Asian markets rise on Wall St rally, ECB comments

HONG KONG: Asian markets rose Thursday after the Dow on Wall Street hit a more than five-year high, while the head of the European Central Bank soothed concerns over the eurozone.

A strong bond sale in Italy also helped the euro despite uncertainty after weekend polls, while the yen resumed its downward trend after Japan's government nominated a fan of aggressive easing as the new central bank governor.

Tokyo climbed 2.04 per cent as the yen sank on confirmation that Japan's government had put forward Haruhiko Kuroda to take over at the Bank of Japan.

Kuroda, the current Asian Development Bank chief, is known as an advocate of a looser monetary policy to overcome slow growth, in line with the views of Prime Minister Shinzo Abe.

The dollar bought 92.44 yen, compared with 92.16 yen in New York late Wednesday.

Hong Kong shares advanced 1.10 per cent, Sydney added 0.71 per cent, Seoul rose 1.02 per cent and Shanghai was up 0.39 per cent.

ECB President Mario Draghi said Wednesday the bank would preserve the integrity of the eurozone, reasserting its commitment to buy up bonds of under-pressure countries.

"We are committed to preserving the integrity of our currency, in the interests of all people of the euro area," he said.

The announcement, which came after US Federal Reserve Chairman Ben Bernanke said its own huge easing would stay in place, came as welcome relief to markets after Italy's poll deadlock raised fears of a return to Europe's debt crisis.

On forex markets the euro rebounded after being hammered in the wake of Sunday's inconclusive poll, which saw voters shun austerity policies and leave the country with a hung parliament.

The euro sat at $1.3150 and 121.56 yen in Tokyo, from $1.3136 and 121.07 yen -- and well up from the levels just above $1.30 and 119 yen seen earlier in the week.

The single currency was also given support from news that Rome had successfully sold 6.5 billion euros of treasury bonds, albeit at a higher price, providing evidence for now that it can borrow cash to pay its own bills.

On Wall Street the Dow ended at its highest level since October 2007 after reports showed US pending home sales rebounded sharply in January to the highest level in almost three years.

In other positive news, durable goods orders in January -- excluding volatile aircraft -- surged 1.9 per cent, with gains particularly strong in capital goods, suggesting business confidence in the economy in upcoming months.

The Dow jumped 1.26 per cent, while the S&P 500 rose 1.27 per cent and the Nasdaq added 1.04 per cent.

Oil prices rose, with New York's main contract, light sweet crude for delivery in April, gaining 34 cents to $93.10 a barrel and Brent North Sea crude for April delivery adding 35 cents to $112.22.

Gold was at $1,597.70 at 0220 GMT compared with $1,608.32 late Wednesday.

- AFP/ck

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Firefox and Tizen make a move for Android

Likely by Samsung's design, the Tizen OS looks reminiscent of Android.

(Credit:
CBS Interactive)

Alongside a myriad of new tablets and phones, Mobile World Congress 2013 also gave us our first real look at Mozilla's Firefox OS and the Samsung and Intel collaboration, Tizen OS.

While
Android might dominate the smartphone landscape today, it's only five years old. I can recall plenty of headlines in 2007 and 2008 that doubted whether there was room for yet another player in the space. At that time, RIM was a powerhouse, the iPhone was brand new, Palm's WebOS was in development, and Microsoft's Windows Mobile was slipping into obscurity.

My, how things have changed. Now the question is, it can happen again? Will
Firefox OS or Tizen OS impact Android or the smartphone landscape?

Cutting a piece of the smartphone pie
I predict that both will find success in developing markets and could even prove to be a bee in the Microsoft Windows Phone 8 bonnet. In fact, the definition of success could be interpreted differently for those involved. With smartphone activations rising all the time, even a small piece of the pie might be considered tasty.

I'm not entirely sure how Mozilla plans to monetize its open-source platform; Mozilla doesn't have search and mobile advertising to fall back on. Nevertheless, there are at least 18 handset makers and carriers who have pledged support for it. Really, who could fault any company for at least sampling the new goods?

There are already four such phones on the way -- the Alcatel One Touch Fire, the ZTE Open, the Geeksphone Keon, and the Geeksphone Peak -- and, I suspect, a handful more before the year is out. As of now, these devices are nowhere near as powerful as today's typical Android but that may not matter to the average consumer. We shouldn't expect much Firefox OS in the United States, though it's possible the bigger players are taking a "wait and see" approach.

LG also did a bit of hedging this week when it added its name to Mozilla's list of partners. LG even gave WebOS a new lease on life when it announced a licensing deal for the nearly-dead platform. Currently offering a number of Google TV sets, it's unclear how WebOS fits into the big scheme of things. Though I guess that it can't hurt to try new things every once in a while.

Alcatel's Firefox OS phone

Even so, I get the feeling that for now LG's bread is buttered by Google and that Firefox OS may be employed on devices released in secondary markets. Based on its diverse Mobile World Congress announcements, LG has a lot of Android momentum right now so I don't expect the company to change things up too much.

Samsung plays the field

Samsung, for its part, seems to be doing a little bit of everything these days. It introduced the Galaxy Note 8 in Barcelona, but it saved the reveal of the Galaxy S4 for an exclusive event on March 14. And though the company told CNET that it would pass on Firefox, it also said that it would be the first manufacturer to sell a Tizen phone come July. What about Bada, you ask? Well, a Korean news outlet said that Sammy would fold its own Bada OS into Tizen.

The first images of Tizen OS are reminiscent of Android, most likely due to Samsung. In fact, it wouldn't surprise me if future Galaxy experiences looked less like Android and more like Samsung. Should Samsung find success with the platform it may be possible to peel off a few Android users who have grown to use services such as Media Hub. In the big scheme of things, I imagine Samsung will create its own experience that looks the same on Android and Tizen.

It's too early in the game to forecast whether Tizen will impact its Android efforts, but whether Tizen makes it to the United States will make a big difference. While the platform has already drawn support from carriers around the globe, only Sprint has expressed interest for the U.S. market. And carriers aside, I'm more anxious to see which OEMs consider Tizen. It's hard to imagine a company like HTC, LG, or Sony, willing to use a platform created by a competitor.

Tizen OS gets early walkthrough in hands-on video

What's more, Samsung's new Knox is another signal that much attention is being paid to a broader consumer experience. Its bring-your-own-device (BYOD) solution would work well anyone who wants to want to use the same phone for work and personal use. Available for Android today, the feature might be available with other OSes like Tizen down the road. If that happens, Samsung would no doubt continue as one of Google's strongest Android partners, but the two companies may dance a little less frequently.

What's next?

Looking ahead, we may be in for more land grabs as hardware makers acquire software companies. We've seen this over the last few years with Apple, HTC, Samsung, and others. We've also seen jockeying from Amazon, Google, and other companies who scoop up services and apps. While some of these moves happen quietly and without much consequence, others are more overt and telling. One thing seems certain: nobody feels safe in this space. Rather, no one should feel safe.

In the short term, Firefox OS and Tizen will build a bit of steam; however, don't look for either to overtake RIM (especially following the launch of BlackBerry 10) or Windows Phone soon. And don't event think about a threat to iOS or Android. But then again, the growth of smartphone use in emerging markets is creating more competition. Android, after all, certainly surpassed the expectations of its early naysayers.

I am only too pleased that both of these new platforms are open-source as that should lead to more innovation. Here's to hoping that Android and iOS get some stiff competition in the future. Who doesn't want a less expensive smartphone that does incredibly cool stuff?

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Supreme Court divided on Voting Rights Act

(CBS News) WASHINGTON -- The Voting Rights Act has been the law of the land for nearly half a century, helping to ensure that minorities are not denied the right to vote. On Wednesday, Shelby County, Ala., challenged the law at the Supreme Court.

The arguments sharply divided the justices: The court's conservative majority appeared poised to strike down at least part of the act and eliminate the current federal oversight of voting in the South.

At issue is a decades-old provision in the law that requires nine states, mostly in the South, to get approval from the federal government before changing voting laws or procedures.

Justice Antonin Scalia called it a "racial entitlement."

Chief Justice John Roberts asked if the government believed "the citizens in the South are more racist than citizens in the North." Roberts said current data on voter turnout revealed more problems in Massachusetts than in Mississippi.

Congress did not rely on current data when, in 2006, it reauthorized the Voting Rights Act. It continued to rely on rates of minority voter registration and turnout in the elections of 1964, 1968 and 1972.

Will the Voting Rights Act survive the Supreme Court?
Proposed changes to Voting Rights Act stir controversy in Alabama

Alabama attorney Frank Ellis said Congress should look at the modern-day South.

Frank Ellis

/

CBS News

"We ask for some recognition that we and these other converted jurisdictions have made great strides over the last 48 years," Ellis said.

The liberal justices strongly defended the law, saying Congress had thousands of pages of evidence documenting discrimination.

"Discrimination is discrimination, and what Congress said is it continues," Justice Sonia Sotomayor said.

Justice Stephen Breyer said, "The disease is still there ... it's gotten a lot better, a lot better, but it's still there."

Debo Adegbile

/

CBS News

That's why civil rights attorney Debo Adegbile said the provision is as necessary today as a generation ago.

"The problems are much more serious, much more repetitive, there is a much greater continuity in certain places than others," Adegbile said.

The liberal justices -- and the Obama administration -- say the court should defer to Congress, which they say is was better situated to make judgments about discrimination in voting. But based on the arguments today, it does appear a majority of the conservative judges are ready to tell Congress it's going to have to make some changes in that law.

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Holder Says Sequester Makes America Less Safe

The looming budget sequestration will make Americans less safe, Eric Holder says—and anyone who says otherwise isn't telling the truth.

"This is something that is going to have an impact on the safety of this country," the U.S. attorney general told ABC's Pierre Thomas on Wednesday in a wide-ranging, exclusive interview.

"And anybody that says otherwise is either lying or saying something that runs contrary to the facts," Holder said.

In his interview with ABC News, Holder reiterated warnings that if automatic spending cuts are triggered on Friday, the Justice Department will be handicapped in some of its most vital missions to prevent terrorist attacks and crime.

"The Justice Department is going to lose nine percent of its budget between now and September 30th. We're going to lose $1.6 billion. There are not going to be as many FBI agents, ATF agents, DEA agents, prosecutors who are going to be able to do their jobs," Holder said. "They're going to be furloughed. They're going to spend time out of their offices, not doing their jobs."

Portions of the interview will air Wednesday, February 27 on "ABC World News"

Patrick Semansky/AP Photo

Eric Holder Says Homegrown Terror Threat Equals International: Exclusive Watch Video

Eric Holder Remembers Newtown, His Worst Day on the Job: Exclusive Watch Video

President Obama's Cabinet members have been warning for weeks that budget sequestration, which will begin Friday unless Obama and Republicans reach a deficit-reduction deal to avoid it, will leave their agencies shorthanded and could bring about disastrous consequences. Homeland Security Secretary Janet Napolitano and Transportation Secretary Ray LaHood have both appeared at the White House press briefing room to warn that furloughs for border-patrol agents, TSA agents and air-traffic controllers will mean weakened border and port security, longer waits in airport security lines, and logjammed air travel.

Holder, for his part, warned in a Feb. 1 letter to the Senate Appropriations Committee that cuts to the FBI, the ATF, the U.S. Marshals Service, and U.S. Attorneys would limit the department's capacity to investigate crimes. Cuts at the Bureau of Prisons, Holder wrote, would mean lockdowns and potential violence, with fewer staff members on hand. In a separate letter, FBI Director Robert Mueller warned that counterterrorism operations would be affected, with the possible elimination of some joint terrorism task forces with state and local police. Limited surveillance and slower response times would mean unwatched targets and the possibility that individuals on terrorism watch lists could gain entry to the U.S.

"FBI's ability to proactively penetrate and disrupt terrorist plans and groups prior to an attack would be impacted," Mueller wrote.

To Holder, the problem is simple.

"If you don't have prosecutors and agents doing what we expect them to do, and we won't if this thing actually takes place, we are going to be a nation that is going to be less safe. And that is simple fact," Holder said.

Some Republicans have claimed the Obama administration is exaggerating the sequester's purported consequences as a ploy to campaign for tax hikes. On "Fox News Sunday" this week, Sen. Tom Coburn, R-Okla., posited that federal agencies enjoy enough flexibility to avoid the worst consequences of the cuts.

On Wednesday, Holder acknowledged that the Justice Department will do what it can to avoid compromised security, while maintaining that furloughs can't be avoided.

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Asian markets up on Fed stand, strong yen hits Tokyo

HONG KONG: Asian markets mostly rose on Wednesday after US Federal Reserve head Ben Bernanke reaffirmed the central bank's huge monetary easing scheme, but a stronger yen sent Tokyo lower.

Investors remained hesitant and the euro came under pressure after Italy's election results which left no party in overall control, raising concerns that uncertainty in Rome could see the eurozone return to the dark days of crisis.

Tokyo fell 0.78 per cent by noon but Hong Kong rose 0.44 per cent, Sydney added 0.64 per cent, Shanghai climbed 1.14 per cent and Seoul was 0.18 per cent higher.

In testimony to Congress Bernanke said the Fed's $85 billion a month bond-purchase programme aimed at holding down long-term interest rates and encouraging investment -- known as quantitative easing -- was still merited.

While warning that looming steep budget cuts could slow growth, he stressed high unemployment was a main challenge to the economy, adding that the risks of the programme -- inflation, and risky behaviour in the financial industry -- were being monitored closely.

Bernanke said the programme was "providing important support to the recovery".

His comments on Tuesday were a relief for financial markets, which stumbled last week after minutes from the Fed's latest policy meeting suggested some members wanted to curtail the policy before the economy was back in track.

"Bernanke confirmed the Fed's commitment to continue quantitative easing until unemployment falls, and US economic data are clearly improving," Martin Lakos, division director in Macquarie's Private Wealth division in Australia, told Dow Jones Newswires.

On Wall Street the Dow rose 0.84 per cent, the S&P 500 added 0.61 per cent and the Nasdaq jumped 0.43 per cent.

US investors also took comfort in surprisingly robust new home sales while the Conference Board's February consumer confidence index showed a surprise jump to 69.6 from 58.4 in January, well above the average analyst estimate of 62.0.

But the dollar fell against the yen in Asia as dealers sought the safe havens after the inconclusive Italian elections.

The dollar bought 91.70 yen in Tokyo Wednesday, from 91.93 yen in New York late Tuesday and well off the 94.77 yen high seen on Monday.

The euro slipped to $1.3043 and 119.60 yen from $1.3061 and 120.08 yen.

Eurozone fears have been reignited after the Italian polls, which left the country with a hung parliament and a protest party effectively holding the balance of power.

Investors fear the outcome will mean Italy will reverse the austerity policies put in place to pay off its debts, with implications for the wider region.

Italian leftist leader Pier Luigi Bersani, who said he had "come first but not won", warned that the huge anti-austerity protest vote should be heeded beyond Italy's borders, adding: "The bell tolls also for Europe."

Oil prices were mixed, with New York's main contract, light sweet crude for delivery in April, shedding two cents to $92.61 while Brent North Sea crude for April delivery gained three cents to $112.74.

Gold was at $1,612.40 at 0220 GMT compared with $1,597.80 late Tuesday.

- AFP/ck

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IDriveSync online storage now offers cool Private Key option

IDriveSync offers a convenient and secure way to keep data backed up or synced between different devices in real time.

(Credit:
Dong Ngo/CNET)

If you've been hesitant about using an online storage service because of the privacy risk or cost, you might be interested in what Pro Softnet has to offer via its IDriveSync service.

The online storage provider unveiled today a Private Key Encryption option for those signing up for a new IDriveSync account. The company says the new feature "brings a whole new level of security for users who are concerned about storing their sensitive and confidential information on the cloud." In fact, according to Pro Softnet CEO Raghu Kulkarni, none of the leading sync services -- including Dropbox, Google Drive, and SkyDrive -- provides this for general consumers.

To use this feature, pick a private key (an additional password) that will then be used for encrypting data stored in your online account. Since the key isn't generated by IDriveSync, no one except the authorized user has access to this data. Pro Softnet says the key itself is not stored on its servers, so even IDriveSync employees can't access the encrypted data. This also means that if you lose the key, you completely lose access to the data.

Note that the Private Key option is only available during the sign-up process and can't be changed at a later time, including the key itself. This is because the key is associated with the encryption and in order to change or remove it, it's necessary to decrypt and re-encrypt the data. This is a process that takes a long time, and might not even be possible in certain situations.

Once the Private Key option has been selected, you'll be asked for the key each time you log in, either via the Web interface or the mobile or desktop application.

(Credit:
Screenshot by Dong Ngo/CNET)

The company says data sharing between IDriveSync users is still possible with the Private Key option as long as the user explicitly allows IDriveSync to store an encrypted version of the key. Users also have the option to clear the stored private encryption key, when they want to stop sharing their data with others.

Now that the privacy part is taken care of, how about cost? IDriveSync gives all new users a free account of 10GB that can be increased to up to 30GB by referring friends or installing its apps. Students will get a free account of 25GB to start with. After that, power users can upgrade to the 150GB or 500GB plans that cost $4.95 or $14.95 per month, respectively.

There's a desktop application for the IDriveSync service, as well as mobile apps for
Android and iOS devices. The online storage space can be used to sync data with an unlimited number of devices or for non-sync backups in a feature called Out of Box. Out of Box keeps data as separate copies for each device and saves it in up to 30 versions, which is great if you tend to make wrong changes to your documents. The service's Web interface also permits quick drag and drop for data syncing or backups.

In all, if you're looking for a new way to conveniently and securely back up or sync your important data, hopefully 10GB of it or less, IDriveSync is totally worth a try even without its new Private Key option.

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Debate over Voting Rights Act changes in Ala.

(CBS News) -- On Wednesday, the Supreme Court will hear a challenge to the landmark Voting Rights Act of 1965. Both sides agree the south have changed in the past half-century. At issue is, has it changed enough?

In Shelby County, Alabama, the question is whether the state's racist past must forever define it.

(Watch: Voting Rights Act challengers take aim at "Section 5", below)

Fifty years ago, Alabama was the cradle of the civil rights movement, where protestors endured fire hoses, arrests and bombings in the fight for equality. One result was the Voting Rights Act.

One provision of the Act, Section 5, still requires all or part of 16 states, mostly in the south, to get approval from the Justice Department before changing voting procedures or electoral maps.

"Section five, which is what we are attacking, was never intended by congress to be permanent," said Frank Ellis, a Shelby County lawyer who is at the center of the battle to eliminate Section 5, and force the federal government to treat Alabama and other covered states like the rest of the country.

"They are still using the same criteria to determine whether these 16 states that are covered, they are still using the same test that they used in 1965," Ellis said.

"Things have changed in the South," he said. "This is a dynamic society."

But Ernest Montgomery says things have not changed enough. He was on the city council in Calera, Alabama when city officials, facing a population boom, redrew his district map. He lost the election to a white candidate. Under Section 5, the Justice Department ordered a new election and Montgomery won.

The minority representation in his district under the old map was about 67% African American, according to Montgomery. With the new map, that number dropped to about 28%.

Voting Rights Act faces Supreme Court challenge

Voting Rights Act Section 5 "not the only tool" to protect voting rights, Obama says

VIDEO: SCOTUS to hear challenge to Voting Rights Act

Shelby County Pastor Harry Jones calls it discrimination.

"I think it was designed to dilute the power of the minority community," Jones said. "It did just that."

Opponents like Ellis say they are not attacking the entire Voting Rights Act. If there's intentional discrimination, people can sue, just like they do in Michigan, Ohio and other states that aren't by Section Five.

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Senate Votes to Confirm Hagel as Defense Secretary

After a tough two-month battle characterized by tough interrogation and a partisan divide, the Senate voted 58-41 to confirm Chuck Hagel -- President Obama's nominee -- as secretary of defense this afternoon.

Only four Republicans broke party lines to vote in Hagel's favor. They included Sens. Thad Cochran of Mississippi, Richard Shelby of Alabama, Mike Johanns of Nebraska and Rand Paul of Kentucky, though Paul had voted against moving forward with the vote earlier today.

Before that cloture vote to close the debate and bring Hagel's nomination to a vote, Senate Majority Leader Harry Reid, D-Nev., warned Republicans against continuing their partisan fight against the nominee.

"Senate Republicans have delayed for the better part of two weeks for one reason: partisanship," Reid said. "Politically motivated delays send a terrible signal to allies around the world, and they send a terrible signal to tens of thousands of Americans serving in Afghanistan, other parts of world and those valiant people who are serving here in the United States. For the sake of national security, it's time to set aside this partisanship."

The measure to move forward passed by a vote of 71-27. It needed at least 60 votes to pass.

Some Republican senators took the time before the vote to take a last stab at Hagel.

John Cornyn, R-Texas, who was one of 15 senators who sent a letter to Obama last week calling for him to withdraw his nomination of Hagel, said Hagel had proved that he's ill-prepared to assume the defense secretary post.

Chuck Hagel as Secretary of Defense: Confirmation Process Watch Video

Obama Taps Sen. Chuck Hagel for Defense Secretary Watch Video

"There's simply no way to sugar coat it," Cornyn said. "Sen. Hagel's performance before the Senate Armed Services Committee was remarkably inept, and we should not be installing a defense secretary who is obviously not qualified for the job and who holds dangerously misguided views on some of the most important issues facing national security policy for our country. Sen. Hagel is clearly the wrong man for the job."

The Senate returned today after a week off from debating Hagel's pros and cons.

Today's was not the first attempt to bring Hagel's nomination to the floor.

Republicans blocked a cloture vote to confirm Hagel on Valentine's Day, pushing the decision back until after their President's Day recess.

Democrats framed that rejection as a filibuster, while Republicans said they needed another week to discuss the candidate's record.

"This is a very controversial nominee. There is a desire to not end debate now," Sen. Lindsey Graham, R-S.C., said that Thursday. "We feel like come back next week, after the break, unless there is some bombshell I'd be ready to move on to vote."

Ten days later, GOP Sens. Tom Coburn of Oklahoma and John McCain of Arizona predicted the Senate would go through with a vote today.

A group of 15 Republicans sent a letter to Obama last week asking him to withdraw Hagel's nomination. Coburn, one of the senators who signed that letter, said the fight among lawmakers over Hagel's qualifications would weaken him should he become secretary.

"I like Chuck Hagel as an individual, but the fact is, in modern times, we haven't had one defense secretary that's had more than three votes against him," Coburn said on "Fox News Sunday" this weekend. "And you're going to have 40 votes against him, or 35 votes. And that sends a signal to our allies as well as our foes that he does not have broad support in the U.S. Congress, which limits his ability to carry out his job."

McCain did not sign that letter.

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Italy faces stalemate after election shock

ROME (Reuters) - Italy faced political deadlock on Tuesday after a stunning election that saw the anti-establishment 5-Star Movement of comic Beppe Grillo become the strongest party in the country but left no group with a clear majority in parliament.

The center-left coalition led by Pier Luigi Bersani won the lower house by around 125,000 votes and claimed the most seats in the Senate but was short of the majority in the upper house that it would need to govern.

Bersani claimed victory but said it was obvious that Italy was in "a very delicate situation". Party officials said the center-left would try to form a government but it was unclear what its options would be.

Neither Grillo, a comedian-turned-politician who previously ruled out any alliance with another party, nor Silvio Berlusconi's center-right bloc, which threatened to challenge the close tally, showed any immediate willingness to negotiate.

World financial markets reacted nervously to the prospect of a government stalemate in the euro zone's third-largest economy with memories still fresh of the financial crisis that took the 17-member currency bloc to the brink of collapse in 2011.

Italy's borrowing costs have come down in recent months, helped by the promise of European Central Bank support but the election result confirmed fears that it would not produce a government strong enough to implement effective reforms.

Grillo's surge in the final weeks of the campaign threw the race open, with hundreds of thousands turning up at his rallies to hear him lay into targets ranging from corrupt politicians and bankers to German Chancellor Angela Merkel.

In just three years, his 5-Star Movement, heavily backed by a frustrated generation of young Italians increasingly shut out from permanent full-time jobs, has grown from a marginal group to one of the most talked about political forces in Europe.

Its score of 25.5 percent in the lower house was just ahead of the 25.4 percent for Bersani's Democratic Party, which ran in a coalition with the leftist SEL party and it won almost 8.7 million votes overall, more than any other single party.

"The 5-Star Movement is the real winner of the election," said SEL leader Nichi Vendola, who said that his coalition would have to deal with Grillo, who mixes fierce attacks on corruption with policies ranging from clean energy to free Internet.

RECESSION

"It's a classic result. Typically Italian," said Roberta Federica, a 36-year-old office worker in Rome. "It means the country is not united. It is an expression of a country that does not work. I knew this would happen."

A long recession and growing disillusion with mainstream parties fed a bitter public mood that saw more than half of Italian voters back parties that rejected the austerity policies pursued by Prime Minister Mario Monti with the backing of Italy's European partners.

Berlusconi's campaign, mixing sweeping tax cut pledges with relentless attacks on Monti and Merkel, echoed many of the themes pushed by Grillo and underlined the increasingly angry mood of the Italian electorate.

Stefano Zamagni, an economic professor at Bologna University said the result showed that a significant share of Italians "are fed up with following the austerity line of Germany and its northern allies".

"These people voted to stick one up to Merkel and austerity," he said.

Election rules give the center-left a solid majority in the lower house, despite its slim advantage in terms of votes, but without the Senate it will not be able to pass legislation.

Calculations by the Italian Centre for Electoral Studies, part of LUISS university in Rome, gave 121 seats to Bersani's coalition, 117 to Berlusconi, 54 for Grillo and 22 to the centrist coalition led by Monti.

That leaves no party or likely alliance with the 158 seats needed to form a Senate majority.

Even if the next government turns away from the tax hikes and spending cuts brought in by Monti, it will struggle to revive an economy which has scarcely grown in two decades.

Monti was widely credited with tightening Italy's public finances and restoring its international credibility after the scandal-plagued Berlusconi, whom he replaced as the 2011 financial crisis threatened to spin out of control.

But he struggled to pass the kind of structural reforms needed to improve competitiveness and lay the foundations for a return to economic growth and a weak center-left government may not find it any easier.

(Additional reporting by Naomi O'Leary and Stephen Jewkes; Editing by Doina Chiacu)

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UN calls for independent inquiry into Palestinian death

UNITED NATIONS: The United Nations called Monday for an independent inquiry into the death of a Palestinian in Israeli custody, warning that mounting tensions risk an eruption of violence in the occupied territories.

The Palestinians also demanded an independent investigation in a letter to the UN Security Council, which said that Arafat Jaradat, who died at the weekend, could have been tortured.

UN Middle East peace envoy Robert Serry made the call for an investigation in a statement after talks with Palestinian prime minister Salam Fayyad on the Jaradat's death.

Serry noted that Israeli and Palestinian experts had examined the body.

"The United Nations expects the autopsy to be followed by an independent and transparent investigation into the circumstances of Mr Jaradat's death, the results of which should be made public as soon as possible," the envoy added.

Jaradat was detained on February 18 and died five days later.

Israeli prison authorities said Jaradat appeared to have died of a heart attack. But the Palestinian minister of prisoner affairs, Issa Qaraqaa, citing the preliminary findings of the joint autopsy, reported bruises on Jaradat's body, muscle damage and broken ribs.

A letter sent by Palestinian UN ambassador Riyad Mansour to the Security Council said the autopsy revealed that Jaradat "was subjected to severe beatings, abuse and medical negligence during his captivity, possibly amounting to torture."

The letter said Jaradat had six broken bones in his neck, spine, arms and legs, along with other injuries.

Israel has said the prisoner could have suffered broken bones in attempts to resuscitate him after the heart attack.

"This horrific incident is further proof of the inhumane treatment systematically meted out by Israel against Palestinians in its jails," added the letter, which called for an "impartial investigation" and Security Council action to make Israel abide by humanitarian law.

Thousands attended the Jaradat's West Bank funeral on Monday and some militants have threatened revenge for his death.

Serry's statement said "mounting tensions present a real risk of destabilisation".

UN leader Ban Ki-moon expressed concern last week about the deteriorating state of Palestinian hunger strikers in Israeli jails and said that the rights of all Palestinian detainees must be fully respected.

-AFP/sb

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