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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Google risks huge fine under new EU data rules: top official

BRUSSELS (Reuters) - Google's latest privacy policy could land it with a fine of upto $1 billion under a new law allowing Europe-wide challenges to U.S.-based Internet giants, Europe's top justice official said on Tuesday.

Viviane Reding, the European Union's commissioner for justice, said rules being finalized by the European parliament and EU countries would allow a single EU data regulator to fine companies on behalf of all national watchdogs.

"The one-stop-shop regulator could threaten a company which does not obey the rules with a fine of up to two percent of global turnover," Reding told journalists.

Asked what kind of offence would receive the full two percent fine Reding pointed to Google. "The test case (Google) is a clear one."

The overhaul of the existing EU data protection regime could come into effect next year and would allow for bigger single fines.

It would also require all countries to have fines. Some states do not now levy penalties.

Google's total revenue in 2012 amounted to $50 billion which would make a two percent fine $1 billion.

Under current European rules, only individual countries can levy fines against companies that violate data privacy laws. Fines range from 300,000 euros to 600,000 euros.

Reding said that the ongoing dispute between EU data protection regulators and search engine Google showed the weaknesses of the current system, which relies on each country identifying and punishing privacy breaches.

She added that Google's decision to ignore a warning by regulators in October to change its privacy policy was a clear-cut case for a fine.

Google said it had not ignored warnings and had since amended its privacy policy.

European data watchdogs have said they plan to take "repressive" action against Google by this summer for its privacy policy, which took effect last March and allows the search engine to pool user data from across all its services ranging from YouTube to Gmail.

While regulators say Google's policy infringes users' privacy, the company said it is not breaking any laws.

The new law now would place greater responsibility on companies such as Facebook to protect users' information and threaten those who breach the code with fines.

U.S. companies have been lobbying heavily against the regulation which forces them to seek water-tight permission from users for collecting their data and also gives users more rights to obtain and delete their own data from services like Facebook.

The European Parliament is currently reviewing the rules drafted by the European Commission. They will then need the consent of EU member nations before becoming law, a process that could take up to a year.

(Editing by David Cowell)

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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 model 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.

In a major point of contention that has already emerged, 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 o0pening 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 giving up and 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.

The Valentine's Day shooting death hocked South Africans and many around the world who idolized Pistorius 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.

Nel charged Pistorius with premeditated murder and said the athlete opened fire after they engaged in a shouting match.

"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.

"Was it to kill her, or was it to get her out?" he asked about the broken-down door. "We submit it is not even murder. 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 read out by Roux in the hearing 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 of Pretoria.

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. The family said members had arrived from around the world. 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. Another council study estimates a child or woman is raped every four minutes. While homicide rates have dropped, the number of women killed by current or former partners has increased, said the council's Professor Rachel Jewkes. At least three women are killed by a partner every day in the country of 50 million, she said.

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."

___

Associated Press writer Michelle Faul in Johannesburg and AP photographer Schalk van Zuydam in Port Elizabeth, South Africa, 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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How can U.S. deal with cyber war?

Michael Hayden says lack of domestic agreement is driving U.S. to take the offense on cyber attacks.

STORY HIGHLIGHTS

• Obama administration beefing up effort to counter cyberattacks


• Michael Hayden says emphasis is on striking first, as the U.S. does with drone attacks


• Ex-CIA director says drone policy reflects lack of consensus on handling prisoners


• Hayden: Is killing terrorists preferred because of division over how to try them?

Editor's note: Gen. Michael V. Hayden, who was appointed by President George W. Bush as CIA director in 2006 and served until February 2009, is a principal with the Chertoff Group, a security consulting firm. He serves on the boards of several defense firms and is a distinguished visiting professor at George Mason University.

(CNN) -- Human decisions have complex roots: history, circumstance, personality, even chance.

So it's a dangerous game to oversimplify reality, isolate causation and attribute any particular course of action to one or another singular motive.

But let me tempt fate, since some recent government decisions suggest important issues for public discussion.

Michael Hayden

Over the past several weeks, press accounts have outlined a series of Obama administration moves dealing with the cyberdefense of the United States.

According to one report, the Department of Defense will add some 4,000 personnel to U.S. Cyber Command, on top of a current base of fewer than a thousand. The command will also pick up a "national defense" mission to protect critical infrastructure by disabling would-be aggressors.

A second report reveals another administration decision, very reminiscent of the Bush Doctrine of preemption, to strike first when there is imminent danger of serious cyberattack against the United States.

Both of these represent dramatic and largely welcome moves.

But they also suggest the failure of a deeper national policy process and, more importantly, the failure to develop national consensus on some very difficult issues.

Chinese military leading cyber attacks

Let me reason by analogy, and in this case the analogy is the program of targeted killings supported and indeed expanded by the Obama administration. Again, I have no legal or moral objections to killing those who threaten us. We are, as the administration rightly holds, in a global state of war with al Qaeda and its affiliates.

But at the level of policy, killing terrorists rather than capturing them seems to be the default option, and part of that dynamic is fairly attributable to our inability to decide where to put a detainee once we have decided to detain him.

Congress won't let him into the United States unless he is going before a criminal court, and the administration will not send him to Guantanamo despite the legitimate claim that a nation at war has the right to detain enemy combatants without trial.

Failing to come to agreement on the implications of the "we are at war" position, we have made it so legally difficult and so politically dangerous to detain anyone that we seem to default to killing those who would do us harm.

Clearly, it's an easier path: no debates over the location or conditions of confinement. Frequently such action can be kept covert. Decision-making is confined to one branch of government. Congress is "notified." Courts are not involved.

Besides, we are powerful. We have technology at our fingertips. We know that we can be precise, and the professionalism of our combatants allows them to easily meet the standards of proportionality and distinction (between combatants and noncombatants) in such strikes, despite claims to the contrary.

And we also believe that we can live with the second and third order effects of targeted killings. We believe that the care we show will set high standards for the use of such weapons by others who will inevitably follow us. We also believe that any long-term blowback (akin to what Gen. Stanley McChrystal calls the image of "arrogance" such strikes create) is more than offset by the immediate effects on America's safety.

I agree with much of the above. But I also fear that the lack of political consensus at home can drive us to routinely exercise an option whose long-term effects are hard to discern. Which brings us back to last week's stories on American cyberdefense.

In the last Congress, there were two prominent bills introduced to strengthen America's cyberdefenses. Neither came close to passing.

In the Senate, the Collins-Lieberman Bill created a near perfect storm with the American Civil Liberties Union and the American Chamber of Commerce weighing in strongly against the legislation. That two such disparate bodies had issues with the legislation should suggest how far we are from a national consensus.

In the House, a modest proposal from the Intelligence Committee to enhance cybersharing between the private sector and the National Security Agency was met with a presidential veto threat over alleged privacy concerns and was never even considered by the Senate.

Indeed, my preferred option -- a more active and well-regulated role for NSA and Cyber Command on and for American networks -- is almost a third rail in the debate over U.S. cybersecurity. The cybertalent and firepower at Fort Meade, where both are headquartered, are on a short leash because few dare to even address what we would ask them to do or what we would permit them to do on domestic networks.

And hence, last week's "decisions." Rather than settle the roles of these institutions by dealing with the tough issues of security and privacy domestically, we have opted for a policy not unlike targeted killing. Rather than opt for the painful process of building consensus at home, we are opting for "killing" threats abroad in their "safe haven."

We appear more willing to preempt perceived threats "over there" than spill the domestic political blood that would be needed to settle questions about standards for the defense of critical infrastructure, the role of government surveillance or even questions of information sharing. And we seem willing to live with the consequences, not unlike those of targeted killings, of the precedent we set with a policy to shoot on warning.

I understand the advantage that accrues to the offense in dealing with terrorists or cyberthreats. I also accept the underlying legality and morality of preemptive drone or cyberstrikes.

I just hope that we don't do either merely because we don't have the courage to face ourselves and make some hard decisions at home.

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The opinions expressed in this commentary are solely those of Michael Hayden.

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2 teens die in Antioch crash: 'I just saw headlights spin'

Two teenagers were killed when their SUV crashed into a tree in Antioch in heavy rain, authorities said.

Joel Wittkamp, 16, and Ashley Seay, 17, were traveling west when their Chevrolet Trailblazer left the road in the 27000 block of Wilmot Road around 7 p.m. Monday, according to the Lake County sheriff's office. The SUV went through a yard before hitting the tree, the office said.

Both teens died on the scene. Joel, who was driving, was from Antioch and Ashley was from Lindenhurst, according to the Lake County coroner's office.

Authorities said they believe weather contributed to the crash. A man who lives where the crash occurred said it was raining hard when the accident occurred.

"It was pouring," said Tim Staples.

Staples said he was home when "I just saw the headlights spin ... We ran out and you could see the car was in the tree, the tree was on the car ... a mangled car I couldn't recognize."

"We checked the scene," he said. "We had flashlights and we looked inside. It didn't look promising, it looked really bad."

He said firefighters reached the scene in 7 or 8 minutes. "It took them an hour to get them out. They had to take the top of the car off."

Staples said the car hit a tree he had planted on his property 30 years ago.

Joel attended Antioch High School, officials said.

"We have counselors who are available," said Principal John Whitehurst. "Someone is following the young man’s schedule. If there were kids close to him, we are identifying who they are."

Whitehurst noted an earlier tragedy last November, when freshman Nicole Parfitt, 14, and her father were killed in a plane crash. "I know this is going to bring back some really unfortunate memories with kids intimately familiar with the incident," he said.

Ashley Seay came from a large family, with younger twin sisters and a few older siblings who have already graduated from Lakes Community High School, said Steve Plank, principal of the Lake Villa campus.

"There was a deep connection between the family, the school and community," he said.

Ashley was a cosmetology student who attended the high school until about noon, then spent her afternoons at the Lake County High Schools Technology Campus in Grayslake.

"That was a passion of hers," Plank said.

Counselors were available when classes began today, for students and staff.

"We have a number of faculty who are deeply affected by this, who have also needed support," he said. "It's kind of tough to come to school in the morning and realize there's a hole in your classroom."

At both high schools, an adult followed the schedule of Ashley and Joel, sitting in their seats for each class.

"We put an adult who is part of our human services team to sit in the seat," said Plank. "When kids show up to class and that seat is empty, it's a tough situation."

chicagobreaking@tribune.com

Twitter: @ChicagoBreaking

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Venezuela's Maduro would win vote if Chavez goes: poll

CARACAS (Reuters) - Venezuelan Vice President Nicolas Maduro would win a presidential vote should his boss Hugo Chavez's cancer force him out, according to the first survey this year on such a scenario in the South American OPEC nation.

Local pollster Hinterlaces gave Maduro 50 percent of potential votes, compared to 36 percent for opposition leader Henrique Capriles.

Chavez made a surprise return to Venezuela on Monday, more than two months after cancer surgery in Cuba, to continue treatment at home for the disease that is jeopardizing his 14-year socialist rule.

He has named Maduro, 50, a former bus driver and union activist, as his preferred successor.

Capriles, 40, a center-left state governor who lost to Chavez in a presidential vote last year, likely would run again.

Chavez still has not spoken in public since his December 11 operation in Cuba. Venezuelans were debating on Tuesday the various possible scenarios after his homecoming - from full recovery to resignation or even death from the cancer.

There was widespread expectation Chavez would soon be formally sworn in for his new six-year term at the Caracas military hospital where officials said he was staying. The January 10 ceremony was postponed while he was in Cuba.

"The president's timeline is strictly linked to his medical evolution and recovery," said Rodrigo Cabezas, a senior member of Chavez's ruling Socialist Party who, like other officials, would not comment on when he might be sworn in.

CAPRILES ANGRY

Should Chavez be forced out, Venezuela's constitution stipulates an election must be held within 30 days, giving Capriles and the opposition Democratic Unity coalition another chance to end the socialists' lengthy grip on power.

Capriles, who crossed swords with Hinterlaces at various points during the presidential election, again accused its director, Oscar Schemel, of bias in the latest survey.

"That man is not a pollster, he's on the government's payroll," Capriles told local TV.

"He said in December I would lose the Miranda governorship," he added, referring to his defeat of government heavyweight Elias Jaua, now foreign minister, in that local race.

Opinion surveys are notoriously controversial and divergent in Venezuela, with both sides routinely accusing pollsters of being in the pocket of the other. But Hinterlaces successfully forecast Chavez's win with 55 percent of the vote in October.

Its latest poll was of 1,230 people between January 30-February 9.

Polls last year showed Capriles - an energetic basketball-playing lawyer who admires Brazil's centrist mix of free-market economics with strong social welfare policies - as more popular than any of Chavez's senior allies.

But Chavez's personal blessing of Maduro, on the eve of his last cancer surgery, has transformed his status and made him the heir apparent for many of the president's supporters.

As de facto leader since mid-December, Maduro also has built up a stronger public profile, copying the president's techniques of endless live TV appearances, especially to inaugurate new public works or promote popular policies like subsidized food.

He lacks Chavez's charisma, however, and opponents have slammed him as a "poor imitation" and incompetent.

EMOTION

Local analyst Luis Vicente Leon said that should Chavez die, Maduro would benefit from the emotion unleashed among his millions of passionate supporters in Venezuela.

"The funeral wake for Chavez would merge into the election campaign," he told a local newspaper, noting how Argentine President Cristina Fernandez's popularity surged when her husband and predecessor Nestor Kirchner died in 2010.

Maduro already has implemented an unpopular devaluation of the local currency and said more economic measures are coming this week in what local economists view as austerity measures after blowout spending prior to last year's election.

In Caracas, the streets were quieter after tumultuous celebrations of Chavez's homecoming by supporters on Monday. A few journalists stood outside the military hospital.

Prayer vigils were planned in various parts of Venezuela.

"We hope Chavez will stay governing because he is a strong man," supporter Cristina Salcedo, 50, said in Caracas.

Student demonstrators who had chained themselves near the Cuban Embassy last week, demanding more information on Chavez's condition, called off their protest after his return.

Until photos were published of him on Friday, the president had not been seen by the public since his six-hour December 11 operation, the fourth since cancer was detected in mid-2011.

The government has said Chavez is breathing through a tracheal tube and struggling to speak.

Bolivian President Evo Morales arrived in Caracas on Tuesday in the hope of visiting his friend and fellow leftist.

(Additional reporting by Deisy Buitrago, Mario Naranjo, Girish Gupta in Caracas, Carlos Quiroga in La Paz; Editing by Bill Trott)

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Yen resumes fall after G20, U.S. holiday thins trade

LONDON (Reuters) - The yen resumed falling on Monday after Japan signaled it would push ahead with expansionist monetary policies having escaped criticism from the world's 20 biggest economies at the weekend.

Industrial metals also dipped and European shares were soft on lingering worries about the economic outlook, especially for the euro zone. While the risk of an inconclusive outcome in Italy's forthcoming election added to investor concerns.

However, activity was curtailed by the closure of markets in the United States for the Presidents' Day holiday.

The yen, which has dropped 20 percent against the dollar since mid-November, fell further after financial leaders from the G20 promised not to devalue their currencies to boost exports and avoided singling out Japan for any direct criticism.

The dollar rose 0.5 percent to 93.95 yen, near a 33-month peak of 94.47 yen set a week ago. The euro added 0.3 percent to 125.40 yen, to be midway between Friday's two-week low of 122.90 and a 34-month high of 127.71 yen hit earlier this month.

Strategists said the yen was likely to stay weak, though its decline could lose momentum until it becomes clear who will be taking the helm at the Bank of Japan when the current governor steps down on March 19.

"The yen probably will weaken a little further in anticipation of more aggressive easing under a new leadership team at the Bank of Japan," said Julian Jessop, chief global economist at Capital Economics.

Japan's Prime Minister Shinzo Abe is poised to nominate the new governor in the next few days. Sources have told Reuters that former financial bureaucrat Toshiro Muto, considered likely to be less radical than other candidates, was leading the field.

Meanwhile the euro dipped slightly against the dollar when European Central Bank president Mario Draghi said the currency's recent gains made any rise in inflation less likely and added that he had yet to see any improvement in the euro zone economy.

Speaking before the European Parliament, Draghi said the euro's exchange rate was not a policy target but was important for growth and stability, adding that appreciation of the euro "is a risk".

The comments left the euro down 0.2 percent at $1.3334.

Elsewhere in the currency market, sterling hit a seven-month low against the dollar, after a key policymaker made comments about the need for further weakness and recent poor data which has kept alive worries of another British recession.

Sterling fell 0.25 percent to $1.5476 having earlier touched $1.5438, its lowest since July 13.

DATA LOOMS

A big week for data on the outlook for the world's economy weighed on other riskier asset markets following the recent dire fourth-quarter growth numbers for the euro zone and Japan, along with Friday's soft U.S. manufacturing figures.

In European markets, attention is focused on the euro area Purchasing Managers' Indexes for February and German sentiment indices due later in the week which could affect hopes for a recovery this year.

Analysts expect Thursday's euro area flash PMI indices, which offer pointers to economic activity around six months out, to show growth stabilizing across the recession-hit region, leaving intact hopes for a recovery in the second half of 2013.

Concerns over an inconclusive outcome in the Italian election on Sunday and Monday have added to the weaker sentiment as a fragmented parliament could hamper a future government's efforts to reform the struggling economy.

The worries about the outlook for Italy were encouraging investors back into safe-haven German government bonds on Monday, with 10-year Bund yields easing 3.5 basis points to be around 1.63 percent.

"Political uncertainty will keep Bunds well bid this week," ING rate strategist Alessandro Giansanti said, adding that only better than expected economic data could create selling pressure on German debt in the near term.

Italian 10-year yields were 4 basis points higher on the day at 4.41 percent.

EARNINGS HIT

European equity markets were taking their lead from corporate earnings reports which have been reflecting the sluggish economic conditions across the region.

Danish brewer Carlsberg , which generates just over 60 percent of its sales in western Europe, became the latest to report a weaker-than-expected quarterly profit, sending its shares to their lowest level in almost a month.

The 5.8-percent drop for shares in the world's fourth biggest brewery helped send the FTSEurofirst 300 index <.fteu3> of top European shares down 0.2 percent. Germany's DAX <.gdaxi>, France's CAC-40 <.fchi> and Britain's FTSE-100 <.ftse> ranged between 0.4 percent up and 0.15 percent lower.

Earlier, the G20 statement and subsequent comment from Prime Minster Abe indicating a renewed drive to stimulate the Japanese economy lifted the Nikkei stock index <.n225> by 2.1 percent, near to its highest level since September 2008.

MSCI's world equity index <.miwd00000pus> was flat as markets extended a two-week period of consolidation that has followed the big run-up in January, when demand was buoyed by the efforts of central banks to stimulate the world economy.

Data from EPFR Global, a U.S.-based firm that tracks the flows and allocations of funds globally, shows investors pulled $3.62 billion from U.S. stock funds in the latest week, the most in 10 weeks after taking a neutral stance the prior week.

But demand for emerging market equities remained strong, with investors putting $1.81 billion in new cash into stock funds, the fund-tracking firm said.

CHINA RETURN

In the commodity markets, traders played catch-up after a week-long holiday last week in China, the world's second biggest consumer of many raw materials, which had kept activity subdued, with worries about the economic outlook weighing on sentiment.

Copper, for which China is the world's largest consumer, dipped to a near three-week low at $8,125.25 a metric ton (1.1023 tons) on the London futures market. Benchmark tin and nickel also touched three-week lows.

Gold managed to edge away from six-month lows as jewelers in China returned to the physical market after the Lunar New Year holiday but a lack of demand from U.S. markets saw the precious metal slip back to be down 0.1 percent to $1,607.06 an ounce.

Crude oil markets were mostly steady after the weak U.S. industrial production data on Friday [ID:nL1N0BF44A] was seen dampening demand, while tensions in the Middle East lent some support.

"We continue to see a mixed picture out of the United States. Industry output was lower than expected but that shouldn't affect the general upward direction," Olivier Jakob, analyst at Geneva-based Petromatrix, said.

Brent crude was down 20 cents at $117.46 a barrel after posting its first weekly loss since the first half of January. U.S. crude slipped 24 cents to $95.62.

(Additional reporting by Marius Zaharia and Ron Bousso; Editing by Philippa Fletcher and Alastair Macdonald)

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Jerry Buss, Los Angeles Lakers' owner, dies at 80

LOS ANGELES (AP) — Jerry Buss, the Los Angeles Lakers' playboy owner who shepherded the NBA franchise to 10 championships from the '80s Showtime dynasty to the Kobe Bryant era, died Monday, his assistant said.

Buss died at Cedars-Sinai Medical Center in Los Angeles, said Bob Steiner, his assistant. He was 80.

He'd been hospitalized for cancer, but the immediate cause of death was kidney failure, Steiner said.

Under Buss' leadership since 1979, the Lakers became Southern California's most beloved sports franchise and a worldwide extension of Hollywood glamour. Buss acquired, nurtured and befriended a staggering array of talented players and basketball minds during his Hall of Fame tenure.

Few owners in sports history can even approach Buss' accomplishments with the Lakers, who made the NBA finals 16 times through 2011 during his 32 years in charge, winning 10 titles between 1980 and 2010. The Lakers easily are the NBA's winningest franchise since he bought the club.

Few owners have ever been more beloved by their players than Buss, who always referred to the Lakers as his extended family. Working with front-office executives Jerry West and Mitch Kupchak, Buss spent lavishly to win his titles despite lacking a huge personal fortune, often running the NBA's highest payroll while also paying high-profile coaches Pat Riley and Phil Jackson.

Always an innovative businessman, Buss paid for the Lakers through both their wild success and his own groundbreaking moves to raise revenue. He co-founded a basic-cable sports television network and sold the naming rights to the Forum at times when both now-standard strategies were unusual, adding justification for his induction into the Pro Basketball Hall of Fame in 2010.

Magic Johnson and fellow Hall of Famers Kareem Abdul-Jabbar and James Worthy formed lifelong bonds with Buss during the Lakers' run to five titles in nine years in the 1980s, when the Lakers earned a reputation as basketball's most exciting team with their glamorous Showtime style.

Jackson then led Shaquille O'Neal and Bryant to a threepeat from 2000-02, rekindling the Lakers' mystique, before Bryant and Pau Gasol won two more titles under Jackson in 2009 and 2010.

Although Buss was proudest of his two hands full of NBA title rings, he also was a scholar, Renaissance man and bon vivant who epitomized California cool — and a certain Los Angeles lifestyle — for his entire public life.

The father of six rarely appeared in public without at least one attractive, much younger woman on his arm at USC football games, boxing matches, poker tournaments — and, of course, Lakers games from his private box at Staples Center, which was built under his watch.

Buss earned a Ph.D. in chemistry at age 24 and had careers in aerospace and real estate development before getting into sports. With money largely from his Santa Monica real-estate ventures, Buss bought the then-struggling Lakers, the NHL's Los Angeles Kings and both clubs' arena — the Forum — from Jack Kent Cooke in a $67.5 million deal that was the largest sports transaction in history at the time.

In January 2011, Forbes estimated the Lakers were worth $643 million — the second-most valuable NBA franchise.

Buss also helped change televised sports by co-founding the Prime Ticket network in 1985, even receiving a star on Hollywood Walk of Fame in 2006 for his work in television. Breaking the contemporary model of subscription services for televised sports, Buss' Prime Ticket put beloved broadcaster Chick Hearn and the Lakers' home games on basic cable.

Buss also sold the naming rights to the Forum in 1988 to Great Western Savings & Loan — another deal that was ahead of its time.

Born in Salt Lake City, Gerald Hatten Buss was raised in Wyoming and attended USC for graduate school, eventually becoming a chemistry professor and working as a chemist for the Bureau of Mines before his life took an abrupt turn into wealth and sports.

The former mathematician claimed his fortune grew out of a $1,000 real-estate investment in a West Los Angeles apartment building with partner Frank Mariani, an aerospace engineer.

Buss purchased Cooke's entire Los Angeles sports empire in 1979, including a 13,000-acre ranch in Kern County. Buss' love of basketball was the motivation for his purchase, and he immediately worked to transform the Lakers — who had won just one NBA title since moving west from Minneapolis in 1960 — into a star-powered endeavor befitting Hollywood.

"One of the first things I tried to do when I bought the team was to make it an identification for this city, like Motown in Detroit," he told the Los Angeles Times in 2008. "I try to keep that identification alive. I'm a real Angeleno. I want us to be part of the community."

Buss' plans immediately worked: Johnson, Abdul-Jabbar and coach Paul Westhead led the Lakers to the 1980 title. Johnson's ball-handling wizardry and Abdul-Jabbar's smooth inside game made for an attractive style of play evoking Hollywood flair and West Coast cool.

Riley, the former broadcaster who fit the L.A. image perfectly with his slick-backed hair and chiseled good looks, was surprisingly promoted by Buss early in the 1981-82 season after West declined to co-coach the team. Riley became one of the best coaches in NBA history, leading the Lakers to four straight NBA finals and four titles, with Worthy, Michael Cooper, Byron Scott and A.C. Green playing major roles.

Overall, the Lakers made the finals nine times in Buss' first 12 seasons while rekindling the NBA's best rivalry with the Boston Celtics, and Buss basked in the worldwide celebrity he received from his team's achievements. His womanizing and partying became Hollywood legend, with even his players struggling to keep up with Buss' lifestyle.

Johnson's HIV diagnosis and retirement in 1991 staggered Buss and the Lakers, the owner recalled in 2011. The Lakers struggled through much of the 1990s, going through seven coaches and making just one conference finals appearance in an eight-year stretch despite the 1996 arrivals of O'Neal, who signed with Los Angeles as a free agent, and Bryant, the 17-year-old high schooler acquired in a draft-week trade.

Shaq and Kobe didn't reach their potential until Buss persuaded Jackson, the Chicago Bulls' six-time NBA champion coach, to take over the Lakers in 1999. Los Angeles immediately won the next three NBA titles in brand-new Staples Center, AEG's state-of-the-art downtown arena built with the Lakers as the primary tenant.

After the Lakers traded O'Neal in 2004, they hovered in mediocrity again until acquiring Gasol in a heist of a trade with Memphis in early 2008. Los Angeles made the next three NBA finals, winning two more titles.

Through the Lakers' frequent successes and occasional struggles, Buss never stopped living his Hollywood dream. He was an avid poker player, frequently participating in high-stakes tournaments, and a fixture on the Los Angeles club scene well into his 70s, when a late-night drunk-driving arrest in 2007 — with a 23-year-old woman in the passenger seat of his Mercedes-Benz — prompted him to cut down on his partying.

Buss owned the NHL's Kings from 1979-87, and the WNBA's Los Angeles Sparks also won two league titles under Buss' ownership. He also owned Los Angeles franchises in World Team Tennis and the Major Indoor Soccer League.

Buss' children moved into leadership roles with the Lakers in their father's later years. Jim Buss, the Lakers' executive vice president of player personnel and the second of Buss' six children, has taken over much of the club's primary decision-making responsibilities in the last few years, while daughter Jeanie is a longtime executive on the franchise's business side — and Jackson's longtime companion.

Yet Jerry Buss served two terms as President of the NBA's Board of Governors, and was actively involved in the 2011 lockout negotiations, developing blood clots in his legs attributed to his extensive travel during that time

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Borneo tension linked to rebel deal

STORY HIGHLIGHTS

• More than 100 Filipinos arrived by boat on the Malaysian coast last week


• They say they represent a sultanate that once ruled the area


• The move seems to be a response to a recent peace deal in the Philippines


• The leaders of the sultanate appear to have felt left out of the accord, an expert says

(CNN) -- The peculiar standoff on Borneo between Malaysian security forces and a group of men from the southern Philippines has its roots in a recent landmark peace deal between Manila and Muslim rebels, according to an expert on the region.

More than 100 men from the mainly Muslim southern Philippines came ashore in the Malaysian state of Sabah on Borneo early last week demanding to be recognized as representatives of a sultanate that has historical claims on the area.

Their claims touch on an unresolved territorial question between the Philippines and Malaysia, as well as Manila's efforts to improve relations with Islamic insurgents in the country's south after decades of violence.

Malaysian police and armed forces soon surrounded the village in the eastern Sabah district of Lahad Datu where the men had gathered. Police officials said they were negotiating with the group in an effort to persuade its members to return to their homes in the Philippines peacefully.

The Philippine government also urged them to come back to the country, saying it hadn't authorized their voyage. There was no indication of a resolution to the standoff on Monday.

The men claim to be the Royal Army of the Sultanate of Sulu, which once encompassed Sabah, and say they don't want their people to be sent away from the area, Malaysian authorities said. There are conflicting claims about to what extent the men are armed.

Eroded power

Over the weekend, comments appeared in the news media from representatives of the sultanate, whose power is now largely symbolic, saying that their followers who had gone to Sabah planned to stay where they were.

"Nobody will be sent to the Philippines. Sabah is our home," Jamalul Kiram, a member of the sultanate's ruling family, told reporters in Manila on Sunday, according to Agence France-Presse.

The sultanate's claim to Sabah plays a long-standing and important role in the Philippine government's relationship with the country's Muslim minority and with neighboring Malaysia, said Julkipli Wadi, the dean of the Institute of Islamic Studies at the University of the Philippines.

Established in the 15th century, the Sultanate of Sulu became an Islamic power center in Southeast Asia that at one point ruled Sabah.

But the encroachment of Western colonial powers, followed by the emergence of the Philippines and Malaysia as independent nation states, steadily eroded the sultanate's power, according to Wadi.

It became "a sultanate without a kingdom" to rule over, he said. Sulu is now a province within the Republic of the Philippines.

But the sultanate has nonetheless retained influence over some people in the southern Philippines and Sabah who still identify themselves with it, according to Wadi.

Excluded from a peace deal

The members of the sultanate's royal family, although riven by internal disputes over who the rightful sultan is today, appear to have felt isolated by the provisional accord signed in October by the Philippine government and the Moro Islamic Liberation Front, which has fought for decades to establish an independent Islamic state in southern Philippines.

Malaysia, a mainly Muslim country, helped facilitate the agreement.

Kiram was cited by AFP as saying that the sultanate's exclusion from the deal, which aims to set up a new autonomous region to be administered by Muslims, prompted the decision to send the men to Sabah this month.

Dispatching the boat loads of followers to Lahad Datu served to make the sultanate's presence felt, according to Wadi.

"The whole aim is not to create conflict or initiate war, it is just to position themselves and make governments like Malaysia and the Philippines recognize them," he said.

Historical ties

The economic, cultural and historical links between Sabah and the nearby Philippines islands, as well as the porous nature of the border between the two, means that many of the Filipino men have friends and relatives in Lahad Datu.

But the historical connection still fuels tensions between Malaysia and the Philippines, with Manila retaining a "dormant claim" to Sabah through the Sultanate of Sulu, according to the CIA World Factbook.

According to the official Philippine News Agency, Manila still claims much of the eastern part of Sabah, which was leased to the British North Borneo Company in 1878 by the Sultanate of Sulu. In 1963, Britain transferred Sabah to Malaysia, a move that the sultanate claimed was a breach of the 1878 deal.

Malaysia still pays a token rent to the sultanate for the lease of Sabah, according to Wadi.

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Country singer Mindy McCready dead in apparent suicide: officials

LITTLE ROCK, Arkansas —

Troubled country music star Mindy McCready, whose platinum singing career was shadowed by substance abuse and suicide attempts, was found dead on Sunday of an apparent self-inflicted gunshot wound, an Arkansas sheriff said. She was 37.

McCready's body was found on the porch of a house in Heber Springs, Arkansas, on Sunday afternoon. She was pronounced dead at the scene "from what appears to be a single self-inflicted gunshot wound," the Cleburne County Sheriff's Office said in a statement.

Deputies had been dispatched to the area following reports of "shots fired," the sheriff's office said.

McCready, whose albums include "Ten Thousand Angels" and "If I Don't Stay the Night," had a complicated personal life, marked by a history of substance abuse, suicide attempts, family disputes and tragedy

In January, the singer’s boyfriend, David Wilson, was found dead of an apparent self-inflicted gunshot wound. But questions surrounding the circumstances of the shooting led authorities to keep his death under investigation.  

In an interview with "Dateline" in late January, McCready denied any involvement in her live-in boyfriend's death after Canning asked her whether she had shot him.

"Oh my God, no. Oh my God, no," she responded. "He was my life. We were each other's life. There's no way to tell where one of us began and the other ended. We slept together every night holding hands."

Reaction to her death

For All-Star pitcher Roger Clemens issued a statement this morning that he heard McCready was trying to get "peace and in her life," according to USA Today. "The few times that I had met her and her manager/agent they were extremely nice," the statement read.

The New York Daily News in 2008 reported that Clemens and McCready had a decade-long affair that started when the singer was only 15. McCready never refuted the report, and in fact said she had "known Roger Clemens for a long time." Later, she confirmed the relationship with Clemens was sexual, but not until after she was 18.

Some fellow musicians paid tribute to McCready on Twitter as news of her death spread.

"My thoughts and prayers go out to Mindy McCready and her family today," country singer Tracy Lawrence tweeted.

Country star Carrie Underwood wrote, "I grew up listening to Mindy McCready... so sad for her family tonight. Many prayers are going out to them."

Born in Fort Myers, Florida, McCready learned to sing as a child at her local Pentecostal church. She moved to Nashville, Tennessee, to break into the country music business at the age of 18, according to allmusic.com.

She achieved early success with her 1996 debut album, "Ten Thousands Angels," which sold 2 million copies. Four other studio albums followed.

While successful in her career, McCready's personal life had begun to unravel in recent years.

In 2004 she was convicted of prescription drug fraud and placed on parole. Three years later she spent time in jail for violating her parole terms.

She had two young sons. Her first, Zander, was born in 2006. As her personal problems deepened, she became embroiled in a legal dispute over custody.

In November 2011, she left Florida with Zander and fled to Arkansas. McCready's mother, who had custody of the child, filed a missing person report against her daughter, and regained custody.

Her son with Wilson, Zayne, was born last year.

McCready appeared on the television show "Celebrity Rehab with Dr. Drew."

According to the biography posted on VH1's website as part of her appearance on the show, McCready said that she believed her only true addiction was to violent relationships.

In 2011 McCready appeared on HBO's show "Celebrity Close Calls" about life and death situations. That same year she also appeared on the network's "Celebrity Ghost Stories."

Her fifth album, "I'm Still Here," was released to acclaim in 2010.

The sheriff's office said McCready's body would be taken to the Arkansas State Crime Lab for an autopsy, adding that "the matter will be fully investigated."

Reuters and the Los Angeles Times contributed

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