Fitch cuts Sony, Panasonic debt ratings to “junk” status

TOKYO (Reuters) – Ratings agency Fitch downgraded the debt ratings of Japan’s Sony Corp and Panasonic Corp to “junk” status citing weakness in their consumer electronics and TV operations, further diminishing the luster of the once-great Japanese brands.

The cut to below investment grade, the first by a ratings firm, comes as the floundering Japanese tech giants face weak demand and fierce competition from Apple Inc and Samsung Electronics.

A strong yen and bumps in China, where growth has slowed and Japanese goods have been targeted in sometimes violent protests recently, have also weighed on their earnings.

The two companies, along with Sharp Corp, racked up combined losses of $ 20 billion last year, leading them to axe jobs, sell assets and close facilities.

“Both Sony and Panasonic are struggling to generate operating profits, but each is restructuring and I don’t envision the current situation continuing,” said Masahi Oda, Chief Investment Officer at Sumitomo Mitsui Trust Bank.

“A collapse of their core business would be a problem, but we are not at the point yet, and to me Fitch looks too negative,” Oda added.

Fitch downgraded Sony by three notches to BB-minus from BBB- minus, saying meaningful recovery will be slow. The move came after Sony, the maker of PlayStation game consoles and Vaio laptops, last week announced plans to raise 150 billion yen ($ 1.82 billion) through the sale of convertible bonds.

“Fitch believes that continuing weakness in the home entertainment and sound and mobile products and communications segments will offset the relatively stable music and pictures segments and improvement in the devices segment which makes semiconductors and components,” it said in statement.

In a separate statement, Fitch cut Panasonic to BB from BBB-minus, a two-notch downgrade, citing weakened competitiveness in its TVs and display panels as well as weak cash generation from its operations. It has a negative outlook on both the companies.

The downgrade sent Sony’s five-year credit default swaps (CDS), insurance-like contracts against debt default or restructuring, 5 basis points wider to 382.5/402.5 basis points.

Panasonic’s CDS for the same maturity were quoted at 295/315 basis points, 15 basis points wider than in Thursday morning Asian trade.

Standard & Poor’s rates the two consumer electronics makers at BBB, the second lowest of the investment grade, while Moody’s Investors Service has Baa3 on them, the lowest of the high-grade category.

With two of the three major ratings agencies still having the two companies as investment grade, institutional investors won’t face too great a pressure to cut their debt holdings in them, analysts said.

SONY SHARES TUMBLE

Sony shares shed 4.4 percent in Frankfurt on Thursday. The shares ended 1.8 percent higher at 834 yen in Tokyo before the Fitch announcement, trading not too far from their 32-year closing low of 793 yen hit on November 15. Sony stock is down 40 percent so far this year.

Panasonic shares were down 0.6 percent in Frankfurt in low volume. The stock inched up 0.7 percent to close at 407 yen in Tokyo trading, near its 34-year closing low of 385 yen reached on November 13.

Last month, Panasonic cut its forecast and warned it will lose close to $ 10 billion in the year to March, as it writes off billions of yen in tax-deferred assets and goodwill related to its mobile phone, solar panel and small lithium battery businesses.

Ahead of its earnings revision, Panasonic won $ 7.6 billion in loan commitments in October from banks including Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group, a funding backstop it says will help it avoid having to seek capital from credit markets.

Sony made a small operating profit in the July-September quarter, helped by the sale of a non-core chemicals business, and kept its forecast for a full-year profit of $ 1.63 billion.

(Additional reporting by Dominic Lau in Tokyo and Umesh Desai in Hong Kong; Editing by Muralikumar Anantharaman)

Tech News Headlines – Yahoo! News

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Bon Jovi Calls His Daughter's Heroin Overdose a 'Tragedy'

By Andrea Billups

11/21/2012 at 10:30 AM EST

Jon Bon Jovi and daughter Stephanie

Dave M. Benett/Getty

Jon Bon Jovi says his family has been touched by public support and will move forward after his daughter's arrest and hospitalization for a heroin overdose.

Speaking with Fox 11 in L.A., Bon Jovi called the Nov. 14 episode in a dorm room at New York's Hamilton College involving daughter Stephanie Rose Bongiovi, 19, a tragedy. Charges of drug possession against her eventually were dropped and she recovered at a local hospital.

"This tragedy was something that I had to face too, so we'll get through it," said Bon Jovi, 50, also father to three younger children with his wife of 23 years, Dorothea Hurley. "And people's incredible warm wishes for my family and I have been really reassuring. So, we're good."

Bon Jovi, who supported the Hurricane Sandy New Jersey Relief Fund along with fellow native Bruce Springsteen, also spoke about his rock world and the issues that come with it.

"It's human. What I do for a living, it seems glitzy and glamorous but if you don't take it too seriously it's a great way to make a living," he said. "And then life goes on. Things happen."

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OB/GYNs back over-the-counter birth control pills

WASHINGTON (AP) — No prescription or doctor's exam needed: The nation's largest group of obstetricians and gynecologists says birth control pills should be sold over the counter, like condoms.

Tuesday's surprise opinion from these gatekeepers of contraception could boost longtime efforts by women's advocates to make the pill more accessible.

But no one expects the pill to be sold without a prescription any time soon: A company would have to seek government permission first, and it's not clear if any are considering it. Plus there are big questions about what such a move would mean for many women's wallets if it were no longer covered by insurance.

Still, momentum may be building.

Already, anyone 17 or older doesn't need to see a doctor before buying the morning-after pill — a higher-dose version of regular birth control that can prevent pregnancy if taken shortly after unprotected sex. Earlier this year, the Food and Drug Administration held a meeting to gather ideas about how to sell regular oral contraceptives without a prescription, too.

Now the influential American College of Obstetricians and Gynecologists is declaring it's safe to sell the pill that way.

Wait, why would doctors who make money from women's yearly visits for a birth-control prescription advocate giving that up?

Half of the nation's pregnancies every year are unintended, a rate that hasn't changed in 20 years — and easier access to birth control pills could help, said Dr. Kavita Nanda, an OB/GYN who co-authored the opinion for the doctors group.

"It's unfortunate that in this country where we have all these contraceptive methods available, unintended pregnancy is still a major public health problem," said Nanda, a scientist with the North Carolina nonprofit FHI 360, formerly known as Family Health International.

Many women have trouble affording a doctor's visit, or getting an appointment in time when their pills are running low — which can lead to skipped doses, Nanda added.

If the pill didn't require a prescription, women could "pick it up in the middle of the night if they run out," she said. "It removes those types of barriers."

Tuesday, the FDA said it was willing to meet with any company interested in making the pill nonprescription, to discuss what if any studies would be needed.

Then there's the price question. The Obama administration's new health care law requires FDA-approved contraceptives to be available without copays for women enrolled in most workplace health plans.

If the pill were sold without a prescription, it wouldn't be covered under that provision, just as condoms aren't, said Health and Human Services spokesman Tait Sye.

ACOG's opinion, published in the journal Obstetrics & Gynecology, says any move toward making the pill nonprescription should address that cost issue. Not all women are eligible for the free birth control provision, it noted, citing a recent survey that found young women and the uninsured pay an average of $16 per month's supply.

The doctors group made clear that:

—Birth control pills are very safe. Blood clots, the main serious side effect, happen very rarely, and are a bigger threat during pregnancy and right after giving birth.

—Women can easily tell if they have risk factors, such as smoking or having a previous clot, and should avoid the pill.

—Other over-the-counter drugs are sold despite rare but serious side effects, such as stomach bleeding from aspirin and liver damage from acetaminophen.

—And there's no need for a Pap smear or pelvic exam before using birth control pills. But women should be told to continue getting check-ups as needed, or if they'd like to discuss other forms of birth control such as implantable contraceptives that do require a physician's involvement.

The group didn't address teen use of contraception. Despite protests from reproductive health specialists, current U.S. policy requires girls younger than 17 to produce a prescription for the morning-after pill, meaning pharmacists must check customers' ages. Presumably regular birth control pills would be treated the same way.

Prescription-only oral contraceptives have long been the rule in the U.S., Canada, Western Europe, Australia and a few other places, but many countries don't require a prescription.

Switching isn't a new idea. In Washington state a few years ago, a pilot project concluded that pharmacists successfully supplied women with a variety of hormonal contraceptives, including birth control pills, without a doctor's involvement. The question was how to pay for it.

Some pharmacies in parts of London have a similar project under way, and a recent report from that country's health officials concluded the program is working well enough that it should be expanded.

And in El Paso, Texas, researchers studied 500 women who regularly crossed the border into Mexico to buy birth control pills, where some U.S. brands sell over the counter for a few dollars a pack. Over nine months, the women who bought in Mexico stuck with their contraception better than another 500 women who received the pill from public clinics in El Paso, possibly because the clinic users had to wait for appointments, said Dr. Dan Grossman of the University of California, San Francisco, and the nonprofit research group Ibis Reproductive Health.

"Being able to easily get the pill when you need it makes a difference," he said.

___

Online:

OB/GYN group: http://www.acog.org

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Wall Street flat after data, Greek deal delay

NEW YORK (Reuters) - Stocks were flat on Wednesday as consumer sentiment stalled because of growing uncertainty over federal tax and spending plans next year and the absence of a deal by international lenders on emergency aid for Greece

Other U.S. economic data came in as expected, such as initial weekly claims for jobless benefits, depriving the market of any clear direction.

Euro zone finance ministers, the International Monetary Fund and the European Central Bank failed for a second week to agree on how to make Greece's debt sustainable, which is necessary before the next cash infusion can be made to the fiscally beleaguered nation.

European shares edged up as investors looked for signs of progress on a deal before the next meeting of lenders on Monday. The FTSEurofirst 300 <.fteu3> gained 0.2 percent. <.eu/>

"The European situation has been around for so long, there is nothing new there and everybody realizes it is going to be a long-term workout. From some progress over the last couple of months, all of a sudden we've had no progress," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.

Labor Department data showed initial jobless claims dropped 41,000 to a seasonally adjusted 410,000 in the latest week, in line with expectations though still elevated in the wake of superstorm Sandy.

The S&P 500 had dropped 5.3 percent since Election Day on November 6 because of worries over U.S. fiscal negotiations and continued debt problems in Europe. But over the past three session, the index <.spx> has risen 2.6 percent, boosted by positive rhetoric from Washington on fiscal discussions and a market many viewed as oversold.

Gains made early in the day on Tuesday were mostly erased after Federal Reserve Chairman Ben Bernanke cautioned that the central bank lacked the tools to cushion the U.S. economy from the impact of the "fiscal cliff."

"We are in a bit of a holding period here. Everybody is focused on the fiscal cliff and any indications of a settlement between Congress and the White house and any indications of what that settlement might be," said Ghriskey.

The fiscal cliff is a series of tax hikes and spending cuts which, failing agreement in Congress, will go into effect in the new year and threaten the nation's fragile economic recovery.

The Dow Jones industrial average <.dji> gained 18.46 points, or 0.14 percent, to 12,806.97. The Standard & Poor's 500 Index <.spx> shed 0.33 points, or 0.02 percent, to 1,387.48. The Nasdaq Composite Index <.ixic> lost 0.09 points, or 0.00 percent, to 2,916.59.

Financial information firm Markit said its U.S. "flash," or preliminary, manufacturing Purchasing Managers Index rose to 52.4, its quickest pace in five months, from a three-year low of 51.0 in October.

The Thomson Reuters/University of Michigan's final reading of the overall index on consumer sentiment came in at 82.7, a touch up from 82.6 the month before but down from a preliminary reading of 84.9 released earlier in the month.

Trading is expected to be light ahead of a U.S. holiday Thursday for Thanksgiving.

Deere & Co lost 2.7 percent to $83.66 after the world's largest farm equipment maker, reported a weaker-than-expected quarterly profit.

Salesforce.com Inc jumped 7.3 percent to $156.52 after the business software provider beat Wall Street expectations for the third quarter and maintained its outlook for the rest of the year.

(Editing by Kenneth Barry)

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Tel Aviv bus blast shakes Gaza truce efforts

GAZA/JERUSALEM (Reuters) - A bomb exploded on a bus in Tel Aviv on Wednesday, potentially complicating efforts by U.S. Secretary of State Hillary Clinton to pursue an elusive truce between Israel and Hamas, as Israeli air strikes shook the Gaza Strip.

After talks in Ramallah with Palestinian President Mahmoud Abbas, Clinton held a second meeting with Israeli Prime Minister Benjamin Netanyahu before travelling to Egypt for discussions with President Mohamed Mursi, whose country is the main broker in efforts to end eight days of fighting.

In Tel Aviv, targeted by rockets from Gaza that either did not hit the city or were shot down by Israel's Iron Dome interceptor system, 15 people were wounded when a commuter bus was blown up near the Defence Ministry and military headquarters.

Israel and the United States branded it a terrorist attack, and a White House statement reaffirmed Washington's "unshakeable commitment to Israel's security".

The explosion, which police said was caused by a bomb placed on the vehicle, touched off celebratory gunfire from militants in Gaza and threatened to complicate truce efforts. It was the first serious bombing in Israel's commercial capital since 2006

In Gaza, Israel struck more than 100 targets, including a cluster of Hamas government buildings, in attacks that medical officials said killed 10 people, among them a 2-year-old boy.

Israel's best-selling Yedioth Ahronoth newspaper said an emerging outline of a ceasefire agreement called for Egypt to announce a 72-hour ceasefire followed by further talks on long-term understandings.

Under the proposed document, which the newspaper said neither party would be required to sign, Israel would hold its fire, end attacks against top militants and promise to examine ways to ease its blockade of Gaza, controlled by Hamas Islamists who do not recognize the Jewish state's right to exist.

Hamas, the report said, would pledge not to strike any Israeli target and ensure other Palestinian factions in the Gaza Strip also stop their attacks.

GAZA BLOCKADE

An Israeli political source said differences holding up a deal centered on a Hamas demand to lift the Gaza blockade completely and the kind of activity that would be allowed along the frontier, where Israeli troops often fire into the enclave to keep Palestinians away from an area near a border fence.

Hamas official Ezzat al-Rishq said the main stumbling block was "the temporary timeframe for a ceasefire that the Israelis want us to agree to".

While diplomatic efforts intensified, Palestinians militants fired more than 30 rockets at Israel, causing no casualties, and the Iron Dome interceptor system shot down 14 of them, police said.

Israel has carried out more than 1,500 strikes since the offensive began with the killing of a top Hamas commander and with declared aim of deterring Hamas from launching rocket attacks that have long disrupted life in its southern towns.

Medical officials in Gaza said 146 Palestinians, more than half of them civilians, including 36 children, have been killed in Israel's offensive. Nearly 1,400 rockets have been fired into Israel, killing four civilians and a soldier, the military said.

"GOOD INTENTIONS"

The London-based Al Hayat newspaper, citing sources in Hamas and Islamic Jihad, said Israel wanted a 90-day period to determine "good intentions" before discussing Palestinian demands, a position the report said the groups have rejected.

Rishq said a short-term truce, whose proposed duration he did not disclose, "would only buy (Israel) time" until a general election in January and "we would have accomplished nothing in the way of a long-term truce".

Hamas sources said the group was also demanding control over Gaza's Rafah borders with Egypt, so that Palestinians could cross easily, and Israeli guarantees to stop assassinating Hamas leaders.

Israel, one of the Hamas sources said, wanted a commitment from the group to stop smuggling through tunnels that run into Gaza under the Egyptian border. The tunnel network is a conduit for weapons and commercial goods.

News of the Tel Aviv bus bombing caused oil prices to rise by more than $1 per barrel on concerns the Gaza crisis could lead to wider regional conflict that would disrupt oil flows.

But sources close to Israeli Defence Minister Ehud Barak, speaking after the bus blast, said he was quietly confident a ceasefire deal could still be reached.

Clinton, who flew to the region from an Asian summit, said after Tuesday's meeting with Netanyahu that it was "essential to de-escalate the situation".

"The rocket attacks from terrorist organizations inside Gaza on Israeli cities and towns must end and a broader calm restored," she said.

Clinton earlier assured Netanyahu of "rock-solid" U.S. support for Israel's security, and praised Mursi's "personal leadership and Egypt's efforts thus far" to end the Gaza conflict and promote regional stability.

"As a regional leader and neighbor, Egypt has the opportunity and responsibility to continue playing a crucial and constructive role in this process. I will carry this message to Cairo tomorrow (Wednesday)," she said, pledging to work for a truce "in the days ahead".

"LONG-TERM" SOLUTION

Netanyahu told Clinton he wanted a "long-term" solution. Failing that, Netanyahu made clear, that he stood ready to step up the military campaign to silence Hamas' rockets.

"A band-aid solution will only cause another round of violence," said Ofir Gendelman, a Netanyahu spokesman.

Along the Gaza border, Israeli tanks, artillery and infantry remained poised for a possible ground offensive in the densely populated enclave of 1.7 million Palestinians.

But an invasion, likely to entail heavy casualties, would be a major political risk for Netanyahu, who is currently favored to win the upcoming Israeli election. More than 1,400 Palestinians were killed in Israel's three-week war in the Gaza Strip in 2008-9, prompting international criticism of Israel.

In the West Bank city of Ramallah, Clinton held talks with Palestinian President Abbas, reiterating U.S. opposition to his bid to upgrade the Palestinians' status at the United Nations. State Department spokeswoman Victoria Nuland said Washington believed "the best way to achieve statehood is through direct bilateral negotiations". Those talks collapsed in 2010 in a dispute over Israeli settlement building in the West Bank.

"Secretary Clinton informed the president that the U.S. administration is exerting every possible effort to reach an immediate ceasefire and the president expressed his full support for this endeavor," said Palestinian chief negotiator Saeb Erekat.

"Once the Israelis accept to stop their bombardments, their assassinations, there will be a comprehensive ceasefire sustained from all parties," Erekat said.

A Palestinian official with knowledge of Cairo's mediation told Reuters that Egyptian intelligence officials would hold further discussions on Wednesday with leaders of Hamas and the Islamic Jihad group.

(Additional reporting by Ari Rabinovitch in Jerusalem and Cairo bureau; Writing by Jeffrey Heller; Editing by Giles Elgood)

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NJ jury convicts NY man in iPad data breach case

NEWARK, N.J. (AP) — A federal jury on Tuesday convicted a man of illegally gaining access to AT&T‘s servers and stealing more than 120,000 email addresses of iPad users including New York Mayor Michael Bloomberg and film mogul Harvey Weinstein.

Andrew Auernheimer, of New York, was convicted of identity theft and conspiracy to gain unauthorized access to computers. Each count carries a maximum prison sentence of five years.

Prosecutors said the former Fayetteville, Ark., resident was part of an online group that tricked AT&T’s website into divulging email addresses including those of Bloomberg, Weinstein, then-White House chief of staff Rahm Emanuel, who’s now Chicago’s mayor, and other celebrities.

The group then shared the addresses with the website Gawker, which published them in redacted form accompanying a news article about the breach, prosecutors said.

A second man arrested with Auernheimer early last year, Daniel Spitler, of San Francisco, pleaded guilty that June.

At the time of the arrests, U.S. Attorney Paul Fishman said there was no evidence the men used the swiped information for criminal purposes. But authorities cautioned that it could have wound up in the hands of spammers and scam artists.

According to court papers, the men used a computer script they called the iPad3G Account Slurper to fool AT&T’s servers into thinking they were communicating with an iPad. The theft of the email addresses occurred in June 2010.

Prosecutors said at the time of Auernheimer’s arrest that he had bragged about the operation in a blog posting and in an interview with CNET published online after the Gawker article. Court papers also quoted him declaring in a New York Times article: “I hack, I ruin, I make piles of money. I make people afraid for their lives.”

Auernheimer, after he was charged and released on bail, had declined to comment.

iPad maker Apple Inc., based in Cupertino, Calif., referred questions to AT&T, which acknowledged a security weak spot on a website that exposed the email addresses. AT&T said the vulnerability affected only iPad users who signed up for its 3G wireless Internet service and said it had fixed the problem.

Gadgets News Headlines – Yahoo! News

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The Killing's Jamie Anne Allman Expecting Twins

Mom & Babies
Celebrity Baby Blog

11/20/2012 at 11:00 AM ET

Tsuni/Gamma

Jamie Anne Allman is good at keeping secrets — but she’s ready to let this one out of the bag.

The Killing star and husband Marshall Allman are expecting their first children — a set of twins! — this spring, the couple tell PEOPLE exclusively.

“We were ecstatic to find out we were pregnant and overjoyed to learn they were fraternal twins,” the couple tell PEOPLE.

“Twins run in both of our families so we were prepared for the possibility, but we know we’re gonna need all the prayers and help we can get.”

Jamie Anne and Marshall, best known for his roles as Tommy on True Blood and L.J. on Prison Break, broke the news to friends and family the best way they knew how.

“Both of us being actors, we made a film,” they tell PEOPLE. “It made it super fun and easy to share the news in a surprising way across the country.”

The Allmans were married in Austin, Texas in June 2006.

– Sarah Michaud

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France to answer ratings downgrade with reforms

PARIS (Reuters) - France said on Tuesday it would respond to a Moody's credit downgrade by pushing on with reforms but complained the ratings agency had overlooked steps already taken to revamp the euro zone's second-largest economy.

France lost its prized triple-A badge from the Standard & Poor's in January and so Monday's move by Moody's was not surprising but it underlined doubts about Socialist President Francois Hollande's ability to fix France's public finances.

The downgrade also highlighted the divergence with the top-rated regional powerhouse Germany whose finance minister called it a "small warning" to its most important euro zone partner.

Moody's said on Tuesday that it would assess the triple-A ratings of the euro zone's EFSF and ESM bailout funds in light of the French downgrade.

However, its one-notch rating cut to Aa1 with a negative outlook did not affect the perceived status of French bonds which, along with German debt, are seen as a safe haven from the crisis in southern Europe.

"Moody's raised concerns about France's capacity to reform and so it is up to us to show that this time we are going to carry out reforms," Finance Minister Pierre Moscovici, leading a government offensive to play down the move, told journalists.

"The rating change does not call into question either the economic fundamentals of our country, the efforts undertaken by the government or our creditworthiness."

The government is planning the toughest belt-tightening effort in 30 years in 2013 but must also try and halt a growth slow-down that has seen unemployment surge to 13-year highs.

Moody's said it kept a negative outlook on France due to structural challenges and a "sustained loss of competitiveness" in the country, where business leaders blame high labor charges for flagging exports. It also cited "sizable exposures" of its banks to weak, southern euro zone countries.

"The first driver ... is the risk to economic growth, and therefore to the government's finances, posed by the country's persistent structural economic challenges," Moody's said.

The downgrade sent the euro 0.30 percent lower to 1.2770 against the dollar late on Monday but the currency recovered some ground to trade at 1.2810 at 1230 GMT Tuesday.

The benchmark French 10-year government bond yield - which has been trading at historic lows and offering Hollande crucial access to cheap borrowing - was little changed at 2.12 percent versus 2.08 percent before the downgrade.

Deutsche Bank economist Gilles Moec said the fact the downgrade was largely priced-in did not take the pressure off Hollande to show he will pursue more reforms, with an overhaul of rigid hiring and firing rules seen as the most pressing.

"Public opinion in France - as well as the market ultimately - will expect a reaction from the executive," Moec said. "The market ... is giving France the benefit of the doubt, but a further clarification of the policy stance is becoming urgent."

NEGATIVE OUTLOOK

Moody's said it could downgrade France again if efforts to free up the rigid labor market and overhaul an economy where public spending accounts for 57 percent of output ran into trouble.

"We would downgrade the rating further in the event of an additional material deterioration in France's economic prospects or in a scenario in which there were difficulties in implementing the announced reforms," Moody's lead France analyst Dietmar Hornung told Reuters.

He said more big shocks from the euro zone debt crisis would also exert downward pressure on the rating.

The downgrade follows concerns raised by the IMF that France could be left behind as Italy and Spain reform at a faster pace.

But analysts see French bonds remaining resilient for now.

"The French debt market is highly liquid and remains a favored venue for international investors, particularly in a world where 'double-A' is becoming the norm among Western states," Barclays France director Franklin Pichard said.

Yet with Germany one of the few major economies to retain a triple-A rating, the move is likely to reinforce Berlin's role as the capital calling the shots in the 17-country euro zone.

Michael Grosse-Broemer, parliamentary whip of German Chancellor Angela Merkel's ruling CDU party, told Reuters the downgrade gave fresh impulse to France to fulfill its reforms.

Finance Minister Wolfgang Schaeuble said the move should not be overdramatized but it was a warning for everyone in Europe to live up their responsibilities.

With France's 2-trillion-euro economy teetering on the brink of recession, Hollande surprised many this month by granting 20 billion euros in annual tax relief to companies, equivalent to a 6 percent cut in labour costs, to spur competitiveness.

The government also plans 30 billion euros in budget savings next year to trim its deficit and has promised reforms next year to add flexibility to rigid labour laws.

"Certain criticisms are too strong or are too late. I would have preferred that the bold and unprecedented decisions on the crisis were better received," Moscovici said of Moody's.

He said it was unfair to flag concerns over French banks as they have cut exposure to troubled euro states such as Greece.

"I don't expect (the downgrade) to have an immediate knock-on impact today on access to and cost of funding," said Espirito Santo analyst Andrew Lim of any impact on the banking sector.

But he said France's exposure to Spain, Italy and peripheral Europe should be kept in mind.

As far as government borrowing goes, France has completed its issuance for 2012. Demand is strong from foreign buyers, who hold 55 percent of its long-term bonds, but the downgrade could be a trigger to bet on yields rising next year.

"Our view is the market is teeing itself up to short France in 2013. It's the trade everyone wants to get into," said Lyn Graham-Taylor at Rabobank in London.

(Additional reporting by Blaise Robinson, Alexandre Boksenbaum-Granier and Andreas Rinke; Writing by Mark John; editing by Anna Willard)

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Truce mediator Egypt sees imminent end to Gaza conflict

GAZA/JERUSALEM (Reuters) - Egypt's president predicted on Tuesday that Israel's Gaza offensive would end later in the day, Egyptian state media said, as U.S. Secretary of State Hillary Clinton headed to the region to try to calm the conflict.

"President Mohamed Mursi announced that the farce of Israeli aggression against the Gaza Strip will end on Tuesday," the MENA news agency and state TV reported, quoting public remarks he made after the funeral of his sister.

Egypt, led by an Islamist government allied with Gaza's ruling Hamas movement and at peace with Israel, has been trying to broker a ceasefire in hostilities now in their seventh day.

MENA quoted Mursi as saying "the efforts to conclude a truce between the Palestinian and Israeli sides will produce positive results in the next few hours".

While efforts mounted to stop the fighting and avert a possible Israeli ground invasion of the densely populated Gaza Strip, Israel pressed on with air strikes and Palestinian rockets flashed across the border.

Jerusalem was targeted for the second time since Israel launched the air offensive with the declared aim of deterring Palestinian militants from carrying out cross-border attacks that have plagued its south for years.

The rocket, which fell harmlessly in the occupied West Bank, triggered warning sirens in the holy city about the time U.N. Secretary-General Ban Ki-moon arrived in Jerusalem from talks in Cairo, where he had held discussions on a truce.

Israel's military on Tuesday targeted about 100 sites in Gaza, including ammunition stores and the Gaza headquarters of the National Islamic Bank. Gaza's Hamas-run Health Ministry said six Palestinians were killed.

Israeli police said more than 150 rockets were fired from Gaza by late afternoon, many of them intercepted by Israel's Iron Dome system. Ten people were wounded in Israel, the military and an ambulance service said.

Some 115 Palestinians have died in a week of fighting, the majority of them civilians, including 27 children, hospital officials said. Three Israelis died last week when a rocket from Gaza struck their house.

Israel's leaders weighed the benefits and risks of sending tanks and infantry into the Gaza Strip two months before an Israeli election, and indicated they would prefer a diplomatic path backed by world powers, including U.S. President Barack Obama, the European Union and Russia.

Clinton was going to the Middle East for talks in Jerusalem, Ramallah and Cairo. An Israeli source said she was expected to meet Netanyahu on Wednesday.

"Her visits will build on American engagement with regional leaders over the past days - including intensive engagement by President Obama with Prime Minister Netanyahu and President Mursi - to support de-escalation of violence and a durable outcome that ends the rocket attacks on Israeli cities and towns and restores a broader calm," a State Department official said.

In Cairo, Ban called for an immediate ceasefire and said an Israeli ground operation in Gaza would be a "dangerous escalation" that must be avoided.

He met in Cairo with Arab League chief Nabil Elaraby and Egyptian Prime Minister Hisham Kandil before travelling to Israel for discussions with Netanyahu. Ban planned to return to Egypt on Wednesday to see Mursi.

NEXT MOVES

Netanyahu and his top ministers debated their next moves in a meeting that lasted into the early hours of Tuesday.

"Before deciding on a ground invasion, the prime minister intends to exhaust the diplomatic move in order to see if a long-term ceasefire can be achieved," a senior Israeli official, speaking on condition of anonymity, said after the meeting.

Hamas leader Khaled Meshaal said on Monday that Israel must halt what he described as its attack on the Gaza Strip and lift the blockade of the Palestinian territory in exchange for a truce.

In the Gaza Strip on Tuesday, Hamas executed six alleged collaborators, whom a security source quoted by the Hamas Aqsa radio "were caught red-handed" with "filming equipment to take footage of positions". The radio said they were shot.

A delegation of nine Arab ministers, led by the Egyptian foreign minister, visited Gaza in a further signal of heightened Arab solidarity with the Palestinians.

Fortified by the ascendancy of fellow Islamists in Egypt and elsewhere, and courted by Sunni Arab leaders in the Gulf keen to draw the Palestinian group away from old ties to Shi'ite Iran, Hamas has tested its room for maneuver, as well as longer-range rockets that have also reached the Tel Aviv metropolis.

Egypt, Gaza's other neighbor and the biggest Arab nation, has been a key player in efforts to end the most serious fighting between Israel and Palestinian militants since a three-week Israeli invasion of the enclave in the winter of 2008-9.

The ousting of U.S. ally Hosni Mubarak and the election of Mursi is part of a dramatic reshaping of the Middle East wrought by Arab uprisings and now affecting the Israeli-Palestinian conflict.

Mursi, whose Muslim Brotherhood was mentor to the founders of Hamas, on Monday took a call from Obama, who told him Hamas must stop rocket fire into Israel - effectively endorsing Israel's stated aim in launching the offensive last week. Obama also said he regretted civilian deaths - which have been predominantly among the Palestinians.

Mursi has warned Netanyahu of serious consequences from an invasion of the kind that killed more than 1,400 people in Gaza four years ago. But he has been careful not to alienate Israel, with whom Egypt's former military rulers signed a peace treaty in 1979, or Washington, a major aid donor to Egypt.

Addressing troops training in southern Israel, Defence Minister Ehud Barak said: "Hamas will not disappear but the memory of this experience will remain with it for a very long time and this is what will restore deterrence."

But he said: "Quiet has not yet been achieved and so we are continuing (the offensive) ... there are also diplomatic contacts -- ignore that, you are here so that if the order for action must be given - you will act."

Hamas said four-year-old twin boys had died with their father when their house in the town of Beit Lahiya was struck from the air during the night. The children's mother was critically wounded, and neighbors said the occupants were not involved with militant groups.

Israel had no immediate comment on that attack. It says it takes extreme care to avoid civilians and accuses Hamas and other militant groups of deliberately placing Gaza's 1.7 million people in harm's way by placing rocket launchers among them.

Nonetheless, fighting Israel, whose right to exist Hamas refuses to recognize, is popular with many Palestinians and has kept the movement competitive with the secular Fatah movement of Palestinian President Mahmoud Abbas, who remains in the West Bank after losing Gaza to Hamas in a civil war five years ago.

"Hamas and the others, they're our sons and our brothers, we're fingers on the same hand," said 55-year-old Faraj al-Sawafir, whose home was blasted by Israeli forces. "They fight for us and are martyred, they take losses and we sacrifice too."

Along Israel's sandy, fenced-off border with the Gaza Strip, tanks, artillery and infantry massed in field encampments awaiting any orders to go in. Some 45,000 reserve troops have been called up since the offensive was launched.

Israel's shekel rose on Tuesday for a second straight session while Tel Aviv shares gained for a third day in a row on what dealers attributed to investor expectations that a ceasefire deal was imminent.

(Additional reporting by Marwa Awad in Cairo, Writing by Jeffrey Heller; Editing by Giles Elgood)

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Kopp: Impostor filed motion in NY Facebook case

BUFFALO, N.Y. (AP) — Lawyers fighting a New York man’s ownership claim against Facebook Inc. say a bizarre motion bearing the name of convicted abortion doctor killer James Charles Kopp earlier this month was apparently filed by an impostor.

In court papers, Facebook lawyers say they received a sworn statement from the imprisoned Kopp Monday denying he’s filed any motion in Paul Ceglia‘s lawsuit. An accompanying letter from Kopp to the federal judge handling the case says someone is impersonating him.

The motion signed with Kopp’s name had sought permission to intervene in Ceglia’s lawsuit while accusing Ceglia of a litany of personal slights, threats and crimes. Kopp’s serving life in prison for the 1998 killing of Dr. Barnett Slepian in suburban Buffalo.

Facebook says the Kopp motion, even if it’s real, should be denied.

Social Media News Headlines – Yahoo! News

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