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.

READ MORE: Will Monte Paschi banking scandal throw open Italy's election race?

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.

READ MORE: Italian Elections 2013: Fame di sapere (hunger for knowledge)

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Justice Department joins lawsuit against Armstrong

WASHINGTON (Reuters) - The United States accused cyclist Lance Armstrong on Friday of defrauding the U.S. Postal Service by taking its sponsorship money at the same time he was doping and using performance-enhancing drugs in violation of cycling rules.

The government joined a civil suit against Armstrong, stripped of his seven Tour de France titles and banned for life from cycling in 2012 after accusations he had cheated for years. In January, he said the accusations were true in an interview with television host Oprah Winfrey.

A battle with the U.S. government over civil fraud charges threatens to sap what remains of the once-revered athlete's reputation, and hurt his wallet.

Armstrong and his teammates from Tailwind Sports wore the logo of the U.S. Postal Service during their record-breaking wins.

"This lawsuit is designed to help the Postal Service recoup the tens of millions of dollars it paid out to the Tailwind cycling team based on years of broken promises," Ronald Machen, the U.S. attorney for Washington, D.C., said in a statement.

The sponsorship money totaled more than $30 million, the government said.

Armstrong plans to contest the suit because the Postal Service was not actually damaged, his lawyer, Robert Luskin, said.

"The Postal Service's own studies show that the service benefited tremendously from its sponsorship - benefits totaling more than $100 million," the lawyer said in a statement.

Prosecutors have said they do not expect to charge him with a crime.

Former Armstrong teammate Floyd Landis filed a sealed whistleblower suit against Armstrong in 2010. The decision by the government to join the suit triggered its unsealing.

"I had come to a point in my life where I decided that I had to tell the truth for the sake of my conscience," Landis, who also admitted to cheating, said in a statement on Friday released by his lawyer.

WHISTLEBLOWER LAW

Armstrong faces other suits arising out of his admission of cheating. This month, marketing firm SCA Promotions Inc alleged in a Texas state court that the cyclist defrauded it of $12.1 million in bonuses plus interest.

In January, two California men sued Armstrong and his book publishers, claiming that his memoirs were filled with lies but were billed as non-fiction.

The U.S. government is suing under the False Claims Act, an 1863 law that encourages private individuals to file suit when they have evidence of fraud involving government money.

When the government believes a suit has merit, it may take over the litigation. The individuals, or whistleblowers, get a portion of the proceeds if the case is successful.

The government joins 20 to 25 percent of all False Claims Act suits filed, and the government almost always wins the cases it joins, said John Phillips, who represents whistleblowers at the Phillips & Cohen law firm.

"That's a very good sign for the case: that the government after its own investigation, after looking at all the facts and the law, has decided to join the case," said Phillips, who is not involved in the Armstrong case.

Since the law was revitalized in 1986, it has been used frequently against military contractors, pharmaceutical companies and hospitals.

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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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SAfrica police replace top Pistorius investigator

PRETORIA, South Africa (AP) — South African police appointed a new chief investigator Thursday in the Oscar Pistorius murder case, replacing a veteran detective after unsettling revelations that the officer was charged with seven counts of attempted murder.

The sensational twist in the state's troubled investigation fueled growing public fascination with the case against the double-amputee Olympian, who is charged with premeditated murder in the Valentine's Day slaying of his girlfriend, Reeva Steenkamp.

Pistorius, a sporting icon and source of inspiration to millions until the shooting last week, is backed by a high-powered team of lawyers and publicists. The abruptness of his fall, and its gruesome circumstances, have gripped a global audience and put South Africa's police and judicial system under the spotlight.

The man at the center of the storm sat in the dock during his bail hearing, mostly keeping his composure in contrast to slumped-over outbursts of weeping on previous days in court. In front of Pistorius, defense lawyer Barry Roux pounced on the apparent disarray in the state's case, laying out arguments that amounted to a test run for the full trial yet to come.

Roux pointed to what he called the "poor quality" of the state's investigation and raised the matter of intent, saying Pistorius and Steenkamp had a "loving relationship" and the athlete had no motive to plan her killing.

Pistorius, 26, says he mistook Steenkamp for an intruder when he shot her through a locked bathroom door in his home. Prosecutors believe the shooting happened after the couple got into an argument, and prosecutor Gerrie Nel painted a picture of a man he said was "willing and ready to fire and kill."

Much of the drama Thursday, however, happened outside the courtroom as South African police scrambled to get their investigation on track.

In a news conference at a training academy, National Police Commissioner Riah Phiyega said a senior detective would gather a team of "highly skilled and experienced" officers to investigate the killing of 29-year-old Steenkamp, a model and budding reality TV contestant.

The decision to put police Lt. Gen. Vinesh Moonoo in charge came soon after word emerged that the initial chief investigator, Hilton Botha, is facing attempted murder charges, and a day after he offered testimony damaging to the prosecution.

Botha acknowledged Wednesday in court that nothing in Pistorius' version of the fatal shooting contradicted what police had discovered, even though there have been some discrepancies. Botha also said that police left a 9 mm slug in the toilet and lost track of allegedly illegal ammunition found in Pistorius' home.

"This matter shall receive attention at the national level," Phiyega told reporters after testimony ended in the third day of Pistorius' bail hearing.

Bulewa Makeke, spokeswoman for South Africa's National Prosecuting Authority, said the attempted murder charges had been reinstated against Botha on Feb. 4. Police say they found out about it after Botha testified in Pistorius' bail hearing Wednesday.

Botha and two other police officers had seven counts of attempted murder reinstated against them in connection with a 2011 shooting incident in which they allegedly fired shots at a minibus they were trying to stop.

Makeke indicated the charges were reinstated because more evidence had been gathered. She said the charge against Botha was initially dropped "because there was not enough evidence at the time."

Pistorius' main sponsor, Nike, meanwhile, suspended its contract with the multiple Paralympic champion, following eyewear manufacturer Oakley's decision to suspend its sponsorship. Nike said in a statement on its website: "We believe Oscar Pistorius should be afforded due process and we will continue to monitor the situation closely."

On Thursday, Chief Magistrate Desmond Nair asked the defense regarding Pistorius' bail application: "Do you think there will be some level of shock if the accused is released?"

Defense lawyer Roux responded: "I think there will be a level of shock in this country if he is not released."

Prosecutor Nel suggested signs of remorse from Pistorius had nothing to do with whether he planned to kill his girlfriend.

"Even if you plan a murder, you plan a murder and shoot. If you fire the shot, you have remorse. Remorse might kick in immediately," Nel said.

As Nel summed up the prosecution's case opposing bail, Pistorius began to weep in the crowded courtroom, leading his brother, Carl Pistorius, to reach out and touch his back.

"He (Pistorius) wants to continue with his life like this never happened," Nel went on, prompting Pistorius, who was crying softly, to shake his head.

"The reason you fire four shots is to kill," Nel persisted.

Earlier Thursday, Nair questioned Botha over delays in processing records from phones found in Pistorius' house following the slaying.

"It seems to me like there was a lack of urgency," the magistrate said.

Botha is to appear in court in May to face seven counts of attempted murder in connection with the minibus shooting incident. He has been quoted in the South African media as denying allegations he was drunk at the time, saying he and the other officers were trying to stop the vehicle and didn't know there were people inside.

While Botha has been dropped from the Pistorius investigation, he has not been suspended from the police force, Phiyega said, and could still be called by defense lawyers at trial.

Pistorius, wearing the same gray suit, blue shirt and gray tie combination he has worn throughout the bail hearing, stood ramrod straight in the dock, then sat calmly looking at his hands.

Roux said an autopsy showed that Steenkamp's bladder was empty, suggesting she had gone to the bathroom to use the toilet, rather than fled there to escape an enraged Pistorius, as prosecutors contend.

"The known forensics is consistent" with Pistorius' statement, Roux said, asking that bail restrictions be eased for his client.

But the prosecutor said Pistorius hadn't given guarantees to the court that he wouldn't leave the country if he was facing a life sentence. Nel also stressed that Pistorius shouldn't be given special treatment.

"'I am Oscar Pistorius. I am a world-renowned athlete.' Is that a special circumstance? No," Nel said. "His version (of the killing) is improbable."

Nel said the court should focus on the "murder of the defenseless woman."

Botha testified Thursday that he investigated a 2009 complaint against Pistorius by a woman who said the athlete assaulted her. However, Pistorius did not hurt the woman, who in fact injured herself when she kicked a door at Pistorius' home, Botha said.

___

AP Sports Writer Gerald Imray contributed to this report from Johannesburg

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Drew Peterson: 'The media turned me into a monster'

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. Peterson is 59.

The sentence was handed down after Peterson, who did not testify at his trial, made an emotional appeal to the judge, at times appearing to choke up as he argued that he was convicted by "rumors, gossip, outrageous lies and, most importantly, unreliable hearsay."

"I don't deserve this," he told Burmila. "I don't deserve this."

Peterson, a former Bolingbrook police sergeant, was convicted last fall of drowning Savio in her bathtub.

Peterson began his appeal to the judge today by telling him, "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.

After the sentencing, State's Atty. James Glasgow dismissed the outburst as a "shrill, kind of feminine screech."

Peterson insisted to the judge 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 on the 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.

"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 deserve to die, but insited it was 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.

He then 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 nine family members who have died, six 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.

In arguing for a maximum sentence, Glasgow reminded the judge about the damage done to his young children with 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."

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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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Homebuilding takes a breather; wholesale prices up

WASHINGTON (Reuters) - U.S. builders broke ground on fewer homes last month but a jump in permits for future construction to a 4-1/2-year high indicated the housing market recovery remains on track.

Another report on Wednesday showed wholesale prices rose in January for the first time in four months. However, the gain was smaller than expected and left scope for the Federal Reserve to keep buying bonds to stimulate the economy.

Housing starts dropped 8.5 percent in January to an 890,000-unit annual rate, pulled down by a sharp drop in the volatile multi-family unit category, the Commerce Department said.

Starts for single-family homes hit their highest level since July 2008, and permits for future construction, which lead starts by at least a month, were at their highest level since June 2008.

The drop in starts followed an outsized gain in December and was confined to the Northeast and Midwest, suggesting winter weather likely contributed to the pullback.

"The fundamentals are there and the drivers are looking good," said Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts. "We see more new construction this year. The only question is whether it will be in the multi-family or single-family segment."

Housing has shifted from being a headwind for the economy to being a pillar of support, although mortgage rates have crept higher in recent weeks, cooling loan demand.

Luxury homebuilder Toll Brothers on Wednesday reported disappointing quarterly results, hurt in part by lower selling prices, but other homebuilders have been able to take advantage of the recovering market.

A separate report from the Labor Department showed producer prices rose 0.2 percent last month as rebounding food costs offset declining gasoline prices. Wholesale prices had slipped 0.3 percent in December, and economists had expected them to rise 0.4 percent in January.

Food prices accounted for more than 75 percent of the rise in wholesale prices last month.

INFLATION PRESSURES MUTED

Away from the spike in food prices, the producer price report showed inflation pressures were generally muted.

In the 12 months through January, wholesale prices were up 1.4 percent and data on Thursday is expected to show consumer inflation below the U.S. central bank's goal of 2 percent.

"Inflationary pressures remain well contained," said Diane Swonk, chief economist at Mesirow Financial in Chicago. "The Federal Reserve would rather see inflation slightly higher in response to stronger economic conditions than benign because the recovery remains tepid."

In an effort to drive down borrowing costs and spur stronger growth, the Fed last year launched an open-ended bond buying program and said it would keep it up until it saw a substantial improvement in the outlook for the labor market.

But minutes of the U.S. central bank's January 29-30 meeting showed a number of policymakers believed the Fed might have to slow or stop asset purchases before seeing an acceleration in job growth because of concerns over the costs.

U.S. stocks fell on the minutes, with the Standard & Poor's 500 index posting its biggest one day percentage decline since mid-November.

The dollar rose against a basket of currencies. Prices for U.S. Treasury debt ended higher.

Wholesale prices excluding volatile food and energy costs edged up 0.2 percent last month after gaining 0.1 percent in December. In the 12 months through January, those so-called core prices rose 1.8 percent, the smallest gain since February 2011.

A surge in the cost of fresh and dried vegetables pushed up food prices in January. Gasoline prices surprisingly recorded another substantial decline last month, even though prices at the pump have been rising almost every week this year.

The core PPI was lifted by a jump in the cost of drugs, while passenger car and light truck prices fell.

(Additional reporting by Jason Lange; Editing by Andrea Ricci, Tim Ahmann and Leslie Adler)

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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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What legacy for Hillary on gay rights?

STORY HIGHLIGHTS

• Frida Ghitis: As secretary of state, Clinton made equality for gays a foreign policy value


• She says treatment of LGBT citizens is a microcosm of a nation's human rights approach


• She says Clinton used U.S. sway to advance LGBT rights as global standard


• Ghitis: Clinton gave a boost to human rights for all and nudge to process of freedom

Editor's note: Frida Ghitis is a world affairs columnist for The Miami Herald and World Politics Review. A former CNN producer and correspondent, she is the author of "The End of Revolution: A Changing World in the Age of Live Television." Follow her on Twitter: @FridaGColumns

(CNN) -- As Hillary Clinton makes a whirlwind round of appearances in her last days as secretary of state, one groundbreaking aspect of her work deserves a moment in the spotlight: In a bold departure with tradition, Clinton made the promotion of equality for gay people a core value of U.S. foreign policy.

That is a transformative change, one that advances the cause of human rights around the world -- not just for gays and lesbians, but for everyone.

Frida Ghitis

The way governments treat their LGBT (lesbian, gay, bisexual and transgender) citizens can tell us much about their overall approach to human rights and democracy. Mistreatment of sexual minorities is a microcosm of greater repression.

Take a look at the gruesome spectacle of young gay men executed by the government of Iran in the streets, for all to see. Or, look at the new anti-gay laws coming into effect in Russia's increasingly authoritarian regime. It is no accident that the growing repression of LGBT Russians coincides with a dramatic deterioration of political freedom and what the nonpartisan Freedom House called "the return of the iron fist in Russia."

It is clear that gays and lesbians are the canaries in the coal mine of human rights. When gays live under pressure, everyone should worry.

That, however, is not how Clinton explained it 14 months ago, when she stood before the Human Rights Council in Geneva, in front of an audience filled with representatives from Arab and African countries, from places where homosexuality is a crime, even one punishable by death, and declared that gay rights and human rights "are one and the same." Gay people, she explained, deserve equality simply because everyone does.

It was Human Rights Day, the commemoration of the signing of the 1948 U.N. Declaration of Human Rights, and she used the occasion to send a message to the world on behalf of the United States. She declared unequivocally that there is no exception for gay people when it comes to human rights.

Opinion: President Hillary Clinton? If she wants it

She admitted that the U.S. record on human rights for gays and lesbians "is far from perfect." But by proclaiming, without caveat or qualification, the American stance on the issue, she sent a signal to the rest of the world that, while equality for gay people is far from reached, the rightness of the goal is beyond debate, much like it is with equal rights for women or for racial minorities.

In doing this, she announced it was now the official policy of the U.S. government to promote the rights of LGBT people everywhere. Clinton has always been a couple of steps ahead of President Barack Obama when it comes to gay rights. It's a safe bet she persuaded him to jump on board and put the full force of the administration behind this new policy.

In Geneva that day, she announced that the president had instructed all U.S. government agencies working in other countries to "combat the criminalization of LGBT status and conduct" to help protect vulnerable LGBT, helping refugees and asylum seekers and responding to abuses.

Today, American diplomats, as part of their official mandate and as an explicit tenet of U.S. values, must speak up for the rights of individuals experiencing persecution on the basis of their sexual orientation, as when a couple were sentenced in Cameroon for "looking" gay.

News: Hillary Clinton talks future 'adventures'

America may be not as influential as it once was, but no country carries more weight; there's not even a close second. America's opinion matters if you want foreign aid or political assistance.

But it matters even more to people on the ground, eager, perhaps desperate to make their case before the authorities, their boss or their family. In the latter case, that it was the popular and respected Hillary Clinton making the argument undoubtedly made a difference on a personal level, even if dictators did not relent.

Clinton also noted that "being gay is not a Western invention; it is a human reality," and noted nations that have enacted protections for their gay citizens, including South Africa, Colombia and Argentina.

It was a rebuke to that tragicomic moment in 2007, when Iranian President Mahmoud Ahmadinejad told an audience in New York, "In Iran, we do not have homosexuals like you do in your country," prompting an explosion of laughter from the crowd. Of course, gay people live in Iran, where homosexuality is punishable by death.

America's stance, promoted so passionately by Clinton, is gradually becoming the global standard for human rights.

Under intense lobbying from America, the usually feckless and frequently counterproductive U.N. Human Rights Council adopted a measured entitled "Ending Violence Based on Sexual Orientation and Gender Identity," and another supporting equality, important symbols that this is a standard for the entire world.

Clinton moved the issue of equality for members of the LGBT community to the front of America's diplomatic agenda; in the process, she gave a boost to human rights for all and a considerable nudge to the inexorable progress of freedom. Let's hope her successor doesn't let up.

Follow us on Twitter @CNNOpinion.

Join us on Facebook/CNNOpinion.

The opinions expressed in this commentary are solely those of Frida Ghitis.

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Drew Peterson: Ex-attorney Brodsky meets with Stacy's sister

During a courtroom break this afternoon, Drew Peterson’s former lead attorney Joel Brodsky chatted in the hallway with the sister of Peterson’s missing fourth wife, Stacy.

Stacy’s sister Cassandra Cales wouldn’t discuss the content of the roughly five-minute conversation, but Brodsky said, "We were just discussing how to make sure that her sister Stacy isn't forgotten after Drew goes away."

Peterson is the sole suspect in Stacy’s 2007 disappearance, but he has not been charged. Prosecutors have said they believe Peterson killed Stacy and plan to review the case and whether to bring charges.

Attorneys continued to argue this afternoon about whether Peterson should get a new trial after his murder conviction last fall in the drowning of his third wife, Kathleen Savio.

If the judge does not grant a new trial, sentencing would come next for Peterson. Attorneys indicated that the sentencing hearing, if it happens, likely would be Thursday. Peterson, 59, faces 20-60 years in prison.
 
In arguing for a new trial, the defense said hearsay evidence and certain witnesses should never have been allowed at trial. Attorneys then turned to their argument that Brodsky's decision to call divorce attorney Harry Smith to testify scuttled Peterson's chance at a fair trial.
 
Smith testified at the murder trial last year that he had a phone conversation with  Stacy about whether she could use knowledge about Savio’s death in a potential divorce proceeding against Peterson. Some jurors have said Smith’s testimony convinced them Peterson was guilty.

"It was an awful decision,” defense attorney Steve Greenberg said in court. “It ruined the case -- we brought out the worst possible evidence, and the best evidence for the state."

Greenberg said Judge Edward Burmila has the opportunity to undo the problems caused by Brodsky's insistence on calling Smith to the stand.

“We have to give the courts a chance to correct errors that were made during a trial, and that’s what we’re doing here today," Greenberg told Burmila. "Ultimately, if you boil it down, Harry Smith's testimony was probably the most incriminating piece of evidence against Mr. Peterson, and it was brought out by the defense. There could be no reasonable trial strategy."

"Whatever kernel of impeachment Mr. Brodsky thought he was going to get out of it paled in comparison to the mountain of damage that it brought out," Greenberg said. "It was awful strategy,  and that strategy alone means Mr. Peterson should get a new trial from this court.”

Burmila asked if Peterson didn't bear some responsibility for listening to Brodsky over the objections of his other attorneys.

But Greenberg said a client doesn't get a say in trial strategy, and said that while Brodsky was wise to bring in experienced criminal attorneys, he never listened to them.

“It was a dictatorship," Greenberg said.

In the overflow room across the hall where media members and other court observers were listening to the proceedings in the courtroom, Brodsky groaned at every accusation.

"I'm a dictator," he said, shaking his head. "Unbelievable."

Earlier this afternoon, Peterson’s attorneys asked Burmila to throw out the jury’s guilty verdict and acquit their client of murder.

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