World shares slide on Italy vote, German Bunds gain

LONDON (Reuters) - Italy's inconclusive election result sparked a selloff on world equity markets on Tuesday and sent safe-haven German bond yields sharply lower as investors feared a resurgence of the euro zone debt crisis.


The euro briefly touched a seven-week low against the dollar to trade near $1.30 after no clear majority emerged from the vote, raising the prospect of weeks of political uncertainty and potentially another election later in the year.


"This is the worst possible outcome from the market's point of view," said Alessandro Tentori, Citigroup's head of global rates.


Yields on 10-year Italian government bonds jumped 45 basis points to 4.82 percent while Italy's main stock market index <.ftmib> tumbled five percent with shares in some of the country's major banks down over 10 percent.


Other European markets were also slumping, with London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> down as much as 2.5 percent. The pan-European FTSEurofirst 300 index <.fteu3> was down 1.3 percent. <.eu/>


Italy's centre-left bloc led by Pier Luigi Bersani narrowly won control of the lower house but no party or coalition appeared to be in a position to take a majority in the equally powerful Senate. A party led by the anti-establishment comic Beppe Grillo gained more than 25 percent of the vote.


"The very close result and the stalemate between the two houses of parliament point to a non-trivial risk of new elections," Holger Schmieding, chief economist at Berenberg Bank, adding there was also a small risk that new elections could lead to a referendum in Italy on the euro.


The euro steadied at around $1.3080, up about 0.15 percent after falling as low as $1.3039, its lowest since January 10.


The focus will now be on an Italian treasury bill auction later, when Rome's borrowing costs could rise.


Ahead of the auction investors were showing a clear preference for safety, with the yield down 8 basis points at 1.5 percent on 10-year German bonds, while riskier Spanish and Portuguese bonds were coming under heavy selling pressure.


Elsewhere investors were awaiting testimony later in the day from U.S. Federal Reserve Chairman Ben Bernanke for further clues to when the central bank intends to slow down or stop its bond-buying program.


Financial markets were rattled last week by minutes of the Fed's January meeting showing some Fed officials were thinking of scaling back its monetary stimulus earlier than expected.


U.S. stock futures were flat to suggest a cautious Wall Street start. <.l><.eu><.n/>


(Reporting by Richard Hubbard. Editing by Alastair Macdonald)



Read More..

Vatican 'Gay lobby'? Probably not






STORY HIGHLIGHTS


  • Benedict XVI not stepping down under pressure from 'gay lobby,' Allen says

  • Allen: Benedict is a man who prefers the life of the mind to the nuts and bolts of government

  • However, he says, much of the pope's time has been spent putting out fires




Editor's note: John L. Allen Jr. is CNN's senior Vatican analyst and senior correspondent for the National Catholic Reporter.


(CNN) -- Suffice it to say that of all possible storylines to emerge, heading into the election of a new pope, sensational charges of a shadowy "gay lobby" (possibly linked to blackmail), whose occult influence may have been behind the resignation of Benedict XVI, would be right at the bottom of the Vatican's wish list.


Proof of the Vatican's irritation came with a blistering statement Saturday complaining of "unverified, unverifiable or completely false news stories," even suggesting the media is trying to influence the papal election.


Two basic questions have to be asked about all this. First, is there really a secret dossier about a network of people inside the Vatican who are linked by their sexual orientation, as Italian newspaper reports have alleged? Second, is this really why Benedict XVI quit?



John L. Allen Jr.

John L. Allen Jr.



The best answers, respectively, are "maybe" and "probably not."


It's a matter of record that at the peak of last year's massive Vatican leaks crisis, Benedict XVI created a commission of three cardinals to investigate the leaks. They submitted an eyes-only report to the pope in mid-December, which has not been made public.


It's impossible to confirm whether that report looked into the possibility that people protecting secrets about their sex lives were involved with the leaks, but frankly, it would be surprising if it didn't.


There are certainly compelling reasons to consider the hypothesis. In 2007, a Vatican official was caught by an Italian TV network on hidden camera arranging a date through a gay-oriented chat room, and then taking the young man back to his Vatican apartment. In 2010, a papal ceremonial officer was caught on a wiretap arranging liaisons through a Nigerian member of a Vatican choir. Both episodes played out in full public view, and gave the Vatican a black eye.









Pope Benedict XVI































HIDE CAPTION





<<


<





1




2




3




4




5




6




7




8




9




10




11




12




13




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15




16




17




18




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>


>>









In that context, it would be a little odd if the cardinals didn't at least consider the possibility that insiders leading a double life might be vulnerable to pressure to betray the pope's confidence. That would apply not just to sex, but also potential conflicts of other sorts too, such as financial interests.


Vatican officials have said Benedict may authorize giving the report to the 116 cardinals who will elect his successor, so they can factor it into their deliberations. The most immediate fallout is that the affair is likely to strengthen the conviction among many cardinals that the next pope has to lead a serious house-cleaning inside the Vatican's bureaucracy.


It seems a stretch, however, to suggest this is the real reason Benedict is leaving. For the most part, one should probably take the pope at his word, that old age and fatigue are the motives for his decision.


That said, it's hard not to suspect that the meltdowns and controversies that have dogged Benedict XVI for the last eight years are in the background of why he's so tired. In 2009, at the height of another frenzy surrounding the lifting of the excommunication of a Holocaust-denying traditionalist bishop, Benedict dispatched a plaintive letter to the bishops of the world, voicing hurt for the way he'd been attacked and apologizing for the Vatican's mishandling of the situation.


Even if Benedict didn't resign because of any specific crisis, including this latest one, such anguish must have taken its toll. Benedict is a teaching pope, a man who prefers the life of the mind to the nuts and bolts of government, yet an enormous share of his time and energy has been consumed trying to put out internal fires.


It's hard to know why Benedict XVI is stepping off the stage, but I doubt it is because of a "gay lobby."


Follow us on Twitter @CNNOpinion.


Join us on Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of John L. Allen Jr.






Read More..

Chicago could see 6 inches of snow in Tuesday storm









Abundant sunshine and temperatures close to 50 degrees in the past few days teased sober Midwestern sensibilities.


Encouraged perhaps by spring training photos, some people deliberately ventured outside. Some even hopped on bicycles for spins. Maybe they dared to think that spring could break a little early this year.


But on Tuesday morning, for the second time in less than a week, a blustery mix of freezing rain, sleet and snow is forecast to hit the Chicago area. Accumulations could reach 6 inches.








Sure, weather predictions being what they are around here, many will shrug off the warnings and be brazenly optimistic. But it might be best to recall the adage that those who ignore history are sure to be victimized by it.


Chicago has plenty of late-season snow history and, regardless of what materializes, the prudent will keep their salt dry, snow shovels handy and snowblowers primed for the next couple of months.


National Weather Service records from 2011 show that 54 of the previous 139 years — nearly 40 percent — experienced at least one day with an inch or more of snowfall on or after March 25. A total of 17 of those years brought multiple days with more than an inch of snow to Chicago.


One year, 1926, included six days when more than an inch of snow fell after March 25.


And, like some cruel trick, the later in the season the snow falls, the heavier and deadlier it tends to be. On the other hand, it also generally melts faster.


Among the grimmest of those late snowfalls was the deadly storm of April 15-17, 1961, when a rainy low-pressure system stalled and kept looping over the Chicago region. It transformed cold rain into nearly 7 inches of snow. Six people died from the storm's effects; four were victims of snow-shoveling heart attacks.


That storm remains the latest major snowfall of 6 inches or more in the Chicago area.


More recently, the area was hit with nearly 2 inches of snow on March 27, 2008. On March 29, 2009, 1.2 inches accumulated. A week later, more than 2 inches of snow fell.


Tuesday's forecast, which calls for heavier snow north of Interstate 80 and winds whipping up to 35 mph, weighed on Jason Marker's mind while he stood at the Downers Grove Metra station Monday.


"I have a job interview tomorrow," said Marker, 30, of Downers Grove. "It's going to be tough getting there because I have to ride my bike."


Still, he said the winter has been a moderate one so far, "but maybe it will catch up with us tomorrow."


Ashley Feuillan and Bernard Thomas, also of Downers Grove, will be commuting in opposite directions Tuesday morning. Thomas commutes to a job in Aurora, which he starts at 7 a.m. Feuillan hops the train to Columbia College Chicago three times a week.


Both said they plan to leave earlier Tuesday.


"I actually like the snow," said Feuillan, 24, "but it can be a hassle when you're trying to get someplace."


Rather than focusing on what could be a nasty storm, Thomas, 40, kept an upbeat perspective.


"It hasn't been a bad winter," he said. "We haven't really had any big snowstorms."


If the forecast is accurate, Jake Weimer could receive a little relief.





Read More..

Yen slumps on Bank of Japan report, eyes on Italy vote


LONDON (Reuters) - The yen hit a 33-month low against the dollar on reports that a strong supporter of aggressive monetary easing is likely to head the Bank of Japan, while Italian assets gained as markets await the outcome of national elections.


Britain's pound also slumped against the dollar, hitting a 2-1/2 year low, following Moody's downgrade of the country's prized triple-A rating late on Friday.


Voting closes in Italy at 1400 GMT, with exit polls due soon after. An inconclusive result would trigger a sell-off in Italian bonds and stocks and renew concerns about the euro.


"If we don't have an indication of a clear winner, there will be pressure on Italian bond yields," said Ishaq Siddiqi, market strategist with trading house ETX Capital.


European shares extended their slow recovery from multi-month lows in early trade as investors kept a close eye on Italy, with the FTSEurofirst 300 <.fteu3> up 0.2 percent at 1,167.55 points.


Reports that the Japanese government was likely to nominate Asian Development Bank President Haruhiko Kuroda as the next central bank governor, along with an academic who has criticized the central bank as deputy governor, sent the yen down to 94.77 to the dollar, lows not seen since May 2010.


Tokyo shares rose 2.4 percent to a 53-month high <.n225> on the news, but gains in other Asian markets were limited by data showing growth in China's giant manufacturing sector in February pulled back from two-year highs.


Sterling fell to a 2-1/2 year trough against the dollar at $1.5073 and a 16-month low against the euro of 87.75 pence after the Moody's downgrade, although the UK's main share index <.ftse> rose.


British government June bond futures touched a low of 115.50, some 56 ticks down from Friday's close as the market reacted to the ratings loss.


(Additional reporting by Clement Tan in Hong Kong; Editing by Will Waterman)



Read More..

A fickle format that produces the right winner


MARANA, Ariz. (AP) — For such a fickle format, the Match Play Championship sure does seem to produce the right winner.


Matt Kuchar had reason to pack a full suitcase for the high desert of Arizona based on his record in this tournament. He is the only player to reach the quarterfinals each of the last three years, and he wound up losing to the eventual champion the previous two times.


Sunday he went the distance to capture his first World Golf Championship.


Kuchar became only the second player in the 15-year history of the Match Play to win without ever seeing the 18th hole except in a practice round, or when the courtesy van ferrying him in after winning a match drove past the closing hole on the way to the clubhouse.


He played 96 holes in six rounds and only trailed after four of them.


He built a 4-up lead over Hunter Mahan in the championship match and held off a fierce rally on the back nine at Dove Mountain to close him out, 2 and 1, and add his name to an impressive list of winners.


"Match play I find to be such an amazing, unique format, so much fun to play and so much pressure," Kuchar said. "It seems like each hole there's so much momentum riding and so much pressure on every hole. To come out on top after six matches of playing the top 64 guys in the world, it's an incredible feeling."


One reason the PGA Championship abandoned match play in 1958 was that the field was cut in half after each round, giving the crowd fewer players to watch. And it was miserable for television when the biggest stars were eliminated.


That much hasn't changed.


Tiger Woods left on Thursday for the second year in a row, and the only reason he lasted that long was because of a snowstorm on Wednesday. He lost in the first round, as did Rory McIlroy, the No. 1 player in the world. By the weekend, the highest seed remaining was Masters champion Bubba Watson.


But a closer look will show that this tournament is won by some of the best in match play.


Kuchar's record improved to 15-3.


His last win came at the expense of Mahan, who had won 11 straight matches in this event — 12 overall dating to his singles win in the 2011 Presidents Cup — and had a staggering streak of 169 holes without trailing.


The previous four winners were Luke Donald, Ian Poulter, Geoff Ogilvy and Woods, all of them considered the best in the head-to-head game that many believe to be the purest form of golf.


Donald has a 17-8 record in this tournament alone, which doesn't speak to his prowess in the Ryder Cup. Poulter had a 19-3-2 record in match play worldwide the last three years, though he wound up losing twice in one day on Sunday — to Mahan in the semifinals, and to Jason Day in a consolation match.


Ogilvy was disheartened at failing to qualify this year, and it's easy to see why. He has a 20-5 record at the Match Play, with two wins and three trips to the championship match. Ogilvy has never lost in singles in the Presidents Cup, with two of those wins over Steve Stricker.


Woods, of course, needs no introduction when it comes to Match Play. He won six straight USGA titles as an amateur, and even with a recent slump at Dove Mountain — he has failed to get out of the second round since he won in 2008 — his overall record in this format as a pro is 48-15-2.


Mahan had to take down Poulter in the semifinal, and it was no picnic. Mahan twice hit tough chips to within 6 feet to win a hole, and he chipped in from 70 feet behind the 12th green to grab a 3-up lead and coast in against the Englishman, who was off his game in that match. As tough as Poulter is in match play, Mahan knew that Kuchar would be just as difficult in his own way.


"It was definitely a different vibe, for sure," Mahan said. "Kooch and I had more conversation on the first hole than I did with Poulter all day. But that's the difference between the two guys. There's nothing wrong with it either way. Poults is very steely out there. He motivates himself in a different way than Kooch does."


Poulter and Mahan learned an old lesson the hard way. There is no good time in this tournament to have a bad day. Some players can get away with one in the early rounds, but not late in the bracket when those who are left got there for a reason.


When Mahan hit a weak pitch up the slope on No. 4 and made bogey, he paid for it more ways than one. It was the first time he trailed in any match since the sixth hole of the opening round last year. And he trailed Kuchar, who doesn't make many mistakes.


Kuchar built a 4-up lead at the turn on the strength of two good birdies and two bad bogeys from Mahan, but the defending champion fought back. He won the next two holes, both into a fierce, cold wind, which the cut deficit in half and gave Mahan loads of momentum. And then he hit an 8-iron into 10 feet on the par-3 12th.


That's where the match turned in Kuchar's favor. He followed with an 8-iron to just inside 15 feet, still a difficult putt.


"The shot was certainly good, but the putt was really crucial, and when that went in, I felt like I was still in control of the match," Kuchar said. "Had that putt not gone in, it would have been only a 1-up lead, and I think the match was in anybody's hands at that point."


Mahan kept fighting and trailed by one hole when they got to the 17th, and an exciting back nine ended with a thud. Both hit into the fairway bunker on 17, but Mahan's ball was slightly sunk in the sand, and his approach never came close to reaching the green. Instead, it rolled through a patch of desert until it lodged in a bush. Mahan took four shots to reach the green and conceded the match.


Kuchar won for the fifth time in his career, pocketing just over $3.2 million for his last two titles — the WGC and The Players Championship. He moved to No. 8 in the world and is sure to be looked up on as a contender in the majors this year.


And now, no one will be deceived by Kuchar's easy smile and happy-go-lucky nature when they return to Dove Mountain next year.


"He does it differently," Mahan said. "He's more like a fuzzier, Peter Jacobsen kind of guy who likes to talk. He's super competitive, there's no doubt about it. He plays golf to win, and he works hard at it."


Read More..

Red Planet Mars Not So Red Beneath the Surface






The Red Planet‘s signature color is only skin deep.


NASA’s Mars rover Curiosity drilled 2.5 inches (6.4 centimeters) into a Red Planet outcrop called “John Klein” earlier this month, revealing rock that’s decidedly gray rather than the familiar rusty orange of the Martian surface.






“We’re sort of seeing a new coloration for Mars here, and it’s an exciting one to us,” Joel Hurowitz, sampling system scientist for Curiosity at NASA’s Jet Propulsion Laboratory (JPL) in Pasadena, Calif., told reporters Wednesday (Feb. 20).


Mars gets its red coloration from a surface layer of dust that has undergone a rusting process, during which iron was oxidized.


Curiosity’s hammering drill allows scientists to peer beneath that dusty veneer for the first time ever, and the early views at John Klein — where the rover performed its first full-up drilling and sample-collection operation — are intriguing, rover team members said.


The gray powder Curiosity collected “may preserve some indication of what iron was doing in these samples without the effect of some later oxidative process that would’ve rusted the rocks into this orange color that is sort of typical of Mars,” Hurowitz said.


Curiosity landed inside the Red Planet’s huge Gale Crater last August, kicking off a two-year prime mission to determine whether the area could ever have supported microbial life. The 1-ton rover carries 10 different science instruments and 17 cameras, along with other tools such as its arm-mounted, rock-boring drill.


The drill was the last of Curiosity’s gear to get vetted and tested on the Red Planet, and the rover team is thrilled that its first run went so smoothly.


“It’s a real big turning point for us,” said Curiosity lead scientist John Grotzinger, a geologist at Caltech in Pasadena.


Snagging rock powder from the depths of John Klein — which shows signs of long-ago exposure to liquid water — also cements Curiosity’s place in the history books, rover team members said.


“This is the first time any robot, fixed or mobile, has drilled into a rock to collect a sample on Mars,” said JPL’s Louise Jandura, sample system chief engineer for Curiosity. “In fact, this is the first time any rover has drilled into a rock to collect a sample anywhere but on Earth.”


Follow SPACE.com senior writer Mike Wall on Twitter @michaeldwall or SPACE.com @Spacedotcom. We’re also on Facebook and Google+


Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Space and Astronomy News Headlines – Yahoo! News





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Read More..

Vatican 'Gay lobby'? Probably not






STORY HIGHLIGHTS


  • Benedict XVI not stepping down under pressure from 'gay lobby,' Allen says

  • Allen: Benedict is a man who prefers the life of the mind to the nuts and bolts of government

  • However, he says, much of the pope's time has been spent putting out fires




Editor's note: John L. Allen Jr. is CNN's senior Vatican analyst and senior correspondent for the National Catholic Reporter.


(CNN) -- Suffice it to say that of all possible storylines to emerge, heading into the election of a new pope, sensational charges of a shadowy "gay lobby" (possibly linked to blackmail), whose occult influence may have been behind the resignation of Benedict XVI, would be right at the bottom of the Vatican's wish list.


Proof of the Vatican's irritation came with a blistering statement Saturday complaining of "unverified, unverifiable or completely false news stories," even suggesting the media is trying to influence the papal election.


Two basic questions have to be asked about all this. First, is there really a secret dossier about a network of people inside the Vatican who are linked by their sexual orientation, as Italian newspaper reports have alleged? Second, is this really why Benedict XVI quit?



John L. Allen Jr.

John L. Allen Jr.



The best answers, respectively, are "maybe" and "probably not."


It's a matter of record that at the peak of last year's massive Vatican leaks crisis, Benedict XVI created a commission of three cardinals to investigate the leaks. They submitted an eyes-only report to the pope in mid-December, which has not been made public.


It's impossible to confirm whether that report looked into the possibility that people protecting secrets about their sex lives were involved with the leaks, but frankly, it would be surprising if it didn't.


There are certainly compelling reasons to consider the hypothesis. In 2007, a Vatican official was caught by an Italian TV network on hidden camera arranging a date through a gay-oriented chat room, and then taking the young man back to his Vatican apartment. In 2010, a papal ceremonial officer was caught on a wiretap arranging liaisons through a Nigerian member of a Vatican choir. Both episodes played out in full public view, and gave the Vatican a black eye.









Pope Benedict XVI































HIDE CAPTION





<<


<





1




2




3




4




5




6




7




8




9




10




11




12




13




14




15




16




17




18




19




20













>


>>









In that context, it would be a little odd if the cardinals didn't at least consider the possibility that insiders leading a double life might be vulnerable to pressure to betray the pope's confidence. That would apply not just to sex, but also potential conflicts of other sorts too, such as financial interests.


Vatican officials have said Benedict may authorize giving the report to the 116 cardinals who will elect his successor, so they can factor it into their deliberations. The most immediate fallout is that the affair is likely to strengthen the conviction among many cardinals that the next pope has to lead a serious house-cleaning inside the Vatican's bureaucracy.


It seems a stretch, however, to suggest this is the real reason Benedict is leaving. For the most part, one should probably take the pope at his word, that old age and fatigue are the motives for his decision.


That said, it's hard not to suspect that the meltdowns and controversies that have dogged Benedict XVI for the last eight years are in the background of why he's so tired. In 2009, at the height of another frenzy surrounding the lifting of the excommunication of a Holocaust-denying traditionalist bishop, Benedict dispatched a plaintive letter to the bishops of the world, voicing hurt for the way he'd been attacked and apologizing for the Vatican's mishandling of the situation.


Even if Benedict didn't resign because of any specific crisis, including this latest one, such anguish must have taken its toll. Benedict is a teaching pope, a man who prefers the life of the mind to the nuts and bolts of government, yet an enormous share of his time and energy has been consumed trying to put out internal fires.


It's hard to know why Benedict XVI is stepping off the stage, but I doubt it is because of a "gay lobby."


Follow us on Twitter @CNNOpinion.


Join us on Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of John L. Allen Jr.






Read More..

State lawmaker's bill seeks to limit use of drones to fight crime









SPRINGFIELD — As the Obama administration comes under fire for its use of unmanned drones in foreign lands, a state senator is pressing to have Illinois join the national debate on whether states should regulate drones to ensure the high-tech snooping isn't used to invade the privacy of ordinary citizens on U.S. soil.


Democratic Sen. Daniel Biss has introduced legislation that would require police to get a search warrant before using a drone to gather evidence. Along with banning the use of lethal and nonlethal weapons on the drones — except in emergencies — the proposal would require information a drone gathers to be destroyed unless it is part of an investigation.


Under the legislation, Illinois would step up to combat the issue of drones flying over U.S. airspace. President Barack Obama signed a Federal Aviation Administration mandate last year requesting the agency integrate unmanned aircraft into the national system.





With the possibility of drones becoming the latest aircraft traversing the skies, Biss said this is "the exact moment states should be looking into" unmanned aircraft legislation.


"We're heading into a world where technology surveillance is unreal," the Evanston lawmaker said.


More than 20 states are pursuing similar legislation, according to the National Conference of State Legislatures. While some states are trying to regulate unmanned aircraft use, others are trying to impose moratoriums that ban them, Biss said.


Virginia lawmakers approved a two-year moratorium on the aircraft in the state last week to allow time for a study. The legislation awaits the governor's signature.


In Illinois, authorities in Cook and Champaign counties are considering the use of drones to combat crime.


Cook County Sheriff Tom Dart is in the "exploratory stages" of looking into drone technology for future operations, spokesman Frank Bilecki said. If the county were to employ any drones, they would be "specifically for law enforcement use" and not to invade personal privacy, Bilecki said.


Dart's thinking is that drones would be cheaper to use and cost less taxpayer money than using helicopters for aerial operations, Bilecki said. A small, unmanned aircraft used for search and rescue can cost on average between $38,000 and $50,000, much less than in years past, said James Hill, president of AirCover Integrated Solutions, a California-based drone manufacturer.


To gain traction at the Capitol, Biss potentially might have to overcome resistance from law enforcement leaders. To that end, Biss said he's talking with police chiefs, the Illinois State Police and other police agencies to iron out any wrinkles.


The American Civil Liberties Union thinks the time is ripe to look at drone regulations.


"Technology is changing," said Ed Yohnka, spokesman for the ACLU's Illinois chapter. "And the idea is we need to get ahead of the technology to be better prepared."


raguerrero2@tribune.com



Read More..

Cuban leader Raul Castro says he will retire in 2018


HAVANA (Reuters) - Cuban President Raul Castro announced on Sunday he will step down from power after his second term ends in 2018, and the new parliament named a 52-year-old rising star to become his first vice president and most visible successor.


"This will be my last term," Castro, 81, said shortly after the National Assembly elected him to a second five-year tenure.


In a surprise move, the new parliament also named Miguel Diaz-Canel as first vice president, meaning he would take over if Castro cannot serve his full term.


Diaz-Canel is a member of the political bureau who rose through the Communist Party ranks in the provinces to become the most visible possible successor to Castro.


Raul Castro starts his second term immediately, leaving him free to retire in 2018, aged 86.


Former President Fidel Castro joined the National Assembly meeting on Sunday, in a rare public appearance. Since falling ill in 2006 and ceding the presidency to his brother, the elder Castro, 86, has given up official positions except as a deputy in the National Assembly.


The new government will almost certainly be the last headed up by the Castro brothers and their generation of leaders who have ruled Cuba since they swept down from the mountains in the 1959 revolution.


Cubans and foreign governments were keenly watching whether any new, younger faces appeared among the Council of State members, in particular its first vice president and five vice presidents.


Their hopes were partially fulfilled with Diaz-Canel's ascension. He replaces former first vice president, Jose Machado Ventura, 82, who will continue as one of five vice presidents.


Commander of the Revolution Ramiro Valdes, 80, and Gladys Bejerano, 66, the comptroller general, were also re-elected as vice presidents.


Two other newcomers, Mercedes Lopez Acea, 48, first secretary of the Havana communist party, and Salvador Valdes Mesa, 64, head of the official labor federation, also earned vice presidential slots.


Esteban Lazo, a 68-year-old former vice president and member of the political bureau of the Communist Party, left his post upon being named president of the National Assembly on Sunday. He replaced Ricardo Alarcon, who served in the job for 20 years.


Six of the Council's top seven members sit on the party's political bureau which is also lead by Castro.


Castro's announcement came as little surprise to Cuban exiles in Miami.


"It's no big news. It would have been big news if he resigned today and called for democratic elections," said Alfredo Duran, a Cuban-American lawyer and moderate exile leader in Miami who supports lifting the U.S. trade embargo against Cuba. "I wasn't worried about him being around after 2018," he added.


The National Assembly meets for just a few weeks each year and delegates its legislative powers between sessions to the 31-member Council of State, which also functions as the executive through the Council of Ministers it appoints.


Eighty percent of the 612 deputies, who were elected in an uncontested vote February 3, were born after the revolution.


EFFORT TO PROMOTE YOUNGER GENERATION


Raul Castro, who officially replaced his ailing brother as president in 2008, has repeatedly said senior leaders should hold office for no more than two five-year terms.


"Although we kept on trying to promote young people to senior positions, life proved that we did not always make the best choice," Castro said at a Communist Party Congress in 2011.


"Today, we are faced with the consequences of not having a reserve of well-trained replacements ... It's really embarrassing that we have not solved this problem in more than half a century."


Speaking on Sunday, Castro hailed the composition of the new Council of State as an example of what he had said needed to be accomplished.


"Of the 31 members, 41.9 percent are women and 38.6 percent are black or of mixed race. The average age is 57 years and 61.3 percent were born after the triumph of the revolution," he said.


The 2011 party summit adopted a more than 300-point plan aimed at updating Cuba's Soviet-style economic system, designed to transform it from one based on collective production and consumption to one where individual effort and reward play a far more important role.


Across-the-board subsidies are being replaced by a comprehensive tax code and targeted welfare.


Raul Castro has encouraged small businesses and cooperatives in retail services, farming, minor manufacturing and retail, and given more autonomy to state companies which still dominate the economy.


The party plan also includes an opening to more foreign investment.


At the same time, Cuba continues to face a U.S. administration bent on restoring democracy and capitalism to the island and questions about the future largess of oil rich Venezuela with strategic ally Hugo Chavez battling cancer.


(Editing by Kieran Murray and Vicki Allen)



Read More..

Investors face another Washington deadline

NEW YORK (Reuters) - Investors face another Washington-imposed deadline on government spending cuts next week, but it's not generating the same level of fear as two months ago when the "fiscal cliff" loomed large.


Investors in sectors most likely to be affected by the cuts, like defense, seem untroubled that the budget talks could send stocks tumbling.


Talks on the U.S. budget crisis began again this week leading up to the March 1 deadline for the so-called sequestration when $85 billion in automatic federal spending cuts are scheduled to take effect.


"It's at this point a political hot button in Washington but a very low level investor concern," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. The fight pits President Barack Obama and fellow Democrats against congressional Republicans.


Stocks rallied in early January after a compromise temporarily avoided the fiscal cliff, and the Standard & Poor's 500 index <.spx> has risen 6.3 percent since the start of the year.


But the benchmark index lost steam this week, posting its first week of losses since the start of the year. Minutes on Wednesday from the last Federal Reserve meeting, which suggested the central bank may slow or stop its stimulus policy sooner than expected, provided the catalyst.


National elections in Italy on Sunday and Monday could also add to investor concern. Most investors expect a government headed by Pier Luigi Bersani to win and continue with reforms to tackle Italy's debt problems. However, a resurgence by former leader Silvio Berlusconi has raised doubts.


"Europe has been in the last six months less of a topic for the stock market, but the problems haven't gone away. This may bring back investor attention to that," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.


OPTIONS BULLS TARGET GAINS


The spending cuts, if they go ahead, could hit the defense industry particularly hard.


Yet in the options market, bulls were targeting gains in Lockheed Martin Corp , the Pentagon's biggest supplier.


Calls on the stock far outpaced puts, suggesting that many investors anticipate the stock to move higher. Overall options volume on the stock was 2.8 times the daily average with 17,000 calls and 3,360 puts traded, according to options analytics firm Trade Alert.


"The upside call buying in Lockheed solidifies the idea that option investors are not pricing in a lot of downside risk in most defense stocks from the likely impact of sequestration," said Jared Woodard, a founder of research and advisory firm condoroptions.com in Forest, Virginia.


The stock ended up 0.6 percent at $88.12 on Friday.


If lawmakers fail to reach an agreement on reducing the U.S. budget deficit in the next few days, a sequester would include significant cuts in defense spending. Companies such as General Dynamics Corp and Smith & Wesson Holding Corp could be affected.


General Dynamics Corp shares rose 1.2 percent to $67.32 and Smith & Wesson added 4.6 percent to $9.18 on Friday.


EYES ON GDP DATA, APPLE


The latest data on fourth-quarter U.S. gross domestic product is expected on Thursday, and some analysts predict an upward revision following trade data that showed America's deficit shrank in December to its narrowest in nearly three years.


U.S. GDP unexpectedly contracted in the fourth quarter, according to an earlier government estimate, but analysts said there was no reason for panic, given that consumer spending and business investment picked up.


Investors will be looking for any hints of changes in the Fed's policy of monetary easing when Fed Chairman Ben Bernake speaks before congressional committees on Tuesday and Wednesday.


Shares of Apple will be watched closely next week when the company's annual stockholders' meeting is held.


On Friday, a U.S. judge handed outspoken hedge fund manager David Einhorn a victory in his battle with the iPhone maker, blocking the company from moving forward with a shareholder vote on a controversial proposal to limit the company's ability to issue preferred stock.


(Additional reporting by Doris Frankel; Editing by Kenneth Barry)



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Dozens hurt after crash debris hits Daytona stands


DAYTONA BEACH, Fla. (AP) — With the start of the Daytona 500 just hours away, NASCAR officials still have some cleaning up to do amid growing questions about fan safety.


The season opener will go off as planned Sunday less than 24 hours after at least 33 people were injured when a car flew into the fence during a NASCAR race at Daytona International Speedway, sending a tire and large pieces of debris sailing into the stands.


"Just seeing the carnage on the racetrack, it was truly unbelievable," driver Justin Allgaier said.


The final-lap accident Saturday marred the second-tier Nationwide Series race on the eve of a spectacle often called the Super Bowl of motorsports. Late into the night, track workers were scrambling to repair a huge section of fence that separates fans from the high-speed track.


Speedway President Joie Chitwood III has a news conference scheduled for Sunday morning to give the latest update on repairs and any safety changes that could be made before the "Great American Race."


The 12-car crash began about 200 feet from the start-finish line as the front-runners approached the checkered flag. Leader Regan Smith attempted to block Brad Keselowski for the win, triggering a horrific pileup that could have been much worse.


The front end of Larson's No. 32 car was sheared off, and his burning engine wedged through a gaping hole in the fence. Parts and pieces of his car sprayed into the stands, including a tire that cleared the top of the fence and landed midway up the spectator section closest to the track.


The 20-year-old Larson stood in shock a few feet from his car as fans in the stands waved frantically for help. Smoke from the burning engine briefly clouded the area, and emergency vehicles descended on the scene.


Ambulance sirens could be heard wailing behind the grandstands at a time the race winner would typically be doing celebratory burnouts.


"It was freaky. When I looked to my right, the accident happened," Rick Harpster of Orange Park said. "I looked over and I saw a tire fly straight over the fence into the stands, but after that I didn't see anything else. That was the worst thing I have seen, seeing that tire fly into the stands. I knew it was going to be severe."


Shannan Devine of Egg Harbor Township, N.J., was sitting about 250 feet from where the car smashed into the fence and could see plumes of smoke directly in front of her.


"I didn't know if there was a car on top of people. I didn't know what to think," she said. "I'm an emotional person and I immediately started to cry. It was very scary. Absolutely scary. I love the speed of the sport. But it's so dangerous."


Chitwood said 14 fans were treated on site and 14 others were taken to hospitals. Local officials said 19 people were taken to neighboring hospitals, including two who were in critical but stable condition.


Because of potential injuries, race winner Tony Stewart skipped the traditional victory celebration.


Stewart, who won for the 19th time at Daytona and seventh time in the last nine season-opening Nationwide races, was in no mood to celebrate.


"The important thing is what is going on on the frontstretch right now," said Stewart, a three-time NASCAR champion. "We've always known, and since racing started, this is a dangerous sport. But it's hard. We assume that risk, but it's hard when the fans get caught up in it.


"So as much as we want to celebrate right now and as much as this is a big deal to us, I'm more worried about the drivers and the fans that are in the stands right now because that was ... I could see it all in my mirror, and it didn't look good from where I was at."


There were at least five stretchers carrying injured people out of the stands, and a helicopter flew overhead.


Officials turned their attention to the track and the wreckage after injured were treated.


A forklift plucked Larson's engine out of the fence, and workers carried the tire out of the stands.


It was a chaotic finish to a race that was stopped for nearly 20 minutes five laps from the finish by a 13-car accident that sent driver Michael Annett to a hospital. His Richard Petty Motorsports team said he would be held overnight with bruising to his chest.


The race resumed with three laps to go, and the final accident occurred with Smith trying to hold off Keselowski through the final turn.


"It's Daytona. You want to go for the win here," Smith said. "I don't know how you can play it any different, other than concede second place, and I wasn't willing to do that today. Our job is to put them in position to win, and it was, and it didn't work out."


As the cars began wrecking all around Smith and Keselowski, Stewart slid through for the win, but Larson plowed into Keselowski and his car was sent airborne into the fence. When Larson's car came to a stop, it was missing its entire front end. Larson, who made his Daytona debut this week, stood with his hands on his hips before finally making the mandatory trip to the care center.


"I took a couple big hits there and saw my engine was gone," Larson said. "Just hope everybody's all right."


It appeared fans were lined up along the fence when Larson's car got airborne. But Chitwood said there was a buffer, adding there would be no changes to the seating before the Daytona 500.


"We don't anticipate moving any of our fans," Chitwood said. "We had our safety protocols in place. Our security maintained a buffer that separates the fans from the fencing area. With the fencing being prepared tonight to our safety protocols, we expect to go racing tomorrow with no changes."


Keselowski watched a replay of the accident and said it could cast a pall on the Daytona 500.


"I think until we know exactly the statuses of everyone involved, it's hard to lock yourself into the 500," Keselowski said. "Hopefully, we'll know soon and hopefully everyone's OK. And if that's the case, we'll staring focusing on Sunday."


___


AP Sports Writers Jenna Fryer, Dan Gelston and Jerome Minerva in Daytona Beach and Associated Press writer Jennifer Kay in Miami contributed to this report.


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The Oscars just don't matter


















Best: Billy Crystal


Best: Johnny Carson


Best: Steve Martin and Alec Baldwin


Best: Bob Hope


Best: Whoopi Goldberg


Honorable mention: Jon Stewart


Worst: David Letterman


Worst: Chris Rock


Worst: Chevy Chase


Worst: Jerry Lewis


Worst: Anne Hathaway and James Franco








STORY HIGHLIGHTS


  • Dean Obeidallah would love an Oscar, but thinks they mostly don't matter in long run

  • He says telecast not the draw it once was, and winning doesn't mean bigger box office

  • He says for stars win often doesn't mean work; award season makes Oscars anticlimatic

  • Obeidallah: Why not give Oscar awards first, then follow with smaller awards later?




Editor's note: Dean Obeidallah, a former attorney, is a political comedian and frequent commentator on various TV networks including CNN. He is the editor of the politics blog "The Dean's Report" and co-director of the upcoming documentary, "The Muslims Are Coming!" Follow him on Twitter: @deanofcomedy.


(CNN) -- If I won an Oscar, I'd carry it around it with me everywhere. I'd start every conversation with, "Well, as an Oscar winner..." I'd wear a pin that says, "Ask me about my Oscar." I might even get a tattoo on my neck of the golden figurine.


But that's just me. Because beyond the personal thrill of winning, the Oscars don't matter. The golden statue is increasingly becoming nothing more than a shiny paperweight.



Dean Obeidallah

Dean Obeidallah



And I say this as someone who loves movies, appreciates the talented people who make them and has long watched the awards show. But in three categories the Academy Awards have lost their luster: the TV telecast, the box office impact of the awards on movies and their effect on people's acting careers.


Are viewers particularly interested in watching the Oscars? Not so much. TV ratings show pretty clearly that percentage of people watching the Academy Awards has trended downward over the years. For example, in 2000, nearly 47% of the people watching TV on Oscar night watched the Academy Awards. It has not been that high since, and in 2012, the number had fallen to 34%. In fact, the 2012 Grammy awards had higher overall ratings than that year's Oscar telecast.



Why? There's almost no surprise left. Viewers have a fairly good idea of who will win every big award after the parade of award shows that queue up in the weeks before the Oscars. There are so many! The Golden Globes, Screen Actors Guild, Director's Guild, Producers Guild, the guys who run the deli by my apartment award show, etc. Oscar night feels more like a coronation than an actual awards show.


The only Oscar surprise this year -- and it's not one that will help the TV ratings -- is the Academy voters' bizarre snub of Ben Affleck for a Best Director nomination for his film "Argo." Affleck won Best Director honors at this year's Golden Globes, as well as at the Director's Guild, SAG and Producer's Guild awards. He even won the best director prize at the British Academy Awards. Apparently, the Academy voters still won't forgive Affleck for the stinker "Gigli."


Bergen: 'Zero Dark Thirty': Did torture really net bin Laden?


In the category of how much does an Oscar help your film at the box office, the envelope says: Not much. Sure, there's an "Oscar bump," but look at the 2009 Best Picture winner, "The Hurt Locker." It ended up grossing only $17 million in the United States. Keep in mind that $100 million in domestic box office receipts is generally considered a hit. $17 million is a bomb.


Also last year's Oscar winner for Best Picture, "The Artist," ended up earning approximately $45 million in U.S. theaters. No boffo hit there.


Cullen: With 'Lincoln', a new frontier for Day-Lewis


And here's something that the Academy Awards hate to hear: Winning a Golden Globe has proven to be much more profitable for a movie than winning an Oscar. That is at least according to a recent analysis that looked at award-wining films over the past 12 years. Edmund Helmer, a statistician whose website, BoxOfficeQuant.com, analyzes film industry statistics found that movies that won an Academy Award had on average a $3 million bump in box office sales. However, Golden Globe winners saw on average a pop of $14 million. Pretty big dollar difference.










And in the category of how much does an Oscar help your acting career, there's no denying it can help. But Oscar gold doesn't always translate into personal gold. Many talented actors and actress have won this coveted award only to find themselves with little film work a few years later. I'm talking Oscar winners like Mira Sorvino, Joe Pesci, Louis Gossett Jr. and Kim Basinger.


Williams: Django, in chains


Perhaps the most glaring example of this is actress/comedian Mo'Nique, who won the 2009 Best Supporting Actress award for her role in "Precious." According to the Internet Movie Date Base (IMDb), her only movie since her Oscar triumph went straight to video.


Conversely, there's a long list of amazingly talented actors and actresses who have yet to win an Oscar. A partial list includes Leonardo DiCaprio, Julianne Moore, Tom Cruise, Gary Oldman, Johnny Depp and Annette Benning.


Obviously, Academy Awards organizers have little impact on some of these issues. But one change they can consider is moving the Oscars up to take place before the other award shows -- like states in the presidential primaries. At least then the Academy Awards will provide real drama as to winners and losers.


Despite knowing the likely winners, I'm still looking forward to watching Sunday's Oscars. This year's host is the very funny Seth Macfarlane. Although I think the funniest moment of the awards' show may be when Russell Crowe sings a song from "Les Misérables."


Follow us on Twitter @CNNOpinion.


Join us on Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Dean Obeidallah.






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2 hurt, 19 arrested in melee near Ford City Mall









Two people suffered minor injuries and police arrested 19 teenagers during a disturbance involving crowds of young people Saturday at Ford City Mall on the Southwest Side, authorities said.


About 4:45 p.m., a large group of disruptive teens ran yelling through the mall, which is located at 7601 S. Cicero Ave., according to a mall official.


Officials closed the mall minutes later, but the chaotic scene continued outside, where police found between 100 and 200 people damaging vehicles in the shopping center's parking lot, according to a police report.





Two people were taken to hospitals, according to Chicago Fire Department Chief Joe Roccasalva, a department spokesman.

A CTA bus driver suffered minor injuries and was taken to Holy Cross Hospital, said Roccasalva, who added he did not know what happened to him.
 
A “kid’’ was also hurt, and that person was taken to Advocate Christ Medical Center in Oak Lawn, also in good condition, Roccasalva said.


About 50 police squad cars assigned to multiple South Side districts, including Chicago Lawn, Englewood and Deering, and a helicopter responded to the scene, police said.


Traffic came to a standstill as teenagers jumped on cars, both parked and moving, according to a police report obtained by the Tribune. Many of those involved ignored orders to disperse, and police arrested 19 people between the ages of 13 and 17, according to police.


The teenagers all face minor misdemeanor charges.


Officers did their best to control the disturbance, "trying to get everyone out of there safely," Chicago Police Department News Affairs Officer Veejay Zala said.


During the disturbance the CTA had to reroute the No. 79 buses, which travel on 79th Street, as well as other buses in the immediate area.


Earlier in the afternoon, members of the teen band Mindless Behavior had appeared at the mall food court from 2 p.m. to 4 p.m. to promote their new release, "All Around the World," said John Sarama, the mall's senior general manager.

The band's autograph signing drew approximately 1,000 parents and children, primarily mothers and girls between the ages of 6 and 13, Sarama said.

About 45 minutes after the band left, the chaos began, Sarama said.

"A group of older youths came into the mall with the intent of causing havoc and chaos and were running through the mall, screaming, yelling and so forth," he said.

Security staff contacted the police department, and mall officials closed the mall about 5 p.m., Sarama said.

The mall did not sustain any property damage apart from a single broken planter, and it will reopen Sunday at 11 a.m. as usual, Sarama said.

In the meantime, mall officials are at a loss as they try to understand what happened.

"Ford City is a family-oriented mall," he said. "We have not had an incident like this [in the past], and I’m still in a little bit of a state of shock actually.

"What would make these youths comes here to try and cause this kind of commotion and trouble?" he continued. "I don’t know. But they did have a plan in mind."

Tribune reporter Adam Sege contributed.


rsobol@tribune.com





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Italians head to polls in crucial vote for euro zone


ROME (Reuters) - Italians began voting on Sunday in one of the most closely watched elections in years, with markets nervous about whether it will produce a strong government to pull Italy out of recession and help resolve the euro zone debt crisis.


A huge final rally by anti-establishment-comedian-turned-politician Beppe Grillo on Friday before a campaigning ban kicked in has highlighted public anger at traditional parties and added to uncertainty about the election outcome.


Voters started casting their ballots at 0700 GMT. Polling booths will remain open until 2100 GMT on Sunday and between 0600-1400 GMT on Monday. Exit polls will come out soon after voting ends and official results are expected by early Tuesday.


The election is being followed closely by financial markets with memories still fresh of the potentially catastrophic debt crisis that brought technocrat Prime Minister Mario Monti to power more than a year ago.


Italy, the euro zone's third-largest economy, is stuck in deep recession, struggling under a public debt burden second only to Greece's in the 17-member currency bloc and with a public weary of more than a year of harsh austerity policies.


Final polls published two weeks ago showed center-left leader Pier Luigi Bersani with a 5-point lead, but analysts disagree about whether he will be able to form a stable majority that can push though the economic reforms Italy needs.


Bersani is now thought to be just a few points ahead of center-right rival Silvio Berlusconi, the four-times prime minister who has promised tax refunds and staged a media blitz in an attempt to win back voters.


BERLUSCONI CRITICISM


Berlusconi hogged the headlines on Sunday after he broke the campaign silence the previous evening attack magistrates, saying they were "more dangerous than the Sicilian mafia" and had invented allegations he held sex parties to discredit him.


The 76-year-old billionaire, who faces several trials on charges ranging from fraud to sex with an underage prostitute, was criticized by his election rivals for making the comments after the campaigning ban had come into force.


While the center left is still expected to gain control of the lower house, thanks to rules that guarantee a strong majority to whichever party wins the most votes nationally, a much closer battle will be fought in the Senate, which any government also needs to control to be able to pass laws.


Seats in the upper house are awarded on a region-by-region basis, meaning that support in key regions can decisively influence the overall result.


Pollsters still believe the most likely outcome is a center-left government headed by Bersani and possibly backed by Monti, who is leading a centrist coalition.


But strong campaigning by Berlusconi and the fiery Grillo, who has drawn tens of thousands to his election rallies, have thrown the election wide open, causing concern that there may be no clear winner.


Surveys have shown up to 5 million voters are expected to make up their minds at the last minute, adding to uncertainty.


Italy's Interior Ministry urged some 47 million eligible voters to not let bad weather forecasts put them off, and said it was prepared to handle snowy conditions in some northern regions to ensure everyone had a chance to vote.


STAGNANT ECONOMY


Whatever government emerges from the vote will have the task of pulling Italy out of its longest recession for 20 years and reviving an economy largely stagnant for two decades.


The main danger for Italy and the euro zone is a weak government incapable of taking firm action, which would rattle investors and could ignite a new debt crisis.


Monti replaced Berlusconi in November 2011 after Italy came close to Greek-style financial meltdown while the center-right government was embroiled in scandals.


The former European Commissioner launched a tough program of spending cuts, tax hikes and pension reforms which won widespread international backing and helped restore Italy's credibility abroad after the scandals of the Berlusconi era.


Italy's borrowing costs have since fallen sharply after the European Central Bank pledged it was prepared to support countries undertaking reforms by buying unlimited quantities of their bonds on the markets.


But economic austerity has fuelled anger among Italians grappling with rising unemployment and shrinking disposable incomes, encouraging many to turn to Grillo, who has tapped into a national mood of disenchantment.


(Editing by Alison Williams)



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Investors face another Washington deadline

NEW YORK (Reuters) - Investors face another Washington-imposed deadline on government spending cuts next week, but it's not generating the same level of fear as two months ago when the "fiscal cliff" loomed large.


Investors in sectors most likely to be affected by the cuts, like defense, seem untroubled that the budget talks could send stocks tumbling.


Talks on the U.S. budget crisis began again this week leading up to the March 1 deadline for the so-called sequestration when $85 billion in automatic federal spending cuts are scheduled to take effect.


"It's at this point a political hot button in Washington but a very low level investor concern," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. The fight pits President Barack Obama and fellow Democrats against congressional Republicans.


Stocks rallied in early January after a compromise temporarily avoided the fiscal cliff, and the Standard & Poor's 500 index <.spx> has risen 6.3 percent since the start of the year.


But the benchmark index lost steam this week, posting its first week of losses since the start of the year. Minutes on Wednesday from the last Federal Reserve meeting, which suggested the central bank may slow or stop its stimulus policy sooner than expected, provided the catalyst.


National elections in Italy on Sunday and Monday could also add to investor concern. Most investors expect a government headed by Pier Luigi Bersani to win and continue with reforms to tackle Italy's debt problems. However, a resurgence by former leader Silvio Berlusconi has raised doubts.


"Europe has been in the last six months less of a topic for the stock market, but the problems haven't gone away. This may bring back investor attention to that," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.


OPTIONS BULLS TARGET GAINS


The spending cuts, if they go ahead, could hit the defense industry particularly hard.


Yet in the options market, bulls were targeting gains in Lockheed Martin Corp , the Pentagon's biggest supplier.


Calls on the stock far outpaced puts, suggesting that many investors anticipate the stock to move higher. Overall options volume on the stock was 2.8 times the daily average with 17,000 calls and 3,360 puts traded, according to options analytics firm Trade Alert.


"The upside call buying in Lockheed solidifies the idea that option investors are not pricing in a lot of downside risk in most defense stocks from the likely impact of sequestration," said Jared Woodard, a founder of research and advisory firm condoroptions.com in Forest, Virginia.


The stock ended up 0.6 percent at $88.12 on Friday.


If lawmakers fail to reach an agreement on reducing the U.S. budget deficit in the next few days, a sequester would include significant cuts in defense spending. Companies such as General Dynamics Corp and Smith & Wesson Holding Corp could be affected.


General Dynamics Corp shares rose 1.2 percent to $67.32 and Smith & Wesson added 4.6 percent to $9.18 on Friday.


EYES ON GDP DATA, APPLE


The latest data on fourth-quarter U.S. gross domestic product is expected on Thursday, and some analysts predict an upward revision following trade data that showed America's deficit shrank in December to its narrowest in nearly three years.


U.S. GDP unexpectedly contracted in the fourth quarter, according to an earlier government estimate, but analysts said there was no reason for panic, given that consumer spending and business investment picked up.


Investors will be looking for any hints of changes in the Fed's policy of monetary easing when Fed Chairman Ben Bernake speaks before congressional committees on Tuesday and Wednesday.


Shares of Apple will be watched closely next week when the company's annual stockholders' meeting is held.


On Friday, a U.S. judge handed outspoken hedge fund manager David Einhorn a victory in his battle with the iPhone maker, blocking the company from moving forward with a shareholder vote on a controversial proposal to limit the company's ability to issue preferred stock.


(Additional reporting by Doris Frankel; Editing by Kenneth Barry)



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Oscar Pistorius gets bail as murder trial looms


PRETORIA, South Africa (AP) — Oscar Pistorius walked out of court Friday — free at least for now — after a South African magistrate released him on bail, capping four days of often startling testimony that foreshadowed a dramatic trial in the Valentine's Day slaying of his girlfriend.


But as he was driven away, chased by photographers and cameramen, questions continued to hound the double-amputee Olympian about what actually happened the night he gunned down Reeva Steenkamp inside a locked bathroom in his home.


Pistorius is charged with premeditated murder, and even Chief Magistrate Desmond Nair expressed doubts about his story that he mistook the 29-year-old model for an intruder and fired out of fear.


"Why would (Pistorius) venture further into danger" by going into the bathroom at all, Nair asked.


Cries of "Yes!" went up from Pistorius' supporters when Nair announced his decision to a packed courtroom after a nearly two-hour explanation of the ruling.


Nair set bail at 1 million rand ($113,000), with $11,300 in cash up front and proof that the rest is available. The 26-year-old track star was also ordered to hand over his passports, turn in any guns he owns and keep away from his upscale home in a gated community in Pretoria, which is now a crime scene.


He cannot leave the district of Pretoria without his probation officer's permission and is not allowed to consume drugs or alcohol, the magistrate said. His next court appearance was set for June 4.


Earlier, Pistorius alternately wept and appeared solemn and composed, especially as Nair criticized police procedures in the case and as a judgment in the track star's favor appeared imminent. He showed no reaction as he was granted bail.


Pistorius left the courthouse in a silver Land Rover just over an hour after the bail conditions were set. The vehicle, tailed by motorcycles carrying television cameramen, later pulled into the home of Pistorius' uncle.


"We are relieved at the fact that Oscar got bail today, but at the same time we are in mourning for the death of Reeva, with her family," said Pistorius' uncle, Arnold Pistorius. "As a family, we know Oscar's version of what happened on that tragic night and we know that that is the truth and that will prevail in the coming court case."


Dozens of journalists and international and local television crews had converged on the red-brick courthouse to hear the decision — a sign of the global fascination with a case involving a once-inspirational athlete and his beautiful girlfriend, a law school graduate and budding reality TV show contestant.


Nair said Pistorius' sworn statement, an unusual written account of what happened during the pre-dawn hours of Feb. 14, had helped his application for bail.


"I come to the conclusion that the accused has made a case to be released on bail," Nair said.


Pistorius said he shot Steenkamp accidentally, believing she was an intruder in his house. He described "a sense of terror rushing over" him and feeling vulnerable because he stood only on his stumps before opening fire.


Prosecutors say he intended to kill Steenkamp as she cowered in fear behind the locked bathroom door after a loud argument between the two.


Yet despite poking holes in Pistorius' version of events and bringing up incidents they say highlight his temper, the state's case started to unravel during testimony by the lead investigator, Detective Warrant Officer Hilton Botha.


Botha, who faces seven charges of attempted murder in an unrelated incident, was removed from the case Thursday. His replacement, the nation's top detective, Vinesh Moonoo, stopped by the hearing briefly Friday.


While Nair leveled harsh criticism at Botha for "errors" and "blunders," he said one man does not represent an investigation and that the state could not be expected to put all "the pieces of the puzzle" together in such a short time.


The prosecution accepted the judge's decision without protest. "We're still confident in our case," prosecution spokesman Medupe Simasiku said.


Pistorius faced the sternest bail requirements in South Africa because of the seriousness of the charge, which carries a life sentence if convicted. His defense attorneys had to prove that he would not flee the country, would not interfere with witnesses or the case, and his release would not cause public unrest.


Nair questioned whether Pistorius would be a flight risk when he stood to lose a fortune in cash, cars, property and other assets. Nair also said that while it had been shown that Pistorius had aggressive tendencies, he did not have a prior record of offenses for violent acts.


Anticipating the shape of the state's case at trial, he said he had serious questions about Pistorius' account: Why didn't he try to locate his girlfriend if he feared an intruder was in the house? Why didn't he try to determine who was in the bathroom before opening fire? And why did he venture into perceived "danger" in the bathroom when he could have taken other steps to ensure his safety?


"There are improbabilities which need to be explored," Nair said, adding that Pistorius could clarify these matters by testifying under oath at trial.


Sharon Steenkamp, Reeva's cousin, said the model's family would not be watching the bail decision and had not been following the hearing.


"It doesn't make any difference to the fact that we are without Reeva," she told The Associated Press.


Before the hearing, Pistorius' longtime coach, Ampie Louw, said he hoped to put the runner back into his training routine if he got bail.


"The sooner he can start working the better," said Louw, who persuaded the double-amputee to take up track as a teenager a decade ago. But he acknowledged Pistorius could be "heartbroken" and unwilling to immediately pull on the carbon-fiber running blades that earned him the nickname "Blade Runner."


___


AP Sports Writer Gerald Imray contributed to this report from Johannesburg.


___


Jon Gambrell can be reached at www.twitter.com/jongambrellAP .


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Analysis: Italian election explained











Austerity-hit Italy chooses new leader


Austerity-hit Italy chooses new leader


Austerity-hit Italy chooses new leader


Austerity-hit Italy chooses new leader








STORY HIGHLIGHTS


  • Silvio Berlusconi is campaigning to win his old job back for the fourth time

  • The eurozone's third largest economy is hurting, with unemployment surpassing 11%

  • Pier Luigi Bersani of the center-left Democratic Party is expected to narrowly win

  • Italy's political system encourages the forming of alliances




(CNN) -- Little more than a year after he resigned in disgrace as prime minister, Silvio Berlusconi is campaigning to win his old job back -- for the fourth time.


Berlusconi, the septuagenarian playboy billionaire nicknamed "Il Cavaliere," has been trailing in polls behind his center-left rival, Per Luigi Bersani.


But the controversial media tycoon's rise in the polls in recent weeks, combined with widespread public disillusionment and the quirks of Italy's complex electoral system, means that nothing about the race is a foregone conclusion.


Why have the elections been called now?


Italian parliamentarians are elected for five-year terms, with the current one due to end in April. However in December, Berlusconi's People of Freedom Party (PdL) withdrew its support from the reformist government led by Mario Monti, saying it was pursuing policies that "were too German-centric." Monti subsequently resigned and the parliament was dissolved.






Berlusconi -- the country's longest serving post-war leader -- had resigned the prime ministerial office himself amidst a parliamentary revolt in November 2011. He left at a time of personal and national crisis, as Italy grappled with sovereign debt problems and Berlusconi faced criminal charges of tax fraud, for which he was subsequently convicted. He remains free pending an appeal. He was also embroiled in a scandal involving a young nightclub dancer - which led him to be charged with paying for sex with an underage prostitute.


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He was replaced by Monti, a respected economist and former European Commissioner, who was invited by Italy's President Giorgio Napolitano to lead a cabinet of unelected technocrats. Monti's government implemented a program of tax rises and austerity measures in an attempt to resolve Italy's economic crisis.


Who are the candidates?


The election is a four-horse race between political coalitions led by Bersani, Berlusconi, Monti, and the anti-establishment movement led by ex-comedian Beppe Grillo. Polls are banned within two weeks of election day, but the most recent ones had Bersani holding onto a slender lead over Berlusconi, followed by Grillo in distant third.


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The center-left alliance is dominated by the Democratic Party, led by Bersani. He is a former Minister of Economic Development in Romano Prodi's government from 2006-8 -- and has held a comfortable lead in polls, but that appears to be gradually being eroded by Berlusconi.


Italy's political system encourages the forming of alliances, and the Democratic Party has teamed with the more left-wing Left Ecology Freedom party.


The 61-year-old Bersani comes across as "bluff and homespun, and that's part of his appeal -- or not, depending on your point of view," said political analyst James Walston, department chair of international relations at the American University of Rome.


He described Bersani, a former communist, as a "revised apparatchik," saying the reform-minded socialist was paradoxically "far more of a free marketeer than even people on the right."


Bersani has vowed to continue with Monti's austerity measures and reforms, albeit with some adjustments, if he wins.


At second place in the polls is the center-right alliance led by Berlusconi's PdL, in coalition with the right-wing, anti-immigration Northern League.


Berlusconi has given conflicting signals as to whether he is running for the premiership, indicating that he would seek the job if his coalition won, but contradicting that on other occasions.


In a recent speech, he proposed himself as Economy and Industry Minister, and the PdL Secretary Angelino Alfano as prime minister.


Roberto Maroni, leader of the Northern League, has said the possibility of Berlusconi becoming prime minister is explicitly ruled out by the electoral pact between the parties, but the former premier has repeatedly said he plays to win, and observers believe he is unlikely to pass up the chance to lead the country again if the opportunity presents itself.


Berlusconi has been campaigning as a Milan court weighs his appeal against a tax fraud conviction, for which he was sentenced to four years in jail last year. The verdict will be delivered after the elections; however, under the Italian legal system, he is entitled to a further appeal in a higher court. Because the case dates to July 2006, the statute of limitations will expire this year, meaning there is a good chance none of the defendants will serve any prison time.


He is also facing charges in the prostitution case (and that he tried to pull strings to get her out of jail when she was accused of theft) -- and in a third case stands accused of revealing confidential court information relating to an investigation into a bank scandal in 2005.


Despite all this, he retains strong political support from his base.


"Italy is a very forgiving society, it's partly to do with Roman Catholicism," said Walston. "There's sort of a 'live and let live' idea."


Monti, the country's 69-year-old technocrat prime minister, who had never been a politician before he was appointed to lead the government, has entered the fray to lead a centrist coalition committed to continuing his reforms. The alliance includes Monti's Civic Choice for Monti, the Christian Democrats and a smaller centre-right party, Future and Freedom for Italy.


As a "senator for life," Monti is guaranteed a seat in the senate and does not need to run for election himself, but he is hitting the hustings on behalf of his party.


In a climate of widespread public disillusionment with politics, comedian and blogger Beppe Grillo is also making gains by capturing the protest vote with his Five Star Movement. Grillo has railed against big business and the corruption of Italy's political establishment, and holds broadly euro-skeptical and pro-environmental positions.


How will the election be conducted?


Italy has a bicameral legislature and a voting system which even many Italians say they find confusing.


Voters will be electing 315 members of the Senate, and 630 members of the Chamber of Deputies. Both houses hold the same powers, although the Senate is referred to as the upper house.


Under the country's closed-list proportional representation system, each party submits ranked lists of its candidates, and is awarded seats according to the proportion of votes won -- provided it passes a minimum threshold of support.


Seats in the Chamber of Deputies are on a national basis, while seats in the senate are allocated on a regional one.


The party with the most votes are awarded a premium of bonus seats to give them a working majority.


The prime minister needs the support of both houses to govern.


Who is likely to be the next prime minister?


On current polling, Bersani's bloc looks the likely victor in the Chamber of Deputies. But even if he maintains his lead in polls, he could fall short of winning the Senate, because of the rules distributing seats in that house on a regional basis.


Crucial to victory in the Senate is winning the region of Lombardy, the industrial powerhouse of the north of Italy which generates a fifth of the country's wealth and is a traditional support base for Berlusconi. Often compared to the U.S. state of Ohio for the "kingmaker" role it plays in elections, Lombardy has more Senate seats than any other region.


If no bloc succeeds in controlling both houses, the horse-trading begins in search of a broader coalition.


Walston said that a coalition government between the blocs led by Bersani and Monti seemed "almost inevitable," barring something "peculiar" happening in the final stages of the election campaign.


Berlusconi, he predicted, would "get enough votes to cause trouble."


What are the main issues?


There's only really one issue on the agenda at this election.


The eurozone's third largest economy is hurting, with unemployment surpassing 11% -- and hitting 37% for young people.


Voters are weighing the question of whether to continue taking Monti's bitter medicine of higher taxation and austerity measures, while a contentious property tax is also proving a subject of vexed debate.


Walston said the dilemma facing Italians was deciding between "who's going to look after the country better, or who's going to look after my pocket better."


He said it appeared voters held far greater confidence in the ability of Monti and Bersani to fix the economy, while those swayed by appeals to their own finances may be more likely to support Berlusconi.


But he said it appeared that few undecided voters had any faith in Berlusconi's ability to follow through on his pledges, including a recent promise to reverse the property tax.


What are the ramifications of the election for Europe and the wider world?


Improving the fortunes of the world's eighth largest economy is in the interests of Europe, and in turn the global economy.


Italy's woes have alarmed foreign investors. However, financial commentator Nicholas Spiro, managing director of consultancy Spiro Sovereign Strategy, says the European Central Bank's bond-buying program has gone a long way to mitigating investors' concerns about the instability of Italian politics.


Why is political instability so endemic to Italy?


Italy has had more than 60 governments since World War II -- in large part as a by-product of a system designed to prevent the rise of another dictator.


Parties can be formed and make their way on to the political main stage with relative ease -- as witnessed by the rise of Grillo's Five Star Movement, the protest party which was formed in 2009 but in local and regional elections has even outshone Berlusoni's party at times.


Others point to enduringly strong regional identities as part of the recipe for the country's political fluidity.


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