JPMorgan to slash 19,000 jobs by end-2014






NEW YORK: US banking giant JPMorgan Chase plans to axe up to 19,000 jobs by the end of 2014 as it seeks to rein in costs, the company said Tuesday in an investor presentation.

JPMorgan Chase intends the majority of the cuts -- between 13,000 to 15,000 -- in the mortgage banking division, where the company spent $9.1 billion in 2012.

Another 3,000 to 4,000 jobs will be eliminated in the non-mortgage areas of its consumer and community banking division.

JPMorgan Chase estimated its full-year expenses will drop by $3 billion in 2014 from the 2012 level as the company seeks corporate and investment bank cost synergies, according to the presentation.

JPMorgan shares were down 0.5 percent in morning trade amid an overall rising market.

The Wall Street bank reported earnings of $21.3 billion in 2012, up from $19 billion a year earlier, but revenue that slightly missed market expectations.

The jump in profits came despite an embarrassing $6.2 billion trading loss stemming from a London trader nicknamed the London "whale."

The trading losses led to several resignations and reassignments and resulted in a lower 2012 take-home pay for JPMorgan chief executive Jamie Dimon.

-AFP/ac



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Plug in a BeeWi Mobot to control your gadgets while you're out



BARCELONA, Spain--Time for a new meaning to 'plug and play': the BeeWi Mobot is a power plug that not only controls the gadgets in your home, but also tells you what's going on while you're out, thanks to a SIM card and an iPhone app.

The Mobot is a prototype shown off by BeeWi at mobile phone show Mobile World Congress. Plug it into a power socket, then plug an electrical appliance or gadget into the Mobot, and it will control that gadget. What makes it more than just a regular timer plug is that all the Mobot plugs in the house can talk to each other, and to your phone. Originally, they used ZigBee, but the finished version is set to use Bluetooth instead.

The master Mobot has a SIM card in it, which then connects to the other SIM-less Mobots via Bluetooth or Wi-Fi. You can then turn each individual plug on and off from wherever you are with an iOS app. The app also lets you schedule your lamps, your washing machine or whatever is plugged in to turn on or off automatically at set times.

The Mobot can also let you know what's going on in the house. It has a motion detector and can text you when it detects someone moving around, whether it's warning you of an uninvited wrong'un or letting you know your kids are home safe. And you can set the plugs to turn on the lights or fire up your computer when you walk in the room.


The plugs also have a temperature sensor to warn of fire, and have a battery inside so even when the power goes out, the Mobot has enough juice to warn you that it's time to come home and rescue the contents of the freezer.

The BeeWi Mobot is planned to arrive in the second or third quarter of this year. At present, it's planned to cost a rather steep 149 Euros for the master Mobot and a further 59 Euros for each peripheral plug -- it's only when you consider this product is largely aimed at people with second homes that the price is put in perspective.


For more on the latest phones,
tablets and just about anything with a SIM card in it -- including a GPS walking cane and an
Android-powered coffee machine -- check out our news, previews and videos from Mobile World Congress.

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At least 18 tourists die in balloon crash in Egypt

Updated 9:02 a.m. EST

LUXOR, Egypt A hot air balloon flying over Egypt's ancient city of Luxor caught fire and crashed into a sugar cane field on Tuesday, killing at least 19 foreign tourists, a security official said. The death toll rose Tuesday afternoon after a British tourist died of his injuries.

It was one of the worst accidents involving tourists in Egypt and is likely to push the key tourism industry deeper into recession.

The casualties included French, British, Belgian, Hungarian, Japanese nationals and nine tourists from Hong Kong, Luxor Governor Ezzat Saad told reporters.

Three survivors of the crash -- two British tourists and one Egyptian -- were taken to a local hospital. Local media reports said the pilot was among the survivors. One of the British tourists eventually succumbed to his injuries.

According to the Egyptian security official, the balloon was carrying at least 20 tourists and over Luxor when it caught fire, which triggered an explosion in its gas canister. It then plunged at least 1,000 feet from the sky.

The balloon crashed into a sugar cane field outside al-Dhabaa village just west of Luxor, 320 miles south of Cairo, said the official, speaking on condition of anonymity because he was not authorized to talk to the media.


Egyptians inspect the site where a hot air balloon exploded over the ancient temple city of Luxor on February 26, 2013. The hot air balloon caught fire and exploded over Luxor during a sunrise flight, killing 18 tourists, including Asians and Europeans, sources said. The balloon carrying 21 people was flying at when it caught fire, a security official said.

Egyptians inspect the site where a hot air balloon exploded over the ancient temple city of Luxor on February 26, 2013.


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STR/AFP/Getty Images

Bodies of the dead tourists were scattered across the field around the remnants of the balloon. An Associated Press reporter at the crash site counted eight bodies as they were put into body bags and taken away. The security official said all 18 bodies have been recovered.

The official said foul play has been ruled out.

Egypt's civil aviation minister, Wael el-Maadawi, flew to Luxor to lead the investigation into the crash.

The head of Japan Travel Bureau's Egypt branch, Atsushi Imaeda, confirmed that four Japanese died in the crash. He said two were a couple in their 60s and from Tokyo. Details on the other two were not immediately available.

In Hong Kong, a travel agency said nine of the tourists that were aboard the balloon were natives of the semiautonomous Chinese city. There was a "very big chance that all nine have perished," said Raymond Ng, a spokesman for the agency. The nine, he said, included five women and four men from three families.

They were traveling with six other Hong Kong residents on a 10-day tour of Egypt.

Ng said an escort of the nine tourists watched the balloon from the ground catching fire around 7 a.m. and plunging to the ground two minutes later.

In Britain, tour operator Thomas Cook confirmed that two British tourists were dead and two were in hospital.

"What happened in Luxor this morning is a terrible tragedy and the thoughts of everyone in Thomas Cook are with our guests, their family and friends," said Peter Fankhauser, CEO of Thomas Cook UK & Continental Europe.

"We have a very experienced team in resort with the two guests in the local hospital, and we're providing our full support to the family and friends of the deceased at this difficult time," he said.

In Paris, a diplomatic official said French tourists were among those involved in the accident, but would give no details on how many, or whether French citizens were among those killed.

Speaking on condition of anonymity because he wasn't authorized to be publicly named according to government policy, the official said French authorities were working with their Egyptian counterparts to clarify what happened. French media reports said two French tourists were among the dead but the official wouldn't confirm that.

Hot air ballooning, usually at sunrise over the famed Karnak and Luxor temples as well as the Valley of the Kings, is a popular pastime for tourists visiting the area.

The site of the accident has seen past crashes. In 2009, 16 tourists were injured when their balloon struck a cellphone transmission tower. A year earlier, seven tourists were injured in a similar crash.

Egypt's tourism industry has been decimated since the 18-day uprising in 2011 against autocrat leader Hosni Mubarak and the political turmoil that followed and continues to this day.

Luxor's hotels are currently about 25 percent full in what is supposed to be the peak of the winter season.

Scared off by the political turmoil and tenuous security that has followed the uprising, the number of tourists coming to Egypt fell to 9.8 million in 2011 from 14.7 million the year before, and revenues plunged 30 percent to $8.8 billion.

Poverty swelled at the country's fastest rate in Luxor, which is highly dependent on visitors to its monumental temples and the tombs of King Tutankhamun and other pharaohs. In 2011, 39 percent of its population lived on less than $1 a day, compared to 18 percent in 2009, according to government figures.

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Best Moments From the Academy Awards






Host Seth MacFarlane took the stage at the 2013 Oscars with an opening monologue revealing he was ready to poke fun at the star-studded audience.


"The quest to make Tommy Lee Jones laugh begins now," he said.


But it wasn't too long before MacFarlane was interrupted. William Shatner, dressed as his iconic character Captain Kirk from "Star Trek," descended on the stage to warn MacFarlane that he was about to ruin the Oscars and be branded the worst host ever.


"The show is a disaster. I've come back in time … to stop you from ruining the Academy Awards," Shatner said.

Seth MacFarlane's Boobs Tribute


Shatner tried to steer MacFarlane away from singing an "incredibly offensive song that upsets a lot of women in the audience."


Cue MacFarlane's medley "We Saw Your Boobs," a laundry list set to music of acclaimed actresses in Hollywood who all bared their breasts in film.


MacFarlane was joined by the Gay Men's Chorus of Los Angeles to call out Meryl Streep, Anne Hathaway, Naomi Watts, Jodie Foster, Hilary Swank and countless others who we've seen nude in film.



Not every joke funnyman Seth MacFarlane made landed with the A-list crowd at the 85th annual Academy Awards.


The host elicited gasps from the crowd when he introduced "Django Unchained" as "the story of a man fighting to get back his woman, who's been subjected to unthinkable violence. Or, as Chris Brown and Rihanna call it, a date movie."


Another joke that somehow earned a too-soon nod? A throw to President Abraham Lincoln's assassination.


"I'd argue that the actor who really got inside Lincoln's head was John Wilkes Booth," MacFarlane said.


MacFarlane's jab at Mel Gibson didn't land too smoothly either. MacFarlane said the N-word laden "Django Unchained" screenplay was "loosely based on Mel Gibson's voicemails."

Oscars' Movie Musical Tribute


The theme of the 85 annual Academy Awards was celebrating music in film, and the tributes to movie musicals didn't disappoint.


Featured performers included Catherine Zeta-Jones belting "All That Jazz" from 2002's Best Picture winner "Chicago," Jennifer Hudson's show-stopping "And I'm Telling You I'm Not Going" from 2006's "Dreamgirls," and the cast of this year's Best Picture nominee "Les Miserables" reuniting on stage for "One Day More."

Introducing the Von Trapp Family


To introduce Christopher Plummer to the stage to present the award for Best Supporting Actress, MacFarlane couldn't help but make a joke out of the actor's infamous role as Captain Von Trapp in "The Sound of Music."


MacFarlane came out to announce the Von Trapp family singers, but no one came out. Instead, a man dressed in a Nazi uniform ran in to tell him that they were gone.

Kristen Stewart Hobbles on Stage to Present


When Daniel Radcliffe took the stage to present the award for Achievement in Production Design, he was joined by his hobbling co-presenter Kristen Stewart, who was seen crutching along the red carpet during the pre-show.


The "Twilight" star's makeup artist told People magazine that the actress "cut the ball of her foot, quite severely, on glass two days ago."


The Associated Press reported that backstage, Best Supporting Actress winner Anne Hathaway told Stewart to "break a leg."

Jennifer Lawrence's Unstable Victory


Jennifer Lawrence was so shocked to take home the Oscar for Best Actress that she lost her footing on her way up to the stage to accept her award.


"You guys are just standing up because I fell and that's really embarrassing," she said to the audience.


Lawrence regained her composure to give her acceptance speech, extending a special thank you to "the women this year," who she called "so magnificent and so inspiring."

Daniel Day-Lewis a Three-Peat Best Actor Winner


It was a highly anticipated win for Daniel Day-Lewis, who took home the award for Best Actor for his portrayal of Abe Lincoln in Steven Spielberg's "Lincoln."


Lewis cracked a joke in his acceptance speech, saying he was supposed to be cast as Margaret Thatcher and presenter Meryl Streep was the first choice for Lincoln.


"Meryl Streep was Steven's first choice to play Lincoln… I'd like to see that version," Lewis said.

Michelle Obama Announces Best Picture Winner


In one of the biggest surprises of the night, the Academy brought out First Lady Michelle Obama to help Jack Nicholson introduce the nominees for Best Picture.


Rocking her new bangs and a silver gown, the first lady, live from the White House, announced "Argo" as this year's Best Picture.


"It was a thrill to announce the #Oscars2013 best picture winner from the @WhiteHouse! Congratulations Argo!" FLOTUS tweeted afterwards.

Ben Affleck Triumphs at Oscars


Ben Affleck was flabbergasted by his win for Best Picture for "Argo." His frenzied, heartfelt acceptance speech resonated as he thanked his wife, Jennifer Garner, and ended on an inspirational high note.


"I want to thank my wife, who I don't normally associate with Iran. I want to thank you for working on our marriage. It is work, but it is the best kind of work," he said.


"I was here 15 years ago or something and you know I had no idea what I was doing. I stood out here in front of you all, really just a kid. I went out and I never thought I'd be back here and I am because of so many of you who are here tonight …. I want to thank them for what they taught me, which is that you have to work harder than you think you possibly can, you can't hold grudges. It's hard, but you can't hold grudges. And it doesn't matter how you get knocked down in life because that's going to happen. All that matters is that you got to get up."


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Powers to offer Iran sanctions relief at nuclear talks


ALMATY (Reuters) - Major powers will offer Iran some sanctions relief during talks in Almaty, Kazakhstan, this week if Tehran agrees to curb its nuclear program, a U.S. official said on Monday.


But the Islamic Republic could face more economic pain if it fails to address international concerns about its atomic activities, the official said ahead of the February 26-27 meeting in the central Asian state, speaking on condition of anonymity.


"There will be continued sanctions enforcement ... there are other areas where pressure can be put," the official said, on the eve of the first round of negotiations between Iran and six world powers in eight months.


A spokesman for European Union foreign policy chief Catherine Ashton, who leads the talks with Iran on behalf of the powers, said Tehran should understand that there was an "urgent need to make concrete and tangible progress" in Kazakhstan.


Both Russia and the United States stressed there was not an unlimited amount of time to resolve a dispute that has raised fears of a new war in the Middle East.


"The window for a diplomatic solution simply cannot by definition remain open forever. But it is open today. It is open now," U.S. Secretary of State John Kerry told a news conference in London. "There is still time but there is only time if Iran makes the decision to come to the table and negotiate in good faith."


Russian Deputy Foreign Minister Sergei Ryabkov said there was "no more time to waste", Interfax news agency quoted him as saying in Almaty.


The immediate priority for the powers - the United States, Russia, China, Germany, Britain and France - is to convince Iran to halt its higher-grade enrichment, which is a relatively short technical step away from potential atom bomb material.


Iran, which has taken steps over the last year to expand its uranium enrichment activities in defiance of international demands to scale it back, wants a relaxation of increasingly harsh sanctions hurting its lifeline oil exports.


Western officials say the Almaty meeting is unlikely to produce any major breakthrough, in part because Iran's presidential election in June may make it difficult for it to make significant concessions before then for domestic reasons.


But they say they hope that Iran will take their proposals seriously and engage in negotiations to try to find a diplomatic settlement.


"No one is expecting to walk out of here with a deal but ... confidence building measures are important," one senior Western official said.


The stakes are high: Israel, assumed to be the Middle East's only nuclear-armed arsenal, has strongly hinted at possible military action to prevent its old foe from obtaining such arms. Iran has threatened to retaliate if attacked.


GOLD SANCTIONS RELIEF?


The U.S. official said the powers' updated offer to Iran - a modified version of one rejected by Iran in the unsuccessful talks last year - would take into account its recent nuclear advances but also take "some steps in the sanctions arena".


This would be aimed at addressing some of Iran's concerns, the official said, while making clear it would not meet Tehran's demand of an easing of all punitive steps against it.


"We think ... there will be some additional sanctions relief" in the powers' revised proposal," the official said, without giving details.


Western diplomats have told Reuters the six countries will offer to ease sanctions on trade in gold and precious metals if Iran closes its Fordow underground uranium enrichment plant.


Iran has indicated, however, that this will not be enough.


Tehran denies Western allegations it is seeking to develop the capability to make nuclear bombs, saying its program is entirely peaceful. It wants the powers to recognize what it sees as its right to refine uranium for peaceful purposes.


The U.S. official said the powers hoped that the Almaty meeting would lead to follow-up talks soon.


"We are ready to step up the pace of our meetings and our discussions," the official said, adding the United States would also be prepared to hold bilateral talks with Tehran if it was serious about it.


Ashton's spokesman, Michael Mann, said the updated offer to Iran was "balanced and a fair basis" for constructive talks.


(Additional reporting by Yeganeh Torbati and Dimitry Solovyov; Editing by Jon Hemming)



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UN rights chief, nations condemn Security Council on Syria






GENEVA: The UN human rights chief and several nations criticised the Security Council Monday for failing to take action to halt spiralling violence in Syria and bring to justice perpetrators of abuses in the conflict.

"The Security Council has so far failed with regard to Syria," Navi Pillay told ministers at the start of a regular UN Human Rights Council session in Geneva.

Pillay said her office had pushed for the Security Council to refer the conflict to the International Criminal Court (ICC) after "repeated reports of widespread or systematic crimes and violations."

The ICC can only investigate war crimes if asked to do so by the Security Council but the body is deadlocked in its handling of the conflict by disagreements between its Western members and staunch Syrian ally Russia, plus China.

"For close to two years, the international community has failed to put a stop to the carnage," said UN General Assembly president Vuk Jeremic.

The UN estimates that more than 70,000 people have died in the two years since the Syrian government began a crackdown on anti-regime protesters.

In its latest report published this month, a UN commission of inquiry found that war crimes by both government forces and rebels were spiralling with the conflict becoming increasingly radicalised and sectarian.

It also called for the Security Council to refer the conflict to the ICC.

"For how long we, the international community, will allow this humanitarian tragedy to continue?" Turkish Foreign Minister Ahmet Davutoglu asked the council.

President Bashar al-Assad's regime "has lost its legitimacy," he said.

Davutoglu stressed that the Security Council had the responsibility to help ensure that humanitarian assistance reached all of the estimated more than four million Syrians in desperate need.

"It is incomprehensible to hinder humanitarian access," he said, calling for a Security Council resolution "to ensure humanitarian access and introduce measures to those who prevent such access."

Frans Timmermanns, the foreign minister of The Netherlands, also insisted the ICC address the Syrian crisis.

"The bloodshed must stop," he said.

Swiss Foreign Minister Didier Burkhalter said the world was witnessing a "human catastrophe, a humanitarian catastrophe".

Switzerland last month filed a petition signed by 57 countries calling for the ICC to open a case on war crimes in Syria.

Voicing support for a political solution to the conflict, Burkhalter said Switzerland was open to hosting another international meeting following one last June at which world powers agreed on a political transition plan.

-AFP/ac



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Tesla CEO: NYT review cost us $100M in value -- Bloomberg



Tesla's Model S



(Credit:
Wayne Cunningham/CNET)

The New York Times/Tesla debacle may have cost the
car maker $100 million in value, Tesla's CEO told Bloomberg.

Elon Musk, speaking on Bloomberg TV, said "a lot" of people canceled orders for Tesla's Model S following a scathing New York Times review.

"It probably affected us to the tune of tens of millions, to the order of $100 million, so it's not trivial," Musk said. "I would say that refers more to the valuation of the company. It wasn't as though there were 1,000 cancellations just due to The New York Times article. There were probably a few hundred."

However, Musk did note that Tesla sees more new reservations for the Model S each quarter, indicating demand has been growing for the vehicle.

The New York Times earlier this month published a review of the Tesla Model S that criticized the car's functionality. Among the many complaints was that the vehicle ran out of juice earlier than expected, stranding writing John Broder in the freezing East Coast weather. Before leaving on his trip, Broder said he charged the car until the display read "charge complete;" and then, working to conserve the battery while driving, he said he turned off the car's heat and drove on cruise control at 54 mph.


Tesla disputed Broder's account of the test drive and published logs that it said refuted the New York Times report. The publication and company have since kept up a nasty back and forth about the review, with each claiming the other is wrong.

"The thing I really thought was wrong is that we are looking at the data from the test drive and it does not correlate at all to the article that was written," Musk said on Bloomberg TV. "The result was that the car ran out of range. There was this sad shot of our car on a flatbed as though that was the only outcome possible for such a drive and that's just not true."

Here's the full video, via Bloomberg TV:

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Addressing controversy, Menendez invokes words of MLK

Amid a handful of allegations that threaten to mar his reputation in the Senate, Sen. Bob Menendez, D-N.J., continues to maintain his innocence, decrying the accusations as right-wing attempts to "destroy" his career and invoking the words of Martin Luther King Jr. in asserting his faith that justice will win out.

Menendez, who was re-elected to his seat in November, has since been hit with allegations that he solicited prostitutes in the Dominican Republic, where prostitution is legal. The FBI is looking into the claims. The allegations were originally reported by a conservative website citing an anonymous source.

Menendez has also been accused of improperly lobbying the State Department on a port security contract on behalf of Dr. Salomon Melgen, a close friend and donor. Menendez recently reimbursed Melgen $58,000 for two of three trips he took on Melgen's plane to the Dominican Republic in 2010, but called the tardy reimbursement an honest oversight and says the allegations against him are "absolutely false." The Senate Ethics Committee is investigating Menendez regarding those trips. Melgen himself is the target of more than one federal investigation stemming from allegations of Medicare fraud.

This weekend, at an event celebrating Black History Month at Shiloh Baptist Church in Trenton, N.J., the senator answered the accusations with the words of Martin Luther King Jr.

"Dr. King said that 'the arc of the moral universe is long, but it bends toward justice,'" he said, according to the New Jersey Star-Ledger. "Now we face anonymous, faceless, nameless individuals from right-wing sources seeking to destroy a lifetime of work. And their scares are false. I have worked too hard and too long in the vineyards to allow, at my hands, for the harvest to be soured."

"I have felt the sting of discrimination," he said, according to the North Jersey Record.

Menendez said he believes ultimately, "justice will overcome the forces of darkness."

"I have my hand on the plough," he said, "and I am going to continue to look forward and to work to make that plough lead us to the fulfillment of educational, economic and health care opportunity in this country."

A recent Quinnipiac poll shows a recent drop in Menendez's popularity, with just 36 percent approving and 41 percent disapproving.

But the Democrat, who is at the start of another six-year term, brushed off the importance of those numbers.

"The only poll that matters is what do I get accomplished each and every day," he said, according to the Star-Ledger.

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NASCAR: Daytona Race to Go On After Crash












Every seat will be filled at Daytona International Speedway today after a team worked overnight to repair a fence that was breached in a horrific crash that injured at least 28 spectators in the grandstands.


Joie Chitwood III, president of Daytona International Speedway, said his team met with NASCAR officials at 8 a.m. EST today to review the repairs, hours before 147,000 fans will fill the grandstand seats to watch the Daytona 500 race.


If fans are uneasy about their seating location today, Chitwood said his team would make "every accommodation we can" to move them.


PHOTOS: Crash at Daytona Sends Wreckage Into Stands


The track became a disaster scene on Saturday when 12 cars became tangled in a fiery crash during the final lap of the Nationwide race.


Pieces of rookie Kyle Larson's shredded race car turned into shrapnel that flew into the stands, injuring at least 28 people.






Chris Graythen/Getty Images









RELATED: Fiery Daytona Crash Injures Fans


At least 14 of the injured were transported to hospitals and more than a dozen others were treated at the speedway, Chitwood said.


"I do know that we transported individuals from lower level and upper level [of the grandstands]," he said.


Terry Huckabee, who was sitting in the grandstands with his brother, compared the scene to a "war zone."


"I mean, tire flying by and smoke and everything else," he said.


Huckabee said his brother is recovering in the hospital after his leg was sliced open by the spray of debris.


The crash was apparently triggered when driver Regan Smith's car, which was being tailed by Brad Keselowski on his back bumper, spun to the right and shot up the track.


Smith had been in the lead and said after the crash he had been trying to throw a "block."


Larson's car slammed into the wall that separates the track from the grandstands, causing his No. 32 car to go airborne and erupt in flames.


When a haze of smoke cleared and Larson's car came to a stop, he jumped out uninjured.


His engine and one of his wheels were sitting in a walkway of the grandstand.


"I was getting pushed from behind," Larson told ESPN. "Before I could react, it was too late."


Tony Stewart pulled out the win, but in victory lane, what would have been a celebratory mood was tempered by concern for the injured fans.


"We've always known this is a dangerous sport," Stewart said. "But it's hard when the fans get caught up in it."



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Gloomy Italians vote in election crucial for euro zone


ROME (Reuters) - Italy voted on Sunday in one of the most unpredictable elections in years, with many voters expressing rage against a discredited elite and doubt that a government will emerge strong enough to combat a severe economic crisis.


"I am pessimistic. Nothing will change," said Luciana Li Mandri, 37, as she cast a ballot in the Sicilian capital Palermo on the first of two days of voting that continues on Monday.


"The usual thieves will be in government."


Her gloom reflected the mood across Italy, where many voters said they thought the new administration would not last long, just the opposite of what Italy needs to combat the longest slump in 20 years, mounting unemployment and a huge public debt.


The election is being closely watched by investors whose memories are fresh of a debt crisis which forced out scandal-plagued conservative premier Silvio Berlusconi 15 months ago and saw him replaced by economics professor Mario Monti.


"I'm not confident that the government that emerges from the election will be able to solve any of our problems," said Attilio Bianchetti, a 55-year-old building tradesman in Milan.


Underlining his disilluion with the established parties, he voted for the 5-Star Movement of comic Beppe Grillo.


An iconclastic, 64-year-old Genoese, Grillo has screamed himself hoarse with obscenity-laced attacks on politicians that have channeled the anger of Italians, especially a frustrated young generation hit by record unemployment.


"He's the only real new element in a political landscape where we've been seeing the same faces for too long," said Vincenzo Cannizzaro, 48, in Palermo.


Opinion polls give the centre-left coalition of Pier Luigi Bersani a narrow lead but the result has been thrown open by the prospect of a huge protest vote against Monti's painful austerity measures and rage at a wave of corruption scandals.


A weak government could usher in new instability in the euro zone's third largest economy and cause another crisis of confidence in the European Union's single currency.


Television tycoon Berlusconi, showing off unrivalled media skills and displaying extraordinary energy for a man of 76, has increased uncertainty over the past couple of months by halving the gap between his centre-right and Bersani.


"I am pessimistic. There is such political fragmentation that we will again have the problem of ungovernability" said Marta, a lawyer voting in Rome who did not want to give her family name. "I fear the new government won't last long."


Another Roman voter, lab technician Manila Luce, 34, said: "I am voting Grillo and I hope a lot of people do. Because it's the only way to show how sick to the back teeth we are with the old parties."


Voting continues until 10 p.m. (4 p.m. EST) and resumes on Monday at 7 a.m. Exit polls will be published shortly after polls close at 3 p.m. on Monday. Full official results are expected by early Tuesday.


Snow in the north was expected to last into Monday and could discourage some of the 47 million eligible voters. Authorities said they were prepared for the weather and in the central city of Bologna roads were cleared of snow before voting started.


TOPLESS FEMINISTS


Several bare-breasted women protested against Berlusconi when he voted in Milan. They were bundled away by police.


The four-time premier, known for off-color jokes and a constant target of feminists, is on trial for having sex with an underage prostitute during "bunga bunga" parties at his villa.


Most experts expect a coalition between Bersani and Monti to form the next administration, but whatever government emerges will have to try to reverse years of failure to revitalize one of the most sluggish economies in the developed world.


The widespread despair over the state of the country, where a series of corruption scandals has highlighted the stark divide between a privileged political elite and millions of ordinary Italians struggling to make ends meet, has left deep scars.


"It's our fault, Italian citizens. It's our closed mentality. We're just not Europeans," said voter Li Mandri in Palermo.


"We're all about getting favors when we study, getting a protected job when we work," she said. "That's the way we are and we can only be represented by people like that as well."


ECONOMIC AGENDA


Even if Bersani wins as expected, Analysts are divided over whether he will be able to form a stable majority that can force through sweeping economic reforms.


His centre-left is expected to have firm control of the lower house, thanks to rules that give a strong majority to whichever party wins the most votes nationally.


But a much closer battle will be fought for the Senate which is elected on a regional basis and which has equal law making powers to the chamber.


Berlusconi has clawed back support by promising to repeal Monti's hated new housing tax, the IMU, and to refund the money. He relentlessly attacked what he called the "Germano-centric" policies of the former European Union commissioner.


Think-tank consultant Mario, 60, said on his way to vote in Bologna that Bersani's Democratic Party was the only group serious enough to repair the economy: "They're not perfect," he said. "But they've got the organization and the union backing that will help them push through structural reforms."


Despite Berlusconi's success, Grillo has tapped into the same public frustration as the conservative tycoon and pollsters say his 5-Star Movement of political novices could overtake the centre-right to take second place in the vote.


Rivals have branded Grillo a threat to democracy - a vivid image in a country ruled by fascists for two decades until World War Two. Several voters who spoke to Reuters said Grillo was not the answer because of his lack of concrete policies and the inexperience of those who will sit in parliament for 5-Star.


"Grillo is a populist and populism doesn't work in a democracy," said retired notary Pasquale Lebanon, 76, as he voted for Bersani's Democratic Party in Milan.


"I'm very worried. There seems to be no way out from a political point of view, or for being able to govern," said Calogero Giallanza, a 45-year-old musician in Rome as he also voted for Bersani.


"There's bound to be a mess in the Senate because, as far as I can see the 5-Star Movement is unstoppable."


(Additional reporting by Cristiano Corvino, Lisa Jucca, Jennifer Clark, Matthias Baehr, Jennifer Clark and Sara Rossi in Milan, Stephen Jewkes in Bologna, Wladimir Pantaleone in Palermo, Stefano Bernabei and Massimiliano Di Giorgio in Rome; Writing by James Mackenzie and Barry Moody; Editing by Alastair Macdonald)



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