‘Hobbit’ extends No. 1 journey with $36.7 million

LOS ANGELES (AP) — Tiny hobbit Bilbo Baggins is running circles around some of the biggest names in Hollywood.

Peter Jackson’s “The Hobbit: An Unexpected Journey” took in $ 36.7 million to remain No. 1 at the box office for the second-straight weekend, easily beating a rush of top-name holiday newcomers.

Part one of Jackson’s prelude to his “The Lord of the Rings” trilogy, the Warner Bros. release raised its domestic total to $ 149.9 million after 10 days. The film added $ 91 million overseas to bring its international total to $ 284 million and its worldwide haul to $ 434 million.

“The Hobbit” took a steep 57 percent drop from its domestic $ 84.6 million opening weekend, but business was soft in general as many people skipped movies in favor of last-minute Christmas preparations.

“The real winner this weekend might be holiday shopping,” said Paul Dergarabedian, an analyst for box-office tracker Hollywood.com.

Tom Cruise‘s action thriller “Jack Reacher” debuted in second-place with a modest $ 15.6 million debut, according to studio estimates Sunday. Based on the Lee Child best-seller “One Shot,” the Paramount Pictures release stars Cruise as a lone-wolf ex-military investigator tracking a sniper conspiracy.

Opening at No. 3 with $ 12 million was Judd Apatow’s marital comedy “This Is 40,” a Universal Pictures film featuring Paul Rudd and Leslie Mann reprising their roles from the director’s 2007 hit “Knocked Up.”

Paramount’s road-trip romp “The Guilt Trip,” featuring “Knocked Up” star Seth Rogen and Barbra Streisand, debuted weakly at No. 6 with $ 5.4 million over the weekend and $ 7.4 million since it opened Wednesday. Playing in narrower release, Paramount’s acrobatic fantasy “Cirque du Soleil: Worlds Away” debuted at No. 11 with $ 2.1 million.

A 3-D version of Disney’s 2001 animated blockbuster “Monsters, Inc.” also had a modest start at No. 7 with $ 5 million over the weekend and $ 6.5 million since opening Wednesday.

Domestic business was off for the first time in nearly two months. Overall revenues totaled $ 112 million, down 12.6 percent from the same weekend last year, when Cruise’s “Mission: Impossible — Ghost Protocol” debuted with $ 29.6 million, according to Hollywood.com.

Cruise’s “Jack Reacher” opened at barely half the level as “Ghost Protocol,” but with a $ 60 million budget, the new flick cost about $ 100 million less to make.

Starting on Christmas, Hollywood expects a big week of movie-going with schools out through New Year’s Day and many adults taking time off. So Paramount and other studios are counting on strong business for films that started slowly this weekend.

“‘Jack Reacher’ will end up in a very good place. The movie will be profitable for Paramount,” said Don Harris, the studio’s head of distribution. “The first time I saw the movie I saw dollar signs. It certainly wasn’t intended to be compared to a ‘Mission: Impossible,’ though.”

Likewise, Warner Bros. is looking for steady crowds for “The Hobbit” over the next week, despite the debut of two huge newcomers — the musical “Les Miserables” and the action movie “Django Unchained” — on Christmas Day.

“We haven’t reached the key holiday play time yet,” said Dan Fellman, head of distribution for Warner. “It explodes on Tuesday and goes right through the end of the year.”

In limited release, Kathryn Bigelow’s Osama bin Laden manhunt saga “Zero Dark Thirty” played to packed houses with $ 410,000 in just five theaters, averaging a huge $ 82,000 a cinema.

That compares to a $ 4,654 average in 3,352 theaters for “Jack Reacher” and a $ 4,130 average in 2,913 cinemas for “This Is 40.” ”The Guilt Trip” averaged $ 2,217 in 2,431 locations, and “Monsters, Inc.” averaged $ 1,925 in 2,618 cinemas. Playing just one matinee and one evening show a day at 840 theaters, “Cirque du Soleil” averaged $ 2,542.

Since opening Wednesday, “Zero Dark Thirty” has taken in $ 639,000. Distributor Sony plans to expand the acclaimed film to nationwide release Jan. 11, amid film honors and nominations leading up to the Feb. 24 Academy Awards.

Opening in 15 theaters from Lionsgate banner Summit Entertainment, Naomi Watts and Ewan McGregor’s tsunami-survival drama “The Impossible” took in $ 138,750 for an average of $ 9,250.

A fourth new release from Paramount, “The Sopranos” creator David Chase’s 1960s rock ‘n’ roll tale “Not Fade Away,” debuted with $ 19,000 in three theaters, averaging $ 6,333.

Universal’s “Les Miserables” got a head-start on its domestic release with a $ 4.2 million debut in Japan.

Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Hollywood.com. Where available, latest international numbers are also included. Final domestic figures will be released Monday.

1. “The Hobbit: An Unexpected Journey,” $ 36.7 million ($ 91 million international).

2. “Jack Reacher,” $ 15.6 million ($ 2.5 million international).

3. “This Is 40,” $ 12 million.

4. “Rise of the Guardians,” $ 5.9 million ($ 13.7 million international).

5. “Lincoln,” $ 5.6 million.

6. “The Guilt Trip,” $ 5.4 million.

7. “Monsters, Inc.” in 3-D, $ 5 million.

8. “Skyfall,” $ 4.7 million ($ 9 million international),

9. “Life of Pi,” $ 3.8 million ($ 23.2 million international).

10. “The Twilight Saga: Breaking Dawn — Part 2,” $ 2.6 million ($ 6.6 million international).

___

Estimated weekend ticket sales at international theaters (excluding the U.S. and Canada) for films distributed overseas by Hollywood studios, according to Rentrak:

1. “The Hobbit: An Unexpected Journey,” $ 91 million.

2. “Life of Pi,” $ 23.2 million.

3. “Rise of the Guardians,” $ 13.7 million.

4. “Skyfall,” $ 9 million.

5. “Wreck-It Ralph,” $ 7.3 million.

6. “The Twilight Saga: Breaking Dawn — Part 2,” $ 6.6 million.

7. “Pitch Perfect,” $ 6 million.

8. “Les Miserables,” $ 4.2 million.

9. “Love 911,” $ 3.2 million.

10. “De L’autre Cote du Periph,” $ 3.1 million.

___

Online:

http://www.hollywood.com

http://www.rentrak.com

___

Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.

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Few tests done at toxic sites after superstorm

OLD BRIDGE, N.J. (AP) — For more than a month, the U.S. Environmental Protection Agency has said that the recent superstorm didn’t cause significant problems at any of the 247 Superfund toxic waste sites it’s monitoring in New York and New Jersey.

But in many cases, no actual tests of soil or water are being conducted, just visual inspections.

The EPA conducted a handful of tests right after the storm, but couldn’t provide details or locations of any recent testing when asked last week. New Jersey officials point out that federally designated Superfund sites are EPA’s responsibility.

The 1980 Superfund law gave EPA the power to order cleanups of abandoned, spilled and illegally dumped hazardous wastes that threaten human health or the environment. The sites can involve long-term or short-term cleanups.

Jeff Tittel, executive director of the Sierra Club in New Jersey, says officials haven’t done enough to ensure there is no contamination from Superfund sites. He’s worried toxins could leach into groundwater and the ocean.

“It’s really serious and I think the EPA and the state of New Jersey have not done due diligence to make sure these sites have not created problems,” Tittel said.

The EPA said last month that none of the Superfund sites it monitors in New York or New Jersey sustained significant damage, but that it has done follow-up sampling at the Gowanus Canal site in Brooklyn, the Newtown Creek site on the border of Queens and Brooklyn, and the Raritan Bay Slag site, all of which flooded during the storm.

But last week, EPA spokeswoman Stacy Kika didn’t respond to questions about whether any soil or water tests have been done at the other 243 Superfund sites. The agency hasn’t said exactly how many of the sites flooded.

“Currently, we do not believe that any sites were impacted in ways that would pose a threat to nearby communities,” EPA said in a statement.

Politicians have been asking similar questions, too. On Nov. 29, U.S. Sen. Frank Lautenberg, D-N.J., wrote to the EPA to ask for “an additional assessment” of Sandy’s impact on Superfund sites in the state.

Elevated levels of lead, antimony, arsenic and copper have been found at the Raritan Bay Slag site, a Superfund site since 2009. Blast furnaces dumped lead at the site in the late 1960s and early 1970s, and lead slag was also used there to construct a seawall and jetty.

The EPA found lead levels as high as 142,000 parts per million were found at Raritan Bay in 2007. Natural soil levels for lead range from 50 to 400 parts per million.

The EPA took four samples from the site after Superstorm Sandy: two from a fenced-off beach area and two from a nearby public playground. One of the beach samples tested above the recreational limit for lead. In early November, the EPA said it was taking additional samples “to get a more detailed picture of how the material might have shifted” and will “take appropriate steps to prevent public exposure” at the site, according to a bulletin posted on its website. But six weeks later, the agency couldn’t provide more details of what has been found.

The Newtown Creek site, with pesticides, metals, PCBs and volatile organic compounds, and the Gowanus Canal site, heavily contaminated with PCBs, heavy metals, volatile organics and coal tar wastes, were added to the Superfund list in 2010.

Some say the lead at the Raritan Bay site can disperse easily.

Gabriel Fillippeli, director of the Center for Urban Health at Indiana University-Purdue University Indianapolis, said lead tends to stay in the soil once it is deposited but can be moved around by stormwaters or winds. Arsenic, which has been found in the surface water at the site, can leach into the water table, Fillippeli said.

“My concern is twofold. One is, a storm like that surely moved some of that material physically to other places, I would think,” Fillippeli said. “If they don’t cap that or seal it or clean it up, arsenic will continue to make its way slowly into groundwater and lead will be distributed around the neighborhood.”

The lack of testing has left some residents with lingering worries.

The Raritan Bay Slag site sits on the beach overlooking a placid harbor with a view of Staten Island. On a recent foggy morning, workers were hauling out debris, and some nearby residents wondered whether the superstorm increased or spread the amount of pollution at the site.

“I think it brought a lot of crud in from what’s out there,” said Elise Pelletier, whose small bungalow sits on a hill overlooking the Raritan Bay Slag site. “You don’t know what came in from the water.” Her street did not flood because it is up high, but she worries about a park below where people go fishing and walk their dogs. She would like to see more testing done.

Thomas Burke, an associate dean at the Johns Hopkins School of Public Health, says both federal and state officials generally have a good handle on the major Superfund sites, which often use caps and walls to contain pollution.

“They are designed to hold up,” Burke said of such structures, but added that “you always have to be concerned that an unusual event can spread things around in the environment.” Burke noted that the storm brought in a “tremendous amount” of water, raising the possibility that groundwater plumes could have changed.

“There really have to be evaluations” of communities near the Superfund sites, he said. “It’s important to take a look.”

Officials in both New York and New Jersey note they’ve also been monitoring less toxic sites known as brownfields and haven’t found major problems. The New York DEC said in a statement that brownfields in that state “were not significantly impacted” and that they don’t plan further tests for storm impacts.

Larry Ragonese, a spokesman for the New Jersey Department of Environmental Protection, said the agency has done visual inspections of major brownfield sites and also alerted towns and cities to be on the lookout for problems. Ragonese said they just aren’t getting calls voicing such concerns.

Back at the Raritan Bay slag site, some residents want more information. And they want the toxic soil, which has sat here for years, out.

Pat Churchill, who was walking her dog in the park along the water, said she’s still worried.

“There are unanswered questions. You can’t tell me this is all contained. It has to move around,” Churchill said.

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RIM’s biggest problem: It’s still scrambling to catch yesterday’s hottest mobile app

The moment I first realized that RIM (RIMM) was truly in enormous trouble was back in 2010 when I heard then co-CEO Jim Balsillie downplay the importance of apps. Yes, you read that correctly. Balsillie actually told attendees at a Web 2.0 summit in 2010 that the Internet itself was the most important “app” for mobile devices and contended that the “Web needs a platform that allows you to use your existing Web content, not apps.” My feelings on this matter were only solidified when I attended the BlackBerry World conference in May 2011 and watched RIM executives proudly announce that the Playbook tablet would soon get its own version of Angry Birds sometime in the near future. In reality, Angry Birds didn’t release for BlackBerry until late December of that year, or two full years after it was originally released for iOS.

[More from BGR: WhatsApp goes free for iPhone for a limited time]

All of which brings me back to RIM’s current state: Despite the great looking hardware and user interface pictures we’ve seen from new BlackBerry 10 smartphones so far, the company still has an app problem. I was reminded of this when I read a post over at CrackBerry titled, “There’s still a chance for WhatsApp on BlackBerry 10.” The issue here isn’t whether RIM eventually does or doesn’t get WhatsApp on its platform — the issue is that RIM always seems to be one step behind when it comes to getting the hottest apps of the day on its devices.

[More from BGR: BlackBerry 10 browser smokes iOS 6 and Windows Phone 8 in comparison test [video]]

The most absurd example of this, of course, is Instagram. Yes, it’s very likely that BlackBerry 10 will support the popular photo-sharing app right out of the gate given the company’s partnership with Instagram owner Facebook (FB). But we still have no official confirmation that Instagram will be a BlackBerry 10 app just over a month before the new platform launches, and this is symbolic of the fact that RIM is always stuck at the back of line when it comes to app developers’ priorities.

Simply put, RIM can’t possibly hope to compete with Android, iOS or even Windows Phone 8 if its users will always wonder if they’ll be able to do all the cool things with their phones that their friends can do. In the unpredictable Wild West of today’s app market, where new apps seemingly go viral overnight to become global powerhouses, platform developers need to make sure they have quick and simple ways for app developers to port over their software. And until RIM figures out a way to get this done, it still has no shot in the long term.

This article was originally published by BGR

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NRA’s LaPierre: New gun laws won't work

LaPierre speaks at Friday's press conference. (Getty)

Two days after suggesting a "good guy with a gun" be stationed at every school in the country in response to the deadly shootings in Newtown, Conn., National Rifle Association executive vice president Wayne LaPierre blasted critics of his plan.

In an interview broadcast on Sunday's "Meet The Press," LaPierre reiterated the statements he made Friday at a press conference in Washington, when he said the answer to preventing shootings like the one at Sandy Hook Elementary Sch00l is armed security in every school--in effect, protecting children with guns.

“If it’s crazy to call for putting police in and securing our schools to protect our children, then call me crazy," LaPierre said. “I think the American people think it’s crazy not to do it."

At one point during the often contentious exchange, host David Gregory held up a high-capacity magazine clip that carries 30 bullets, asking if the NRA would support a federal limit on the capacity of such clips.

"Isn't it just possible that we could reduce the carnage in a situation like Newtown?" Gregory asked.

"I don't believe that's going to make one difference," LaPierre responded.

"You're telling me that it's not a matter of common sense that if you don't have an ability to shoot off 30 rounds without reloading, that, just possibly, you could reduce the loss of life?" Gregory asked.

"I don't buy your argument for a minute," LaPierre said. "There are so many different ways to evade that, even if you had that."

“Is there no new gun regulation you would support?” an exasperated Gregory asked. LaPierre refused to answer.

At Friday's press conference, LaPierre--who did not take questions from reporters--argued that had someone at the school been armed, "innocent lives might have been spared."

"The only thing that stops a bad guy with a gun is a good guy with a gun," he said.

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Canada spending growth sluggish in November, Mastercard says

(Reuters) – Canada‘s holiday shopping season got off to a slow start in November with retail sales rising only 1.3 percent from the previous year, compared with 4.2 percent growth a year earlier, according to data released by MasterCard on Thursday.

Still, the shopping season was still young in November. MasterCard Advisors, the payment company’s research and consulting division, found that in recent years, holiday shopping peaks from December 20 to December 22.

“Many Canadians may have gotten an early start with Black Friday and Cyber Monday this year, but it’s still a very young phenomenon in Canada,” Senior Vice-President Richard McLaughlin, said in a release.

The Friday after U.S. Thanksgiving is the unofficial start to the holiday shopping season south of the border, and in recent years retailers have imported Black Friday sales to Canada.

Some also promote online sales the following Monday.

Canada’s online retail sales continued to grow in November, increasing 26.4 percent.

(Reporting by Allison Martell; Editing by Peter Galloway)

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Americans answer D.C.’s siren song of employment, strong economy

WASHINGTON (Reuters) – Thirteen years ago the band The Magnetic Fields crooned that the U.S. capital city is “the greatest place to be,” in the indie love song “Washington, D.C.”

Recently, a growing number of Americans are singing along as they move to the District in search of jobs, economic opportunity and cultural attractions.

In a study on migration provided exclusively to Reuters that is set to be released next month, United Van Lines found the District of Columbia tops all 50 states for the number of people moving in during 2012.

The city has held that spot for five years running, with 64 percent of the household moves in Washington coming from outside the city in 2012.

United Van Lines is the largest moving company in the country for households.

Oregon ranked second, followed by Nevada, North Carolina and South Carolina. Washington is a city that does not belong to a state, but is subject to loose control from the federal government.

“Washington, D.C., is unique because over the last five years its unemployment rate was not hit as hard by the Great Recession,” said Michael Stoll, chair and professor of public policy at the University of California at Los Angeles about the study. “But I think the other thing is that the city has remade itself from the one we knew 10 to 15 years ago.”

Washington has shed its reputation as the crime capital of the country, and it has developed a high technology corridor and other businesses that are both stable and hiring, said Stoll.

Also, many members of the Baby Boom generation are moving in as they retire, taking advantage of the free museums, monuments and cultural events the city has to offer, he said.

The rising popularity could yield a result also unthinkable less than two decades ago.

“D.C. will not just be a place of tourism. It will be a major economic engine, which many of us haven’t thought of it as being before,” Stoll said.

A U.S. Census report released on Thursday also showed the city is gaining new residents. Washington’s population increased 2.15 percent between July 2011 and July 2012, a rise second only to North Dakota.

The District’s population increase of 5.1 percent from 2010 to 2012 was the biggest in the country, the Census found. It had had 632,323 residents as of July 1.

The city has a large international community, largely due to the presence of foreign embassies and organizations such as the World Bank. The Census found people from other countries made up 32 percent of the net migration from 2011 to 2012.

According to a Labor Department report released on Friday, the District’s unemployment rate fell in November to 8.1 percent from 10.1 percent the year before. Local political leaders point to a development boom and one of the highest median incomes in the country – $ 63,124 – as other draws to the city.

On a national level, Stoll said, the migration patterns show Americans are seeking economic opportunity in places where new manufacturing and technology enterprises are building up. The patterns reveal a swelling group of aging people who are retiring and looking for affordable and comfortable places to live, as well.

He added that many people who wanted to move to California, but were put off by the state’s economic woes, turned their moving vans north to Oregon.

New Jersey topped states for outward moves, in 2012, the United Van Lines study showed, largely due to a shrinking factory sector. It was followed by Illinois, West Virginia, Michigan and New York.

Washington’s popularity surge recently created a paradox in the city’s economic success story. Last month, the Brookings Institution concluded three U.S. metropolitan areas are in economic recovery, but did not include Washington because its population burst drove down its gross domestic product on a per capita basis.

(Reporting By Lisa Lambert; Editing by Leslie Adler)

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Federal appeals court rules against Hobby Lobby on contraception

OKLAHOMA CITY (Reuters) – A federal appeals court on Thursday rejected a claim by an arts and crafts chain that wants to be exempted from a requirement to provide emergency contraceptives to employees because it violates the religious principles of its owners.

The Court of Appeals in Denver ruled against family-owned Hobby Lobby‘s assertion that the religious beliefs of its owners should relieve them from providing the “morning after” and “week after” pills to their employees, as required under President Barack Obama‘s signature health care reforms.

Hobby Lobby vowed to appeal to the U.S. Supreme Court.

“The Green family is disappointed with this ruling,” said Kyle Duncan, general counsel for the Becket Fund for Religious Liberty, which is assisting Hobby Lobby in the legal case. “The Greens will continue to make their case on appeal that this unconstitutional mandate infringes their right to earn a living while remaining true to their faith.”

The medications at issue are classified as emergency contraceptives by the Food and Drug Administration, but the owners of Hobby Lobby call them “abortion-inducing drugs” because they are often taken after conception.

The lawsuit is among 42 legal actions that have been filed over the issue, according to the Becket Fund for Religious Liberty, a non-profit law firm in Washington, D.C.

The company faces fines of up to $ 1.3 million daily if it disobeys the mandate, which takes effect on January 1 for Hobby Lobby, a $ 3 billion chain, and its smaller sister operation, Mardel, a Christian-oriented bookstore and educational supply company.

Both companies are owned by the Green family of Oklahoma City, whose patriarch, David Green, is ranked 79th on Forbes Magazine’s list of the 400 richest Americans, with a net worth of $ 4.5 billion.

The family operates 514 Hobby Lobby stores in 41 states and employ 13,240 people. Inspirational Christian music is played in the stores, which are closed on Sundays.

U.S. District Judge Joe Heaton of the Western District of Oklahoma ruled on November 19 that the privately-owned companies are secular, for-profit enterprises that do not possess the same religious rights as the individual members of the family.

(Editing by Corrie MacLaggan and Lisa Shumaker)

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Facebook releases ‘Poke’ for the iPhone to compete with Snapchat

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Final day of funerals for Newtown shooting victims

The final three victims of the massacre at Sandy Hook Elementary School will be laid to rest today, ending a somber week of funerals.

A mass will take place today at St. Rose of Lima Catholic Church for Josephine Gay, who had celebrated her 7th birthday on Dec. 11.

Friends and family have been asked to wear Josephine's favorite color, purple, in her honor.

PHOTOS: Victims of Sandy Hook Massacre

A homegoing celebration will take place at The First Cathedral in Bloomfield, Conn., for Ana Marquez-Greene. The 6-year-old with a beaming voice sang in a home video with her brother, who was also at Sandy Hook Elementary School during the massacre, and seemed destined to take after her father, a jazz musician.

Emilie Parker, the budding artist who carried her markers and pencils everywhere, will be laid to rest in Ogden, Utah today.

The 6-year-old would have been one of the first to comfort her classmates at Sandy Hook Elementary School, had a gunman's bullets not claimed her life, her father said.

"My daughter Emilie would be one of the first ones to be standing and giving support to all the victims because that's the kind of kid she is," her father, Robbie Parker, said last Saturday.

"She always had something kind to say about anybody," Parker said. "We find comfort reflecting on the incredible person Emilie was and how many lives she was able to touch."

WATCH: Emilie's father speaks about his daughter

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Italy PM Monti resigns, elections likely in February

ROME (Reuters) – Italian Prime Minister Mario Monti tendered his resignation to the president on Friday after 13 months in office, opening the way to a highly uncertain national election in February.

The former European commissioner, appointed to lead an unelected government to save Italy from financial crisis a year ago, has kept his own political plans a closely guarded secret but he has faced growing pressure to seek a second term.

President Giorgio Napolitano is expected to dissolve parliament in the next few days and has already indicated that the most likely date for the election is February 24.

In an unexpected move, Napolitano said he would hold consultations with political leaders from all the main parties on Saturday to discuss the next steps. In the meantime Monti will continue in a caretaker capacity.

European leaders including German Chancellor Angela Merkel and European Commission President Jose Manuel Barroso have called for Monti’s economic reform agenda to continue but Italy’s two main parties have said he should stay out of the race.

Monti, who handed in his resignation during a brief meeting at the presidential palace shortly after parliament approved his government’s 2013 budget, will hold a news conference on Sunday at which he is expected clarify his intentions.

Ordinary Italians are weary of repeated tax hikes and spending cuts and opinion polls offer little evidence that they are ready to give Monti a second term. A survey this week showed 61 percent saying he should not stand.

Whether he runs or not, his legacy will loom over an election which will be fought out over the painful measures he has introduced to try to rein in Italy’s huge public debt and revive its stagnant economy.

His resignation came a couple of months before the end of his term, after his technocrat government lost the support of Silvio Berlusconi‘s centre-right People of Freedom (PDL) party in parliament earlier this month.

Speculation is swirling over Monti’s next moves. These could include outlining policy recommendations, endorsing a centrist alliance committed to his reform agenda or even standing as a candidate in the election himself.

The centre-left Democratic Party (PD) has held a strong lead in the polls for months but a centrist alliance led by Monti could gain enough support in the Senate to force the PD to seek a coalition deal which could help shape the economic agenda.

BERLUSCONI IN WINGS

Senior figures from the alliance, including both the UDC party, which is close to the Roman Catholic Church, and a new group founded by Ferrari sports car chairman Luca di Montezemolo, have been hoping to gain Monti’s backing.

He has not said clearly whether he intends to run, but he has dropped heavy hints he will continue to push a reform agenda that has the backing of both Italy’s business community and its European partners.

The PD has promised to stick to the deficit reduction targets Monti has agreed with the European Union and says it will maintain the broad course he has set while putting more emphasis on reviving growth.

Berlusconi’s return to the political arena has added to the already considerable uncertainty about the centre-right’s intentions and increased the likelihood of a messy and potentially bitter election campaign.

The billionaire media tycoon has fluctuated between attacking the government’s “Germano-centric” austerity policies and promising to stand aside if Monti agrees to lead the centre right, but now appears to have settled on an anti-Monti line.

He has pledged to cut taxes and scrap a hated housing tax which Monti imposed. He has also sounded a stridently anti-German line which has at times echoed the tone of the populist 5-Star Movement headed by maverick comic Beppe Grillo.

The PD and the PDL, both of which supported Monti’s technocrat government in parliament, have made it clear they would not be happy if he ran against them and there have been foretastes of the kind of attacks he can expect.

Former centre-left prime minister Massimo D’Alema said in an interview last week that it would be “morally questionable” for Monti to run against the PD, which backed all of his reforms and which has pledged to maintain his pledges to European partners.

Berlusconi who has mounted an intensive media campaign in the past few days, echoed that criticism this week, saying Monti risked losing the credibility he has won over the past year and becoming a “little political figure”.

(Additional reporting by Gavin Jones, Massimiliano Di Giorgio and Paolo Biondi; Writing by Gavin Jones and James Mackenzie; Editing by Michael Roddy)

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