Iran plans own response to 'Argo'




(File photo) Argo tells the story of a rescue of U.S. diplomats from revolutionary Iran.




STORY HIGHLIGHTS


  • Ben Affleck's "Argo" tells the story of a dramatic rescue of U.S. diplomats from revolutionary Iran

  • Iranian state media criticize the movie as "replete with historical inaccuracies and distortions"

  • Iran's Art Bureau says it will fund its own film about the handing over of 20 U.S. hostages




(CNN) -- Ben Affleck has more than just a couple of Golden Globes to add to his resume.


His movie "Argo," about the suspenseful rescue of U.S. diplomats during the Iran hostage crisis, has also achieved the unusual honor of prompting Tehran to produce its own cinematic response.


Opinion: Latino should have played lead in 'Argo'


"Argo" was named best drama movie during the Golden Globes ceremony on Sunday night in Los Angeles, and Affleck won the award for best director, a category for which he was passed over in the recent Oscar nominations.










But his efforts to recreate on screen the drama of the secret operation by the CIA and Canada to extract six U.S. embassy workers from revolutionary Iran in 1980 haven't been overlooked by Tehran's Art Bureau.


'Argo' recognizes forgotten heroes of Iran hostage saga


It plans to fund a movie entitled "The General Staff," about 20 American hostages who were handed over to the United States by Iranian revolutionaries, according to a report last week by Mehr News, the official Iranian agency.


"This film, which will be a big production, should be an appropriate response to the ahistoric film 'Argo,'" said Ataollah Salmanian, the director of the Iranian film, according to Mehr.


"Argo" claims to be based on a true story rather than to constitute a scrupulous retelling of exactly what took place, and its deviations from reality have been documented.


But Iranian authorities have taken offense at the film's portrayal of the country and its people. "Argo" was officially viewed as "anti-Iranian" following its U.S. release last year, Mehr reported.


Iran's state-run broadcaster Press TV detailed its objections to the film in an online article on Sunday.


"The Iranophobic American movie attempts to describe Iranians as overemotional, irrational, insane, and diabolical while at the same, the CIA agents are represented as heroically patriotic," it complained.


In the movie, in which Affleck plays the lead role, the CIA operation is shown outwitting Iranian authorities through an elaborate plan based on pretending that the U.S. diplomats fleeing the country were part of team scouting locations for an outlandish science-fiction film.


But according to Press TV, the film is "a far cry from a balanced narration" and is "replete with historical inaccuracies and distortions."


On the other hand, "The General Staff," set to begin shooting next year, will be based on eyewitness accounts, Salmanian said.


The Art Bureau, which is to provide the financing, is affiliated with the Islamic Ideology Dissemination Organization, according to Mehr.


Press TV cited Salmanian as saying that his film would depict "the historical event unlike the American version which lacks a proper view of the story."


CNN's Samira Said contributed to this report.






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New storm to hit Chicago area on Tuesday: forecasts









For the second time in less than a week, the Chicago area is in line for a snowstorm that promises a mixture of freezing rain, sleet and snow with enough accumulation to bring out the snow shovels.


Early predictions from the National Weather Service pegged the potential snowfall at about 3-6 inches, about what the storm left the end of last week. But the weather service says it's still unclear which areas will be hit with what: If the temperature is above freezing, there will be less snow, and if it's below, there will be more.


The weather service has issued a winter storm watch from Tuesday morning through the evening.








The weather service said the snow will start sometime after midnight Tuesday morning, with freezing rain turning to sleet to wet snow by early afternoon. With winds gusting about 35 mph, some of that snow will drift and made Tuesday a bad day on the roads.


The track of the storm is over the Texas panhandle northeast and through Missouri and southern Illinois and central Indiana, the Lake Erie area early Wednesday. North of the low pressure path, winter storm watches are in effect from late Monday through Tuesday from Missouri through northern Illinois, the southeastern corner of Wisconsin, extreme northern Indiana and much of Lower Michigan.

In the Chicago area, there could be heavy snow of 6 inches or more Tuesday generally north of Interstate 80, with northeast winds at 25 to 35 mph whipping and blowing the snow, according to the Chicago Weather Center.


Rain, a period of freezing rain and sleet will spread north out of central Illinois early Tuesday, changing over to a heavy wet snow in the Chicago metro area and across the far west through north suburbs into southern Wisconsin.

A combination of freezing rain, sleet and snow will cause hazardous driving across northern Indiana Tuesday. The precipitation will be all snow across Illinois later Tuesday.


According to the Chicago Weather Center, February has been an unusually snowy month during a winter that has been unusually snowless. Through Saturday, there has been 10.1 inches of snow, about 136 percent of normal, while the winter's total has been 13.6 inches, way below normal.


Plains states hit again


A storm struck parts of the southern Plains today, creating blizzard conditions in Oklahoma and Texas and warnings in Kansas and Missouri that caught the brunt of a winter storm last week.

Snow fell at the rate of up to 2 inches per hour in the Amarillo, Texas, area, and the National Weather Service warned against travel, saying "most roads are impassable."

Airports in Amarillo and 120 miles to the south in Lubbock, Texas, were closed while Interstate 27 between the cities was shut down because of the blowing snow, state officials said.

Amarillo and parts north of Amarillo in the panhandle reported a foot of snow or more on Monday morning.

Parts of northwestern Oklahoma could get 16 inches to 24 inches of snow, with high winds that could create drifts up to 6 feet high, according to the National Weather Service in Norman, Oklahoma.

The Oklahoma Highway Patrol said it closed all highways in the Oklahoma panhandle because of blizzard conditions. Interstate 40 in the Texas panhandle was also closed, according to National Weather Service in Amarillo.

In Oklahoma City, some afternoon flights from Will Rogers World Airport were canceled in anticipation of the storm.

Kansas, hit by a foot or more of snow in spots last week, braced for possible worsening conditions on Monday and Tuesday.

Reuters contributed


chicagobreaking@tribune.com


Twitter: @ChicagoBreaking





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Italy election forecasts point to political gridlock


ROME (Reuters) - Conflicting early forecasts of the result of Italy's election on Monday raised the specter of deadlock in parliament that could paralyze a new government and re-ignite the euro zone crisis.


Officials from both centre and left warned that such gridlock could make Italy ungovernable and force new elections.


Opinion polls have long pointed to the center-left of Pier Luigi Bersani winning the lower house, but projections from RAI state television showed Silvio Berlusconi's center right in front in the Senate - which has equal lawmaking power - but unable to form a majority.


RAI showed the center-left well short of a majority in the Senate even in coalition with Monti, who was seen slumping to only 19 out of 315 elected Senators against a massive 65 for the anti-establishment 5-Star Movement of comedian Beppe Grillo.


Senate votes are counted before the lower house.


The latest projections ran counter to earlier telephone polls that showed the center left taking a strong lead in the Senate as well as the lower house.


Italian financial markets took fright after rising earlier on hopes for a stable and strong center-left led government, probably backed by outgoing technocrat premier Mario Monti.


Such government is seen by investors as the best guarantee of measures to combat a deep recession and stagnant growth in the euro zone's third largest economy, which is pivotal to stability in the currency union.


Berlusconi's declared aim is to win enough power in the Senate to paralyze a center-left administration.


The benchmark spread between Italian 10-year bonds and their German equivalent widened from below 260 basis points to above 280 and the Italian share index lost all its previous gains.


"These projections suggest that we are heading for an ungovernable situation", said Mario Secchi, a candidate for Monti's centrist movement.


Stefano Fassina, chief economic official for Bersani's center-left, said: "The scenario from the projections we have seen so far suggest there will be no stable government and we would need to return to the polls."


The earlier telephone polls on Sky and Rai television after voting ended at 3 p.m. (1400 GMT/9 a.m. ET) had shown the center left 5-6 points ahead of the center right in both Senate and lower house, with Grillo taking third place.


Adding to the confusion, official results from more than 50 percent of polling stations showed the center-left ahead with 32.7 percent against 29.5 for the center-right in the Senate race. The partial official count is often not representative because of the order in which votes are counted regionally.


Italy's electoral laws guarantee a strong majority in the lower house to the party or coalition that wins the biggest share of the national vote.


However the Senate, elected on a region-by-region basis, is more complicated and the result will turn on four key battleground regions. Projections from LA 7 showed Berlusconi winning in three of them: Lombardy, Sicily and Campania.


A Sky television projection showed him strongly ahead in the rich northern region Lombardy, which returns the largest number of Senators, with 38.8 percent against 27.6 for the center left.


BITTER CAMPAIGN


A bitter campaign, fought largely over economic issues, has made some investors fear a return of the kind of debt crisis that took the euro zone close to disaster and brought the technocrat Monti to office, replacing the scandal-plagued Berlusconi, in 2011.


Monti helped save Italy from a debt crisis when Rome's borrowing costs were spiraling out of control, but the polls and projections suggested few Italians now see him as the savior of the country, in its longest recession for 20 years.


A surge in protest votes for Grillo's 5-Star Movement had raised uncertainty about the chances of a stable government that could fend off the danger of a renewed euro zone crisis.


Grillo's movement rode a huge wave of voter anger about both the pain of Monti's austerity program and a string of political and corporate scandals. It had particular appeal for a frustrated younger generation shut out of full-time jobs.


"I'm sick of the scandals and the stealing," said Paolo Gentile, a 49-year-old Rome lawyer who voted for 5-Star.


"We need some young, new people in parliament, not the old parties that are totally discredited."


Bad weather, including heavy snow in some areas, was thought to have hampered the turnout in Italy's first post-war election to be held in winter. This could have favored the center left, whose voters tend to be more committed than those on the right, which has strong support among older people.


Berlusconi, a 76-year-old media tycoon, pledged sweeping tax cuts and accused Monti of being a puppet of German Chancellor Angela Merkel in a media blitz that halved the lead of the center left in opinion polls since the start of the year.


Whatever government emerges will inherit an economy that has been stagnant for much of the past two decades and problems ranging from record youth unemployment to a dysfunctional justice system and a bloated public sector.


(Additional reporting by Stefano Bernabei, Steve Scherer, Gavin Jones and Giuseppe Fonte in Rome and Lisa Jucca in Milan; Writing by Barry Moody; Editing by Robin Pomeroy and Philippa Fletcher)



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Investors face another Washington deadline

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


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


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


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


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


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


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


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


OPTIONS BULLS TARGET GAINS


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


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


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


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


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


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


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


EYES ON GDP DATA, APPLE


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


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


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


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


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


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



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Safety on everyone's mind before Daytona 500


DAYTONA BEACH, Fla. (AP) — Raymond Gober parked his motorcycle outside Daytona International Speedway, climbed off and briefly considered bringing his helmet into the track.


"I was about to wear it in, but I knew everyone would be laughing at me," said Gober, a pastor from outside Atlanta.


Maybe not.


Safety was on everyone's mind before the Daytona 500 on Sunday, a day after a horrific wreck in a second-tier NASCAR series race hurled chunks of debris, including a heavy tire, into the stands and injured nearly 30 people.


With small spots of blood still soaked into the concrete seating area, the accident raised questions about the safety of fans at race tracks. Should fences be higher and sturdier? Should grandstands be farther from the track?


NASCAR has long been a big draw because of its thrilling speeds, tight-knit racing, frantic finishes and the ability to get so close to the action.


That proximity comes with some risk.


And after Saturday's 12-car melee on the final lap of the Nationwide Series opener, some questioned whether that risk outweighed the reward.


"These are the best seats in the house, but they're also dangerous," Gober said.


Gober was one of thousands of fans who returned to Daytona less than 24 hours after Kyle Larson's car flew into the fence, crumbled into pieces and sprayed parts at spectators.


"You don't have time to react, but I just remember thinking, 'This is gonna hurt,'" said Steve Bradford, of Dade City. "We were showered with debris."


Gober picked up a bolt that landed next to his left foot and plans to take it home as a souvenir from a crash that could have considerably worse.


He and Bradford have been coming to races at Daytona for years, always seeking out scalped tickets so they can get ultra-close to the cars zooming by at 200 mph.


Now, though?


"Needless to say, we won't be here next year," Bradford said — meaning the seats, not the race.


He pointed at the upper level.


"Next year, we'll be up there," he said.


Not everyone felt the same way.


John and Andrea Crawford, of Streetsboro, Ohio, love sitting a few rows up. They were there Saturday and back again Sunday, just like so many in that seating section.


The area had rubber marks on seats hit by the tire. Several fans pointed out a chair bent backward, the spot one man was sitting when he got pummeled by the 60-pound tire and wheel.


"I'm not nervous," Andrea Crawford said. "It doesn't happen that much."


When Rick Barasso arrived at his seats, he noticed a few reporters and some tire marks. He asked what was going on and then couldn't stop smiling as he waved his friends over and shared details with them.


"These should be good seats," he said. "I mean, what are the chances?"


Maybe small, but there's little doubt the latest fallout could prompt NASCAR and track officials to consider changes — at Daytona and elsewhere.


Daytona has plans to remodel the grandstands. Track President Joie Chitwood said Saturday's wreck could prompt sturdier fences or stands farther from the action.


"It's tough to connect the two right now in terms of a potential redevelopment and what occurred," Chitwood said. "We were prepared yesterday, had emergency medical respond. As we learn from this, you bet: If there are things that we can incorporate into the future, whether it's the current property now or any other redevelopment, we will.


"The key is sitting down with NASCAR, finding out the things that happened and how we deal with them."


Daytona reexamined its fencing and ended up replacing the entire thing following Carl Edwards' scary crash at Talladega Superspeedway in Alabama in 2009. Edwards' car sailed into the fence and spewed debris into the stands.


"We've made improvements since then," Chitwood said. "I think that's the key: that we learn from this and figure out what else we need to do."


Three-time Indianapolis 500 winner Johnny Rutherford said Sunday that things should be done across auto racing. It was just 16 months ago that IndyCar driver Dan Wheldon was killed when his car crashed into a fence at Las Vegas.


"Maybe we need a double fence, one behind the other, with maybe a space in between to do something to stop this," Rutherford said. "There's a lot of things. I'm sure NASCAR and the IndyCar series are looking at everything to make it safer. What happened yesterday was a terrible thing.


"The drivers, we accept that. That's part of the game. We have to roll the dice and move on. But you don't want to involve the fans."


Chitwood said any fans who felt uncomfortable with their up-close seating for the Daytona 500 could exchange their tickets for spots elsewhere.


"If fans are unhappy with their seating location or if they have any incidents, we would relocate them," Chitwood said. "So we'll treat that area like we do every other area of the grandstand. If a fan is not comfortable where they're sitting, we make every accommodation we can."


Few fans seemed willing to relocate.


"Real NASCAR fans ain't scared," said Zeb Daniels, who was attending his fifth Daytona 500 with his daughter. "If we see anything coming to the fence, we'll hit the floor and pray."


So why take a chance?


"We come for the thrill, the excitement," Daniels said. "We can feel the heat, the tire rubber in our eyes."


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Vatican 'Gay lobby'? Probably not






STORY HIGHLIGHTS


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

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

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




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


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


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


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



John L. Allen Jr.

John L. Allen Jr.



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


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


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


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









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


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


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


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


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


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


Follow us on Twitter @CNNOpinion.


Join us on Facebook/CNNOpinion.


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






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Daytona 500 still a go despite accident that injured fans









DAYTONA BEACH, Fla. —





The Daytona 500 NASCAR race will go ahead on Sunday despite a crash on Saturday that injured more than 20 fans, questions over the safety of the famous speedway and the possibility of lawsuits.

Officials said they had repaired the fencing that was damaged after the pile-up which sent debris flying into the crowd and injuring fans on the final lap of Saturday's second-tier Nationwide race.






Halifax Health spokesman Byron Cogdell said that seven people were treated for injuries at their facility but two who had initially been listed as critical were now in a stable condition.

Another injured spectator was being treated at Florida Hospital Memorial Medical Center in Daytona Beach, but their condition was not available.

Fourteen other fans had been treated on site at the track before being released, said Daytona International Speedway president Joei Chitwood.

Chitwood said any fans in the affected area who were concerned about the safety of their seat position would be relocated.

"If fans are unhappy with...their seating location or if they have any incidents, we would relocate them. We will treat that area like we do every other of the grandstand.

"If a fan is not comfortable where they are sitting, we make every accommodation we can," he said.

NASCAR and the speedway could face millions of dollars' worth of claims from the injured, litigation that would likely center on the sturdiness of the safety fence that was supposed to keep fans from danger, according to several plaintiffs' lawyers.

"Maybe the fence should have been higher; maybe there should have been more spacing between the track and spectators," said Adam Levitt, a lawyer with Grant & Eisenhofer.

However, lawyers also said the auto-racing business would likely point to the disclaimers that it typically displays on tickets, which are designed to exempt NASCAR from any potential injury liability. They expected NASCAR would argue that fans knew what they were getting into when signing up for the race.

NEW FENCING

Both the speedway and NASCAR have said they will closely review the incident in search of any ways they could improve safety.

Chitwood said new, 22-feet-high fencing had been put in place three years ago following a review of a crash involving Colin Edwards at Talladega in 2009.

"If you look at our 55 years in the business, we have a pretty good safety track record. I think we are prepared today," said Chitwood.

However, three-times Indianapolis 500 winner Johnny Rutherford said a change might be needed.

"Maybe a double fence, one behind the other with some space in between to stop something like this," he told reporters.

"But there are a lot of things and NASCAR and Indy Car racing are looking at everything they can to make it safer.

"What happened yesterday was a terrible thing because we expect (danger) that is part of it, we have to roll the dice and move on but you don't want to involve the fans," he said.

NASCAR's senior vice-president of racing operations Steve O'Donnell said he would tell any nervous fans that organisers were confident of their safety.

"I would tell them that the fans are our first priority. Obviously we want everyone to be safe at an event," he told reporters.

"We've talked to the speedway. We are confident in what's in place at today's event. Certainly still thinking about those affected but we are confident to move forward for this race," he added.

Fans streamed into the 167,000-capacity venue on Sunday and there was little indication of concern over safety.

"I feel safe. I think anywhere you go you run the risk of being injured but NASCAR does everything they can to protect the fans. They treat the fans like royalty here, it is amazing," said Vinny Nigro of New York City.

Another fan, Brad Stefka from Springfield, Missouri, said that while not particularly worried he would avoid the seating closest to the track.

"I just won't get down low. I would imagine that everyone who comes knows there is some element of danger if the cars are going that fast, if there is going to be a serious impact," he said.



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Gloomy Italians vote in election crucial for euro zone


ROME (Reuters) - Italy voted on Sunday in one of the most unpredictable elections in years, with many voters expressing rage against a discredited elite and doubt that a government will emerge strong enough to combat a severe economic crisis.


"I am pessimistic. Nothing will change," said Luciana Li Mandri, 37, as she cast a ballot in the Sicilian capital Palermo on the first of two days of voting that continues on Monday.


"The usual thieves will be in government."


Her gloom reflected the mood across Italy, where many voters said they thought the new administration would not last long, just the opposite of what Italy needs to combat the longest slump in 20 years, mounting unemployment and a huge public debt.


The election is being closely watched by investors whose memories are fresh of a debt crisis which forced out scandal-plagued conservative premier Silvio Berlusconi 15 months ago and saw him replaced by economics professor Mario Monti.


"I'm not confident that the government that emerges from the election will be able to solve any of our problems," said Attilio Bianchetti, a 55-year-old building tradesman in Milan.


Underlining his disilluion with the established parties, he voted for the 5-Star Movement of comic Beppe Grillo.


An iconclastic, 64-year-old Genoese, Grillo has screamed himself hoarse with obscenity-laced attacks on politicians that have channeled the anger of Italians, especially a frustrated young generation hit by record unemployment.


"He's the only real new element in a political landscape where we've been seeing the same faces for too long," said Vincenzo Cannizzaro, 48, in Palermo.


Opinion polls give the centre-left coalition of Pier Luigi Bersani a narrow lead but the result has been thrown open by the prospect of a huge protest vote against Monti's painful austerity measures and rage at a wave of corruption scandals.


A weak government could usher in new instability in the euro zone's third largest economy and cause another crisis of confidence in the European Union's single currency.


Television tycoon Berlusconi, showing off unrivalled media skills and displaying extraordinary energy for a man of 76, has increased uncertainty over the past couple of months by halving the gap between his centre-right and Bersani.


"I am pessimistic. There is such political fragmentation that we will again have the problem of ungovernability" said Marta, a lawyer voting in Rome who did not want to give her family name. "I fear the new government won't last long."


Another Roman voter, lab technician Manila Luce, 34, said: "I am voting Grillo and I hope a lot of people do. Because it's the only way to show how sick to the back teeth we are with the old parties."


Voting continues until 10 p.m. (4 p.m. EST) and resumes on Monday at 7 a.m. Exit polls will be published shortly after polls close at 3 p.m. on Monday. Full official results are expected by early Tuesday.


Snow in the north was expected to last into Monday and could discourage some of the 47 million eligible voters. Authorities said they were prepared for the weather and in the central city of Bologna roads were cleared of snow before voting started.


TOPLESS FEMINISTS


Several bare-breasted women protested against Berlusconi when he voted in Milan. They were bundled away by police.


The four-time premier, known for off-color jokes and a constant target of feminists, is on trial for having sex with an underage prostitute during "bunga bunga" parties at his villa.


Most experts expect a coalition between Bersani and Monti to form the next administration, but whatever government emerges will have to try to reverse years of failure to revitalize one of the most sluggish economies in the developed world.


The widespread despair over the state of the country, where a series of corruption scandals has highlighted the stark divide between a privileged political elite and millions of ordinary Italians struggling to make ends meet, has left deep scars.


"It's our fault, Italian citizens. It's our closed mentality. We're just not Europeans," said voter Li Mandri in Palermo.


"We're all about getting favors when we study, getting a protected job when we work," she said. "That's the way we are and we can only be represented by people like that as well."


ECONOMIC AGENDA


Even if Bersani wins as expected, Analysts are divided over whether he will be able to form a stable majority that can force through sweeping economic reforms.


His centre-left is expected to have firm control of the lower house, thanks to rules that give a strong majority to whichever party wins the most votes nationally.


But a much closer battle will be fought for the Senate which is elected on a regional basis and which has equal law making powers to the chamber.


Berlusconi has clawed back support by promising to repeal Monti's hated new housing tax, the IMU, and to refund the money. He relentlessly attacked what he called the "Germano-centric" policies of the former European Union commissioner.


Think-tank consultant Mario, 60, said on his way to vote in Bologna that Bersani's Democratic Party was the only group serious enough to repair the economy: "They're not perfect," he said. "But they've got the organization and the union backing that will help them push through structural reforms."


Despite Berlusconi's success, Grillo has tapped into the same public frustration as the conservative tycoon and pollsters say his 5-Star Movement of political novices could overtake the centre-right to take second place in the vote.


Rivals have branded Grillo a threat to democracy - a vivid image in a country ruled by fascists for two decades until World War Two. Several voters who spoke to Reuters said Grillo was not the answer because of his lack of concrete policies and the inexperience of those who will sit in parliament for 5-Star.


"Grillo is a populist and populism doesn't work in a democracy," said retired notary Pasquale Lebanon, 76, as he voted for Bersani's Democratic Party in Milan.


"I'm very worried. There seems to be no way out from a political point of view, or for being able to govern," said Calogero Giallanza, a 45-year-old musician in Rome as he also voted for Bersani.


"There's bound to be a mess in the Senate because, as far as I can see the 5-Star Movement is unstoppable."


(Additional reporting by Cristiano Corvino, Lisa Jucca, Jennifer Clark, Matthias Baehr, Jennifer Clark and Sara Rossi in Milan, Stephen Jewkes in Bologna, Wladimir Pantaleone in Palermo, Stefano Bernabei and Massimiliano Di Giorgio in Rome; Writing by James Mackenzie and Barry Moody; Editing by Alastair Macdonald)



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Investors face another Washington deadline

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


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


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


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


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


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


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


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


OPTIONS BULLS TARGET GAINS


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


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


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


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


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


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


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


EYES ON GDP DATA, APPLE


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


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


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


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


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


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



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Danica brings new eyes to NASCAR and Daytona 500


DAYTONA BEACH, Fla. (AP) — The big boys brought their little girls to see NASCAR's shining star.


Jeff Gordon, Carl Edwards and Jimmie Johnson all took their daughters to meet Danica Patrick this week at Daytona International Speedway.


It was the ultimate backstage pass.


Patrick dropped to one knee, wrapped her right arm around Ella Gordon's waist and posed for pictures as the 5-year-old flashed an endless smile in Victory Lane last week. Every day since, Patrick's crew has handed out dozens and dozens of lugnuts to little girls clamoring for souvenirs. Annie Edwards wore GoDaddy green shoes for the special occasion. Evie Johnson recognizes only two cars, her Dad said — his and the green one.


"Carl was saying it's good that she sees me in real life and in person because 'To her, you are like some mythical creature that doesn't exist,' " Patrick said. "Then after qualifying, Jimmie Johnson brought his little girl over. That's three pretty big drivers who have little girls that wanted to meet me."


Danicamania is in full bloom at Daytona — and with a brand new audience.


The first woman in history to earn the top starting spot in a race at NASCAR's elite Sprint Cup Series, Patrick will bring new eyeballs to Sunday's season-opening Daytona 500. She'll lure in casual sports fans, women who don't know a muffler from a manifold, and little girls in awe of the glamorous driver and her fast green car.


It's an ambassador role Patrick has played since her 2005 debut at the Indianapolis 500, where she became the first woman to lead laps in the biggest race in the world. But it's so much more now.


"You can only lead by example and I don't necessarily want my example to step outside the box and be a girl in a guy's world. That's not what I am trying to say," Patrick said. "But if you have a talent for something, do not be afraid to follow through with it and not feel different. Do not feel like you are less qualified or less competent to be able to do the job because you are different. Ignore that and let it be about what your potential is."


And right now, she believes her potential is to win "The Great American Race."


Patrick starts first on Sunday, next to four-time champion Gordon, and after running 32 laps in Friday's practice and mixing it up with NASCAR's biggest stars, she was more convinced than ever that she can be a player in the race.


"Can I win? Yeah. Absolutely," Patrick said. "I feel comfortable in this kind of race situation. I feel comfortable in the draft. I feel comfortable that the speeds are not a problem. I know I am inexperienced. I know I am rookie out there. I will do the best job I can to win. I do believe I have a chance to win. I do believe experience would help, but that doesn't mean I don't have a chance to win."


Crew chief Tony Gibson was even more convinced he's got a winner for Sunday. He was part of Derrike Cope's improbable 1990 victory, when Cope inherited the win when the late Dale Earnhardt blew a tire on the final lap.


" She has got the talent," Gibson said. "She's already proven in the Nationwide Series, from what I've seen on the speedway stuff, she definitely gets the respect. People know she's fast. She can draft. She knows how the air works. She gets a lot of that from IndyCar. So I have 100 percent confidence she can win the Daytona 500.


"I remember Derrike Cope, nobody gave him a chance, either, but I saw him in Victory Lane. I know it can be done."


But the Daytona 500 is a pressure-packed race unlike anything except the Indy 500. Some of the best drivers never win it — it took seven-time champion Earnhardt 20 tries to finally get his lone win — and Tony Stewart, Patrick's teammate and car owner, goes into Sunday's race seeking his first victory in 15 tries.


He's been quiet all week, except, of course, for the nine-car accident he started in an exhibition race last weekend. He lamented afterward, "That is why I haven't won a Daytona 500 yet. I'm not quite sure exactly which move to make."


Don't be fooled, though, by the three-time NASCAR champion. Stewart might just like being out of the spotlight as he heads into one of the few races missing from his resume, and being the favorite for the 500 has never worked out for him before.


He wrapped up his practice with one final run Friday to test his race engine and wound up on top of the speed chart. It was Stewart's intention to sit out Saturday's final day of practice.


"I'm excited we've made it through the whole week without a scratch on the car," he said. "We are as ready as you can get for the 500. I feel like we've got a car capable of winning the race. It's just a matter of whether the driver does a good job with the steering wheel."


The title of favorite this year goes to Kevin Harvick, who has two wins in two races so far at Speedweeks. The driver has dominated in his Richard Childress Racing Chevrolet, led 63 of a possible 135 laps and didn't even bother to take the cover off his car in Friday's two practice sessions.


Harvick, the 2007 race winner, has come into the year with both focus and some inner peace after a pair of life-changing moments. His first child, son Keelan, was born after last July's race at Daytona. Then, in November, Harvick made the difficult decision to leave RCR after his 13th season with the organization that brought him into NASCAR and gave him his Cup ride the week after Earnhardt was killed in the 2001 Daytona 500.


He'll drive for Stewart next season at Stewart-Haas Racing, but is determined to make this last year with RCR count.


"Everybody is just working toward the same goal, that's winning the races," Harvick said. "We have to be professional anyway, whether it's lame duck or not. You can call it whatever you want. We're going to have a helluva lot of fun racing, having a good time, doing our jobs."


The 500 will be the first with a full 43-car field racing NASCAR's new Gen-6 car, which was designed all last season with input from teams, drivers and the manufacturers.


Part of the intent was to design a car that more closely resembled what the automakers sell in the showrooms, and NASCAR succeeded in that area. But NASCAR also needed a car that produced better on-track racing, and the verdict is not in yet.


There are a lot of unknowns with the Gen-6 heading into Sunday, partly because drivers spent Speedweeks learning as much as they can about how it handles on the track. All three races so far have been largely uneventful, resembling something closer to a long parade rather than a high-speed spectacle.


If not for Kyle Busch's win in a Toyota in the second of Thursday's twin qualifying races, it would so far be a Chevrolet rout with Harvick taking the new SS to Victory Lane twice and Patrick winning the pole in her Chevy.


All bets could be off on Sunday, Busch warned.


"It might be we all ran single file because we were scared to run side-by-side," Busch said after Thursday's win. "I don't know. I was ready to put on a show, but I didn't have enough people around me to make one happen."


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