Scientists link two rats' brains, a continent apart






PARIS: Creating a "superbrain" of connected minds, scientists on Thursday said they had enabled a rat to help a fellow rodent while the animals were a continent apart but connected through brain electrodes.

With electrodes imbedded in its cortex, a rat in a research institute in Natal, Brazil sent signals via the Internet to a counterpart at a university lab in Durham, North Carolina, helping the second animal to get a reward.

The exploit opens up the prospect of linking brains among animals to create an "organic computer", said Brazilian neurobiologist Miguel Nicolelis.

It also helps the quest to empower patients stricken with paralysis or locked-in syndrome, he said.

"We established a functional linkage between two brains. We created a superbrain that comprises two brains," Nicolelis said in a phone interview with AFP.

Published in the journal Scientific Reports, Nicolelis' team gave basic training to thirsty rats, who had to recognise lights and operate a lever to get a reward of water.

They then implanted ultra-fine electrodes in the rats' brains, which were linked by a slender overhead cable to a computer.

In a glass tank in Natal, the first rat was the "encoder", its brain sending out a stream of electrical pulses as it figured out the tricks for getting the reward.

The pulses were sent in real time into the cortex of the second rat, or "decoder" rat, which was facing identical apparatus in a tank in North Carolina.

With these prompts from its chum, the decoder rat swiftly found the reward in turn.

"The pair of animals collaborated to solve a task together," said Nicolelis.

What the second rat received were not thoughts, nor were they images, Nicolelis said.

When the encoder rat achieved various tasks, the peaks in his brain signals were transcribed into a telltale pattern of electronic signals that were received by the decoder rat.

Once the rat recognised the usefulness of these patterns, they became incorporated into its visual and tactile processing.

"The second rat learns to recognise a pattern, a statistical pattern, that describes a decision taken by the first rat. He's creating an association of that pattern with a decision," said Nicolelis.

"He may be feeling a little tactile stimulus, but it's something that we don't know how to describe because we cannot question the subject."

The linkage "suggests we could create a brain net, formed of joined-up brains, all interacting," the scientist said, hastening to stress that such experiments would only be conducted on lab animals, not humans.

"If you connect several animal brains, rat brains or primate brains, you probably could be creating an organic computer that is a non-Turing machine, a machine that doesn't work according to the Turing design of all the digital computers that we know. It would be heuristic, it wouldn't use an algorithm, and it would uses probabilistic decision-making based on organic hardware."

Still unclear is how the decoder animal incorporates the encoder's signals into its mental space, a phenomenon called cortical plasticity.

"We basically show that the decoder animal can incorporate another body as an extension of the map that the animal has in it's own brain," said Nicolelis, adding, though: "We don't know how this is done."

Nicolelis carries out research at Duke University in Durham and at the Edmond and Lily Safra International Institute for Neuroscience of Natal, or ELS-IINN.

A decade ago, he leapt to prominence for pioneering work in having lab monkeys move a robotic arm through brain impulses.

The latest work should help this, he said: "We are learning ways to interact with and send messages to the mammalian brain that will be fundamental for our goals of medical rehabilitation."

His next goal is to have a paraplegic patient give the official kickoff to the 2014 World Cup in Brazil, using a brain-machine interface to activate an artificial limb.

- AFP/al



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House panel against considering mercy plea of rape-murder convicts

NEW DELHI: Two months after questioning the rationale behind commuting death sentences of five rape-murder convicts to life imprisonment during then President Pratibha Patil's tenure, a Parliamentary committee has now suggested that the mercy petitions should not be by and large considered for such criminals.

Though the Committee is not in favour of completely knocking out the provision of mercy plea for convicts like those on death row, it wants the government to spell out reasons for grant of pardon.

The Parliament Standing Committee on home affairs - which finalized its report on the Criminal Law (Amendment) Bill, 2012 on Tuesday - also recommended the government to expeditiously dispose off any mercy petition.

Besides, the panel has favoured death sentence for rapists in case the victim dies or is left comatose. It has also agreed to replace the word 'rape' with 'sexual assault' - in sync with the Ordinance on criminal law that was promulgated by President Pranab Mukherjee on February 3 - and suggested including all clauses on capital punishment in the new Bill.

Sources in the home ministry said that the government will withdraw the pending Bill and introduce new Criminal Law (Amendment) Bill, 2013, in Parliament next month. The new Bill, replacing the Ordinance, will incorporate these provisions.

Though the matter concerning mercy pleas was not part of the panel's mandate, it is learnt to have suggested in the wake of strong objections raised by a few members over commutation of death sentence of five rapist-murderers to life imprisonment by President Patil between 2010 and 2012.

Members of the Committee - headed by BJP Rajya Sabha member M Venkaiah Naidu - had on December 27, 2012, referred to four cases involving five rapist-murderers while questioning the government's decision.

The cases include that of Uttar Pradesh's Bantu, who was convicted for raping and killing a five-year-old girl. His mercy petition was disposed off in his favour by President Patil last June. Among others whose death sentences were commuted include Moloi Ram and Santosh Yadav of Madhya Pradesh in February 2011, Satish of UP (May, 2012) and Dharmender Singh (June, 2010).

The last such criminal was hanged in the country was West Bengal's Dhananjoy Chatterjee in August, 2004. He was found guilty of raping and killing a 14-year-old girl in 1990.

Under Article 72 of the Constitution, the President's clemency powers can only be exercised under the government's advice. "The President shall have the power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any person convicted of any offence," the Article says.

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Bring on the Cuts: Some Want the Sequester












Mark Lucas wouldn't mind seeing America's defense budget cut by billions.


"There's quite a bit of waste within the military," Lucas, who serves as Iowa state director for the conservative group Americans for Prosperity (AFP), told ABC News. "Being in there for 10 years, I've seen quite a bit of it."


With the budget sequester set to kick in on Friday, the former Army ranger is among a small chorus of conservatives saying bring on the cuts.


Read more: Bernanke on Sequester Cuts: Too Much, Too Soon


Lucas cited duplicative equipment purchases, military-run golf courses and lavish food on larger bases -- unlike the chow he endured at a combat operations post in Afghanistan with about 120 other soldiers.


"These guys would have very good food, and I'm talking almost like a buffet style, shrimp and steak once a week, ice cream, all this stuff," Lucas said. "They had Burger Kings and Pizza Huts and McDonald's. And I said to myself, 'Do we really need this?'"


Lucas and AFP would like to see the sequester modified, with federal agencies granted more authority to target the cuts and avoid the more dire consequences. But the group wants the cuts to happen.


"We're very supportive of the sequestration cuts but would prefer to see more targeted cuts at the same level," said the group's spokesman, Levi Russell.


As President Obama and his Cabinet members are sounding the sequester alarm bells, AFP's willingness shows that not everyone is running for the hills.






Charles Dharapak/Pool/AP Photo











Speaker Boehner Hopes Senate 'Gets Off Their Ass' Watch Video









Sequester Showdown: Automatic Spending Cuts Loom Watch Video









President Obama Details Consequences of Sequester Cuts Watch Video





Read more: 57 Terrible Consequences of the Sequester


Obama traveled to Norfolk, Va., on Tuesday to speak at a shipyard about cuts and layoffs to defense contractors. In his most recent weekly radio address, he told Americans that the Navy has already kept an aircraft carrier home instead of deploying it to the Persian Gulf. And last week, he spoke before national TV cameras at the White House, warning that first responders would be laid off.


Homeland Security Secretary Jane Napolitano has warned that the sequester will "leave critical infrastructure vulnerable to attacks." Transportation Secretary Ray LaHood has warned that air travel will back up after the Federal Aviation Administration furloughs air traffic controllers. And the heads of 18 other federal agencies told Congress that terrible things will happen unless the sequester is pushed off.


Some Republicans have accused the president of scaremongering to gin up popular support for tax hikes. Obama has warned of calamity and demanded compromise in the next breath, and a few Republicans have rejected this as a false choice.


Read more: Boehner Hopes Senate 'Gets Off Their Ass'


"I don't think the president's focused on trying to find a solution to the sequester," House Speaker John Boehner told reporters at a press conference on Tuesday. "For 16 months, the president's been traveling all over the country holding rallies, instead of sitting down with Senate leaders in order to try to forge an agreement over there in order to move the bill."


After Obama spoke to governors at the this week, Republican Louisiana Gov. Bobby Jindal told ABC News' Jonathan Karl outside the White House that the president is exaggerating the sequester's consequences.


"He's trying to scare the American people," Jindal said. "He's trying to distort the impact."






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Fitch Ratings warns US over budget fighting






WASHINGTON: Ratings agency Fitch warned Washington on Wednesday that continued political fighting over the government budget and deficit-cutting measures could lead to the US losing its AAA grade.

With the government two days away from enacting the harsh "sequester" budget cuts because political parties cannot agree a more moderate compromise, Fitch said that the policy deadlock could lower confidence in the world's largest economy.

It pointed out that after the $85 billion sequester cuts that begin to take effect Friday comes a battle over a six-month budget, which has to be concluded by March 31 or the government could be shut down.

And shortly after that, on May 19, the country will hit its statutory borrowing limit.

"Implementation of the automatic spending cuts -- the sequester -- and a government shutdown would not prompt a negative rating action," Fitch said in a statement.

"But such an outcome would further erode confidence that timely agreement will be reached on additional deficit-reduction measures necessary to secure the 'AAA' rating."

Fitch, like other rating agencies focused mainly on how the US will reduce its massive deficit and debt burdens over the medium term, said that the sequester itself was not bad.

It called the 2011 poison-pill deal between Democrats and Republicans, originally aimed at scaring them into a more moderate deficit-cutting plan, the government's "only substantive agreement on medium-term deficit reduction" so far.

But it acknowledged projections that implementing the sequester's $85 billion in targeted cuts over the next seven months, and $110 billion in reductions for the 2014 fiscal year, would slow economic growth.

"A re-profiling of the spending cuts would support the economic recovery," Fitch said.

"But eliminating the sequester without putting in place equivalent deficit-reduction measures would imply higher deficits and debt than currently projected by Fitch and increase the pressure on the US sovereign ratings."

- AFP/al



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Afzal Guru 'justified' Parliament attack in letter written four years ago

SRINAGAR: Parliament attack convict Mohammad Afzal Guru had in a letter, purportedly written by him over four years ago, said that there was no need to be ashamed of the December 13 attack on Parliament, but had stopped short of owning any responsibility for it.

In the letter written to editor of a local Urdu weekly, Guru, who was hanged in Delhi's Tihar jail on February 9, asked Hizbul Mujahideen chief Syed Salahuddin not to be "ashamed of December 13" and stop terming the attack as a "conspiracy".

Editor of the Urdu weekly Shabnum Qayoom said that he had been receiving Guru's letters and articles and is sure that this letter was written by him.

"I used to receive his (Guru's) letters and articles, so this was nothing new. The handwriting is the same as the previous letters and articles. I do not care if people believe it to be authentic or not," he said.

Asked why he did not publish the letter for four years, he said he did not deem it appropriate.

"I believe he was swept by emotions. He was not involved but he thought that as there was no way for escape, why not accept and achieve martyrdom. I did not think it was appropriate to publish the letter that time as it would have been taken as an evidence against him, but now that he is no more, I went ahead with it," he said.

Guru had said in the letter, "I request Salahuddin to not call the attack of December 13 as a conspiracy. It pains my heart. The attacks are related to Kashmir issue. If the attack was a conspiracy, then the whole struggle is a conspiracy. We should not be ashamed of December 13".

He said as long as the Kashmir issue is kept unresolved, India and its rulers will have "temporary peace".

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Koop, who transformed surgeon general post, dies


With his striking beard and starched uniform, former Surgeon General Dr. C. Everett Koop became one of the most recognizable figures of the Reagan era — and one of the most unexpectedly enduring.


His nomination in 1981 met a wall of opposition from women's groups and liberal politicians, who complained President Ronald Reagan selected Koop, a pediatric surgeon and evangelical Christian from Philadelphia, only because of his conservative views, especially his staunch opposition to abortion.


Soon, though, he was a hero to AIDS activists, who chanted "Koop, Koop" at his appearances but booed other officials. And when he left his post in 1989, he left behind a landscape where AIDS was a top research and educational priority, smoking was considered a public health hazard, and access to abortion remained largely intact.


Koop, who turned his once-obscure post into a bully pulpit for seven years during the Reagan and George H.W. Bush administrations and who surprised both ends of the political spectrum by setting aside his conservative personal views on issues such as homosexuality and abortion to keep his focus sharply medical, died Monday at his home in Hanover, N.H. He was 96.


An assistant at Koop's Dartmouth College institute, Susan Wills, confirmed his death but didn't disclose its cause.


Dr. Richard Carmona, who served as surgeon general a decade ago under President George W. Bush, said Koop was a mentor to him and preached the importance of staying true to the science even if it made politicians uncomfortable.


"He set the bar high for all who followed in his footsteps," Carmona said.


Although the surgeon general has no real authority to set government policy, Koop described himself as "the health conscience of the country" and said modestly just before leaving his post that "my only influence was through moral suasion."


A former pipe smoker, Koop carried out a crusade to end smoking in the United States; his goal had been to do so by 2000. He said cigarettes were as addictive as heroin and cocaine. And he shocked his conservative supporters when he endorsed condoms and sex education to stop the spread of AIDS.


Chris Collins, a vice president of amFAR, the Foundation for AIDS Research, said many people don't realize what an important role Koop played in the beginning of the AIDS epidemic.


"At the time, he really changed the national conversation, and he showed real courage in pursuing the duties of his job," Collins said.


Even after leaving office, Koop continued to promote public health causes, from preventing childhood accidents to better training for doctors.


"I will use the written word, the spoken word and whatever I can in the electronic media to deliver health messages to this country as long as people will listen," he promised.


In 1996, he rapped Republican presidential hopeful Bob Dole for suggesting that tobacco was not invariably addictive, saying Dole's comments "either exposed his abysmal lack of knowledge of nicotine addiction or his blind support of the tobacco industry."


Although Koop eventually won wide respect with his blend of old-fashioned values, pragmatism and empathy, his nomination met staunch opposition.


Foes noted that Koop traveled the country in 1979 and 1980 giving speeches that predicted a progression "from liberalized abortion to infanticide to passive euthanasia to active euthanasia, indeed to the very beginnings of the political climate that led to Auschwitz, Dachau and Belsen."


But Koop, a devout Presbyterian, was confirmed after he told a Senate panel he would not use the surgeon general's post to promote his religious ideology. He kept his word.


In 1986, he issued a frank report on AIDS, urging the use of condoms for "safe sex" and advocating sex education as early as third grade.


He also maneuvered around uncooperative Reagan administration officials in 1988 to send an educational AIDS pamphlet to more than 100 million U.S. households, the largest public health mailing ever.


Koop personally opposed homosexuality and believed sex should be saved for marriage. But he insisted that Americans, especially young people, must not die because they were deprived of explicit information about how HIV was transmitted.


Koop further angered conservatives by refusing to issue a report requested by the Reagan White House, saying he could not find enough scientific evidence to determine whether abortion has harmful psychological effects on women.


Koop maintained his personal opposition to abortion, however. After he left office, he told medical students it violated their Hippocratic oath. In 2009, he wrote to Senate Majority Leader Harry Reid, urging that health care legislation include a provision to ensure doctors and medical students would not be forced to perform abortions. The letter briefly set off a security scare because it was hand delivered.


Koop served as chairman of the National Safe Kids Campaign and as an adviser to President Bill Clinton's health care reform plan.


At a congressional hearing in 2007, Koop spoke about political pressure on the surgeon general post. He said Reagan was pressed to fire him every day, but Reagan would not interfere.


Koop, worried that medicine had lost old-fashioned caring and personal relationships between doctors and patients, opened his institute at Dartmouth to teach medical students basic values and ethics. He also was a part-owner of a short-lived venture, drkoop.com, to provide consumer health care information via the Internet.


Koop was born in the New York City borough of Brooklyn, the only son of a Manhattan banker and the nephew of a doctor. He said by age 5 he knew he wanted to be a surgeon and at age 13 he practiced his skills on neighborhood cats.


He attended Dartmouth, where he received the nickname Chick, short for "chicken Koop." It stuck for life.


Koop received his medical degree at Cornell Medical College, choosing pediatric surgery because so few surgeons practiced it.


In 1938, he married Elizabeth Flanagan, the daughter of a Connecticut doctor. They had four children, one of whom died in a mountain climbing accident when he was 20.


Koop was appointed surgeon-in-chief at Children's Hospital in Philadelphia and served as a professor at the University of Pennsylvania School of Medicine.


He pioneered surgery on newborns and successfully separated three sets of conjoined twins. He won national acclaim by reconstructing the chest of a baby born with the heart outside the body.


Although raised as a Baptist, he was drawn to a Presbyterian church near the hospital, where he developed an abiding faith. He began praying at the bedside of his young patients — ignoring the snickers of some of his colleagues.


Koop's wife died in 2007, and he married Cora Hogue in 2010.


He was by far the best-known surgeon general and for decades afterward was still a recognized personality.


"I was walking down the street with him one time" about five years ago, recalled Dr. George Wohlreich, director of the College of Physicians of Philadelphia, a medical society with which Koop had longstanding ties. "People were yelling out, 'There goes Dr. Koop!' You'd have thought he was a rock star."


___


Ring reported from Montpelier, Vt. Cass reported from Washington. AP Medical Writers Lauran Neergaard in Washington and Mike Stobbe in New York contributed to this report.


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'93 WTC Bombing Crushed Lives, Not Memories












Edward Smith remembers vividly the call from the morgue 20 years ago today, that his pregnant wife had died in the World Trade Center bombing hours before she was supposed to start her maternity leave.


"It seems like kind of yesterday sometimes," he told ABC News, "but it seems like a long time ago, too."


Today marks the 20th anniversary of the 1993 WTC bombing, which was overshadowed eight years later by the 9/11 attacks. Six people died and about 1,000 were injured after terrorists detonated a truck bomb in the parking garage of the World Trade Center's North Tower Feb. 26, 1993.


Four of the six killed -- Robert Kirkpatrick, 61, Stephen A. Knapp, 47, William Macko, 57, and Monica Rodriguez Smith, 35 -- were employees of the Port Authority of New York and New Jersey, which owned the buildings. John DiGiovanni, 45, a dental-supply salesman visiting the World Trade Center, and Wilfredo Mercado, 37, a purchasing agent for Windows on the World restaurant, also died.


To commemorate the event, ABC News spoke with several people affected by the bombing -- a widower, a former Port Authority executive director, a plaintiff's attorney and a jury foreman -- to illustrate how the bombing resonates 20 years later.


EDWARD SMITH: Husband of pregnant Monica Rodriguez Smith, who died in the bombing.



Edward and Monica Rodriguez Smith on their wedding day, Aug. 31, 1990.










September 11: World Trade Center Time Lapse Watch Video







Edward Smith, 50, remembers where he was Feb. 26, 1993, when he heard the news.


"I was up in Boston, and I had heard there was a fire at the [World] Trade Center," Smith told ABCNews.com last week. "I turned the TV on, and eventually heard there was an actual bombing, and drove down as quickly as I could."


Smith said he couldn't reach his wife, Monica Rodriguez Smith, a secretary for a mechanical supervisor for the Port Authority of New York and New Jersey who worked in the World Trade Center, for "hours and hours."


He said he didn't hear from her or anything about her until he contacted the New York City morgue at 11:30 p.m. that evening.


"Obviously, I was informed that I should come there," Smith said.


He and his wife had been married for a little more than three years, he said, and Feb. 26 was to be Monica's last day of work before she went on maternity leave. They were expecting their first child, a boy, to be named Eddie.


"She had worked at the Port Authority for at least 12 years," Smith said. "And she had just gotten an award for never having a sick day. That was a little thing you remember."


Smith said the World Trade Center was where he met his wife the first time.


"I was a sales guy, selling to the Port Authority, and she was the admin [secretary] for one of the guys," he said. "For the first two years, she wouldn't go out with me.


"She said, 'Do you know how many knuckleheads come in here and ask me out? What makes you different?'" Smith recalled Monica's saying.


It took her two years to go out on a date with him, Smith said.


The couple tied the knot Aug. 31, 1990. Smith said he even bought the house in which he grew up on Long Island to raise their family.


But after the events of Feb. 26, 1993, Smith said, it was hard to stay in New York. Shortly after the bombing, he moved to Arizona and later to California.


"There were too many reminders, it was too much," he said.


Smith now resides in Phoenix, but makes a trip to New York every year for the memorial in February.
This year is no exception.


"It's kind of an interesting feeling," he said of the 20-year anniversary. "It seems like kind of yesterday sometimes, but it seems like a long time ago, too."






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Italy parties seek way out of election stalemate


ROME (Reuters) - Italy's stunned political parties looked for a way forward on Tuesday after an election that gave none of them a parliamentary majority, posing the threat of prolonged instability and European financial crisis.


The results, notably by the dramatic surge of the anti-establishment 5-Star Movement of comic Beppe Grillo, left the center-left bloc with a majority in the lower house but without the numbers to control the powerful upper chamber, the Senate.


Financial markets fell sharply at the prospect of a stalemate that reawakened memories of the crisis that pushed Italy's borrowing costs toward unsustainably high levels and brought the euro zone to the brink of collapse in 2011.


"The winner is: Ingovernability," ran the headline in Rome newspaper Il Messaggero, reflecting the deadlock the country will have to confront in the next few weeks as sworn enemies are forced to work together to form a government.


Pier Luigi Bersani, head of the center-left Democratic Party (PD), has the difficult task of trying to agree a "grand coalition" with former prime minister Silvio Berlusconi, the man he blames for ruining Italy, or striking a deal with Grillo, a completely unknown quantity in conventional politics.


The alternative is new elections either immediately or within a few months, although both Berlusconi and Bersani have indicated that they want to avoid a return to the polls if possible: "Italy cannot be ungoverned and we have to reflect," Berlusconi said in an interview on his own television station.


For his part, Grillo, whose "non-party" movement won the most votes of any single party, has indicated that he believes the next government will last no more than six months.


"They won't be able to govern," he told reporters on Tuesday. "Whether I'm there or not, they won't be able govern."


He said he would work with anyone who supported his policy proposals, which range from anti-corruption measures to green-tinted energy measures but rejected suggestions of entering a formal coalition: "It's not time to talk of alliances... the system has already fallen," he said.


The election, a massive rejection of the austerity policies applied by Prime Minister Mario Monti with the backing of international leaders from U.S. President Barack Obama to German Chancellor Angela Merkel, caused consternation across Europe.


"This is a jump to nowhere that does not bode well either for Italy or Europe," said Spanish Foreign Minister Jose Manuel Garcia-Margallo.


In a sign of worry at the top over what effect the elections could have on the economy, Monti, whose austerity policies were repudiated by voters who shunned his centrist bloc, met the governor of the central bank, the economy minister and the European affairs minister to discuss the situation on Tuesday.


The former EU commissioner and his team of technocrats, who were brought in to govern when Berlusconi was consumed by crisis and scandal, will stay on until a new administration is formed.


UNTHINKABLE WITHOUT GRILLO


Projections for the Senate by the Italian Centre for Electoral Studies indicated that the center-left would have 121 seats, against 117 for the center-right alliance of Berlusconi's PDL and the regionalist Northern League. Grillo would take 54.


That leaves no party with the majority in a chamber which a government must control to pass legislation and opened up the prospect of previously inconceivable partnerships that will test the sometimes fragile internal unity of the main parties.


"The idea of a majority without Grillo is unthinkable. I don't know if anyone in the PD is considering it but I'm against it," said Matteo Orfini, a member of Bersani's PD secretariat.


"The idea of a PD-PDL government, even if it's backed by Monti, doesn't make any sense," he said.


Berlusconi, a media magnate whose campaigning all but wiped out Bersani's once commanding opinion poll lead, hinted in a telephone call to a morning television show that he would be open to a deal with the center-left - but not with Monti, the economics professor who replaced him 15 months ago.


"Italy must be governed," Berlusconi said, adding that he "must reflect" on a possible deal with the center-left. "Everyone must be prepared to make sacrifices," he said of the groups which now have a share of the legislature.


The Milan bourse was down almost 4 percent and the premium Italy pays over Germany to borrow on 10-year widened to a yield spread of 338 basis points, the highest since December 10 and more than 80 points above the level seen earlier on Monday.


At an auction of six-month Treasury bills, Italy's borrowing costs jumped by more than two thirds with the yield reaching 1.237 percent, the highest since October and compared to just 0.730 percent in a similar sale a month ago.


The euro dropped to an almost seven-week low against the dollar in Asia on fears of a revival of the euro zone crisis. It fell as far as $1.3042, its lowest since January 10.


"What is crucial now is that a stable functioning government can be built as swiftly as possible," said German Foreign Minister Guido Westerwelle. "This is not only in the interests of Italy but in the interests of all Europe."


However the view from some voters, weary of the mainstream parties, was unrepentant: "It's good," said Roger Manica, 28, a security guard in Rome, who voted for the center-left PD.


"Next time I'll vote 5-Star. I like that they are changing things, even if it means uncertainty. Uncertainty doesn't matter to me, for me what's important is a good person who gets things done," he said. "Look how well they've done."


A long recession and growing disillusionment with mainstream parties and tax-raising austerity fed the bitter public mood and contributed to the massive rejection of Monti, whose centrist coalition was relegated to the sidelines.


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.


But 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 that 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, who is currently on trial for having sex with an under-age prostitute.


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


For Italian business, with an illustrious history of export success, the election result brought dismay that there would be no quick change to what they see as a regulatory sclerosis that has kept the economy virtually stagnant for a decade.


"This is probably the worst possible scenario," said Francesco Divella, whose family began selling pasta under its eponymous brand in 1890 in the southern region of Puglia.


"We are very concerned about the uncertainty and apparent ungovernability," said Silvio Pietro Angori, chief executive of Pininfarina, which has designed Ferrari sportscars since 1950. "A company competing on the global markets like Pininfarina needs the support of a stable government that inspires trust."


One of the country's leading bankers summed up his personal reaction: "I'm in shock," he told Reuters. "What a mess!"


(Additional reporting by Barry Moody, Gavin Jones, Lisa Jucca, Steven Jewkes, Steve Scherer Writing by Philip Pullella and James Mackenzie; Editing by Alastair Macdonald)



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Rental market for private homes may soften: analyst






SINGAPORE: Landlords of private homes may see the rental market softening when higher property taxes kick in next year, as these investors grapple with higher holding costs.

Owning luxury or investment homes will incur higher property taxes starting January 2014.

For private homes not occupied by owners, new marginal property tax rates of 12 to 20 per cent will be levied in addition to the current 10 per cent.

Coupled with the growing number of vacant apartments, industry players say Singapore's rental market is likely to soften.

Colin Tan, research head at Chesterton Suntec International said: "With the taxes especially, on vacant properties, which means you cannot seek relief from the taxman, investors now have to be a bit more cautious in trusting what the agents or sellers are telling them. What the tax does is to increase holding costs for investors.

"Going forward, I see rentals could soften because even at today's statistics - end of last year - there have been 12,000 vacant apartments. Can you imagine under the new tax regime, the landlord will have to start to look for tenants. And that makes a big difference."

The top one per cent of owner-occupied homes, about 12,000 units, will pay more taxes. This is on top of the various stamp duties imposed from the seven rounds of cooling measures.

But experts say Singapore properties remain attractive long-term investments for foreign buyers.

Kelvin Tay, regional chief investment officer at Southern APAC, UBS, said: "The number of foreign buyers as a proportion of total buyers, has actually dropped to 7 percent. If you are talking about the very high-end properties, you are talking about competition from other top global cities like London, San Francisco, New York, and not just Singapore. So you have to compare the real returns from the perspective of all these jurisdictions. Then you got to think about the regulatory regimes, the taxes that are in place."

Edmund Leow, head of tax and wealth management at Baker & McKenzie.Wong & Leow said: "We have to look at income tax, property, capital gain tax, estate duty and all kinds of other taxes. On an overall basis, Singapore is still fairly attractive to other foreigners, most other countries are also introducing similar measures."

- CNA/xq



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Chopper scam: CBI names ex-IAF chief SP Tyagi as suspect

NEW DELHI: Armed with documents from Italy, CBI today named former Air Force Chief S P Tyagi in its preliminary enquiry (PE) into allegations of kickbacks in the Rs 3,600 crore VVIP chopper deal, the second former defence services chief to figure in a scam probe.

Besides the former IAF chief, 10 others including his cousins — Julie, Docsa and Sandeep Tyagi have also been named along with four companies in the PE, CBI sources said here.

CBI has registered the PE to probe allegations that some "middlemen have influenced the deal in favour" of the Italian company AgustaWestland for the supply of 12 AW-101 VVIP/VIP helicopters.

It is also learnt that parent company Finmeccanica paid a commission of seven million Euros (about Rs 50 crore) to the middlemen out of which huge sums were transferred to seven Indian nationals through Tunisia and Mauritius, the PE said.

The money was sent in the garb of engineering contracts with two Indian companies — IDS Infotech and Aeromatrix, it said.

This is the second instance when a former services chief figures in a CBI inquiry. Former Admiral Sushil Kumar was named in a CBI case to probe alleged kickbacks in the purchase of Barak missiles in early 2000.

The sources said suspected European middlemen Carlo Gerosa, Christian Michel and Guido Haschkhe, advocate Gautam Khaitan formerly associated with Aeromatrix and its CEO Praveen Bakshi, former Finmeccanica chairman Giuseppe Orsi, former AgustaWestland CEO Bruno Spagnolini have also been named.

Besides Finmeccanica and AgustaWestland, IDS Infotech and Aeromatrix also figure in the PE, they said.

The team of CBI officials, which returned from Italy with some documents from Finmeccanica and public prosecutor, found enough material in them to start its probe in the alleged payoffs of Rs 362 crore in the helicopter deal, they said.

All the suspects named by the CBI in its PE have denied allegations of receiving or giving kickbacks in the deal.

The sources said the they are likely to be called for questioning in connection with the case.

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