World Highlights

¤ The International Atomic Energy Agency chief said a deal to defuse a stand-off over Iran's nuclear aims was still feasible and diplomats outlined a compromise that would let Tehran pursue limited atomic research.

¤ Iraqi President Jalal Talabani said he would convene Parliament in six days, but political wrangling means a government of national unity is unlikely to be formed any time soon.

¤ The Russian government will stay in contact with the Palestinian militant group Hamas in the wake of a Moscow meeting over the weekend, Foreign Minister Sergei Lavrov said.

¤ The US Supreme Court ruled that universities that get federal funds must allow military recruiters on campus, even if they oppose the Pentagon's policy barring openly gays and lesbians from serving.

¤ Seeking to show he is serious about curbing spending, President George W. Bush asked Congress to yield some of its power of the purse by allowing him to propose cancelling specific budget items.

¤ AT&T Inc. expects to cut 10,000 jobs between 2007 and 2009 after its $67 billion acquisition of BellSouth Corp. has closed, AT&T said.

¤ The German government lost a political battle to stave off an investigation into whether its spies in Iraq secretly helped the US launch the 2003 invasion that Berlin had strongly opposed.

¤ An HIV-positive AIDS activist testified in court that South Africa's former Deputy President Jacob Zuma raped her without a condom, in a case that could end the charismatic leader's political career.

¤ The public outcry over the proposed takeover of cargo operations at six US ports by a company based in Dubai reveals a US electorate beset by anxiety and fatigue, policy analysts said.