Boeing working on 787 battery changes for fire risk: WSJ


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


Separately, U.S. aviation regulators said they would allow Boeing to make a one-off 787 flight from Texas to the aircraft maker's facility in Washington State, under strict conditions. Boeing said the plane, scheduled for delivery to China Southern Airlines , would be a "ferry" flight - used to relocate a plane without carrying passengers or conducting tests.


Regulators around the world grounded the technologically advanced 787 in mid-January after a battery fire in Boston and a second incident involving a battery on a flight in Japan.


Boeing is looking at changes within the 787's lithium-ion battery to keep heat or fire from spreading, though technical details have not yet been finalized or approved, the Wall Street Journal reported, citing unnamed government and industry officials. One of the paper's sources added that, under a best-case scenario, passenger flights could resume in March.


The Dreamliner's launch customer All Nippon Airways Co Ltd , which has the biggest fleet of the 250-seat planes, said it will cancel 1,887 flights, affecting more than 25,000 passengers, from March 1 to 30. The airline said on Thursday it had no information on Boeing's latest battery plans.


Boeing declined to comment on the newspaper report. GS Yuasa Corp , the Japanese firm that makes batteries for the 787, also declined to comment.


INVESTIGATIONS ONGOING


Air safety investigators from the United States and Japan have been investigating the battery incidents for three weeks. On Wednesday, the head of the U.S. National Transportation Safety Board (NTSB) said it was "probably weeks away" from completing its probe.


The NTSB is conducting the U.S. probe with help from Boeing, GS Yuasa, the Federal Aviation Administration (FAA) and battery experts from other U.S. federal agencies. No one has yet identified what caused the battery failures.


In Tokyo, one official said Japanese regulators had not been notified of any breakthrough in the U.S. battery investigation. "The investigation will continue as scheduled. Resuming flights in March ... seems far too optimistic to me," said the official who didn't want to be named as the investigation is ongoing.


One source familiar with the investigation told Reuters that Boeing engineers sprang into action "almost immediately" after the first battery incident to ensure the company could meet special FAA-approved conditions to allow lithium-ion batteries on the aircraft. "They can't afford to sit around with their planes on the ground," said the source, who was not authorized to speak publicly.


Boeing was pursuing multiple solutions to mitigate and contain a fire if one started in the batteries, part of a determined effort to get the 787s back in the air while a more permanent solution - possibly even a different battery - was explored.


Three or four different approaches would be pursued to ensure the batteries did not breach their containment systems, even if they caught fire, said the source.


"FERRY" FLIGHT


Boeing asked the FAA this week for permission to conduct new test flights of the 787, suggesting it is making progress in finding a solution to the problems, but the government agency has not yet announced a decision.


While that request is pending, the FAA said on Wednesday it would allow a one-time 787 "ferry" flight. The plane, with a minimum crew, would have to land immediately if the flight computer displays any battery-related messages. It was not immediately clear when the flight would take place.


Some 50 Dreamliners have been grounded while investigators try to solve the battery mystery.


Japan Airlines Co Ltd said this week it will talk to Boeing about compensation for the 787's grounding, which it expects to cost nearly $8 million from lost earnings through March. ANA has said it would seek compensation from Boeing once the amount of damages was clearer.


JAL said on Thursday it was also unaware of any Boeing plans to test new batteries.


(Reporting by Andrea Shalal-Esa in Washington, Bill Rigby in Seattle, Peter Henderson in San Francisco and Mari Saito in Tokyo; Editing by Gary Hill, Bernard Orr, Eric Walsh, Andre Grenon and Ian Geoghegan)



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HTC bills its ‘ultrapixel’ camera as an historic event







HTC (2498) wants you to know that its upcoming “ultrapixel” camera is a big deal. How big, you ask? So big that it deserves to be on a timeline with the invention of the Polaroid and the world’s first camera phone. The Verge points us to a post on HTC’s official blog that outlines “a brief history of photography” and that concludes with a “mystery entry” for 2013 that reads, “HTC kicks off a new sound and camera experience.” Although HTC has not yet announced details surrounding its new camera on the upcoming M7 smartphone, leaked details provided to Pocket-Lint suggest it will be a 13-megapixel camera that will feature “three 4.3-megapixel sensor layers” that are “combined to give a resulting single image.” Regardless of whether this sort of innovation deserves to be placed on the same pedestal as the invention of the Polaroid camera, it does sound intriguing.


[More from BGR: Google’s big potential problem: The ‘Galaxy’ brand is starting to beat the ‘Android’ brand]






This article was originally published on BGR.com


Wireless News Headlines – Yahoo! News





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















02/05/2013 at 09:20 PM EST







Kris Humphries and Kim Kardashian


Seth Browarnik/StarTraks


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

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

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

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

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

Kardashian, herself, recently addressed the timing.

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

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Critics seek to delay NYC sugary drinks size limit


NEW YORK (AP) — Opponents are pressing to delay enforcement of the city's novel plan to crack down on supersized, sugary drinks, saying businesses shouldn't have to spend millions of dollars to comply until a court rules on whether the measure is legal.


With the rule set to take effect March 12, beverage industry, restaurant and other business groups have asked a judge to put it on hold at least until there's a ruling on their lawsuit seeking to block it altogether. The measure would bar many eateries from selling high-sugar drinks in cups or containers bigger than 16 ounces.


"It would be a tremendous waste of expense, time, and effort for our members to incur all of the harm and costs associated with the ban if this court decides that the ban is illegal," Chong Sik Le, president of the New York Korean-American Grocers Association, said in court papers filed Friday.


City lawyers are fighting the lawsuit and oppose postponing the restriction, which the city Board of Health approved in September. They said Tuesday they expect to prevail.


"The obesity epidemic kills nearly 6,000 New Yorkers each year. We see no reason to delay the Board of Health's reasonable and legal actions to combat this major, growing problem," Mark Muschenheim, a city attorney, said in a statement.


Another city lawyer, Thomas Merrill, has said officials believe businesses have had enough time to get ready for the new rule. He has noted that the city doesn't plan to seek fines until June.


Mayor Michael Bloomberg and other city officials see the first-of-its-kind limit as a coup for public health. The city's obesity rate is rising, and studies have linked sugary drinks to weight gain, they note.


"This is the biggest step a city has taken to curb obesity," Bloomberg said when the measure passed.


Soda makers and other critics view the rule as an unwarranted intrusion into people's dietary choices and an unfair, uneven burden on business. The restriction won't apply at supermarkets and many convenience stores because the city doesn't regulate them.


While the dispute plays out in court, "the impacted businesses would like some more certainty on when and how they might need to adjust operations," American Beverage Industry spokesman Christopher Gindlesperger said Tuesday.


Those adjustments are expected to cost the association's members about $600,000 in labeling and other expenses for bottles, Vice President Mike Redman said in court papers. Reconfiguring "16-ounce" cups that are actually made slightly bigger, to leave room at the top, is expected to take cup manufacturers three months to a year and cost them anywhere from more than $100,000 to several millions of dollars, Foodservice Packaging Institute President Lynn Dyer said in court documents.


Movie theaters, meanwhile, are concerned because beverages account for more than 20 percent of their overall profits and about 98 percent of soda sales are in containers greater than 16 ounces, according to Robert Sunshine, executive director of the National Association of Theatre Owners of New York State.


___


Follow Jennifer Peltz at http://twitter.com/jennpeltz


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Dell to go private in landmark $24.4 billion deal


SAN FRANCISCO/NEW YORK (Reuters) - Michael Dell struck a deal to take Dell Inc private for $24.4 billion in the biggest leveraged buyout since the financial crisis, partnering with the Silver Lake private equity firm and Microsoft Corp to try to turn around the struggling computer company without Wall Street scrutiny.


The deal, which requires approval from a majority of shareholders excluding Dell himself, would end a 24-year run on public markets for a company that was conceived in a college dorm room and quickly rose to the top of the global personal computer business - only to be rendered an also-ran over the past decade as PC prices crumbled and customers moved to tablets and smartphones.


Dell executives said on Tuesday that the company will stick to a strategy of expanding its software and services offerings for large companies, with the goal of becoming a full-service provider of corporate computing services in the mold of the highly profitable IBM. They played down speculation that Dell might spin off the low-margin PC business on which it made its name.


Dell did not give specifics on what it would do differently as a private entity, angering some shareholders who said they needed more information to determine whether the $13.65-a-share deal price - a 25 percent premium over Dell's stock price before buyout talks leaked in January - was adequate.


"This feels like the ultimate insider trade. Why weren't the plans and projections that Michael Dell has going forward been shared with me and other shareholders?" said Frederick "Shad" Rowe, general partner of Greenbrier Partners and a trustee of the $22 billion Texas Employees Retirement System. Rowe said he dumped about 400,000 shares of Dell on Tuesday, adding, "I was so irritated I didn't want to think about it anymore.


Dell spokesman David Frink said the board had conducted an extensive review of strategic options before agreeing to the buyout to ensure that the best interests of all stockholders were served.


Although Dell shares were trading at more than $18 a year ago, many analysts said they believed the majority of shareholders will accept the buyout because of pessimism over the growth prospects of the PC business.


"A private Dell is likely to more aggressively cut costs, in our view. But we think merely restructuring only postpones the inevitable, creating a value trap," said Discern Inc analyst Cindy Shaw. "Dell needs to do more than reduce its cost structure. It needs to innovate."


Dell was regarded as a model of innovation as recently as the early 2000s, pioneering online ordering of custom-configured PCs and working closely with Asian component suppliers and manufacturers to assure rock-bottom production costs. But it missed the big industry shift to tablet computers, smartphones and high-powered consumer electronics such as music players and gaming consoles.


As of 2012's fourth quarter, Dell's share of the global PC market had slipped to just above 10 percent from 12.5 percent a year earlier as its shipments dived 20 percent, according to research house IDC.


Some of Dell's rivals took pot shots at the deal, in unusually pointed comments that reflect how bitter the struggle is in a commoditized PC industry that has wrestled to reverse a decline in sales globally.


Hewlett-Packard Co, which itself has suffered years of turmoil in the face of challenges in the PC business, said in a statement that Dell's deal would "leave existing customers and innovation at the curb," and vowed to exploit the opportunity.


Lenovo, which consists largely of the former IBM PC unit, referred to the "distracting financial maneuvers and major strategic shifts" of its rival while emphasizing its own stability and strong financial position.


The deal will be financed with cash and equity from Michael Dell, $1 billion cash from private equity firm Silver Lake, a $2 billion loan from Microsoft Corp, and between $11 billion and $12 billion in debt financing from Bank of America Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets.


The company said Michael Dell will contribute his 16 percent stake in the company but did not say how much cash he would inject. The company will now conduct a 45-day "go-shop" process in which others might make higher offers.


"Though we were hoping for a higher price, we trust that the Dell board has properly done its job by conducting a process open to any third-party offers and reviewing all strategic options," said Bill Nygren, who manages the $7.3 billion Oakmark Fund and $3.2 billion Oakmark Select Fund, which have a $250 million position in Dell.


"Should we hear evidence to the contrary, we'll raise a ruckus."


Sources with knowledge of the matter said Dell's board, advised by the Boston Consulting Group, had considered everything from a leveraged recapitalization to a breakup of the company before agreeing to the LBO.


Although the deal will load Dell with more debt, some Wall Street analysts said that was relatively low compared to the cash the company generates.


Bernstein Research analyst Toni Sacconaghi said that if Dell were to use 40 percent of its annual cash flow of about $2.5 billion to $3 billion to pay down debt, a sale of the company in about five years could net Silver Lake, Mike Dell and other investors close to $10 billion, or 5 times free cash flow at the time.


Helped by acquisitions, Dell has been building a business selling servers, IT services and other products for corporate clients that - while still dwarfed by IBM's and HP's - is growing at a near-10 percent clip. Critics say it will not be easy for Dell to beat IBM and HP in this area, no matter what its corporate structure.


Sales of PCs still make up the majority of Dell's revenues. Dell said in a regulatory filing that no new job cuts were expected but it indicated more acquisitions down the road. The company has spent $13 billion since fiscal 2008 to acquire more than 20 companies including several large software and services companies as it seeks to reconfigure itself as a broad-based supplier of technology for big companies.


"We recognize this process will take more time," Chief Financial Officer Brian Gladden told Reuters. "We will have to make investments, and we will have to be patient to implement the strategy. And under a new private company structure, we will have time and flexibility to really pursue and realize the end-to-end solutions strategy."


Gladden said the company's strategy would "generally remain the same" after the deal closed, but "we won't have the scrutiny and limitations associated with operating as a public company."


Shares of Dell closed 1.1 percent higher at $13.42.


FALL FROM GRACE


Michael Dell returned to the company as CEO in 2007 after a brief hiatus but has been unable to engineer a turnaround thus far. Analysts said Dell could be more nimble as a private company, but it will still have to deal with the same difficult market conditions.


There is little history to suggest whether going private makes such a transition easier. IBM's famously successful transition from hardware vendor to corporate IT partner took place while it was trading on public markets.


Freescale, formerly the semiconductor division of Motorola, was taken private in 2006 for $17.6 billion by a group of private equity firms including Blackstone Group LP, Carlyle Group and TPG Capital LP. Analysts say the resulting debt load hurt its ability to compete in the capital-intensive chip business. Freescale cut just under 5 percent of its work force last year as it continued to restructure.


Microsoft's involvement in the Dell deal piqued much speculation about a renewed strategic partnership, but the software company is providing only debt financing and Dell said there were no specific business terms attached to the transaction. Dell has long been loyal to Microsoft's Windows operating system, which has been at the heart of its PC business since its inception.


Microsoft's loan will take the form of a 10-year subordinated note with roughly 7 percent to 8 percent interest, a source close to the matter told Reuters.


The Dell deal would be the biggest private equity-backed leveraged buyout since Blackstone Group LP's takeout of the Hilton Hotels Group in July 2007 for more than $20 billion and is the 11th-largest on record.


The parties expect the transaction to close before the end of Dell's 2014 second quarter, which ends in July. News of the talks first emerged on January 14, although they reportedly started in the latter part of 2012. Michael Dell had previously acknowledged thinking about going private as far back as 2010.


J.P. Morgan and Evercore Partners were financial advisers, and Debevoise & Plimpton LLP was the legal adviser to the special committee of Dell's board. Goldman Sachs was financial adviser, and Hogan Lovells was legal adviser to Dell.


Wachtell, Lipton, Rosen & Katz was legal adviser to Michael Dell. BofA Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets were financial advisers to Silver Lake, and Simpson Thacher & Bartlett LLP was its legal adviser. Lazard Ltd advised Microsoft.


(Additional reporting by Aaron Pressman in Boston; Writing by Ben Berkowitz and Edwin Chan; Editing by Tiffany Wu, Leslie Gevirtz and Cynthia Osterman)



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“GameStick” Kickstarter Succeeds with More Than Half a Million in Funding






Hot on the heels of Ouya’s record-breaking Kickstarter success, GameStick‘s designers have received more than $ 647,000 in funding from their successful campaign. It’s less than a tenth of the $ 8.5 million the other Android-based game console pulled in during its run, but it’s more than six times what GameStick’s designers asked for, and they’re now pushing ahead to their April launch.


What is GameStick?






GameStick is basically a wireless controller, with a slot for a tiny USB stick sized device which plugs into a TV and is the actual console itself. It’s the second of the new generation of game consoles which are powered by AndroidGoogle‘s free-to-use, open-source operating system — and financed through the crowdfunding platform Kickstarter, which allows people to preorder devices while they’re still in the concept stage. Especially generous backers receive early access to devices, or the ability to influence the product’s design.


This model has worked for both Ouya and GameStick because a slew of AAA mobile games are already available for Android on the proprietary Google Play store, many of which already support console-style game controllers. It’s only a matter of convincing their developers that a new console will be popular enough that it’s worth bringing their titles to it — a fact which is easily demonstrated by the amount of support and funding Kickstarter brings to a product before its launch.


Which developers are bringing their titles to GameStick?


According to GameStick’s Jan. 29 update, written two days before its Kickstarter funding round closed, “100′s of Indies” have signed up for its developer program, along with top-tier Android developers like Madfinger Games (creators of Dead Trigger and Shadowgun) and DotEmu (reponsible for porting Android versions of classic games Raiden, Another World, and R-TYPE).


What changes have been made to GameStick since it started?


First, an optional dock accessory was previewed on the GameStick Kickstarter blog, and offered to people who pledged $ 20 more than the $ 89 “GameStick bundle with case” level. It’s the size of the GameStick controller itself, and supports wireless charging and “a wide range of peripheral[s].” It will have ethernet, HDMI, and USB ports, as well as a full-sized SD card slot which will support up to 64 GB SDHC cards.


Second, the GameStick controller itself has been redesigned, to be more streamlined and ergonomic than the classic NES style controller originally previewed on Kickstarter. GameStick’s Facebook page shows a 3D render of the new controller design, while its blog discusses the redesign.


Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.


Linux/Open Source News Headlines – Yahoo! News




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




Celebrity Baby Blog





02/04/2013 at 03:00 PM ET



Jillian Michaels Biggest Loser TCAs
Gregg DeGuire/WireImage


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


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


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


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

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


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


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


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


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Bullying study: It does get better for gay teens


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


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


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


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


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


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


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


The study appears online Monday in the journal Pediatrics.


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


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


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


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


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


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


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


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


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


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


___


Online:


Pediatrics: http://www.pediatrics.org


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


___


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


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Asian shares drop on euro zone worry, soft U.S. data

TOKYO (Reuters) - Asian shares slid on Tuesday as investors saw opportunities to cash in from recent strong rallies in the face of weak U.S. data and worries that a potential political shake-up could disrupt the eurozone's efforts to resolve its debt crisis.


The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> tumbled 0.8 percent, dragged lower by a steep 1.8 percent fall in Hong Kong shares <.hsi>.


The euro took the brunt of renewed focus on the euro zone problems, having risen 2.3 percent so far this year against the U.S. dollar, up about 5.4 percent against sterling and 1.8 percent higher against the Australian dollar.


The euro eased 0.1 percent to $1.3496, retreating further from Friday's 14-1/2-month peak of $1.3711, ahead of the European Central Bank's policy meeting on Thursday.


The euro's fall helped euro/crosses recover, underpinning such currencies as the Australian dollar against the U.S. unit.


Aussie eased 0.1 percent to $1.0423 after the Reserve Bank of Australia kept its cash rate steady at 3.0 percent, as expected, having just cut in December.


Spain's opposition party on Sunday called for Prime Minister Mariano Rajoy to resign over a corruption scandal, an allegation Rajoy denies, pushing Spanish 10-year bond yields to six-week highs.


In Italy, 10-year Italian government bond yields hit their highest since late December, as chances of former prime minister Silvio Berlusconi regaining power raised worries about Rome's ability to fix its fiscal problems.


"Markets have been increasingly comfortable with European risks over the past few months and are largely not positioned for this increase in political problems. The outcomes in Spain and Italy are far from certain and may represent stumbling blocks for further expansion in risk appetite," Barclays Capital said in a research note.


The yen took a breather, firming from lows against a broad range of currencies.


The dollar was down slightly at 92.31 yen after scaling its highest since May 2010 of 93.185 on Monday, while the euro eased 0.1 percent to 124.61 yen, off its loftiest since April 2010 of 126.97 hit on Friday.


"Markets are broadly undergoing a correction and the euro is definitely facing profit-taking, given the pace of its climb. Worries about the euro zone debt crisis always remain a downside risk for the euro, and could push it lower to $1.32-$1.33," said Hiroshi Maeba, head of FX trading Japan at UBS in Tokyo. "But the trend is still upward for dollar/yen, cross/yen. The dollar could reach 95 yen by the end of the month."


As long as markets hold out expectations for the Bank of Japan to implement aggressive monetary easing to beat decades of deflation in Japan, the yen will stay pressured. Any correction to the dollar's rise against the yen was also be seen as shallow, with many traders and analysts seeing a firm floor around 87-88 yen.


Relatively positive data from China on Tuesday failed to change the bearish mood, weighed down by a fall in overnight U.S. equities, which have rallied 6 percent so far this year, on discouraging U.S. factory orders and euro zone jitters.


The HSBC services purchasing managers' index rose to a four-month high of 54 in January from December's 51.7, underlining confidence in the world's second-biggest economy, which is expected to grow 8.1 percent this year, off a 13-year low of 7.8 percent hit in 2012.


"The data globally is unquestionably better but the recovery still seems gradual. (China) hit the bottom and they had a bit of a bounce but nothing much else happened. We don't really seem to have preconditions for a much stronger bounce than that (8 percent growth)," said Richard Yetsenga, Head of Global Markets at ANZ Research.


Japan's benchmark Nikkei stock average <.n225> fell 1.3 percent, after scaling a 33-month high on Monday. <.t/>


U.S. stocks slid on Monday, leaving the Standard & Poor's 500 Index <.spx> at its worst day since November after the index rose just 60-odd points away from its all-time intraday high of 1,576.09 on Friday.


(Editing by Eric Meijer)



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Syrian opposition chief says offers Assad peaceful exit


BEIRUT (Reuters) - Syrian opposition leader Moaz Alkhatib urged Syrian President Bashar al-Assad's government on Monday to start talks for its departure from power and save the country from greater ruin after almost two years of bloodshed.


Seeking to step up pressure on Assad to respond to his offer of talks - which dismayed some in his own opposition coalition, Alkhatib said he would be ready to meet the president's deputy.


"I ask the regime to send Farouq al-Shara - if it accepts the idea - and we can sit with him," he said, referring to Syria's vice president who has implicitly distanced himself from Assad's crackdown on mass unrest that became an armed revolt.


Speaking after meeting senior Russian, U.S. and Iranian officials, Alkhatib said none of them had an answer to the 22-month-old crisis and Syrians must solve it themselves.


"The issue is now in the state's court...to accept negotiations for departure, with fewer losses," the Syrian National Coalition leader told Al Arabiya television.


The moderate Islamist preacher announced last week he was prepared to talk to Assad's representatives. Although he set several conditions, the move broke a taboo on opposition contacts with Damascus and angered many in its ranks who insist on Assad's departure as a precondition for negotiation.


Alkhatib said it was not "treachery" to seek dialogue to end a conflict in which more than 60,000 people have been killed, 700,000 have been driven from their country and millions more are homeless and hungry.


"The regime must take a clear stand (on dialogue) and we say we will extend our hand for the interest of people and to help the regime leave peacefully," he said in separate comments to Al Jazeera television.


Assad announced last month what he said were plans for reconciliation talks to end the violence but - in a speech described by U.N. Syria envoy Lakhdar Brahimi as narrow and uncompromising - he said there would be no dialogue with people he called traitors or "puppets made by the West".


Syria's defense minister said the army had proved it would not be defeated in its confrontation with rebels but declined to say whether it would respond to an Israeli air strike last week.


Security sources said the Israelis bombed a convoy of arms destined for Assad's ally Hezbollah, a sworn enemy of Israel, in neighboring Lebanon. Syria said the attack struck vehicles and buildings at a military research center near Lebanon's border.


Syria's uprising erupted in March 2011 with largely peaceful protests, escalating into a civil war pitting mainly Sunni Muslim rebels against Assad, who is from Syria's Alawite minority. His family has ruled Syria for 42 years.


ANGER AT IRAN


The violence has divided major powers, with Russia and China blocking U.N. Security Council draft resolutions backed by the United States, European Union and Sunni Muslim Gulf Arab states that could have led to U.N. sanctions isolating Assad. Shi'ite Iran has remained his strongest regional supporter.


Alkhatib met Iranian Foreign Minister Ali Akbar Salehi, Russian Foreign Minister Sergei Lavrov and U.S. Vice President Joe Biden at a security conference in Germany at the weekend.


"Iran's stance is unacceptable and I mentioned to the foreign minister that we are very angry with Iran's support for the regime," Alkhatib said.


He said he asked Salehi to pass on his offer of negotiations - based on the acceptance of the Assad government's departure - to Damascus. The two men also discussed the need to prevent Syria's crisis spreading into a regional conflict between Sunni and Shi'ite Muslims, he said.


"We will find a solution, there are many keys. If the regime wants to solve (the crisis), it can take part in it. If it wants to get out and get the people out of this crisis, we will all work together for the interest of the people and the departure of the regime."


One proposal under discussion was the formation of a transitional government, Alkhatib said, without specifying how he thought that could come about. World powers agreed a similar formula seven months ago but then disagreed over whether that could allow Assad to stay on as head of state.


Activists reported clashes between the army and rebel fighters to the east of Damascus on Monday and heavy shelling of rebel-held areas of the central city of Homs. The Jobar neighborhood, on the southwestern edge of Homs, was hit by more than 100 rockets on Monday morning, an opposition activist said.


The Syrian Observatory for Human Rights said at least 90 people were killed by dusk on Monday.


It said 180 people were killed across the country on Sunday, including 114 rebel fighters and soldiers. Sunday's death toll included 28 people killed in the bombardment of a building in the Ansari district of the northern city of Aleppo.


Assad has described the rebels as foreign-backed Islamist terrorists and said a precondition for any solution is that Turkey and Sunni-ruled Gulf Arab states stop funding, sheltering and arming his foes.


The majority of the insurgents are Islamists but those affiliated with al Qaeda are smaller in number, although their influence is growing. For that reason, Western states have been loath to arm the rebels despite their calls for Assad's ouster.


Rebels and activists say that Iran and the Lebanese Shi'ite militant movement Hezbollah have sent fighters to reinforce Assad's army - an accusation that both deny.


ECONOMIC SUPPORT


"The army of Syria is big enough, they do not need fighters from outside," Iran's Salehi said in Berlin on Monday.


"We are giving them economic support, we are sending gasoline, we are sending wheat. We are trying to send electricity to them through Iraq; we have not been successful."


Iranian President Mahmoud Ahmadinejad said later on Monday that Syria's crisis could not be solved by military means and he called for a national accord leading to elections.


"War is not the solution...A government that rules through war - its work will be very difficult. A sectarian war should not be launched in Syria," he told Al Mayadeen television.


"We believe that (deciding) whoever stays or goes is the right of the Syrian people. How can we interfere in that? We must strive to achieve national understanding, and free elections."


Another Iranian official, speaking in Damascus after talks with Assad, said Israel would regret an air strike against Syria last week, without spelling out whether Iran or its ally planned a military response.


Salehi, Russian Foreign Minister Sergei Lavrov and U.S. Vice President Joe Biden all met Alkhatib in Munich at the weekend and portrayed his willingness to talk with Syrian authorities as a major step towards resolving the war.


But Alkhatib is under pressure from other members of the exiled leadership in Cairo for saying he would be willing to talk to Assad. Walid al-Bunni, a member of the Coalition's 12-member politburo, dismissed Alkhatib's meeting with Salehi.


"It was unsuccessful. The Iranians are unprepared to do anything that could help the causes of the Syrian Revolution," Bunni, a former political prisoner, told Reuters from Budapest.


(Additional reporting by Yeganeh Torbati in Dubai and Stephen Brown in Berlin; Editing by Mark Heinrich)



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