Monster Worldwide reports loss; exits Brazil, Mexico & Turkey






(Reuters) – Online recruitment company Monster Worldwide Inc, which is up for sale, reported a quarterly loss and said it had exited its businesses in Brazil, Mexico and Turkey.


The company also said it sold its China operations to Saongroup, a Dublin-based recruitment firm, and took a 10 percent stake in the combined business.






Monster said in November it would sell its money losing business in China to focus on its core North American and European businesses.


Monster has been hurt by weak job markets in the United States and Europe, which generate the lion’s share of its revenue, as well as growing competition from social networking sites.


The parent of Monster.com retained Stone Key Partners and Bank of America Merrill Lynch in March 2012 to review strategic alternatives including a sale of the company.


Monster reported a net loss of $ 73 million, or 66 cents per share, in the fourth quarter, from $ 10.9 million, or 9 cents per share, a year earlier.


The company recorded pre-tax charges of $ 23 million during the quarter ended December, and said it expects additional charges in the range of $ 27 million to $ 37 million in the first half of 2013.


Excluding items, the company earned 8 cents per share.


Revenue dropped 10 percent to $ 211.2 million.


Monster’s shares have dropped about a fourth since the company said it was reviewing strategic alternatives. They closed at $ 5.85 on the New York Stock Exchange on Wednesday.


(Reporting by Sagarika Jaisinghani in Bangalore; Editing by Akshay Lodaya)


Tech News Headlines – Yahoo! News





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Scott Neeson Left Hollywood to Save Kids in Cambodia's Slums

Scott Neeson's life in Hollywood was dreamy – he had the million-dollar salary, the yacht, the A-list contacts and a packed social calendar.

But after he stepped into a nightmare in Cambodia's Steung Meanchey garbage dump in December 2003, he walked away from all his wealth to help some of the poorest children in the world.

At the dump in the Cambodian capital of Phnom Penh he saw a girl, dressed in rags, picking through syringes and broken glass. Her name, Neeson learned through an interpreter, was Srey Nich. She was 9 and lived in the dump with her mother and younger sister; there they collected scraps, which they sold for money to buy food.

"How could anyone survive here?" Neeson recalls thinking. "I couldn't look away."

So, Neeson, 53, gave up his Hollywood life and never looked back. Once president of 20th Century Fox International, overseeing films from Titanic to X-Men, the Scottish-born executive drove a Porsche and lived in ritzy Brentwood.

Today, he lives in a two-story home that doubles as office space for his nonprofit Cambodian Children's Fund. Since 2004, Neeson's charity has helped house, educate and provide health care for more than 1,450 children in the country's most desperate slums.

"Scott is a remarkable human being who put his life on the line to help children in Cambodia who had no hope," says Dr. Jay Winsten, associate dean of the Harvard School of Public Health. "Now they have a future."

Neeson says that his life is better now because of his decision.

"I miss a lot of things about Hollywood." he says, "but I wouldn't change this for the world."

Poverty To Riches

Neeson never imagined much of a future for himself. Growing up in a working-class neighborhood in Elizabeth, Australia, where his father worked for the Department of Defense and his mother as a cleaning lady, he was a frail kid, unhappy both at home and in school.

"A lot of teachers said I'd be unemployed, spend my life on welfare," he says.

He dropped out of high school and found work delivering movie posters to theaters, working his way up to projectionist and then assistant to the director of movie programming, eventually landing the position of managing director at an Australian film distributor that later merged with Sony. By 1993 he was vice president of international marketing for Fox and moved to America, ultimately being promoted to president in 2003.

"Scott was a major driving force," says former Fox colleague Gina Kilberg, now senior vice president of international media at Sony. "He was very motivated to be successful."

Scott Neeson Left Hollywood to Save Kids in Cambodia's Slums| Heroes Among Us, Good Deeds, Real People Stories, Real Heroes

Scott Neeson at a fundraiser for his organization in 2012

Joe Scarnici / Getty

And along with success came lavish perks. "Cindy Crawford lived two doors down from me," he says, laughing. "For someone who'd been told over and over he'd never amount to anything, to earn a million dollars and have this great lifestyle was something I'd never dreamed of."

Life-Changing Trip

The excesses of that life came into sharp focus on his second trip to Phnom Penh just a few months after his first. He had returned to the dump and was trying to help three sick children when he got a call on his cell phone. It was an agent whose star client was having a meltdown before boarding his private jet because it wasn't properly stocked with his favorite amenities.

"The actor said, 'My life wasn't meant to be this difficult.' The kids I was with were very sick and here's this movie star yelling," says Neeson. "If I needed a sign, that was it."

These days Neeson (who's lived in Cambodia for the past 10 years) is as driven as he ever was, only about different things. He starts work at dawn with a cup of coffee from his espresso machine – his one luxury – and leaves the country only for fund-raising trips. He uses his formidable negotiating skills to persuade desperate and starving parents to enroll their kids in his school or bring a sick baby to his clinic.

"I guess I identify with [the kids] never believing they could do anything with their lives," he says. "They've been through so much, but they're so hugely energetic and joyful. I've got more love in my life than I ever thought existed. My fear is what would have happened to me if I was still living a life all about me."

For the road he did take, Neeson only need thank Srey Nich, that first little girl from the dump. Using his own money, Neeson got Srey Nich and her family out of the now-closed dump and into a house. She then became one of the original students at Neeson's CCF school. Today, 18 years old and planning for college next year, she says Neeson changed everything for her.

"The dump was a very bad, dirty place," she says. "Now my life has changed. I can speak English with you, I have the opportunity to go to school. Everything is different."

How He's Helping

• More than 1,450 students attend the school, which supplements public education – and nearly all stay on.

• After learning cooking and customer-service skills, about 100 students have landed jobs in restaurants and hotels.

• Three full-time doctors and seven nurses treat more than 3,000 patients a month at the free medical clinic.

Know a hero? Send suggestions to heroesamongus@peoplemag.com. For more inspiring stories, read the latest issue of PEOPLE magazine

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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 to open lower after Tuesday rally, results eyed

NEW YORK (Reuters) - Stocks were poised to open lower Wednesday, indicating the S&P 500 may retreat as it faces resistance to further gains beyond five-year highs in the wake of a 1-percent rally on Tuesday.


A 6-percent advance this year so far has lifted the S&P 500 index to its highest since December 2007, while the Dow <.dji> briefly climbed above 14,000, making it a challenge for investors to continue pushing the equity market upward amid a dearth of fresh trading incentives.


Walt Disney Co beat estimates for quarterly adjusted earnings and said it expected the next few quarters to be better, with a stronger lineup of movies and rising attendance at its theme parks. Shares advanced 2.8 percent to $55.81 in premarket trading.


"You knew a correction was coming; the question was whether they were going to tease you and get it close and then start selling it off or get it up to 14,000 and then start to make a move to the sell side," said Gordon Charlop, managing director at Rosenblatt Securities in New York.


"We got a quick move and it's really just not healthy for markets to go one way, so the idea that a little bit of a correction is due isn't troublesome to me at all."


According to Thomson Reuters data through Tuesday morning, of 278 companies in the S&P 500 <.spx> that have reported earnings, 68.7 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters. In terms of revenue, 66 percent of companies have topped forecasts.


In another positive sign for profits, fourth-quarter earnings for S&P 500 companies are now expected to grow 4.5 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


S&P 500 futures fell 6 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 51 points, and Nasdaq 100 futures declined 9.75 points.


The benchmark S&P index rose 1.04 percent Tuesday, its biggest percentage gain since a 2.5-percent advance on January 2, when legislators sidestepped a "fiscal cliff" of spending cuts and tax hikes that could have hurt a fragile U.S. economic recovery.


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 recently reported better-than-expected results but said its revenue growth could slow in the first half of the year due to economic uncertainty.


Ralph Lauren Corp climbed 5.5 percent to $174 in premarket trading after the fashion company and retailer reported holiday quarter sales and profits that showed renewed momentum.


Time Warner Inc gained 3.1 percent to $51.49 before the bell 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.


(Editing by Bernadette Baum)



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Tunisia protests after government critic shot dead


TUNIS (Reuters) - A Tunisian opposition politician was shot dead on Wednesday, sending protesters onto the streets of cities nationwide two years after the uprisings that swept Tunisia's president from power and inflamed 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 critic of the government, was gunned down outside his home in the capital.


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


Despite calls for calm from the president, 8,000 protesters, massed outside the Interior Ministry, calling for the fall of the government, and thousands more demonstrated in cities including Mahdia, Sousse, Monastir and Sidi Bouzid, the cradle of the revolution, where police fired teargas and warning shots.


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


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


But like 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 freedoms, with no sign of new jobs or improvements in infrastructure.


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 dominated previously by a secular elite under the dictatorship 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, worrying the secular-minded among the 11 million Tunisians, who fear freedom of expression is in danger.


Declining trade with the crisis-hit euro zone has also 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.


"We will continue to fight the enemies of the revolution," the secularist leader told European Union lawmakers in Strasbourg.


Belaid, who died in hospital, was a leading member of the opposition Popular Front party. A lawyer and human rights activist, he 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 leader of the Popular Front, told Reuters. "Doctors told us that he has died. This is a sad day for Tunisia."


DENIES INVOLVEMENT


Ennahda Prime Minister Jebali 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.


Party President Rached Ghannouchi denied any involvement in the killing. Belaid said earlier this week that dozens of people close to the government attacked a meeting of his party.


"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 after a 2011 uprising. "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," Ghannouchi 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.


French President Francois Hollande condemned the shooting, saying 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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Zynga 4Q loss narrows as game maker cuts costs






NEW YORK (AP) — Online games company Zynga said its loss narrowed in the latest quarter even though revenue was largely unchanged as the company cut expenses by laying off workers, closing offices and shutting down poorly performing games.


The results exceeded Wall Street’s muted expectations, and Zynga Inc.‘s battered shares increased nearly 7 percent in after-hours trading after the release of the results. After a difficult 2012 in which Zynga saw its stock price decline by 75 percent, CEO Mark Pincus called 2013 a “pivotal transition year” for the company as it seeks to cut costs further and broaden revenue sources, especially from mobile games.






Zynga went public in December 2011 with a lot of promise. Games such as “FarmVille” and “CityVille” were popular on Facebook, as the social media company was itself preparing for a highly anticipated initial public offering of stock.


But Facebook’s stock stumbled, and Zynga’s tumbled with it. Demand for Zynga’s games weakened, and investors were worried both about Zynga’s overreliance on Facebook for its revenue and signs that the two were growing apart. Zynga’s stock ended 2012 at $ 2.36, well below the IPO price of $ 10.


Zynga responded by announcing in October that it was cutting about 5 percent of its full-time workforce of roughly 3,200 employees. The San Francisco company also killed 13 older games and closed development studios in Boston and elsewhere.


Those cuts helped.


Zynga said Tuesday that it lost $ 48.6 million, or 6 cents per share, in the October-December period. That compares with a loss of $ 435 million, or $ 1.22 per share, in the same period a year earlier. Zynga began trading publicly on Dec. 16, 2011, and was privately held for most of the 2011 quarter.


Zynga’s revenue was largely unchanged at about $ 311 million. But it was well above analysts’ average estimate of $ 250 million, as polled by FactSet.


Zynga cut fourth-quarter expenses by two-thirds, to $ 274 million from $ 798 million.


Though its fortunes have faded, Zynga is still the most popular maker of games on Facebook. As of the end of the year, it had five of the top 10 games played on the world’s largest social networking site. “FarmVille 2,” which launched in September, performed well — the company said it was its most successful game launch in two years.


Zynga said it had 298 million active users each month on average in the fourth quarter, up 24 percent from 240 million a year earlier. But that’s down 4 percent from 311 million in the third quarter of 2012.


Like Facebook, Zynga is trying to position itself as a mobile company as people spend more time on smartphones and tablet computers. The company said it had 72 million monthly players on mobile devices.


“Mobile, however, remains a more fragmented experience. Despite the incredible growth in mobile gaming, it’s still hard for any of us to find people to actually play with,” Pincus said in a conference call with analysts. “We’re amazed that the number one way our ‘Words With Friends’ players find new opponents in their games is through the ‘random’ button. We know we can offer them something more compelling than that.”


Zynga’s chief operating officer, David Ko, said in an interview that growing the company’s paying mobile user base is “part of a long-term strategy for us”


“Two years ago, about 20 people were focusing on mobile,” he said. “Today we have almost the entire company focused on (the) mobile opportunity.”


For the current quarter, Zynga said it expects an adjusted loss of 5 cents to 4 cents per share and revenue of $ 255 million to $ 265 million. Analysts were predicting a loss of 1 cent per share and revenue of $ 268 million.


Shares climbed 19 cents, or 6.9 percent, to $ 2.93 in after-hours trading after gaining 18 cents to close at $ 2.74 during the regular session. Zynga’s stock has traded from $ 2.09 to $ 15.91 in the past 52 weeks.


Gaming News Headlines – Yahoo! News





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Snoop Dogg Gets the Party Started with Ben Affleck and Jennifer Lawrence















02/06/2013 at 06:00 AM EST







Ben Affleck and Jennifer Lawrence, inset: Snoop Lion (Dogg)


Valerie Goodloe/PictureGroup; Frederick M. Brown/Getty


Guess the "O" in "O.G." stands for Oscar.

Ben Affleck and Jennifer Lawrence both attended the Hollywood Reporter's Nominees' Night 2013 at Spago in Beverly Hills on Monday.

It was a low-key affair at first, with Affleck holding court in a central area of the soiree, where he was animated while chatting with people and seemed excited and genuinely happy.

The Argo star and director, looking handsome in a suit, also obliged guests who approached him for photos.

Lawrence was spotted embracing her Silver Linings Playbook costar Julia Stiles. "You're so stunning!" Stiles told Lawrence just before taking a snapshot together.

As the evening continued, it was clear that Lawrence was the darling of event. Fellow guests were going up and telling her she is beautiful and they're so proud of her and Lawrence was ever the gracious guest, chatting with anyone who approached her.

But it wasn't until Snoop Lion (Dogg) arrived, who went by the deejay name Snoopadelic, that the party really went into full gear. After a lengthy intro that included a clip-filled video, Snoop emerged, gave an intro of his own – he praised Argo and shouted for Affleck to come take a photo with him before the night's end – and began playing an eclectic mix of songs, which included everything from Pat Benatar to 2 Chainz.

– Dahvi Shira


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Bullying study: It does get better for gay teens


CHICAGO (AP) — It really does get better for gay and bisexual teens when it comes to being bullied, although young gay men have it worse than their lesbian peers, according to the first long-term scientific evidence on how the problem changes over time.


The seven-year study involved more than 4,000 teens in England who were questioned yearly through 2010, until they were 19 and 20 years old. At the start, just over half of the 187 gay, lesbian and bisexual teens said they had been bullied; by 2010 that dropped to 9 percent of gay and bisexual boys and 6 percent of lesbian and bisexual girls.


The researchers said the same results likely would be found in the United States.


In both countries, a "sea change" in cultural acceptance of gays and growing intolerance for bullying occurred during the study years, which partly explains the results, said study co-author Ian Rivers, a psychologist and professor of human development at Brunel University in London.


That includes a government mandate in England that schools work to prevent bullying, and changes in the United States permitting same-sex marriage in several states.


In 2010, syndicated columnist Dan Savage launched the "It Gets Better" video project to encourage bullied gay teens. It was prompted by widely publicized suicides of young gays, and includes videos from politicians and celebrities.


"Bullying tends to decline with age regardless of sexual orientation and gender," and the study confirms that, said co-author Joseph Robinson, a researcher and assistant professor of educational psychology at the University of Illinois in Urbana-Champaign. "In absolute terms, this would suggest that yes, it gets better."


The study appears online Monday in the journal Pediatrics.


Eliza Byard, executive director of the Gay, Lesbian & Straight Education Network, said the results mirror surveys by her anti-bullying advocacy group that show bullying is more common in U.S. middle schools than in high schools.


But the researchers said their results show the situation is more nuanced for young gay men.


In the first years of the study, gay boys and girls were almost twice as likely to be bullied as their straight peers. By the last year, bullying dropped overall and was at about the same level for lesbians and straight girls. But the difference between men got worse by ages 19 and 20, with gay young men almost four times more likely than their straight peers to be bullied.


The mixed results for young gay men may reflect the fact that masculine tendencies in girls and women are more culturally acceptable than femininity in boys and men, Robinson said.


Savage, who was not involved in the study, agreed.


"A lot of the disgust that people feel when you bring up homosexuality ... centers around gay male sexuality," Savage said. "There's more of a comfort level" around gay women, he said.


Kendall Johnson, 21, a junior theater major at the University of Illinois, said he was bullied for being gay in high school, mostly when he brought boyfriends to school dances or football games.


"One year at prom, I had a guy tell us that we were disgusting and he didn't want to see us dancing anymore," Johnson said. A football player and the president of the drama club intervened on his behalf, he recalled.


Johnson hasn't been bullied in college, but he said that's partly because he hangs out with the theater crowd and avoids the fraternity scene. Still, he agreed, that it generally gets better for gays as they mature.


"As you grow older, you become more accepting of yourself," Johnson said.


___


Online:


Pediatrics: http://www.pediatrics.org


It Gets Better: http://www.itgetsbetter.org


___


AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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Wall Street rebounds from steep decline


NEW YORK (Reuters) - U.S. stocks rose on Tuesday, rebounding from their worst daily loss since November in the prior session.


The Dow Jones industrial average <.dji> was up 84.21 points, or 0.61 percent, at 13,964.29. The Standard & Poor's 500 Index <.spx> was up 9.12 points, or 0.61 percent, at 1,504.83. The Nasdaq Composite Index <.ixic> was up 10.31 points, or 0.33 percent, at 3,141.48.


(Reporting By Angela Moon; Editing by Kenneth Barry)



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Iran's Ahmadinejad in Egypt on historic visit


CAIRO (Reuters) - Mahmoud Ahmadinejad arrived in Egypt on Tuesday on the first trip by an Iranian president since the 1979 revolution, underlining a 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 after the Iranian revolution and the conclusion of Egypt's peace treaty with Israel in 1979.


OBSTACLES TO FULL TIES


At the airport the two leaders discussed ways of boosting relations between their countries 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.


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.


Egyptian Foreign Minister Mohamed Kamel Amr reassured Gulf Arab allies that Egypt would not jeopardize their security.


"The security of the Gulf states is the security of Egypt," he told the official MENA news agency, in response to questions about Cairo's opening to Iran and its impact on other states in the region.


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


His 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.


Speaking to Reuters on the sidelines of preparatory meetings for the two-day Islamic summit, 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 said. Asked where he saw room for closer ties, he said: "Trade and economics."


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.


Salehi, the Iranian foreign Minister, 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 and Alexander Diadosz; Editing by Andrew Roche and Paul Taylor)



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