significant improvement in infrastructure growth, significant improvement in industrialization, as well as agriculture," said Jahangir Aziz, senior Asia economist at JPMorgan. "But what has been overplayed is initial conditions were actually pretty decent in Gujarat."
HIGHER OFFICE?
The stocky Modi, who favors traditional Indian attire and a clipped white beard, plays down any prime ministerial ambitions.
But his popularity in Gujarat - the BJP won 115 of the state assembly's 182 seats in a December election - has fuelled speculation that he could lead his Hindu nationalist party in 2014 against India's ruling Congress party, which has been beset by corruption scandals and overseen a sharp economic slowdown.
"His economic record in Gujarat is obviously something which matters a lot to the middle classes. That, coupled with strong leadership," said Swapan Dasgupta, an analyst with links to the BJP who expects Modi to be the party standard-bearer in 2014.
Critics say that while Modi has indeed encouraged investment and helped bring reliable electricity and law and order, double-digit growth has not been shared broadly enough. In the five years through March 2010, some states - including Tamil Nadu and Karnataka - did better at bringing down poverty levels.
"Big business people get a lot from the government and scheduled caste people (minorities) get a lot, but people like us who are in between get nothing," said Bhupendra Thakkar, 50, who earns 6,000 rupees ($109) a month selling fruit near Surat's decrepit railway station.
FRIEND OF BUSINESS
Modi lured Tata Motors to the state in 2008 after the company's plans to build a factory for its low-cost Nano car were thwarted by farmers in West Bengal.
Ford Motor Co and Maruti Suzuki are also building plants in the western state - high profile investments that carry the added benefit of acting as marketing tools.
In the seven years through March 2011, Gujarat's economy grew an annual 10.08 percent at constant prices, against 6.45 percent in the eight years through March 2002 (Modi took office in October 2001), which was still ahead of the all-India average of 6.16 percent. A handful of states, including Maharashtra and Tamil Nadu, clocked bigger gains over the same recent period.
By comparison, policy gridlock at the national level has contributed to a drop-off in corporate investment, putting India on track to record its slowest annual growth rate in a decade.
Accustomed to getting his way, Modi, 62, could struggle to negotiate the coalition politics that have become the norm at the national level and have hindered attempts at reform by Prime Minister Manmohan Singh's Congress-led administration.
"Policymaking has benefited from the fact that the BJP has had absolute majority in the state legislature - an advantage it certainly will not enjoy in the federal parliament," said Anjalika Bardalai, an analyst with the Eurasia Group in London.
Modi has also been able to leverage the business acumen of Gujaratis, a group that has long been known for trading and entrepreneurship and includes a prosperous global diaspora as well as billionaires such as Adani Group chief Gautam Adani and Mukesh Ambani, who controls Reliance Industries, India's most valuable company.
"Modi might not be as successful as he has been here because the business mentality is unique to Gujarat," said Chandrakant Sanghavi, chairman of Sanghavi Exports International, a diamond trader and processor. "It could be prevalent in other states but the ratio may be less." ($1 = 55.0700 Indian rupees)
(Editing by John Chalmers and Alex Richardson)
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