U.S. evolves on same-sex marriage

STORY HIGHLIGHTS

• The president and the nation have shifted perspectives on same-sex marriage


• Supreme Court ruling on California's same-sex marriage ban a critical test


• Growing public support for gay marriage give proponents hope for change

Washington (CNN) -- The nation's growing acceptance of same-sex marriage has happened in slow and painstaking moves, eventually building into a momentum that is sweeping even the most unlikely of converts.

Even though he said in 2008 that he could only support civil unions for same-sex couples, President Barack Obama nonetheless enjoyed strong support among the gay community. He disappointed many with his conspicuously subdued first-term response to the same-sex marriage debate.

Last year, after Vice President Joe Biden announced his support, the president then said his position had evolved and he, too, supported same-sex marriage.

So it was no small matter when on Thursday the Obama administration formally expressed its support of same-sex marriage in a court brief weighing in on California's Proposition 8, which bans same-sex weddings. The administration's effort was matched by at least 100 high-profile Republicans — some of whom in elections past depended on gay marriage as a wedge issue guaranteed to rally the base — who signed onto a brief supporting gay couples to legally wed.

Obama on same-sex marriage: Everyone is equal

Then there are the polls that show that an increasing number of Americans now support same-sex marriage. These polls show that nearly half of the nation's Catholics and white, mainstream Protestants and more than half of the nation's women, liberals and political moderates all support same-sex marriage.

According to Pew Research Center polling, 48% of Americans support same-sex marriage with 43% opposed. Back in 2001, 57% opposed same-sex marriage while 35% supported it.

In last year's presidential election, same-sex marriage scarcely raised a ripple. That sea change is not lost on the president.

"The same evolution I've gone through is the same evolution the country as a whole has gone through," Obama told reporters on Friday.

Craig Rimmerman, professor of public policy and political science at Hobart and William Smith colleges says there is history at work here and the administration is wise to get on the right side.

"There is no doubt that President Obama's shifting position on Proposition 8 and same-sex marriage more broadly is due to his desire to situate himself on the right side of history with respect to the fight over same-sex marriage," said Rimmerman, author of "From Identity to Politics: The Lesbian and Gay Movements in the United States."

"I also think that broader changes in public opinion showing greater support for same-sex marriage, especially among young people, but in the country at large as well, has created a cultural context for Obama to alter his views."

For years, Obama had frustrated many in the gay community by not offering full-throated support of same-sex marriage. However, the president's revelation last year that conversations with his daughters and friends led him to change his mind gave many in that community hope.

Last year, the Obama administration criticized a measure in North Carolina that banned same-sex marriage and made civil unions illegal. The president took the same position on a similar Minnesota proposal.

Obama administration officials point to what they see as the administration's biggest accomplishment in the gay rights cause: repealing "don't ask, don't tell," the military's ban on openly gay and lesbian members serving in the forces.

Then there was the president's inaugural address which placed the gay community's struggle for equality alongside similar civil rights fights by women and African-Americans.

"Our journey is not complete until our gay brothers and sisters are treated like anyone else under the law, for if we are truly created equal, then surely the love we commit to one another must be equal, as well," Obama said in his address after being sworn in.

In offering its support and asserting in the brief that "prejudice may not be the basis for differential treatment under the law," the Obama administration is setting up a high stakes political and constitutional showdown at the U.S. Supreme Court over a fast-evolving and contentious issue.

The justices will hear California's Proposition 8 case in March. That case and another appeal over the federal Defense of Marriage Act will produce blockbuster rulings from the justices in coming months.

Beyond the legal wranglings there is a strong social and historic component, one that has helped open the way for the administration to push what could prove to be a social issue that defines Obama's second term legacy, Rimmerman said.

The nation is redefining itself on this issue, as well.

Pew survey: Changing attitudes on gay marriage

The changes are due, in part, to generational shifts. Younger people show a higher level of support than their older peers, according to Pew polling "Millennials are almost twice as likely as the Silent Generation to support same-sex marriage."

"As people have grown up with people having the right to marry the generational momentum has been very, very strong," said Evan Wolfson, president of Freedom to Marry, a gay rights organization.

That is not to say that there isn't still opposition.

Pew polling found that most Republicans and conservatives remain opposed to same-sex marriage. In 2001, 21% of Republicans were supportive; in 2012 that number nudged slightly to 25%.

Conservative groups expressed dismay at the administration's same-sex marriage support.

"President Obama, who was against same-sex 'marriage' before he was for it, and his administration, which said the Defense of Marriage Act was constitutional before they said it was unconstitutional, has now flip-flopped again on the issue of same-sex 'marriage,' putting allegiance to extreme liberal social policies ahead of constitutional principle," Family Research Council President Tony Perkins said in a statement.

But there are signs of movement even among some high profile Republican leaders

Top Republicans sign brief supporting same-sex marriage

The Republican-penned friend of the court brief, which is designed to influence conservative justices on the high court, includes a number of top officials from the George W. Bush administration, Mitt Romney's former campaign manager and former GOP presidential candidate Jon Huntsman.

It is also at odds with the Republican Party's platform, which opposes same-sex marriage and defines marriage as a union between a man and a woman.

Still, with White House and high-profile Republican support, legal and legislative victories in a number of states and polls that show an increasing number of Americans support same sex-marriage, proponents feel that the winds of history are with them.

"What we've seen is accelerating and irrefutable momentum as Americans have come to understand who gay people are and why marriage matters," Wolfson said. "We now have a solid national majority and growing support across every demographic. We have leaders across the spectrum, including Republicans, all saying it's time to end marriage discrimination."

CNN's Peter Hamby, Ashley Killough and Bill Mears contributed to this report.

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Rescuers end effort to find body of man presumed dead in sinkhole

SEFFNER, Florida -- Florida rescue workers have ended their efforts to recover the body of a man who disappeared into a sinkhole that swallowed his bedroom while he slept in a suburban Tampa home, and the house will be demolished, a public safety official said on Saturday.

Jeff Bush, 36, who is presumed dead, was asleep when the other five members of the household who were getting ready for bed on Thursday night heard a loud crash and Jeff screaming.

Authorities have not detected any signs of life after lowering listening devices and cameras into the hole.

"Our data has come back, and there is absolutely no way we can do any kind of recovery without endangering lives of workers," said Hillsborough County Fire Rescue spokeswoman Jessica Dam.

The sinkhole also has compromised the house next door, officials said Saturday.

Officials planned to let family members, accompanied by firefighters, into the threatened  home for about 20 minutes to gather some  belongings, Hillsborough County Fire Rescue spokesman Ronnie Rivera told reporters Saturday.

She said demolition of the home would begin early on Sunday.

Bush's body hadn’t been removed by Saturday afternoon and the ground near the home was still "very, very unsafe," Rivera said at a televised press conference Saturday.

"At this time we did some testing and we determined that the house right next to the house that’s actually damaged is also compromised by the sinkhole," Rivera said.

Jeff's brother, 35-year-old Jeremy Bush, jumped into the hole and furiously kept digging to find his brother.

"I really don't think they are going to be able to find him," Jeremy said on Saturday. He "will be there forever."

A small memorial of balloons and flowers for his brother had formed near the house on Saturday morning.

"I thank the Lord for not taking my daughter and the rest of my family," he said.

Jeremy himself had to be rescued from the sinkhole by the first responder to the emergency call, Douglas Duvall of the Hillsborough County Sheriff's Office. When Duvall entered Jeff Bush's bedroom, all he saw was a widening chasm but no sign of Jeff.

"The hole took the entire bedroom," said Duvall. "You could see the bed frame, the dresser, everything was sinking," he said.

Norman Wicker, 48, the father of Jeremy's fiancee who also lived in the house, ran to get a flashlight and shovel.

"It sounded like a car ran into the back of the house," Wicker said.

"There is a very large, very fluid mass underneath this house rendering the entire house and the entire lot dangerous and unsafe," Bill Bracken, the head of an engineering company assisting fire and rescue officials, told the news conference late on Friday.

"We are still trying to determine the extent and nature of what's down there so we can best determine how to approach it and how to extricate," Bracken said.

After suspending the search overnight, it resumed at daylight on Saturday, with engineering consultants trying to determine the extent of the collapse so that a perimeter boundary can be established for setting up heavy equipment for future excavation.

Several nearby homes were evacuated in case the 30-foot wide sinkhole got larger but officials said Friday it only appeared to be getting deeper. Soil samples showed that the sinkhole has compromised the ground underneath a home next door, engineers said Saturday.

The residents of that house were allowed 20 minutes in their home on Saturday to gather belongings. Firefighters and residents formed an assembly line to move items out of the house into SUVs and trucks.

Rescue officials said that in addition to soil samples, they were focusing on engineering analysis, ground penetration radar and other techniques to determine the extent of the ongoing collapse. Listening devices were being used to detect any evidence of life although Bush was presumed dead.

The Bush brothers worked together as landscapers, according to Leland Wicker, 48, one of the other residents of the house.

The risk of sinkholes is common in Florida due to the state's porous geological bedrock, according to the Florida Department of Environmental Protection. As rainwater filters down into the ground, it dissolves the rock, causing erosion that can lead to underground caverns, which cause sinkholes when they collapse.

Reuters

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Chad says it killed Algeria hostage mastermind in Mali

N'DJAMENA (Reuters) - Chadian soldiers in Mali have killed Mokhtar Belmokhtar, the al Qaeda commander who masterminded a bloody hostage-taking at an Algerian gas plant in January, Chad's military said on Saturday.

The death of one of the world's most wanted jihadists would be a major blow to al Qaeda in the region and to Islamist rebels already forced to flee towns they had seized in northern Mali by an offensive by French and African troops.

"On Saturday, March 2, at noon, Chadian armed forces operating in northern Mali completely destroyed a terrorist base. ... The toll included several dead terrorists, including their leader Mokhtar Belmokhtar," Chad's armed forces said in a statement read on national television.

On Friday, Chad's president, Idriss Deby, said his soldiers had killed another al Qaeda commander, Adelhamid Abou Zeid, among 40 militants who died in an operation in the same area as Saturday's assault - Mali's Adrar des Ifoghas mountains near the Algerian border.

France - which has used jet strikes against the militants' mountain hideouts - has declined to confirm the killing of either Abou Zeid or Belmokhtar.

In Washington, an Obama administration said the White House could not confirm the killing of Belmokhtar.

Analysts said the death of two of al Qaeda's most feared commanders in the Sahara desert would mark a significant blow to Mali's Islamist rebellion.

"Both men have extensive knowledge of northern Mali and parts of the broader Sahel and deep social and other connections in northern Mali, and the death of both in such a short amount of time will likely have an impact on militant operations," said Andrew Lebovich, a Dakar-based analyst who follows al Qaeda in the Islamic Maghreb (AQIM).

Anne Giudicelli, managing director of security consultancy Terrorisc, said the al Qaeda commanders' deaths - if confirmed - would temporarily disrupt the Islamist rebel network but would also raise concern over the fate of seven French hostages believed to be held by Islamists in northern Mali.

Chad is one of several African nations that have contributed forces to a French-led military intervention in Mali aimed at ridding its vast northern desert of Islamist rebels who seized the area nearly a year ago following a coup in the capital.

Western and African countries are worried that al Qaeda could use the zone to launch international attacks and strengthen ties with African Islamist groups like al Shabaab in Somalia and Boko Haram in Nigeria.

'MARLBORO MAN'

Belmokhtar, 40, who lost an eye while fighting in Afghanistan in the 1990s, claimed responsibility for the seizure of dozens of foreign hostages at the In Amenas gas plant in Algeria in January in which more than 60 people were killed.

That attack put Algeria back on the map of global jihad, 20 years after its civil war, a bloody Islamist struggle for power. It also burnished Belmokhtar's jihadi credentials by showing that al Qaeda remained a potent threat to Western interests despite U.S. forces killing Osama bin Laden in Pakistan in 2011.

Before In Amenas, some intelligence experts had assumed Algerian-born Belmokhtar had drifted away from jihad in favor of kidnapping and smuggling weapons and cigarettes in the Sahara where he earned the nickname "Marlboro Man".

In a rare interview with a Mauritanian news service in late 2011, Belmokhtar paid homage to bin Laden and his successor, Ayman al-Zawahri. He cited al Qaeda's traditional global preoccupations, including Iraq, Afghanistan and the fate of the Palestinians, and stressed the need to "attack Western and Jewish economic and military interests".

He shared command of field operations for AQIM - al Qaeda's North African franchise - with Abou Zeid, although there was talk the two did not get along and were competing for power.

A former smuggler turned jihadi, Algerian-born Abou Zeid imposed a violent form of sharia, Islamic law, in the ancient desert town of Timbuktu, including amputations and the destruction of ancient Sufi shrines.

Robert Fowler, a former Canadian diplomat held hostage by Belmokhtar from 2008 to 2009, told Reuters, "While I cannot consider reports of the death of both Abou Zeid and Mokhtar Belmokhtar as anything but good news ... I must temper my enthusiasm by the fact that this is by no means the first time Belmokhtar's death has been reported."

President Francois Hollande said on Friday that the assault to retake Mali's vast desert north from AQIM and other Islamist rebels that began on January 11 was in its final stage and so could not confirm Abou Zeid's death.

A U.S. official and a Western diplomat said, however, the reports about Abou Zeid's death appeared to be credible.

U.S. Representative Ed Royce, Republican chairman of the House Foreign Affairs Committee, said the killing of Belmokhtar "would be a hard blow to the collection of jihadists operating across the region that are targeting American diplomats and energy workers."

Washington has said it believes Islamists operating in Mali were involved in the killing of the U.S. ambassador in Libya's eastern city of Benghazi in September.

After its success in dislodging al Qaeda fighters from northern Mali's towns, France and its African allies have faced a mounting wave of suicide bombings and guerrilla-style raids by Islamists in northern Malian towns.

U.N. Secretary-General Ban Ki-moon said on Friday that a U.N. peacekeeping force to replace French troops in Mali should be discussed as soon as possible.

Chad was among the quickest to respond to Mali's appeals for help alongside the French, rushing in hundreds of troops experienced in desert warfare, led by Deby's son, General Mahamat Deby.

The country's president may be hoping to polish his regional and international credentials by assisting in this war, while bolstering his own position in power in Chad, which has been threatened in the past by eastern neighbor Sudan.

(Additional reporting by John Irish and David Lewis in Dakar, Gus Trompiz in Paris, and Mark Hosenball and Mark Felsenthal in Washington; Writing by Richard Valdmanis; Editing by Robin Pomeroy and Peter Cooney)

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With record highs in sight, stocks face roadblocks

NEW YORK (Reuters) - If Wall Street needs to climb a wall of worry, it will have plenty of opportunity next week.

Major U.S. stock indexes will make another attempt at reaching all-time records, but the fitful pace that has dominated trading is likely to continue. Next Friday's unemployment report and the hefty spending cuts that look like they about to take effect will be at the forefront.

The importance of whether equities can reach and sustain those highs is more than Wall Street's usual fixation on numbers with psychological significance. Breaking through to uncharted territory is seen as a test of investors' faith in the rally.

"It's very significant," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

"The thinking is, there's just not enough there for an extended bull run," he said. "If we do break through (record highs), then maybe the charts and price action are telling us there's something better ahead."

Flare-ups in the euro zone's sovereign debt crisis and next Friday's report on the U.S. labor market could jostle the market, though U.S. job indicators have generally been trending in a positive direction.

Small- and mid-cap stocks hit lifetime highs in February. Now the Dow Jones industrial average <.dji> and the S&P 500 <.spx> are racing each other to the top. The Dow, made up of 30 stocks, is about 75 points - less than 1 percent - away from its record close of 14,164.53, which it hit on October 9, 2007. The broader S&P is still 3 percent away from its closing high of 1,565.15, also reached on October 9, 2007.

The advantage may be in the Dow's court. So far in 2013, it has gained 7.5 percent, beating the S&P 500 by about 1 percent.

THE RALLY AND THE REALITY CHECK

The Dow's relative strength owes much to its unique make-up and calculation, as well as to investors' recent preference for buying value stocks likely to generate steady reliable gains, rather than growth stocks.

But the more defensive stance illustrates how stock buyers are getting concerned about this year's rally. While investors don't want to miss out on gains, they're picking up companies that are less likely to decline as much as high-flying names - if a market correction comes.

The Russell Value Index <.rav> is up 7.6 percent for the year so far, outpacing the Russell Growth Index's <.rag> 5.7 percent rise. Within the realm of the S&P 500, the consumer staples sector led the market in February, gaining 3.1 percent.

There is some concern that growth-oriented names are being eclipsed by defensive bets, said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati.

"This isn't a be-all and end-all sell signal by any means, but we would feel much more comfortable if some of the more aggressive areas, like technology and small caps, would start to gain some leadership here," Detrick said.

Signs that investors are becoming concerned about the rally's pace is evident in the options market, where the ratio of put activity to call activity has recently shifted in favor of puts, which represent expectations for a stock to fall.

"We are seeing some put hedging in the financials, building up for the past month," said Henry Schwartz, president of options analytics firm Trade Alert in New York.

The put-to-call ratio representing an aggregate of about 562 financial stocks is 1:1, when normally, calls should be outnumbering puts.

Investors have no shortage of reasons to crave the relative safety of blue chips and defensive stocks. Although markets have mostly looked past uncertainty over Washington's plans to cut the deficit, fiscal policy negotiations still pose a risk to equities.

The $85 billion in spending cuts set to begin on Friday is expected to slow economic growth this year if policymakers do not reach a new deal. Markets so far have held firm despite the wrangling in Washington, but tangible economic effects could pinch stock prices going forward.

The International Monetary Fund warned that full implementation of the cuts would probably take at least 0.5 percentage point off U.S. growth this year.

EASY MONEY AND TEPID HIRING

Investors will also take in a round of economic data at a time when concerns are percolating that the market is being pushed up less by fundamentals and more by loose monetary policy around the world.

The main economic event will be Friday's non-farm payrolls report for February. The U.S. economy is expected to have added 160,000 jobs last month, only a tad higher than in January, in a sign the labor market is healing at a slow pace. The U.S. unemployment rate is forecast to hold steady at 7.9 percent.

While lackluster data has been a catalyst in the past for stock market gains as investors bet it would ensure continued stimulus from the Federal Reserve, that sentiment may be wearing thin.

Markets stumbled last week following worries that the Fed might wind down its quantitative easing program sooner than expected.

"It shows the underpinning of the market is being driven at this point by monetary policy," Hellwig said.

With investors questioning what is behind the rally, it will make a run to record highs even more significant, Hellwig added.

"There's smart people that are in the bull camp and the bear camp and the muddle-through camp," Hellwig said. "The fact that you can statistically, using historical evidence, make a case for going higher, lower, or staying the same makes this number very important this time around."

(Wall St Week Ahead runs every Friday. Comments or questions on this column can be emailed to: leah.schnurr(at)thomsonreuters.com)

(Reporting by Leah Schnurr; Additional reporting by Doris Frankel in Chicago; Editing by Jan Paschal)

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Heat top Grizzlies 98-91 for 13th straight win

MIAMI (AP) — LeBron James endured his worst shooting night of the season, and still delivered the biggest basket of the game.

That's how things are going these days for the Miami Heat.

Dwyane Wade scored 22 points and set up James for a critical 3-pointer in the final half-minute, and the Heat extended their winning streak to 13 games by beating the Memphis Grizzlies 98-91 on Friday night.

"I thought this was one of our better wins of the season," Heat coach Erik Spoelstra said. "It was tough. We had to work for everything. We had to find a different way to win, deal with frustration ... and then make some plays down the stretch."

On a night when he shot just 4 for 14, James finished two rebounds shy of a triple-double, with 18 points and 10 assists. Shane Battier scored 14, Chris Bosh added 13 and Ray Allen had 10 for Miami, which snapped Memphis' eight-game winning streak.

But down the stretch, James — who had 14 points, four rebounds and four assists in the fourth quarter alone — was simply too much to handle.

"He made the big shot and that's all that matters," said Memphis' Marc Gasol, who led all scorers with 24. "He wasn't having the usual (numbers) he normally gets. I think we did a good job. He took a shot like he's supposed to and made it so kudos, move on."

Gasol tied the game with a pair of free throws with 2:44 left, before the Heat scored the next five — and quickly — to build a bit of breathing room. Bosh had a three-point play, and Wade took off in transition for a slam that put Miami up 90-85.

Memphis wasn't done. Gasol made two more free throws, then scored off a dribble-drive with 42.5 seconds left to get the Grizzlies within 90-89.

But that was the last gasp.

On the next Miami possession, James hit a 3-pointer with 24 seconds remaining, and the Heat made free throws from there to close out the win.

"I've got confidence I'm going to knock it down, just like all the other ones I've missed," James said. "I had confidence in those too, but they just don't go down. That's how the ball goes sometimes. But I'm always confident in my next shot. D-Wade gave me a great pass and I was able to knock it down."

The Grizzlies got 14 points from Zach Randolph, who said he was bothered throughout after turning his left ankle on the game's first possession. Mike Conley added 14 for Memphis, which got 10 from Quincy Pondexter.

"I have no problem with the game," Grizzlies coach Lionel Hollins said. "We were right there. They just made a few more plays than we did down the stretch."

For the Heat, this week was filled with attention for things like pregame dunking exhibitions and their version of a "Harlem Shake" video — which generated more than 5 million views on YouTube in about 24 hours of being posted.

Then came a basketball game, the likes of which had not been seen in the NBA for almost 20 years.

According to STATS LLC, the most recent time before Friday that there was a game between two teams that were carrying at least 12- and eight-game winning streaks was Dec. 3, 1993, when Atlanta (which had won nine straight) beat Houston (which had won 15 straight).

In fact, the Heat-Grizzlies game was just the eighth in NBA history pitting two teams with active winning streaks of at least eight in a row.

Want more significance? Spoelstra and Hollins were announced earlier in the day as the Eastern and Western Conference coaches of the month, respectively. And news came just before tipoff that James was picked yet again as the East's player of the month, making him 4-for-4 in that department this season.

"Just a residual of team success," Spoelstra said.

Added Hollins: "I'm the head coach and I get the credit and I get the blame, but those guys have been playing extremely well ... coming together with all the turmoil and all the chaos that we've had."

So of course, in a game between the NBA's two hottest teams, the start was ice cold. The teams combined to miss 23 of their first 32 shots.

And for James, things were downright frigid.

After the best shooting month of his career — the three-time MVP made 64 percent of his shots in February, the best month of any NBA player with 200 attempts since Kareem Abdul-Jabbar shot 65 percent in March 1983 — James' run in March started in a decidedly different manner.

James made a 3-pointer on his first attempt of the night, then missed his next eight tries, and had just four points after three quarters.

A dunk with 9:19 left in regulation was just his second made field goal of the night, and he hit a runner midway through the fourth to reach double-digit scoring for the 475th straight regular-season game, going back to Jan. 6, 2007.

"You won't see that happening too many times," Wade said. "It was great that on a night where he didn't have it going offensively, he had trust in his guys and didn't force up 20-odd shots. He played to pass and he still was aggressive. We'll take it. We'll take it, him getting those numbers and us getting the win."

NOTES: The Heat had the blessing of team officials when they took a half-hour before practice Thursday to tape the "Harlem Shake" video in their locker room. "We don't need to be serious all the time," Bosh said. ... Battier has at least one 3-pointer in 14 straight games, the fourth-best such streak of his career. ... Miami is at New York on Sunday, facing a Knicks team that has already beaten the Heat twice — by 20 points each time. "Our guys will look forward to playing this game," Spoelstra said.

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U.S. evolves on same-sex marriage

STORY HIGHLIGHTS

• The president and the nation have shifted perspectives on same-sex marriage


• Supreme Court ruling on California's same-sex marriage ban a critical test


• Growing public support for gay marriage give proponents hope for change

Washington (CNN) -- The nation's growing acceptance of same-sex marriage has happened in slow and painstaking moves, eventually building into a momentum that is sweeping even the most unlikely of converts.

Even though he said in 2008 that he could only support civil unions for same-sex couples, President Barack Obama nonetheless enjoyed strong support among the gay community. He disappointed many with his conspicuously subdued first-term response to the same-sex marriage debate.

Last year, after Vice President Joe Biden announced his support, the president then said his position had evolved and he, too, supported same-sex marriage.

So it was no small matter when on Thursday the Obama administration formally expressed its support of same-sex marriage in a court brief weighing in on California's Proposition 8, which bans same-sex weddings. The administration's effort was matched by at least 100 high-profile Republicans — some of whom in elections past depended on gay marriage as a wedge issue guaranteed to rally the base — who signed onto a brief supporting gay couples to legally wed.

Obama on same-sex marriage: Everyone is equal

Then there are the polls that show that an increasing number of Americans now support same-sex marriage. These polls show that nearly half of the nation's Catholics and white, mainstream Protestants and more than half of the nation's women, liberals and political moderates all support same-sex marriage.

According to Pew Research Center polling, 48% of Americans support same-sex marriage with 43% opposed. Back in 2001, 57% opposed same-sex marriage while 35% supported it.

In last year's presidential election, same-sex marriage scarcely raised a ripple. That sea change is not lost on the president.

"The same evolution I've gone through is the same evolution the country as a whole has gone through," Obama told reporters on Friday.

Craig Rimmerman, professor of public policy and political science at Hobart and William Smith colleges says there is history at work here and the administration is wise to get on the right side.

"There is no doubt that President Obama's shifting position on Proposition 8 and same-sex marriage more broadly is due to his desire to situate himself on the right side of history with respect to the fight over same-sex marriage," said Rimmerman, author of "From Identity to Politics: The Lesbian and Gay Movements in the United States."

"I also think that broader changes in public opinion showing greater support for same-sex marriage, especially among young people, but in the country at large as well, has created a cultural context for Obama to alter his views."

For years, Obama had frustrated many in the gay community by not offering full-throated support of same-sex marriage. However, the president's revelation last year that conversations with his daughters and friends led him to change his mind gave many in that community hope.

Last year, the Obama administration criticized a measure in North Carolina that banned same-sex marriage and made civil unions illegal. The president took the same position on a similar Minnesota proposal.

Obama administration officials point to what they see as the administration's biggest accomplishment in the gay rights cause: repealing "don't ask, don't tell," the military's ban on openly gay and lesbian members serving in the forces.

Then there was the president's inaugural address which placed the gay community's struggle for equality alongside similar civil rights fights by women and African-Americans.

"Our journey is not complete until our gay brothers and sisters are treated like anyone else under the law, for if we are truly created equal, then surely the love we commit to one another must be equal, as well," Obama said in his address after being sworn in.

In offering its support and asserting in the brief that "prejudice may not be the basis for differential treatment under the law," the Obama administration is setting up a high stakes political and constitutional showdown at the U.S. Supreme Court over a fast-evolving and contentious issue.

The justices will hear California's Proposition 8 case in March. That case and another appeal over the federal Defense of Marriage Act will produce blockbuster rulings from the justices in coming months.

Beyond the legal wranglings there is a strong social and historic component, one that has helped open the way for the administration to push what could prove to be a social issue that defines Obama's second term legacy, Rimmerman said.

The nation is redefining itself on this issue, as well.

Pew survey: Changing attitudes on gay marriage

The changes are due, in part, to generational shifts. Younger people show a higher level of support than their older peers, according to Pew polling "Millennials are almost twice as likely as the Silent Generation to support same-sex marriage."

"As people have grown up with people having the right to marry the generational momentum has been very, very strong," said Evan Wolfson, president of Freedom to Marry, a gay rights organization.

That is not to say that there isn't still opposition.

Pew polling found that most Republicans and conservatives remain opposed to same-sex marriage. In 2001, 21% of Republicans were supportive; in 2012 that number nudged slightly to 25%.

Conservative groups expressed dismay at the administration's same-sex marriage support.

"President Obama, who was against same-sex 'marriage' before he was for it, and his administration, which said the Defense of Marriage Act was constitutional before they said it was unconstitutional, has now flip-flopped again on the issue of same-sex 'marriage,' putting allegiance to extreme liberal social policies ahead of constitutional principle," Family Research Council President Tony Perkins said in a statement.

But there are signs of movement even among some high profile Republican leaders

Top Republicans sign brief supporting same-sex marriage

The Republican-penned friend of the court brief, which is designed to influence conservative justices on the high court, includes a number of top officials from the George W. Bush administration, Mitt Romney's former campaign manager and former GOP presidential candidate Jon Huntsman.

It is also at odds with the Republican Party's platform, which opposes same-sex marriage and defines marriage as a union between a man and a woman.

Still, with White House and high-profile Republican support, legal and legislative victories in a number of states and polls that show an increasing number of Americans support same sex-marriage, proponents feel that the winds of history are with them.

"What we've seen is accelerating and irrefutable momentum as Americans have come to understand who gay people are and why marriage matters," Wolfson said. "We now have a solid national majority and growing support across every demographic. We have leaders across the spectrum, including Republicans, all saying it's time to end marriage discrimination."

CNN's Peter Hamby, Ashley Killough and Bill Mears contributed to this report.

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Redflex execs out as scandal grows in red light camera firm

The president, chief financial officer and top lawyer for Chicago's red light camera company resigned this week amid an escalating corruption scandal that has cost Redflex Traffic Systems Inc. its lucrative, decadelong relationship with the city.

The resignations came as Redflex said it was winding down a company-funded probe into allegations of an improper relationship between the company and the former city transportation manager who oversaw its contract until 2011, a relationship first disclosed by the Tribune in October. A longtime friend of that city manager was hired by Redflex for a high-paid consulting deal.

The company recently acknowledged it improperly paid for thousands of dollars in trips for the former city official, the latest in a series of controversial revelations that have shaken Redflex from its Phoenix headquarters to Australia, the home of parent company Redflex Holdings Ltd.

Mayor Rahm Emanuel's administration banned the company from competing for the upcoming speed camera contract and went further last month by announcing that Redflex would lose its red light contract when it expires in June. The Chicago program, with more than 380 cameras, has been the company's largest in North America and is worth about 13 percent of worldwide revenue for Redflex Holdings. Since 2003 it has generated about $100 million for Redflex and more than $300 million in ticket revenue for the city.

In an email addressed to all company employees, Redflex Holdings CEO and President Robert T. DeVincenzi announced the resignations of three top executives in Phoenix: Karen Finley, the company's longtime president and chief executive officer; Andrejs Bunkse, the general counsel; and Sean Nolen, the chief financial officer. Their exits follow those of the chairman of the board of Redflex Holdings, another Australian board member and the company's top sales executive who Redflex has blamed for much of its Chicago problems.

"Today's announcement of executive changes follows the conclusion of our investigation in Chicago and marks the dividing line between the past and where this company is headed," said DeVincenzi, who took over as CEO of the Phoenix company. "This day, and each day going forward, we intend to be a constructive force in our industry, promoting high ethical standards and serving the public interest."

The company also held town hall meetings in Arizona to unveil reforms, including new requirements to put all company employees through anti-bribery and anti-corruption training, hiring a new director of compliance to ensure that employees adhere to company policies and establishing a 24-hour whistle-blower hotline.

The resignations and a second consecutive halt to public trading of the company's stock are the latest in a string of events that followed Tribune reports last year regarding 2-year-old internal allegations of corruption in the Chicago contract that the company previously said were investigated and discounted.

The scandal now enveloping the company centers on its relationship to former Chicago transportation official John Bills, who retired in 2011 after overseeing the company's contract since it began in 2003.

A whistle-blower letter obtained by the Tribune said Bills received lavish vacations directly on the expense report of a company executive and raised questions about improper ties between Bills and a Redflex consultant who received more than $570,000 in company commissions.

Bills and the consultant, a longtime friend, have denied wrongdoing.

The company told the Tribune in October that its investigation into the 2010 letter found only one instance of an inadvertent expenditure for Bills, a two-day hotel stay at the Arizona Biltmore expensed by the executive. Redflex lawyer Bunkse told the newspaper that the company responded by sending the executive to "anti-bribery" training and overhauling company expense procedures.

But after additional Tribune reports, the company hired a former Chicago inspector general, David Hoffman, to conduct another investigation. Hoffman made an interim report of his findings to company board members this month. That report prompted the company officials to acknowledge a much deeper involvement with Bills, including thousands of dollars for trips to the Super Bowl and White Sox spring training over many years.

The chairman of the company's Australian board of directors resigned, trading on company stock was temporarily suspended and the company acknowledged that it is sharing information with law enforcement.

Trading was halted again this week pending more details about the company's latest actions.

dkidwell@tribune.com

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Why Syria war is everybody's problem

Syrians search for survivors and bodies after the Syrian regime attacked the city of Aleppo with missiles on February 23.

STORY HIGHLIGHTS

• Frida Ghitis: We are standing by as Syria rips itself apart, thinking it's not our problem


• Beyond the tragedy in human terms, she says, the war damages global stability


• Ghitis: Syria getting more and more radical, jeopardizing forces of democracy


• Ghitis: Peace counts on moderates, whom we must back with diplomacy, training arms

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) -- Last week, a huge explosion rocked the Syrian capital of Damascus, killing more than 50 people and injuring hundreds. The victims of the blast in a busy downtown street were mostly civilians, including schoolchildren. Each side in the Syrian civil war blamed the other.

In the northern city of Aleppo, about 58 people -- 36 of them children -- died in a missile attack last week. Washington condemned the regime of Bashar al-Assad; the world looked at the awful images and moved on.

Syria is ripping itself to pieces. The extent of human suffering is beyond comprehension. That alone should be reason enough to encourage a determined effort to bring this conflict to a quick resolution. But if humanitarian reasons were not enough, the international community -- including the U.S. and its allies -- should weigh the potential implications of allowing this calamity to continue.

Frida Ghitis

We've all heard the argument: It's not our problem. We're not the world's policeman. We would only make it worse.

This is not a plea to send American or European troops to fight in this conflict. Nobody wants that.

But before we allow this mostly hands-off approach to continue, we would do well to consider the potential toll of continuing with a failed policy, one that has focused in vain over the past two years searching for a diplomatic solution.

U. S. Secretary of State John Kerry has just announced that the U.S. will provide an additional $60 million in non-lethal assistance to the opposition. He has hinted that President Obama, after rejecting suggestions from the CIA and previous Secretary of State Hillary Clinton to arm Syrian rebels, might be ready to change course. And not a day too soon.

The war is taking longer than anyone expected. The longer it lasts, the more Syria is radicalized and the region is destabilized.

If you think the Syrian war is the concern of Syrians alone, think about other countries that have torn themselves apart over a long time. Consider Lebanon, Afghanistan or Somalia; each with unique circumstances, but with one thing in common: Their wars created enormous suffering at home, and the destructiveness eventually spilled beyond their borders. All of those wars triggered lengthy, costly refugee crises. They all spawned international terrorism and eventually direct international -- including U.S. -- intervention.

The uprising against al-Assad started two years ago in the spirit of what was then referred to -- without a hint of irony -- as the Arab Spring. Young Syrians marched, chanting for freedom and democracy. The ideals of equality, rule of law and human rights wafted in the air.

Al-Assad responded to peaceful protests with gunfire. Syrians started dying by the hundreds each day. Gradually the nonviolent protesters started fighting back. Members of the Syrian army started defecting.

The opposition's Free Syrian Army came together. Factions within the Syrian opposition took up arms and the political contest became a brutal civil war. The death toll has climbed to as many as 90,000, according to Kerry. About 2 million people have left their homes, and the killing continues with no end in sight.

In fairness to Washington, Europe and the rest of the international community, there were never easy choices in this war. Opposition leaders bickered, and their clashing views scared away would-be supporters. Western nations rejected the idea of arming the opposition, saying Syria already has too many weapons. They were also concerned about who would control the weaponry, including an existing arsenal of chemical and biological weapons, after al-Assad's fall.

These are all legitimate concerns. But inaction is producing the worst possible outcome.

The moderates, whose views most closely align with the West, are losing out to the better-armed Islamists and, especially, to the extremists. Moderates are losing the ideological debate and the battle for the future character of a Syria after al-Assad.

Radical Islamist groups have taken the lead. Young people are losing faith in moderation, lured by disciplined, devout extremists. Reporters on the ground have seen young democracy advocates turn into fervent supporters of dangerous groups such as the Nusra Front, which has scored impressive victories.

The U.S. State Department recently listed the Nusra Front, which has close ties to al Qaeda in Iraq and a strong anti-Western ideology, as a terrorist organization.

Meantime, countries bordering Syria are experiencing repercussions. And these are likely to become more dangerous.

Jordan, an important American ally, is struggling with a flood of refugees, as many as 10,000 each week since the start of the year. The government estimates 380,000 Syrians are in Jordan, a country whose government is under pressure from its own restive population and still dealing with huge refugee populations from other wars.

Turkey is also burdened with hundreds of thousands of refugees and occasional Syrian fire. Israel has warned about chemical weapons transfers from al-Assad to Hezbollah in Lebanon and may have already fired on a Syrian convoy attempting the move.

Lebanon, always perched precariously on the edge of crisis, lives with growing fears that Syria's war will enter its borders. Despite denials, there is evidence that Lebanon's Hezbollah, a close ally of al-Assad and of Iran, has joined the fighting on the side of the Syrian president. The Free Syrian Army has threatened to attack Hezbollah in Lebanon if it doesn't leave Syria.

The possible outcomes in Syria include the emergence of a failed state, stirring unrest throughout the region. If al-Assad wins, Syria will become an even more repressive country.

Al-Assad's survival would fortify Iran and Hezbollah and other anti-Western forces. If the extremists inside the opposition win, Syria could see factional fighting for many years, followed by anti-democratic, anti-Western policies.

The only good outcome is victory for the opposition's moderate forces. They may not be easy to identify with complete certainty. But to the extent that it is possible, these forces need Western support.

They need training, funding, careful arming and strong political and diplomatic backing. The people of Syria should know that support for human rights, democracy and pluralism will lead toward a peaceful, prosperous future.

Democratic nations should not avert their eyes from the killings in Syria which are, after all, a warning to the world.

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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Tax on pack of cigarettes sold in Chicago up $1 to $6.67

On the eve of a $1-per-pack Cook County cigarette tax increase, County Board President Toni Preckwinkle stood in the glow of X-rays showing damaged lungs, surrounded by some of Stroger Hospital's top pulmonary specialists as she discussed how smoking shortens people's lives.

The setting and talking points made clear the message Preckwinkle wanted to convey Thursday: This is a public health problem, one she plans to fight by giving smokers an incentive to quit and teens a reason not to start.

But the county's tax increase is more than just a campaign to protect people from emphysema and lung cancer. Preckwinkle is counting on $25.6 million this year from the move to help balance the budget. The history of cigarette tax increases suggests the county will be lucky to get that much in 2013 and should expect diminishing returns in the years ahead.

Smokes are a financial well that public officials have gone to repeatedly to shore up shaky finances at the local and state level. When the county tax increase takes effect Friday, a pack of cigarettes purchased in Chicago will come with $6.67 tacked on by the city, county and state. That's just behind New York City's nation-leading $6.86 in taxes per pack. It will also push the cost of a pack of cigarettes in Chicago to as much as $11.

Recent cigarette tax increases have had only a short-term benefit to the government bottom line. Some people quit, while others buy cigarettes online or outside the county or state.

When the county last raised the cigarette tax — by $1 per pack in 2006 — collections initially shot up by $46.5 million, hitting $203.7 million, county records show. But by 2009, the county collected $20.4 million less than it had in 2005.

Mayor Richard M. Daley bumped up the city of Chicago's share of the cigarette tax by 32 cents in 2005 and another 20 cents in 2006, to 68 cents per pack. He saw collections rise from $15.6 million in 2004 to $32.9 million in 2006, according to a city report. But city cigarette tax revenue fell to $28.4 million in 2007, and continued dropping to $18.7 million by 2011, records show.

At the state level, Quinn pushed through a $1-a-pack hike in June.

Before that, state lawmakers and Gov. George Ryan agreed on a 40-cent increase in 2002. Cigarette tax proceeds went up by more than $178 million in 2003, to $643.1 million, and rose to $729.2 million in 2004. The revenue then fell steadily to $549 million by 2010 before edging back up to $580 million last year, according to state records.

The county is preparing for the windfall from the $1 increase to be strong this year, then decline. County officials project that after bringing in $25.6 million for the remainder of this budget year, the increase will net about $29 million for 2014, $21 million in 2015, $15 million in 2016 and just $9 million in 2017.

Preckwinkle says that's OK with her.

"My hope would be that over the long run this is no longer a way in which governments look to raise money, because fewer and fewer people are smoking," she said. "So I would hope that we have the effect of reducing our revenue because more people quit."

The county could end up saving money as cigarette tax revenue falls because uninsured people with ailments related to smoking are such a heavy financial burden to the public hospital system, Preckwinkle said.

In the meantime, Preckwinkle pledged to hire more staff this year to crack down on stores selling untaxed packs and large-scale tobacco smuggling from surrounding states. "We anticipate that there may be some noncompliance, as there always is when you institute an increase like this," she said.

Preckwinkle also acknowledged that the higher tax rate will push some smokers into surrounding counties or Indiana to pick up their packs, but she predicted such cross-border runs will not last.

"While people may initially, when the prices rise, go to other states — Indiana, Wisconsin or wherever — over time that trek gets very tiresome and time-consuming, and they return to their former habits of buying their cigarettes nearby," Preckwinkle said.

But David Vite, president of the Illinois Retail Merchants Association, said he thinks the cigarette taxes in Cook County are now so high compared with surrounding areas that smokers will continue to make the longer drive, and Illinois stores near jurisdictions with lower taxes will struggle even more.

"You might see people return to their old patterns if we were talking about a slight disparity, say 25 cents a pack," Vite said. "But now we're talking about a difference of nearly $3 a pack compared to Indiana, almost $30 a carton. You're going to see guys working in factories saying, 'It's my week to make a run,' heading to Indiana and coming back with $1,500 worth of cigarettes for all their co-workers."

jebyrne@tribune.com

Twitter @_johnbyrne

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West to send Syrian rebels aid, not arms

ROME (Reuters) - Western powers pledged aid for Syrian rebels on Thursday but stopped short of offering them weapons, disappointing opponents of President Bashar al-Assad clamoring for more arms.

More than 70,000 Syrians have been killed in a fierce conflict that began with peaceful anti-Assad protests nearly two years ago.

Washington has given $385 million in humanitarian aid for Syria but U.S. President Barack Obama has so far refused to give arms, arguing it is difficult to prevent them from falling into the hands of militants who could use them on Western targets.

The United States said it would for the first time give non-lethal aid to the rebels and would more than double its support to Syria's civilian opposition, casting it as a way to bolster the rebels' popular support.

The help will include medical supplies, food for rebel fighters and $60 million to help the civil opposition provide basic services like security, education and sanitation.

U.S. Secretary of State John Kerry announced the new steps after a meeting of 11 mostly European and Arab nations within the "Friends of Syria" group.

The European Union, acting on a decision this month to send direct aid to the rebels, said it had amended sanctions on Syria to permit the supply of armored vehicles, non-lethal military equipment and technical aid, provided they were intended to protect civilians.

If the provision of non-lethal assistance goes smoothly, it could conceivably offer a model for providing weaponry should Western governments ultimately decide to do so.

The aid offered for now did not appear to entirely satisfy the Syrian National Council opposition, a fractious Cairo-based group that has struggled to gain traction inside Syria, especially among disparate rebel forces.

"Many sides ... focus (more) on the length of the rebel fighter's beard than they do on the blood of the children being killed," Syrian National Coalition President Moaz Alkhatib said at an appearance with Kerry and Italian Foreign Minister Giulio Terzi.

A rebel commander in Aleppo, Syria's second city left devastated by several months of heavy fighting, said the lack of arms was the main obstacle to victory for his forces.

"We hope ... that weapons will flow and things will change but we are not waiting for them - we are going ahead with our fighting plans on the ground," the commander, Abdel-Jabbar Oqaidi, told Reuters by Skype.

He estimated that four fifths of the city was now under rebel control and the insurgents had taken over Aleppo's historic Umayyad mosque and the Palace of Justice. The claim could not immediately be verified.

A picture posted on the Internet showed what activists said was a rebel fighter prostrate in prayer in the Umayyad mosque's courtyard, its blackened archways still bearing signs of a fire which damaged the 13th century complex last year.

The rebels were still fighting for control of three airports in the Aleppo region, Oqaidi said.

DISAPPOINTMENT

In what analysts described as a sign of disappointment at the West's reluctance to send arms, Syria's political opposition postponed talks to choose the leader of a provisional government, two opposition sources told Reuters in Beirut.

Opposition leaders hoped a Saturday meeting in Istanbul would elect a prime minister to operate in rebel-controlled areas of Syria, threatened by a slide into chaos as the conflict between Assad's forces and insurgents nears its second anniversary.

While one source said the meeting might happen later in the week, a second source said it had been put off because the three most likely candidates for prime minister had reservations about taking the role without more concrete international support.

"The opposition has been increasingly signaling that it is tired of waiting and no one serious will agree to be head of a government without real political and logistical support," said Syrian political commentator Hassan Bali, who lives in Germany.

Bali said the United States and other members of the core "Friends of Syria" nations appeared intent "on raising the ante against Assad but are not sure how."

A final communiqué said participants would "coordinate their efforts closely so as to best empower the Syrian people and support the Supreme Military Command of the (rebel) Free Syrian Army in its efforts to help them exercise self-defense".

Kerry said the United States would for the first time provide assistance - in the form of medical supplies and the standard U.S. military ration known as Meals Ready to Eat, or MREs - to the fighters.

A U.S. official told reporters it would give the aid only to carefully vetted fighters, adding that the United States was worried that "extremists" opposed to democracy, human rights and tolerance were gaining ground in the country.

"Those members of the opposition who support our shared values ... need to set an example of a Syria where daily life is governed neither by the brutality of the Assad regime nor by the agenda of al Qaeda affiliated extremists," the official said.

REBELS WANT ANTI-TANK, ANTI-AIRCRAFT WEAPONS

The continued U.S. refusal to send weapons may compound the frustration that prompted the coalition to say last week it would shun the Rome talks. It attended only under U.S. pressure.

Many in the coalition say Western reluctance to arm rebels only plays into the hands of Islamist militants now widely seen as the most effective forces in the struggle to topple Assad.

With fighting raging on largely sectarian lines, French President Francois Hollande said at a Moscow summit that new partners were needed to broker talks on ending the crisis, winning guarded support from Russian President Vladimir Putin.

"We think that this dialogue must find a new form so that it speaks to all parties," said Hollande, giving few details of his proposal.

Putin said Russia - one of Assad's staunchest allies - would look at Hollande's proposal, "which I think we could consider with all our partners and try to carry out."

Russia has said Assad's departure must not be a precondition for talks and a political solution, while the West has sided with Syria's opposition in demanding his removal from power.

Kerry's offer of medical aid and food rations fell far short of rebel demands for sophisticated anti-tank and anti-aircraft weapons to help turn the tables against Assad's mostly Russian-supplied forces.

It also stopped short of providing other forms of non-lethal assistance such as bullet-proof vests, armored personnel vehicles and military training to the insurgents.

Last week the European Union opened the way for direct aid to Syrian rebels, but did not lift an arms embargo on Syria.

Kerry said the U.S. role should not be judged in isolation but in the context of what other nations will do.

"What we are doing ... is part of a whole," he said. "I am absolutely confident ... that the totality of this effort is going to have an impact of the ability of the Syrian opposition to accomplish its goals."

(Additional reporting by Mariam Karouny; Writing by Alistair Lyon; Editing by Roger Atwood and Tom Pfeiffer)

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Risk assets rise on Fed stimulus vow, Italy debt sale

TOKYO (Reuters) - Asian shares, commodity currencies and oil rose on Thursday as sentiment improved after U.S. Federal Reserve Chairman Ben Bernanke reaffirmed his commitment to strong stimulus measures, while a smooth debt sale calmed nerves jangled by Italy's political deadlock.

European markets are seen extending gains for a second day, with financial spreadbetters predicting London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> would open as much as 0.6 percent higher. <.l><.eu/>

A 0.1 percent rise in U.S. stock futures also hinted at a firm Wall Street start. <.n/>

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was up 0.3 percent and was set for a monthly gain of 0.7 percent.

Australian shares <.axjo> soared 1.5 percent, Hong Kong shares <.hsi> added 1.2 percent and Indonesian stocks <.jkse> continued their bull run to hit another historic peak after closing on Wednesday at a record.

Japan's Nikkei stock average <.n225> climbed 1.3 percent as the yen softened. <.t/>

The yen was defensive, with Japanese Prime Minister Shinzo Abe nominating Asian Development Bank President Haruhiko Kuroda as Bank of Japan governor, and academic Kikuo Iwata as one of the two deputy governors. Both are seen by markets to support Abe's call for unconventional reflationary stimulus measures, and that view has underpinned yen selling.

Italy's inconclusive election last weekend raised fears that the euro zone's third-largest economy could abandon its fiscal reforms, but analysts and traders say they expect Rome to pursue a basic austerity path to pare down its huge debt, even if is at a more moderate pace, and that the European Central Bank will stand ready to provide funding support if needed.

The rally in equities and other risk assets showed the dimming appeal of safe-haven investments. A day after slumping nearly 1 percent on Wednesday, spot gold traded little changed around $1,597 an ounce and was headed for its longest run of monthly declines in more than 16 years.

"Gold's sentiment remains fickle, as it lacks a significant catalyst to propel the rally into the 13th year and people are more sensitive to even slightly bearish signs," said Chen Min, an analyst at Jinrui Futures in the southern Chinese city of Shenzhen.

Bernanke, speaking before Congress for a second day, downplayed signs of internal divisions, saying the policy of quantitative easing has the support of a "significant majority" of top central bank policymakers.

Uncertainty over an imminent U.S. fiscal tightening could dampen the positive mood, however, as President Barack Obama and Republican congressional leaders have not reached a deal to avoid the $85-billion in automatic "sequestration" spending cuts, due to start on Friday.

Regional data released on Thursday was mixed.

Australian business investment showed a surprise fall last quarter as firms outside the red-hot mining sector cut back, while estimates of future spending confirmed the long boom in resource investment was likely to end this year.

Japan's industrial output, on the other hand, rose for a second straight month in January, offering some evidence that the export-reliant economy may be emerging from a mild recession, taking strength from a pick-up in global demand and the weaker yen.

ITALY SURVIVES

Italy's borrowing costs rose to a four-month high on Wednesday at the first bond auction since this week's inconclusive election but solid demand from domestic investors eased fears that the political deadlock could destabilize Europe's second-biggest sovereign debt market.

"Indeed there is room for optimism -- if the Italian risks remain contained -- as signals of stabilization continue to emerge," Barclays Capital said in a note.

The euro inched up 0.1 percent to $1.3143, well above a seven-week low of $1.3018 on Tuesday.

Others were more cautious.

"While confidence is high, there are still risks present. Negative political news from Italy may provide headwinds, while the looming 1 March deadline for the U.S. sequester could trigger $85 billion of across-the-board budget cuts," said Miguel Audencial, a sales trader with Sydney-based CMC Markets.

The yen steadied around 92.24 against the dollar. The yen hit its lowest since May 2010 of 94.77 on Monday before the outcome of the Italian vote rattled financial markets and sent the yen soaring to 90.85 yen.

The yen eased 0.1 percent against the euro to 121.19 after jumping to 118.74 on Monday.

U.S. crude rose 0.3 percent to $93.02 a barrel while Brent rose 0.2 percent to $112.07.

(Additional reporting by Luke Pachymuthu and Rujun Shen in Singapore; Editing by Eric Meijer)

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Taiwan ebullient over Ang Lee's Oscar

STORY HIGHLIGHTS

• Ang Lee's name beamed on building in Taiwan after Oscar win


• Lee, born in Taiwan, won award for best director for "Life of Pi"


• Lee's win created excitement in Taiwan and China, both claimed him as their own


• Ryan: "In some ways it feels like 'Linsanity' all over again"

Editor's note: Andrew Ryan is a host and producer at Radio Taiwan International, a government-owned station that broadcasts in several languages and countries. He first came to Taiwan in 1996 as a Fulbright scholar and has spent the last 16 years as a translator and observer of politics and culture.

Taipei (CNN) -- It's not every territory in the world that puts an Oscar-winning director's name up in lights on a towering building. But that's just the sort of thing that happens in Taiwan -- and it did on Monday night after Ang Lee picked up his second "Best Director" Oscar, this time for "Life of Pi."

The moment wasn't just celebrated in grand statements, but in small scenes played out in front of televisions across Taiwan when his name was announced.

I was at a TV station in Taipei that was broadcasting live coverage of the Oscars, working with a team of translators that was creating the subtitles for the rebroadcast. When Lee's name was announced the office erupted in applause. Down the hallway, more cheering could be heard.

READ: Oscar winners: Analysis of who won

I couldn't help but think back to the Athens Games in 2004, when Chen Shih-hsin won Taiwan's first ever Olympic gold medal (under the team name "Chinese Taipei"). Even veteran news anchors shed tears when the young taekwondo star defeated her Cuban rival.

It would be reductive to suggest that these displays of patriotism are simply the response of a small country that just doesn't crank out that many Oscar winners or Olympic golds. It also speaks of a place that has been largely marginalized in the international community.

Today, Taiwan has just 23 official diplomatic allies -- mostly other marginalized nations, in Central America and Africa. That's because China still sees Taiwan as part of its territory more than 60 years after the Chinese Nationalists retreated to the island at the end of a Civil War against the Communists. The Nationalists -- or Kuomintang -- are now the ruling party in a democratic Taiwan, which is officially called the Republic of China (ROC) -- not to be confused with the People's Republic of China on the Mainland.

Having lost its seat at the United Nations to the PRC in 1971, the ROC found itself with a diminished voice in the international community. It turned to manufacturing and technology in the 1980s, spurring on what is now referred to as an "economic miracle." Today, with its economy struggling to move past the global economic downturn, Taiwan has added the arts, sports, and even baking to its repertoire.

READ: Oscars 2013: Hollywood gets political

What's striking about Lee's win is that it's not just people in Taiwan who were quick to claim him as one of their own. In China, the state-run Xinhua news agency referred to him as "Chinese-American." While Taiwanese media latched onto the portion of Lee's acceptance speech when he thanked Taiwan and the central city of Taichung where much of the movie was filmed, Xinhua's main story included Lee's line of thanks to the 3,000 people who worked on the film for "believing this story and sharing this incredible journey with me."

In some ways it feels like "Linsanity" all over again, when Taiwan and China both claimed basketball star Jeremy Lin as their own, leaving the international media struggling to chart the dangerous waters of identity politics to correctly describe him.

VIEW: Photos from the red carpet

A very small voice at the fringe of the discussion wonders why it's important for people to know that Lin's paternal grandmother lives in Taiwan and referred to him as "a real Taiwanese," or that Lee grew up in Tainan and still loves to visit his favorite noodle shop there. Others in Taiwan question why a nation's confidence should be based on its success in the international community.

When Ang Lee's name was announced, the office erupted in applause. Down the hallway, more cheering could be heard.
Andrew Ryan

With China looming to the north, now the world's second biggest economy and wielding an influence that's verging on "superpower" status, the metaphor of Jonah and the whale comes to mind. The Taiwanese electorate is sharply divided on how it feels about the way ties with China have warmed ever since President Ma Ying-jeou first took office in 2008. The benefits are obvious, considering China is Taiwan's largest trade partner, but some worry that it could lead to a loss in autonomy.

INTERACTIVE: Oscars by numbers

The Ma administration has been mindful of the nationalistic rhetoric of the opposition, and although the president was born in Hong Kong, he has referred to himself in the past as "Taiwanese as well as Chinese." Ma was also quick to congratulate Lee following the Oscars, and to urge others to follow in the director's footsteps and "work hard at promoting Taiwan to the world."

Lee is just one name on a growing list of national heroes that both the government and the private sector have celebrated in recent years for putting Taiwan on the map: people like fashion designer Jason Wu, who moved to Canada from Taiwan and has created garments for U.S. First Lady Michelle Obama; master baker Wu Pao-chun, who beat the French patissiers at their own competition -- Les Masters de la Boulangerie in 2010; Yani Tseng, the world's number one female golfer; and even the humble vegetable seller-turned-philanthropist Chen Shu-chu, who was selected by Time Magazine as one of its heroes of 2010.

So what are people saying when they embrace these heroes as Taiwanese? They are saying "Taiwan may be small and diplomatically isolated, but it deserves to have a voice in the international community." While Lee may not speak about politics and no longer creates movies about Taiwan, he does have a voice and people do listen. And that's worth spreading in lights across the world's second-tallest building.

Follow us on Twitter @CNNOpinion.

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The opinions expressed in this commentary are solely those of Andrew Ryan.

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Chicago archdiocese to close 5 schools in cost-cutting move

Budget cuts announced Wednesday by the Archdiocese of Chicago signal that the area's Roman Catholics are entering a period of austerity when there will be less money for their parishes and schools.

The cuts, which were officially announced as Cardinal Francis George and other leaders of the church gathered at the Vatican to select a new pope, include closing five schools, eliminating 75 positions at the archdiocese's headquarters and placing a moratorium on loans to parishes from the archdiocese bank for three years. Other changes include creating stricter guidelines for local parishes applying for subsidies and reducing the number of the agencies in the archdiocese.

George, who spoke publicly about the cuts when asked by reporters in Rome, said they are needed to address the archdiocese's chronic financial problems. The archdiocese has run deficits of more than $30 million annually over the last four years, including being $40 million in the red for the fiscal year ending in June 2012.

All told, the measures will save tens of millions of dollars over the next few years, officials said.

“The expenses have gone up, and the income is pretty well flat,” George said after a news conference in Rome about Pope Benedict XVI's last audience Wednesday in St. Peter's Square. “We tried to ride out the recession without making any changes — and we can't do that. We're giving more grants to parishes and schools that need more money. The budget is not balanced. Not just layoffs, but a lot of other things being done, other ways to use the resources we have.”

The archdiocese sold $150 million in bonds in 2012 that helped it get through a cash-flow problem, but ultimately that wasn't enough, George said. He hopes the cuts will enable the archdiocese to balance its budget in two years.

Although the cardinal's announcement made headlines, the archdiocese's financial situation has been no secret to its priests. Several clergymen said they knew the archdiocese had planned to scale back loans to parishes.

“We have already made adjustments,” said the Rev. Dennis Ziomek of St. Barbara Parish in Chicago's Bridgeport neighborhood. “We have to be responsible stewards with the money.”

In a letter posted on the archdiocese website, the cardinal thanked parishioners for their generosity and asked them to pray for the employees now out of a paycheck.

At the archdiocese's Pastoral Center headquarters on Wednesday, people funneled in and out of the building during their lunch breaks but declined comment on the layoffs. Before the announcement, staffers received memos asking them to report to their desks early Wednesday.

Of the 75 positions, 55 were full-time jobs. Sixty people were let go, while the remaining posts had been vacant. Those cuts are expected to save $11 million to $13 million annually by fiscal 2015, George wrote in his letter.

Employees who received pink slips will get job counseling, extended health benefits and generous severance packages.

“We're keeping up counseling for helping people find jobs, looking for places where they might look for jobs,” George said.

Along with the layoffs, the archdiocese will reduce the number of capital loans and grants it gives parishes, while creating “stricter criteria” for them to qualify for the financial assistance.

A Parish Transformation initiative in the works for at least two years will also try to save money by laying out measures to provide more financial stability, though the letter did not give details.

Those cuts are expected to save an additional $13 million to $15 million annually by fiscal 2015, the letter states.

By next year, the archdiocese will reduce its aid to Catholic schools by $10 million. It plans to give scholarships to children affected by the five school closings so they can attend nearby Catholic schools. Officials said low enrollment was a key factor for closing the schools: St. Gregory the Great High, St. Paul-Our Lady of Vilna Elementary and St. Helena of the Cross Elementary in Chicago, plus St. Bernardine in Forest Park and St. Kieran in Chicago Heights.

Now, Catholic schools will start relying on scholarships for student financial aid instead of grants from the archdiocese to make tuition affordable, Superintendent Sister Mary Paul McCaughey said.

She pointed to a new partnership with the Big Shoulders Fund, a charity supporting urban Catholic schools, that will help families pay for school with scholarships.

McCaughey did not expect tuition at other Catholic schools to immediately rise because grants from the archdiocese have been reduced. About two-thirds of schools already have posted their tuition rates for the upcoming school year, she added.

“Although things are challenged, I think (Chicago) is a Catholic community that's always supported its schools,” McCaughey said. “I think the support will be there.”

Outside of St. Bernardine Elementary in west suburban Forest Park, one of the schools that will close this summer, Maria Maxham said she was devastated when she heard last month that she'd have to send her children, one in second grade and the other in fourth grade, to a different school.

Maxham, who lives in Forest Park, said she is not sure the two will attend another local Catholic school because some lack what she thought was St. Bernardine's strength.

“There is so much diversity at St. Bernardine, and that's part of what makes it so fantastic,” Maxham said. “It was a special place and a second family for us.”

The school, which has been open since 1915, has about 100 students currently enrolled in its preschool-through-eighth-grade classrooms.

Administrators, teachers and parents were notified of the closing in January, when McCaughey led a meeting at the school and explained the large amount of money that the archdiocese needed to reduce from the schools budget, Principal Veronica Skelton Cash said.

One family left the school shortly after hearing the news, she added.

Cash, who joined the school in the fall, said there was much frustration among staff members afterward. Many believed they would have at least a few years to turn things around.

“I could see a lot of things changing for the better at this school,” Cash said. “The culture of the community is changing, and we were getting more and more inquiries about the school. There was momentum going forward.”

Current employees were given guidance on severance and benefits by the archdiocese's human resources officials, Cash said. Teachers without jobs will also be placed on a priority list for future employment with the archdiocese, she said.

“I'm incredibly disheartened,” said Daniel Kwarcinski, who hopes to find a job at another private school after teaching art for seven years at St. Bernardine. “There's a need for a school like this where we are at.”

In Rome, George said the decisions to let people go and reduce aid were not easy. But he reiterated that the archdiocese's financial situation drove the decision.

“We have to balance the budget, especially if it's precarious,” he said. “The growth being very slow means we can no longer ignore the kinds of deficit situations that have been imposed on us. We have to take action.”

Tribune reporter Manya A. Brachear reported from Rome, with Tribune reporters Bridget Doyle and Jennifer Delgado in Chicago.

mbrachear@tribune.com

bdoyle@tribune.com

jmdelgado@tribune.com

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Iran upbeat on nuclear talks, West still wary

ALMATY (Reuters) - Iran was upbeat on Wednesday after talks with world powers about its nuclear work ended with an agreement to meet again, but Western officials said it had yet to take concrete steps to ease their fears about its atomic ambitions.

Rapid progress was unlikely with Iran's presidential election, due in June, raising domestic political tensions, diplomats and analysts had said ahead of the February 26-27 meeting in the Kazakh city of Almaty, the first in eight months.

The United States, China, France, Russia, Britain and Germany offered modest sanctions relief in return for Iran curbing its most sensitive nuclear work but made clear that they expected no immediate breakthrough.

In an attempt to make their proposals more palatable to Iran, the six powers appeared to have softened previous demands somewhat, for example regarding their requirement that the Islamic state ship out its stockpile of higher-grade uranium.

Iran's chief nuclear negotiator Saeed Jalili said the powers had tried to "get closer to our viewpoint", which he said was positive.

In Paris, U.S. Secretary of State John Kerry commented that the talks had been "useful" and that a serious engagement by Iran could lead to a comprehensive deal in a decade-old dispute that has threatened to trigger a new Middle East war.

Iran's foreign minister said in Vienna he was "very confident" an agreement could be reached and Jalili, the chief negotiator, said he believed the Almaty meeting could be a "turning point".

However, one diplomat said Iranian officials at the negotiations appeared to be suggesting that they were opening new avenues, but it was not clear if this was really the case.

Iran expert Dina Esfandiary of the International Institute for Strategic Studies said: "Everyone is saying Iran was more positive and portrayed the talks as a win."

"I reckon the reason for that is that they are saving face internally while buying time with the West until after the elections," she said.

The two sides agreed to hold expert-level talks in Istanbul on March 18 to discuss the powers' proposals, and return to Almaty for political discussions on April 5-6, when Western diplomats made clear they wanted to see a substantive response from Iran.

"Iran knows what it needs to do, the president has made clear his determination to implement his policy that Iran will not have a nuclear weapon," Kerry said.

A senior U.S. official in Almaty said, "What we care about at the end is concrete results."

ISRAELI WARNING

Israel, assumed to be the Middle East's only nuclear-armed power, was watching the talks closely. It has strongly hinted it might attack Iran if diplomacy and sanctions fail to ensure that it cannot build a nuclear weapon. Iran denies any such aim.

Israeli Prime Minister Benjamin Netanyahu said economic sanctions were failing and urged the international community to threaten Iran with military action.

Western officials said the offer presented by the six powers included an easing of a ban on trade in gold and other precious metals, and a relaxation of an import embargo on Iranian petrochemical products. They gave no further details.

In exchange, a senior U.S. official said, Iran would among other things have to suspend uranium enrichment to a fissile concentration of 20 percent at its Fordow underground facility and "constrain the ability to quickly resume operations there".

The official did not describe what was being asked of Iran as a "shutdown" of the plant as Western diplomats had said in previous meetings with Iran last year.

Iran says it has a sovereign right to enrich uranium for peaceful purposes, and wants to fuel nuclear power plants so that it can export more oil.

But 20-percent purity is far higher than that needed for nuclear power, and rings alarm bells abroad because it is only a short technical step away from weapons-grade uranium. Iran says it produces higher-grade uranium to fuel a research reactor.

Iran's growing stockpile of 20-percent-enriched uranium is already more than half-way to a "red line" that Israel has made clear it would consider sufficient for a bomb.

In Vienna on Wednesday, a senior U.N. nuclear agency official told diplomats in a closed-door briefing that Iran was technically ready to sharply increase this higher-grade enrichment, two Western diplomats said.

"Iran can triple 20 percent production in the blink of an eye," one of the diplomats said.

The U.S. official in Almaty said the powers' latest proposal would "significantly restrict the accumulation of near-20-percent enriched uranium in Iran, while enabling the Iranians to produce sufficient fuel" for their Tehran medical reactor.

This appeared to be a softening of a previous demand that Iran ship out its stockpile of higher-grade enriched uranium, which it says it needs to produce medical isotopes.

Iran has often indicated that 20-percent enrichment could be up for negotiation if it received the fuel from abroad instead.

Jalili suggested Iran could discuss the issue, although he appeared to rule out shutting down Fordow. He said the powers had not made that specific demand.

The Iranian rial, which has lost more than half its foreign exchange value in the last year as sanctions bite, rose some 2 percent on Wednesday, currency tracking websites reported.

(Additional reporting by Fredrik Dahl and Yeganeh Torbati in Almaty, Georgina Prodhan in Vienna, Zahra Hosseinian in Zurich, Gabriela Baczynska in Moscow, Dan Williams in Jerusalem and Marcus George in Dubai; Writing by Timothy Heritage and Fredrik Dahl; Editing by Louise Ireland)

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