  We report the first results of time-dependent density functional simulations
of magnetic properties of Fe and Ni at finite temperatures. They reveal the
existence of local moments in Ni above the Curie temperature, coupled to strong
short range order. In Fe the short range order is also present to a lesser
extent but spin wave like excitations persist in both materials well above the
Curie temperature in the paramagnetic state. The prevailing view of magnetic
order should be reconsidered in light of these findings.
