Top detective appointed new Pistorius investigator

PRETORIA, South Africa (AP) — South Africa's top detective was appointed lead investigator in the Oscar Pistorius case Thursday, replacing a veteran policeman who was charged with attempted murder in the latest shock development to hit a case being watched closely by the nation.

National Police Commissioner Riah Phiyega promised that a team of "highly skilled and experienced" officers would investigate the killing of Pistorius' 29-year-old girlfriend. Pistorius, 26, has been charged with premeditated murder in the case.

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 in Pistorius' bail hearing.

Pistorius, an Olympic runner whose lower legs were amputated when he was less than a year old, killed his girlfriend Reeva Steenkamp in the predawn hours of Valentine's Day. He claims he mistook her for an intruder when he shot her through a locked door in a bathroom in his home. Prosecutors say the shooting happened after the couple got into an argument and allege the killing was deliberate, carried out with no mercy.

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

"This matter shall receive attention at the national level," Phiyega told reporters soon after the end of proceedings in the third day of Pistorius' bail hearing. The case has riveted South Africa and much of the world and has placed the country's judicial system under close scrutiny.

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 relation to a 2011 shooting incident. Botha and his two colleagues allegedly fired shots at a minibus they were trying to stop.

Asked about Botha's court performance and handling of the investigation, Phiyega said South Africa's police force "can stand on its own" compared to others around the world.

Makeke, the spokeswoman for the national prosecution office, had said before Botha was dismissed from the Pistorius case that he should be taken off, but added that it was up to the police force to make that decision.

Makeke indicated the charges were reinstated against Botha 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 brief statement on its website: "We believe Oscar Pistorius should be afforded due process and we will continue to monitor the situation closely."

The judge is still trying to decide whether to grant Pistorius bail, and under what conditions.

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

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

Opposing bail, prosecutor Gerrie Nel painted a picture of a man "willing and ready to fire and kill," and said signs of remorse from Pistorius do not mean that the athlete didn't intend 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 killing of Steenkamp, a 29-year-old model and budding reality TV contestant.

"It seems to me like there was a lack of urgency," Nair said as the efficiency of the police investigation was questioned.

Botha is himself to appear in court in May to face seven counts of attempted murder. Botha was dropped from the case but not suspended from the police force, Phiyega said, and could still be called by defense lawyers at trial.

Pisatorius' behavior Thursday reflected the change of mood in the courtroom as his defense lawyers attacked police procedures and maintained his innocence.

Pistorius, in 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. On Tuesday and Wednesday, the athlete had been slumped over and sobbing uncontrollably at times as detail was read out of how Steenkamp died in his house.

"The poor quality of the evidence offered by investigative officer Botha exposed the disastrous shortcomings of the state's case," Roux said Thursday. "We cannot sit back and take comfort that he is telling the truth."

Roux also raised issue of intent, saying the killing was not "pre-planned" and referred to a "loving relationship" between the two.

He said an autopsy showed that Steenkamp's bladder was empty, suggesting she had gone to use the toilet as Pistorius had claimed. Prosecutors claim Steenkamp had fled to the toilet to avoid an enraged Pistorius.

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

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 had investigated a 2009 complaint against Pistorius by a woman who claimed the athlete had assaulted her. He said that Pistorius had not hurt her and that the woman had actually injured herself when she kicked a door at Pistorius' home.

The hearing is to continue Friday morning.

___

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

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Major snowstorm bearing down on Chicago region

A winter storm that is walloping the Great Plains will hit the Chicago area tonight and linger through the morning commute on Friday, possibly dumping up to half a foot of snow here.

A winter weather advisory has been issued for the Chicago area from 9 p.m. Thursday until 6 p.m. Friday,  with snow falling at a rate of an inch per hour overnight in some places and winds blowing at 25 to 30 miles per hour, according to the National Weather Service.

The snow will change over to freezing drizzle Friday morning, the weather service said.

Anywhere from 3 to 7 inches could fall here, but up to 16 inches are expected in Kansas and Nebraska, states expected to bear the brunt of the storm that has already closed schools, scuttled air travel and cut off power to some communities.

The storm could be the worst to hit the Midwest since a storm dumped 1 to 2 feet of snow from central Oklahoma to the lower Great Lakes and central New England between Jan. 31 to Feb. 2, 2011. The storm spawned the infamous Groundhog Day Blizzard that buried Chicago in 20.2 inches of snow.

Winter storm warnings and advisories are in place for much of the central and southern Plains and into the upper Midwest and Mississippi River Valley as the storm moves east, packing snow, sleet and freezing rain, the National Weather Service said.

Ice storm warnings were in effect for parts of northern Arkansas. The massive storm was expected to unleash thunderstorms and rain on its southern edge from eastern Texas to Georgia, the forecaster said.

Missouri Gov. Jay Nixon declared a state of emergency because of hazardous travel and possible power outages. Kansas Gov. Sam Brownback ordered state offices closed because of the storm.

Kansas City encountered an unusual mixture of snow, thunder and lightning, with 2 to 3 inches of snow falling per hour.

"When there is thunder and lightning, it's a pretty screaming clue that you are going to have massive snowfall," said Andy Bailey, a meteorologist with the National Weather Service in Pleasant Hill, Mo. A foot of snow is likely there by Thursday afternoon, he said.

In Nebraska, a woman was killed in a two-car Interstate 80 accident Wednesday afternoon near Giltner. The victim was identified as Kristina Leigh Allen, 19, of Calloway, Neb. The Nebraska State Patrol said weather was a factor.

More than 90 percent of flights out of Kansas City International Airport were canceled Thursday morning, according the airport website.

Some 55 commuter flights were canceled out of Denver International Airport overnight, mostly due to adverse conditions in Midwestern destinations in Kansas and Nebraska, said spokeswoman Laura Coale.

About 30 flights in and out of Omaha's Eppley Airfield were canceled by mid-morning Thursday.

The brunt of the snowstorm churned through Kansas, causing scores of accidents and vehicles sliding off roads, but no fatalities, according to the state highway patrol. Two semi-trucks got stuck on Interstate 35 near Emporia, Kansas, closing the southbound lane Thursday morning, according to transportation officials.

"Most of the issues we are dealing with are people getting stuck in the snow on ramps when they go to exit," said Gary Warner of the Kansas Highway Patrol office in Wichita. Snow on Wednesday resulted in about 50 crashes with no injuries and 11 with injuries on Wichita area highways, he said.

Some parts of southeast Kansas reported power outages because warmer temperatures created sleet and ice on power lines, said Sharon Watson, spokesperson for Kansas emergency management services.

The snowstorm had been predicted well in advance, prompting schools and offices to close and keeping a lot of people off the roads, said Watson.

In Oklahoma, up to 12.5 inches of snow fell in northern parts of the state while schools were closed throughout the Oklahoma City area because of treacherous driving conditions.

Areas of southwest and central Nebraska received 8 inches of snow overnight, according to the National Weather Service. Snowfall of 3 to 4 inches was widespread in central Nebraska.

Omaha and Lincoln in eastern Nebraska were bracing for about 8 or more inches of snow.

Even as students were making their way to school this morning in Iowa, administrators in dozens of districts announced early dismissals.

Few of the 150 members of the Iowa General Assembly were in the state capitol in Des Moines this morning, deciding not to brave the weather.

Snow from the powerful storm fell as far south as Tucson, Ariz. on Wednesday. The rare snowfall halted play at the World Golf Championships-Accenture Match Play tournament near Tucson.

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French hostages probably separated, Hollande says

PARIS/MAIDUGURI, Nigeria (Reuters) - Seven French hostages abducted by suspected Nigerian Islamist militants have probably been separated into two groups and efforts are continuing to locate them, French President Francois Hollande said on Thursday.

French, Nigerian and Cameroonian officials earlier denied French media reports that the seven family members, who were seized in Cameroon on Tuesday and taken over the border, had been freed.

"It's best to work discreetly for now to identify the exact place where our citizens are being held - most likely in two groups - and work out how we can free them under the best conditions," Hollande told reporters.

Paris was "fully cooperating" with Nigeria and Cameroon, he added, noting that French troops were nearby as their base was in the Chadian capital N'Djamena, 150 km (93 miles) away.

The Nigerian military located the hostages and kidnappers between Dikwa and Ngala in the far northeast, a Nigerian military source in Borno said earlier on Thursday, asking not to be identified.

Dikwa is less than 80 km (50 miles) from the border with Cameroon where the three adults and four children were taken hostage on Tuesday.

A senior Cameroonian military official declined to comment, saying the matter was too sensitive.

French gendarmes backed by special forces arrived in northern Cameroon on Wednesday to help locate the family, a local governor and French defense ministry official said.

Citing a Cameroon army officer, French media reported earlier on Thursday that the hostages had been found alive in a house in northern Nigeria. That was denied by the France, Nigeria and Cameroon.

DIFFICULT SITUATION

The abduction was the first case of foreigners being seized in the mostly Muslim north of Cameroon, a former French colony, and highlighted the threat to French interests in West Africa since Paris deployed thousands of troops to Mali to oust al Qaeda-linked Islamists who controlled the country's north.

But the region - like others in West and North Africa with porous borders - is considered within the operational sphere of Boko Haram and fellow Nigerian Islamist militants Ansaru.

On Sunday, seven foreigners were snatched from the compound of Lebanese construction company Setraco in northern Nigeria's Bauchi state, and Ansaru took responsibility.

Northern Nigeria increasingly is afflicted by attacks and kidnappings by Islamist militants. Ansaru, which rose to prominence only in recent months, has claimed the abduction in December of a French national who is still missing.

Three foreigners were killed in two failed rescue attempts last year after being kidnapped in northern Nigeria and Ansaru, blamed for those kidnaps, warned this could happen again.

"Staging a successful rescue is always difficult, but even more so if the kidnappers are waiting for it," said Peter Sharwood-Smith, Nigeria country manager of security firm Drum Cussac.

"After the death of three European hostages in rescue-intervention attempts last year, Nigeria and France will be hoping for a peaceful resolution. The problem could be the kidnappers lack of enthusiasm for negotiation or deals. The fact that four of the hostages are children adds further difficulty to the decision for France and Nigeria."

The kidnapping in Cameroon brought to 15 the number of French citizens being held in West Africa.

(Additional reporting by Elizabeth Pineau in Paris, Tansa Musa in Yaounde, Joe Brock in Abuja and Bate Felix and John Irish in Dakar; Writing by Bate Felix and John Irish; Editing by Michael Roddy)

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Wall Street slips after rally, energy shares fall

NEW YORK (Reuters) - U.S. stocks fell on Wednesday, pressured by a drop in energy shares as investors found few reasons to buy equities following a rally that has held major indexes near five-year highs for around three weeks.

Equities have been strong recently, to the point that the day's modest decline was the largest for the S&P 500 since February 4. The index has jumped about 7 percent so far this year and is on track for its eighth straight week of gains.

However, many of those weekly gains have been slight, with equities trading within a narrow range for the past few weeks, suggesting valuations may be stretched at current levels.

"The market seems very tired and listless, and investors are prone to take profits now as they wait for the music to stop," said Matt McCormick, money manager at Bahl & Gaynor in Cincinnati.

Energy companies were among the weakest, hurt by disappointing results and a 2.2 percent drop in crude oil prices. The Energy Select Sector SPDR fell 0.9 percent, though it remains up 10.1 percent for the year.

Newfield Exploration tumbled 7.7 percent to $25.20 while Devon Energy Corp dropped 4 percent to $58.17. Both companies posted fourth-quarter losses, with Devon hurt as it wrote down the value of its assets by $896 million because of weak natural gas prices.

Housing shares also declined, pressured by weaker-than-expected results at Toll Brothers Inc and a drop in groundbreaking to build new U.S. homes, also known as housing starts, in January.

Toll Brothers' stock fell 5.4 percent to $34.91, but is up about 8 percent so far this year, building on a jump of nearly 60 percent in 2012. The Dow Jones U.S. Home Construction index <.djushb> lost 4 percent.

"Valuations appear a bit high at these levels, and if I was in a name that had seen a huge run, I'd want to take some chips off the table," said McCormick, who helps oversee about $8.2 billion in assets.

The Dow Jones industrial average <.dji> was down 12.13 points, or 0.09 percent, at 14,023.54. The Standard & Poor's 500 Index <.spx> was down 6.20 points, or 0.40 percent, at 1,524.74. The Nasdaq Composite Index <.ixic> was down 19.10 points, or 0.59 percent, at 3,194.49.

The Dow's losses were limited by Boeing Co , up 1.4 percent at $75.67 after a source told Reuters that the company had found a way to fix battery problems on its grounded 787 Dreamliner jets. Concerns over that line have weighed on Boeing recently, contributing to a 2 percent drop in the stock's price in January.

Investors are also waiting for the minutes from the Federal Open Market Committee's January meeting due at 2 p.m. (1900 GMT) for clues to the interest-rate outlook, as well as for any indication as to how long the Fed will keep buying bonds each month to bolster the U.S. economy and employment.

In other data released on Wednesday, permits for future home building rose in January to a 4 1/2-year high while a separate report showed wholesale prices rose last month for the first time in four months. The U.S. Producer Price Index rose in January for the first time in four months.

Shares of OfficeMax Inc fell 4.2 percent to $12.45 while Office Depot slid 14.3 percent to $4.30 as the companies announced a $1.2 billion merger agreement. The shares had surged in Tuesday's session after a source said a deal would be announced. Rival Staples Inc fell 7.6 percent to $13.53 and ranked as one of the S&P 500's biggest decliners.

SodaStream dropped 3.7 percent to $50.50 after the seller of home carbonated drink maker machines posted fourth-quarter earnings and provided a 2013 outlook.

According to Thomson Reuters data through Tuesday morning, of the 405 companies in the S&P 500 that have reported results so far, 71 percent have exceeded analysts' expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters.

Fourth-quarter earnings for S&P 500 companies are estimated to have risen 5.7 percent, according to the data, exceeding a forecast for a 1.9 percent gain at the start of the earnings season.

(Editing by Kenneth Barry and Jan Paschal)

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Armstrong won't interview with USADA

AUSTIN, Texas (AP) — Lance Armstrong won't interview under oath with the U.S. Anti-Doping Agency to reveal all he knows about doping in cycling, his attorney says.

USADA officials had told Armstrong he must speak with them if he wanted to reduce his lifetime ban from sports. Wednesday was the deadline for him to agree to the interview under that offer.

After more than two months of negotiations, Armstrong attorney Tim Herman said Wednesday the cyclist won't participate in a process designed "only to demonize selected individuals."

Armstrong said previously he is willing to participate in an international effort to clean up a sport that is based mostly in Europe.

For years, Armstrong denied using performance-enhancing drugs. But last year, USADA released a report that detailed extensive doping on his seven Tour de France-winning teams and stripped him of those titles. Armstrong then admitted last month in an interview with Oprah Winfrey that he doped to win those races.

"We remain hopeful that an international effort will be mounted and we will do everything we can to facilitate that result," Herman said in a statement. "Lance will not participate in USADA's efforts to selectively conduct American prosecutions that only demonize selected individuals while failing to address the 95 percent of the sport over which USADA has no jurisdiction."

Armstrong is facing several legal challenges, and testifying under oath to USADA could have exposed him to further troubles.

Armstrong was the subject of a two-year federal criminal investigation that was dropped in February with no charges filed, but the Department of Justice is still considering whether to join a federal whistle-blower lawsuit filed by former Armstrong teammate Floyd Landis.

Armstrong also has been sued by a Dallas-based SCA Promotions to recover more than $12 million in bonuses. He also has been sued to by The Sunday Times in London to recover a libel judgment that Armstrong won against the paper.

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Obama can't kick his legacy down road

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

STORY HIGHLIGHTS

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


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


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


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

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

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

Gloria Borger

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

Unthinkable! Untenable!

Until now.

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

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

Opinion: Forced budget cuts a disaster for military

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

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

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

Points on the board for the White House.

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

Politics: Obama more emotional on spending cuts

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

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

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

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

Follow @CNNOpinion on Twitter.

Join us at Facebook/CNNOpinion.

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

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Jackson Jr. in court: 'I am guilty, your honor'

Jesse Jr. and Sandi Jackson arriving in federal court in Washington today.

Former U.S. Rep. Jesse Jackson Jr. pleaded guilty this morning to conspiring with his wife, former Ald. Sandi Jackson, to siphon about $750,000 in federal campaign funds for the couple’s personal use, and could face years in prison.

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

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

Between 2007 and 2011, he withdrew more than $14,000 to pay down personal credit cards, prosecutors stated. Between 2005 and April 2012, he was using campaign funds to fund a life of luxury, according to the documents.

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

Items paid with a campaign credit card included more than $4,000 on a cruise and $243 at a Build-a-Bear workshop.

“Records from Best Buy reveal that defendant purchased multiple flat-screen televisions, multiple Blu-Ray DVD players, numerous DVD’s for his Washington, D.C. home,” the records state.

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

About 3,100 personal purchases were made on campaign credit cards, totaling $582,772.58, prosecutors said.

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

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

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

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

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

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

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

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

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

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

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

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

Jackson entered the anticipated plea in Act One of a two-part drama playing out in federal court not far from the House chamber where he served. Act Two is on tap this afternoon, when his wife, former Chicago Ald. Sandi Jackson, is expected to plead guilty to filing false tax returns.

Jackson Jr. entered a negotiated plea of guilty on one felony count of conspiracy to commit false statements, wire fraud and mail fraud. Prosecutors say he spent campaign contributions to buy luxury items, memorabilia and other goods.

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

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

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

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

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

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

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

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

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

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

kskiba@tribune.com

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Bulgarian government resigns amid growing protests

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

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

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

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

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

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

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

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

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

POLLS, PRICES

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

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

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

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

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

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

MILLIONS GONE

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

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

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

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

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

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

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M&A deals lift shares, suggest more value in market

NEW YORK (Reuters) - U.S. stocks rose on Tuesday as merger activity suggested the market could offer investors still more value even as the S&P 500 and Dow industrials hover near five-year highs.

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

Office Depot Inc surged 9.4 percent to $5, pulling back from earlier highs after a person familiar with the matter said the No. 2 U.S. office supply retailer was in advanced talks to merge with smaller rival OfficeMax Inc . A deal could come as early as this week.

OfficeMax jumped 20 percent to $12.94 while larger rival Staples Inc shot up 9.4 percent to $14.17 as the best performer on the S&P 500.

More than $158 billion in deals has been announced thus far in 2013. Last week, agreements included the acquisition of H.J. Heinz Co by Berkshire Hathaway , and the sale by General Electric of its remaining stake in NBCUniversal to Comcast Corp .

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

The Dow Jones industrial average <.dji> was up 37.81 points, or 0.27 percent, at 14,019.57. The Standard & Poor's 500 Index <.spx> was up 6.84 points, or 0.45 percent, at 1,526.63. The Nasdaq Composite Index <.ixic> was up 9.39 points, or 0.29 percent, at 3,201.42.

U.S. markets were closed on Monday for the Presidents Day holiday.

Health insurance stocks tumbled, led by a 7 percent drop in Humana Inc to $72.50 after the company said the government's proposed 2014 payment rates for Medicare Advantage participants were lower than expected and would hurt its profit outlook.

UnitedHealth Group lost 1.7 percent to $56.37the biggest drag on the Dow. The Morgan Stanley healthcare payor index <.hmo> dropped 1.6 percent.

Express Scripts rose 2.4 percent to $56.87 after the pharmacy benefits manager posted fourth-quarter earnings.

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

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

"If there's no major contention with sequestration, it looks like stocks are prepared to handle it, but until then we'll probably stay in a consolidation period marked by sideways trading with a slow rate of ascent," said Gibbs.

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

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

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

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

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Pistorius: Thought lover an intruder in shooting

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

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

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

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

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

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

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

But by then, it was too late.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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