Khamenei rejects offer of direct talks with U.S.

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

"Some naive people like the idea of negotiating with America, however, negotiations will not solve the problems," Khamenei said in a speech to officials and members of Iran's aerospace force, IRIB reported.

"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.

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.

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.

Many believe no deal on settling the nuclear issue is possible 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.

(Reporting By Marcus George; Editing by Jon Boyle)

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American Idol: It's a Guys' Night in Hollywood

TV Watch

American Idol

By Jamie Bufalino

02/06/2013 at 11:00 PM EST

From left: Randy Jackson, Mariah Carey, Ryan Seacrest, Nicki Minaj and Keith Urban

George Holz/FOX

Caution: Contains spoilers!

"It does feel a bit like The Hunger Games," said Keith Urban, ramping up the drama as American Idol kicked off the first day of Hollywood Week. Although producers didn't unleash any tracker jackers on the contestants, they did throw in a couple unexpected twists: This season the week started off as a guys-only competition (the girls arrive in Hollywood next week), and after surviving a round of sudden death solo sing-offs, contestants would then be put into groups from which they couldn't escape.

During the solo round, the standouts included two memorable contestants from the nationwide auditions. First up, Navy man Micah Johnson, who developed a speech impediment after suffering through a botched surgery to remove his tonsils. After a rousing rendition of Elton John's "Bennie and the Jets," Johnson was the first to get the green light to the next round.

Joining him soon after was Cuban-American Lazaro Arbos, a 21-year-old ice cream scooper from Naples, Fla., who speaks with a severe stutter but sings with ease. Although Arbos admitted to being both "scared" and "petrified," he quickly won the judges over – Nicki Minaj made her fingers into a heart-shape while he sang – with his take on the Robbie Williams hit, "Angels."

When it came time to form groups of four, the Idol producers threw a few more curveballs – such as pairing a couple of country crooners with two flamboyant (think glitter and faux fur) dudes Ryan Seacrest described as the show's "resident divas."

The result: a quartet that dubbed themselves Country Queen, which delivered a train wreck of a performance. Still, somehow three of the four made it through.

Meanwhile, Arbos's group experience also proved to be a bit of a disaster – which some of his cohorts blamed on his inability to quickly learn the lyrics and melody to the Beach Boys hit "Wouldn't It Be Nice." Although his main nemesis got the boot, a tearful Arbos got the chance to sing another day.

The day of auditions came to a close with what was possibly the most heartbreaking Idol exit ever. New York City subway singer Frankie Ford got a case of the jitters before going on stage, then proceeded to screw up the lyrics and sing off key – leaving the judges no choice but to pull the plug on his dreams. Before walking off into the night, a sobbing Ford stared into the camera and said, "I swear to God I'm coming back next year and I'm going to win."

There will be more solos Thursday (8 p.m. ET), as the judges have to whittle the 43 men left in the competition down to 20 lucky fellas.

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New whooping cough strain in US raises questions

NEW YORK (AP) — Researchers have discovered the first U.S. cases of whooping cough caused by a germ that may be resistant to the vaccine.

Health officials are looking into whether cases like the dozen found in Philadelphia might be one reason the nation just had its worst year for whooping cough in six decades. The new bug was previously reported in Japan, France and Finland.

"It's quite intriguing. It's the first time we've seen this here," said Dr. Tom Clark of the Centers for Disease Control and Prevention.

The U.S. cases are detailed in a brief report from the CDC and other researchers in Thursday's New England Journal of Medicine.

Whooping cough is a highly contagious disease that can strike people of any age but is most dangerous to children. It was once common, but cases in the U.S. dropped after a vaccine was introduced in the 1940s.

An increase in illnesses in recent years has been partially blamed on a version of the vaccine used since the 1990s, which doesn't last as long. Last year, the CDC received reports of 41,880 cases, according to a preliminary count. That included 18 deaths.

The new study suggests that the new whooping cough strain may be why more people have been getting sick. Experts don't think it's more deadly, but the shots may not work as well against it.

In a small, soon-to-be published study, French researchers found the vaccine seemed to lower the risk of severe disease from the new strain in infants. But it didn't prevent illness completely, said Nicole Guiso of the Pasteur Institute, one of the researchers.

The new germ was first identified in France, where more extensive testing is routinely done for whooping cough. The strain now accounts for 14 percent of cases there, Guiso said.

In the United States, doctors usually rely on a rapid test to help make a diagnosis. The extra lab work isn't done often enough to give health officials a good idea how common the new type is here, experts said.

"We definitely need some more information about this before we can draw any conclusions," the CDC's Clark said.

The U.S. cases were found in the past two years in patients at St. Christopher's Hospital for Children in Philadelphia. One of the study's researchers works for a subsidiary of Johnson & Johnson, which makes a version of the old whooping cough vaccine that is sold in other countries.

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JournaL: http://www.nejm.org

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Stock index futures signal mixed open

PARIS (Reuters) - Stock index futures pointed to a mixed open on Wall Street on Thursday. Futures for the S&P 500 were down 0.05 percent, Dow Jones futures down 0.07 percent and Nasdaq 100 futures up 0.05 percent at 0933 GMT.

European shares steadied on Thursday as investors awaited the European Central Bank's policy meeting later in the day and President Mario Draghi's views on the region's growth prospects.

Draghi faces a grilling over the euro's sharp rise and his connection to an Italian banking scandal at the ECB meeting where interest rates are almost certain to be unchanged.

Visa Inc's quarterly profit beat analysts' estimates for the ninth consecutive quarter.

Rupert Murdoch's News Corp on Wednesday reported higher quarterly revenue and profit on strong growth at its cable assets including its Regional Sports and FX networks.

Boeing Co is working on battery design changes that would minimize fire risks on its grounded 787 Dreamliner and could have the passenger jet flying again as soon as March, the Wall Street Journal reported.

Green Mountain Coffee Roasters Inc forecast sales growth for the current quarter that is slightly lower than analysts expected as retailers work through unsold inventory of its products after a slower-than-expected holiday season.

Hon Hai Precision Industry Co Ltd , the main manufacturer of Apple Inc products, said on Thursday consolidated January sales dropped 8.19 percent from a year earlier.

A U.S. judge threw out a lawsuit from South Korea's Woori Bank accusing Bank of America Corp's Merrill Lynch unit of misleading investors about the riskiness of collateralized debt obligations, saying the suit had missed a deadline under South Korean law.

CVS Caremark Corp said on Wednesday it bought Drogaria Onofre, Brazil's eighth-largest drugstore chain last week, marking the first time the drugstore and pharmacy services company has ventured outside the United States.

Michael Dell and his investment firm are putting up $750 million in cash toward the $24.4 billion purchase of Dell Inc to help bankroll the largest private equity-backed buyout since the financial crisis.

Yelp Inc posted a bigger-than-expected quarterly loss and its shares fell 6 percent in after-market trading as the consumer review website faces competition from Facebook Inc .

Chipmaker TriQuint Semiconductor Inc forecast current-quarter results below analysts' estimates after some orders were pulled into the fourth quarter, sending its shares down 8 percent.

Allstate Corp's quarterly profit fell 45 percent on losses from superstorm Sandy, but the home and auto insurer said it has paid out about 95 percent of Sandy claims and is seeing rate increases across businesses.

Herbalife Inc disclosed more information on Wednesday about how much its U.S. distributors earn, looking to provide more clarity as it defends its business model from critics like billionaire hedge fund manager Bill Ackman.

On the macro front, investors awaited weekly jobless claims, due at 1330 GMT, as well as quarterly data on productivity and unit labor costs, also due at 1330 GMT.

Among the companies set to report results on Thursday feature Coca-Cola Enterprises , Hasbro, Inc. , Philip Morris International and Sprint Nextel Corp. .

U.S. stocks ended mostly flat on Wednesday, taking another pause in the recent rally that has driven the S&P 500 to five-year highs, as transportation and technology shares lost ground.

The Dow Jones industrial average <.dji> was up 7.22 points, or 0.05 percent, at 13,986.52. The Standard & Poor's 500 Index <.spx> was up 0.83 points, or 0.05 percent, at 1,512.12. The Nasdaq Composite Index <.ixic> was down 3.10 points, or 0.10 percent, at 3,168.48.

(Reporting by Blaise Robinson; editing by Stephen Nisbet)

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Tsunami kills at least five in Solomons after big Pacific quake

(Reuters) - A powerful 8.0 magnitude earthquake set off a tsunami that killed at least five people in a remote part of the Solomon Islands on Wednesday and triggered evacuations across the South Pacific as island nations issued tsunami alerts.

The quake struck 340 km (211 miles) east of Kira Kira in the Solomons, the Pacific Tsunami Warning Center in Hawaii said as it issued warnings for the Solomons and other South Pacific nations including Australia and New Zealand. It later canceled the warnings for the outlying regions.

A tsunami measuring 0.9 metres (three feet) hit near the town of Lata on the remote Santa Cruz island, swamping some villages and the town's main airport as people fled to safety on higher ground.

More than three dozen aftershocks up to magnitude 6.6 rocked the region in the hours after the quake, the U.S. Geological Survey said.

Lata hospital's director of nursing, Augustine Pilve, told New Zealand television that five people had been killed, including a boy about 10 years old, adding that more casualties were possible as officials made their way to at least three villages that may have been hit.

"It's more likely that other villages along the coast of Santa Cruz may be affected," he said.

Disaster officials in the Solomon Islands capital Honiara told the Solomon Islands Broadcasting Corp. that they believed six people were dead and that five villages had suffered damage.

Solomon Islands Police Commissioner John Lansley said it was too early to fully assess the damage or casualty numbers, and said authorities hoped to send aircraft to the region on Thursday to help determine the extent of the damage.

Luke Taula, a fisheries officer in Lata, said he watched the tsunami as it came in small tidal surges rather than as one large wave.

"We have small waves come in, then go out again, then come back in. The waves have reached the airport terminal," he told Reuters by telephone.

The worst damage was to villages on the western side of a point that protects the main township, he said.

"There are reports that some communities have been badly hit, their houses have been damaged by the waves."

About 5,000 people lived in and around the town, but the area was deserted as people fled to higher ground, Taula said.

HOT SPOT

The Solomons, perched on the geologically active "Pacific Ring of Fire", were hit by a devastating tsunami following an 8.1 magnitude quake in 2007. At least 50 people were killed then and dozens left missing and more than 13 villages destroyed.

"It's an area that is very prone to earthquakes," said Jonathan Bathgate, seismologist at Geoscience Australia. "We've had seven 6-plus magnitude earthquakes in this region since January 31, so it has been very active in the past week."

Initial signs were that the tremor was a thrust quake, in which vertical movement in the continental plates generates higher risk of tsunami, Bathgate added.

Authorities in the Solomons, Fiji, Guam and elsewhere had urged residents to higher ground before the Pacific Tsunami Warning Center canceled its alerts.

"The earthquake would have to be quite a bit bigger to make a much more sizeable tsunami," said Brian Shiro, geophysicist for the center in Hawaii.

(Reporting by James Grubel in CANBERRA,; Additional reporting by Michael Perry and Lincoln Feast in SYDNEY and Alex Dobuzinskis in LOS ANGELES)

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Kim Kardashian's Pregnancy Is No Reason to Speed Divorce, says Kris Humphries

By Mike Fleeman

02/05/2013 at 09:20 PM EST

Kris Humphries and Kim Kardashian

Seth Browarnik/StarTraks

Kim Kardashian's baby is not even born yet and already is being drawn into mama's divorce.

Kardashian, carrying boyfriend Kanye West's child, has bristled at what she sees as stall tactics by estranged husband Kris Humphries to close the legal books on their 72-day marriage.

But Humphries's lawyer Marshall W. Waller writes that "what is really going on here is that an 'urgency' in the form of an apparently unplanned pregnancy" is being used by Kardashian as "an opportunity to gain a litigation advantage (to) prematurely set this matter for trial."

He adds parenthetically that the pregnancy is "something (Humphries) had nothing to do with."

Waller explains his reasoning for calling the pregnancy as unplanned: "Indeed, why would (she) plan to get pregnant in the midst of divorce proceedings?"

Kardashian, herself, recently addressed the timing.

"God brings you things at a time when you least expect it," she said last month. "I'm such a planner and this was just meant to be. What am I going to? Wait years to get a divorce? I'd love one. It's a process."

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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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Stock index futures point to slightly higher Wall Street open

LONDON (Reuters) - Stock index futures pointed to a slightly higher open on Wall Street on Wednesday, with futures for the S&P 500 up 0.1 percent at 5.06 a.m EST.

* Dow Jones futures added 0.3 percent while contracts on the Nasdaq 100 futures rose 0.2 percent.

* 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 1.49 from a year earlier. Smaller rival MasterCard recently reported better-than-expected results but said its revenue growth could decelerate in the first half of the year due to economic uncertainty.

* Media groups Time Warner Inc. and News Corp. were also among U.S. companies due to report results.

* Liberty Global won't change Virgin Media's strategy on network roll-out and content if its deal to buy the British cable group goes through, Liberty's chief executive said on Wednesday.

* Walt Disney Co beat estimates in quarterly adjusted earnings and said it expects the next few quarters to be better on a stronger lineup of movies and rising attendance at its theme parks. The results helped lift the media giant's shares 1.7 percent in after-hours trading.

* Take-Two Interactive Software Inc reported higher revenue and earnings in the third quarter that blew past Wall Street expectations, as the video games publisher gears up to launch a new title from its mega-blockbuster "Grand Theft Auto" series. Take-Two shares were up about 7 percent in after-hours trading after closing at $12.66 on the Nasdaq.

* Online gaming firm Zynga Inc reported an unexpected fourth-quarter profit after embracing steep cost cuts and shifting forward deferred revenue. The results were a relief to investors who had feared the company might be in free fall and Zynga's shares jumped 7 percent to $2.93 in after-hours trade.

* Nasdaq OMX Group Inc is in preliminary talks with U.S. securities regulators over a possible settlement for the glitch-ridden stock market debut of social networking site Facebook Inc , the Wall Street Journal reported on Tuesday, citing people with knowledge of the discussions.

* Online photo-sharing service provider Shutterfly Inc's results beat analysts' estimates in the traditionally strong fourth quarter on higher demand during the holiday season, particularly in its enterprise unit. The company's shares rose 13 percent in after-hours trading.

* European stocks were a touch higher on Wednesday, with shares in the world's largest steelmaker, ArcelorMittal , rising after its upbeat outlook reassured investors.

* Japan's Nikkei average surged 3.8 percent to its highest close since October 2008 after the yen fell sharply on bets the early exit of the central bank governor would open the way for a successor who pursues aggressive monetary easing.

* The Dow Jones industrial average <.dji> closed 99.22 points, or 0.71 percent, higher at 13,979.30 on Tuesday. The Standard & Poor's 500 Index <.spx> was up 15.58 points, or 1.04 percent, at 1,511.29. The Nasdaq Composite Index <.ixic> was up 40.41 points, or 1.29 percent, at 3,171.58.

(Reporting By Francesco Canepa; Editing by Susan Fenton)

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Iran's Ahmadinejad in Egypt on historic visit

CAIRO (Reuters) - President Mahmoud Ahmadinejad arrived in Egypt on Tuesday on the first trip by an Iranian head of state since the 1979 revolution, underlining the thaw in relations since Egyptians elected an Islamist head of state.

President Mohamed Mursi, the Muslim Brotherhood politician elected in June, kissed Ahmadinejad as he disembarked from his plane at Cairo airport. The leaders walked down a red carpet, Ahmadinejad smiling as he shook hands with waiting dignitaries.

Visiting Cairo to attend an Islamic summit that begins on Wednesday, the president of the Shi'ite Islamist republic is due to meet later on Tuesday with the grand sheikh of al-Azhar, one of the oldest seats of learning in the Sunni world.

Such a 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 visit.

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 in Egypt will result in a full restoration of diplomatic ties between states whose relations were broken off in 1980 - a year after the Iranian revolution and the conclusion of Egypt's peace treaty with Israel.

OBSTACLES TO FULL TIES

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.

The Mursi administration also wants to safeguard relations with Gulf Arab states that are supporting Cairo's battered state finances and are deeply suspicious of Iran. Mursi wants to preserve ties with the United States, the source of $1.3 billion in aid each year to the influential Egyptian military.

Mursi's government has established close ties with Hamas, a movement backed by Iran and shunned by the West because of its hostility to Israel, but its priority is addressing Egypt's deep economic problems.

"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.

Ahmadinejad's visit to Egypt follows Mursi's visit to Iran in August for a summit of the Non-Aligned Movement.

Sheikh Ahmed al-Tayeb, head of the 1,000-year-old al-Azhar mosque and university, will meet Ahmadinejad at his offices in mediaeval Islamic Cairo, al-Azhar's media office said.

Iranian Foreign Minister Ali Akbar Salehi stressed the importance of Muslim unity when he met Sheikh al-Tayeb at al-Azhar last month.

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 by the 1979 Iranian revolution. He is buried in a medieval Cairo mosque alongside his ex-brother-in-law, Egypt's last king, Farouk.

(Additional reporting by Ayman Samir; Editing by Andrew Roche)

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Jillian Michaels: My Son Phoenix Is 'Fiery' Like Me

Mom & Babies
Celebrity Baby Blog

02/04/2013 at 03:00 PM ET

Gregg DeGuire/WireImage

Jillian Michaels‘ son Phoenix is already taking after his mama — just not the expected one!

Although The Biggest Loser trainer expected her baby boy to inherit her partner’s laidback approach to life — Heidi Rhoades delivered their son in May — the 8-month-old’s budding personality is the polar opposite.

“He wants to walk and he gets really pissed about it when he can’t. He gets frustrated,” Michaels, 38, told PEOPLE at the recent TCAs.

“He’s a fiery little sucker, he’s just like me. I’m like, ‘You were supposed to be like Heidi!’ But he’s not. It’s not good, not good.”

Admitting she is “terrified for when he’s a teenager,” Michaels has good reason to be: Recently she spotted her son — who is “crawling aggressively” — putting his electrician skills to the test in the family room.

“He’s into everything, which is kind of a nightmare to be totally honest,” she says. “We have an outlet in the floor in the living room and I caught him eating the outlet on the floor … I was like, ‘Mother of God!’”

Phoenix’s big sister Lukensia, 3, has also been busy keeping her mamas on their toes. “Lu just had her first ski trip and she had a little crush on her teacher, Ollie,” Michaels shares.

“At first I was like, ‘Oh my God, we’re letting our baby go!’ The second day we took her she ran right to him — loves Ollie.”

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