Stocks end higher for sixth straight week, tech leads

NEW YORK (Reuters) - The Nasdaq composite stock index closed at a 12-year high and the S&P 500 index at a five-year high, boosted by gains in technology shares and stronger overseas trade figures.

The S&P 500 also posted a sixth straight week of gains for the first time since August.

The technology sector led the day's gains, with the S&P 500 technology index <.splrct> up 1.0 percent. Gains in professional network platform LinkedIn Corp and AOL Inc after they reported quarterly results helped the sector.

Shares of LinkedIn jumped 21.3 percent to $150.48 after the social networking site announced strong quarterly profits and gave a bullish forecast for the year.

AOL Inc shares rose 7.4 percent to $33.72 after the online company reported higher quarterly profit, boosted by a 13 percent rise in advertising sales.

Data showed Chinese exports grew more than expected, a positive sign for the global economy. The U.S. trade deficit narrowed in December, suggesting the U.S. economy likely grew in the fourth quarter instead of contracting slightly as originally reported by the U.S. government.

"That may have sent a ray of optimism," said Fred Dickson, chief market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.

Trading volume on Friday was below average for the week as a blizzard swept into the northeastern United States.

The U.S. stock market has posted strong gains since the start of the year, with the S&P 500 up 6.4 percent since December 31. The advance has slowed in recent days, with fourth-quarter earnings winding down and few incentives to continue the rally on the horizon.

"I think we're in the middle of a trading range and I'd put plus or minus 5.0 percent around it. Fundamental factors are best described as neutral," Dickson said.

The Dow Jones industrial average <.dji> ended up 48.92 points, or 0.35 percent, at 13,992.97. The Standard & Poor's 500 Index <.spx> was up 8.54 points, or 0.57 percent, at 1,517.93. The Nasdaq Composite Index <.ixic> was up 28.74 points, or 0.91 percent, at 3,193.87, its highest closing level since November 2000.

For the week, the Dow was down 0.1 percent, the S&P 500 was up 0.3 percent and the Nasdaq up 0.5 percent.

Shares of Dell closed at $13.63, up 0.7 percent, after briefly trading above a buyout offering price of $13.65 during the session.

Dell's largest independent shareholder, Southeastern Asset Management, said it plans to oppose the buyout of the personal computer maker, setting up a battle for founder Michael Dell.

Signs of economic strength overseas buoyed sentiment on Wall Street. Chinese exports grew more than expected in January, while imports climbed 28.8 percent, highlighting robust domestic demand. German data showed a 2012 surplus that was the nation's second highest in more than 60 years, an indication of the underlying strength of Europe's biggest economy.

Separately, U.S. economic data showed the trade deficit shrank in December to $38.5 billion, its narrowest in nearly three years, indicating the economy did much better in the fourth quarter than initially estimated.

Earnings have mostly come in stronger than expected since the start of the reporting period. Fourth-quarter earnings for S&P 500 companies now are estimated up 5.2 percent versus a year ago, according to Thomson Reuters data. That contrasts with a 1.9 percent growth forecast at the start of the earnings season.

Molina Healthcare Inc surged 10.4 percent to $31.88 as the biggest boost to the index after posting fourth-quarter earnings.

The CBOE Volatility index <.vix>, Wall Street's so-called fear gauge, was down 3.6 percent at 13.02. The gauge, a key measure of market expectations of short-term volatility, generally moves inversely to the S&P 500.

"I'm watching the 14 level closely" on the CBOE Volatility index, said Bryan Sapp, senior trading analyst at Schaeffer's Investment Research. "The break below it at the beginning of the year signaled the sharp rally in January, and a rally back above it could be a sign to exercise some caution."

Volume was roughly 5.6 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.

Advancers outpaced decliners on the NYSE by nearly 2 to 1 and on the Nasdaq by almost 5 to 3.

(Additional reporting by Angela Moon; Editing by Bernadette Baum, Nick Zieminski, Kenneth Barry and Andrew Hay)

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Tunisian Islamists rally to show "power of street"

TUNIS (Reuters) - Thousands of Islamists marched in Tunis on Saturday in a show of strength, a day after the funeral of an assassinated secular politician drew the biggest crowds seen on the streets since Tunisia's uprising two years ago.

About 6,000 supporters of the ruling Ennahda movement rallied to back their leader Rachid al-Ghannouchi, who was the target of angry slogans raised by mourners at Friday's mass funeral of Chokri Belaid, a rights lawyer and opposition leader.

"The people want Ennahda again," the Islamists chanted, waving Tunisian and party flags as they marched towards the Interior Ministry on Habib Bourguiba Avenue in the city centre.

The demonstration was dwarfed by the tens of thousands who had turned out in Tunis and other cities to honor Belaid and to protest against the Islamist-led government the day before, shouting slogans that included "We want a new revolution".

Belaid's killing by an unidentified gunman on Wednesday, Tunisia's first such political assassination in decades, has shaken a nation still seeking stability after the overthrow of veteran strongman Zine al-Abidine Ben Ali in January 2011.

The family of the slain politician has accused Ennahda of responsibility for his killing. The party denies any hand in it.

"We are here to support legitimacy, but if you prefer the power of the street, look at the streets today, we have this power," Lotfi Zitoun, an Ennahda leader, said in a speech to the Islamist demonstrators in Tunis.

Tunisia's political transition has been more peaceful than those in other Arab nations such as Egypt, Libya and Syria, but tensions are running high between Islamists elected to power and liberals who fear the loss of hard-won liberties.

FREEDOMS THREATENED

"We have gained things - the freedom of expression, the freedom to meet, to form organizations, parties, to work in the open," said Radhi Nasraoui, a veteran human rights campaigner.

"The problem is that these freedoms are still threatened, and there are attempts (by Islamists) to touch the gains of women," she told Reuters.

After Belaid's death, Prime Minister Hamadi Jebali promised to form a non-partisan, technocratic cabinet to run the country until an election could take place, despite complaints from within his own Ennahda party and its two junior non-Islamist coalition partners that he had failed to consult them.

Jebali told France 24 television on Saturday that he would resign if political parties refused to support his proposal, which he said was intended to "save the country from chaos".

The state news agency TAP said the prime minister would unveil his new government next week.

Secular groups have accused the Islamist-led government of a lax response to attacks by ultra-orthodox Salafi Islamists on cinemas, theatres, bars and individuals in recent months.

Prolonged political uncertainty and street unrest could damage an economy that relies on tourism. Unemployment and other economic grievances fuelled the revolt against Ben Ali in 2011.

Tunisia's stock exchange has fallen 3.32 percent since Belaid's assassination.

France, the former colonial power, ordered its schools in Tunis to stay closed on Friday and Saturday, warning its nationals to stay clear of potential flashpoints in the capital.

Some of the Islamist demonstrators shouted "France, out", in response to remarks by French Interior Minister Manuel Valls which were rejected by Jebali, the prime minister, on Friday.

"We must support all those who fight to maintain values and remain aware of the dangers of despotism, of Islamism that threatened those values today through obscurantism," Valls had said on Europe 1 radio on Thursday in comments on Tunisia.

"There is an Islamic fascism which is on the rise in many places."

Tunisian Foreign Minister Rafik Abdessalem described Valls's remarks as "worrying and unfriendly".

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Buzzmakers: David Beckham Strips and Miley Cyrus Loves Her Hair

What had ET readers buzzing this week?

1. David Beckham Strips Down to His Skivvies

He may have a new job with the Paris Saint-Germain team but David Beckham is still finding time to strip down for his American fans. The overwhelmingly good-looking soccer dad shared photos from his new underwear line that he, of course, is modeling. Posting not one, but two shirtless shots, Beckham wrote on his Facebook page: "Here are a few campaign shots from my latest H&M range."

Click here for a closer look at the fashionisto's sexy photos!

2. Miley Cyrus: I'll Never Have Long Hair Again

Though Miley Cyrus' super-short 'do definitely has its fair share of haters, according to Miley herself, she has no intentions of growing it out -- ever.

"You will never see me with long hair again!," she tells E! News. "My fiancé [Liam Hemsworth] loves it…It's so easy and [I] don't need to wash it. It looks better grungy and not washing it."

And clearly, she doesn't miss her formerly long locks "in any way."

"I feel like I had bun every day of my life," she says, referring to her often-copied topknot. "I hated the extensions hair -- that's sewn into your head. It's creepy."

Miley first debuted the drastic cut in August, and seems to be cutting her hair even shorter progressively.

3. Stars Flock to Super Bowl XLVII

Alicia Keys and Jennifer Hudson kicked off the Super Bowl Sunday with stunning renditions of the national anthem and America the Beautiful (respectively).

Check out the pics here!

4. Designer: Beyonce Was 'Losing Weight Every Day'

One of the most anticipated events at this year's Super Bowl was Beyonce's performance during the halftime show and ET spoke exclusively to the superstar's costume designer about her rigorous rehearsals and how much work went into her various outfits.

"When a performer is working so vigorously, they're shrinking constantly, and so she was losing weight every day," fashion designer Rubin Singer told ET. "So we had to keep taking it in and taking it in and taking it in and doing tweaks and changes."

Singer said he was based in New Orleans all last week preparing for Beyonce's Super Bowl performance and that a team of 14 people put about 200 man hours into producing and tweaking the costumes. "When you have the dress rehearsals and you actually get to see the footage the next day, or that night, and you see all the little nuances that you need to change," he said.

In addition to Beyonce's costumes, Singer also created the outfits for former Destiny's Child band member Michelle Williams as well as the jackets for the show's 120 backup dancers.

5. Jennifer Love Hewitt Debuts Lingerie Music Video

Jennifer Love Hewitt's Lifetime series The Client List is known for pushing the envelope with racy story lines and revealing wardrobe. In advance of the show's upcoming second season, we've got a sneak peek of a sexy new music video in which Jennifer sings, struts and strips down to lingerie!

"I had a dream about it in the middle of the night," Jennifer explains about how the video came about. She said she loves the song -- I'm a Woman from the Broadway play Smokey Joe's Cafe -- and thought it would be fun to do something burlesque-oriented "to shake things up a bit."

In the show, Jennifer plays a Texas single mother who secretly also provides sexual favors for money at a day spa. She said one of the things she's most proud of about the show is that she feels it portrays the subject matter in a way that is not degrading to women. "I feel like we've been able to take an unconventional story line and make it female empowerment in some weird way."

Watch the video for scenes from the steamy music video and also to hear Jennifer talk about getting in shape for the shoot and then splurging at the end.

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After early start, worst of flu season may be over

NEW YORK (AP) — The worst of the flu season appears to be over.

The number of states reporting intense or widespread illnesses dropped again last week, and in a few states there was very little flu going around, U.S. health officials said Friday.

The season started earlier than normal, first in the Southeast and then spreading. But now, by some measures, flu activity has been ebbing for at least four weeks in much of the country. Flu and pneumonia deaths also dropped the last two weeks, the Centers for Disease Control and Prevention reported.

"It's likely that the worst of the current flu season is over," CDC spokesman Tom Skinner said.

But flu is hard to predict, he and others stressed, and there have been spikes late in the season in the past.

For now, states like Georgia and New York — where doctor's offices were jammed a few weeks ago — are reporting low flu activity. The hot spots are now the West Coast and the Southwest.

Among the places that have seen a drop: Lehigh Valley Hospital-Cedar Crest in Allentown, Pa., which put up a tent outside its emergency room last month to help deal with the steady stream of patients. There were about 100 patients each day back then. Now it's down to 25 and the hospital may pack up its tent next week, said Terry Burger, director of infection control and prevention for the hospital.

"There's no question that we're seeing a decline," she said.

In early December, CDC officials announced flu season had arrived, a month earlier than usual. They were worried, saying it had been nine years since a winter flu season started like this one. That was 2003-04 — one of the deadliest seasons in the past 35 years, with more than 48,000 deaths.

Like this year, the major flu strain was one that tends to make people sicker, especially the elderly, who are most vulnerable to flu and its complications

But back then, that year's flu vaccine wasn't made to protect against that bug, and fewer people got flu shots. The vaccine is reformulated almost every year, and the CDC has said this year's vaccine is a good match to the types that are circulating. A preliminary CDC study showed it is about 60 percent effective, which is close to the average.

So far, the season has been labeled moderately severe.

Like others, Lehigh Valley's Burger was cautious about making predictions. "I'm not certain we're completely out of the woods," with more wintry weather ahead and people likely to be packed indoors where flu can spread around, she said.

The government does not keep a running tally of flu-related deaths in adults, but has received reports of 59 deaths in children. The most — nine — were in Texas, where flu activity was still high last week. Roughly 100 children die in an average flu season, the CDC says

On average, about 24,000 Americans die each flu season, according to the CDC.

According to the CDC report, the number of states with intense activity is down to 19, from 24 the previous week, and flu is widespread in 38 states, down from 42.

Flu is now minimal in Florida, Kentucky, Maine, Montana, New Hampshire and South Carolina.

___

Online:

CDC: http://www.cdc.gov/flu/

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Wall Street extends gains, Nasdaq near 12-year high

NEW YORK (Reuters) - Stocks extended gains on Friday, with the Nasdaq rising 1 percent, putting it within close reach of a 12-year high.

The Dow Jones industrial average <.dji> gained 47.66 points, or 0.34 percent, to 13,991.71. The Standard & Poor's 500 Index <.spx> rose 7.47 points, or 0.49 percent, to 1,516.86. The Nasdaq Composite Index <.ixic> was up 30.23 points, or 0.96 percent, at 3,195.37.

If the Nasdaq rises above 3,196.93, it would be the highest level since November 2000.

(Reporting by Leah Schnurr; Editing by Bernadette Baum)

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Violence mars funeral of Tunisian opposition leader

TUNIS (Reuters) - Tens of thousands of Tunisians turned out on Friday to mourn secular opposition leader Chokri Belaid, whose assassination has deepened a political crisis and led to violent protests against the Islamist-led government.

Teargas and smoke from burning cars at times wafted over the Tunis cemetery where Belaid was buried in the country's biggest funeral since independence leader Habib Bourguiba died in 2000.

Braving chilly rain, at least 50,000 people gathered to honor Belaid in his home district of Jebel al-Jaloud in the capital, chanting anti-Islamist and anti-government slogans.

Belaid's assassination has shocked a country which had hitherto experienced a relatively peaceful political transition since an uprising that inspired others around the Arab world.

It has heightened tensions between dominant Islamists and their secular opponents against a backdrop of frustration at the lack of social and economic progress since President Zine al-Abidine Ben Ali was forced to flee the country in January 2011.

"The people want a new revolution," shouted mourners in Tunis, who also sang the national anthem.

Violence erupted near the cemetery as police fired teargas at demonstrators who threw stones and set cars ablaze. Police also used teargas against protesters near the Interior Ministry, a frequent flashpoint for clashes in the Tunisian capital.

Police arrested 150 people during the disturbances in Tunis, Interior Ministry spokesman Lotfi Hidouri said.

Crowds surged around an open army truck carrying Belaid's coffin, draped in a red and white Tunisian flag, from a cultural center in Jebel al-Jaloud towards the leafy Jallaz cemetery, as a security forces helicopter flew overhead.

"Belaid, rest in peace, we will continue the struggle," crowds chanted, holding portraits of the politician killed near his home on Wednesday by a gunman who fled on a motorcycle.

Some demonstrators denounced Rachid Ghannouchi, leader of the ruling Islamist Ennahda party. "Ghannouchi, assassin, criminal," they chanted. "Tunisia is free, terrorism out."

CLASHES IN GAFSA

Police fired teargas to disperse anti-government protesters throwing stones and petrol bombs in the southern mining town of Gafsa, a stronghold of support for Belaid, witnesses said.

Crowds there had chanted "The people want the fall of the regime", a slogan first used against Ben Ali.

In Sidi Bouzid, the southern town where the revolt against the ousted strongman began, about 10,000 marched to mourn Belaid and shout slogans against Ennahda and the government.

Banks, factories and some shops were closed in Tunis and other cities in response to a strike called by unions in protest at Belaid's killing, but buses were running normally.

Tunis Air canceled all its flights because of the strike, a spokesman for the national airline said, adding that normal service would resume on Saturday.

After Belaid's assassination, Prime Minister Hamdi Jebali, an Islamist, said he would dissolve the government and form a cabinet of technocrats to rule until elections could be held.

But his own Ennahda party and its secular coalition partners complained they had not been consulted, casting doubt over the status of the government and compounding political uncertainty.

On Friday Jebali reiterated his plan for a cabinet of technocrats, saying this would not need the approval of the National Constituent Assembly because he was not dissolving his government, but would replace all of its members.

"This government is ready," he told reporters, without disclosing the names of his new ministers.

"HOPE EXISTS"

No one has claimed responsibility for the killing of Belaid, a lawyer and secular opposition figure.

His family have blamed Ennahda but the party has denied any hand in the shooting. Crowds have attacked several Ennahda party offices in Tunis and other cities in the past two days.

"Hope still exists in Tunisia," Fatma Saidan, a noted Tunisian actor, told Reuters at Belaid's funeral. "We will continue to struggle against extremism and political violence."

She called for national unity, saying: "We are ready to accept Islamists, but they don't accept us."

While Belaid had only a modest political following, his criticism of Ennahda policies spoke for many Tunisians who fear religious radicals are bent on snuffing out freedoms won in the first of the revolts that rippled through the Arab world.

Secular groups have accused the Islamist-led government of a lax response to attacks by ultra-orthodox Salafi Islamists on cinemas, theatres and bars in recent months.

The economic effect of political uncertainty and street unrest could be serious in a country which has yet to draft a new constitution and which relies heavily on the tourist trade.

Mohamed Ali Toumi, president of the Tunisian Federation of Travel Agencies, described the week's events as a catastrophe that would have a negative impact on tourism, but he told the national news agency TAP no cancellations had been reported yet.

France, which had already announced the closure of its schools in Tunis on Friday and Saturday, urged its nationals to stay clear of potential flashpoints in the capital.

The cost of insuring Tunisian government bonds against default rose to its highest level in more than four years this week and ratings agency Fitch said it could further downgrade Tunisia if political instability continues or worsens.

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What If the Wii U Were Just Its Tablet Controller? Meet the 7-Inch Wikipad

The Wii U made a splash with its personal tablet controllers. Sandwiching a 6.2-inch touchscreen in between a regular analog stick and buttons, the Wii U’s GamePad is like a Nintendo DS’ lower touchscreen for a home console, and even lets you play games right on its screen. It streams those games from the Wii U itself, though, meaning it’s basically useless when it’s out of range of the console.

Imagine a Wii U GamePad that was a self-contained console, and used an iPad-style capacitive touchscreen instead of a Nintendo DS-style resistive one. That’s the new 7-inch Wikipad in a nutshell, at least hardware-wise. It’s not made by Nintendo, however, and in terms of what games it plays — and how much it costs — it’s still very different.

Hardware differences

Besides being slightly taller and wider and a lot thicker than a GamePad, the Wikipad has one more major difference: The tablet part is detachable. Unlatch it from the surrounding game controller part, and it becomes a 7-inch Android tablet with an NVIDIA Tegra 3 processor and 16 GB of flash memory, sort of like Google‘s popular Nexus 7.

It’s still a 7-inch Android tablet when the controller part is attached, though, and that’s the biggest difference.

Android software

Despite its resemblance to a certain popular game console accessory, the Wikipad is still a tablet running Google’s open-source Android operating system, when it comes down to it. It just happens to be one (of several) which includes its own game controller. And while some well-known games — like a few of Sega’s Sonic the Hedgehog titles and Square-Enix’s Final Fantasy games — have made it to the Google Play app store, for the most part you’d be playing mobile games, like the included Dead Trigger and ShadowGun: Dead Zone. Which is unfortunate, because most Android games don’t support game controllers, seeing as how they were designed for touchscreen-only gadgets like the Kindle Fire and the Nexus 7.

On the plus side

Many of top-tier mobile publisher Gameloft’s titles support game controllers, which is unsurprising since they tend to be knockoffs of popular console games like Halo and Modern Warfare. And unlike most Android gadgets, the Wikipad is PlayStation Certified, which means it can run PlayStation Mobile games (small minigames designed for the PS Vita) plus a handful of old PSone titles.

Wikipad’s website has a list of more than 60 games which currently support its controller. You may have to consult it before playing each one, however, in order to find out which button does what.

Still worth getting?

The Wikipad will be available “from leading retailers in spring 2013 at a launch price of $ 249,” according to the company’s press release. That’s about $ 50 more than you’d pay for a similarly-specced Nexus 7, which doesn’t have PlayStation Mobile, expandable memory via microSD card slot, or a game controller. The Nexus 7 has 32 GB and 3G options available, however, and you can always buy a separate game controller for it.

A 10-inch Wikipad was announced late last year, but never made it to market. According to Droid Gamers, “some flaws were found during production.”

Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.

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Health officials: Worst of flu season may be over

NEW YORK (AP) — Health officials say the worst of the flu season appears to be over.

The number of states reporting intense or widespread flu dropped again last week. By some measures, flu activity has been ebbing for at least four weeks. Deaths from the flu or pneumonia have been dropping for two weeks.

The Centers for Disease Control and Prevention released the latest flu numbers on Friday.

This flu season started about a month earlier than normal. Outbreaks began in the late fall, and the dominant flu strain is one that tends to make people sicker.

It's been nine years since a flu season started like this one, and that proved to be one of the deadliest. So far, this season has been labeled moderately severe.

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Wall Street dips on renewed euro zone concerns

NEW YORK (Reuters) - Shares fell on Thursday after the euro currency dropped against the safe-haven dollar and yen, raising worries about Europe's outlook and curbing investors' appetite for risky assets such as stocks.

The euro sank after European Central Bank President Mario Draghi said the exchange rate was important to growth and price stability, which investors took as a sign the bank is concerned about the euro's advance in recent days.

U.S. stocks have been in an uninterrupted uptrend for most of the year, with the S&P 500 gaining more than 5 percent for 2013.

"The market is a bit shaky on the back of some of the Draghi comments" amid worry the strength of the euro might hamper economic recovery, said Andre Bakhos, director of market analytics at LEK Securities in New York.

"Whether this ignites renewed concerns about the euro debt struggles and Europe in general is yet to be seen, but the market is looking for any reason to take a profit. It is just consolidating near multi-year highs, taking a respite before we advance higher."

The Dow Jones industrial average <.dji> was down 92.05 points, or 0.66 percent, at 13,894.47. The Standard & Poor's 500 Index <.spx> was down 7.93 points, or 0.52 percent, at 1,504.19. The Nasdaq Composite Index <.ixic> was down 14.95 points, or 0.47 percent, at 3,153.52.

Housing and retail stocks were the day's biggest decliners. The housing sector index <.hgx> was off 1 percent and the S&P housing index <.spxrt> was off 0.5 percent.

Top U.S. retailers reported strong January sales after offering compelling merchandise that drew in shoppers facing a hit to their take-home pay from higher payroll taxes.

Macy's Inc rose 1.3 percent to $40.01 after reporting January same store sales rose 11.7 percent.

But Ann Inc dropped 6.6 percent to $30.63 after forecasting fourth-quarter sales below analysts' expectations.

Fund manager David Einhorn's Greenlight Capital on Thursday said it has sued Apple Inc and said the company needs to do more to unlock value for shareholders. Apple shares gained 1.2 percent at $460.16.

Akamai Technologies Inc lost 15.6 percent to $35.06 as the worst performer on the S&P 500 after the Internet content delivery company forecast current-quarter revenue below analysts' expectations.

Initial jobless claims dipped last week, with the four-week moving average falling to its lowest level since March 2008, signaling the economy continues to recover slowly.

A separate report said fourth-quarter productivity registered its biggest drop in nearly two years, while unit labor costs jumped 4.5 percent, more than economists expected.

According to Thomson Reuters data through Thursday morning, of 317 companies in the S&P 500 that have reported earnings, 69 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.

Fourth-quarter earnings for S&P 500 companies rose 5 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

(Additional reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)

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Khamenei rebuffs U.S. offer of direct talks

DUBAI (Reuters) - Iran's highest authority, Ayatollah Ali Khamenei, on Thursday slapped down an offer of direct talks made by U.S. Vice President Joe Biden this week, saying they would not solve the problem between them.

"Some naive people like the idea of negotiating with America, however, negotiations will not solve the problem," Khamenei said in a speech to officials and members of Iran's air force carried on his official website.

"If some people want American rule to be established again in Iran, the nation will rise up to face them," he said.

"American policy in the Middle East has been destroyed and Americans now need to play a new card. That card is dragging Iran into negotiations."

Khamenei made his comments just days after Joe Biden said the United States was prepared to meet bilaterally with the Iranian leadership. "That offer stands but it must be real and tangible," Biden said in a speech in Munich.

With traditional fiery rhetoric, Khamenei lambasted Biden's offer, saying that since the 1979 revolution the United States had gravely insulted Iran and continued to do so with its threat of military action.

"You take up arms against the nation of Iran and say: 'negotiate or we fire'. But you should know that pressure and negotiations are not compatible and our nation will not be intimidated by these actions," he added.

Relations between Iran and the United States were severed in 1979 after the overthrow of Iran's pro-western monarchy and diplomatic meetings between officials have since been very rare.

ALL OPTIONS STILL "ON THE TABLE"

Currently U.S.-Iran contact is limited to talks between Tehran and a so-called P5+1 group of powers on Iran's disputed nuclear program which are to resume on February 26 in Kazakhstan.

Israel's Deputy Prime Minister Dan Meridor said he was skeptical the negotiations in Almaty could yield a result, telling Israel Radio that the United States needed to demonstrate to Iran that "all options were still on the table".

Israel, widely recognized to be the only nuclear power in the Middle East, has warned it could mount a pre-emptive strike on Iranian atomic sites. Israel sees its existence as directly threatened by the prospect of an nuclear-armed Iran, given Tehran's refusal to recognize the existence of the Jewish state.

"The final option, this is the phrasing we have used, should remain in place and be serious," said Meridor.

"The fact that the Iranians have not yet come down from the path they are on means that talks ...are liable to bring about only a stalling for time," he said.

Iran maintains its nuclear program is entirely peaceful but Western powers are concerned it is intent on developing a weapons program.

Many believe a deal on settling the nuclear issue is impossible without a U.S.-Iranian thaw. But any rapprochement would require direct talks addressing many sources of mutual mistrust that have lingered since Iran's 1979 Islamic Revolution and the subsequent U.S. embassy hostage crisis in Tehran.

Moreover, although his re-election last November may give President Barack Obama a freer hand to pursue direct negotiations, analysts say Iran's own presidential election in June may prove an additional obstacle to progress being made.

(Additional reporting by Dan Williams; Editing by William Maclean and Jon Boyle)

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Ginnifer Goodwin Once Upon A Time Interview Listerine 21 Day Challenge

For Ginnifer Goodwin, joining the cast of Once Upon A Time has resulted in more happy endings than she could have dreamed of. Not only is the fantastic fantasy series one of ABC's biggest hits, but the show's popularity has allowed Goodwin to use her celebrity status to bring attention to worthy causes. Like she did on February 5 by helping Listerine kick off their 21 Day Challenge!

To help Americans develop better oral hygiene, and improve access to dental care for children in need, Listerine donated $21,000 after Goodwin's "swish," and will continue to donate every time someone signs up for the challenge on Facebook!

ETonline caught up with Goodwin to talk about this mighty cause and this even mightier season of Once Upon A Time (particularly what you can expect from the introduction of Snow White's mother)!

ETonline: How'd you come to partner with Listerine?

Ginnifer Goodwin: I made some friends at Listerine and they taught me a little bit about oral care. That half of adults suffer from oral disease, that the number one chronic disease among children is oral disease, that we're only taking care of 25% of our mouths when brushing alone and there are more germs in your mouth than there are people on the planet.

ETonline: Well that's a terrifying statistic.

Goodwin: Oh yeah, I immediately had the heebie jeebies when they told me that. So then they offered to donate $21,000 to Oral Health America for my first swish of the Listerine 21 Day Challenge. The thinking is it takes 21 days to form a habit and implementing that into a morning and evening routine, one can assume it will become a lifetime commitment. It's quick, easy, and inexpensive -- plus you prevent so many problems. I really couldn't turn down such a generous offer.

RELATED - TV Shows We'd Like To See Become Movies

ETonline: What does it mean to you to have reached a place professionally where you're able to raise so much money simply by rinsing your mouth with Listerine?

Goodwin: It's incredibly humbling, and I'm glad you're bringing it up because it's important for me to remember. A lot of times, I think that what I do for a living has no integrity. Once Upon A Time has changed that to a certain extent because the reaction we get from children out in the world is so fulfilling, I can not even articulate it. There's nothing like being greeted as Snow White by a hyperventilating child versus Ginnifer Goodwin. It makes me feel like Santa Claus. But often times, I feel like I'm so blessed, it's not fair. That what I'm doing is not contributing to the good of the world. That acting is self-centered and elitist in many way, so to be able to participate in something that gives back is so important to me. That's where I really get my rocks off. I like partnering with companies that have really accessible, really easy changes we can all make that create a difference.

ETonline: When you initially signed on to Once Upon A Time, did you, in any way, anticipate it could be as successful, creatively fulfilling and resonant with fans as it has been?

Goodwin: I never dreamed our numbers would be what they are. I knew the show would be special and I knew it was risky, so I knew it would be creatively fulfilling. And I knew I would be a geeky fan of it and that even if it only had a tiny niche audience, I would be jealous watching the show if I wasn't on it. So I knew I had to be a part of it so I wasn't green with envy every Sunday.

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ETonline: Is that what fuels which projects you sign on for?

Goodwin: Sometimes. There's always a different reason. Sometimes I make very selfish choices; like I did Once Upon A Time for my inner 8-year-old and my hypothetical future child. I've done some movies because I would regret them if I didn't, but other projects I've done because they've scared me or if I felt I needed to do a big romantic comedy to help me professionally. Then I'll take a teeny movie when I need to work on myself and become a better actor.

ETonline: I've really loved this season ... except maybe for the pink sweater-set Snow was stuck in for so many weeks.

Goodwin: Oh my god! Thank you so much for hating it with me! I truly kept joking, except I was serious, that I desperately wanted to have an actual bonfire where I burned that freaking costume. Even the costume department despised it in the end. Thank God my character had some off-camera makeover.

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ETonline: Now that she and Charming have their memories back, what's the next hurdle in their relationship?

Goodwin: Thus far, based on what we've filmed, it’s the first time they're realizing that an obstacle could be self-created as opposed to it coming from an external source because he wants to go back and she wants to stay. They're struggling right now with whether or not this particular obstacle is surmountable. Selfishly I hope that Snow White and Prince Charming end up living happily ever after -- I'm not quite sure what our version of Snow White stands for if she's not going to get that.

ETonline: Snow's mother also becomes a major player in the show, via flashbacks, over the coming weeks. What excites you about that storyline?

Goodwin: Snow White has some mother issues, and they have affected her self-definition. I think it's going to be very exciting for the audience to see what has impacted Snow White in her past and that will effect how we feel about Snow White's relationship with her own daughter. And, totally unrelated to actual storylines, I'm excited for the incredible guest stars we have coming up. Like Lesley Nichol from Downton Abbey! Mrs. Pattmore joined our cast!!!! I freaked the fudge out all over her.

ETonline: You better hope your shows stay in adjacent timeslots. I worry about you should OUAT and Downton overlap on Sunday nights.

Goodwin: Yeah, no. I won't ever let that happen. I will throw myself on the grave of Walt Disney and beg for that to never happen.

For more info on Listerine's 21 Day Challenge, click here! Once Upon A Time airs Sundays at 8 p.m. on ABC.

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Southern diet, fried foods, may raise stroke risk

Deep-fried foods may be causing trouble in the Deep South. People whose diets are heavy on them and sugary drinks like sweet tea and soda were more likely to suffer a stroke, a new study finds.

It's the first big look at diet and strokes, and researchers say it might help explain why blacks in the Southeast — the nation's "stroke belt" — suffer more of them.

Blacks were five times more likely than whites to have the Southern dietary pattern linked with the highest stroke risk. And blacks and whites who live in the South were more likely to eat this way than people in other parts of the country were. Diet might explain as much as two-thirds of the excess stroke risk seen in blacks versus whites, researchers concluded.

"We're talking about fried foods, french fries, hamburgers, processed meats, hot dogs," bacon, ham, liver, gizzards and sugary drinks, said the study's leader, Suzanne Judd of the University of Alabama in Birmingham.

People who ate about six meals a week featuring these sorts of foods had a 41 percent higher stroke risk than people who ate that way about once a month, researchers found.

In contrast, people whose diets were high in fruits, vegetables, whole grains and fish had a 29 percent lower stroke risk.

"It's a very big difference," Judd said. "The message for people in the middle is there's a graded risk" — the likelihood of suffering a stroke rises in proportion to each Southern meal in a week.

Results were reported Thursday at an American Stroke Association conference in Honolulu.

The federally funded study was launched in 2002 to explore regional variations in stroke risks and reasons for them. More than 20,000 people 45 or older — half of them black — from all 48 mainland states filled out food surveys and were sorted into one of five diet styles:

—Southern: Fried foods, processed meats (lunchmeat, jerky), red meat, eggs, sweet drinks and whole milk.

—Convenience: Mexican and Chinese food, pizza, pasta.

—Plant-based: Fruits, vegetables, juice, cereal, fish, poultry, yogurt, nuts and whole-grain bread.

—Sweets: Added fats, breads, chocolate, desserts, sweet breakfast foods.

—Alcohol: Beer, wine, liquor, green leafy vegetables, salad dressings, nuts and seeds, coffee.

"They're not mutually exclusive" — for example, hamburgers fall into both convenience and Southern diets, Judd said. Each person got a score for each diet, depending on how many meals leaned that way.

Over more than five years of follow-up, nearly 500 strokes occurred. Researchers saw clear patterns with the Southern and plant-based diets; the other three didn't seem to affect stroke risk.

There were 138 strokes among the 4,977 who ate the most Southern food, compared to 109 strokes among the 5,156 people eating the least of it.

There were 122 strokes among the 5,076 who ate the most plant-based meals, compared to 135 strokes among the 5,056 people who seldom ate that way.

The trends held up after researchers took into account other factors such as age, income, smoking, education, exercise and total calories consumed.

Fried foods tend to be eaten with lots of salt, which raises blood pressure — a known stroke risk factor, Judd said. And sweet drinks can contribute to diabetes, the disease that celebrity chef Paula Deen — the queen of Southern cuisine — revealed she had a year ago.

The National Institute of Neurological Disorders and Stroke, drugmaker Amgen Inc. and General Mills Inc. funded the study.

"This study does strongly suggest that food does have an influence and people should be trying to avoid these kinds of fatty foods and high sugar content," said an independent expert, Dr. Brian Silver, a Brown University neurologist and stroke center director at Rhode Island Hospital.

"I don't mean to sound like an ogre. I know when I'm in New Orleans I certainly enjoy the food there. But you don't have to make a regular habit of eating all this stuff."

___

Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Wall Street stymied as investors lack catalysts to trade

NEW YORK (Reuters) - U.S. stocks were little changed on Wednesday as investors, without any major economic reports to guide them, awaited fresh incentives to trade after rallies took the S&P 500 to five-year highs.

Transportation stocks were among the worst performers, weighed down by a 10 percent drop in CH Robinson Worldwide to $60.40 after the freight transport company posted a lower-than-expected adjusted quarterly profit.

The Dow Jones Transportation index <.djt> shed 0.3 percent after closing at a record high Tuesday for a gain of more than 10 percent in 2013.

The benchmark S&P 500 index has advanced 6 percent this year, climbing to its highest since December 2007. The Dow industrials <.dji> have risen above 14,000 recently, making it a challenge for investors to push stocks higher in the absence of strong positive catalysts.

"Overall, we believe that the next near-term market dip should provide an opportunity to buy stocks ahead of rallies higher in the coming months, but we are skeptical about the long-term sustainability of these gains due to the maturing age of the bull market," said Ari Wald, equity research analyst at C&Co\PrinceRidge in New York.

The Dow Jones industrial average <.dji> was up 5.28 points, or 0.04 percent, at 13,984.58. The Standard & Poor's 500 Index <.spx> was up 0.56 point, or 0.04 percent, at 1,511.85. The Nasdaq Composite Index <.ixic> was up 1.67 points, or 0.05 percent, at 3,173.25.

The tech-heavy Nasdaq index was supported by Apple Inc , which rose 1.1 percent to $462.62.

Walt Disney Co was among the bright spots, up 1.1 percent at $60.31, after the company beat estimates for quarterly adjusted earnings and gave an optimistic outlook for the next few quarters.

According to Thomson Reuters data through Wednesday morning, of 301 companies in the S&P 500 <.spx> that have reported earnings, 68.1 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters. In terms of revenue, 65.8 percent of companies have topped forecasts.

Looking ahead, fourth-quarter earnings for S&P 500 companies are expected to grow 4.7 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

The benchmark S&P index rose 1.04 percent Tuesday, its biggest percentage gain since a 2.5-percent advance on January 2 after lawmakers agreed on a temporary delay of the "fiscal cliff."

Ralph Lauren Corp climbed 8 percent to $178.15 as the best performer on the S&P 500 after reporting renewed momentum in its holiday-quarter sales and profits.

Time Warner Inc jumped 4.4 percent to $52.15 after reporting higher fourth-quarter profit that beat Wall Street estimates, as growth in its cable networks offset declines in its film, TV entertainment and publishing units.

Visa , the world's largest credit and debit card network, is expected to report earnings per share of $1.79 for its first quarter, up from $1.49 a year earlier. Smaller rival MasterCard MA.N recently reported better-than-expected results but said its revenue growth could slow in the first half of the year due to economic uncertainty.

(Editing by Bernadette Baum and Kenneth Barry)

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Tunisia protests after government critic shot dead

TUNIS (Reuters) - A fierce critic of the Tunisian government's dealings with radical Islamists was shot dead on Wednesday, sending protesters onto the streets two years after their Jasmine Revolution sparked revolt across the Arab world.

The headquarters of the moderate Islamist Ennahda party, which rules in a fractious coalition with secularists, was set ablaze after Chokri Belaid, an outspoken, secular leader, was gunned down outside his home in the capital.

His party and others in the opposition parties said they would quit the assembly that is writing a new constitution and called a general strike for Thursday when Belaid will be buried.

Prime Minister Hamadi Jebali, who said the identity of the attacker was not known, condemned his killing as a political assassination and a strike against the "Arab Spring" revolution. Ennahda denied any involvement.

As Belaid's body was taken by ambulance through Tunis from the hospital where he died, police fired teargas towards about 20,000 protesters at the Interior Ministry chanting for the fall of the government.

"This is a black day in the history of modern Tunisia ... Today we say to the Islamists, 'get out' ... enough is enough," said Souad, a 40-year-old teacher outside the ministry.

"Tunisia will sink in the blood if you stay in power."

Despite calls for calm from the president, who is not an Islamist, thousands also demonstrated in cities including Mahdia, Sousse, Monastir and Sidi Bouzid, the cradle of the revolution, where police fired teargas and warning shots at protesters who set cars and a police station on fire.

While Belaid's nine-party Popular Front bloc has only three seats in the constituent assembly, the opposition jointly agreed to pull its 90 or so members out of the body, which is acting as parliament and writing the new post-revolution charter. Ennahda and its fellow ruling parties have some 120 seats.

The small North African state was the first Arab country to oust its leader and hold free elections as uprisings spread around the region in 2011, leading to the ousting of the rulers of Egypt, Yemen and Libya and to the civil war in Syria.

But as in Egypt, many who campaigned for freedom from repression under autocratic rulers and better prospects for their future now feel their revolutions have been hijacked by Islamists they accuse of clamping down on personal liberties, with no sign of new jobs or improvements in infrastructure.

Tunisia's new constitution will pave the way for new elections but will inevitably be a source of friction between secularists and Islamists, just as it was in Egypt, where the president adopted sweeping powers to force it through.

The ruling parties have agreed to hold the vote in June, but that date still needs approval by the assembly.

HARDSHIP

Since the uprising, the government has faced a string of protests over economic hardship and Tunisia's future path, with many complaining hardline Salafists were taking over the revolution in the former French colony once dominated by a secular elite under the autocratic rule of Zine al-Abidine Ben Ali.

Last year, Salafist groups prevented several concerts and plays from taking place in Tunisian cities, saying they violated Islamic principles. That worries the secular-minded among the 11 million Tunisians, who fear freedom of expression is in danger.

Salafists also ransacked the U.S. embassy in Tunis in September, during international protests over an Internet video mocking Islam.

The embassy issued a statement on Wednesday condemning Belaid's killing: "There is no justification for this heinous and cowardly act," it said. "Political violence has no place in the democratic transition in Tunisia."

The United States urged the Tunisian government to bring his killers to book.

Declining trade with the crisis-hit euro zone has left Tunisians struggling to achieve the better living standards many had hoped for following Ben Ali's departure. Any further signs of unrest could scare off tourists vital to an industry only just recovering from the revolution.

"More than 4,000 are protesting now, burning tires and throwing stones at the police," Mehdi Horchani, a Sidi Bouzid resident, told Reuters. "There is great anger."

Jobless graduate Mohamed Bouazizi set himself on fire in December 2010 in the city, 300 km (180 miles) southwest of Tunis, after police confiscated his unlicensed fruit cart, triggering the "Jasmine Revolution" that forced Ben Ali to flee to Saudi Arabia less than a month later, on January 14, 2011.

President Moncef Marzouki, who last month warned the tension between secularists and Islamists might lead to "civil war", canceled a visit to Egypt scheduled for Thursday and cut short a trip to France, where he addressed the European Parliament.

"There are political forces inside Tunisia that don't want this transition to succeed," Marzouki told journalists in Strasbourg.

"When one has a revolution, the counter revolution immediately sets in because those who lose power - it's not only Ben Ali and his family - are the hundreds of thousands of people with many interests who see themselves threatened by this revolution," he added.

Belaid, who died in hospital, said earlier this week that dozens of people close to the government had attacked a Popular Front group meeting in Kef, northern Tunisia, on Sunday.

A lawyer and human rights activist, the 48-year-old had been a constant critic of the government, accusing it of being a puppet of the rulers in the small but wealthy Gulf state of Qatar, which Tunisia denies.

"Chokri Belaid was killed today by four bullets to the head and chest," Ziad Lakhader, a Popular Front leader, told Reuters.

The Interior Ministry said he had been gunned down by a man who fled on a motorcycle with an accomplice.

DENIES INVOLVEMENT

Prime Minister Jebali, a member of Ennahda, said the killers wanted to "silence his voice".

"The murder of Belaid is a political assassination and the assassination of the Tunisian revolution," he said.

Ennahda leader Rached Ghannouchi denied any involvement by his party in the killing. "Is it possible that the ruling party could carry out this assassination when it would disrupt investment and tourism?" Ghannouchi told Reuters.

He blamed those seeking to derail Tunisia's democratic transition: "Tunisia today is in the biggest political stalemate since the revolution. We should be quiet and not fall into a spiral of violence. We need unity more than ever," he said.

He accused secular opponents of stirring up sentiment against his party following Belaid's death. "The result is burning and attacking the headquarters of our party in many areas," he said.

Witnesses said crowds had also attacked Ennahda offices in Sousse, Monastir, Mahdia and Sfax.

French President Francois Hollande said he was concerned by the rise of violence in Paris's former dominion, where the government says al Qaeda-linked militants linked to those in neighboring countries have been accumulating weapons with the aim of creating an Islamic state.

"This murder deprives Tunisia of one of its most courageous and free voices," Hollande's office said in a statement.

Riccardo Fabiani, Eurasia analyst on Tunisia, described it as a "major failure for Tunisian politics".

"The question is now what is Ennahda going to do and what are its allies going to do?" he said. "They could be forced to withdraw from the government which would lead to a major crisis in the transition."

Marzouki warned last month that the conflict between Islamists and secularists could lead to civil war and called for a national dialogue that included all political groupings.

Ennahda won 42 percent of seats in a parliamentary election in 2011 and formed a government in coalition with two secular parties, the Congress for the Republic, to which President Marzouki belongs, and Ettakatol.

Marzouki's party threatened on Sunday to withdraw from the government unless it dropped two Islamist ministers.

(Additional reporting by John Irish in Paris; Writing by Alison Williams; Editing by Alastair Macdonald)

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Jenny McCarthy New Talk Show Interview

While Jenny McCarthy has been acting since 1994, she's undoubtedly found bigger success when being herself. Whether it was as the host of MTV's Singled Out or the author of nine hugely successful novels, her intoxicating blend of no-holds-barred honesty and hilarious histrionics has earned her a loyal legion of fans.

Now, McCarthy hopes to dazzle her devotees with a new VH1 late night talk show, The Jenny McCarthy Show, premiering Friday at 10:30 p.m. But how will she stand out in the overcrowded marketplace? That was just one of the questions I posed when Jenny McCarthy rang me up for a chat!

ETonline: What excites you about this show?

Jenny McCarthy: I'm excited that it's actually different from everything else you've seen. If I were to compare it to anything, I'd say it's like Hugh Hefner's Playboy After Dark, which was a cool after-hours party. I've got a bartender, I've got go-go dancers, there's no script, there's no pre-interviews and the celebrities are in deep sh*t when I start asking questions. It's going to be really off the beaten path from what they're used to. I'm excited for people to see what I've worked so hard to attain at this stage in my life in terms of wisdom and life experiences.

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ETonline: Given your various books and columns, it feels like your fans have really been on that journey alongside you. Was that intentional?

McCarthy: Yeah. It was important for me to always be honest and out there. I feel like right from the get-go I made a point to stay true to who I am, to be honest, to be the girl who doesn't take herself too seriously and I always stuck with that even through the hard times when I wanted to be private. That brought me to where I am now, and I hold true to who I am to this day.

ETonline: You'll be talking about celebrities on your show. What's your take on the current state of celebrity?

McCarthy: I can tell you this, when I first moved out to LA I was hanging around a lot of Playmates and I really had to make a decision as to whether I wanted to keep going in this party-going world or stay focused on what I wanted. After a year, I purposely got into a relationship with a much older guy -- he was 45 when I was 21 -- because I wanted to stay home and not be distracted and get into the problems like Lindsay Lohan has. I mean, the same scene was there, we just didn't have the omnipresence of cameras. I knew back then that I would be tempted like everyone else, but I was going to stay home and watch Wheel of Fortune with my old man boyfriend until I could get a grip on what I was going to do.

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ETonline: When you look at the late night market, it's never been more competitive. How do you deliver on the promise of "different?"

McCarthy: A talk show is difficult because the formula is always the same: there's a host and there's guests. Really what you can change is only so much. So, I don't have any pre-interviews, which forces real conversation. Then, I have the guests out there for the entire 30 minutes. We have a pre-party, so it's a total party for 2 hours. I wanted go-go dancers. There are no sexy girls on TV anymore. What happened to the trampoline girls from The Man Show? I also have a very sexy man DJ and a very sexy man bartender right next to me, so I am pleasing all sexes and preferences.

ETonline: So you'll be drinking during the show?

McCarthy: Heavily, yes of course.

ETonline: Are you concerned about keeping yourself composed, or are you hoping to wake up and not remember the previous night's show?

McCarthy: [laughs] I'm kind of hoping that eventually does happen because it will be hilarious. But I also have to be sharp because when you're hosting a show, there's a lot of multi-tasking that needs to be done. All systems need to be working, but I am Irish and young and I like a cocktail.

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ETonline: Most people have a long list of the booze they can no longer drink after bad experiences. What are yours?

McCarthy: Bacardi was the first thing I was ever peer pressured into drinking when I was in 8th grade and threw up for 2 days, so I've never been able to drink that again. I've also discovered I'm allergic to beer and wine, so Vodka is kind of my only choice right now.

ETonline: Who are some of your dream guests?

McCarthy: To give you an example of the kind of oddity I want, a dream show would be Rebel Wilson and Tim Tebow. Me and Rebel and Tim Tebow would be a classic half-hour of television as we drink and play games.

ETonline: Besides oddity, what do you want people to get from your show?

McCarthy: 30 minutes of release. A relatable, entertaining time that doesn't make you feel like you need to take a shower afterwards. Just a good fun party that you're given VIP access to.

The Jenny McCarthy Show premieres February 8 at 10:30 p.m.

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Critics seek to delay NYC sugary drinks size limit

NEW YORK (AP) — Opponents are pressing to delay enforcement of the city's novel plan to crack down on supersized, sugary drinks, saying businesses shouldn't have to spend millions of dollars to comply until a court rules on whether the measure is legal.

With the rule set to take effect March 12, beverage industry, restaurant and other business groups have asked a judge to put it on hold at least until there's a ruling on their lawsuit seeking to block it altogether. The measure would bar many eateries from selling high-sugar drinks in cups or containers bigger than 16 ounces.

"It would be a tremendous waste of expense, time, and effort for our members to incur all of the harm and costs associated with the ban if this court decides that the ban is illegal," Chong Sik Le, president of the New York Korean-American Grocers Association, said in court papers filed Friday.

City lawyers are fighting the lawsuit and oppose postponing the restriction, which the city Board of Health approved in September. They said Tuesday they expect to prevail.

"The obesity epidemic kills nearly 6,000 New Yorkers each year. We see no reason to delay the Board of Health's reasonable and legal actions to combat this major, growing problem," Mark Muschenheim, a city attorney, said in a statement.

Another city lawyer, Thomas Merrill, has said officials believe businesses have had enough time to get ready for the new rule. He has noted that the city doesn't plan to seek fines until June.

Mayor Michael Bloomberg and other city officials see the first-of-its-kind limit as a coup for public health. The city's obesity rate is rising, and studies have linked sugary drinks to weight gain, they note.

"This is the biggest step a city has taken to curb obesity," Bloomberg said when the measure passed.

Soda makers and other critics view the rule as an unwarranted intrusion into people's dietary choices and an unfair, uneven burden on business. The restriction won't apply at supermarkets and many convenience stores because the city doesn't regulate them.

While the dispute plays out in court, "the impacted businesses would like some more certainty on when and how they might need to adjust operations," American Beverage Industry spokesman Christopher Gindlesperger said Tuesday.

Those adjustments are expected to cost the association's members about $600,000 in labeling and other expenses for bottles, Vice President Mike Redman said in court papers. Reconfiguring "16-ounce" cups that are actually made slightly bigger, to leave room at the top, is expected to take cup manufacturers three months to a year and cost them anywhere from more than $100,000 to several millions of dollars, Foodservice Packaging Institute President Lynn Dyer said in court documents.

Movie theaters, meanwhile, are concerned because beverages account for more than 20 percent of their overall profits and about 98 percent of soda sales are in containers greater than 16 ounces, according to Robert Sunshine, executive director of the National Association of Theatre Owners of New York State.

___

Follow Jennifer Peltz at http://twitter.com/jennpeltz

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S&P 500 gains more than 1 percent

NEW YORK (Reuters) - The S&P 500 rose more than 1 percent on Tuesday as stronger-than-expected earnings helped the outlook for profit growth while the Nasdaq also traded more than 1 percent higher.

The Dow Jones industrial average <.dji> was up 121.55 points, or 0.88 percent, at 14,001.63. The Standard & Poor's 500 Index <.spx> was up 16.25 points, or 1.09 percent, at 1,511.96. The Nasdaq Composite Index <.ixic> was up 38.08 points, or 1.22 percent, at 3,169.25.

(Reporting By Caroline Valetkevitch; Editing by Chizu Nomiyama)

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Iran's Ahmadinejad kissed and scolded in Egypt

CAIRO (Reuters) - Mahmoud Ahmadinejad was both kissed and scolded on Tuesday when he began the first visit to Egypt by an Iranian president since Tehran's 1979 Islamic revolution.

The trip was meant to underline a thaw in relations since Egyptians elected an Islamist head of state, President Mohamed Mursi, last June. But it also highlighted deep theological and geopolitical differences.

Mursi, a member of the Sunni Muslim Brotherhood, kissed Ahmadinejad after he landed at Cairo airport and gave him a red carpet reception with military honors. Ahmadinejad beamed as he shook hands with waiting dignitaries.

But the Shi'ite Iranian leader received a stiff rebuke when he met Egypt's leading Sunni Muslim scholar later at Cairo's historic al-Azhar mosque and university.

Sheikh Ahmed al-Tayeb, head of the 1,000-year-old seat of religious learning, urged Iran to refrain from interfering in Gulf Arab states, to recognize Bahrain as a "sisterly Arab nation" and rejected the extension of Shi'ite Muslim influence in Sunni countries, a statement from al-Azhar said.

Visiting Cairo to attend an Islamic summit that begins on Wednesday, Ahmadinejad told a news conference he hoped his trip would be "a new starting point in relations between us".

However, a senior cleric from the Egyptian seminary, Hassan al-Shafai, who appeared alongside him, said the meeting had degenerated into an exchange of theological differences.

"There ensued some misunderstandings on certain issues that could have an effect on the cultural, political and social climate of both countries," Shafai said.

"The issues were such that the grand sheikh saw that the meeting ... did not serve the desired purpose."

The visit would have been unthinkable during the rule of Hosni Mubarak, the military-backed autocrat who preserved Egypt's peace treaty with Israel during his 30 years in power and deepened ties between Cairo and the West.

"The political geography of the region will change if Iran and Egypt take a unified position on the Palestinian question," Ahmadinejad said in an interview with Al Mayadeen, a Beirut-based TV station, on the eve of his trip.

He said he wanted to visit the Gaza Strip, the Palestinian territory which neighbors Egypt to the east and is run by the Islamist movement Hamas. "If they allow it, I would go to Gaza to visit the people," Ahmadinejad said.

Analysts doubt that the historic changes that brought Mursi to power will result in a full restoration of diplomatic ties between states whose relations were broken off after the conclusion of Egypt's peace treaty with Israel in 1979.

OBSTACLES TO FULL TIES

At the airport the two leaders discussed ways of improving relations and resolving the Syrian crisis "without resorting to military intervention", Egyptian state media reported.

Egypt is concerned by Iran's support for Syrian President Bashar al-Assad, who is trying to crush an uprising inspired by the revolt that swept Mubarak from power two years ago. Egypt's overwhelmingly Sunni Muslim population is broadly supportive of the uprising against Assad's Alawite-led administration.

Egyptian Foreign Minister Mohamed Kamel Amr sought to reassure Gulf Arab allies - that are supporting Cairo's battered state finances and are deeply suspicious of Iran - that Egypt would not jeopardize their security.

"The security of the Gulf states is the security of Egypt," he said in remarks reported by the official MENA news agency.

Mursi wants to preserve ties with the United States, the source of $1.3 billion in aid each year to the influential Egyptian military.

"The restoration of full relations with Iran in this period is difficult, despite the warmth in ties ... because of many problems including the Syrian crisis and Cairo's links with the Gulf states, Israel and the United States," said one former Egyptian diplomat.

Iranian Foreign Minister Ali Akbar Salehi said he was optimistic that ties could grow closer.

"We are gradually improving. We have to be a little bit patient. I'm very hopeful about the expansion of the bilateral relationship," he told Reuters. Asked where he saw room for closer ties, he said: "Trade and economics."

Egypt and Iran have taken opposite courses since the late 1970s. Egypt, under Mubarak's predecessor Anwar Sadat, concluded a peace treaty with Israel in 1979 and became a close ally of the United States and Europe. Iran from 1979 turned into a center of opposition to Western influence in the Middle East.

Symbolically, Iran named a street in Tehran after the Islamist who led the 1981 assassination of Sadat.

Egypt gave asylum and a state funeral to Iran's exiled Shah Reza Pahlavi, who was overthrown in the 1979 Iranian revolution. He is buried in a mosque beside Cairo's mediaeval Citadel alongside his ex-brother-in-law, Egypt's last king, Farouk.

(Additional reporting by Ayman Samir, Marwa Awad and Alexander Diadosz; Writing by Paul Taylor and Tom Perry; Editing by Andrew Roche and Robin Pomeroy)

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EU wants to tackle money laundering on gaming sites

BRUSSELS (Reuters) – The European Union may try to counter money laundering through online betting sites by extending legislation beyond casinos to include Internet gambling.

The executive European Commission formally proposed on Tuesday to include online gaming in EU-wide legislation that seeks to combat fraud. It could become law within two years if approved by the EU’s 27 member countries.

The Commission said by currently only monitoring casinos, “other areas of gambling (are) vulnerable to misuse by criminals”.

The Commission also proposed reducing the permitted maximum for cash payments for goods and services to 7,500 euros ($ 10,200) from 15,000 euros and submitting shops and traders to a series of checks if they make or receive large payments.

About $ 1.6 trillion was laundered worldwide in 2009 – about 4 percent of the world’s economic output, according to the United Nations Office on Drugs and Crime.

Online gambling is growing in popularity and companies such as Britain’s largest bookmaker, William Hill, and rivals SportingBet and Stanleybet, have benefited from the rise in demand, particularly for betting on sporting events.

But gaming firms have also protested against stricter regulation, with some countries such as Germany having increased controls on advertising, as well as limiting the amounts customers can gamble and increasing taxes on betting.

(Reporting by Robin Emmott; editing by Rex Merrifield)

Internet News Headlines – Yahoo! News

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Nashville Sneak Peek Clip Elevator Hookup

Coming hot on the heels of their best episode to date, Nashville is turning up the heat even further this Wednesday with a brand new episode that forces Rayna to confront her feelings for Deacon -- and ETonline has a sneak peek of all the between-floors action!

RELATED - TV's 5 Hottest Elevator Hook-Ups

In I've Been Down That Road Before, Rayna is thrown for a loop now that Deacon has joined Juliette's band and can't help but think that maybe he'd be better off in her bed! Especially after the two share a steamy kiss in the elevator! WATCH!

RELATED - Does Nashville Have a Rayna Problem?

Nashville airs Wednesdays at 10 p.m. on ABC.

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Critics seek to delay NYC sugary drinks size limit

NEW YORK (AP) — Opponents are pressing to delay enforcement of the city's novel plan to crack down on supersized, sugary drinks, saying businesses shouldn't have to spend millions of dollars to comply until a court rules on whether the measure is legal.

With the rule set to take effect March 12, beverage industry, restaurant and other business groups have asked a judge to put it on hold at least until there's a ruling on their lawsuit seeking to block it altogether. The measure would bar many eateries from selling high-sugar drinks in cups or containers bigger than 16 ounces.

"It would be a tremendous waste of expense, time, and effort for our members to incur all of the harm and costs associated with the ban if this court decides that the ban is illegal," Chong Sik Le, president of the New York Korean-American Grocers Association, said in court papers filed Friday.

City lawyers are fighting the lawsuit and oppose postponing the restriction, which the city Board of Health approved in September. They said Tuesday they expect to prevail.

"The obesity epidemic kills nearly 6,000 New Yorkers each year. We see no reason to delay the Board of Health's reasonable and legal actions to combat this major, growing problem," Mark Muschenheim, a city attorney, said in a statement.

Another city lawyer, Thomas Merrill, has said officials believe businesses have had enough time to get ready for the new rule. He has noted that the city doesn't plan to seek fines until June.

Mayor Michael Bloomberg and other city officials see the first-of-its-kind limit as a coup for public health. The city's obesity rate is rising, and studies have linked sugary drinks to weight gain, they note.

"This is the biggest step a city has taken to curb obesity," Bloomberg said when the measure passed.

Soda makers and other critics view the rule as an unwarranted intrusion into people's dietary choices and an unfair, uneven burden on business. The restriction won't apply at supermarkets and many convenience stores because the city doesn't regulate them.

While the dispute plays out in court, "the impacted businesses would like some more certainty on when and how they might need to adjust operations," American Beverage Industry spokesman Christopher Gindlesperger said Tuesday.

Those adjustments are expected to cost the association's members about $600,000 in labeling and other expenses for bottles, Vice President Mike Redman said in court papers. Reconfiguring "16-ounce" cups that are actually made slightly bigger, to leave room at the top, is expected to take cup manufacturers three months to a year and cost them anywhere from more than $100,000 to several millions of dollars, Foodservice Packaging Institute President Lynn Dyer said in court documents.

Movie theaters, meanwhile, are concerned because beverages account for more than 20 percent of their overall profits and about 98 percent of soda sales are in containers greater than 16 ounces, according to Robert Sunshine, executive director of the National Association of Theatre Owners of New York State.

___

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Wall Street retreats from five-year high

NEW YORK (Reuters) - Stocks fell on Monday after a disappointing report on factory orders, retreating from gains in the prior session that left the S&P 500 at a five-year high and the Dow above 14,000.

Investors also grew wary on political uncertainty in the euro zone, leading to a sharp rise in Spanish government bond yields.

Chevron and Wal-Mart were among the biggest drags on the Dow after analyst downgrades.

"S&P technicals are at overbought levels, and risk-off harbingers, such as Spanish 10-year yields, which are much more difficult for central bankers to tame, have bounced off recent lows," said Peter Cecchini, managing director at New York-based Cantor Fitzgerald & Co.

Spanish and Italian bond yields rose, renewing worries about the euro zone's sovereign debt crisis. Spain's prime minister faced calls to resign over a corruption scandal, while a probe of alleged misconduct involving an Italian bank was expected to widen three weeks before a national election.

The benchmark S&P 500 rose on Friday, leaving it roughly 60 points away from its all-time intraday high of 1,576.09, while the Dow's march above 14,000 was the highest for the index since October 2007.

The S&P index <.spx> is up 5.5 percent for the year, with nearly half of the gains coming after U.S. legislators temporarily sidestepped the "fiscal cliff" of automatic tax increases and spending cuts.

Data from the Commerce Department showed overall factory orders rose 1.8 percent in December, below economists' expectations. The report said capital goods orders outside of the defense and aircraft industries, edged 0.3 percent lower. The category is seen as a gauge of U.S. business investment plans.

Economic data has pointed to a modest U.S. recovery, but the data have not been strong enough to upset investor expectations the Federal Reserve will continue its stimulus policy that has buoyed stocks.

The Dow Jones industrial average <.dji> was down 117.19 points, or 0.84 percent, at 13,892.60. The Standard & Poor's 500 Index <.spx> was down 13.72 points, or 0.91 percent, at 1,499.45. The Nasdaq Composite Index <.ixic> was down 37.77 points, or 1.19 percent, at 3,141.33.

The CBOE Volatility index VIX <.vix>, Wall Street's so-called fear gauge, jumped more than 10 percent to 14.48 by afternoon trade.

Chevron Corp dipped 1 percent to $115.34 after UBS cut its rating to neutral, while Wal-Mart Stores Inc shed 1.5 percent to $69.46 after JP Morgan lowered its rating on the world's largest retailer and reduced its price target.

Oracle Corp lost 2.6 percent to $35.28 after the company agreed to buy network gear maker Acme Packet Inc for about $1.9 billion. Acme Packet shares surged 22 percent to $29.20.

Shares of household products company Clorox rose 1.3 percent to $80.23 after quarterly profit beat analysts' estimates as a severe flu season boosted sales of disinfecting wipes.

Earnings are due from Anadarko Petroleum Corp and Yum! Brands Inc , owner of fast-food chains, after the closing bell.

According to Thomson Reuters data, of the 256 companies in the S&P 500 that have reported earnings through Monday morning, 68.4 percent have reported earnings above analyst expectations compared with the 62 percent average since 1994 and the 65 percent average over the past four quarters.

S&P 500 fourth-quarter earnings are expected to rise 4.4 percent, according to the data. That estimate is above the 1.9 percent forecast at the start of earnings season, but well below the 9.9 percent fourth-quarter earnings forecast on October 1.

Herbalife Ltd slumped 3 percent to $34.03 after the New York Post newspaper reported the seller of weight loss products is facing a probe by the Federal Trade Commission.

(Reporting By Angela Moon; Editing by Kenneth Barry and Nick Zieminski)

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North Korea nuclear test would face "firm" U.N. action: South Korea

UNITED NATIONS (Reuters) - The U.N. Security Council is united on North Korea's nuclear arms program and will undoubtedly approve tough measures against Pyongyang if it carries out a new atomic test as expected, South Korean U.N. Ambassador Kim Sook said on Monday.

"The North Korean nuclear test seems to be imminent," Kim, who is president of the Security Council this month, told reporters. "Obviously there are very busy activities going on at the (North Korean) nuclear test site, and everybody's watching."

"Everybody is unified and they are firm and resolute," he said. "I would expect very firm and strong measures to be taken ... once they go ahead with such provocation."

(Reporting By Louis Charbonneau; Editing by Sandra Maler)

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BlackBerry shares jump after Bernstein upgrades stock

TORONTO (Reuters) – Shares of BlackBerry rose more than 8 percent in on Monday after Bernstein Research said it was upgrading the stock to “outperform” after last week’s launch of the company’s new line of BlackBerry 10 smartphones.

The brokerage firm, which has not had an “outperform” rating on the stock for more than three years, also lifted its price target to $ 22 from $ 12, saying it has grown much more confident about the success of the smartphones, powered by the new BlackBerry 10 operating system.

Shares of BlackBerry, which is in the process of changing its legal name from Research In Motion, rose 8.9 percent to $ 14.18 in early Nasdaq trading. BlackBerry’s Toronto-listed shares were up 9.1 percent at C$ 14.21 at 10:30 EST.

The stock began trading under the “BBRY” symbol on Nasdaq on Monday and under the “BB” symbol on the Toronto Stock Exchange. The stock used to trade as “RIMM” on the Nasdaq and “RIM” on the TSX.

“We upgrade BlackBerry to outperform today as we believe BB 10 is set for a strong launch,” Bernstein analyst Pierre Ferragu said in a note to clients. “Even if the long-term prospects for the platform are very uncertain, we believe all is in place for BlackBerry 10 to enjoy a great debut.”

BlackBerry, a one-time pioneer in the smartphone industry, has ceded market share in recent years to the likes of Apple’s iPhone, Samsung’s Galaxy line and a slew of devices powered by Google Inc’s market-leading Android operating system.

In a make-or-break move to regain market share and return to profit, BlackBerry introduced its new line of smartphones to much fanfare on Wednesday. However, its stock fell more than 10 percent following the launch as investors were disappointed that the new smartphones will only go on sale in mid-March in the crucial U.S. market.

“The strength of this launch is overlooked by investors, creating strong opportunity to buy BlackBerry,” said Ferragu, adding that he expects strong initial corporate demand for the new devices.

“We believe BlackBerry should trade in the $ 20-$ 25 range once a decent launch for Blackberry 10 and a stabilized trajectory for fiscal year 2014 are priced in,” he said.

BlackBerry unveiled both a touch-screen device and a physical-keyboard device last week. While the traditional keyboard model only goes on sale in April, the touch-screen device is already on sale in the United Kingdom and hits store shelves in Canada this week.

Waterloo, Ontario-based BlackBerry said the U.S. launch was delayed until mid-March because U.S. wireless carriers have a longer testing phase than carriers in other countries. The devices, which are set to retail for C$ 599 ($ 600) in Canada, are currently attracting bids of more than $ 1,000 each on auction site ebay.com.

(Reporting by Euan Rocha; Editing by Lisa Von Ahn; and Peter Galloway)

Wireless News Headlines – Yahoo! News

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Celeste and Jesse Forever Deleted Scene

For Celeste and Jesse Forever, the first screenplay from beloved Parks and Recreation star Rashida Jones, she tapped some of her famous friends to help bring this unique lovestory to life.

RELATED - Parks and Recreation is one of 2012's Best Shows

Not only does Andy Samberg play her titular best friend/ex-boyfriend, but Elijah Wood, Ari Graynor, Chris Messina, Emma Roberts, Eric Christian Olsen and a mute Chris Pine round out Celeste's cinematic circle of friends.

VIDEO - Amy Poehler Slays in Super Bowl Spot

ETonline scored an exclusive deleted scene off the DVD that, much like HBO's sensational Girls, reveals the inherent intimacy of female friendships.

Celeste and Jesse Forever hits DVD on February 5, click here to pre-order!

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