Wall Street ends lower on growth worries

NEW YORK (Reuters) - U.S. stocks fell for a second straight day on Thursday and the S&P 500 posted its worst two-day loss since November after reports cast doubt over the health of the U.S. and euro-zone economies.

But a late-day rally helped stocks erase some of their losses with most of the pullback concentrated in the technology- heavy Nasdaq. The move suggested investors were still willing to buy on dips even after the sharp losses in the last session.

In Europe, business activity indexes dealt a blow to hopes that the euro zone might emerge from recession soon, showing the downturn across the region's businesses unexpectedly grew worse this month.

"The PMI numbers out of Europe were really a blow to the market," said Jack De Gan, chief investment officer at Harbor Advisory in Portsmouth, New Hampshire. "The market was expecting signs that recovery is still there, but the numbers just highlighted that the euro-zone problem is still persistent."

U.S. initial claims for unemployment benefits rose more than expected last week while the Federal Reserve Bank of Philadelphia said its index of business conditions in the U.S. mid-Atlantic region fell in February to the lowest in eight months.

Gains in Wal-Mart Stores Inc shares helped cushion the Dow. The shares gained 1.5 percent to $70.26 after the world's largest retailer reported earnings that beat expectations, though early February sales were sluggish.

The Dow Jones industrial average <.dji> fell 46.92 points, or 0.34 percent, to 13,880.62 at the close. The Standard & Poor's 500 Index <.spx> lost 9.53 points, or 0.63 percent, to 1,502.42. The Nasdaq Composite Index <.ixic> dropped 32.92 points, or 1.04 percent, to close at 3,131.49.

The two-day decline marked the U.S. stock market's first sustained pullback this year. The Standard & Poor's 500 has fallen 1.8 percent over the period and just managed to hold the 1,500 level on Thursday. Still, the index is up 5.3 percent so far this year.

The abrupt reversal in markets, which started on Wednesday after minutes from the Federal Reserve's January meeting suggested stimulus measures may end earlier than thought, looks set to halt a seven-week winning streak for stocks that had lifted the Dow and the S&P 500 close to all-time highs.

Wall Street will soon face another test with the upcoming debate in Washington over the automatic across-the-board spending cuts put in place as part of a larger congressional budget fight. Those cuts, set to kick in on March 1 unless lawmakers agree on an alternative, could depress the economy.

Semiconductor stocks ranked among the weakest of the day, pressuring the Nasdaq as the Philadelphia Semiconductor Index <.sox> fell 1.8 percent. Intel Corp fell 2.3 percent to $20.25 while Advanced Micro Devices lost 3.7 percent to $2.60 as the S&P 500's biggest percentage decliner.

The Dow also got a helping hand from personal computer maker Hewlett-Packard Co , which rose 2.3 percent to end the regular session at $17.10. The company was scheduled due to report first-quarter results after the closing bell.

Shares of Boeing Co rose 1.6 percent to $76.01 as a senior executive was set to meet with the head of the U.S. Federal Aviation Administration on Friday and present a series of measures to prevent battery failures that grounded its 787 Dreamliner fleet, according to a source familiar with the plans.

In other company news, shares of supermarket operator Safeway Inc jumped 14.1 percent to $22.97 after the company reported earnings that beat expectations.

Shares of VeriFone Systems Inc tumbled nearly 43 percent to $18.24 after the credit-card swipe machine maker forecast first- and second-quarter profits well below expectations.

Of the 427 companies in the S&P 500 that have reported results so far, 69.3 percent have exceeded analysts' expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters, according to Thomson Reuters data through Thursday morning.

Fourth-quarter earnings for S&P 500 companies are estimated to have risen 5.9 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

Berry Petroleum Co jumped 19.3 percent to $46.02 after oil and gas producer Linn Energy LLC said it would buy the company in an all-stock deal valued at $4.3 billion, including debt. Linn Energy shares advanced 2.8 percent to $37.68.

About two stocks fell for everyone that rose on the New York Stock Exchange and Nasdaq. About 7.64 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, well above the 20-day moving average of around 6.6 billion shares.

(Editing by Jan Paschal)

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Mom, daughter stabbed to death on South Side

Brittany Pullum describes the scene at a fire in the East Chatham neighborhood on Wednesday afternoon. (Posted on: Feb. 21, 2013)

Curtria Duncan had gone back to school to become a medical technician. Her mother Cherie Adams doted on her grandchildren.

Wednesday afternoon, the two were found stabbed in the bathroom of their apartment in the East Chatham neighborhood as firefighters put out a suspicious blaze.

Duncan, 24, was lying inside a bathtub and Adams, 43, was lying on the floor nearby in their apartment in the 8100 block of South Maryland Avenue, officials said.

Duncan died from "homicidal asphyxia," with multiple sharp force injuries a contributing factor in her death and Adams died from multiple sharp force and blunt force injuries, the Cook County medical examiner's office determined following autopsies. Both deaths were ruled homicides.

The apartment may have been set on fire to conceal the homicides, sources said. A large kitchen knife was found in the bathroom. No arrests have been reported.

"It hurts so bad," said Duncan’s sister Rochelle Pinex, 28, of Harvey. "Who could have done this and what for?"

Duncan had a 3-year-old son, Michael, but the boy was not home because he was visiting his father, Pinex said.

She said Duncan was studying to become a medical technician at Kennedy-King College, where she’d met a man who works at the school.

Pinex said Adams was her stepmother who had eight grandchildren who called her “Nana.’’

"She was changing her life around," Pinex said of Adams. "She was going to church three times a week and trying to spend more time with her grandchildren."

She described her sister and stepmother as people who “stayed to themselves’’ mostly.  “They don’t bother anybody,'' she said, sobbing.

Pinex said the women lived at the Maryland address for just under a year and rarely socialized, except for going to church and classes. “She’s a quiet girl,’’Pinex said of her sister.

Pinex, who has three children, said her 8-year-old daughter was looking forward to seeing Adams. “My kids, they loved their Nana to death,’’ she said. Her daughter was “begging” to go there for a weekend visit.

“She tugs at her (Adams’) heart and made her feel good,’’ Pinex said. “My daughter was her heart.’

“I’m trying to be strong,’’ Pinex said. “I can’t believe this tragedy.’’

chicagobreaking@tribune.com

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French, Malian forces fight Islamist rebels in Gao

GAO, Mali (Reuters) - French and Malian troops fought Islamists on the streets of Gao and a car bomb exploded in Kidal on Thursday, as fighting showed little sign of abating weeks before France plans to start withdrawing some forces.

Reuters reporters in Gao in the country's desert north said French and Malian forces fired at the mayor's office with heavy machineguns after Islamists were reported to have infiltrated the Niger River town during a night of explosions and gunfire.

French Defense Minister Jean-Yves Le Drian told a news conference in Brussels that Gao was back under control after clashes earlier in the day.

"Malian troops supported by French soldiers killed five jihadists and the situation is back to normal," he said.

In Kidal, a remote far north town where the French are hunting Islamists, residents said a car bomb killed two. A French defense ministry source reported no French casualties.

French troops dispatched to root out rebels with links to al Qaeda swiftly retook northern towns last month. But they now risk being bogged down in a guerrilla conflict as they try to help Mali's weak army counter bombings and raids.

"There was an infiltration by Islamists overnight and there is shooting all over the place," Sadou Harouna Diallo, Gao's mayor, told Reuters by telephone earlier in the day, saying he was not in his office at the time.

Gao is a French hub for operations in the Kidal region, about 300 km (190 miles) northeast, where many Islamist leaders are thought to have retreated and foreign hostages may be held.

"They are black and two were disguised as women," a Malian soldier in Gao who gave his name only as Sergeant Assak told Reuters during a pause in heavy gunfire around Independence Square.

Six Malian military pickups were deployed in the square and opened fire on the mayor's office with the heavy machineguns. Two injured soldiers were taken away in an ambulance.

French troops in armored vehicles later joined the battle as it spilled out into the warren of sandy streets, where, two weeks ago, they also fought for hours against Islamists who had infiltrated the town via the nearby river.

Helicopters clattered over the mayor's office, while a nearby local government office and petrol station was on fire.

A Gao resident said he heard an explosion and then saw a Malian military vehicle on fire in a nearby street.

Paris has said it plans to start withdrawing some of its 4,000 troops from Mali next month. But rebels have fought back against Mali's weak and divided army, and African forces due to take over the French role are not yet in place.

Islamists abandoned the main towns they held but French and Malian forces have said there are pockets of Islamist resistance across the north, which is about the size of France.

CAR BOMB

Residents reported a bomb in the east of Kidal on Thursday.

"It was a car bomb that exploded in a garage," said one resident who went to the scene but asked not to be named.

"The driver and another man were killed. Two other people were injured," he added.

A French defense ministry official confirmed there had been a car bomb but said it did not appear that French troops, based at the town's airport, had been targeted.

Earlier this week, a French soldier was killed in heavy fighting north of Kidal, where French and Chadian troops are hunting Islamists in the Adrar des Ifoghas mountains, which border Algeria.

Operations there are further complicated by the presence of separatist Tuareg rebels, whose rebellion triggered the fighting in northern Mali last year but were sidelined by the better-armed Islamists.

Having dispatched its forces to prevent an Islamist advance south in January, Paris is eager not to become bogged down in a long-term conflict in Mali. But their Malian and African allies have urged French troops not to pull out too soon.

(Additional reporting by Emanuel Braun in Gao, Adama Diarra in Bamako, David Lewis and John Irish in Dakar and Adrian Croft in Brussels; Writing by David Lewis; Editing by Jason Webb and Roger Atwood)

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Wall Street ends down sharply after Fed minutes

(Reuters) - And the Oscar for best pickup line in a movie goes to - Audrey Hepburn in the romantic thriller, "Charade." That's according to the results from women polled by the U.K.-based dating site Badoo.com and released on Wednesday before the Academy Awards on Sunday. "I don't bite you know ... unless it's called for," Hepburn told Cary Grant in the 1963 release, and, 50 years later, women still chose it first. Men, however, had different ideas. They favored this Bette Davis line from the 1932 movie, "The Cabin in the Cotton," - "I'd love to kiss you, but I just washed my hair. ...

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Police add more confusion to Oscar Pistorius case

PRETORIA, South Africa (AP) — The prosecution case against Oscar Pistorius began to unravel Wednesday with revelations of a series of police blunders and the lead investigator's admission that authorities have no evidence challenging the double-amputee Olympian's claim he killed his girlfriend accidentally.

Detective Hilton Botha's often confused testimony left prosecutors rubbing their heads in frustration as he misjudged distances and said testosterone — banned for professional athletes in some cases — was found at the scene, only to be later contradicted by the prosecutor's office.

The second day of what was supposed to be a mere bail hearing almost resembled a full-blown trial for the 26-year-old runner, with his lawyer, Barry Roux, tearing into Botha's testimony step by step during cross examination.

Police, Botha acknowledged, left a 9 mm slug from the barrage that killed Reeva Steenkamp inside a toilet and lost track of illegal ammunition found inside the house. And the detective himself walked through the crime scene without wearing protective shoe covers, potentially contaminating the area.

Authorities, Roux asserted, were selectively taking "every piece of evidence to try to extract the most possibly negative connotation and present it to the court."

The case has riveted South Africa, with journalists and the curious crowding into the brick-walled courtroom where Pistorius, dubbed the Blade Runner for his prosthetic legs, faces a charge of premeditated murder in the Valentine's Day slaying.

Pistorius says he mistook Steenkamp for an intruder and shot her out of fear, while prosecutors say he planned the killing and attacked her as she cowered behind a locked bathroom door.

The day seemed to start out well for the prosecution, with Botha offering new details of the shooting that appeared to call into question Pistorius' account of the moments leading up to the 29-year-old model's death.

Ballistic evidence, he said, showed the bullets that killed her had been fired from a height, supporting the prosecution's assertion that Pistorius was wearing prosthetic legs when he took aim at the bathroom door. The athlete has maintained he was standing only on his stumps, and felt vulnerable and frightened as he opened fire from a low position.

Projecting a diagram of the bedroom and bathroom, prosecutor Gerrie Nel said it showed Pistorius had to walk past his bed to get to bathroom and could not have done so without seeing that Steenkamp was not asleep there.

"There's no other way of getting there," Nel said in disputing Pistorius' claim that he had no idea Steenkamp was no longer in bed when he pumped four bullets into the bathroom door, striking her with three.

Botha backed the prosecutor up, saying the holster for Pistorius' 9 mm pistol was found under the left side of the bed, where Steenkamp slept, and it would have been impossible for Pistorius to get the gun without checking to see if she was there.

"I believe that he knew that Reeva was in the bathroom and he shot four shots through the door," the detective said.

Botha described how bullets struck Steenkamp in the head and shattered her right arm and hip, eliciting sobs from Pistorius, who held his head in hands.

However, when asked if Steenkamp's body showed "any pattern of defensive wounds" or bruising from an assault, Botha said "no." He again responded "no" when asked if investigators found anything inconsistent with Pistorius' version of events, though he later said nothing contradicted the police version either.

Testimony began with the prosecutor telling the court that before the shooting, a neighbor heard "nonstop" shouting between 2 a.m. and 3 a.m. at Pistorius' upscale home in a gated community in the capital, Pretoria.

However, Botha later said under cross examination that the witness was in a house 600 yards (meters) away, possibly out of earshot. He cut that estimate in half when questioned again by the prosecutor, as confusion reigned for much of his testimony.

At one point, Botha told the court that police found syringes and two boxes of testosterone in Pistorius' bedroom — testimony the prosecution later withdrew, saying it was too early to identify the substance, which was still being tested.

"It is not certain (what it is) until the forensics" are completed, Medupe Simasiku, a spokesman for South Africa's National Prosecution Agency, told The Associated Press. It's not clear if it was "a legal or an illegal medication for now."

The defense also disputed the claim. "It is an herbal remedy," Roux said. "It is not ... a banned substance."

Still, Botha offered potentially damaging details about Pistorius' past, saying the athlete was once involved in an accidental shooting at a restaurant in Johannesburg and asked someone else "to take the wrap."

The runner also threatened men on two separate occasions, Botha said, allegedly telling one he'd "break his legs."

The detective said police found two iPhones in Pistorius' bathroom and two BlackBerrys in his bedroom, and none had been used to phone for help. Guards at the gated community did call the athlete, Botha said, and all he said was: "I'm all right," as he wept uncontrollably.

Roux later suggested that a fifth phone, not collected by the police, was used by Pistorius to call for help.

The question now is whether Botha's troubled testimony will be enough to convince Chief Magistrate Desmond Nair to keep Pistorius in prison until trial. While Pistorius faces the harshest bail requirements under South African law, the magistrate has said he would consider loosening them based on testimony in the hearing. Final arguments were scheduled for Thursday.

___

Gerald Imray reported from Johannesburg. Associated Press writer Michelle Faul in Johannesburg contributed to this report.

___

Jon Gambrell can be reached at www.twitter.com/jongambrellAP. Gerald Imray can be reached at www.twitter.com/geraldimrayAP.

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What legacy for Hillary on gay rights?

STORY HIGHLIGHTS

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


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


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


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

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

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

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

Frida Ghitis

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

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

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

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

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

Opinion: President Hillary Clinton? If she wants it

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

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

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

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

News: Hillary Clinton talks future 'adventures'

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

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

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

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

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

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

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

Follow us on Twitter @CNNOpinion.

Join us on Facebook/CNNOpinion.

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

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

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

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

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

Attorneys this afternoon argued about whether Peterson should get a new trial after his murder conviction last fall in the drowning of his third wife, Kathleen Savio. Judge Edward Burmila said he would deliver his ruling when court resumes at 1 p.m. Thursday.

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

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

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

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

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

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

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

“It was a dictatorship," Greenberg said.

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

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

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

"Nothing the state has done, ignoring all the other glaring privilege issues, the record as a whole does nothing more than raise suspicion about what happened in the [Kathleen] Savio home,”  Peterson attorney John Heiderscheidt said in court. “My heart breaks for the Savio family and the [Stacy] Cales family. I don't know what it's like to lose a loved one and I hope I never have to. But the courts don't exist to mend broken hearts alone."

“There will come a time when we all turn to ashes and dust, and all that will be left here is the court record," Heiderscheidt said. "And I'm certain that when we remove ourselves from the passions and prejudices aroused by various people throughout this trial, we will see that this verdict is unsupported by the facts. No rational trier of the facts could believe it."

"So you're asking me to enter a judgment of acquittal, not withstanding the jury verdict?" Burmila asked.

Heiderscheidt said yes, and said that the court has the authority to overrule a verdict that is so unsupported by the evidence.

Assistant State's Attorney Marie Czech argued that the evidence clearly showed Peterson murdered his third wife, something he had threatened to do on multiple occasions.

"He told Kathy Savio, 'I'm going to kill you and make it look like an accident,'” Czech said. "He said this with a knife to her throat."

The threats, the multiple injuries on her body that could not have been the result of a fall, all point to the fact that the jury's verdict was correct, she said.

Peterson’s attorneys have tried to show that ethical lapses and trial errors by former lead defense attorney Joel Brodsky are reason to give Peterson a new murder trial.

In a final twist to their unorthodox legal strategy, the defense attempted this afternoon to call Will County State’s Attorney James Glasgow to the witness stand.

They wanted to ask about a comment made by Glasgow outside court during Peterson’s murder trial where Glasgow said the defense team’s decision to call Smith to the testify was a “gift from God.”

Defense attorneys said Glasgow’s comment shows that he understood that Brodsky's decision to call Smith was terrible.

But Burmila barred the defense from asking about that statement, and he said that if that's all the defense wanted to ask him about, he would not make Glasgow testify after all.

The hearing on a new trial began Tuesday and resumed this morning with retired Cook County Judge Daniel Locallo taking the witness stand.

Locallo was critical of media licensing contracts made by Brodsky and also of Brodsky’s strategy at Peterson’s murder trial last year.

Locallo testified that he believes Brodsky's contracts with media – which included a book and movie deal -- were in violation of rules of attorney conduct in Illinois because they could create a conflict of interest at the expense of his client.

"The conflict that is raised is who does Mr. Brodsky owe his loyalty to -- his pocket book or Mr. Peterson?,” Locallo said. “Because when that individual is represented by an attorney, you want that attorney to be focused to representing their client to the full extent. You do not want to have a situation where his attention may be diverted and he makes decisions more in line with the contract than in line with the best interests of Mr. Peterson.”

Locallo said that there was the possibility that Brodsky could make more money if the case dragged on through appeal, and he might not be motivated to aggressively fight the charges prior to and during the trial.

“There might be more interest in the case if there are subsequent proceedings," Locallo said. "If he’s successful on Mr. Peterson's behalf, the spigot might be turned off. Media interest would wane, and therefore his ability to receive compensation would end.”

Locallo also blasted Brodsky for calling Smith to testify.

“Up to that point there had not been any direct evidence about Mr. Peterson causing the demise of Ms. Savio. Brodsky puts on Mr. Smith, and now the jury is able to hear evidence about Stacy Peterson having a conversation with Mr. Smith about how it might be used (as) leverage against Mr. Peterson, the fact that he may have killed Kathleen Savio, how she was killed, how it might be used,” Locallo testified.

mwalberg@tribune.com
sschmadeke@tribune.com

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French general urges EU to equip "impoverished" Mali army

BAMAKO, Mali (Reuters) - The European Union should complement a mission to train Mali's army, routed by rebels last year, by providing equipment from uniforms to vehicles and communications technology, a French general said on Wednesday.

General Francois Lecointre, appointed to head the EU training mission to Mali (EUTM) that was formally launched this week, said in Bamako equipping the "very impoverished" and disorganized Malian army was as important as training it.

Europe, along with the United States, has backed the French-led military intervention in Mali which since January 11 has driven al Qaeda-allied Islamist insurgents out of the main northern towns into remote mountains near Algeria's border.

European governments have ruled out sending combat troops to join French and African soldiers pursuing the Islamist rebels.

But the EU is providing a 500-strong multinational training force that will give military instruction to Malian soldiers for an initial period of 15 months at an estimated cost of 12.3 million euros ($16.45 million).

While hailing what he called the EU's "courageous, novel, historic" decision to support Mali, Lecointre told a news conference the Malian army's lack of equipment was a problem.

"I know the Malian state is poor, but the Malian army is more than poor," the French general told a news conference, adding that it urgently needed everything from uniforms and weapons to vehicles and communications equipment.

Last year, when Tuareg separatist forces swelled by weapons and fighters from the Libyan conflict swept out of the northern deserts, a demoralized and poorly-led Malian army collapsed and fled before them, abandoning arms and vehicles.

Mali's military was further shaken by a March 22 coup by junior officers who toppled President Amadou Toumani Toure, sowing division among rival army factions. Islamist radicals allied to al Qaeda later hijacked the victorious Tuareg rebellion to occupy the northern half of the country.

In a fast-charging military campaign led by Paris, French and African troops have driven the jihadists out of principal northern towns like Gao and Timbuktu, and are fighting the rebels in the Adrar des Ifoghas mountains.

HUMAN RIGHTS INSTRUCTION

Flanked by Mali's armed forces chief, General Ibrahima Dembele, Lecointre said he was disappointed that a meeting of international donors last month pledged funds for an African military force, known as AFISMA, being deployed in Mali, but included "very few" contributions for the Malian army itself.

"The European Union needs to invest today in the equipping of the Malian army and not just in its training," the general said, adding he would make this point strongly in a report to EU member state representatives early next month.

Asked how much re-equipping the army would cost, he said it would be "much more" than the 12 million euros of EU financing for the training mission, but could not give a precise estimate.

Starting early in April, the EU mission will start instructing Malian soldiers with a plan to train four new battalions of 600-700 members each, formed from existing enlisted men and new recruits.

Lecointre said the EU training would include instruction in human rights. Demands for this increased after allegations by Malian civilians and international human rights groups that Malian soldiers were executing Tuaregs and Arabs accused of collaborating with Islamist rebels.

The European training contingent is drawn from a range of European countries, but the main contributors would be France, Germany, Italy, Spain and Britain, EUTM officers said.

Mali's army has received foreign training before - several battalions that fled before the rebels last year were trained by the U.S. military and the leader of the March 22 coup, Captain Amadou Sanogo, attended training courses in the United States.

Dembele said U.S. training failed to forge cohesion among Malian units and he hoped the EU training would achieve this.

The United States, which halted direct support for the Malian military after last year's coup, could eventually resume aid if planned national elections in July fully restore democracy to the West African country.

Washington is providing airlift, refuelling and intelligence support to the French-led military intervention in Mali. ($1 = 0.7479 euros)

(Reporting by Pascal Fletcher; Editing by Jason Webb)

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M&A deals lift Wall Street shares nearer a record high

NEW YORK (Reuters) - U.S. stocks rose on Tuesday as this year's ongoing surge in merger activity suggested investors were still finding value in the market even as indexes closed in on all-time highs.

Office Depot Inc surged 9.4 percent to $5.02 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 , which jumped more than 20 percent.

News of the potential move came just days after Berkshire Hathaway and a partner agreed to acquire H.J. Heinz Co for $23 billion, and following a revised $20 billion takeover of Mexican brewer Grupo Modelo by Anheuser-Busch InBev .

Deal activity has helped equities resist 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.

The Dow industrials closed 0.9 percent away from their record high while S&P 500 was 2.2 percent off its peak.

"Deals are good for the market," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago. "The fact that they're being done is a positive."

More than $158 billion in deals has been announced so far in 2013, more than double the activity in the same period last year and accounting for 57 percent of global deal volumes, according to Thomson Reuters Deals Intelligence.

The Dow Jones industrial average <.dji> gained 53.91 points, or 0.39 percent, to 14,035.67. The Standard & Poor's 500 Index <.spx> gained 11.15 points, or 0.73 percent, to 1,530.94. The Nasdaq Composite Index <.ixic> gained 21.56 points, or 0.68 percent, to 3,213.59.

Other stocks in the office supplies sector also rose. Larger rival Staples Inc shot up 13.1 percent to $14.65 as the best performer on the S&P 500.

"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.

On the downside, health insurance stocks tumbled, led by a 6.4 percent drop in Humana Inc to $73.01. 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 1.2 percent to $56.66. The Morgan Stanley healthcare payor index <.hmo> dropped 1.2 percent.

Wall Street's strong start to the year was fueled by better-than-expected corporate earnings, as well as a compromise 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.

Some investors say the debate could be the catalyst for a long anticipated sell-off after the market's recent strong run.

Carter Worth, a technical analyst at Oppenheimer, pointed to the "especially complacent action of the past six weeks," noting that, as of Friday, stocks have gone 33 sessions without a dip of more than 1.5 percent.

"We would be selling aggressively into the market's current strength," he said in a research note.

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.

Express Scripts rose 2.5 percent to $56.98 after the pharmacy benefits manager posted fourth-quarter earnings.

About two stocks rose for everyone that fell on the New York Stock Exchange and Nasdaq. About 6.48 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, in line with the daily average so far this year.

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

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Pistorius: Lover caught in tragedy or killer?

PRETORIA, South Africa (AP) — Oscar Pistorius portrayed himself as a lover caught in tragedy, wielding a pistol and frightened as he stood only on his stumps, then killed his girlfriend after mistaking her for an intruder on Valentine's Day.

Prosecutors, however, said the double-amputee Olympian committed premeditated murder, planning the slaying, then firing at Reeva Steenkamp as she cowered behind his locked bathroom door with no hope of escape.

"She couldn't go anywhere," Prosecutor Gerrie Nel told a packed courtroom Tuesday. "It must have been horrific."

Weeping uncontrollably, Pistorius listened as his words were read out in court by his attorney during the opening of a two-day bail hearing, his first public account of the events surrounding the shooting death of Steenkamp, a 29-year-old model and reality TV star who had spoken out against violence against women.

"I fail to understand how I could be charged with murder, let alone premeditated murder, as I had no intention to kill my girlfriend, Reeva Steenkamp," Pistorius said in the sworn affidavit. "I deny the aforesaid allegation in the strongest terms."

It was the first time that the prosecution and Pistorius provided details of their radically divergent accounts of the killing, which has shocked South Africans and fans worldwide, who idolized the 26-year-old track star known as the Blade Runner for overcoming his disability to compete in last summer's London Olympics.

Nel said Pistorius committed premeditated murder when he rose from his bed after a fight with Steenkamp, pulled on his prosthetic legs and walked about 20 feet from his bedroom to the locked toilet door and pumped it with four bullets, three of which hit the model.

That contradicted the runner's statement, read aloud by defense attorney Barry Roux, who described how the couple spent a quiet night together in the athlete's upscale home in a gated community in the capital of Pretoria, then went to sleep around 10 p.m.

Sometime before dawn, Pistorius said he awoke, and walking only on his stumps, pulled a fan in from an open balcony and closed it. That's when he said he heard a noise and became alarmed because the bathroom window, which had no security bars, was open and workers had left ladders nearby.

"It filled me with horror and fear," Pistorius said in the statement.

"I am acutely aware of violent crime being committed by intruders entering homes," he said. "I have received death threats before. I have also been a victim of violence and of burglaries before. For that reason I kept my firearm, a 9 mm Parabellum, underneath my bed when I went to bed at night."

Too frightened to turn on a light, Pistorius said, he pulled out his pistol and headed for the bathroom, believing Steenkamp was still asleep "in the pitch dark" of the bedroom.

"As I did not have my prosthetic legs on and felt extremely vulnerable, I knew I had to protect Reeva and myself," he said, adding that he shouted to Steenkamp to call the police as he fired at the closed toilet door.

It was then, Pistorius said, that he realized Steenkamp was not in bed.

He said he pulled on his prosthetic legs and tried to kick down the toilet door before finally giving up and bashing it in with a cricket bat. Inside, he said he found Steenkamp, slumped over but still alive. He said he lifted her bloodied body and carried her downstairs to seek medical help.

But it was too late. "She died in my arms," Pistorius said.

"We were deeply in love and I could not be happier," the athlete said. "I know she felt the same way. She had given me a present for Valentine's Day but asked me only to open it the next day."

Pistorius broke down in sobs repeatedly as his account was read, prompting Chief Magistrate Desmond Nair to call a recess at one point.

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

"Yes, my lordship," Pistorius replied, his voice quivering.

Nair adjourned the case until Wednesday without ruling on whether Pistorius would be granted bail. However, he said the gravity of the charge — which carries a mandatory life sentence — meant the athlete's lawyers must offer "exceptional" reasons for bail to be granted, making his release unlikely.

Roux, the defense attorney, said there was no evidence to substantiate a murder charge. "We submit it is not even murder. There is no concession this is a murder," he said.

The prosecutor disagreed.

"It is our respectful argument that 'pre-planning' or premeditation do not require months of planning," Nel said. "If ... I ready myself and walk a distance with the intention to kill someone, it is premeditated."

Hundreds of miles from the Magistrate's Court, a memorial service was held for Steenkamp in the south coast 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 and cremation.

Relatives recalled how the model with a law degree had campaigned against domestic violence and had planned to don black for a "Black Friday" protest in honor of a 17-year-old girl who was recently gang-raped and mutilated.

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," said her uncle, Mike Steenkamp.

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

Since the shooting, several of Pistorius' sponsors have dropped him. On Tuesday, Clarins Group, which owns Thierry Mugler Perfumes, said it would withdraw all advertising featuring the Olympian. A cologne line with the company, called A(asterisk)Men, bears his image.

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Associated Press writer Michelle Faul in Johannesburg and AP photographer Schalk van Zuydam in Port Elizabeth, South Africa, contributed to this report.

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Jon Gambrell can be reached at www.twitter.com/jongambrellAP. Gerald Imray can be reached at www.twitter.com/geraldimrayAP.

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