Euro rises, shares gain as Europe's outlook brightens

LONDON (Reuters) - The euro hit a fresh 14-month high and European stocks gained on Friday after economic data raised hopes that the region's downturn has eased, but moves were limited as investors await a U.S. jobs report.

Euro zone factories had their best month in nearly a year during January although the currency bloc is likely to remain mired in recession for a few more months, the latest reading of Markit's Purchasing Managers' Index (PMI) showed.

"Providing there are no further setbacks to the region's debt crisis, these data add to the expectation that the euro zone is on course to return to growth by mid-2013," said Chris Williamson, chief economist at data compiler Markit.

The euro hit a high of $1.3657 after the data came out, its highest level since November 2011. The common currency also hit a 33-month high against the yen, rising more than 1 percent to 125.96 yen.

The pan-European FTSEurofirst 300 index <.fteu3> extended its recent gains by 0.4 percent to 1,169.14 points, near a 23-month high after solid rally since the start of the year. London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> were up between 0.5 and 0.8 percent.

Earlier, China's official PMI for January eased to 50.4, missing market expectations for a rise and underscoring the fragility of the recovery from the economy's weakest year since 1999.

However, a separate private survey showed that growth in China's giant manufacturing sector hit a two-year high in January as domestic demand strengthened, underlining hopes the nation's economic recovery is slowly gaining momentum.

The Chinese data left MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> little changed

EURO STRENGTH

The euro has risen significantly in recent weeks as the outlook for the 17-nation currency bloc has improved, and also as investors respond to the sharply easier monetary policies of the U.S. Federal Reserve and Bank of Japan.

"The perception is that the ECB is being less supportive and is not providing as much liquidity as the other central banks are," said Andrew Milligan, head of Global Strategy at Standard Life Investments.

At the same time liquidity in the European money markets is being affected by quicker-than-expected repayments of crisis loans handed out by the ECB at the height of the bloc's crisis just over a year ago.

Banks have another two years to pay back the money if they want, but have taken the opportunity this week to return over a quarter of the 489 billion euros ($663.77 billion) they took in the first of the ECB's two "LTRO" handouts.

From now on they can pay back as little or as much of the remaining money as they want each week. After the fast start, analysts are awaiting Friday's details of next week's repayments for clues on whether the pace is likely to continue.

Money market rates have already risen by a quarter of a percentage point since the start the year - the equivalent of a standard ECB interest rate increase - and are likely climb by at least the same amount again if the money continues to drain rapidly from the system.

For Europe's struggling countries and the ECB this is not an ideal situation, effectively tightening monetary policy and creating unwanted stress just as economies are showing fragile signs of improvement.

JOBS EYED

Friday's U.S. nonfarm payrolls data due at 8:30 a.m. ET could be a another factor to drive the euro higher, as a strong report would knock the safe-haven dollar.

The dollar was trading at a 3-1/2 month low against a basket of currencies <.dxy> on Friday after falling 0.3 percent to 78.97 points.

Employers are expected to have added 160,000 new jobs to their payrolls in January, a marginal step up from December's 155,000 gain, according to a Reuters survey of economists. The unemployment rate is seen holding steady at 7.8 percent.

The U.S. economy unexpectedly contracted in the fourth quarter, its weakest performance since emerging from recession in 2009, and it grew just 2.2 percent in the whole of 2012.

The U.S. ISM factory survey, a national report on the state of American manufacturers, is also due at 10 a.m. ET.

(Additional reporting by Marc Jones,; editing by Philippa Fletcher)

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IHT Rendezvous: The Indian State is a Coward

NEW DELHI – When the Indian state wants to laugh it probably reads Hegel’s hypothesis, “The state is the actuality of the ethical Idea.” The language of the Indian state is often sentimental, but in reality it is a practical corporation that tries to appease in the easiest ways possible its most valued consumers. Which is not a bad thing. But, like most practical people, the state is a coward. It wants to completely eliminate imaginary risks to its survival and is willing to do even stupid things that have no meaning to achieve that. That is the reason why there is no substantial free speech in India. The state sides with those who are offended even if their claim is farcical. This is the subject of my latest Letter from India.

At the Jaipur Literature Festival last week, the sociologist Ashis Nandy said that most of India’s corrupt people were from the backward castes. Some listeners claimed to be offended, and the police brought charges against him, including one under a very stringent act meant to protect the backward castes from “atrocities.” The annual festival attracts some of the best writers and academics in the world and hundreds of thousands of people are in attendance over five days. But if the lesson now is that speakers have to be cautious, the festival will find it hard to attract some of the world’s most interesting writers and intellectuals.

Page Two

Posts written by the IHT’s Page Two columnists.

Last year, Salman Rushdie was to attend the festival but had to cancel after some Muslim groups objected and the Indian government and the government of Rajasthan (the state of which Jaipur is the capital) said they could not guarantee his physical safety. A few days later he appeared at a conclave in New Delhi and there were no protests at all. He even taunted the Indian government for the uneventfulness of his appearance in India. He has since visited India at least once. The protest against his planned attendance at the Jaipur festival and the government’s reaction were a part of the same imbecilic farce that often collides with artistic and intellectual freedom in India. There is nothing valiant about the loss of the freedom of expression in India, as it often happens for no good reason at all. Just a small bunch of thugs or fools can influence the state to take their side.

The release of a Tamil-language film, which also has or will soon have versions in other Indian languages, has been blocked in several parts of southern India by some Muslim groups whose leaders have not even seen it. The film’s director, co-producer and lead actor, Kamal Haasan, had faced a similar problem a few years ago from many quarters, particularly Hindu groups, before the release of a film about a man who sets out to assassinate Gandhi. A Hindu nationalistic group said it was offended by its portrayal of historical figures. And, once again, the politicians took the side of the fanatics. Mr. Haasan went around for days in a green shirt and green trousers to irritate Hindu groups with the color of Islam. During the controversy he told me in an interview that he was very surprised that nobody had yet objected to the fact that the film depicted Gandhi as being shot and killed.

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Nintendo chief rules out price cuts for Wii U

TOKYO (AP) — Nintendo‘s president Thursday ruled out price cuts for its new Wii U home console as a way to boost sales, vowing to become profitable again in its core businesses as smartphones and tablets increasingly threaten specialized game machines.

Satoru Iwata, speaking at a Tokyo hotel to investors and reporters a day after earnings were released, acknowledged the sales momentum for the Wii U, as well as the 3DS hand-held game machine, had run out of steam during the key year-end shopping season, especially in the U.S.

But he said no price cuts were in the works. Price cuts are common in the gaming industry to woo buyers, but the move can backfire by trimming revenue. The Wii U now sells for about $ 300 in the U.S. and 25,000 yen in Japan.

“We are already offering it at a good price,” he said.

Iwata said he expects operating profit of more than 100 billion yen in the 12 months ending March 2014, promising that as “a commitment.”

But he acknowledged more work was needed to have consumers understand the Wii U, which went on sale globally late last year, as well as producing more game software to draw buyers.

All game machines have suffered in recent years from the advent of smartphones and other mobile devices that have become more sophisticated and offer games and other forms of entertainment.

Nintendo returned to net profit for the April-December period of 2012 from deep losses the previous year, but that was due to a perk from a weaker yen, which helps Japanese exporters such as Nintendo.

Its operating result, which removes currency fluctuations, was a loss of 5.86 billion yen ($ 64 million), and Nintendo expects that to swell to a 20 billion yen ($ 220 million) loss for the full business year ending March 2013 as sales of its game consoles fall short of expectations.

Iwata said Nintendo is preparing more game software, including those developed in-house, for the end of this year.

Kyoto-based Nintendo, which makes Super Mario and Pokemon games, lowered its full year sales forecast Wednesday to 670 billion yen ($ 7.4 billion) from 810 billion yen ($ 8.9 billion). It also said it was going to sell fewer Wii U consoles for the fiscal year through March than its previous projection. The Wii U has a touch-screen tablet controller called GamePad and a TV-watching feature called TVii.

The company forecasts it will sell 4 million Wii U consoles for the current fiscal year, ending March 31, down from its earlier estimate of 5.5 million units. The Wii U, which went on sale late last year, was the first major new game console to arrive in stores in years.

Nintendo, also behind the Donkey Kong and Zelda games, lowered its full year sales forecast for Wii U game software units to 16 million from 24 million.

Iwata said last year holiday sales quickly dissipated in the U.S. and some European nations, including Great Britain, the key market. He said the U.S. home console sales were the worst for Nintendo in nearly a decade.

He said Nintendo needs hit games to push console sales, and the company remains confident Wii U will prove more popular with time.

“The chicken-and-game problem has not been solved,” he said of the need for both game software and machine hardware.

“I feel a deep sense of responsibility for not being able to produce results for our year-end business,” said Iwata.

He declined to say what he would do if the company failed to attain the promised operating profits.

Nintendo sank into a loss the previous fiscal year largely because of price cuts for its hand-held 3DS game machine, which shows three-dimensional imagery without special glasses. That machine is also struggling in most global markets.

Shigeru Miyamoto, Nintendo’s famed game designer, said what was missing were games for the Wii U that made its appeal clear. The progress in smartphones has also posed a challenge for Nintendo, he said.

“People have to try it to see it is fun,” Miyamoto said of Wii U.

___

Follow Yuri Kageyama on Twitter at www.twitter.com/yurikageyama

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Brooke Burke-Charvet Refuses to Say 'Fat' Or 'Diet' in Front of Her Kids

By Dahvi Shira

01/31/2013 at 07:15 AM EST

A healthy home is a happy home for Brooke Burke-Charvet.

The mother of four kids – Neriah, 12, Sierra, 10, Rain, 6, and Shaya, 4 – hopes her lifestyle rubs off on them.

"I always tell other parents to lead by example," Burke-Charvet, 41, told PEOPLE on Tuesday. "My kids know I'm always working out and I love to cook. I'm always preparing healthy meals. I think it's also about giving them healthy options, which is so, so important. My little ones, especially, grocery shop with me. They're in the kitchen. They love to cook."

Part of what she believes helps guide her children down the right path is being as cautious about what comes out of her mouth as what goes into it.

"I try to never use words like 'fat' or 'diet,' " she says. "I try to choose my words carefully with my kids. It's just about making good choices and enjoying what we eat and making delicious flavorful foods that are healthy. I'm just teaching them about being healthy and strong, not about being thin."

But a mom who is always "working out super hard" deserves a break.

"I love my red wine," the Dancing with the Stars co-host says. "I think every mom deserves a glass of wine. I eat so healthy, but I listen to my body when I have cravings and I think that's why I'm able to maintain a healthy lifestyle. If I'm really craving something, I have it. The next day, I'm back on track."

Brooke Burke-Charvet doing her Kleenex duties

Michael Simon

Burke-Charvet, who began filming her own line of workout videos over the summer, isn't only healthy when it comes to her weight. She already feels "back to normal" following a thyroidectomy in December, and it shows. She was recently spotted looking radiant and smiling with husband David Charvet at brand new members only spot 41 Ocean in Santa Monica.

"I'm so blessed and fortunate with the way things worked out with my surgery," she says. "Now I'm back in the swing of things, working and feeling great."

Now that she's no longer on the mend, she wanted to help someone else who is. Burke recently teamed up with Kleenex to deliver a special care package (tissues, sanitizers, lip balm, a cozy blanket and music downloads) to an ailing Malibu sweepstakes winner during flu season.

"It's the perfect sort of recovery care package. It was a really thoughtful gift to send to somebody. The winner was really surprised," Burke says.

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Sex to burn calories? Authors expose obesity myths

Fact or fiction? Sex burns a lot of calories. Snacking or skipping breakfast is bad. School gym classes make a big difference in kids' weight.

All are myths or at least presumptions that may not be true, say researchers who reviewed the science behind some widely held obesity beliefs and found it lacking.

Their report in Thursday's New England Journal of Medicine says dogma and fallacies are detracting from real solutions to the nation's weight problems.

"The evidence is what matters," and many feel-good ideas repeated by well-meaning health experts just don't have it, said the lead author, David Allison, a biostatistician at the University of Alabama at Birmingham.

Independent researchers say the authors have some valid points. But many of the report's authors also have deep financial ties to food, beverage and weight-loss product makers — the disclosures take up half a page of fine print in the journal.

"It raises questions about what the purpose of this paper is" and whether it's aimed at promoting drugs, meal replacement products and bariatric surgery as solutions, said Marion Nestle, a New York University professor of nutrition and food studies.

"The big issues in weight loss are how you change the food environment in order for people to make healthy choices," such as limits on soda sizes and marketing junk food to children, she said. Some of the myths they cite are "straw men" issues, she said.

But some are pretty interesting.

Sex, for instance. Not that people do it to try to lose weight, but claims that it burns 100 to 300 calories are common, Allison said. Yet the only study that scientifically measured the energy output found that sex lasted six minutes on average — "disappointing, isn't it?" — and burned a mere 21 calories, about as much as walking, he said.

That's for a man. The study was done in 1984 and didn't measure the women's experience.

Among the other myths or assumptions the authors cite, based on their review of the most rigorous studies on each topic:

—Small changes in diet or exercise lead to large, long-term weight changes. Fact: The body adapts to changes, so small steps to cut calories don't have the same effect over time, studies suggest. At least one outside expert agrees with the authors that the "small changes" concept is based on an "oversimplified" 3,500-calorie rule, that adding or cutting that many calories alters weight by one pound.

—School gym classes have a big impact on kids' weight. Fact: Classes typically are not long, often or intense enough to make much difference.

—Losing a lot of weight quickly is worse than losing a little slowly over the long term. Fact: Although many dieters regain weight, those who lose a lot to start with often end up at a lower weight than people who drop more modest amounts.

—Snacking leads to weight gain. Fact: No high quality studies support that, the authors say.

—Regularly eating breakfast helps prevent obesity. Fact: Two studies found no effect on weight and one suggested that the effect depended on whether people were used to skipping breakfast or not.

—Setting overly ambitious goals leads to frustration and less weight loss. Fact: Some studies suggest people do better with high goals.

Some things may not have the strongest evidence for preventing obesity but are good for other reasons, such as breastfeeding and eating plenty of fruits and vegetables, the authors write. And exercise helps prevent a host of health problems regardless of whether it helps a person shed weight.

"I agree with most of the points" except the authors' conclusions that meal replacement products and diet drugs work for battling obesity, said Dr. David Ludwig, a prominent obesity research with Boston Children's Hospital who has no industry ties. Most weight-loss drugs sold over the last century had to be recalled because of serious side effects, so "there's much more evidence of failure than success," he said.

___

Online:

Obesity info: http://www.cdc.gov/obesity/data/trends.html

New England Journal: http://www.nejm.org

___

Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Stock futures edge lower ahead of data, earnings

NEW YORK (Reuters) - Stock index futures edged lower on Thursday ahead of data on the labor market and a slew of corporate earnings reports.

Facebook Inc shares dropped 6.7 percent to $29.14 in premarket trading. The company doubled its mobile advertising revenue in the fourth quarter but that growth trailed some of Wall Street's most aggressive estimates.

Qualcomm Inc gained 6 percent to $67.35 in premarket trading after the world's leading supplier of chips for cellphones beat analysts' expectations for quarterly profit and revenue and raised its financial targets for 2013.

Investors will look to weekly initial jobless claims data at 8:30 a.m. ET (1330 GMT) for clues on the health of the labor market ahead of the payrolls report on Friday. Economists in a Reuters survey forecast a total of 350,000 new filings compared with 330,000 in the prior week.

Also at 8:30 a.m. (1330 GMT), the Commerce Department will release December personal income and spending data; economists expect a 0.8 percent rise in income and a 0.3 percent increase in spending.

ConocoPhillips reported a drop in quarterly profit as oil and gas prices weakened and output from the third-largest U.S. oil and gas producer remained steady compared with a year ago, though it anticipated a decline in the first quarter.

Later in the session at 9:45 a.m. (1445 GMT), the Institute for Supply Management Chicago releases January index of manufacturing activity. Economists in a Reuters survey forecast a reading of 50.5 compared with 50.0 in December.

S&P 500 futures fell 1.4 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 5 points, and Nasdaq 100 futures lost 9.75 points.

The S&P 500 <.spx> is up 5.3 percent for the month, as legislators in Washington temporarily sidestepped a "fiscal cliff" of automatic tax increases and spending cuts that could have derailed the economic recovery, and amid improving economic data and better-than-expected corporate earnings.

But the benchmark index has stalled recently, hovering near the 1,500 mark over the past four sessions as investors look for more catalysts to justify further gains.

Thomson Reuters data through Wednesday morning shows that of the 192 companies in the S&P 500 that have reported earnings this season, 68.8 percent have exceeded expectations, a higher proportion than over the past four quarters and above the average since 1994.

Overall, S&P 500 fourth-quarter earnings are forecast to have risen 3.8 percent. That's above the 1.9 percent forecast from the start of the earnings season, but well below a 9.9 percent fourth-quarter earnings growth forecast on October 1, the data showed.

European shares fell as investors digested mixed earnings reports, with a warning from AstraZeneca knocking its shares while Ericsson surged after fourth-quarter results. <.eu/>

Asian shares fell slightly after rallying to multi-month highs, and more for some Southeast Asian markets, while the U.S. Federal Reserve's pledge to retain its stimulus policy undermined the dollar.

(Editing by Bernadette Baum)

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Letter from India: A Paradise for Those Who Take Offense

JAIPUR, INDIA — One of India’s favorite spectator sports is “taking offense.” People go about their lives, brushing their teeth, ironing their shirts, waiting for the bus. Then some man somewhere says something ordinary and a community erupts in what looks like joy even though they say they are offended. They go in a carnival procession to some place to announce that they are offended, often laughing and waving to the television cameras. Politicians express their deep hurt at what the man has said and demand swift action from other politicians. The police file criminal charges against the offender, and the offender then begins to say he has been misquoted, possibly by himself.

But the carnival does not wish to die down early. That was what the crowd outside the Jaipur Literature Festival was about last Saturday evening. Men were cheering, laughing and screaming as a television journalist was reporting their claim that they had been insulted by a speaker at the festival.

A few hours before, an amiable billionaire stood on the fringes of a huge audience and listened to a serious debate on the topic “Freedom of Speech and Expression.” A hilarious thought must have crossed his mind, for he chuckled, fell silent, and then said to me: “What freedom of speech? Now a masked man should rise from the audience, and tearing his mask he must reveal himself as Salman Rushdie. This debate will end right now, and everybody can go home.”

Last year, Mr. Rushdie, whose novel “The Satanic Verses” was met with protests and death threats from those who said it insulted the Prophet Muhammad, was forced to cancel his appearance at the Jaipur Literature Festival after some Muslim groups said they would be offended by his presence and the government of Rajasthan, the state whose capital is Jaipur, said it could not guarantee his safety.

But what the amiable billionaire and I did not realize was that a festival session that morning had already set in motion a chain of events that would remind everyone, once again, that India encourages discussions of free speech but not free speech itself.

In a session titled “Republic of Ideas,” one of the panel members, the sociologist Ashis Nandy, said something that only fellow Indians would immediately understand.

“It will be an undignified and vulgar statement, but the fact is that most of the corrupt come from the O.B.C., the S.C.’s and now increasingly S.T.’s,” he said, referring to “other backward classes,” “scheduled castes” and “scheduled tribes.” “As long as this is the case,” he said, “the Indian republic will survive.”

What he meant was that most of India’s corrupt are from the historically disadvantaged groups officially called the backward castes. From a purely statistical point of view, this is an unremarkable statement given that the castes he had mentioned together constitute a majority of the Indian population. So it should not come as a surprise that “most of the corrupt” would hail from most of the nation.

But then most of India’s heart surgeons do not hail from the backward castes, and that is where the substance of Mr. Nandy’s message emerged: In an unequal society, corruption provides opportunity for those who do not have the means to progress easily otherwise.

Politicians from the backward castes wasted no time in calling for Mr. Nandy’s arrest. Among the first was Mayawati, the first female Dalit to serve as a chief minister in India, who is currently facing serious corruption charges. If there were canned laughter in real life, this country would resound with deafening guffaws.

Meanwhile, Mr. Nandy’s face soon assumed the look of a man who knew he was in serious trouble. In a courtyard outside the authors’ lounge, he gave several interviews to television cameras, often telling anchors who were grilling him from studios in New Delhi that he had been researching and writing about the backward castes “before you were even born.” Since then, the police have invoked the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act against him as well as a charge of criminal intimidation.

Among those who expressed shock at Mr. Nandy’s comment were liberals attending the festival, whose conversations hinged on the evident distinction between upper-caste corruption, which involves the talent to open Swiss bank accounts and perform sophisticated forms of brokering, and backward-caste corruption, which is amateurish and carries a greater risk of being exposed. A popular young writer who did not wish to be identified told me, “I know a Dalit politician in Chennai who asks people to donate gold to him — along with the receipts.”

Even as Mr. Nandy was struggling to put out fires, the release of a Tamil-language film starring one of India’s most popular stars was blocked in the southern state of Tamil Nadu and elsewhere by Muslim groups whose members had not seen the film but claimed that it hurt their religious feelings.

India is a paradise for those who take offense because the first reaction of the state is to appease those who claim to have been offended. The law itself favors those who claim to be offended. And the police, who are so often reluctant to press charges against politicians accused of murder or men accused of rape are quick to arrive at the doorsteps of intellectuals, movie stars and other public figures who have allegedly offended people by words, actions or photographs. The fact is that India’s intellectual elite is one of the few oppressed castes left in the country today.

Manu Joseph is editor of the Indian newsweekly Open and author of the novel “The Illicit Happiness of Other People.”

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RIM to debut new BlackBerry smartphones in a heavily hyped unveiling

NEW YORK, N.Y. – Following several delays and much anticipation, the new BlackBerry smartphones will be unveiled this morning in New York.

Research In Motion (TSX:RIM), the company behind the once dominant smartphones, is holding a splashy event in Manhattan to usher in the new devices, which were originally due for release last year.

The debut is expected to showcase the device as well as provide key launch details.

That will likely include its release date, which is expected in the next four to six weeks, the phone’s features and how much it will cost.

The company says the new BlackBerry will be released first in a touchscreen version, while a keypad alternative will follow in the weeks or months afterward.

The new phone launch is RIM’s attempt to regain its position in the highly competitive North American and European smartphone markets, which are now dominated by iPhone and Android devices.

While the first hurdles to overcome are the opinions of tech analysts and investor reaction, the true measure of success — actual sales of the phones — is still weeks away.

The BlackBerry has dramatically lost marketshare in recent years after a series of blunders.

Several network outages left customers without the use of the smartphones they had come to rely on, while the BlackBerry’s hardware hasn’t received a significant upgrade in years.

RIM chief executive Thorsten Heins has already offered a glimpse of some features on the new devices. They include BlackBerry Balance technology, which allows one phone to operate as both a business and personal device entirely separate from each other.

The new BlackBerry will also let users seamlessly shift between the phone’s applications like they’re flipping between pages on a desk.

In the coming weeks, RIM will launch an advertising blitz to promote the phones, including aggressive social media campaigning, which includes plugs from celebrities on their Twitter accounts, and a 30-second advertisement on the Super Bowl, the most watched television program of the year.

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Charlize Theron Relaxes With a Girls' Dinner in West Hollywood

Caught in the Act

01/30/2013 at 06:00 AM EST

Charlize Theron shared dinner with a girlfriend at Tortilla Republic in West Hollywood on Monday.

Wearing a black blouse, blue jeans and high heels – while sporting her new short dark hair style – the Snow White and the Huntsman actress and her friend ordered up huarache hongos flatbread, housemade guacamole and jalapeño Margaritas.

Theron – who is mom to son Jackson – seemed to be enjoying her down time.

"She was relaxed and in a good mood," an onlooker tells PEOPLE.

– Jennifer Garcia

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Soldier with new arms determined to be independent

BALTIMORE (AP) — After weeks of round-the-clock medical care, Brendan Marrocco insisted on rolling his own wheelchair into a news conference using his new transplanted arms. Then he brushed his hair to one side.

Such simple tasks would go unnoticed in most patients. But for Marrocco, who lost all four limbs while serving in Iraq, these little actions demonstrate how far he's come only six weeks after getting a double-arm transplant.

Wounded by a roadside bomb in 2009, the former soldier said he could get by without legs, but he hated living without arms.

"Not having arms takes so much away from you. Even your personality, you know. You talk with your hands. You do everything with your hands, and when you don't have that, you're kind of lost for a while," the 26-year-old New Yorker told reporters Tuesday at Johns Hopkins Hospital.

Doctors don't want him using his new arms too much yet, but his gritty determination to regain independence was one of the chief reasons he was chosen to receive the surgery, which has been performed in the U.S. only seven times.

That's the message Marrocco said he has for other wounded soldiers.

"Just not to give up hope. You know, life always gets better, and you're still alive," he said. "And to be stubborn. There's a lot of people who will say you can't do something. Just be stubborn and do it anyway. Work your ass off and do it."

Dr. W.P. Andrew Lee, head of the team that conducted the surgery, said the new arms could eventually provide much of the same function as his original arms and hands. Another double-arm transplant patient can now use chopsticks and tie his shoes.

Lee said Marrocco's recovery has been remarkable, and the transplant is helping to "restore physical and psychological well-being."

Tuesday's news conference was held to mark a milestone in his recovery — the day he was to be discharged from the hospital.

Next comes several years of rehabilitation, including physical therapy that is going to become more difficult as feeling returns to the arms.

Before the surgery, he had been living with his older brother in a specially equipped home on New York's Staten Island that had been built with the help of several charities. Shortly after moving in, he said it was "a relief to not have to rely on other people so much."

The home was heavily damaged by Superstorm Sandy last fall.

"We'll get it back together. We've been through a lot worse than that," his father, Alex Marrocco, said.

For the next few months, Marrocco plans to live with his brother in an apartment near the hospital.

The former infantryman said he can already move the elbow on his left arm and rotate it a little bit, but there hasn't been much movement yet for his right arm, which was transplanted higher up.

Marrocco's mother, Michelle Marrocco, said he can't hug her yet, so he brushes his left arm against her face.

The first time he moved his left arm was a complete surprise, an involuntary motion while friends were visiting him in the hospital, he said.

"I had no idea what was going through my mind. I was with my friends, and it happened by accident," he recalled. "One of my friends said 'Did you do that on purpose?' And I didn't know I did it."

Marrocco's operation also involved a technical feat not tried in previous cases, Lee said in an interview after the news conference.

A small part of Marrocco's left forearm remained just below his elbow, and doctors transplanted a whole new forearm around and on top of it, then rewired nerves to serve the old and new muscles in that arm.

"We wanted to save his joint. In the unlucky event we would lose the transplant, we still wanted him to have the elbow joint," Lee said.

He also explained why leg transplants are not done for people missing those limbs — "it's not very practical." That's because nerves regrow at best about an inch a month, so it would be many years before a transplanted leg was useful.

Even if movement returned, a patient might lack sensation on the soles of the feet, which would be unsafe if the person stepped on sharp objects and couldn't feel the pain.

And unlike prosthetic arms and hands, which many patients find frustrating, the ones for legs are good. That makes the risks of a transplant not worth taking.

"It's premature" until there are better ways to help nerves regrow, Lee said.

Now Marrocco, who was the first soldier to survive losing all four limbs in the Iraq War, is looking forward to getting behind the wheel of his black 2006 Dodge Charger and hand-cycling a marathon.

Asked if he could one day throw a football, Dr. Jaimie Shores said sure, but maybe not like Baltimore Ravens quarterback Joe Flacco.

"Thanks for having faith in me," Marrocco interjected, drawing laughter from the crowd.

His mother said Marrocco has always been "a tough cookie."

"He's not changed that, and he's just taken it and made it an art form," Michelle Marrocco said. "He's never going to stop. He's going to be that boy I knew was going to be a pain in my butt forever. And he's going to show people how to live their lives."

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Associated Press Chief Medical Writer Marilynn Marchione in Milwaukee and AP writer David Dishneau in Hagerstown, Md., contributed to this report.

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