Obama: "No doubt" more revenue still needed

One month after signing into law a "fiscal cliff" deal upping taxes on American families making more than $450,000 a year, President Obama said today there's "no doubt" additional revenue is needed to bring down the U.S. deficit, but believes lawmakers can do it "without raising taxes again."

"I don't think the issue right now is raising rates," the president said in an interview with CBS Evening News anchor Scott Pelley. "There's no doubt we need additional revenue, coupled with smart, spending reductions in order to bring down our deficit. And we can do it in a gradual way so that it doesn't have a huge impact."

Rather than raising taxes, the president proposed gutting government waste, reforming health care - "we spend a lot more on health care than any other country does, and we don't get better outcomes," he said - and closing loopholes that he suggested allow wealthy Americans to manipulate their tax rates.

"Can we close loopholes and deductions that folks who are well connected, and have a lot of accountants and lawyers, can take advantage of, so they end up paying lower rates than say, a bus driver or a cop?" Mr. Obama asked. "The average person can't take advantage of them.

"The average person doesn't have access to Cayman Island accounts," the president continued, in what may have been a punch at 2012 Republican nominee Mitt Romney's "tax haven" in the Caribbean. "The average person doesn't have access to 'carried interest income,' where they end up paying a much lower rate on billions of dollars that they've earned.

"...We just want to make sure that the whole system is fair, that it's transparent, and that we're reducing our deficit in a way that doesn't hamper growth reduce the kinds of strategies that we need," he concluded.

Earlier this week, a new GDP report showed the U.S. economy shrank 0.1 percent in the fourth quarter of 2012. Mr. Obama reasoned that a sudden drop in defense spending amid the so-called "fiscal cliff" was to blame, and called on Congress to act to avert a series of automatic spending cuts set to trigger in March.

"Washington cannot continually operate under a cloud of crisis," he said. "That freezes up consumers, it gets businesses worried. We can't afford these self-inflicted wounds. There is a way for us to solve these budget problems in a responsible way, through a balanced approach... if we do that, there's no reason why we can't have really strong growth in 2013."

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Super Bowl XLVII: Ravens Hang On, 34-31

Chris Graythen/Getty Images

11:11 p.m. ET: Well, that’s it for the live blog. The game is over, but there’s still a lot for football fans to talk about – lots of missed chances, maybe or maybe not blown calls or no-calls, and, in the end, an epic win for the Baltimore Ravens.

11:06 p.m. ET: First Lady Michelle Obama tweeted her congratulations to the Ravens: “Great game! Congrats to the @Ravens. See you at the White House! -mo”

11:01 p.m. ET: MVP Joe Flacco says this game is emblematic of the city of Baltimore, before handing the Lombardi trophy to Ray Lewis, who says, “when God is for you, who can be against you?”

RELATED: Almighty Referee, God on Side Lines at the Big Game

11:00 p.m. ET: John Harbaugh says facing his brother in this game was the hardest thing he’s ever done. He says he told him he loved him when they met on the field after the game, and Jim congratulated him.

Dave Martin/AP Photo

10:58 p.m. ET: The Ravens made the playoffs for the last 5 seasons – and this is the first Super Bowl win since 2000.

10:57 p.m. ET: Super Bowl XX MVP Richard Dent carries in Vince Lombardi trophy.

10:54 p.m. ET: Lots of things this game will be remembered for: Harbowl, Ray Lewis final victory, incredible performance by MVP Joe Flacco, Beyonce halftime show, and the 34 minute power outage.

Chris Graythen/Getty Images

10:50 p.m. ET: Tonight’s victory means the Baltimore Ravens are the only NFL team to never lose a Super Bowl in multiple appearances. The 49ers are now 5-1 in Super Bowl appearances.

10:47 p.m. ET: Well, it was an entertaining, intense, instant-classic game, that ends with the Baltimore Ravens’ QB, Joe Flacco named MVP.

10:46 p.m. ET: Lots of audible cursing on the field. “F-bomb” trending nationally on twitter.

10:45 p.m. ET: The Harbaugh brothers meet on the field for the handshake.

10:45 p.m. ET: RAVENS WIN 34-31

10:44 p.m. ET: Another Ravens timeout – the last few seconds of this game are taking a long time. 49ers put up a huge fight, but looks like they’ll fall just short of a miraculous comeback.

10:42 p.m. ET: 4 seconds left in the game after Ravens intentionally take a safety. 34-31 Ravens.

10:40 p.m. ET: Baltimore time out with :12 seconds left.

10:38 p.m. ET: 49ers players on the sidelines looking distraught. And Jim Harbaugh still looks angry about the no -call.

10:37 p.m. ET: Niners use their final time out with 1:42 left to play.

10:36 p.m. ET: Ravens get the ball back, and call a timeout with 1:46 remaining in the game.

10:35 p.m. ET: Incomplete pass and Jim Harbaugh is having one of his patented meltdowns on the sidelines.

10:34 p.m. ET: 4th and goal from the 5-yard line after an incomplete pass.

10:33 p.m. ET: 30-second timeout for the 49ers. Good timing, almost a delay of game penalty there.

10:32 p.m. ET: Now 3rd and goal for the 49ers. A stop here would be huge for the Ravens. 1:55 left in the game.

10:29 p.m. ET: Second and goal at the 5-yard line. This game is crazy. 49ers take a timeout at the 2 minute warning.

10:28 p.m. ET: And another quick first down with 2:39 left. First and goal.

10:26 p.m. ET: On 2nd and 10 Kaepernick connects with Crabtree picking up a first down.

10:24 p.m. ET: 49ers pick up seven on the first down. Less than 4 minutes left in the game.

10:22 p.m. ET: 38-yard field goal attempt good for the Ravens. Baltimore up by 5 with 4:19 left in the game. The 49ers still have two timeouts left. 34-29 Ravens.

10:20 p.m. ET: Offsides calls on the defense – five yard penalty makes it 3rd and 2 for the Ravens. Lots of penalties for the 49ers tonight.

10:18 p.m. ET: No matter – Ravens quickly pick up two first downs.

10:17 p.m. ET: Good challenge by Jim Harbaugh. Now 3rd and inches for the Ravens.

10:16 p.m. ET: Super Bowl attendance announced at 71,024. No wonder it got hot during the power outage when the AC cut out.

10:14 p.m. ET: San Francisco challenging first down. Risky move – the team only has two timeouts left with more than 7 minutes left in the game.

10:11 p.m. ET: Pass interference called on the 49ers, automatic first down for the Ravens. Rough week for Chris Culliver.

RELATED: 49ers Chris Culliver to Have Sensitivity Training After Anti-Gay Comments

10:08 p.m. ET: This game could come down to a field goal – many 49ers fans’ biggest fear after Akers’ season.

10:06 p.m. ET: Incomplete throw on the two-point conversion attempt. Kaepernick’s run was the longest rushing touchdown for a quarterback ever in the Super Bowl. 31-29 Ravens.

10:05 p.m. ET: Kaepernick rushes for a touchdown. Niners trying for two-point conversion to try to tie this game up.

Related: ‘Kaepernicking is all the craze after 49ers beat Green Bay

10:04 p.m. ET: TOUCHDOWN 49ERS.

10:03 p.m. ET: And Gore picks up another one. Niners inside the Ravens 20.

10:02 p.m. ET: Randy Moss picks up a first down at the Ravens 39.

9:57 p.m. ET: Incomplete on 3rd and goal. 19-yard field goal attempt is good. 31-23 Ravens.

9:56 p.m. ET: On 1st and goal, Ravens stopped one yard short of the end zone. 2nd and goal.

9:54  p.m. ET: Bernard Pierce not expected to return to the game with a leg injury.

9:51  p.m. ET: First down for the Ravens with an 8-yard gain. Bernard Pierce looks really shaken up after that tackle. Third quarter ends with score still 28-23 Ravens.

9:46  p.m. ET: Scary looking tackle of Jones on the return. Impressive that he kept hold of the ball.

RELATED: Obama: Safety a Concern for Young Football Players

9:44  p.m. ET: Akers gets a redo, and drills it. 17 unanswered points in a 4:10 drive for the 49ers. 28-23 Ravens.

9:43  p.m. ET: Replay of fourth down on a penalty. Ravens player ran into Akers. 4th and 2 for the Niners.

9:43  p.m. ET:  Akers kick no good, but there’s a flag on the field

9:41  p.m. ET: Superdome representative releases statement apologizing for the incident, and NFL statement says authorities are “investigating the cause of the power outage.”

9:40  p.m. ET: Fumble recovered by the 49ers. Momentum definitely swinging the 49ers way.

9:36  p.m. ET: It’s a one score game as Akers drills the extra point. He’s having a surprisingly good game, considering his dismal season. 28-20 Ravens.

9:34  p.m. ET: Frank Gore gets the ball into the end zone, and there’s a player down on the field. 28-19 Ravens.

9:32  p.m. ET: TOUCHDOWN 49ERS.

9:32  p.m. ET: First down by Vernon Davis – this game suddenly got much more interesting. 1st and goal for the Niners.

9:30  p.m. ET: Sack by Admad Brooks – big change of momentum as Ravens punt (badly) – with a big return by the 49ers.

9:28  p.m. ET: Now it’s up to the 49ers defense to keep San Francisco in this game. Jacoby Jones carried the ball to the Ravens 17. His previous carry, intially listed at 109 yards, has been changed to 108 yards, tying the all-time record, not breaking it.

Evan Vucci/AP Photo

9:25  p.m. ET: First touchdown for San Francisco this game, after Kaepernick connects with Crabtree, who runs it into the end zone after an 80-yard drive. 28-13 Ravens.

9:24  p.m. ET: TOUCHDOWN 49ERS.

9:21  p.m. ET: Randy Moss has his first grab of the game, and San Francisco takes a timeout.

9:20  p.m. ET: Great throw by Kaepernick, dropped by Crabtree. 3rd and 8.

9:19  p.m. ET: There it is – a scramble for 15 yards – a first down and some. That’s 36 yards rushing for him now.

9:18  p.m. ET: Kaepernick scrambles for a gain of five. For somebody who has used his legs so successfully this season, he seems really hesitant to try it in this game. 2nd and 5 49ers.

9:15  p.m. ET: Touchback – 49ers will start with the ball at their 20-yard line.

9:12  p.m. ET: Game resumes largely as it played out before the delay. Flacco immediately gets a first down with a 15 yard toss.

9:11  p.m. ET: Not a great start after the delay for the 49ers. A gain of 7, but short of a first down. Andy Lee comes out for the punt.

9:10  p.m. ET: That was a 34 minute delay. No statement from the NFL yet, but that must have been really frustrating for both teams.

READ MORE: Social Media Reacts to the Super Bowl Blackout

9:10  p.m. ET: Apparently, part of the holdup was the electrical equipment on the 49ers side going out with the power. Play set to resume in the next minute or so.

9:08  p.m. ET: Luckily, so far there have been no disturbances reported in the crowd during this blackout delay.

9:05  p.m. ET: Obviously, how each team reacts in the first drive right after this power outage and long delay will be huge. In case you forgot, the 49ers will get the ball at the SF 40 after a Kaepernick sack. 3rd and 13 for the Niners.

9:00  p.m. ET: And there’s already a @SuperbowlLights twitter account.

8:59  p.m. ET: Law enforcement source tells ABC News the power outage is just a technical issue, nothing nefarious. Reporters at the game say they heard a boom in the stadium before the lights went out. Lights slowly coming back on, and players still on the field.

Matt Slocum/AP Photo

8:54  p.m. ET: The AC is apparently also out at the closed stadium, and people say it’s getting hot in there with such a huge crowd and the lights that are on.

8:51  p.m. ET: Considering the score, the fact that this power outage delay may last as long as 20 minutes, and the fact that the halftime show is over, I wonder how many people are tuning out right about now.

8:51  p.m. ET: Power surge to blame, apparently.

8:48  p.m. ET: “Bring Beyonce Back” trending on Twitter now.

READ MORE The Internet Love Beyonce

8:45  p.m. ET: Players trying to stay warmed up on the field, and fans sound like they’re getting really antsy.

8:44  p.m. ET: Commercials cost around $4 million for a 30-second spot, and with these extra commercial breaks, some of them might really be getting their money’s worth.

8:40  p.m. ET:  Sideline reporter says half the lights in the stadium are out, including the scoreboard.

8:40  p.m. ET: 100 million people are expected to be watching the game today…a game that is suddenly not happening as the power cut out during the third quarter.

8:38  p.m. ET: Cut to commercial as the power goes out at the stadium. The game just got even stranger.

8:38  p.m. ET: And the power is out at the Super Dome.

READ MORE: New Orleans in the Spotlight for the Super Bowl

8:37  p.m. ET: Kaepernick sacked for a loss of 6. 3rd and 13.

8:35  p.m. ET: 49ers to start their drive at the 13-yard line.

8:34  p.m. ET:  The biggest deficit ever overcome in the Super Bowl is ten points. It’s been done twice.

Ronald Martinez/Getty Images

8:32  p.m. ET: That was fast (11 seconds to be exact) – a 109-yard kickoff return touchdown by Jacoby Jones. An all-time NFL record. 28-6 Ravens.

8:32  p.m. ET: TOUCHDOWN RAVENS.

8:31  p.m. ET: Back to football. Ravens to receive to start off.

READ MORE: Beyonce Sings Biggest Hits with Surprise Guests

8:27  p.m. ET: First Lady Michelle Obama liked the halftime show. She just tweeted “Watching the #SuperBowl with family & friends.@Beyonce was phenomenal! I am so proud of her! -mo” from her FLOTUS twitter account.

8:22  p.m. ET: And Beyonce ends an impressive and energetic halftime performance with “Halo.”

8:19  p.m. ET: Looks like the DC reunion is over – it was fun while it laster!

Gerald Herbert/AP Photo

8:16  p.m. ET: Destiny’s Child reunion for “Bootylicious!”

8:14  p.m. ET: So many Beyonces!

8:12  p.m. ET: For the halftime performance, there are 135 dancers on the field, and 2,000 fans. And really cool visuals on the stage.

8:10  p.m. ET: Beyonce kicks off the halftime show with “Love on Top” followed by “Crazy in Love.”

8:07  p.m. ET: Here’s what the President and First Lady are eating at their Super Bowl party: Chesapeake Crab Cakes and San Francisco Cioppino Stew with Sourdough Toast. There are also wings, and they’re drinking Anchor Steam and Clipper City beers.

RELATED: Obama Hoping for Close Match in Super Bowl

8:05  p.m. ET: Still, the 49ers rallied from a 17-0 deficit to make it to the Super Bowl so it’s tough to count them out just halfway through.

8:04  p.m. ET: Ravens dominating so far, and it’s not even really close. While the teams take a breather, Beyonce heads to the field for the half time show.

8:00  p.m. ET: First half ends with a Ray Lewis sack. The likely future Hall of Famer is retiring after this game. Strangely enough, his first NFL sack was of Jim Harbaugh – who is currently coaching the 49ers. Also in that game? Randy Moss, who is currently having a rough game for the 49ers.

7:59  p.m. ET: Field goal is Good. 21-6 Ravens at the half.

7:58  p.m. ET: Really looks like the big game jitters are getting to Kaepernick. Ray Lewis sack brings out Akers for a field goal attempt.

7:55  p.m. ET: Fun Fact – Kaepernick was drafted by the Chicago Cubs as a pitcher in 2009. You can see the pitcher still in him with some of these throws.

7:54  p.m. ET: 49ers back in the red zone after a few big gains. They still have two timeouts with less than one minute left in the second quarter.

7:52  p.m. ET: 15-yard penalty and automatic first down for the 49ers on a roughing the passer call.

7:50  p.m. ET: That’s Flacco’s 11th touchdown pass this postseason.

Dave Martin/AP Photo

7:49  p.m. ET: 21 – 3 Baltimore as incredible throw, catch and run lead to a touchdown for the Ravens. 49ers have A LOT of  work to do in the second half.

7:48  p.m. ET: TOUCHDOWN RAVENS.

7:45  p.m. ET: No flag on what looked like offensive pass interference as Culliver breaks up a Flacco long throw, and we hit the two-minute warning.

7:44  p.m. ET: 2nd and 10 for the Ravens with 2 minutes left in the second quarter. The Ravens will be receiving the ball at the beginning of the second half.

7:41  p.m. ET: Kaepernick, who had been noted for his great decision making calls under pressure, is having a rough game so far. At 25 years old, this start is only the tenth pro start of his career.

7:39  p.m. ET: Awesome 9-year-old girl football player Sam Gordon is in the house!

Obtained by ABC News

7:37  p.m. ET: Volkswagen’s controversial ad just aired – here’s Jamaica’s reaction to it.

RELATED: Controversial Volkswagen Super Bowl Ad Gets Viewer Approval

Harry How/Getty Images

7:37  p.m. ET: Gutsy fake field goal call considering the Ravens’ rookie kicker is about as sure a thing as there is for points.

7:36  p.m. ET: Tricky – fake field goal by the Ravens, but short of a first down.

7:34  p.m. ET: Almost an interception by the Niners, but it’s just an incomplete pass by Flacco. 3rd and 9.

7:31  p.m. ET: Another first down for the Ravens.

7:30  p.m. ET: Personal fouls by both teams cancel each other out. Ravens first down at 49ers 38.

7:29  p.m. ET: That interception is evidently the first time a 49ers quarterback has ever been intercepted in the Super Bowl (that’s five previous games). And Reed ties the record with his 9th postseason interception.

Jamie Squire/Getty Images

7:28  p.m. ET: Interception by Baltimore but flag is down and teams fighting on the field.

7:24  p.m. ET: After that commercial about sports fans’ superstitions – here’s an interesting article about when those superstitions cross the line into OCD.

7:22  p.m. ET: Penalties and that fumble killing San Francisco so far. 14-3 Ravens. Ten touchdowns and no interceptions so far this postseason for Flacco.

Harry How/Getty Images

7:22  p.m. ET: TOUCHDOWN BALTIMORE.

7:21  p.m. ET: Automatic first and goal for Ravens after another penalty – a personal foul on 49ers’ Whitner.

7:20  p.m. ET: Flacco connects with Dickson, and a flag is down.

7:19  p.m. ET: While they’re on the subject of Patrick Willis, here’s an interesting story about him and his “brother for life,” the Baltimore’s Michael Oher.

7:17  p.m. ET: Another first down for the Ravens. That’s 4/5 third down conversions for the Ravens so far.

7:16  p.m. ET: Major change of momentum, as Ravens get gain of about 5 after 49ers fumble.

7:12  p.m. ET: Fumble recovered by Ravens. First down for Baltimore.

7:12  p.m. ET: Another first down for the Niners.

7:11  p.m. ET: Another first down on gain of eleven with reception by Davis. Another another small scuffle breaks out. Teams clearly (obviously) passionate.

7:10  p.m. ET: Looks like Davis is okay – gain of 29 yards on great throw from Kaepernick.

7:08  p.m. ET: First Harbaugh parent sightings of the night! They’ve said tonight will be really bittersweet for them.

READ MORE: Super Bowl Bittersweet for Harbaugh Family

7:08  p.m. ET: They may be brothers, but side-by-side comparison of the Harbaugh brothers’ reactions to last play show totally different styles.

7:05  p.m. ET: Flacco sacked with 12 seconds left in quarter.

7:04  p.m. ET: Incomplete throw by Flacco with 17 seconds left in the 1st quarter.

7:03  p.m. ET: Unbelievable throw and catch by Boldin for 31-yards.

7:02  p.m. ET: 3rd and 7 for Ravens after incomplete pass by Flacco.

7:00  p.m. ET: 9-yard gain for the Ravens. Ed Reed in locker room for evaluation.

6:57  p.m. ET: Jacoby Jones returns kick to the 22-yard line. Ravens’ Ed Reed and 49ers’ Vernon Davis both apparently being checked out after Reed hit Davis on previous drive.

Harry How/Getty Images

6:55  p.m. ET: And to the relief of 49ers fans, David Akers field goal attempt is good. 7-3 Ravens.

6:54  p.m. ET: Kaepernick sacked. 49ers going for field goal.

6:53  p.m. ET: Davis out and being worked on by trainers. Second and goal, incomplete in the end zone, off of Crabtree’s hands.

6:52  p.m. ET: Vernon Davis, a super speedy tight end, with another first down on a 24-yard reception from Kaepernick. 1st and goal.

6:51 p.m. ET: And Gore with another first down.

6:50 p.m. ET: Kaepernick scrambles for a gain of seven, 2nd and 3.

6:50 p.m. ET: Kaepernick, who shocked the league with his legs when he took over from Alex Smith, gets a 1st down and then some.

6:49 p.m. ET: Gore gains nine, after having a rough few carries early.

6:48 p.m. ET: Huge, 19-yard game for Michael Crabtree, who broke out this season once Kaepernick took over the starting QB job.

6:46 p.m. ET: Already looking to be a really physical game as scuffle between players breaks out after 49ers loss of two yards.

6:45 p.m. ET: And here’s the GoDaddy commercial everybody has already been talking about – supermodel makes out with Hollywood’s favorite extra.

6:44 p.m. ET: Penalties already hurting the 49ers – big game jitters?

McNamee/Getty Images

6:41 p.m. ET: And the extra point is good. 7-0 Ravens

6:40 p.m. ET: TOUCHDOWN BALTIMORE. Ravens take an early lead with a reception by Anquan Boldin.

6:39 p.m. ET: On 3rd and 9, same thing happens, but flag is down for defensive offsides – five yard penalty and replay of 3rd down.

6:39 p.m. ET: Given some time, Flacco throws ball beyond end zone for an incompletion on 2nd and 9.

6:38 p.m. ET: Ravens QB, Joe Flacco, known for his exceptionally strong arm, gets the ball to Torrey Jones at the SF 19.

6:37 p.m. ET: And a first down for the Ravens from SF 39.

6:36 p.m. ET: Better start for the Ravens, who pick up eight yards on their first down of the game.

6:36 p.m. ET: And the first drive of the game goes nowhere; Andy Lee punts on 4th down, and Jacoby Jones returns to near the 50-yard line.

6:34 p.m. ET: On first and 15, no gain for 49ers all-time leading rusher, Frank Gore.

6:33 p.m. ET: Five yard penalty for the 49ers for illegal formation.

6:32 p.m. ET: Kaepernick connects with Vernon Davis for a gain of 20, but a flag is down.

6:31 p.m. ET: Here we go – 49ers start the first drive at the 20-yard line.

6:28 p.m. ET: Ravens chose heads, and elected to defer their choice until the second half. 49ers to receive at kickoff.

6:27 p.m. ET: Newest members of the Pro Football Hall of Fame join the team captains for the coin toss.

6:22 p.m. ET: Alicia Keys performs the Star Spangled Banner, wearing a red dress and playing a white piano at the 50-yard line.

WATCH: Alicia Keys Sings ‘The Star-Spangled Banner’

6:21 p.m. ET: Joint Armed Forces Color Guard present the flags.

6:20 p.m. ET: Hudson wearing a green ribbon in honor of the victims of the Sandy Hook school shooting while performing with the students.

Jamie Squire/Getty Images

6:19 p.m. ET: In a touching performance, Sandy Hook Elementary School students perform “America the Beautiful,” with Jennifer Hudson.

WATCH: Jennifer Hudson, Sandy Hook Students Perform “America the Beautiful”

6:18 p.m. ET: Jason Witten wins the 2012 Walter Payton NFL Man of the Year Award.

6:12 p.m. ET: And out come the 49ers.

6:11 p.m. ET: The Ravens players are introduced in the stadium to a raucous crowd.

6:09 p.m. ET: And another historic first tonight – the two head coaches are brothers, born just 15 months apart. John Harbaugh, 50, is in his fifth season as the Baltimore Ravens head coach, and has won playoff games in each of his previous seasons. Jim Harbaugh, 49, is in his second season as head coach of the San Francisco 49ers, leading his team to the playoffs both seasons.

6:05 p.m. ET: The San Francisco 49ers are going for their 6th Lombardi trophy, which would tie them for the most championships ever with the Pittsburgh Steelers. The Baltimore Ravens are trying for their second Super Bowl victory. Neither team has ever lost a Super Bowl game – and at the end of the night, there will only be one team left in the NFL to have never lost a Super Bowl game.

6:00 p.m. ET: It’s here – the biggest spectacle in American sports, the Super Bowl. We’ll be covering the game, performances and, of course, the commercials right here.

It’s been an incredible season so far, and everything has led up to tonight’s game in New Orleans, where the NFC Champion San Francisco 49ers face the AFC Champion Baltimore Ravens in Super Bowl XLVII. Keep refreshing for the latest updates throughout what promises to be a great game.

Read More..

Iran hedges on nuclear talks with six powers or U.S.

MUNICH (Reuters) - Iran said on Sunday it was open to a U.S. offer of direct talks on its nuclear program and that six world powers had suggested a new round of nuclear negotiations this month, but without committing itself to either proposal.

Diplomatic efforts to resolve a dispute over Iran's nuclear program, which Tehran says is peaceful but the West suspects is intended to give Iran the capability to build a nuclear bomb, have been all but deadlocked for years, while Iran has continued to announce advances in the program.

Iranian Foreign Minister Ali Akbar Salehi said a suggestion on Saturday by U.S. Vice President Joe Biden that Washington was ready for direct talks with Iran if Tehran was serious about negotiations was a "step forward".

"We take these statements with positive consideration. I think this is a step forward but ... each time we have come and negotiated it was the other side unfortunately who did not heed ... its commitment," Salehi said at the Munich Security Conference where Biden made his overture a day earlier.

He also complained to Iran's English-language Press TV of "other contradictory signals", pointing to the rhetoric of "keeping all options on the table" used by U.S. officials to indicate they are willing to use force to keep Iran from obtaining a nuclear weapon.

"This does not go along with this gesture (of talks) so we will have to wait a little bit longer and see if they are really faithful this time," Salehi said.

Iran is under a tightening web of sanctions. Israel has also hinted it may strike if diplomacy and international sanctions fail to curb Iran's nuclear drive.

In Washington, Army General Martin Dempsey, the top U.S. military officer, said in an interview broadcast on Sunday that the United States has the capability to stop any Iranian effort to build nuclear weapons, but Iranian "intentions have to be influenced through other means."

Dempsey, chairman of the Joint Chiefs of Staff, made his comments on NBC's program "Meet the Press," speaking alongside outgoing Defense Secretary Leon Panetta.

Panetta said current U.S. intelligence indicated that Iranian leaders have not made a decision to proceed with the development of a nuclear weapon.

"But every indication is they want to continue to increase their nuclear capability," he said. "And that's a concern. And that's what we're asking them to stop doing."

The new U.S. secretary of state, John Kerry, has said he will give diplomacy every chance of solving the Iran standoff.

THE BEST CHANCE

With six-power talks making little progress, some experts say talks between Tehran and Washington could be the best chance, perhaps after Iran has elected a new president in June.

Negotiations between Iran and the six powers - Russia, China, the United States, Britain, France and Germany - have been deadlocked since a meeting last June.

EU officials have accused Iran of dragging its feet in weeks of haggling over the date and venue for new talks.

Salehi said he had "good news", having heard that the six powers would meet in Kazakhstan on February 25.

A spokesman for EU foreign policy chief Catherine Ashton, who coordinates the efforts of the six powers, confirmed that she had proposed talks in the week of February 25 but noted that Iran had not yet accepted.

Kazakhstan said it was ready to host the talks in either Astana or Almaty.

Salehi said Iran had "never pulled back" from the stuttering negotiations with the six powers. "We still are very hopeful. There are two packages, one package from Iran with five steps and the other package from the (six powers) with three steps."

Iran raised international concern last week by announcing plans to install and operate advanced uranium enrichment machines. The EU said the move, potentially shortening the path to weapons-grade material, could deepen doubts about the peaceful nature of Iran's nuclear program.

Prime Minister Benjamin Netanyahu said on Sunday that Israel's mission to stop its arch-enemy from acquiring nuclear weapons was "becoming more complex, since the Iranians are equipping themselves with cutting-edge centrifuges that shorten the time of (uranium) enrichment".

"We must not accept this process," said Netanyahu, who is trying to form a new government after winning an election last month. Israel is generally believed to be the only country in the Middle East with nuclear weapons.

(Additional reporting by Myra MacDonald and Stephen Brown in Munich, Dmitry Solovyov in Almaty, Yeganeh Torbati in Dubai and Jim Wolf in Washington; Editing by Kevin Liffey and Will Dunham)

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China paper rejects hacking allegations

BEIJING: The official mouthpiece of China's ruling Communist Party roundly rejected claims of hacking attacks from China of American media outlets, hinting instead at ulterior motives by the US.

The People's Daily article echoed vehement government rejections last week after The New York Times and Wall Street Journal linked Beijing to cyberattacks.

In a fresh development, The Washington Post disclosed Saturday that it had suffered an attack and suspects Chinese hackers were behind it.

"Even those with little understanding of the Internet know that hacking attacks are transnational and concealable," said the signed Chinese-language commentary, which could not be found on the paper's English website.

"IP addresses simply do not constitute sufficient evidence to confirm the origins of hackers," it added.

The People's Daily accused the United States of fanning "fear of China" out of self-interest, saying that it has invoked national security as a justification for trade protectionism and economic sanctions.

"America keeps labelling China as hackers, simply playing up the rhetoric of the 'China threat' in cyberspace, providing new justification for America's strategy of containing China," it said.

The article repeated the Beijing government's position that China is also a victim of hacking, saying that there were more attacks from US-based IP addresses on Chinese websites in December than from any other country.

Despite this, it said, "China did not draw simple inferences or hasty conclusions about the attack source".

There were attacks from 3,000 foreign IP addresses in the month, it added.

The New York Times reported last week that hackers stole corporate passwords and accessed the personal computers of 53 employees after the newspaper published a report on the family fortune of China's premier Wen Jiabao.

Some security analysts said the media attacks were probably linked to the Beijing authorities, while others argued it was difficult to ascertain whether the attacks stemmed from China or if hackers acted on government orders.

Hackers from China have previously been linked to attacks on US defence giant Lockheed Martin, Google and Coca-Cola. Other reports say Chinese hackers have tried to infiltrate the Pentagon's computers and those of US lawmakers.

-AFP/fl

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Surface Pro lands at Microsoft Store

Microsoft Surface Pro is now on display at the Century City Microsoft Store in Los Angeles.

(Credit:
Brooke Crothers)

LOS ANGELES -- The Surface Pro has arrived early at Microsoft stores.

Locations, such as the store near Beverly Hills, Calif., now have the Pro -- slated to go on sale this Saturday -- on display and available for anyone to use.

So, I spent about an hour with Pro and came away impressed. More impressed than I was initially with Surface RT.

In a word, smooth. In two words, silky smooth. In the limited time I used it, I experienced no lag or stuttering on graphics-intensive sites and videos. And when I used
Microsoft Office in desktop mode (which was installed on the Pro I used) everything was snappy. Really snappy.

The Intel Ivy Bridge chip paired with a PC-class solid-state drive (and 4GB of memory) makes all the difference.

And the 10.6 -inch display at 1,920x1,080 resolution is a stunner. (That's over 2 million pixels at 200 pixels per inch, for those keeping track.)

To me, the resolution looked pretty much the same as on my Retina
iPad 4. Yes, I know, the iPad 4 has a higher pixel, density but text was highly resolved (see photo below) on the Pro much like the Retina iPad.

And if all of that sounds appealing to you, you can reserve one. A Microsoft store sales rep will take your name and e-mail address and then hand you a reservation card (see photo below).

Typing with the Pro on my lap. Note, you can also use it on your lap with the stand extended but it felt more comfortable for me flat.

(Credit:
Brooke Crothers)

Text is well resolved and looks pretty much like it does on my iPad 4 -- though display aficionados may dispute that. Note that the wave and grid patterns are a photo artifact, not what you actually see.

(Credit:
Brooke Crothers)

My Surface Pro reservation card. I was told to bring it on Saturday -- when Surface Pro goes on sale.

(Credit:
Brooke Crothers)

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Town mourns for slain bus driver amid Ala. standoff

Updated 9:45 PM ET

MIDLAND CITY, Ala. As the police standoff with an Alabama man accused of holding a 5-year-old boy hostage continued Saturday, a nearby community prepared to bury the beloved bus driver who was shot to death trying to protect children on his bus when the episode began days earlier.

Charles Albert Poland Jr., 66, who was known around town as Chuck, was described by folks in his hometown of Newton as a humble hero. Hundreds of people attended a viewing service for Poland on Saturday evening. His funeral was set for Sunday afternoon.

"I believe that if he had to do it all over again tomorrow, he would," said Poland's sister-in-law, Lavern Skipper, earlier Saturday. "He would do it for those children."

Play Video

Ala. hostage standoff: New info on kidnapper

Authorities said Jim Lee Dykes boarded a stopped school bus filled with 21 children Tuesday afternoon and demanded two boys between 6 and 8 years old. When Poland tried to block his way, the gunman shot him several times and took one 5-year-old boy — who police say remains in an underground bunker with Dykes.

Dale County Sheriff Wally Olson said in a briefing with reporters Saturday that Dykes has told them he has blankets and an electric heater in the bunker on his property. Authorities have set up a command post at a church and have been communicating with Dykes through a ventilation pipe to the underground bunker.

Olson also said Dykes has allowed police to deliver coloring books, medication and toys for the boy.

"I want to thank him for taking care of our boy," Olson said. "That's very important."

The shooting and abduction took place in Midland City, a small town near Dothan, Ala., in the state's southeastern corner.

Newton is about three miles away, a small hamlet with fewer than 2,000 residents. It sits amid cotton farms and rolling hills sprinkled with red earth; most of the residents commute to Dothan or to a nearby Army post.

William Lisenby, a school bus driver who also taught Sunday School with Poland, was flanked by other area bus drivers as he arrived at Saturday night's viewing service for his friend at a local funeral home.

Lisenby spoke in Biblical terms when referring to Poland.

Bus driver Charles Albert Poland Jr. is seen in this undated picture released by the Dale County Board of Education.

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AP Photo/Dale County Board of Education

"If you'll notice the similarities there, of what Chuck did was the same thing that Jesus Christ did. These children, even though they were not Chuck's, he laid down his life to defend those children. My hat's off to him for that."

"He was a bus driver just like we are," Lisenby said. "But for the grace of God that could have been us."

Others spoke of the loss of a good man, and their hope that the little boy being held captive is alive and well and will be released soon.

"The community is real concerned," said Fred McNab, mayor of Pinckard, Ala. "You can tell by the food that's been carried over there to the church. It's just devastating. We want it to come to a resolution. We want to save that little child."

Earlier Saturday, local residents remembered Poland as a friendly, giving person.

"He's probably the nicest guy you'll ever meet," said Lonnie Daniels, the 69-year-old owner of the NAPA Auto Parts store, one of three establishments in town that was open Saturday.

Daniels last saw his friend Tuesday morning, when Poland agreed to buy a car from him. The two men shook hands and closed the deal "like gentlemen," Daniels said. Poland was to return after working his bus route to pay for the car.

"He never came back," Daniels said quietly.

Play Video

Ala. hostage crisis: Behind-the-scenes of a negotiation

Daniels said Poland had been married to his wife for 43 years. Poland was from Idaho, but his wife was from Newton. The couple lived there for decades in a small mobile home, and Poland enjoyed gardening and clearing brush from his property.

"I knew that he was always there if I needed," said Daniels, adding that Poland was an excellent mechanic with an array of tools that he lent to people in town.

Neighbors and friends said Poland did various acts of kindness for people in town, from fixing someone's tractor to tilling the garden of a neighbor who had a heart attack.

"You don't owe me anything," Poland once told a recipient of his good deed. "You're my neighbor."

Skipper said Poland and his wife would often sit on their porch, drinking coffee, praying and reading the Bible.

"They loved to be together," Skipper said.

On Saturday morning, Poland's wife wasn't home. A rack of worn trucker's caps sat on hooks on the porch, and two freshly baked pies were laid atop a cooler.

The victim's son, Aaron Poland, told NBC News that he wasn't surprised by his father's act to protect the kids on the bus.

"He considered them his children," Poland said, choking back tears. "And I know that's the reason why my dad took those shots, for his children, just like he would do for me and my sister."

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Gun Violence 'Depletes Precious Natural Resource'

It took the mass shooting in Newtown, Connecticut, to prompt lawmakers to call for stricter gun legislation. But the reality is that in a city like Chicago, where 515 murders took place last year and more than 100 shooting incidents have occurred since January 1, gun violence is an ongoing issue and it has been for years. Only, these shootings have become so common that they don't make national headlines.

"We lost a classroom full of children in Connecticut which sparked national outrage that needs to be translated into action, but in Chicago, we sometimes lose a dozen or more young people every weekend," Rep. Luis Gutierrez (D-Illinois), who serves the Chicago area, said in a statement. "Too many bullets and too many guns are killing the next generation and we have got to make it stop."

Gutierrez, like many others, believe that any debate about gun violence shouldn't just take into account mass shootings that make headline news. It should also consider the chronic gun violence that takes place on a daily basis across the U.S.

In Chicago's case, many of the victims are young minorities growing up in poor, gang-ridden neighborhoods on the south and west side of the city.

Just earlier this week a 15-year-old girl who performed at President Barack Obama's recent inauguration was gunned down, The Washington Post reported.

The teen, Hadiya Pendleton, was hanging out in a park with about a dozen other young people when she was shot. Two other victims were reportedly wounded. By all accounts she was in the wrong place at the wrong time. Reports indicate that the gunman was not even aiming at her.

And Pendleton is just the latest example. Chicago police officer Ron Holt lost his son, Blair, to gun violence in the spring of 2007. The 16-year-old was shot and killed while riding a bus after school.

Holt now works with young people in the community, particularly minorities at an increased risk of engaging in dangerous behavior, to encourage them to focus on their education instead of turning to violence.

"I explain to them that if they continue to ascribe to this diabolical idea of resolving conflict with firearms they're depleting the most precious natural resource in the community, and that is them," Holt said.

What's clear is that the root of the gun problem is not just the guns. There are several factors that play a role, many of which are rarely discussed. For example, for minority youth living in urban communities characterized by poverty, violence, particularly gun violence, tends to be chronic. And the groups largely impacted tend to be African American and Hispanic.

A lot of that has to do with acculturation, according to Rahsmia Zatar, executive director of Strong Youth, a gang prevention and intervention organization. There is a sense that it's difficult to move beyond one's cultural sphere.

As a result, minorities often tend to gravitate toward other young minorities in similar situations, and turn to violence to gain a sense of control, however false it really is.

Charles Rex Arbogast/AP Photo

"It's easy to fall victim to feeling a sense of empowerment through violence," Zatar said. "They feel they have limited opportunities and they don't have a sense of 'I can achieve,' [or] that there is something here for me that's better."

According to the 2011 American Community Survey by the U.S. Census Bureau, more than 30 percent of Chicago's African-American population and nearly 27 percent of Hispanics live below the poverty line. Perhaps more importantly, blacks and whites remain largely segregated, with African-Americans making up the vast majority of neighborhoods in the south, and whites comprising most of the north. Latinos are somewhat more mixed, often living in "buffer" communities between blacks and whites, which could exacerbate the pressure to conform to two cultures, neither of which is entirely comfortable.

These various enclaves also suffer from a distinct gang problem. Chicago Police Commissioner Garry McCarthy told Reuters the city is plagued by the breakup of larger more established gangs into new factions that are fighting over everything from turf to money.

Then there's the city's illicit gun issue, which is bigger than New York's or Los Angeles' despite strict laws to limit weapons. Gun shops are actually outlawed in Chicago, as are assault weapons and high-capacity magazines. Handguns were even banned until 2010.

Still, in a place like Chicago it's handguns doing the most damage. According to statistics from the Bureau of Alcohol, Tobacco, Firearms and Explosives, most of the guns they recovered in Illinois were pistols, followed by revolvers and rifles. Machine guns come in a distant sixth.

Why so many guns? Gun laws in neighboring communities are not as strict, and firearms make their way into the city. According to a recent article by The New York Times, officials "seized 7,400 guns [in Chicago] in crimes or unpermitted uses last year (compared with 3,285 in New York City), and have confiscated 574 guns just since Jan. 1 — 124 of them last week alone."

And while Chicago residents are required to report the loss or theft of a handgun, that same law does not apply to all of Illinois, so a stolen firearm could easily make its way into Chicago without the owner ever reporting it missing.

The dynamics created in poor minority communities like those in Chicago combined with the sheer number of guns that make their way into such a city bear out in the overall statistics.

According to the Bureau of Justice's National Crime Victimization Survey, African Americans were disproportionately represented among homicide victims and offenders between 1980 and 2008. They were six times more likely than whites to be homicide victims and seven times more likely than whites to commit homicides.

Latinos don't fare much better. According to the National Council of La Raza, the nation's largest Hispanic advocacy organization, "Today in America, every three hours a young person is killed by firearm violence. Every 14 hours, that teen or child is Latino."

Young Latinos are especially likely to be impacted by gang violence in places like Chicago. Nationally, Hispanics are also more likely than non-Hispanics to be victims of violent crimes committed by gang members.

The impact of guns on the Latino community may explain why they're inclined to favor increased gun control. According to the Pew Research Center, while 57 percent of whites think it's more important to protect the rights of Americans to own guns than to protect gun ownership, only 29 percent of Latinos feel the same way.

Holt would certainly like to see something change. Several days after his son was killed, he received a voicemail. It was then-Senator Barack Obama. The young lawmaker had called Holt to express his condolences and to promise that if there was anything he could do in the future to help curb gun violence, he was prepared to do it. The two never spoke on the phone, but Holt remembers the message.

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Turkey says tests confirm leftist bombed U.S. embassy

ISTANBUL (Reuters) - A member of a Turkish leftist group that accuses Washington of using Turkey as its "slave" carried out a suicide bomb attack on the U.S. embassy, the Ankara governor's office cited DNA tests as showing on Saturday.

Ecevit Sanli, a member of the leftist Revolutionary People's Liberation Army-Front (DHKP-C), blew himself up in a perimeter gatehouse on Friday as he tried to enter the embassy, also killing a Turkish security guard.

The DHKP-C, virulently anti-American and listed as a terrorist organization by the United States and Turkey, claimed responsibility in a statement on the internet in which it said Turkish Prime Minister Tayyip Erdogan was a U.S. "puppet".

"Murderer America! You will not run away from people's rage," the statement on "The People's Cry" website said, next to a picture of Sanli wearing a black beret and military-style clothes and with an explosives belt around his waist.

It warned Erdogan that he too was a target.

Turkey is an important U.S. ally in the Middle East with common interests ranging from energy security to counter-terrorism. Leftist groups including the DHKP-C strongly oppose what they see as imperialist U.S. influence over their nation.

DNA tests confirmed that Sanli was the bomber, the Ankara governor's office said. It said he had fled Turkey a decade ago and was wanted by the authorities.

Born in 1973 in the Black Sea port city of Ordu, Sanli was jailed in 1997 for attacks on a police station and a military staff college in Istanbul, but his sentence was deferred after he fell sick during a hunger strike. He was never re-jailed.

Condemned to life in prison in 2002, he fled the country a year later, officials said. Interior Minister Muammer Guler said he had re-entered Turkey using false documents.

Erdogan, who said hours after the attack that the DHKP-C were responsible, met his interior and foreign ministers as well as the head of the army and state security service in Istanbul on Saturday to discuss the bombing.

Three people were detained in Istanbul and Ankara in connection with the attack, state broadcaster TRT said.

The White House condemned the bombing as an "act of terror", while the U.N. Security Council described it as a heinous act. U.S. officials said on Friday the DHKP-C were the main suspects but did not exclude other possibilities.

Islamist radicals, extreme left-wing groups, ultra-nationalists and Kurdish militants have all carried out attacks in Turkey in the past.

SYRIA

The DHKP-C statement called on Washington to remove Patriot missiles, due to go operational on Monday as part of a NATO defense system, from Turkish soil.

The missiles are being deployed alongside systems from Germany and the Netherlands to guard Turkey, a NATO member, against a spillover of the war in neighboring Syria.

"Our action is for the independence of our country, which has become a new slave of America," the statement said.

Turkey has been one of the leading advocates of foreign intervention to end the civil war in Syria and has become one of President Bashar al-Assad's harshest critics, a stance groups such as the DHKP-C view as submission to an imperialist agenda.

"Organizations of the sectarian sort like the DHKP-C have been gaining ground as a result of circumstances surrounding the Syrian civil war," security analyst Nihat Ali Ozcan wrote in a column in Turkey's Daily News.

The Ankara attack was the second on a U.S. mission in four months. On September 11, 2012, U.S. Ambassador Christopher Stevens and three American personnel were killed in an Islamist militant attack on the U.S. Consulate in Benghazi, Libya.

The DHKP-C was responsible for the assassination of two U.S. military contractors in the early 1990s in protest against the first Gulf War, and it fired rockets at the U.S. consulate in Istanbul in 1992, according to the U.S. State Department.

It has been blamed for previous suicide attacks, including one in 2001 that killed two police officers and a tourist in Istanbul's central Taksim Square. It has carried out a series of deadly attacks on police stations in the last six months.

Friday's attack may have come in retaliation for an operation against the DHKP-C last month in which Turkish police detained 85 people. A court subsequently remanded 38 of them in custody over links to the group.

(Writing by Nick Tattersall; Editing by Mark Heinrich)

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Psy to perform at Malaysia ruling coalition party

KUALA LUMPUR: South Korea's Psy will perform his famous "Gangnam Style" dance at an event organised by Malaysia's ruling coalition, an official said Sunday as the bloc tries to attract young voters ahead of polls.

Psy will perform the hit, which made history as the most-watched video on YouTube, at a Chinese New Year party on the northern island of Penang on February 11, said Loh Hock Hun from the Malaysian Chinese Association (MCA).

The organisers hope to attract some 60,000 people including Prime Minister Najib Razak, Loh said. He could not say how much the concert, to be staged by the Barisan Nasional coalition of which the MCA is part, would cost.

Some 25 percent of Malaysia's 29 million people are ethnic Chinese and celebrate the lunar new year.

Najib, who must face tough elections by June at the latest, hopes to improve on his coalition's worst ever poll performance in 2008. Those aged below 40 make up 40 percent of the electorate.

In 2008, the coalition lost its traditional two-thirds parliament majority and control over five states including Penang, to a resurgent opposition amid voter complaints that Barisan Nasional leaders seemed too aloof and corrupt.

South Korean pop music is popular in Malaysia with a recent show, the annual Golden Disk Awards featuring performances by Super Junior and other acts, drawing thousands of fans.

Psy, who is slated to perform in Brazil's carnival celebrations next week, is also expected to take the stage in Malaysia in March for a music show at the Sepang International Circuit racetrack.

Psy made Internet history last December when "Gangnam Style" -- featuring his signature horse-riding dance -- clocked more than one billion views on YouTube.

-AFP/ac

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How Boeing's 777-300ER could help save American Airlines

American Airlines hopes its rise back to profitability and relevance can get a big jump start with the launch of all-new livery, and Boeing's 777-300ER. It is the first U.S. carrier to fly the plane, the most successful twin-engine aircraft in the world.

(Credit:
Chris Sloan/Airchive.com)

It has become the world's most-successful twin-engine airplane, but until now, no U.S. carrier has flown Boeing's 777-300ER. But with the launch on Thursday of its Dallas to Sao Paolo, Brazil flight, American Airlines has broken new ground, and is now depending on its fledgling 777-300ER fleet to re-earn its once legendary wings. And make it a lot of money.

Among the many passengers aboard the inaugural flight to Sao Paolo was Chris Sloan, an aviation writer who often flies on the most notable planes in the skies. Sloan, who previously shared his impressions of the inaugural Boeing 787 Dreamliner commercial flight with CNET, has once again let us in on what it's like to be among the first people aboard a notable, world-class airplane.

As Sloan notes, the past few years have not been kind to American Airlines. The carrier has gone through bankruptcy, seats becoming unbolted, a disastrous crash, and more.

But the airline is doing its best to come back from the dead, and the launch of service aboard the 777-300ER, as well as the roll-out of all-new livery, show that American can't be counted out.

As Sloan wrote:

In an era of smaller airliners, American inaugurated the 777-300, the largest new airliner by a U.S. carrier since the last Boeing 747-400s entered service with U.S. airliners in the late 1990s. Built to handle up to 386 passengers and fly up to 7,825 nautical miles, American's 777-300ER is the first plane flown by a U.S. carrier to feature a stand-up bar since the 1970s, Sloan wrote. American flies the aircraft in a 304-passenger, four-class and six-cabin configuration.

This inaugural, flight 963, from Dallas/Ft. Worth to São Paulo, Brazil in the author's view is one of the most significant in the airline industry in years because it is about something much bigger than just the launch of a new airliner, it's about the re-birth of a proud American institution that happens to bear the name of our country - American Airlines.

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