Oil falls again on poor economic data, weak US crude demand






NEW YORK: Global oil prices fell more than $2 a barrel Thursday as traders worried over poor economic data, a potential end to US stimulus measures and signs of weaker-than-expected US crude demand.

A barrel of West Texas Intermediate crude for delivery in April dropped $2.38 to $92.84.

European benchmark Brent oil slid $2.07 to $113.53 a barrel.

It was the second day in a row in which crude prices fell sharply. Analysts said there was a general sense that the oil market has become too buoyant given the brittle state of the economy.

"The market had some vertigo at these high levels, and the market is now correcting," said Andy Lebow, senior vice president for energy futures at Jefferies Bache.

Fresh economic data suggested weaker economic conditions that could result in lower demand for petroleum. The US Labour Department said initial jobless claims rose to 362,000 in the week ending February 16, more than the analyst estimate of 358,000.

Meanwhile, a Markit report on the eurozone business activity showed its purchasing managers index hit a two-month low at 47.3 in February, down from 48.6 the previous month.

Lebow said the oil market was also watching the Federal Reserve for any potential shift in policy. Minutes released Wednesday by the Federal Reserve's Open Market Committee showed a vigorous debate on whether to continue a bond-buying program that many analysts believe has supported higher oil prices.

The US government's Department of Energy (DoE) Thursday announced that American crude inventories rose by 4.1 million barrels in the week ending February 15.

That was more than double market expectations for a gain of 1.7 million barrels, according to analysts polled by Dow Jones Newswires.

- AFP/fa



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Egypt accused of crowdsourcing censorship



The film has incited riots all over the Arab world.



(Credit:
Russia Today/YouTube; screenshot by Chris Matyszczyk/CNET)


The Web has made it hard to censor things.


Principally because it is both so open and so Byzantine that there are simply so many things out there for a budding censor to sink his opprobrium into.


I can remember when I lived in Singapore and my NFL VHS's -- mailed to me from Switzerland -- were pored over by men and women with extremely sharp eyes and ears that became highly attuned to the sound of John Madden saying "Boom!"


So imagine how much hard work the world's online censors are having to do.


Egypt has reportedly come up with an idea to solve this problem. It comes from our most modern thoughts and times. It is called crowdsourcing.



More Technically Incorrect



Indeed, Fast Company is reporting that the country's National Telecommunications Registry Agency is encouraging ordinary citizens to register any instances of blasphemy that they might encounter.


This is in conjunction with the outrage over the film "The Innocence of Muslims" and consists of simply indicating the URL of an allegedly blasphemous site, in order for officials to review it.


A few days ago, there were reports that the Egyptian government was trying to shut down YouTube over copies of this movie that were circulating on the site.


The odd thing about "The Innocence of Muslims" is that hardly anyone has actually seen it and everything that seems to surround it -- from its dubious director to the actors who claim they had no idea what the movie really was -- reeks of a very bad scene from "Wag The Dog."


Still, this is hardly the first time the principle of crowdsourcing government action has been witnessed.


Ordinary citizens have often been encouraged to participate in keeping their nations free of whatever their government deemed was deleterious.


The Web merely makes governments believe that more citizens will participate.


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Movement in budget cuts battle?




Play Video


Sequestration poses threat to government agency budgets



For the first time since the waning days of the "fiscal cliff" battle in late December, President Obama reached out to congressional Republican leaders to talk about next week's impending budget cuts known as the sequester.

"He placed calls earlier today to [Senate Minority Leader Mitch] McConnell and [House] Speaker [John] Boehner," White House spokesman Jay Carney announced today. "Had good conversations, but I have no further readout of those calls for you."

Both Boehner's and McConnell's offices confirmed the calls took place but neither would give details about what was discussed. An aide to Boehner said "the last substantive conversation" he had with the president was on Dec. 28; McConnell's office told CBS News it was Mr. Obama's first outreach to McConnell since New Year's Eve.

Today on Rev. Al Sharpton's radio show, Mr. Obama said, "We continue to reach out to the Republicans and say 'this is not going to be good for the economy and it's not going to be good for ordinary people,' but I don't know if they're going to move. And that's what we're going to have to try to keep pushing over the next seven, eight days."

"Whether or not we can move Republicans at this point to do the right thing is what we're still trying to gauge," Mr. Obama said.

The calls come a day after Boehner wrote an op-ed criticizing the president charging that the public "might not realize from Mr. Obama's statements is that [the sequester] is a product of the president's own failed leadership."

The $1.2 trillion sequester cuts, which were initially set to kick in on Jan. 1, emerged out of Congress' 2011 budget negotiations. Congress agreed that if a congressional "supercommittee" couldn't come up with an acceptable deficit reduction plan, Congress would just slash $1.2 trillion from the budget over 10 years -- half coming from defense spending and half from non-defense. Nearly everyone in Washington agrees that indiscriminately slashing $1.2 trillion would damage the economy, but lawmakers can't agree on a deficit reduction package with which to replace the cuts.

Given the economic damage the sequester would inflict, Congress this year stalled the cuts for two months -- which is why they're set to go into effect on March 1. Unless Congress acts before then, $85 billion in across-the-board cuts will kick in this year.

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Las Vegas Hotel Fight Led to Attack on Maserati












Police believe an altercation at a Las Vegas hotel led to a deadly drive-by shooting on the occupants of a Maserati sports car on the city's glitzy strip early this morning that left three people dead, including two who died when their taxi was struck by the careening sports car and exploded into flames.


The occupants of a Range Rover SUV shot at two people in the Maserati, which caused a multi-car accident. Police have not released the model of the Maserati, but the price of a new Maserati ranges from $123,000 to $142,000.


When asked if authorities knew any more about the altercation that led to the shooting, Officer Bill Cassell of the Las Vegas Metropolitan police said, "We believe we do at this point, but we are not putting that information out."


Cassell could not yet say which hotel the altercation took place at. He said police are planning on releasing more information later today.






Steve Marcus/Las Vegas Sun/AP Photo











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Police said that they believe a group of men riding in a black Range Rover Sport SUV pulled up alongside the Maserati around 4:20 a.m. today and fired shots into the car, striking the driver and passenger, according to Officer Jose Hernandez of the Las Vegas Metropolitan police department.


The Maserati then swerved through an intersection, hitting at least four other cars. One car that was struck, a taxi with a driver and passenger in it, caught on fire and burst into flames, trapping both occupants, Hernandez said.


The SUV then fled the scene, according to cops.


The driver of the Maserati died from his gunshot wounds at University Medical Center shortly after the shooting, according to Sgt. John Sheahan.


The driver and passenger of the taxi both died in the car fire.


At least three individuals, including the passenger of the Maserati, were injured during the shooting and car crashes and are being treated at UMC hospital.


Police are scouring surveillance video from the area, including from the strip's major casinos, to try and identify the Range Rover and its occupants, according to police.


They do not yet know why the Range Rovers' occupants fired shots at the Maserati or whether the cars had local plates or were from out of state.


No bystanders were hit by gunfire, Hernandez said.


"We're currently looking for a black Range Rover Sport, with large black rims and some sort of dealership advertising or advertisement plates," Hernandez said. "This is an armed and dangerous vehicle."


The Las Vegas Convention and Visitors Authority had no immediate comment about the safety of tourists in the wake of the shooting today.



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Cycling: Armstrong refuses to cooperate with USADA






WASHINGTON: Lance Armstrong said Wednesday that he will not cooperate with a US Anti-Doping Agency (USADA) investigation into dope cheats in cycling but would be willing to help other anti-doping inquiries.

The move greatly diminishes Armstrong's chances of having his life ban from World Anti-Doping Agency (WADA)-sanctioned sport reduced even as it forces USADA to move ahead without his help in looking into others involved in doping.

"For several reasons, Lance will not participate in USADA's efforts to selectively conduct American prosecutions that only demonize selected individuals while failing to address the 95 percent of the sport over which USADA has no jurisdiction," Armstrong said in a statement released through attorney Tim Herman.

Armstrong was stripped of his seven Tour de France titles after a USADA probe uncovered overwhelming evidence he was at the heart of a major doping conspiracy, including testimony from 26 witnesses, was released last October.

After admitting in a television interview last month that the titles he won from 1999-2005 were helped by performance-enhancing substances, Armstrong said he would cooperate with anti-doping officials.

He repeated that offer on Wednesday even as he made it clear he would not go through USADA to do so.

"Lance is willing to cooperate fully and has been very clear: He will be the first man through the door, and once inside will answer every question, at an international tribunal formed to comprehensively address pro cycling, an almost exclusively European sport," the statement said.

"We remain hopeful that an international effort will be mounted, and we will do everything we can to facilitate that result."

USADA chief executive Travis T. Tygart had given Armstrong a February 6 deadline to testify under oath on what he knew about such subjects as cycling team manager Johan Bruyneel's role in the conspiracy, details of how the scheme unfolded or if International Cycling Union (UCI) officials knew about it.

Armstrong said he would not be able to meet that deadline so Tygart extended the deadline to Wednesday, only to learn Armstrong would not be coming when the disgraced cyclist released his statement to the media.

"Today we learned from the media that Mr. Armstrong is choosing not to come in and be truthful and that he will not take the opportunity to work toward righting his wrongs in sport," Tygart said in a statement.

"At this time we are moving forward with our investigation without him and we will continue to work closely with WADA and other appropriate and responsible international authorities to fulfill our promise to clean athletes to protect their right to compete on a drug free playing field."

Failing to cooperate with USADA all-but dooms Armstrong's chance of reducing his life ban to an eight-year ban, only a possibility for providing substantial assistance to anti-doping authorities under WADA's code.

"We have provided Mr. Armstrong several opportunities to assist in our ongoing efforts to clean up the sport of cycling," Tygart said.

"Following his recent television interview, we again invited him to come in and provide honest information and he was informed in writing by WADA that this was the appropriate avenue for him if he wanted to be part of the solution.

"Over the last few weeks he has led us to believe that he wanted to come in and assist USADA, but was worried of potential criminal and civil liability if he did so."

Armstrong, 41, faces two major lawsuits that could be impacted by any testimony he gives under oath.

A Texas insurance firm sued Armstrong on February 7 seeking $12 million for bonus money paid to Armstrong for the Tour de France triumphs that are now null and void.

Former Armstrong teammate Floyd Landis, himself an admitted dope cheat who lost the 2006 Tour de France crown because of doping, is suing Armstrong on grounds that Armstrong deceived sponsors US Postal Service by claiming to be winning his titles without using performance-enhancing drugs.

In his television confessional to Oprah Winfrey last month, Armstrong contradicted several parts of USADA's investigation, saying he had stopped doping after 2005 and was not a ringleader in the doping programme.

Tygart, in a later television interview, said Armstrong had lied to Winfrey because USADA evidence showed he was doping when he rode in the Tour de France two final times in 2009 and 2010.

According to Tygart, expert reports based on the variation of Armstrong's blood values make it a "one to a million chance that it was due to something other than doping."

-AFP/ac



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Cell phone germs as art: Gross or gorgeous?



Ick? Actually, this cell phone appears to be one of the cleaner of the bunch.



(Credit:
Simon Park/University of Surrey)


It's not news that cell phones harbor bacteria, but there's a difference between knowing that about your device and seeing the germs up close in all their furry, florid glory.

Molecular biology undergraduates at the U.K.'s University of Surrey recently got a stark view of just how much bacteria crawls their phones when instructor Simon Park had them imprint them onto petri dishes filled with a bacteriological growth medium and wait a few days to see what bloomed.




Spoiler alert: The experiment turned up lots of bugs, though Park says most of the bacteria were harmless varieties normally found on the skin. Disease-carrying bacteria such as Staphylococcus aureus were also found, however.


"The ecological niche on the body for Staphylococcus aureus is the nostrils, so a furtive pick of the nose, and quick text after, and you end up with this pathogen on your smartphone," Park told Wired.co.uk.

Park -- who dabbles in all sorts of microphotography of natural phenomena -- describes himself as a "poet scientist who works with living matter in order to explore the inherent creativity of the natural world and to reveal its subtle, and usually hidden, narratives."

Indeed, it's as if each bacteria-covered cell phone tells its own story. Click through the gallery below to see what tales they have to tell.




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Pistorius prosecution: Error in "testosterone" testimony

PRETORIA, South AfricaThe investigating officer in the Oscar Pistorius murder case made an error in his court testimony Wednesday when he identified a substance found in the athlete's bedroom as testosterone, the national prosecutor said.


Medupe Simasiku, the spokesman for South Africa's National Prosecution Agency, told The Associated Press that it was too early to identify the substance as it was still undergoing laboratory tests.

"It is not certain (what it is) until the forensics." Simasiku said, adding that it wasn't certain if it was "a legal or an illegal medication for now."




Play Video


Pistorius case: Police say they found testosterone, needles in bathroom






19 Photos


Olympic athlete charged with murder



Detective Warrant Officer Hilton Botha, the investigating officer, said earlier in court during Pistorius' bail hearing that police found two boxes of testosterone and needles in the bedroom of the Olympic athlete, who is charged with premediated murder in the Feb. 14 shooting death of his girlfriend Reeva Steenkamp.

It was a mistake to identify the substance now, Simasiku said, as it was still unknown. He said the discovery of needles was in Botha's statement, however.

Pistorius denies murder, saying in an affidavit Tuesday that the Valentine's Day shooting was accidental because he thought there was an intruder in his house.

In response to Botha's claim, the defense said Wednesday, the second day of Pistorius' bail hearing at Pretoria Magistrate's Court, that the substance found was not a steroid or a banned substance but an herbal remedy.


Pistorius' lawyer Barry Roux had slammed Botha's testimony earlier, saying police "take every piece of evidence and try to extract the most possibly negative connotation and present it to the court."


International Paralympic Committee spokesman Craig Spence told the AP soon after the substance claims that Pistorius — the world's most famous disabled athlete — was drug tested twice in London last year by the IPC, on Aug. 25 and Sept. 8. Both test results were negative, Spence said.

The Aug. 25 test was an out-of-competition test, and the Sept. 8 one in-competition, a day before the end of the London Paralympics.

The International Olympic Committee said it didn't test Pistorius at the Olympics, but referred the AP to the IPC's negative tests. International athletics body the IAAF and the World Anti-Doping Agency would not comment because it was an ongoing legal case.

"Bearing in mind the ongoing police investigation, WADA must refrain from making any statement at present," WADA said.

Giving testimony, Botha said police made the discovery of testosterone in bedroom of the double-amputee runner and multiple Paralympic champion's upscale Pretoria house after the shooting of Steenkamp but offered no further details or explanation. State prosecutor Gerrie Nel also had to correct Botha when he initially called it "steroids."

Simasiku later told the AP that the detective, Botha, thought it was testosterone by reading the first few letters of the label.

Pistorius' lawyer Roux, said on questioning the detective — who has 16 years' experience as a detective and 24 years with the police — that it was not a banned substance and that police were trying to give the discovery a "negative connotation."

"It is an herbal remedy," Roux said. "It is not a steroid and it is not a banned substance."

The debate over the substance added another dramatic twist to a case that has already gripped the world's attention since Steenkamp's killing at Pistorius' home last Thursday.

Prosecutor Nel also had to clarify that police were not saying that Pistorius was using the substance, only that it was discovered along with the needles in his bedroom.

Pistorius said Tuesday in a written affidavit and read in court by Roux that he mistakenly killed model Steenkamp in the early hours of Valentine's Day when he fired four shots into a locked toilet door, hitting his girlfriend three times after thinking she was a dangerous intruder.

The prosecution claims Pistorius intended to kill the 29-year-old Steenkamp after they had a fight.

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Arias Can't Remember Gory Death of Ex-Boyfriend












Accused murderer Jodi Arias told an Arizona jury today that her ex-boyfriend became enraged when she dropped his new camera, body slammed her to a tile floor and threatened to kill her, and in the frantic struggle that followed she remembers a gun being fired accidentally but does not remember stabbing him.


Her version of Travis Alexander's death was the culmination of more than a week of testimony in which Arias, 32, has tried to convince the jury she killed Alexander, 27, in self-defense during a violent episode in what she has described as an increasingly abusive relationship. She is on trial for murder and could face the death penalty if convicted.


Arias said that Alexander lost his temper when she dropped his camera on his bathroom floor while taking nude photos of him. Enraged, he picked her up and body slammed her onto the floor, screaming at her, she told the jury.


She ran to his closet to get away from him, and then exited through the closet's second door into Alexander's office where she grabbed a gun that she knew he kept on a top shelf.


She tried to keep running, but as Alexander came after her she said she pointed the gun at him in an attempt to ward him off.


"I pointed it at him with both of my hands. I thought that would stop him, but he just kept running. He got like a linebacker, he got low and grabbed my waist, and as he was lunging at me the gun went off. I didn't mean to shoot. I didn't even think I was holding the trigger," she said.








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"But he lunged at me and we fell really hard toward the tile wall, so at this point I didn't even know if he had been shot. I didn't see anything different. We were struggling, wrestling, he's a wrestler.


"So he's grabbing at my clothes and I got up, and he's screaming angry, and after I broke away from him. He said 'f***ing kill you bitch,'" she testified.


Catching Up on the Trial? Check Out ABC News' Jodi Arias Trial Coverage


Timeline of the Jodi Arias Trial


Asked by her lawyer whether she was convicted Alexander intended to kill her, Arias answered, "For sure. He'd almost killed me once before and now he's saying he was going to." Arias had earlier testified that Alexander had once choked her.


Arias said that she has no memory of stabbing or slashing Alexander whose body was later found with 27 stab wounds, a slit throat and two bullets in his head. She said she only remembered standing in the bathroom, dropping the knife on the tile floor, realizing the "horror" of what had happened, and screaming.


"I have no memory of stabbing him," she said. "There's a huge gap. I don't know if I blacked out or what, but there's a huge gap. The most clear memory I have after that point is driving in the desert."


Arias said that she remembered driving away from Mesa, Ariz., where she had killed Alexander, and realizing that he was likely dead. She said she threw the gun she used out of her window and into the desert and kept driving to Utah, where she was supposed to meet up with friends and a new romantic interest.


"I don't remember anything else after that. I just couldn't believe what had happened, that I couldn't take anything back that had happened, I couldn't rewind the clock," she said.


Arias' defense rests heavily on the description of Alexander's death, as her attorneys have argued she was forced to kill Alexander in self-defense. She has described what she said were Alexander's increasingly abusive and rage-filled outbursts toward her in the weeks leading up his death.


The prosecution alleges that Arias murdered Alexander in a jealous rage, and has attempted to prove that the killing was pre-meditated. They will cross-examine Arias after she is done testifying for the defense.



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Bulgarian government resigns amid growing protests


SOFIA (Reuters) - Bulgaria's government resigned on Wednesday after mass protests against high power prices and falling living standards, joining a long list of European administrations felled by austerity during four years of debt crisis.


Prime Minister Boiko Borisov, an ex-bodyguard who took power in 2009 on pledges to root out graft and raise incomes in the European Union's poorest member, faces a tough task of propping up eroding support ahead of an expected early election.


Wage and pension freezes and tax hikes have bitten deep in a country where earnings are less than half the EU average and tens of thousands of Bulgarians have rallied in protests that have turned violent, chanting "Mafia" and "Resign".


Moves by Borisov on Tuesday to blame foreign utility companies for the rise in the cost of heating homes was to no avail and an eleventh day of marches saw 15 people hospitalized and 25 arrested in clashes with police.


"My decision to resign will not be changed under any circumstances. I do not build roads so that blood is shed on them," said Borisov, who began his career guarding the Black Sea state's communist dictator Todor Zhivkov.


A karate black belt, Borisov has cultivated a Putin-like "can-do" image since he entered politics as Sofia mayor in 2005 and would connect with voters by showing up on the capital's rutted streets to oversee the repair of pot-holes.


But critics say he has often skirted due process, sometimes to the benefit of those close to him, and his swift policy U-turns have wounded the public's trust.


The spark for the protests was high electricity bills, after the government raised prices by 13 percent last July. But it quickly spilled over into wider frustration with Borisov and political elites with perceived links to shadowy businesses.


"He made my day," said student Borislav Hadzhiev in central Sofia, commenting on Borisov's resignation. "The truth is that we're living in an extremely poor country."


POLLS, PRICES


The prime minister's final desperate moves on Tuesday included cutting power prices and risking a diplomatic row with the Czech Republic by punishing companies including CEZ, moves which conflicted with EU norms on protection of investors and due process.


CEZ officials were hopeful on Wednesday that it would be able to avoid losing its distribution license after all and officials from the Bulgarian regulator said the company would not be punished if it dealt with breaches of procedure.


But shares in what is central Europe's largest publicly-listed company fell another 1 percent on Wednesday.


If pushed through, the fines for CEZ and two other foreign-owned firms will not encourage other investors in Bulgaria, who already have to navigate complicated bureaucracy and widespread corruption and organized crime to take advantage of Bulgaria's 10-percent flat tax rate.


Financial markets reacted negatively to the turbulence on Wednesday. The cost of insuring Bulgaria's debt rose to a three-month high and debt yields rose some 15 basis points, though the country's low deficit of 0.5 percent of gross domestic product means there is little risk to the lev currency's peg against the euro.


Borisov's interior minister indicated that elections originally planned for July would probably be pulled forward by saying that his rightist GERB party would not take part in talks to form a new government.


MILLIONS GONE


GERB's woes have echoes in another ex-communist EU member, Slovenia, where demonstrators have taken to the streets and added pressure to a crumbling conservative government.


A small crowd gathered in support of Borisov outside Sofia's parliament, which is expected to approve his resignation on Thursday, while bigger demonstrations against the premier were expected in the evening.


Unemployment in the country of 7.3 million is far from the highs hit in the decade after the end of communism but remains at 11.9 percent. Average salaries are stuck at around 800 levs ($550) a month and millions have emigrated, leaving swathes of the country depopulated and little hope for those who remain.


GERB's popularity has held up well and it still led in the latest polls before protests grew in size last weekend, but analysts say the opposition Socialists should draw strength from the demonstrations.


The leftists, successors to Bulgaria's communist party, have proposed tax cuts and wage hikes and are likely to raise questions about public finances if elected.


(Additional reporting by Angel Krasimirov; editing by Patrick Graham)



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Apple hit by hackers






SAN FRANCISCO: Apple on Tuesday said it was hit by hackers who wormed their way into the California company's system but evidently failed to steal any data.

The maker of iPhones, iPads, iPods, and Macintosh computers said it is working with law enforcement officials to hunt down the hackers, who appeared tied to a series of recent cyber attacks on US technology firms.

"The malware was employed in an attack against Apple and other companies, and was spread through a website for software developers," Apple said in an email response to an AFP inquiry.

"We identified a small number of systems within Apple that were infected and isolated them from our network."

The malicious software, or malware, took advantage of vulnerability in a Java program used as a "plug-in" for Web browsing programs.

A "small number" of computer systems at Apple were infected but they were isolated from the main network, according the Silicon Valley based company.

"There is no evidence that any data left Apple," Apple said. "We are working closely with law enforcement to find the source of the malware."

Apple took the added steps of releasing a Macintosh computer operating system update that disables Java software that hasn't been used for 35 days or longer and a tool for finding and removing the malware.

Word of hackers hitting Apple came just days after leading social network Facebook said it was "targeted in a sophisticated attack" last month, but that it found no evidence any user data was compromised.

Facebook said Friday that the malware came from an infected website of a mobile developer and that "we remediated all infected machines, informed law enforcement, and began a significant investigation that continues to this day."

It was unclear whether it was the same website blamed for the attack on Apple.

The attackers used a previously unseen exploit taking advantage of a flaw in Java software made by Oracle, which was alerted to the situation and released a patch the first of February, according to Facebook.

The hackers appeared to be targeting developers and technology firms based on the website they chose to booby-trap with malicious code.

"Facebook was not alone in this attack," the Northern California-based company said.

"It is clear that others were attacked and infiltrated recently as well."

Early this month Twitter said it was hammered by a cyber attack similar to those that recently hit major Western news outlets, and that the passwords of about 250,000 users were stolen.

"This attack was not the work of amateurs, and we do not believe it was an isolated incident," Twitter information security director Bob Lord said in a blog post at the time.

Lord said there was an "uptick in large-scale security attacks aimed at US technology and media companies."

The New York Times and The Wall Street Journal recently said that they had been hacked, and pointed to attackers from China.

Brazen cyberattacks on US media and technology firms revived concerns over Chinese hackers, who analysts say are likely linked to the secretive Beijing government.

China's army controls hundreds if not thousands of virulent and cutting-edge hackers, according to a report Tuesday by a US Internet security firm that traced a host of cyberattacks to an anonymous building in Shanghai.

Mandiant said its hundreds of investigations showed that groups hacking into US newspapers, government agencies, and companies "are based primarily in China and that the Chinese government is aware of them".

The report focused on one group, which it called "APT1" from the initials "Advanced Persistent Threat."

"We believe that APT1 is able to wage such a long-running and extensive cyber espionage campaign in large part because it receives direct government support," Mandiant said.

The group, it said, was believed to be a branch of the People's Liberation Army called Unit 61398, and digital signatures from its cyberattacks were traced back to the direct vicinity of a nondescript, 12-story building on the outskirts of Shanghai.

China's foreign ministry rejected "groundless accusations" of Chinese involvement in hacking and also said China was itself a major victim, with most overseas cyberattacks against it originating in the US.

The Pentagon declined to comment directly on the report but said Defense Secretary Leon Panetta voiced US dismay over digital threats in his visit to Beijing last year.

-AFP/ac



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