Wall Street ends lower on growth worries

NEW YORK (Reuters) - U.S. stocks fell for a second straight day on Thursday and the S&P 500 posted its worst two-day loss since November after reports cast doubt over the health of the U.S. and euro-zone economies.


But a late-day rally helped stocks erase some of their losses with most of the pullback concentrated in the technology- heavy Nasdaq. The move suggested investors were still willing to buy on dips even after the sharp losses in the last session.


In Europe, business activity indexes dealt a blow to hopes that the euro zone might emerge from recession soon, showing the downturn across the region's businesses unexpectedly grew worse this month.


"The PMI numbers out of Europe were really a blow to the market," said Jack De Gan, chief investment officer at Harbor Advisory in Portsmouth, New Hampshire. "The market was expecting signs that recovery is still there, but the numbers just highlighted that the euro-zone problem is still persistent."


U.S. initial claims for unemployment benefits rose more than expected last week while the Federal Reserve Bank of Philadelphia said its index of business conditions in the U.S. mid-Atlantic region fell in February to the lowest in eight months.


Gains in Wal-Mart Stores Inc shares helped cushion the Dow. The shares gained 1.5 percent to $70.26 after the world's largest retailer reported earnings that beat expectations, though early February sales were sluggish.


The Dow Jones industrial average <.dji> fell 46.92 points, or 0.34 percent, to 13,880.62 at the close. The Standard & Poor's 500 Index <.spx> lost 9.53 points, or 0.63 percent, to 1,502.42. The Nasdaq Composite Index <.ixic> dropped 32.92 points, or 1.04 percent, to close at 3,131.49.


The two-day decline marked the U.S. stock market's first sustained pullback this year. The Standard & Poor's 500 has fallen 1.8 percent over the period and just managed to hold the 1,500 level on Thursday. Still, the index is up 5.3 percent so far this year.


The abrupt reversal in markets, which started on Wednesday after minutes from the Federal Reserve's January meeting suggested stimulus measures may end earlier than thought, looks set to halt a seven-week winning streak for stocks that had lifted the Dow and the S&P 500 close to all-time highs.


Wall Street will soon face another test with the upcoming debate in Washington over the automatic across-the-board spending cuts put in place as part of a larger congressional budget fight. Those cuts, set to kick in on March 1 unless lawmakers agree on an alternative, could depress the economy.


Semiconductor stocks ranked among the weakest of the day, pressuring the Nasdaq as the Philadelphia Semiconductor Index <.sox> fell 1.8 percent. Intel Corp fell 2.3 percent to $20.25 while Advanced Micro Devices lost 3.7 percent to $2.60 as the S&P 500's biggest percentage decliner.


The Dow also got a helping hand from personal computer maker Hewlett-Packard Co , which rose 2.3 percent to end the regular session at $17.10. The company was scheduled due to report first-quarter results after the closing bell.


Shares of Boeing Co rose 1.6 percent to $76.01 as a senior executive was set to meet with the head of the U.S. Federal Aviation Administration on Friday and present a series of measures to prevent battery failures that grounded its 787 Dreamliner fleet, according to a source familiar with the plans.


In other company news, shares of supermarket operator Safeway Inc jumped 14.1 percent to $22.97 after the company reported earnings that beat expectations.


Shares of VeriFone Systems Inc tumbled nearly 43 percent to $18.24 after the credit-card swipe machine maker forecast first- and second-quarter profits well below expectations.


Of the 427 companies in the S&P 500 that have reported results so far, 69.3 percent have exceeded analysts' expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters, according to Thomson Reuters data through Thursday morning.


Fourth-quarter earnings for S&P 500 companies are estimated to have risen 5.9 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


Berry Petroleum Co jumped 19.3 percent to $46.02 after oil and gas producer Linn Energy LLC said it would buy the company in an all-stock deal valued at $4.3 billion, including debt. Linn Energy shares advanced 2.8 percent to $37.68.


About two stocks fell for everyone that rose on the New York Stock Exchange and Nasdaq. About 7.64 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, well above the 20-day moving average of around 6.6 billion shares.


(Editing by Jan Paschal)



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Drew Peterson sentenced to 38 years









Moments after screaming in court, "I did not kill Kathleen," Drew Peterson was sentenced to 38 years in prison for the 2004 murder of his third wife Kathleen Savio.

Peterson had faced as much as 60 years, but Judge Edward Burmila said he gave Peterson some consideration for his years as a police officer and his service in the military.


The sentence was handed down after Peterson, who did not testify at this trial, made an emotional appeal to the judge, at times appearing to choke up.


Peterson began by telling the judge, "Good day, my name is Drew Peterson. I hope I don't aggravate the situation here, but I have a lot of things to be said." Then he screamed, "I did not kill Kathleen!"

"Yes, you did," a woman said.

"Ma'am, I'd like you to leave the courtroom," Burmila said. "And Mr. Peterson, don't make any outbursts that are designed to aggravate people."

"I'm sorry, your honor. I must have been woozy," Peterson said.








Peterson said he is the victim of an unjust and invasive police investigation that ignored or lost evidence that could have shown his innocence. He accused the state police of falsifying reports.

"What they did uncover was rumors, gossip, outrageous lies, and most importantly, unreliable hearsay. Hearsay that pierced three privileges that have stood for centuries," Peterson said.

Peterson bitterly complained that the Rev. Neil Schori betrayed his promise never to repeat anything that was said by Peterson or Stacy. Schori testified at trial that Stacy confided to him that she lied to state police about Peterson's alleged slaying of Savio.

"Out of the privileged information from Neil Schori, the state police was able to create" a case, he said.

"I find it hard to believe that the state was able to take information that they obtained illegally and turn it to their benefit."

Kathleen Savio’s divorce attorney Harry Smith, who also testified at trial about a conversation he had with Stacy before she disappeared, "gave up privileged information from both Kathy and Stacy, like it was yesterday's garbage," he said. "Ultimately, it led to my conviction.

"Hearsay is a scary thing. There's no proof. Anything can be said and no0body's accountable for the truth.

"In my experience, in divorce situations everybody lies, and everybody lies under the instruction of their attorneys."

There was an incident where Kathleen exited the house...and punched Stacy in the face.

They went to trial, my 9- and 10-year-old sons were called to testify, and under oath they lied, Peterson said.

"On their next visit, I questioned them, 'why’d you guys lie?' They said Harry Smith told them to. They didn’t want their mom to go to jail,” Peterson said, growing emotional as he spoke. “I couldn't be mad at them.”

"Stacy provided me an alibi for Kathleen's death.

"Then she later said she was lying about that. Seems like Stacy was lying all the time about everything. But the state's attorney picked and chose what they wanted to believe.

"Stacy clearly had a crush Rev. Schori, which I think was a factor in this."

"There was a constant and consistently illegal activity by the state’s attorney’s, including the state’s attorney himself."

"So what did the state’s attorney do? They hire a skinny … spokesperson (Peterson family spokeswoman Pam Bosco) to go out and say anything she wants. It buffered the state’s attorney’s office from anything the court might bring.

"And when it came time for a vote from the grand jury, only a handful of people were selected. Not the entire grand jury was brought in to do the vote. Pretty much guaranteed … that I was indicted, which I was."

"There was a first investigation on this case, in which probably one of the most experienced investigators was the first one on the scene in this case, and he determined Kathleen's death was an accident.

"Dr. (Bryan) Mitchell looked at Kathy's body when it was in its freshest state. He determined her death was an accident."

So did the coroner's jury, Peterson said.

"All this was done when the evidence was freshest."

Peterson then paused and asked for some water. He resumed by talking about his service in the military and lengthy law enforcement career.

"I was probably one of the highest decorated officers in the Bolingbrook Police Department," he said.

"I always took my job seriously, I never violated the public trust," he said, his voice husky with emotions. "And I never beared false witness against anyone.”

"I loved having a job that helped people," he said. "In my private life, I ran up to six companies at one time. I employed nearly 100 people."

Until this happened, I thought I was a great guy, he said. And in moments, the media turned me into a monster, Peterson continued.

"As soon as I get a chance, I'm going to get a tattoo on my back, from shoulder to shoulder, that says, 'No good deed goes unpunished.'"

He said he loved Savio and called her a good wife and mother who did not deserved to die, but said she had an accident.

He then talked about Savio’s upbringing, calling it difficult and abusive.

"The most pathetic thing I’ve ever seen in my life was the night after our wedding, when I held Kathy and she cried because her father failed to show up and give her away on her wedding.

"At Kathy's wake, friends and family put money in cards and envelopes to help cover the cost of the funeral.

“I paid for the funeral."

"That's a lie right there," a man in court shouted.

"I paid for Kathy’s funeral at the request of her sister, who's sitting right there," Peterson said.

"I didn't think when Kathy said, 'Take care of my kids' that she meant, 'Show my kids the same neglect that you showed me all those years.'"

He then talked about his children and attacked State's Atty. James Glasglow.

"Mr. Glasgow, all aspects of my life have been destroyed. Everything from my personal life to my professional life to my social life -- all aspects have been destroyed. And I tell you this to give you greater cause for celebration, when you celebrate the fact that you perpetrated the largest railroad job in the history of this country."

Since I've been incarcerated, I've had 9 family members who have died, 6 of which were cousins, Peterson said. None of them made it past the age of 60, he said.

“And in telling you this, I'm not looking for any sympathy, but anything you sentence me to, you're sentencing me to the department of corrections to die!" Peterson said.

Peterson said he believes his constitutional rights have been violated.

"And I think the only thing left to make this case run true to form would be a cruel and unusual punishment. And I don't think anybody would care because nobody cares. I can't believe I spent 32 years defending a constitution that allowed this to happen to me. I can't believe people fought and died in wars protecting a constitution that allowed this to happen to me.”

America should be outraged, but nobody cares, he said.

"I take full responsibility for my relationship with the media," Peterson continued.

"I just wanted them away from my home because they were scaring my kids. They hounded me. I agreed to go on TV and tell my story and ask for legal help.

"Everybody from busy bodies like Nancy Grace...to that ridiculous movie that played repeatedly before and during my trial.

"It pretty much guaranteed that I would not get a fair trial. It's pretty clear that the state took part in that movie because things I remember saying only to the state police appeared in that movie," Peterson said, apparently referring to a Lifetime TV movie starring Rob Lowe at Peterson.

"I'm an obnoxious man by nature, truly. And after 30 years as a police officer, as is normal with police officer, my defense mechanism is comedy. The media took that and capitalized on that, and my obnoxious nature showed through. But I want to ensure the court that at no time did I want to portray any insensitivity about Kathy's death. That was not my intention.

“I hope Mr. Glasgow looks me in the eye right now. Never forget my face! Never forget what you’ve done. 

“Originally I had some cute and funny things to say. But now in closing, it's time to be sentenced to a life of hardship and abuse in prison. I don't deserve this, I don't deserve this.

“Thank you.”


Earlier in the afternoon, Savio’s sister Anna Marie Savio-Doman told the judge that "my loss of my baby sister is beyond words. There will be no more birthday parties, backyard gatherings, holiday celebrations or other family activities to share. The laughter, hugs, guidance, advice, sense of security and those opportunities to say, ‘I love you’ are forever gone.

“One of the hardest things for me is knowing the pain and fear that Kathleen must have suffered at the time of her murder. The horror and betrayal she must have felt when she realized that someone she had trusted and loved more than anything was actually killing her. I wonder if she could feel her heart breaking when she thought about leaving her two boys forever. The helplessness she must have felt knowing she was going to die.

“I have to say it hurts a lot. I hope it gets better, but I am not confident it will get better. I still talk to her. I hope she can hear me.”

Susan Doman described her sister as a “rock” and told the court she looked up to Savio, even though Savio was younger. She also expressed her anger toward Peterson.

“He showed no remorse,” she said. “For years I watched Peterson parade on TV, radio, photo shoots, and (that) radio promotion to win a date with him. That was a big joke to him. And he loved all the attention.

“Your honor, the defendant shows no remorse to this day for the horrible crime that he did to my sister Kathleen. This senseless action is inexcusable. I am placing my trust that you will give Kathleen justice once and for all.”

The judge also read a statement from Savio’s father, but not aloud.

Peterson, 59, was convicted last fall of drowning his third wife in her bathtub. The former Bolingbrook police sergeant faces 20-60 years in prison.

In arguing for a maximum sentence, Will County State’s Attorney James Glasgow reminded the judge about the damage done to his young children with Peterson’s missing fourth wife, Stacy. Prosecutors have said they believe Peterson killed Stacy and could seek charges in that case.

"Not only is their mother gone, but also their father is gone, as he sits before you," Glasgow said.

Glasgow said Peterson also should not get a break for living a law abiding life because of his attacks on his second wife, when he threatened to kill her.

"There's a recurring them here with Mr. Peterson. He’s a police officer, and there's a number of occurrences with the victims here being afraid to call the police department.

"These are obviously very dangerous situation, and in this case, led to the demise of two young women."

Peterson’s second wife, Vikki Montgomery, in 1992, woke up in the middle of the night and found him standing over her, staring at her.

"You want to terrorize a women, that's how you do it. You let her know that any time, any place, she's yours. And that's what he did."

Glasgow noted that Peterson has a letter from a women's shelter thanking him for assisting victims of domestic violence.

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French, Malian forces fight Islamist rebels in Gao


GAO, Mali (Reuters) - French and Malian troops fought Islamists on the streets of Gao and a car bomb exploded in Kidal on Thursday, as fighting showed little sign of abating weeks before France plans to start withdrawing some forces.


Reuters reporters in Gao in the country's desert north said French and Malian forces fired at the mayor's office with heavy machineguns after Islamists were reported to have infiltrated the Niger River town during a night of explosions and gunfire.


French Defense Minister Jean-Yves Le Drian told a news conference in Brussels that Gao was back under control after clashes earlier in the day.


"Malian troops supported by French soldiers killed five jihadists and the situation is back to normal," he said.


In Kidal, a remote far north town where the French are hunting Islamists, residents said a car bomb killed two. A French defense ministry source reported no French casualties.


French troops dispatched to root out rebels with links to al Qaeda swiftly retook northern towns last month. But they now risk being bogged down in a guerrilla conflict as they try to help Mali's weak army counter bombings and raids.


"There was an infiltration by Islamists overnight and there is shooting all over the place," Sadou Harouna Diallo, Gao's mayor, told Reuters by telephone earlier in the day, saying he was not in his office at the time.


Gao is a French hub for operations in the Kidal region, about 300 km (190 miles) northeast, where many Islamist leaders are thought to have retreated and foreign hostages may be held.


"They are black and two were disguised as women," a Malian soldier in Gao who gave his name only as Sergeant Assak told Reuters during a pause in heavy gunfire around Independence Square.


Six Malian military pickups were deployed in the square and opened fire on the mayor's office with the heavy machineguns. Two injured soldiers were taken away in an ambulance.


French troops in armored vehicles later joined the battle as it spilled out into the warren of sandy streets, where, two weeks ago, they also fought for hours against Islamists who had infiltrated the town via the nearby river.


Helicopters clattered over the mayor's office, while a nearby local government office and petrol station was on fire.


A Gao resident said he heard an explosion and then saw a Malian military vehicle on fire in a nearby street.


Paris has said it plans to start withdrawing some of its 4,000 troops from Mali next month. But rebels have fought back against Mali's weak and divided army, and African forces due to take over the French role are not yet in place.


Islamists abandoned the main towns they held but French and Malian forces have said there are pockets of Islamist resistance across the north, which is about the size of France.


CAR BOMB


Residents reported a bomb in the east of Kidal on Thursday.


"It was a car bomb that exploded in a garage," said one resident who went to the scene but asked not to be named.


"The driver and another man were killed. Two other people were injured," he added.


A French defense ministry official confirmed there had been a car bomb but said it did not appear that French troops, based at the town's airport, had been targeted.


Earlier this week, a French soldier was killed in heavy fighting north of Kidal, where French and Chadian troops are hunting Islamists in the Adrar des Ifoghas mountains, which border Algeria.


Operations there are further complicated by the presence of separatist Tuareg rebels, whose rebellion triggered the fighting in northern Mali last year but were sidelined by the better-armed Islamists.


Having dispatched its forces to prevent an Islamist advance south in January, Paris is eager not to become bogged down in a long-term conflict in Mali. But their Malian and African allies have urged French troops not to pull out too soon.


(Additional reporting by Emanuel Braun in Gao, Adama Diarra in Bamako, David Lewis and John Irish in Dakar and Adrian Croft in Brussels; Writing by David Lewis; Editing by Jason Webb and Roger Atwood)



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Wall Street ends down sharply after Fed minutes

DEAR ABBY: My boyfriend, "Doug" (24), and I (22) have been in a long-distance relationship for a year, but we were friends for a couple of years before that. I had never had a serious relationship before and lacked experience. Doug has not only been in two other long-term relationships, but has had sex with more than 15 women. One of them is an amateur porn actress.I knew about this, but it didn't bother me until recently. Doug had a party, and while he was drunk he told one of his buddies -- in front of me -- that he should watch a certain porn film starring his ex-girlfriend. ...
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Police offer confused testimony in Pistorius case


PRETORIA, South Africa (AP) — The detective leading the police investigation into Oscar Pistorius' fatal shooting of his girlfriend offered confusing testimony Wednesday, at one point agreeing with the athlete's defense that officers had no evidence challenging the runner's claim he accidentally killed her.


Testimony by Detective Warrant Officer Hilton Botha of the South African Police Service left prosecutors rubbing their temples, only able to look down at their notes as he misjudged distances and acknowledged a forensics team left in the toilet bowl one of the bullet slugs fired at Reeva Steenkamp. However, Botha still poked holes in Pistorius' own account that he feared for his life and opened fire on Valentine's Day after mistaking Steenkamp for an intruder.


The second day of the bail hearing in a case that has riveted South Africa and much of the world appeared at first to go against the double-amputee runner, with prosecutors saying a witness can testify to hearing "non-stop talking, like shouting" between 2 a.m. and 3 a.m. before the predawn shooting on Feb. 14. However, Botha later said under cross examination that the person who overheard the argument was in a house 600 meters (yards) away in Pistorius' gated community in the suburbs of South Africa's capital, Pretoria.


Later, prosecutor Gerrie Nel questioned Botha again and the detective acknowledged the distance was much closer. But confusion reigned for much of his testimony, when at one point Botha said officers found syringes and steroids in Pistorius' bedroom. Nel quickly cut the officer off and said the drugs were actually testosterone.


Pistorius' lead defense lawyer, Barry Roux, asserted when questioning the detective — who has 16 years' experience as a detective and 24 years with the police — that it was not a banned substance and that police were trying to give the discovery a "negative connotation."


"It is an herbal remedy," Roux said. "It is not a steroid and it is not a banned substance."


The name of the drug, offered later in court by Roux, could not be immediately found in reference materials by The Associated Press. A spokesman for prosecutors later said it's too early to know what the substance is, as they don't yet have results of forensic testing on the material.


Pistorius, 26, said in an affidavit read in court Tuesday that he and his 29-year-old girlfriend had gone to bed and that when he awoke during the night he detected what he thought was an intruder in the bathroom. He testified that he grabbed his 9 mm pistol and fired into the door of a toilet enclosed in the bathroom, only to discover later to his horror that Steenkamp was there, mortally wounded.


Pistorius, the first Paralympian runner to compete at the Olympics, is charged with premeditated murder in the case.


The prosecution attempted to cement its argument that the couple had a shouting match, that Steenkamp fled and locked herself into the toilet stall of the bathroom and that Pistorius fired four shots through the door, hitting her with three bullets.


Botha said: "I believe that he knew that Reeva was in the bathroom and he shot four shots through the door."


But asked if the police found anything inconsistent with the version of events presented by Pistorius, Botha responded that they had not. He later said nothing contradicted the police's version either.


Nel projected a plan of the bedroom and bathroom in the courtroom and argued that Pistorius had to walk past his bed to get to the bathroom and could not have done so without realizing that Steenkamp was not in the bed.


"There's no other way of getting there," Nel said.


Botha said the trajectory of the bullets showed the gun was fired pointed down and from a height. This seems to conflict with Pistorius' statement Tuesday, because the athlete said that he did not have on his prosthetics and on his stumps and feeling vulnerable because he was in a low position when he opened fired.


Officers also found .38-caliber pistol rounds in a safe, which Botha said Pistorius owned illegally and for which he said the athlete would be charged with a crime. However, Botha also acknowledged investigators didn't take photographs of the ammunition and let Pistorius' supporters at the crime scene take them away.


Botha said the holster for the 9 mm pistol was found under the left side of the bed, the side on which Steenkamp slept. He also implied it would have been impossible for Pistorius to get the gun without checking to see if Steenkamp was there. Roux later argued that Pistorius had suffered an injury to his right shoulder and wore a "medical patch" the night of the killing which forced him to sleep on the left side of the bed.


Steenkamp was shot in the head over her right ear and in her right elbow and hip, breaking her arm and hip, Botha said. However, Roux later asked Botha if Steenkamp's body showed "any pattern of defensive wounds." The detective said no.


Botha also said the shots were fired from 1.5 meters (five feet), and that police found three spent cartridges in the bathroom and one in the hallway connecting the bathroom to the bedroom. However, later on cross-examination by the defense, Botha said he wasn't a forensics expert and couldn't answer some questions.


Police also found two iPhones in the bathroom and two BlackBerrys in the bedroom, Botha said, adding that none had been used to phone for help. Roux later suggested that a fifth phone, not collected by the police, was used by Pistorius to make calls for a hospital and help. After the hearing, Roux told journalists that Pistorius' defense team had the phone, but did not elaborate.


Guards at the gated community where Pistorius lives did call the athlete, Botha said. The detective said that all the athlete said was: "I'm all right."


He didn't hang up, Botha said, and the guards heard him uncontrollably weep.


"Was it part of his premeditated plan, not to switch off the phone and cry?" Roux asked sarcastically.


___


Gerald Imray reported from Johannesburg. Associated Press writer Michelle Faul in Johannesburg contributed to this report.


___


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


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Obama can't kick his legacy down road




President Obama has a small window of opportunity to get Congress to act on his priorities, Gloria Borger says.




STORY HIGHLIGHTS


  • Gloria Borger: Prospect of deep budget cuts was designed to compel compromise

  • She says the "unthinkable" cuts now have many supporters

  • The likelihood that cuts may happen shows new level of D.C. dysfunction, she says

  • Borger: President may want a 2014 House victory, but action needed now




(CNN) -- So let's try to recount why we are where we are. In August 2011, Washington was trying to figure out how to raise the debt ceiling -- so the US might continue to pay its bills -- when a stunt was hatched: Kick the can down the road.


And not only kick it down the road, but do it in a way that would eventually force Washington to do its job: Invent a punishment.



Gloria Borger

Gloria Borger



If the politicians failed to come up with some kind of budget deal, the blunt instrument of across-the-board cuts in every area would await.


Unthinkable! Untenable!


Until now.


In fact, something designed to be worse than any conceivable agreement is now completely acceptable to many.



And not only are these forced budget cuts considered acceptable, they're even applauded. Some Republicans figure they'll never find a way to get 5% across-the-board domestic spending cuts like this again, so go for it. And some liberal Democrats likewise say 8% cuts in military spending are better than anything we might get on our own, so go for it.


Opinion: Forced budget cuts a disaster for military


The result: A draconian plan designed to force the two sides to get together has now turned out to be too weak to do that.


And what does that tell us? More about the collapse of the political process than it does about the merits of any budget cuts. Official Washington has completely abdicated responsibility, taking its dysfunction to a new level -- which is really saying something.


We've learned since the election that the second-term president is feeling chipper. With re-election came the power to force Republicans to raise taxes on the wealthy in the fiscal cliff negotiations, and good for him. Americans voted, and said that's what they wanted, and so it happened. Even the most sullen Republicans knew that tax fight had been lost.


Points on the board for the White House.






Now the evil "sequester" -- the forced budget cuts -- looms. And the president proposes what he calls a "balanced" approach: closing tax loopholes on the rich and budget cuts. It's something he knows Republicans will never go for. They raised taxes six weeks ago, and they're not going to do it again now. They already gave at the office. And Republicans also say, with some merit, that taxes were never meant to be a part of the discussion of across-the-board cuts. It's about spending.


Politics: Obama more emotional on spending cuts


Here's the problem: The election is over. Obama won, and he doesn't really have to keep telling us -- or showing us, via staged campaign-style events like the one Tuesday in which he used police officers as props while he opposed the forced spending cuts.


What we're waiting for is the plan to translate victory into effective governance.


Sure, there's no doubt the president has the upper hand. He's right to believe that GOP calls for austerity do not constitute a cohesive party platform. He knows that the GOP has no singular, effective leader, and that its message is unformed. And he's probably hoping that the next two years can be used effectively to further undermine the GOP and win back a Democratic majority in the House.


Slight problem: There's plenty of real work to be done, on the budget, on tax reform, on immigration, climate change and guns. A second-term president has a small window of opportunity. And a presidential legacy is not something that can be kicked down the road.


Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Gloria Borger.






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Sandi Jackson joins husband in pleading guilty

Jesse Jackson Jr. pleads guilty to misusing campaign funds.









Former U.S. Rep. Jesse Jackson Jr. and his wife, former Chicago Ald. Sandi Jackson, pleaded guilty today in what prosecutors said was a conspiracy to siphon about $750,000 in federal campaign funds for their personal use.

Jackson Jr. entered a negotiated plea of guilty this morning on one felony count of conspiracy to commit false statements, wire fraud and mail fraud. He could face years in prison when he is sentenced this summer.

Sandi Jackson pleaded guilty this afternoon to a single charge of willingly filing a false tax return, tied to the same allegations that the couple repeatedly tapped the ex-congressman’s campaign fund, used the money for personal use and then made fraudulent campaign and tax disclosures to cover up the misconduct.


Both Jacksons, wearing dark suits in court, had the opportunity to make short statements to the judge about their wrongs. But unlike her husband, Sandi Jackson merely answered the judge's questions with a string of "Yes, sirs" and eventually sniffled loudly and dabbed her face with tissue as it came time to make her plea.

"Guilty," she said in a tiny voice, choking back tears.

Jackson Jr. was present for his wife's hearing – and in fact took the seat that Sandi had used behind the defense table when he entered his own guilty plea earlier in the day. They left the courtroom holding hands.


Prosecutors say the couple enjoyed a life of luxury with campaign cash. About 3,100 personal purchases were made on campaign credit cards, totaling $582,772.58, prosecutors said.

“These expenditures included high-end electronic items, collector’s items, clothing, food and supplies for daily consumption, movie tickets, health club dues, personal travel and personal dining expenses,” the court filing states.








Jackson Jr. personally opened a bank account under the name “Jesse Jackson Jr. for Congress" in January 2006, then the following year withdrew $43,350 to buy a gold Rolex watch, according to documents filed with Jackson Jr.'s plea agreement state that.


Other expenses included more than $4,000 on a cruise and $243 at a Build-a-Bear workshop. “Records from Best Buy reveal that defendant purchased multiple flat-screen televisions, multiple Blu-Ray DVD players, numerous DVD’s for his Washington, D.C. home,” the documents state.

Prosecutors said $60,000 was spent on restaurants, nightclubs and lounges; $31,700 on personal airfare; $16,000 on sports clubs and lounges; $17,000 on tobacco shops; $5,800 on alcohol; $14,500 on dry cleaning; $8,000 on grocery stores and $6,000 at drug stores.


In one of the more exotic purchases, Jackson used campaign funds in the spring of 2011 to pay a taxidermist in Montana $7,058 for two mounted elk heads to be shipped to his office in Washington. This was the beginning of an FBI sting, according to court documents.

A year after the purchase, the taxidermist was asked to buy the elk heads back or provide the names of people who might buy them or build storage containers for them. This led to an undercover FBI agent offering to pay $5,300 for the heads. The money was to be wired to Jackson’s personal bank account, the documents state.


"Sir, for years I lived in my campaign," Jackson Jr. told U.S. District Judge Robert Wilkins when entering his plea. "I used monies that should have been used for campaign purposes, and I used them for myself personally, to benefit me personally.  And I am acknowledging that that which the government has presented is accurate."


As he entered the courtroom this morning, Jackson Jr. gave his wife a peck on the cheek and took his seat. At one point he stepped from the defense table and shook hands with a lead FBI agent in the case, Tim Thibault, who was seated with government prosecutors.


Jackson Jr. spoke softly during the hearing and sometimes dabbed his eyes with a tissue. When asked by Wilkins how he would plead, Jackson answered: “I am guilty, your honor.”


Pressed by the judge on whether he was freely entering the plea, the former congressman acknowledged he had been under psychiatric care but said he had not been treated for addiction to alcohol or narcotics.

Asked whether he understood what was happening, he answered, "Sir, I've never been more clear in my life."


Leaving the courtroom, Jackson Jr. told a reporter, "Tell everybody back home I'm sorry I let 'em down, OK?"


At a press conference following the hearing, Jackson Jr. attorney Reid Weingarten said Jackson's health problems contributed to his crimes.

"It turns out that Jesse has serious health issues," he said. "Those health issues are directly related to his present predicament. That's not an excuse, that's just a fact."


As part of Jackson Jr.'s plea deal, the parties have agreed that sentencing guidelines call for a term of between 46 and 57 months in prison, but the sides reserved the right to argue for a sentence above or below that range for him when he is sentenced June 28.


After his release from an expected prison term, he might face three additional years of supervised release, or probation.


Also under the guideline range agreed to by Jackson Jr. and lawyers on both sides, what had been a maximum fine of $250,000 drops to one in the range of $10,000 to $100,000. In addition, he remains subject to a forfeiture of $750,000.


The judge said Jackson could be released before sentencing and ordered him to be processed by the U.S. Marshal's Service, surrender his passport and undergo drug testing while awaiting sentencing.
His attorney asked if Jackson Jr. could be allowed to travel back and forth from Chicago, saying he essentially lived in both places, and the judge agreed.


Sandi Jackson's sentencing was scheduled for July 1, a few days after her husband’s. There was dispute between government and defense lawyers about where she would fall under the federal sentencing guidelines, which the judge is not bound to follow.

On the high end, favored by the government, she would face a possible prison term of 18 to 24 months and a fine of $4,000 to $40,000. Her lawyers are pushing for 12 to 18 months and a fine of $3,000 to $30,000. The count has a maximum penalty of three years.


Guidelines are only advisory to judges. Sandi Jackson, like her husband, was given consideration for acceptance of responsibility for her crimes.


As part of her guilty plea, Sandi Jackson agreed to pay $168,500 in restitution.


Dan Webb, Sandi Jackson's attorney and a former top federal prosecutor in Chicago, told reporters following her court appearance that she had faced a "hard decision" to plead guilty rather than fight the charges against her.

"She made the decision to plead guilty today to a one-tax charge, and that's the only thing she pleaded guilty to, because that's the charge the government filed against her," Webb said.

He said the Jackson family had been through a difficult time as a result of Jackson, Jr.'s "mental and emotional issues."

"This gives her a chance now to put it behind her, to focus on her family, to focus on her two young children, and to move forward with the rest of her life," he said.


As the Jacksons arrived at federal court in Washington, D.C. this morning, neither responded to questions from reporters. The two stepped out of a black SUV, and Sandi Jackson walked ahead of her husband, carrying a satchel. Jackson Jr. looked up when reporters shouted questions but said nothing and looked down as he went into the building.

Minutes later, his father, the Rev. Jesse Jackson Sr., and other family members walked through the front entrance of the courthouse, their arms linked together.

Jackson Jr., 47, was in the House of Representatives for 17 years until he resigned last November. Sandi Jackson, 49, was a Chicago alderman from 2007 until she stepped down in January. Both are Democrats.

Jackson Jr. began a mysterious medical leave of absence last June for what was eventually described as bipolar disorder. Though he did not campaign for re-election, he won another term last Nov. 6 while being treated at the Mayo Clinic in Minnesota. He left office two weeks later, saying he was cooperating with federal investigators.

Married for more than 20 years, the Jacksons have a 12-year-old daughter and a 9-year-old son. The family has homes in Washington and on Chicago’s South Side.

Washington defense attorney Stan Brand, the former general counsel of the House of Representatives, said Tuesday that Jackson Jr.’s case involved the largest sum of money he’s seen in a case involving personal use of campaign money.

“Historically, there have been members of Congress who either inadvertently or maybe purposefully, but not to this magnitude, used campaign funds inappropriately,” he said.

Earlier this morning, Judge Wilkins disclosed that he had a past link to Jackson Jr.’s father. But both prosecutors and the Jackson defense waived any attempt to transfer the case, the judge noted in a court memorandum.

Wilkins wrote that he has no interest or bias in the case, but disclosed the following:

“In 1988, while a law student, Judge Wilkins served as a co-chair of Harvard Law School students supporting the presidential campaign of Rev. Jesse L. Jackson, Sr., and on October 24, 1988, Judge Wilkins introduced Rev. Jackson when he came to speak at a campus event supporting the presidential candidacy of Governor Michael Dukakis. On March 21, 1999, while an attorney, Judge Wilkins appeared as a guest on a show hosted by Rev. Jackson on the CNN network entitled ‘Both Sides with Jesse Jackson’ to discuss a civil rights lawsuit in which Judge Wilkins was a plaintiff. Judge Wilkins believes that he has spoken to Rev. Jackson only on these two occasions, and he does not believe that he has ever met or spoken to the two defendants in these cases.”


kskiba@tribune.com





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Bulgarian government resigns amid growing protests


SOFIA (Reuters) - Bulgaria's government resigned on Wednesday after mass protests against high power prices and falling living standards, joining a long list of European administrations felled by austerity during four years of debt crisis.


Prime Minister Boiko Borisov, an ex-bodyguard who took power in 2009 on pledges to root out graft and raise incomes in the European Union's poorest member, faces a tough task of propping up eroding support ahead of an expected early election.


Wage and pension freezes and tax hikes have bitten deep in a country where earnings are less than half the EU average and tens of thousands of Bulgarians have rallied in protests that have turned violent, chanting "Mafia" and "Resign".


Moves by Borisov on Tuesday to blame foreign utility companies for the rise in the cost of heating homes was to no avail and an eleventh day of marches saw 15 people hospitalized and 25 arrested in clashes with police.


"My decision to resign will not be changed under any circumstances. I do not build roads so that blood is shed on them," said Borisov, who began his career guarding the Black Sea state's communist dictator Todor Zhivkov.


A karate black belt, Borisov has cultivated a Putin-like "can-do" image since he entered politics as Sofia mayor in 2005 and would connect with voters by showing up on the capital's rutted streets to oversee the repair of pot-holes.


But critics say he has often skirted due process, sometimes to the benefit of those close to him, and his swift policy U-turns have wounded the public's trust.


The spark for the protests was high electricity bills, after the government raised prices by 13 percent last July. But it quickly spilled over into wider frustration with Borisov and political elites with perceived links to shadowy businesses.


"He made my day," said student Borislav Hadzhiev in central Sofia, commenting on Borisov's resignation. "The truth is that we're living in an extremely poor country."


POLLS, PRICES


The prime minister's final desperate moves on Tuesday included cutting power prices and risking a diplomatic row with the Czech Republic by punishing companies including CEZ, moves which conflicted with EU norms on protection of investors and due process.


CEZ officials were hopeful on Wednesday that it would be able to avoid losing its distribution license after all and officials from the Bulgarian regulator said the company would not be punished if it dealt with breaches of procedure.


But shares in what is central Europe's largest publicly-listed company fell another 1 percent on Wednesday.


If pushed through, the fines for CEZ and two other foreign-owned firms will not encourage other investors in Bulgaria, who already have to navigate complicated bureaucracy and widespread corruption and organized crime to take advantage of Bulgaria's 10-percent flat tax rate.


Financial markets reacted negatively to the turbulence on Wednesday. The cost of insuring Bulgaria's debt rose to a three-month high and debt yields rose some 15 basis points, though the country's low deficit of 0.5 percent of gross domestic product means there is little risk to the lev currency's peg against the euro.


Borisov's interior minister indicated that elections originally planned for July would probably be pulled forward by saying that his rightist GERB party would not take part in talks to form a new government.


MILLIONS GONE


GERB's woes have echoes in another ex-communist EU member, Slovenia, where demonstrators have taken to the streets and added pressure to a crumbling conservative government.


A small crowd gathered in support of Borisov outside Sofia's parliament, which is expected to approve his resignation on Thursday, while bigger demonstrations against the premier were expected in the evening.


Unemployment in the country of 7.3 million is far from the highs hit in the decade after the end of communism but remains at 11.9 percent. Average salaries are stuck at around 800 levs ($550) a month and millions have emigrated, leaving swathes of the country depopulated and little hope for those who remain.


GERB's popularity has held up well and it still led in the latest polls before protests grew in size last weekend, but analysts say the opposition Socialists should draw strength from the demonstrations.


The leftists, successors to Bulgaria's communist party, have proposed tax cuts and wage hikes and are likely to raise questions about public finances if elected.


(Additional reporting by Angel Krasimirov; editing by Patrick Graham)



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M&A deals lift Wall Street shares nearer a record high

NEW YORK (Reuters) - U.S. stocks rose on Tuesday as this year's ongoing surge in merger activity suggested investors were still finding value in the market even as indexes closed in on all-time highs.


Office Depot Inc surged 9.4 percent to $5.02 after a person familiar with the matter said the No. 2 U.S. office supply retailer was in advanced talks to merge with smaller rival OfficeMax Inc , which jumped more than 20 percent.


News of the potential move came just days after Berkshire Hathaway and a partner agreed to acquire H.J. Heinz Co for $23 billion, and following a revised $20 billion takeover of Mexican brewer Grupo Modelo by Anheuser-Busch InBev .


Deal activity has helped equities resist a pullback as investors use dips in stocks as buying opportunities. The S&P is up about 7 percent so far in 2013 and has climbed for the past seven weeks in its longest weekly winning streak since January 2011, though most of the weekly gains have been slim.


The Dow industrials closed 0.9 percent away from their record high while S&P 500 was 2.2 percent off its peak.


"Deals are good for the market," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago. "The fact that they're being done is a positive."


More than $158 billion in deals has been announced so far in 2013, more than double the activity in the same period last year and accounting for 57 percent of global deal volumes, according to Thomson Reuters Deals Intelligence.


The Dow Jones industrial average <.dji> gained 53.91 points, or 0.39 percent, to 14,035.67. The Standard & Poor's 500 Index <.spx> gained 11.15 points, or 0.73 percent, to 1,530.94. The Nasdaq Composite Index <.ixic> gained 21.56 points, or 0.68 percent, to 3,213.59.


Other stocks in the office supplies sector also rose. Larger rival Staples Inc shot up 13.1 percent to $14.65 as the best performer on the S&P 500.


"Equity investors have to be encouraged by M&A since, if the number crunchers are offering large premiums, that shows how much value is still in the market," said Mike Gibbs, co-head of the equity advisory group at Raymond James in Memphis, Tennessee.


On the downside, health insurance stocks tumbled, led by a 6.4 percent drop in Humana Inc to $73.01. The company said the government's proposed 2014 payment rates for Medicare Advantage participants were lower than expected and would hurt its profit outlook.


UnitedHealth Group lost 1.2 percent to $56.66. The Morgan Stanley healthcare payor index <.hmo> dropped 1.2 percent.


Wall Street's strong start to the year was fueled by better-than-expected corporate earnings, as well as a compromise in Washington that temporarily averted automatic spending cuts and tax hikes that are predicted to damage the economy.


The compromise on across-the-board spending cuts postponed the matter until March 1, at which point the cuts take effect. Ahead of the debate over the cuts, known as sequestration, further gains for stocks may be difficult to come by.


Some investors say the debate could be the catalyst for a long anticipated sell-off after the market's recent strong run.


Carter Worth, a technical analyst at Oppenheimer, pointed to the "especially complacent action of the past six weeks," noting that, as of Friday, stocks have gone 33 sessions without a dip of more than 1.5 percent.


"We would be selling aggressively into the market's current strength," he said in a research note.


Economic data showed the NAHB/Wells Fargo Housing Market index unexpectedly edged down to 46 in February from 47 in the prior month as builders faced higher material costs.


According to the Thomson Reuters data through Monday morning, of the 391 companies in the S&P 500 that have reported results, 70.1 percent have exceeded analysts' expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters.


Fourth-quarter earnings for S&P 500 companies have risen 5.6 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


Express Scripts rose 2.5 percent to $56.98 after the pharmacy benefits manager posted fourth-quarter earnings.


About two stocks rose for everyone that fell on the New York Stock Exchange and Nasdaq. About 6.48 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, in line with the daily average so far this year.


(Additional reporting by Chuck Mikolajczak Ryan Vlastelica and Rodrigo Campos; Editing by Chizu Nomiyama, Kenneth Barry and Nick Zieminski)



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Pistorius: Thought lover an intruder in shooting


PRETORIA, South Africa (AP) — Oscar Pistorius wept Tuesday as his defense lawyer read the athlete's account of how he shot his girlfriend to death on Valentine's Day, claiming he had mistaken her for an intruder.


Prosecutors, however, told a packed courtroom that the double-amputee known as the Blade Runner intentionally and mercilessly shot and killed 29-year-old Reeva Steenkamp as she cowered inside a locked bathroom.


Pistorius told the Pretoria Magistrate's Court at a bail hearing he felt vulnerable in the presence of an intruder inside the bathroom because he did not have his prosthetic legs on, and fired into the bathroom door.


The Valentine's Day shooting in Pistorius' home in Pretoria shocked South Africans and many around the world who idolized him for overcoming adversity to become a sports champion, competing in the London Olympics last year in track besides being a Paralympian. Steenkamp was a model and law graduate who made her debut on a South African reality TV program that was broadcast on Saturday, two days after her death.


In a major point of contention emerged even during Tuesday bail hearing, prosecutor Gerrie Nel said Pistorius took the time to put on his prostheses, walked seven meters (yards) from the bed to the enclosed toilet inside his bathroom and only then opened fire. Three of the bullets hit Steenkamp of the four that were fired into the door, Nel said.


Pistorius said in his sworn statement that after opening fire, he realized that Steenkamp was not in his bed.


"It filled me with horror and fear," Pistorius said. The 26-year-old Olympian said he put on his prosthetic legs and tried to kick down the door before finally bashing it in with a cricket bat. Inside, he said he found Steenkamp, slumped over. He said he lifted her bloodied body into his arms and tried to carry her downstairs to seek medical help.


But by then, it was too late.


"She died in my arms," the athlete said.


Nel charged Pistorius with premeditated murder and said the athlete opened fire after the couple engaged in a shouting match and she fled to the bathroom.


"She couldn't go anywhere. You can run nowhere," Nel said. "It must have been horrific."


A conviction of premeditated murder carries a mandatory sentence of life in jail.


Chief Magistrate Desmond Nair ruled that Pistorius must face the harshest bail requirements available in South African law. That means Pistorius' lawyers must offer "exceptional" reasons for the athlete to be free before trial, besides simply giving up his two South African passports and posting a cash bond.


Pistorius sobbed softly as his lawyer, Barry Roux, insisted the shooting was an accident and that there was no evidence to substantiate a murder charge.


"We submit it is not even murder," he said. "There is no concession this is a murder."


Pistorius' emotional outbursts again played a part in how the hearing progessed, as it did during an initial hearing Friday. At one point, Nair stopped the hearing after Pistorius wept as Roux read a portion of the athlete's statement describing how Steenkamp bought him a Valentine's Day present, but wouldn't let him open it the night before.


"Maintain your composure," the magistrate said. "You need to apply your mind here."


Pistorius' voice quivered when he answered: "Yes, my lordship."


Affidavits from friends of Pistorius and Steenkamp described the two as a charming, happy couple. The night before the killing, they said, Pistorius and Steenkamp had canceled separate plans in order to spend the night before Valentine's Day together at his home, in a gated neighborhood.


Outside the court, several dozen singing women protested against domestic violence and waved placards urging that Pistorius be refused bail. "Pistorius must rot in jail," one placard said.


As details emerged at the dramatic court hearing in the capital, Steenkamp's body was being cremated Tuesday at a memorial service in the south-coast port city of Port Elizabeth. Six pallbearers carried her coffin, draped with a white cloth and covered in white flowers, into the church for the private service.


South Africa has some of the world's worst rates of violence against females and the highest rate in the world of women killed by an intimate partner, according to a study by the Medical Research Council. Professor Rachel Jewkes of the council said at least three women are killed by a partner every day in this country of 50 million.


Steenkamp campaigned actively against domestic violence and had tweeted on Twitter that she planned to join a "Black Friday" protest by wearing black in honor of a 17-year-old girl who was gang-raped and mutilated two weeks ago.


What "she stood for, and the abuse against women, unfortunately it's gone right around and I think the Lord knows that statement is more powerful now," her uncle Mike Steenkamp, the family's spokesman, said after her memorial.


He said the family had planned a big get-together at Christmas but that had not been possible. "But we are here today as a family and the only one who's missing is Reeva," he said, breaking down and weeping.


Pistorius has lost several valuable sponsorships estimated to be worth more than $1 million a year.


On Tuesday, the athlete was ousted from a pro-gay campaign being launched in Cape Town, organizers said. In a video axed from the campaign, Pistorius says: "You don't have to worry. You don't have to change. Take a deep breath and remember, 'It will get better.'"


And Clarins Group, which owns Thierry Mugler Perfumes, said in an email that "out of respect and compassion for the families involved in this tragedy, Thierry Mugler Perfumes have taken the decision to withdraw all of their advertising campaigns featuring Oscar Pistorius."


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