FTC study taking aim at online marketing of booze and kids

LOS ANGELES (Reuters) – The Federal Trade Commission (FTC) plans this summer to recommend ways that the alcoholic beverage industry can better protect underage viewers from seeing its advertisements online.

Distillers, brewers and wineries pour millions of dollars into brand promotion on Twitter, Facebook and other social media, and industry critics contend they are not doing enough to prevent young consumers from receiving these messages.

“We’re doing a deep dive on how they’re using the Internet and social media,” said Janet Evans, a lawyer with the FTC, which is conducting a year-long study due to be released by early summer. “We’re focusing on underage exposure.”

She would not elaborate on any potential recommendations that might come out of the study, which began in April 2012.

The FTC is reviewing data from 14 big producers, Evans said, including Beam Inc, the maker of Jim Beam, Diageo Plc, home to Johnnie Walker, and Constellation Brands Inc, which makes Robert Mondavi and Ravenswood wines.

The FTC report “is something we take seriously and place at high priority,” said Karena Breslin, director for digital marketing at Constellation.

The FTC has made two requests for information since the study began, she said.

The regulatory agency has not said it intends to impose restrictions on liquor company social media advertising but it can make recommendations to the industry.

The FTC is empowered to file suit to ensure consumers are protected from deceptive marketing practices, Evans said, but she stressed that studies of this nature are meant to promote better self-regulation, not provide a basis for a case.

Executives say alcohol makers and distributors voluntarily adhere to the same industry-set standard for marketing to underage viewers on social media sites that the industry set for its ads on TV and other medium. That requires that at least 71.6 percent of an audience consists of adults 21 and older.

“No one in their right mind would want to advertise to people who can’t legally buy their product,” said Frank Coleman, senior vice president for Distilled Spirits Council of the United States (DISCUS), the trade group that sets the industry’s advertising codes.

In June 2011, DISCUS revised its code upwards to 71.6 percent from 70 percent, after the FTC recommended it review the standard to better reflect U.S. Census population data.

Industry critics, including David Jernigen, director of the Center on Alcohol Marketing and Youth at Johns Hopkins University, and Sarah Mart, research director of the advocacy group Alcohol Justice, contend the industry didn’t go far enough and should raise the standard further.

Jernigen says it needs to be at least 85 percent to effectively protect youth, so there would be no more than 15 percent exposure to the underage drinking population.

“The industry says its self-regulating but it’s ineffective and social media opens up a whole new set of problems because their ads are everywhere,” said Sarah Mart, research director for the San Rafael, Calif.-based group Alcohol Justice.

The industry group’s Coleman said the group now requires members to install age-checking tools via instant-messaging as a gateway to Twitter feeds and other branded Web platforms that ask the user for a birth date before admitting them.

In the first nine months of 2012, beer, wine and spirits manufacturers’ spent an estimated $ 35 million for paid Web display advertising, but industry executives estimate many millions more were spent on Web site creation, video production for platforms like Google’s YouTube and social media marketing efforts.

“We’ve significantly adjusted more money to digital for online video, Web sites, Facebook and Twitter content,” said Kevin George, global chief marketing officer for Jim Beam, which he says spends 30 percent of its media spend for online outlets, up from 10 percent in 2008.

Many companies are expanding their digital staff. Wine maker Constellation hired Breslin three years ago to initiate digital marketing and now has a team of five reporting to her.

Many alcoholic beverage companies flocked to Facebook because it requires users to post their birth dates when signing up. Last year Twitter partnered with Buddy Media to offer a more effective screening tool that sends a direct message to fans who click on a brand. The message sends the fan a link to a site that asks for date of birth, which has allowed Twitter to grab some more of the sector marketing. Salesforce.com bought Buddy Media last June, which is now folding the platform into its marketing cloud portfolio.

Health advocates and industry critics are crying foul. “Facebook and other interactive platforms are poorly monitored and not well age protected,” said Jernigen of Johns Hopkins University. “Anyone can say they’re 21 and click yes.”

(Reporting By Susan Zeidler; Editing by Ron Grover and Alden Bentley)

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PEOPLE's Music Critic: Why We're Upset About Beyoncé's Lip-Synching Drama

By Chuck Arnold

01/22/2013 at 08:40 PM EST

Did she lip-synch or didn't she?

That's the question surrounding Beyoncé after reports surfaced that she didn't sing "The Star-Spangled Banner" live at yesterday's presidential inauguration.

A spokesperson for the U.S. Marine Band, which backed the pop diva at the ceremony, said Tuesday that Mrs. Jay-Z decided to use a previously recorded vocal track before delivering the national anthem, but later on another spokesperson, this one for the Pentagon, said there was no way of knowing whether the 16-time Grammy winner was guilty of lip-synching or not.

Should it matter? Let's remember that Whitney Houston, in what is widely considered one of the best renditions of "The Star-Spangled Banner" of all time, didn't sing it live either at the 1991 Super Bowl.

There are all sorts of technical reasons why it can be challenging to perform a song as difficult as this on such a large scale, and there are many extenuating circumstances that could have played a role in any decision to lip-synch. Certainly no one is questioning whether Beyoncé – who, in removing her earpiece midway through, may have been experiencing audio problems – has the chops to sing it.

Lip-synching – or at least singing over pre-recorded vocal tracks – has long been acceptable for dance-driven artists like Madonna, Janet Jackson and Britney Spears, whose emphasis on intense, intricate choreography makes it hard to execute the moves fans have come to expect while also singing live. Huffing and puffing into the microphone or barely projecting for the sake of keeping it real just isn't gonna cut it. Of course, there have been other instances – such as Ashlee Simpson's 2004 Saturday Night Live debacle – where faking it crossed the line.

Surely there wouldn't be the same controversy about Beyoncé had she been hoofing across the stage performing "Single Ladies (Put a Ring on It)" on one of her tour stops. But this was the presidential inauguration, the national anthem, and there was no choreography involved.

Some things have to remain sacred, and for "the land of the free and the home of the brave," this was one of them.

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Asian shares retreat, Nikkei hit hard as yen stays firm

TOKYO (Reuters) - Asian shares retreated from multi-month highs on Wednesday amid caution as the earnings season gathers pace, with Tokyo stocks falling to three-week closing lows in response to a firm yen.

"Asian markets have been climbing steadily and it's natural for investors to want to book profits as the region's earnings season begins in full force later this month," said Hirokazu Yuihama, a senior strategist at Daiwa Securities in Tokyo.

"The uptrend remains intact given improving fundamentals globally, so selling like this is a healthy correction that may lead to putting a solid floor to prices," he said.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> fell 0.3 percent after earlier reaching a 17-1/2-month high. The index has risen nearly 30 percent since a low touched in June, 2012.

The yen held firm against the dollar and the euro as monetary easing announced on Tuesday by the Bank of Japan failed to provide an immediate stimulus as some had hoped, though many analysts acknowledged the BOJ's resolve to tackle Japan's stubborn deflation and economic stagnation.

The stronger yen hurt Japanese exporters, dragging the benchmark Nikkei average <.n225> down 2.1 percent to a three-week closing low. The yen has weakened by around 12 percent since mid-November against the dollar, and boosted the Nikkei by more than 20 percent as a weaker yen improved exporters' earnings outlook. <.t/>

The BOJ on Tuesday doubled its inflation target to 2 percent and adopted an open-ended commitment to buy assets starting 2014, sparking an unwinding of yen short positions from speculators looking for more immediate easing step.

The dollar fell 0.6 percent to 88.20 yen while the euro slid 0.7 percent to 117.45 yen. The dollar hit a 2-1/2-year high of 90.25 yen on Monday.

Many still believe the yen will resume its recent downtrend, seeing the latest rebound in the Japanese currency as a correction to its rapid and sharp decline.

With the BOJ joining the continued push by global central banks to support growth, Morgan Stanley said in a research note that policy easing by central banks was positive for emerging markets, with more bond portfolio inflows increasingly towards local markets.

"Our key themes for 2013 are rebalancing and reflation, with both prevalent so far this year. Even given a migration towards global equities and away from fixed income, emerging market fixed income remains well-placed," it said.

Elsewhere, Hong Kong and Chinese shares were among the hardest hit as investors took profits from recent gains, with indexes faltering at technical resistances. Hong Kong <.hsi> shares slipped from a 19-1/2-month high and were down 0.4 percent while Shanghai shares <.ssec> fell 0.5 percent, moving further away from a 7-1/2 month high.

"We have risen by quite a bit in a very short time, so investors have been taking some profit in the last week or so, looking for new ideas to rotate into," said Larry Jiang, chief strategist at Guotai Junan International Securities.

Australian shares <.axjo> bucked the trend to edge up 0.2 percent to their highest close in almost 21 months after miner BHP Billiton gained after reporting a rise in quarterly iron ore production.

BETTER ENVIRONMENT

European markets are seen rising, with financial spread-betters predicting London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> would open as much as 0.4 percent higher. U.S. stock futures were down 0.2 percent, pointing to a softer Wall Street start. <.l><.eu><.n/>

On Tuesday, hopes of an improvement in the global economy led the Standard & Poor's 500 Index <.spx> to a five-year high.

Investors were also cheered by easing worries over the U.S. budget crisis.

Republican leaders in the House of Representatives said they aim to pass on Wednesday a nearly four-month extension of the U.S. debt limit to May 19.

U.S. crude was down 0.1 percent to $96.59 a barrel and Brent eased 0.2 percent to $112.23.

Spot gold was at $1,692.66 an ounce, near Tuesday's one-month high of $1,695.76, while London copper traded down 0.3 percent at $8,107 a metric ton but clinging near a one-week high of $$8,144.50 hit on Tuesday.

(Additional reporting by Clement Tan in Hong Kong; Editing by Shri Navaratnam)

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IHT Rendezvous: IHT Quick Read: Jan. 22

NEWS Barack Hussein Obama ceremonially opened his second term on Monday with an assertive Inaugural Address that offered a robust articulation of modern liberalism in America, arguing that “preserving our individual freedoms ultimately requires collective action.” Peter Baker reports from Washington. The President made addressing climate change the most prominent policy vow of his second Inaugural Address, setting in motion what Democrats say will be a deliberately paced but aggressive campaign built around the use of his executive powers to sidestep Congressional opposition. Richard W. Stevenson and John M. Broder report.

As the death toll from the crisis in the Sahara rose sharply to 37, Algeria’s prime minister said that the hostage takers intended to kill all their captives and that the army saved many by attacking. Adam Nossiter reports from Algiers and Eric Schmitt from Washington.

Malian and French troops appeared to recapture two important central Malian towns on Monday, pushing back an advance by Islamist militants who have overrun the country’s northern half. Lydia Polgreen reports from Segou, Mali, and Peter Tinti reports from Diabaly.

A report from the International Labor Organization predicted jobless levels to rise to 202 million worldwide this year, and said that government budget-balancing was hurting employment. David Jolly reports from Paris.

Europe’s political leaders have taken important steps to improve spending discipline among euro members, but have yet to address some serious flaws in the structure of the euro zone. Liz Alderman reports from Paris and Jack Ewing from Frankfurt.

Chancellor Angela Merkel’s main rivals eked out a one-seat majority that will usher the opposition Social Democrats into power in the state of Lower Saxony. Melissa Eddy and Nicholas Kulish report from Berlin.

ARTS The Neues Museum in Berlin is celebrating a bust of the Egyptian queen Nefertiti that “fell” into its hands 100 years ago. Melissa Eddy reports.

FASHION Raf Simons sent out a Dior summer couture collection rooted in reality — note the model’s wash-’n'-go hair — but full of flowers and the beauty of nature. Suzy Menkes writes from Paris.

SPORTS Sloane Stephens’s reward for reaching her first Grand Slam quarterfinal will be a match against a friend and fellow American, Serena Williams. Christopher Clarey reports from Melbourne.

Golfers will be able to express their opinions during Tuesday’s PGA Tour players’ meeting on the proposed ban of the anchored putting stroke. Karen Crouse reports from San Diego.

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BlackBerry Z10 compared to iPhone 5 on camera [video]

Alongside BGR’s own extensive BlackBerry 10 walkthrough, Austrian website Telekom Presse has uploaded another video comparing Research in Motion’s (RIMM) not-so-secret BlackBerry Z10 smartphone to the iPhone 5. The company’s upcoming BlackBerry 10 operating system seems to be a mix between iOS and Android, while adding some unique features. The video showcases the BlackBerry voice assistant app, multitasking and app switching, the app drawer, and the device’s business and home profiles.

[More from BGR: BlackBerry 10 OS walkthrough, BlackBerry Z10 pricing]

Despite the fact that the handset is still running beta software it appears to be exceptionally fast, even besting the iPhone 5 in some scenarios.

[More from BGR: Rumored Xbox 720 specs: 8-core processor, 8GB of RAM, 800MHz GPU]

The BlackBerry Z10 smartphone is said to be equipped with a 4.2-inch HD display, 16GB of internal storage, an 8-megapixel rear camera, 2GB of RAM, NFC, 4G LTE and an 1,800 mAh battery.

RIM will unveil the device along with a second BlackBerry 10 phone at a press conference on January 30th. The BlackBerry Z10, iPhone 5 comparison video follows below.

This article was originally published on BGR.com

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Vera Wang Reveals Details of Michelle Kwan's Wedding Dress

By Cynthia Wang

01/21/2013 at 07:00 PM EST

Michelle Kwan and Clay Pell

Courtesy of Caitlin Maloney

Although she was a singles figure skater throughout her successful career, Michelle Kwan did have one steadfast partner on the ice – fashion designer Vera Wang.

"I wore so many skating dresses designed by her, whole skating shows and everything," Kwan, 32, tells PEOPLE. "I have a long relationship with her."

And that made picking a wedding dress designer a fairly easy decision.

For Kwan's Rhode Island nuptials on Jan. 19 to Clay Pell, 31, Wang put plenty of consideration into her creation.

"She is marrying someone whose family has a political history, and Michelle is living and working in Washington, D.C.," the designer says. "[The dress] had to have a certain dignity and a certain classicism, and I think it was a lot about a new way of looking at tradition."

So Wang created an ivory, strapless mermaid gown for Kwan, made with layers of silk organza and featuring lace appliqué.

"The fact that it's got an inordinate amount of handwork in terms of lace is really a tribute to the art of hand-piecing lace," Wang says. "There is a princess-slash-queenly level of sophistication and quiet without sacrificing a lot of detail."

To complement the formal wedding gown, Kwan asked Wang what she thought of designing a second dress for the reception. "She said, 'Yeah, I got it,' " Kwan says. "She said, 'First dance, yes, and then you've got to change into something else.' "

Her history with the skater was not lost on Wang. "I'm really very honored and very thrilled that a, Michelle has found the love of her life and b, that I am the one to dress her for that special day just as I did for world championships, national championships, and Olympics," she said. "It's just the ongoing saga of our friendship."

For more on Kwan's wedding, including photos and details from the ceremony, pick up a copy of next week's PEOPLE, on newsstands Friday

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Center-Left Defeats Merkel’s Party in State Vote

BERLIN — Chancellor Angela Merkel’s main rivals pulled off an upset in a regional election, eking out a one-seat majority that will usher the opposition Social Democrats into power in the state of Lower Saxony, months ahead of balloting for the national Parliament.

Preliminary results released on Monday showed the center-left bloc of the Social Democrats and the Greens securing a one-seat majority in the regional legislature in Hanover.

The shift signaled an end to a decade of center-right government in the state and will have a direct impact at the national level by tipping the balance of power in the upper house of Parliament, the Bundesrat.

The victory in Lower Saxony gives the center-left a majority in the Bundesrat that could allow it to block legislation from the lower house, dominated by Ms. Merkel’s center-right bloc.

“I expect that it will hardly be possible to push through proposals that the S.P.D. opposes,” Volker Kauder, the parliamentary leader for Ms. Merkel’s party told ZDF public television on Monday. “We will have to see if they use it.”

The Social Democrats took 32.6 percent of the vote, while the Greens won 13.7 percent, the preliminary results showed, giving them 69 seats in the regional legislature. Although the Christian Democrats emerged as the strongest party with 36 percent of the vote, combined with their Free Democrat partners, they were able to secure only 68 seats.

The Free Democrats, the junior partner in Ms. Merkel’s governing coalition in Berlin, won 9.9 percent of the vote.

Neither the Pirate Party nor the Left Party cleared the 5 percent hurdle need to secure representation in the Lower Saxony legislature.

It was unclear how much the loss will hurt Ms. Merkel, who enjoys overwhelming popularity in Germany, thanks to a relatively robust economy, low unemployment and her hard-nosed handling of Europe’s debt crisis.

Ms. Merkel made seven appearances in Lower Saxony this month, alongside the state’s governor, David McAllister.

Although he was the incumbent, the campaign was the first for Mr. McAllister, 42, who took over the position in 2010 when his predecessor, Christian Wulff, was called to Berlin to become president. The son of a soldier from Scotland and a German mother, Mr. McAllister insisted throughout the campaign that his tenure had brought prosperity to the region, and he urged voters to support continuity.

He was expected in Berlin for talks at the Christian Democratic headquarters later Monday.

His main challenger, the mayor of Hanover, Stephan Weil, who ran for the Social Democrats, struggled to make himself better known among voters, resorting at one point in the campaign to handing out red roses to prospective voters, which stretches across largely rural countryside from the North Sea to the former inner-German border.

“I am excited about five years of red-green,” Mr. Weil told reporters after realizing his bloc’s success, using the traditional color codes for his party and their partners. “That was a real roller-coaster ride tonight.”

Although local issues tend to dominate regional elections — as was the case in Lower Saxony, where the education system and completion of several infrastructure projects dominated the debate — the outcome could help the Free Democrats improve their image at the national level of a party dogged by a leadership crisis.

Many had blamed the party’s chairman, Philipp Rösler, who also serves as economy minister and consistently ranks among the country’s least popular politicians, for failing to focus on concrete issues.

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RIM mulls licensing out software: CEO in paper

FRANKFURT (Reuters) – Research in Motion will look into strategic alliances with other technology companies once it has launched its new BlackBerry 10 models, its chief executive told a German newspaper.

German-born CEO Thorsten Heins told daily Die Welt in an interview published on Monday that the group’s strategic review could lead to the sale of RIM’s hardware production or the sale of licenses to its software, among other options.

“The main thing for now is to successfully introduce Blackberry 10. Then we’ll see,” Heins was quoted as saying.

RIM hopes its re-engineered line of Blackberry 10 touch-screen and keyboard devices will win back market share lost to rivals such as Apple’s iPhone and devices powered by Google’s market-leading Android operating system.

(Reporting by Ludwig Burger; Editing by Mark Potter)

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Asian shares retreat from highs, yen volatile before BOJ

TOKYO (Reuters) - Asian shares pulled back from multimonth highs on Monday, while the yen firmed after touching a new low in choppy trade ahead of a Bank of Japan policy decision that is expected to deliver bold monetary easing measures.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> edged down 0.2 percent despite pockets of strength in Australia, Hong Kong and Shanghai. The index briefly renewed a 17-1/2-month high touched on Friday following a rebound in global equities late last week on upbeat U.S. and Chinese data, as well as signs of progress in U.S. budget talks.

The Dow Jones industrial average <.dji> and the Standard & Poor's 500 Index <.spx> ended Friday at five-year highs on a solid start to the quarterly earnings season. U.S. markets are closed on Monday for the Martin Luther King Jr. holiday.

"Asian markets are mixed with no dominant theme in place in a fairly quiet start to the week," said Stan Shamu, market analyst at IG Markets. "There hasn't been any economic data to go by in the region and therefore we've had to rely on leads from the weekend for some direction."

Australian shares <.axjo> inched up 0.1 percent to a 20-month high and Hong Kong shares <.hsi> hit a fresh 19-1/2-month peak, but underperformance in smaller bourses, such as a 2.3 percent slump in Malaysian shares <.klse>, dragged the pan-Asian index. A stronger local currency hurt exporters and weighed on South Korean shares <.ks11>.

European markets are seen tracking Friday's U.S. markets higher, with financial spread-betters predicting London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> would open up as much as 0.4 percent. <.l><.eu/>

The BOJ's two-day policy meeting which concludes on Tuesday drew the attention of traders from several markets, with the South Korean won's gains against the yen pulling the exporter-heavy Kospi stock index <.ks11> down 0.1 percent, while gold rose 0.4 percent on expectations for aggressive BOJ easing.

Under growing political pressure to pursue bolder measures to beat deflation, speculation over the BOJ's options ranged from an open-ended commitment to buy assets until a 2 percent inflation target is achieved to simply boosting its asset buying schemes.

"There is attention on the Bank of Japan, which is really being pressured to embark on some very precious metals-friendly policy," said a Hong Kong-based trader. Tokyo's benchmark gold matched a record of 4,911 yen a gram on Monday.

Early on Monday, the dollar touched a fresh 2-1/2-year high of 90.25 yen, and the euro rose to a high of 120.27 yen, near its peak since May 2011 of 120.73 hit on Friday.

But the yen clawed back some of its losses against the dollar and the euro as traders locked in gains ahead of the outcome of the BOJ meeting. The dollar slipped back to a low of 89.42 yen and was last trading at 89.57 yen, while the euro also fell to a low of 119.08 and last traded at 119.27 yen.

"Profit taking pushed the dollar and the euro down against the yen but short covering lifted them off their lows. Trading is thin and quite volatile. I don't think there will be any clear direction until the BOJ decision," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.

Saito said "sell the fact" behavior could push the dollar down about 1 yen, but a serious disappointment on the BoJ outcome was unlikely.

Tokyo's benchmark Nikkei average <.n225> tumbled 1.5 percent as investors booked profits from the Nikkei's 2.9 percent rally on Friday, its biggest daily gain in 22 months. The Nikkei posted a 10th straight week of gains, its longest since 1987. <.t/>

Many investors largely keep short position on the yen.

"We expect the door for further easing will likely be left open irrespective of the outcome of BoJ policy meeting, either explicitly by the BOJ or implicitly through government's plan to nominate doves to replace the governor and deputy governors," Barclays Capital said in a note to clients.

Friday's data showed while currency speculators slightly cut their bets against the yen in the week to January 15, they remained overwhelmingly negative on the currency.

Asia hedge funds 2012: http://r.reuters.com/jyr35t

China GDP: http://link.reuters.com/zeq95s

Algeria's attack site: http://link.reuters.com/myn35t

Gold/USD correlation: http://r.reuters.com/ryx52s

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Oil prices took their cues from a weak consumer sentiment report in the United States, which showed a drop to the lowest in a year in January as a result of the uncertainty surrounding the country's debt crisis.

Concerns about demand overshadowed supply disruption fears, reinforced by the Islamist militant attack and hostage-taking at a gas plant in Algeria, a member of the Organization of Petroleum Exporting Countries.

U.S. crude futures fell 0.5 percent to $95.08 a barrel while Brent fell 0.3 percent to $111.55 early on Monday.

(Additional reporting by Ian Chua and Thuy Ong in Sydney and Rujun Shen in Singapore; Editing by Shri Navaratnam)

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IHT Rendezvous: China's "Lamborghini" coefficient: Who's Getting Richer, Who Poorer?

BEIJING — Search the word Gini, or “jini,” for Gini coefficient, the well-known measure of income inequality, on China’s biggest microblogging site and the first result today was for Lamborghini, the Italian luxury sports car (in Chinese, the two words share a similar sound in the last part of the car’s name.)

That’s very ironic because the Gini coefficient measures income inequality and the Lamborghini, which can set a buyer back $300,000, is a not uncommon sight on the streets of big Chinese cities, an object of resentment among ordinary people who view it as a symbol of how a few people are amassing tremendous wealth as many struggle with low incomes, low bank deposit rates, high property prices and persistent inflation.

In other words, income inequality in China is politically sensitive.

(The Gini index, of course, is a measure of household income inequality; zero represents perfect income equality and 1 perfect inequality, a situation where one person would own all the wealth, as the World Bank explains.)

So last Friday, when the government announced China’s Gini coefficient figures for the first time in over a decade, there was excitement – and quite a bit of scorn, expressed online and in media reports as well as private conversations. Why?

According to the figures, China today is actually more equal than in 2003, the National Bureau of Statistics said.

From 2003, the Gini coefficient did indeed rise, the bureau said, from 0.479 to a high in 2008 of 0.491. But by 2012 the figure had dropped to 0.474, meaning China is a more equal society today than a decade ago – despite all those Lamborghinis on the street.

At a news conference, Ma Jiantang, the bureau director, called the rate nevertheless “relatively high,” Xinhua reported. “China must accelerate its income distribution reform to narrow the rich-poor gap,” Xinhua said.

Yet the government’s “effective measures” to “bring benefits for its people” after the gobal financial crisis began in 2008 had brought down the measure, it quoted Mr. Ma as saying.

To compare with the United States: in 2011, the Gini coefficient there was also high, at 0.477, according to the U.S. Census Bureau

Xinhua quoted the United Nations as putting the “warning level” on the rich-poor gap at 0.4.

Yet in China this weekend, few believed the new figures.

Here are two lively reactions from microblogs, from a journalist and an economist who together have over six million followers:

“Please choose one: 1. Really, thank you Fatherland; 2. That’s a myth; 3. Not sure, but hurry up and increase my salary,” Shi Shusi, a journalist and social commentator, the director of the state-run Worker’s Daily Weekly, said on his Sina Weibo account to nearly 875,000 followers.

Xu Xiaonian, a professor of finance and economics at the China Europe International Business School, wrote on his Weibo account (5.5 million followers): “A journalist rang to ask me to comment on today’s macroeconomic figures. I’d have to be crazy to truthfully comment on false figures. That Gini coefficient, to use the words of Zheng Yuanjie,” a popular children’s story writer, “‘no-one would even dare to write a fairytale like that.’”

A different report, in December, by researchers at the Southwestern University of Finance and Economics in the city of Chengdu, put China’s Gini at 0.61 for 2010.

While people are by and large glad to see the government once again measuring the figure after a decade-long hiatus (which Mr. Ma explained last year was due to the fact that the government didn’t actually know what people in the cities were earning, as I explored in a Letter from China,) a major problem facing the government is the scale of people’s “hidden income,” estimated by the Beijing-based economist Wang Xiaolu several years ago to be about 9.3 trillion renminbi (nearly $1.5 trillion.)

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