Shark fin-hungry China drives "chaotic" fishing in Indonesia






BENOA, Indonesia: Dozens of weary Indonesian fishermen sail into a busy port on the resort island of Bali celebrating their lucrative and controversial haul that is destined to end up at Chinese banquets.

The fishermen show off about 100 shark fins, already sliced off the carcasses, that are ready to be sold to middle-men and then most likely onwards to mainland China or cities around the world with big Chinese populations.

"We don't only look for sharks -- we mainly catch tuna and marlin -- but finding sharks is a good bonus. Their fins are worth a lot and the meat is easy to sell locally," said 33-year-old Warsito, who goes by one name.

Fishermen around Bali sell shark fins fresh off the boat for between US$15 and US$50, helping to satiate an ancient but fast-growing Chinese appetite for soup in which it is the main ingredient.

Shark fin soup was once a delicacy for China's elite, but shark populations have been decimated around the world as the country's 1.3 billion people have grown wealthier and incorporated it into their festivities.

While the Chinese government has banned shark fin soup from state banquets, and some five-star restaurants in Hong Kong and Singapore have dropped it from their menus, a burgeoning middle class in China continues to stoke demand.

Humans kill about 100 million sharks each year, mostly for their fins, according to the UN Food and Agriculture Organisation (FAO), and conservationists are warning that dozens of species are under threat.

Ninety percent of the world's sharks have disappeared over the past 100 years, mostly because of overfishing in countries such as Indonesia, the FAO said.

Conservationists also point out that "finning" -- slicing the valuable fins from live sharks -- is simply inhumane, as the rest of the animal is typically dumped back into the ocean where it bleeds slowly to death.

How to save the shark will be a top concern at the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) that begins in Bangkok, Thailand, on Sunday.

World authorities will look at restricting trade of certain shark species.

Restrictions would apply to manta rays and five shark species -- the porbeagle, scalloped hammerhead, great hammerhead, smooth hammerhead and oceanic whitetip -- and must be approved by two-thirds of member states.

However, experts say laws to restrict trade will mean little unless there are total bans on fishing, with greater efforts needed to control unregulated fisheries.

Indonesia is particularly important because it is the world's biggest fisher and exporter of sharks, with thousands of small-time fishermen such as those in Bali able to operate with impunity.

Management of the Indonesian industry has been "total chaos", Conservation International Indonesia marine programme director Tiene Gunawan said, with no national restrictions on the trade.

In 2010, the Indonesian government designed a national plan of action to better manage the shark fishing industry, but it has so far issued no regulations.

Rampant shark fishing has already affected ecosystems in Indonesian waters, Gunawan said, including the world-famous diving spot Raja Amapat in the region of Papua.

However recent efforts by the provincial authorities there -- emanating from a recognition that there is greater economic benefit in maintaining shark populations -- could be a model for the future.

After authorities in Raja Ampat noticed a surge in boats carrying hundreds of shark fins but no carcasses, the local government banned shark fishing in 2010.

Last week the ban was made into law, creating the country's only shark and manta ray sanctuary. It is also the first in the Coral Triangle, a massive region in Southeast Asia known as the "Amazon of the ocean".

"What they realised, and our studies support this, is that the value of a dead shark is much lower than if we keep it alive for tourism," Gunawan said.

-AFP/fl



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Movie studios target mobile apps for copyright infringement



Google Play app store.



(Credit:
Screenshot by Dara Kerr/CNET)


After targeting Web sites for copyright infringement for years, Hollywood is now setting its sights on mobile apps, according to Reuters.

Time Warner, Walt Disney, Sony, Viacom, and Twentieth Century Fox have all recently sent app "take down" notices to Google. Citing copyright infringement, these studios are demanding that the Web giant remove apps that use the likeness of characters in their movies or TV shows.

One of the offending apps is "Hobbit 3D Wallpaper HD," which has images from the popular movie, according to Reuters. Other apps are from movies like "Clash of the Titans," "Spiderman," and "Green Lantern."

The app market is a lucrative one. According to Reuters, it's worth $20 billion as of this year. Also, many of these apps get away without paying licensing fees.

"Smartphone apps that provide a direct link to infringing content have become a growing problem that needs to be addressed," Motion Picture Association of America's senior vice president for Internet content protection Marc Miller told Reuters. "Not only do these apps offer access to creative content that has been illegally copied, but they also pose risks to consumers from malware and often fail to provide viewers with the quality product they could often get through a growing number of legitimate sources."

According to Reuters, Google is complying with the studios' requests and is removing many of these apps from its Google Play app store. An Apple spokesperson wouldn't comment on take down notices for Reuters but did say that it reviews all apps before offering them in its App Store.

Over the past few years, Google has continually made more concessions to copyright owners, who have long demanded that it take steps to prevent copyright infringement. And, in August, it took action that was among the most significant antipiracy measures the company has ever adopted by penalizing sites that generated many complaints from copyright owners.

It's unclear if the Web giant has taken additional measures to curb copyright infringement on apps in Google Play.

CNET contacted Google and Apple for comment. We'll update the story when we get more information.

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Man charged in slaying of Miss. mayoral candidate

Updated 8:13 PM ET

JACKSON, Miss. A 22-year-old man was charged with murder Thursday in the death of a mayoral candidate in the Mississippi Delta.

The Coahoma County Sheriff's Department said in a news release that Lawrence Reed of Shelby was charged in the death of Marco McMillian. McMillian, 34, was a candidate for mayor of Clarksdale and was well-known in the community and beyond.

An investigation began Tuesday when a man crashed McMillian's SUV into another car on U.S. Highway 49 near the Coahoma and Tallahatchie county lines. The candidate wasn't in the car.

McMillian's body was found near the Mississippi River levee Wednesday morning between Sherard and Rena Lara, Coahoma County Coroner Scotty Meredith has said.

The body was sent for an autopsy, and the cause of death hasn't been made public.


"There's a lot of people upset about it," said Dennis Thomas, 33, who works at Abe's Barbeque.

"Why would somebody want to do something like that to somebody of that caliber? He was a highly respected person in town," Thomas said.

The Gay & Lesbian Victory Fund and Institute tweeted:

The sheriff's department has not released a possible motive for the crime.

Campaign spokesman Jarod Keith has said McMillian's campaign was noteworthy because he may have been the first openly gay man to be a viable candidate for public office in Mississippi.

McMillian, who was black, had forged ties while serving for four years as international executive director of the historically black Phi Beta Sigma Fraternity Inc. Photos on McMillian's website and Facebook page show him with a younger Barack Obama, former President Bill Clinton and with U.S. Rep. John Lewis, a Georgia Democrat.

McMillian was CEO of MWM & Associates, described on its website as a consulting firm for nonprofit organizations. In addition to his role at the fraternity from 2007 to 2011, McMillian had previously worked to raise funds as executive assistant to the president at Alabama A&M University and as assistant to the vice president at Jackson State University, according to his campaign.

A statement from the fraternity said he had secured the first federal contract to raise awareness about the impact of HIV and AIDS on communities of color. It noted that Ebony Magazine had recognized him in 2004 as one of the nation's "30 up-and-coming African Americans" under age 30.

Supporters say McMillian — a 1997 graduate of Clarksdale High School who graduated magna cum laude from Jackson State and held a master's degree from St. Mary's University in Minnesota in philanthropy and development — had big ideas for Clarksdale, a town of about 17,800 people.

The town is well known to blues fans as the home of the crossroads, where Robert Johnson is said to have sold his soul to the devil for skills with a guitar. Academy Award-winning actor and Mississippi native Morgan Freeman is part owner of the Ground Zero Blues Club in town. Clarksdale also is hounded by the poverty typical of the Mississippi Delta.

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Arias Recounts Each Moment of Stabbing, Slashing












Accused murderer Jodi Arias was forced to recount today each detail of how she killed her ex-boyfriend, Travis Alexander, including re-enacting how he allegedly tackled her when she shot him, leaving her crying in her hands on the witness stand.


During hours of dramatic cross-examination by prosecutor Juan Martinez, Arias bawled as he asked her about stabbing, slashing and shooting Alexander on June 4, 2008.


"You would acknowledge that Mr. Alexander was stabbed, and that the stabbing was with the knife, and it was after the shooting according to you, right?" Martinez said in rapid succession.


"Yes, I don't remember," Arias said, covering her face with her hands.


"Do you acknowledge the stab wounds, and we can count them together, were to the back of the head and the torso?" Martinez said, flashing a photo of Alexander's bloodied body onto the courtroom projector. " Do you want to take a look at the photo?"


Arias, burying her face in her hands and shutting her eyes on the stand, mumbled, "No."


Alexander's sisters, seated in the front row of the gallery, also looked away, crying.


Arias, 32, is accused of killing Alexander on June 4, 2008 out of jealousy. He was stabbed 27 times, his throat was slashed and he was shot in the head twice.


Arias claims she killed in self-defense after Alexander had become increasingly violent with her. She could face the death penalty if convicted.


Martinez also forced Arias to demonstrate in court today how she claims Alexander lunged at her "like a linebacker," causing her to fire the gun at him. The pair argued over how exactly Alexander was positioned, and Martinez pushed her to explain what she meant.


"He lunges at me like a linebacker," Arias said.


"Like a linebacker, what does that mean?" Martinez asked.








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Jodi Arias Maintains She 'Felt Like a Prostitute' Watch Video





"He was low. It was almost like he dove," she said, and trying to explain it further, added, "He was like a linebacker is the only way I can describe it unless I get up to act it out which I'd rather not do."


Catching Up on the Trial? Check Out ABC News' Jodi Arias Trial Coverage


Timeline of the Jodi Arias Trial


"Go ahead and do it," Martinez said. "Just stand. Go ahead."


Judge Sherry Stephens initially cleared the court as Arias demonstrated and then Martinez had her do it again after the jury and spectators were allowed back into the courtroom.


Standing and moving away from the witness box, Arias bent at the waist and spread out her arms and meekly made a slight lunging motion.


According to her testimony, Arias fired the gun as Alexander rushed at her, tackling her to the ground. She said she does not remember how she stabbed or slashed him.


It was a day of dramatics and anger as the prosecution pressed Arias on the details of the killing, with Martinez ending the afternoon of questioning by accusing Arias of lying throughout her direct testimony.


At one point Arias dissolved into tears, unable to answer pointed questions when shown a photo of Alexander's body lying crumpled in the bottom of the stall shower.


After a short pause, Martinez asked dryly, "Were you crying when you were shooting him?"


"I don't remember," Arias moaned.


"Were you crying when you stabbed him?" he said. "How about when you slashed his throat?"


"I don't remember, I don't know."


Martinez pressed on, "You're the one that did this right? And lied about all this right?"


"Yes."


"So then take a look at it," he barked.


Arias did not answer Martinez's question, crying into her hands instead. The judge, after a moment, called for the lunch recess to take a break from the testimony. Arias' attorney walked over and consoled her, telling her to "take a moment."


Until that moment, Arias had given vague answers to Martinez as he asked about the hours leading up to the murder. Arias, 32, has testified that she drove to Alexander's house on June 4, 2008, for a sexual liaison, that she had sex with Alexander and the pair took nude photos before an explosive confrontation ended with her killing him. She claims she doesn't remember stabbing Alexander, but insists it was in self-defense.


Martinez questioned her claims, asking exactly what they argued about and who encouraged whom to take the nude photos. He pointed out that Arias told Detective Esteban Flores of the Mesa police department that she had to convince Alexander to take the nude photos in the shower, but that she testified on the stand that Alexander had wanted them.






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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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Yvonne Lim: Making time for love






SINGAPORE: Her eyes glistened with tears when Singapore actress Yvonne Lim spoke about her character Liu Xixi in the upcoming drama "Marry Me", during a recent media event.

In the show, Liu, a successful gynecologist, winds up getting dumped by her boyfriend of 20 years, after she spent too much time on her career and neglected their relationship.

Lim revealed that she became emotional as her character's painful experiences in "Marry Me" reminded her of own.

"I have all these experiences before."

"I spend so much of my time on my work that I end up spending very little time dealing with matters of the heart," said Lim, explaining that she once broke up with a guy over the same issue.

"I remember I was very emotional when I read the script."

"I know how this character feels, why she struggles with her feelings, and why she is in pain, but keeps it bottled up inside."

Lim expressed that Liu is a character many women can identify with, because what happens to her in the show is something that also occurs in real life.

"She is so dedicated to her work that she forgot about her love life and kind of took it for granted.

"I've seen that happen to my girl friends. I have seen that happen to other people. I've heard stories like that before."

"When things drag on for too long, it (the relationship) gets stagnant. That's when things happen," said Lim earnestly.

Still, Lim said she prefers to take her time to slowly get to know someone instead of rushing things, and said she believes in "letting nature take its course".

"You have to find the right partner who is willing to be with you.

"If it happens, it happens. If not, that's the way it is," said Lim with a smile.

"I don't think about it much, though there is still this part of me that hopes for a fairytale ending."

"Marry Me", which also stars Koh Ya Hui and Jesseca Liu, airs every Wednesday, Thursday and Friday, 8pm on Channel U.

-CNA/ha



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Urine sample app lets users detect diseases with iPhones



The Uchek app lets users take urine samples with their smartphones.



(Credit:
Uchek)


Ever thought a smartphone could detect what was in your urine? Well, now it can. A new iPhone app developed by MIT entrepreneur Myshkin Ingawale, unveiled at the TED conference this week lets people take urine samples with their mobile device.

Obviously, pee and electronics don't mix, so this app instead uses the smartphone's camera to determine what's in urine. Dubbed Uchek, the app involves the user peeing into a cup, putting a color-coded urinalysis strip into the cup, taking of photo of the results, and then letting the app work its magic.

Uchek can detect up to 25 diseases, such as diabetes, urinary tract infections, and pre-clampsia. It can also measure the levels of glucose, proteins, ketones, and more. According to Wired, 1,200 sample tests showed that the app was more accurate than humans interpreting the color-coded strips.

Ingawale's goal is to help people become more aware of what health issues they might have or track their existing conditions. Ideally, it would be extra information to give to a doctor.

"The idea is to get people closer to their own information," Ingawale said at the TED conference, according to Wired. "I want people to better understand what is going on with their bodies."

Uchek is currently working its way through Apple's approval process and Ingawale is also working on an
Android app, according to Wired. The app will cost 99 cents and users can buy a packet of strips and a color-coded user guide for $20.

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Federal budget cuts free illegal immigrants from detention

(CBS News) -- The federal budget cuts expected to take effect this Friday are not simple. For example, hundreds of illegal immigrants are being released from detention because the administration says it can't afford to keep them.

Until recently, Fredi Alcazar was one of those detained. An illegal immigrant from Mexico, Alcazar spent a month in jail after a traffic stop near Atlanta last December. He now wears an electronic monitoring band on his ankle. The device lets immigration officials know where he is at all times.

(watch: Releasing illegal immigrants over budget cuts, below)


Alcazar was released unexpectedly in January.

"I was surprised they released me," Alcazar recalled. "They didn't say anything."

Officials at Immigration and Customs Enforcement (ICE) would not tell CBS exactly how many detainees they released ahead of for Friday's automatic budget cuts. They also declined to say where or when the releases occurred.

Those let go, like Fredi Alcazar, are required to wear electronic tracking devices, regularly call immigration officials or visit ICE offices.

"We started getting calls all of a sudden they had been released," said immigration advocate Dulce Guerrero. "We were very much in shock."

The early release of detainees was a surprise to Guerrero.

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"These folks are no criminals," she said. "These folks in there are moms, dads, students, community members who are in there for no license, for a broken tail light."

But some members of Congress are demanding ICE provide information on each detainee's case.

"When you release these people and expect them to show up at a court proceeding at a later date, we found before that 90 percent of them don't show up," said Congressman Michael McCaul, chair of the House Homeland Security Committee.


Besides Georgia, CBS did learn that many releases were in Arizona, California and Florida. Immigration advocates said that "supervised release" costs about $14 a day compared to about $160 a day to keep detainees in jail.
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Arias Prosecutor Too Combative, Experts Say












He has barked, yelled, been sarcastic and demanded answers from accused murderer Jodi Arias this week.


And in doing so, prosecutor Juan Martinez and his aggressive antics may be turning off the jury he is hoping to convince that Arias killed her ex-boyfriend Travis Alexander in June 2008, experts told ABCNews.com today.


"Martinez is his own worst enemy," Mel McDonald, a prominent Phoenix defense attorney and former judge, told ABC News. "He takes it to the point where it's ad nauseam. You have difficulty recognizing when he's driving the point home because he's always angry and pushy and pacing around the courtroom. He loses the effectiveness, rather than build it up."


"He's like a rabid dog and believes you've got to go to everybody's throat," he said.


"If they convict her and give her death, they do it in spite of Juan, not because of him," McDonald added.


Martinez's needling style was on display again today as he pestered Arias to admit that she willingly participated in kinky sex with Alexander, though she previously testified that she only succumbed to his erotic fantasies to please him.


Arias, now 32, and Alexander, who was 27 at the time of his death, dated for a year and continued to sleep together for another year following their break-up.


Arias drove to his house in Mesa, Ariz., in June 2008, had sex with him, they took nude photos together and she killed him in his shower. She claims it was in self-defense. If convicted, Arias could face the death penalty.








Jodi Arias, Prosecutor Butt Heads in Cross-Examination Watch Video









Jodi Arias Maintains She 'Felt Like a Prostitute' Watch Video









Jodi Arias Admits to Killing Man, Lying to Police Watch Video





Martinez also attempted to point out inconsistencies in her story of the killing, bickering with her over details about her journey from Yreka, Calif., to Mesa, Ariz., including why she borrowed gas cans from an ex-boyfriend, when she allegedly took naps and got lost while driving, and why she spontaneously decided to visit Alexander at his home in Mesa for a sexual liaison.


"I want to know what you're talking about," Arias said to Martinez at one point.


"No, I'm asking you," he yelled.


Later, he bellowed, "Am I asking you if you're telling the truth?"


"I don't know," Arias said, firing back at him. "Are you?"


During three days of cross examining Arias this week, Martinez has spent hours going back and forth with the defendant over word choice, her memory, and her answers to his questions.


"Everyone who takes witness stand for defense is an enemy," McDonald said. "He prides himself on being able to work by rarely referring to his notes, but what he's giving up in that is that there's so much time he wastes on stupid comments. A lot of what I've heard is utterly objectionable."


Martinez's behavior has spurred frequent objections of "witness badgering" from Arias' attorney Kirk Nurmi, who at one point Tuesday stood up in court and appealed to the judge to have a conference with all of the attorneys before questioning continued. Judge Sherry Stephens at one point admonished Martinez and Arias for speaking over one another.


Andy Hill, a former spokesperson for the Phoenix police department, and Steven Pitt, a forensic psychiatrist who has testified as an expert witness at many trials in the Phoenix area, both said that despite his aggressive style, Martinez would likely succeed in obtaining a guilty verdict.


"When it comes to cross examination, one size does not fit all," said Pitt. "But if you set aside the incessant sparring, what the prosecutor I believe is effectively doing is pointing out the various inconsistencies in the defendant's version of events."






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Italy parties seek way out of election stalemate


ROME (Reuters) - Italy's stunned political parties searched for a way forward on Tuesday after an inconclusive election gave none of them a parliamentary majority and threatened prolonged instability and a renewal of the European financial crisis.


The results, notably 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 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.


Ratings agency Standard & Poor's said on Tuesday that policy choices of the next Italian government would be crucial for the country's creditworthiness, underlining the need for a coalition that can agree on new reforms.


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 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.


German Finance Minister Wolfgang Schaeuble put a brave face on it, saying "that's democracy".


Spanish Foreign Minister Jose Manuel Garcia-Margallo was more pessimistic.


"This is a jump to nowhere that does not bode well either for Italy or Europe," he said.


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


Projections by the Italian center for Electoral Studies showed that the center-left will have 121 seats in the Senate, 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.


"THE BELL IS RINGING"


On a visit to Germany, President Giorgio Napolitano said he would not comment until the parties had consulted with each other and Bersani called on Berlusconi and Grillo to "assume their responsibilities" to ensure Italy could have a government.


He warned that the election showed austerity policies alone were no answer to the economic crisis and said the result carried implications beyond Italy.


"The bell is ringing for Europe as well," he said in his first public comments since the election.


He said he would present a limited number of reform proposals to parliament, focusing on jobs, institutional reform and European policy.


However forming an alliance may be long and difficult and could test the sometimes fragile internal unity of the mainstream 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.


For his part, Berlusconi won a boost when his Northern League ally Roberto Maroni won the election to become regional president of Lombardy, Italy's economic heartland and one of the richest and most productive areas of Europe.


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.


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, Monti 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.


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."


(Additional reporting by Barry Moody, Gavin Jones, Lisa Jucca, Steven Jewkes, Steve Scherer, Catherine Hornby and Massimiliano Di Giorgio, Annika Breidthardt in Berlin. Writing by Philip Pullella and James Mackenzie; Editing by Peter Graff)



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