Pistorius wins release on $113,000 bail

PRETORIA (Reuters) - A South African court granted bail on Friday to Oscar Pistorius, charged with the murder of his girlfriend on Valentine's Day, after his lawyers argued the "Blade Runner" was too famous to flee justice.

The decision by Magistrate Desmond Nair drew cheers from the Paralympics star's family and supporters. Pistorius himself was unmoved, in marked contrast to the rest of the week-long hearing when he repeatedly broke down in tears.

Nair set bail at 1 million rand ($113,000) and postponed the case until June 4. Pistorius would be released only when the court receives 100,000 rand in cash, he added.

Less than an hour later, a silver Land Rover believed to be carrying Pistorius left the court compound and sped off through the capital, pursued by members of the media on motorcycles.

Pistorius, 26, was also ordered to hand over firearms and his two South African passports, avoid his home and all witnesses in the case, report to a police station twice a week and to abstain from drinking alcohol.

The decision followed a week of dramatic testimony about how the athlete shot dead model and law graduate Reeva Steenkamp at his luxury home near Pretoria in the early hours of February 14.

Prosecutors said Pistorius committed premeditated murder when he fired four shots into a locked toilet door, hitting his girlfriend cowering on the other side. Steenkamp, 29, suffered gunshot wounds to her head, hip and arm.

Pistorius said the killing was a tragic mistake, saying he had mistaken Steenkamp for an intruder - a possibility in crime-ridden South Africa - and opened fire in a blind panic.

However, in delivering his nearly two-hour bail ruling, Nair said there were a number of "improbabilities" in Pistorius's version of events, read out to the court in an affidavit by his lawyer, Barry Roux.

"I have difficulty in appreciating why the accused would not seek to ascertain who exactly was in the toilet," Nair said. "I also have difficulty in appreciating why the deceased would not have screamed back from the toilet."

By local standards, the bail conditions are onerous but it remains to be seen if they appease opposition to the decision from groups campaigning against the violence against women that is endemic in South Africa.

"We are saddened because women are being killed in this country," said Jacqui Mofokeng, a spokeswoman for the ruling African National Congress' Women's League, whose members stood outside the court this week with banners saying "Rot in jail".

TO FAMOUS TO RUN

However, Nair said he was ultimately making his decision in the "interests of justice" and that the prosecution, who suffered a setback when the lead investigator withered under cross-examination by Roux, had failed to show Pistorius was either a flight risk or a threat to the public.

Roux stressed that the Olympic and Paralympic runner's global fame made it impossible for him to evade justice by skipping bail and leaving the country.

"He can never go anywhere unnoticed," Roux told the court.

Pistorius, whose lower legs were amputated in infancy forcing him to race on carbon fiber "blades", faces life in prison if convicted of premeditated murder.

Prosecutors had portrayed him as a cold-blooded killer and said they were confident that their case, which will have to rely heavily on forensics, would stand up to scrutiny at a full trial.

"We are going to make sure that we get enough evidence to get through this case during trial time," a spokesman for the National Prosecuting Authority told reporters.

In court, lead prosecutor Gerrie Nel was scornful of Pistorius's inability to contain his emotions. "I shoot and I think my career is over and I cry. I come to court and I cry because I feel sorry for myself," Nel said.

"DEEPLY IN LOVE"

In his affidavit, Pistorius said he was "deeply in love" with Steenkamp, and Roux said his client had no motive for the killing.

Pistorius contends he reached for a 9-mm pistol under his bed because he felt particularly vulnerable without his prosthetic limbs.

According to police, witnesses heard gunshots and screams from the athlete's home. The community is surrounded by 3-m- (yard-) high stone walls and topped with an electric fence.

In a magazine interview a week before her death, published on Friday, Steenkamp spoke about her three-month-old relationship with Pistorius.

"I absolutely adore Oscar. I respect and admire him so much," she told celebrity gossip magazine Heat. "I don't want anything to come in the way of his career."

Police pulled their lead detective off the case on Thursday after it was revealed he himself faces attempted murder charges for shooting at a minibus. He has been replaced by South Africa's top detective.

The arrest of Pistorius last week shocked those who had watched in awe last year as he reached the semi-final of the 400 meters race in the London Olympics.

The impact has been greatest in South Africa, where Pistorius was seen as a rare hero who commanded respect from both black and white people, transcending the racial divides that persist 19 years after the end of apartheid.

(Writing by Ed Cropley; Editing by Michael Roddy)

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Top detective assigned to Pistorius case

PRETORIA: South African police assigned a top new detective Thursday to take over the bungled Oscar Pistorius investigation after it emerged the lead officer faced seven charges of attempted murder, dramatically undermining the prosecution case against the sprint star.

"We recognise the significance, the importance... and the severity of the matter," police commissioner Mangwashi 'Riah' Phiyega said as she announced the new appointment. "This matter will receive attention at the national level."

The charges against detective Hilton Botha further embarrassed the prosecution which has seen its evidence repeatedly picked apart during the bail hearing for Pistorius over the Valentine's Day killing of his girlfriend Reeva Steenkamp.

Pistorius himself suffered a new blow on Thursday when US sportswear giant Nike said it has suspended its contract with the double amputee Olympian and Paralympian known as "Blade Runner" who had become an inspiration to millions.

The 26-year-old is due back in court on Friday for the fourth day of the bail hearing.

Police revealed Thursday that Botha is facing seven charges for shooting at a minibus taxi in 2011, and he also came under repeated fire from Pistorius' defence team over witness testimony and his handling of the investigation.

Defence lawyer Barry Roux said there were "disastrous shortcomings in the state's case".

Prosecutors allege it was a premeditated killing, but Pistorius has said he mistook his 29-year-old model girlfriend for an intruder.

Steenkamp was found by medics in the early hours of last Thursday at Pistorius' luxury Pretoria home covered in bloodied towels and wearing white shorts and a black vest, with bullet wounds to her head, elbow and hip. She died at the scene.

The Olympian and Paralympian sprinter, who has been in police custody for a week, could face months or perhaps years in pre-trial detention if he does not win bail.

Pistorius, who said he kept a gun in his bedroom because of fears of violence, denies intentionally killing his girlfriend.

He said in a statement read out in court earlier this week that he had fired at the door of the bathroom where his lover was hiding as he was "filled with horrible fear" that someone had sneaked in through an open window in the dead of night.

Botha was forced to admit this week that Pistorius' claims were "consistent" with the crime scene and on Thursday he said of the investigation: "I'm sure it could have been handled better."

He has conceded he did not wear protective clothing when Pistorius' forensic team visited his home, which may have contaminated the scene.

He was further forced to admit that police had not seen a bullet that hit the toilet basin and which was only discovered four days later by the defence forensic team.

Roux on Wednesday also threw doubt on key prosecution witness evidence suggesting the couple, who had been dating since late last year, had rowed before the shooting.

A woman who lives in the same high security complex "heard talking that sounded like non-stop fighting from two to three in the morning," hours before she was killed, prosecutor Gerrie Nel said.

Another witness "heard a female screaming two-three times, then more gunshots," Botha said.

But Roux disputed the accounts, as police said one witness was at least 300 metres from the house and the other had misheard the number of gunshots.

Prosecutors also backtracked on allegations that a police search had found testosterone and needles in a dresser in Pistorius' bedroom.

"We can't tell what it is," national prosecuting authority spokesman Medupe Simasiku said. "We can't confirm or deny it until we get the forensic report."

Pistorius' family said in a statement it was "satisfied" with the bail hearing, but "finds the contradictions in Botha's testimony extremely concerning".

Arguing that Pistorius would be a flight risk, the prosecution quoted a magazine article in which the runner claimed to have a house in Italy.

But his coach Ampie Louw told AFP the property is actually a training facility built by the local government and a hotel, where the athlete goes regularly to train and unwind.

Louw said that if Pistorius is granted bail he wanted to get the runner -- who became a hero to millions when he became the first double amputee to compete at the 2012 London Olympics -- back on the track.

"I'm going to speak with him and try to get him going."

Pistorius' career has been put on hold since the shooting, forcing him to cancel a number of races.

Nike on Thursday became the latest in a series of corporate giants to halt endorsements which have earned the athlete millions of dollars. US sunglasses maker Oakley has already suspended its contract with him and French cosmetics firm Clarins said it was dropping an advertising campaign featuring Pistorius.

The athlete, who off the track has had a rocky private life with stories of rash behaviour, beautiful women, guns and fast cars, has built up a powerful team of lawyers, medical specialists and public relations experts for his defence.

- AFP/fa

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Hyderabad blasts: NIA, NSG teams flying to blast site, home secretary says

NEW DELHI: Elite teams of the National Investigation Agency (NIA) and the National Security Guard (NSG) will be flying to Hyderabad, which has been rocked by twin blasts that killed 10 people and injured 50, an official said.

"We have a news of two blasts. We have spoken to state chief secretary, DGP (director general of police) and governor (E.S.L. Narasimhan)," Home secretary R.K. Singh told reporters here.

"Ten people have died and 50 have been injured in the blasts," he said.

He said the state police chief is reaching the blast site, which has been cordoned off.

"Our NIA team is also reaching as it has a hub there. The NIA officials are there at the site. Our IG NIA is also going from here. The post blast investigating team of NSG is also going," he told reporters,

The two teams will fly at 9.30 p.m. in a Border Security Force plane, he added.

The near-simultaneous blasts occurred near two theatres in Dilsukhnagar, a busy commercial area in the southern part of city, about 15 km from downtown.

Police have not yet confirmed either the cause of the explosions or the number of casualties.

The first blast occurred around 7 pm near a tiffin centre opposite Venkatadri Theatre and the second near Konark Theatre. Both the theatres are about 500 meters from each other.

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Adults get 11 percent of calories from fast food

ATLANTA (AP) — On an average day, U.S. adults get roughly 11 percent of their calories from fast food, a government study shows.

That's down slightly from the 13 percent reported the last time the government tried to pin down how much of the American diet is coming from fast food. Eating fast food too frequently has been seen as a driver of America's obesity problem.

For the research, about 11,000 adults were asked extensive questions about what they ate and drank over the previous 24 hours to come up with the results.

Among the findings:

— Young adults eat more fast food than their elders; 15 percent of calories for ages 20 to 39 and dropping to 6 percent for those 60 and older.

— Blacks get more of their calories from fast-food, 15 percent compared to 11 percent for whites and Hispanics.

— Young black adults got a whopping 21 percent from the likes of Wendy's, Taco Bell and KFC.

The figures are averages. Included in the calculations are some people who almost never eat fast food, as well as others who eat a lot of it.

The survey covers the years 2007 through 2010 and was released Thursday by the Centers for Disease Control and Prevention. The authors couldn't explain why the proportion of calories from fast food dropped from the 13 percent found in a survey for 2003 through 2006.

One nutrition professor cast doubts on the latest results, saying 11 percent seemed implausibly low. New York University's Marion Nestle said it wouldn't be surprising if some people under-reported their hamburgers, fries and milkshakes since eating too much fast food is increasingly seen as something of a no-no.

"If I were a fast-food company, I'd say 'See, we have nothing to do with obesity! Americans are getting 90 percent of their calories somewhere else!'" she said.

The study didn't include the total number of fast-food calories, just the percentage. Previous government research suggests that the average U.S. adult each day consumes about 270 calories of fast food — the equivalent of a small McDonald's hamburger and a few fries.

The new CDC study found that obese people get about 13 percent of daily calories from fast food, compared with less than 10 percent for skinny and normal-weight people.

There was no difference seen by household income, except for young adults. The poorest — those with an annual household income of less than $30,000 — got 17 percent of their calories from fast food, while the figure was under 14 percent for the most affluent 20- and 30-somethings with a household income of more than $50,000.

That's not surprising since there are disproportionately higher numbers of fast-food restaurants in low-income neighborhoods, Nestle said.

Fast food is accessible and "it's cheap," she said.

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3 Dead in Rolling Gun Battle on Vegas Strip

A drive-by shooting on the Las Vegas strip early this morning by the occupants of a Range Rover SUV, who shot at the occupants of a Maserati, caused a multi-car accident and car explosion that left three dead.

Police said that they believe a group of men riding in a black Range Rover Sport SUV pulled up alongside a Maserati around 4:20 a.m. today and fired shots into the car, striking the driver and passenger, according to Officer Jose Hernandez of the Las Vegas Metropolitan police department.

The Maserati then swerved through an intersection, hitting at least four other cars. One car that was struck, a taxi with a driver and passenger in it, caught on fire and burst into flames, trapping both occupants, Hernandez said.

Raw Video: Las Vegas Shooting Caught on Tape Watch Video

The SUV then fled the scene, according to cops.

The driver of the Maserati died from his gunshot wounds at University Medical Center shortly after the shooting, according to Sgt. John Sheahan.

The driver and passenger of the taxi both died in the car fire.

At least three individuals, including the passenger of the Maserati, were injured during the shooting and car crashes and are being treated at UMC hospital.

Police are scouring surveillance video from the area, including from the strip's major casinos, to try and identify the Range Rover and its occupants, according to police.

They do not yet know why the Range Rovers' occupants fired shots at the Maserati or whether the cars had local plates or were from out of state.

No bystanders were hit by gunfire, Hernandez said.

"We're currently looking for a black Range Rover Sport, with large black rims and some sort of dealership advertising or advertisement plates," Hernandez said. "This is an armed and dangerous vehicle."

The Las Vegas Convention and Visitors Authority had no immediate comment about the safety of tourists in the wake of the shooting today.

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British economy moves closer to new stimulus injection

LONDON: Britain's economy, at risk of a third recession in five years despite record employment, could see a fresh injection of cash stimulus, according to minutes of a Bank of England meeting published on Wednesday.

Bank of England (BoE) governor Mervyn King has called for more quantitative easing, minutes from the central bank's February meeting showed.

This helped push the pound to a near 16-month low point against the euro and London's FTSE 100 shares index to a five-year high in trading on Wednesday.

"2013 just goes from bad to worse for the pound as this morning's ... minutes came out with a surprisingly bearish vote of 6-3 against further asset purchases after 8-1 last time around," said Investec bank economist Victoria Clarke.

"This continues the snowball of gloominess which has been gathering pace against sterling with the downside risk now getting more worrying for the friendless pound."

Sterling has been hit in recent days also by market rumours that Standard & Poor's rating agency was preparing to cut its top AAA long-term credit rating for Britain. S&P has however declined to comment on the speculation.

Traders were meanwhile mulling over mixed British employment data.

According to the Office for National Statistics (ONS), employment in Britain has hit another record high point, with 29.73 million people in work at the end of December.

Despite this, the unemployment rate edged higher to 7.8 percent over the same period from 7.7 percent in the three months to November, the ONS added.

Recent data meanwhile showed that British gross domestic product shrank by 0.3 percent in the fourth quarter of 2012 compared with the previous three months.

Another contraction in the current first quarter of 2013 would place Britain in a so-called "triple-dip" recession.

Against such a backdrop, the BoE's nine-member Monetary Policy Committee voted 6-3 to keep its QE cash stimulus amount at £375 billion ($574 billion, 429 billion euros), according to minutes from their February 6-7 gathering.

However, outgoing chief King was joined by fellow MPC members David Miles and Paul Fisher in calling for another £25 billion in QE.

The British pound struck multi-month lows on Wednesday as the minutes stoked fresh concern over inflation and the economic outlook, dealers said.

Sterling slumped to 87.64 pence per euro -- which was the lowest level since late October 2011. It also dived to a seven-month nadir of $1.5282.

And on the stock market, London's FTSE 100 index of leading companies surged past 6,400 points for the first time in more than five years.

Under quantitative easing, the Bank of England creates cash that is used to purchase assets such as government and corporate bonds with the aim of boosting lending and in turn economic activity.

At the same time, QE can stoke inflation as it is tantamount to printing money.

British 12-month inflation stood at 2.7 percent in January for a record fourth month in a row -- above the government-set target of 2.0 percent.

"February's MPC minutes provided another clear demonstration of the Committee's increasingly flexible approach to inflation targeting," said Samuel Tombs, economist at the Capital Economics research group.

"We continue to think that more QE is only a few months away."

Wednesday's minutes added that BoE policymakers were unanimous earlier this month in freezing the bank's key interest rate at a record-low 0.50 percent -- where it has stood since March 2009, or almost four years.

-AFP/ac

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Major challenge before nation is to create jobs: Anand Sharma

MUMBAI: Commerce & industry minister Anand Sharma has admitted that the creation of jobs is a major challenge before the nation.

It is necessary to go back to a high rate of economic growth rate of around 9 per cent per annum, he added.

Speaking on the issue of corruption and scams, the minister claimed India has in place an "effective mechanism in the form of free judiciary to fix the problem".

Citing the example of the Satyam scam, Sharma said the government had facilitated the transfer of ownership in a transparent manner, at the same time protecting over 20,000 jobs. He said, "Unfortunately, only the negatives get magnified and the positives are not reported by the media."

Sharma was speaking at a CII interaction titled 'Transforming India: Role of Youth' before 500 students of St Xavier's College in Mumbai. "High growth is not an option but an imperative. The larger issue is not just numbers but the social dimension. If we fail to address the issue of job creation, the social cost will be unbearable," he warned.

In order to generate more employment, he said that the share of manufacturing in the GDP must climb up to 26 per cent from the current 16 per cent. Sharma believes the National Manufacturing Policy is one of the key instruments to achieve this goal. He briefed students about the National Skill Development Mission which has set an ambitious target of imparting job skills to 500 million persons by the year 2022.

Claiming that the Centre is serious about making India a major manufacturing hub, Sharma said the government is in the process of establishing 12 stand-alone world class industrial townships across the country. Terming the upcoming Delhi-Mumbai Industrial Corridor as the biggest industrial infrastructure project in the world at this time, Sharma said that nine of the 12 industrial townships fall under DMIC, with the 900 sq km Dholera Industrial Centre in Gujarat being the largest.

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Future science: Using 3D worlds to visualize data

CHICAGO (AP) — Take a walk through a human brain? Fly over the surface of Mars? Computer scientists at the University of Illinois at Chicago are pushing science fiction closer to reality with a wraparound virtual world where a researcher wearing 3D glasses can do all that and more.

In the system, known as CAVE2, an 8-foot-high screen encircles the viewer 320 degrees. A panorama of images springs from 72 stereoscopic liquid crystal display panels, conveying a dizzying sense of being able to touch what's not really there.

As far back as 1950, sci-fi author Ray Bradbury imagined a children's nursery that could make bedtime stories disturbingly real. "Star Trek" fans might remember the holodeck as the virtual playground where the fictional Enterprise crew relaxed in fantasy worlds.

The Illinois computer scientists have more serious matters in mind when they hand visitors 3D glasses and a controller called a "wand." Scientists in many fields today share a common challenge: How to truly understand overwhelming amounts of data. Jason Leigh, co-inventor of the CAVE2 virtual reality system, believes this technology answers that challenge.

"In the next five years, we anticipate using the CAVE to look at really large-scale data to help scientists make sense of that information. CAVEs are essentially fantastic lenses for bringing data into focus," Leigh said.

The CAVE2 virtual world could change the way doctors are trained and improve patient care, Leigh said. Pharmaceutical researchers could use it to model the way new drugs bind to proteins in the human body. Car designers could virtually "drive" their new vehicle designs.

Imagine turning massive amounts of data — the forces behind a hurricane, for example — into a simulation that a weather researcher could enlarge and explore from the inside. Architects could walk through their skyscrapers before they are built. Surgeons could rehearse a procedure using data from an individual patient.

But the size and expense of room-based virtual reality systems may prove insurmountable barriers to widespread use, said Henry Fuchs, a computer science professor at the University of North Carolina at Chapel Hill, who is familiar with the CAVE technology but wasn't involved in its development.

While he calls the CAVE2 "a national treasure," Fuchs predicts a smaller technology such as Google's Internet-connected eyeglasses will do more to revolutionize medicine than the CAVE. Still, he says large displays are the best way today for people to interact and collaborate.

Believers include the people at Marshalltown, Iowa-based Mechdyne Corp., which has licensed the CAVE2 technology for three years and plans to market it to hospitals, the military and in the oil and gas industry, said Kurt Hoffmeister of Mechdyne.

In Chicago, researchers and graduate students are creating virtual scenarios for testing in the CAVE2. The Mars flyover is created from real NASA data. The brain tour is based on the layout of blood vessels in a real patient.

Brain surgeon Ali Alaraj remembered the first time he viewed the brain using the CAVE2.

"You can walk between the blood vessels," said the University of Illinois College of Medicine neurosurgeon. "You can look at the arteries from below. You can look at the arteries from the side.... That was science fiction for me."

Would doctors process information faster with fewer errors using CAVE2? That's the question behind a proposed study that would compare CAVE2 to conventional methods of detecting brain aneurysms and determining proper treatment, said Andreas Linninger, UIC professor of bioengineering, chemical engineering and computer science.

But it's not all serious business at the lab.

In his spare time during the past two years, research assistant Arthur Nishimoto has been programming the CAVE2 computer with the specifications for the fictional Starship Enterprise. He now can walk around his life-size recreation of the TV spacecraft.

The original technology, introduced in the early 1990s, was called CAVE, which stood for Cave Automatic Virtual Environment and also cleverly referred to Plato's cave, the philosopher's analogy about shadows and reality. It was named by former lab co-directors Tom DeFanti and Dan Sandin.

The second generation of the CAVE, invented by Leigh and his collaborator Andy Johnson, has higher resolution. The project was funded by the National Science Foundation and the Department of Energy.

"It's fantastic to come to work. Every day is like getting to live a science fiction dream," Leigh said. "To do science in this kind of environment is absolutely amazing."

___

AP Medical Writer Carla K. Johnson can be reached at http://www.twitter.com/CarlaKJohnson.

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Pistorius Shots Said to Come From High Angle

At the second day of a bail hearing for Olympian Oscar Pistorius, a South African investigator who arrived at the scene of the Feb. 14 fatal shooting said that Reeva Steenkamp was shot from a high angle, which prosecutors say contradicts the runner's account that he was not wearing his prosthetics when he shot his girlfriend to death.

Pistorius, a double-amputee who runs on carbon-fiber blades, appeared in court for the second day in a row after his arrest in the death of girlfriend Steenkamp at his gated home in Pretoria, South Africa.

Read Oscar Pistorius' Full Statement to the Court

PHOTOS: Paralympic Champion Charged in Killing

Arresting officer Hilton Botha told the court today that the 26-year-old was standing in the master bathroom when he shot the supermodel, who was crouched in a defensive position behind a locked door in a smaller powder room. He also said that the bullets that were fired had been fired from high up, and the bullets seemed to be coming in a downward direction.

"[The angle] seems to me down. Fired down," Botha told the court.

Pistorius said Tuesday that he went to the bathroom and fired through the door before putting on his prosthetic legs.

Oscar Pistorius: Defense Presents New Evidence Watch Video

'Blade Runner' Appears in Court to Hear Murder Charges Watch Video

He said he mistakenly shot his girlfriend, thinking she was an intruder.

Prosecutors also said that they found two boxes of testosterone in the bedroom, although the defense disputes that, saying it's just herbal supplements.

The court also heard that a witness, someone about 2,000 feet away from Pistorius' home, heard nonstop fighting the morning of the shooting.

"We have a witness who says she heard non-stop shouting and fighting between 2 and 3 a.m.," said prosecutor Gerrie Nel, who added that another witness saw lights on at the time of the gunshots.

Pistorius says he spent a quiet night with Steenkamp before the shooting.

Nel said that Pistorius' actions and phone calls on the night indicate pre-planning, and that there was a "deliberate aiming of shots at the toilet from about 1.5 meters [about 5 feet]."

He says Steenkamp was shot on the right side of her body.

Officer Botha also said Pistorius should be considered a flight risk because investigators discovered that he has offshore bank accounts and a house in Italy.

"I think it would be hard to get him back," Botha told the court. "This is a very serious crime, shooting an unarmed woman behind closed door."

Prosecutors also say they may file more charges for unlicensed ammunition, after a special-caliber .38 round was found in a safe in Pistorius' home.

Botha told the court today that he arrived at Pistorius' home at 4:15 a.m. Valentine's Day to find Steenkamp already dead, dressed in a white shorts and a black vest, and covered in towels. The only thing that Pistorius said was, 'I thought it was a burglar,'" according to Botha.

The 26-year-old sprinter Tuesday denied that he willfully killed Steenkamp, telling the court that he shot the woman through his bathroom door because he believed she was an intruder.

Botha said today that he attended Steenkamp's postmortem, and that she had three entrance wounds: one on the head, one in the elbow and one in the hip.

Describing the scene to the court, Botha said that the shots fired into the bathroom were aimed at the toilet bowl.

The shooter "would have to walk into the bathroom and turn directly at the door to shoot at the toilet the way the bullets went," he said.

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Bulgarian government resigns amid growing protests

SOFIA (Reuters) - Bulgaria's government resigned on Wednesday after mass protests against high power prices and falling living standards, joining a long list of European administrations felled by austerity during four years of debt crisis.

Prime Minister Boiko Borisov, an ex-bodyguard who took power in 2009 on pledges to root out graft and raise incomes in the European Union's poorest member, faces a tough task of propping up eroding support ahead of an expected early election.

Wage and pension freezes and tax hikes have bitten deep in a country where earnings are less than half the EU average and tens of thousands of Bulgarians have rallied in protests that have turned violent, chanting "Mafia" and "Resign".

Moves by Borisov on Tuesday to blame foreign utility companies for the rise in the cost of heating homes was to no avail and an eleventh day of marches saw 15 people hospitalized and 25 arrested in clashes with police.

"My decision to resign will not be changed under any circumstances. I do not build roads so that blood is shed on them," said Borisov, who began his career guarding the Black Sea state's communist dictator Todor Zhivkov.

A karate black belt, Borisov has cultivated a Putin-like "can-do" image since he entered politics as Sofia mayor in 2005 and would connect with voters by showing up on the capital's rutted streets to oversee the repair of pot-holes.

But critics say he has often skirted due process, sometimes to the benefit of those close to him, and his swift policy U-turns have wounded the public's trust.

The spark for the protests was high electricity bills, after the government raised prices by 13 percent last July. But it quickly spilled over into wider frustration with Borisov and political elites with perceived links to shadowy businesses.

"He made my day," said student Borislav Hadzhiev in central Sofia, commenting on Borisov's resignation. "The truth is that we're living in an extremely poor country."

POLLS, PRICES

The prime minister's final desperate moves on Tuesday included cutting power prices and risking a diplomatic row with the Czech Republic by punishing companies including CEZ, moves which conflicted with EU norms on protection of investors and due process.

CEZ officials were hopeful on Wednesday that it would be able to avoid losing its distribution license after all and officials from the Bulgarian regulator said the company would not be punished if it dealt with breaches of procedure.

But shares in what is central Europe's largest publicly-listed company fell another 1 percent on Wednesday.

If pushed through, the fines for CEZ and two other foreign-owned firms will not encourage other investors in Bulgaria, who already have to navigate complicated bureaucracy and widespread corruption and organized crime to take advantage of Bulgaria's 10-percent flat tax rate.

Financial markets reacted negatively to the turbulence on Wednesday. The cost of insuring Bulgaria's debt rose to a three-month high and debt yields rose some 15 basis points, though the country's low deficit of 0.5 percent of gross domestic product means there is little risk to the lev currency's peg against the euro.

Borisov's interior minister indicated that elections originally planned for July would probably be pulled forward by saying that his rightist GERB party would not take part in talks to form a new government.

MILLIONS GONE

GERB's woes have echoes in another ex-communist EU member, Slovenia, where demonstrators have taken to the streets and added pressure to a crumbling conservative government.

A small crowd gathered in support of Borisov outside Sofia's parliament, which is expected to approve his resignation on Thursday, while bigger demonstrations against the premier were expected in the evening.

Unemployment in the country of 7.3 million is far from the highs hit in the decade after the end of communism but remains at 11.9 percent. Average salaries are stuck at around 800 levs ($550) a month and millions have emigrated, leaving swathes of the country depopulated and little hope for those who remain.

GERB's popularity has held up well and it still led in the latest polls before protests grew in size last weekend, but analysts say the opposition Socialists should draw strength from the demonstrations.

The leftists, successors to Bulgaria's communist party, have proposed tax cuts and wage hikes and are likely to raise questions about public finances if elected.

(Additional reporting by Angel Krasimirov; editing by Patrick Graham)

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