Sony insurer seeks PlayStation Network hack opt-out

Sony faces a court battle over how it will pay for legal claims made in the wake of a massive data breach.

One of the company's insurers has asked a judge to rule that it is not liable for losses related to the cyber attack.
In April, Sony discovered that hackers had gained access to 77 million accounts on its PlayStation Network.
The firm agreed to pay anyone who lost-out financially as a result of the incident, but it is still being sued by a number of users.
PlayStation Network was shut down worldwide for more than a month while Sony reviewed its security procedures.
Claim game Zurich American Insurance has now gone to court in New York seeking a declaration that it does not have to help Sony with current or future legal action related to the data breach.
Legal papers filed by Zurich reveal that 55 separate class action lawsuits are pending in the US because of the breach.
Also underway are investigations by state and federal regulators that could also end-up before the courts.
Sony has made claims on several of its insurance policies, including one with Zurich, to help pay its legal bills and provide compensation.
However, Zurich argues that the policy it set up for Sony does not cover the part of the business that suffered the breach or the sort of damage the theft caused.
Specific clauses in the policy also rule out Zurich providing cover, it said.
Sony declined to comment because the matter is the subject of pending litigation.
In financial statements, Sony said it expected costs for the breach to top 14bn yen (£109m) this year. The figure does not include any costs for compensating customers.

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Mohamed Bin Hammam expects Fifa to find him guilty

Suspended former Fifa presidential candidate Mohamed bin Hammam believes he is likely to be found guilty of bribery allegations.

Fifa's ethics committee has begun a two-day hearing to rule on claims the Qatari tried to bribe Caribbean delegates to vote for him as president.
"It seems likely that Fifa has already made its decision weeks ago," he wrote in a blog.
"None of us should be surprised if a guilty verdict is returned."
Bin Hammam, 62, pulled out of the presidential race in the wake of the allegations and was provisionally suspended on 29 May.
He continued: "I want you all to know that my legal team and I remain confident that the case and the evidence presented against me are weak and unsubstantiated. They are flimsy and will not stand up to scrutiny in any court of law; that has been clear throughout this process and it remains to be so.
"If we believe earlier press statements made by or on behalf of different Fifa officials or those working for them, then despite the weakness of the case against me, I am not confident that the hearing will be conducted in the manner any of us would like.

"Following the events since my suspension, it now seems impossible for them to say that they were wrong, although I wish they would have the courage to correct their mistake.
"Rest assured, though, that justice will eventually prevail whether through the Fifa ethics committee, the Court of Arbitration of Sport or, if necessary, through other courts or legal proceedings in courts where we will be equal and no special privileges will be granted to either party."
Bin Hammam and former Fifa vice-president Jack Warner were suspended when a leaked report revealed four Caribbean Football Union associations were either offered money, or saw the offence occur, during a meeting in May.
It is alleged bribes of US$40,000 were paid or offered to each of the 25 associations who attended the meeting.
Fifa's ethics committee's preliminary report into the case was reported to have found "comprehensive, convincing and overwhelming" evidence against both Warner and Bin Hammam.
Bin Hammam's withdrawal from the presidential race allowed incumbent Sepp Blatter to be returned unopposed as head of football's governing body.

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Phone hacking: PM says James Murdoch has 'questions to answer'

David Cameron says James Murdoch "clearly" needs to answer questions from MPs after his evidence on phone hacking was challenged.

Labour's Tom Watson wants a police probe after the evidence was disputed by two ex-News of the World executives.
The News International chairman had said he was not "aware" of an email suggesting hacking went wider than a "rogue" reporter at the firm's paper.
But ex-NoW editor Colin Myler and legal manager Tom Crone said they told him.
In a statement later, Mr Murdoch, said: "I stand by my testimony to the select committee."
Mr Murdoch appeared before MPs on Tuesday alongside his father Rupert Murdoch, chairman of NI's parent company News Corporation.
Following Thursday's statement by Mr Myler and Mr Crone, committee chairman John Whittingdale said Mr Murdoch had agreed to write to the committee on various points he had been unable to address at the hearing.
He said: "I'm sure if the statement suggests there's conflict between what Colin Myler is saying and what he said, we will ask him to answer that as well."
Speaking during a visit in Warwickshire, the prime minister said: "Clearly James Murdoch has got questions to answer in Parliament and I'm sure he will do that.
"And clearly News International has got some big issues to deal with and a mess to clear up, that has to be done by the management of that company."
Labour leader Ed Miliband said: "People will want to look at the comments that were made and want to resolve the different versions of events that we've seen.

In April 2008, James Murdoch authorised the payment of an out-of-court settlement of more than £600,000 to Gordon Taylor, chief executive of the Professional Footballers' Association, over the hacking of his phone.
Mr Watson said he was going to formally bring the matter of James Murdoch's disputed evidence to the attention of Deputy Assistant Commissioner Sue Akers, who is leading Operation Weeting, the investigation into phone hacking.
The Metropolitan Police later confirmed Mr Watson's request for an investigation into the disputed evidence "was being considered".
The West Bromwich MP told the BBC: "This is the most significant moment of two years of investigation into phone hacking.
"If [Colin Myler and Tom Crone's] statement is accurate it shows James Murdoch had knowledge that others were involved in hacking as early as 2008, it shows he failed to act to discipline staff or initiate an internal investigation, which undermines Rupert Murdoch's evidence to our committee that the company had a zero tolerance to wrongdoing."
The MP added: "More importantly, it shows he not only failed to report a crime to the police but because there was a confidentiality clause involved in the settlement it means that he bought the silence of Gordon Taylor and that could mean he is facing investigation for perverting the course of justice."
He said: "There is only going to be one person who is accurate. Either James Murdoch, who to be fair to him is standing by his version of events, or Colin Myler and Tom Crone."
'Proper governance' In 2007, the News of the World's royal editor Clive Goodman and private investigator Glenn Mulcaire were jailed for hacking. But the email in question was marked "for Neville" and Mr Watson's line of questioning was believed to be an attempt to see whether it implied that the News of the World's chief reporter Neville Thurlbeck also knew about such practices.
At the committee hearing on Tuesday, Mr Watson asked Mr Murdoch: "When you signed off the Taylor payment, did you see or were you made aware of the full Neville email, the transcript of the hacked voicemail messages?"
Mr Murdoch replied: "No, I was not aware of that at the time."
He went on: "There was every reason to settle the case, given the likelihood of losing the case and given the damages - we had received counsel - that would be levied."
In their statement issued on Thursday Mr Myler and Crone said: "Just by way of clarification relating to Tuesday's CMS select committee hearing, we would like to point out that James Murdoch's recollection of what he was told when agreeing to settle the Gordon Taylor litigation was mistaken.
"In fact, we did inform him of the 'for Neville' email which had been produced to us by Gordon Taylor's lawyers."
In another development, Labour MP Chris Bryant, who is suing over allegations his phone was hacked, has called for James and Rupert Murdoch to be suspended by News Corp's board.
In a letter to the non-executive directors of the firm, he said Rupert Murdoch's refusal to accept responsibility for what happened at the News of the World "would suggest that there is no proper corporate governance within the company".
Meanwhile, Deputy Prime Minister Nick Clegg has confirmed he did raise questions about Mr Cameron's decision to bring ex-NoW editor Andy Coulson into No 10 as his director of communications.
He told the BBC: "But as Cameron has said himself, it was his decision and he said, 'I have received the assurances I sought' and on that basis I want to give Andy Coulson a second chance and that's his decision."
The BBC has also learned the FBI plans to contact actor Jude Law following claims his mobile phone was hacked during a visit to the US. News International denies the claims.

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Deadly heatwave settles across US and Canada

One New Yorker says being outside is like "sitting in a sauna all day long"

A punishing heatwave has settled over central and eastern parts of the US and Canada, pushing temperatures as high as 37C (99F) and causing up to 22 deaths.

The US weather service warned of "dangerous" levels of heat and humidity creeping east on Friday, with no relief in eastern states until Sunday.
As much as 50% of the US population was under a heat advisory, officials said.
Meteorologists have put the temperatures down to a "dome" of high pressure in the atmosphere.
Many regions in the central US and parts of the eastern seaboard have seen heat indexes - a combination of temperature and humidity - topping 43C.
Air sinks The blistering heat has also hit parts of Canada, with temperatures in Toronto expected to top 35C on Friday, according to Environment Canada.

Is there any chance of a drop in temperatures in the coming days?

At 38C (101F), Syracuse in New York State has already witnessed its hottest day since 1936, forecasters say.
"This is an exceptionally strong ridge of high pressure that really has an exceptional scope and duration," Eli Jacks, a meteorologist with the National Weather Service, told the BBC.
"The air is sinking, as it sinks it compresses and gets warmer. It also dries out, so few clouds form to block the high early-summer sun," he said.
The combination of high heat and high humidity make it hard for the human body to cool itself - because sweat does not evaporate efficiently, he added.
Across the central and eastern US, people and animals alike have been struggling to keep cool amid the oppressive heat and humidity.
As the heat peaks in major population centres on the east coast, the number of deaths is expected to rise, officials warn.
Officials in the central state of Missouri say 13 people have died, and there have been fatalities in neighbouring Oklahoma, including a three-year-old boy.

In the town of Hutchinson in Kansas three elderly people were found dead in separate homes.

In Minnesota - a northern state known for its frigid winters - farm livestock have been dying from heat stress at a rate not seen in three decades, the Minneapolis Star Tribune newspaper reported. Turkeys have been hit especially hard, the paper reported.
In South Dakota, as many as 1,500 head of cattle have died in the heat, state veterinarian Dustin Oedekoven told Reuters news agency.
More than three-quarters of Texas is suffering from drought amid the worst dry spell in the state for decades.
Urban areas have opened cooling centres for the poor and elderly, and the National Weather Service has warned people in normally cool areas to be especially cautious.
Seattle shivers Philadelphia has deployed police officers to manage hot, irritated crowds at the city's public swimming pools.

 

Across the US, people found ways to keep cool - like standing in front of a mist spray

Electricity company Con Edison said scattered power cuts were likely in New York in the next several days amid a surge in usage of air conditioning units.
The city's fire chiefs have hired additional crews and officials have placed mobile fountains around the city to allow people to refill water bottles.
In Nashville, Tennessee, hospital staff have reported several cases of heat exhaustion and heat stroke.
Chicago is experiencing unhealthy smog levels caused by the heat. The Illinois Environmental Protection Agency asked the city's residents to reduce polluting activities, such as mowing lawns and keeping the engines running on stationary vehicles.
Forecasters said the damage caused by the heat could be worse that that brought about by a heatwave in Chicago in 1995, when more than 700 people died over three days.
Asphalt and concrete pavements and buildings in cities were "re-radiating" the heat, forecasters say.
By Friday, the high pressure system moving east is expected to bring thunderstorms with hail to the north-eastern US.
Meanwhile, as half of the country's 310 million residents sizzle, states in the north-western region of the country were experiencing abnormally cool temperatures.
"I didn't know it could be this cold in July. It is absolutely freezing here in Seattle," said one user on Twitter.
During the past month, Seattle has only experienced three days with temperatures hitting the 27C (80F) mark, with most days falling in the (mid-60s, according to the city's Sea-Tac Airport measuring station.
High temperatures - the number one weather-related killer in the US - claim 162 lives on average in the country each year.
The most severe heatwave in modern North American history took place during the Great Depression in 1936. The heat that summer was blamed for more than 5,000 deaths in the US and Canada.

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Greece aid package boosts stock markets

Shares have risen following the eurozone's agreement designed to resolve the Greek debt crisis.

UK and French markets gained more than 1% in morning trading, before slipping slightly, while Japan's Nikkei closed up 1.2%. US stocks opened flat.
Eurozone leaders agreed a new package worth 109bn euros ($155bn, £96.3bn).
Private lenders will also be asked to contribute and, as a result, the Fitch ratings agency said it would consider Greece in "restricted default".
'Unthinkable'
German Chancellor Angela Merkel hailed the accord and said it was her country's duty to support the single European currency.
"It is our historical duty to support the euro," Mrs Merkel said.
"The euro is good for us, the euro is part of Germany's economic success, and a Europe without the euro is unthinkable."

Relief at the deal offset any concerns about banks losing out as a result the planned debt restructuring.

Banking shares continued to rise after Thursday's sharp gains, with France's Credit Agricole and the UK's Royal Bank of Scotland and Barclays all up more than 3%.
"The deal removes one of the concerns related to the overall market... and EU finance ministers understand the risk associated with a possible default and that they're willing to step up and support weaker countries," said Robert Pavlik, a strategist at Banyan Partners in Florida.
Bond yields, which reflect the risk investors attach to government debt, fell across the eurozone, particularly those in Greece and Portugal.
Eurozone leaders hailed the comprehensive agreement.
Greece's Finance Minister Evangelos Venizelos said the deal would provide "great relief for the Greek economy".
Package measures The eurozone agreement is a comprehensive package designed not only to resolve Greece's debt crisis but to prevent contagion to other European economies, thereby shoring up the euro in the process.

Many people feel there are even tougher times ahead

The package includes:

• 109bn euros in new loans to Greece
• Various options to extend Greece's repayment terms and reduce the amount it repays on existing loans
• Voluntary private sector participation in these options, so that banks share taxpayers' burden
• Doubling the length of repayment terms for the Irish Republic and Portugal, both of which have received financial assistance previously
• Additional powers granted to the European Financial Stability Facility to buy up bonds and to make credit available to countries such as Spain and Italy that are not at immediate risk of insolvency.

The Institute of International Finance (IIF) - a global trade body representing big banks and other major lenders - said the planned debt restructuring would target participation by 90% of Greece's private sector lenders.

Source: Eurostat. Government debt expressed as a percentage of economic output.

French President Nicolas Sarkozy said private lenders would contribute a total of 135bn euros of financing to Greece.

This is expected to provide some 50bn euros of debt relief to Greece.
Three of the four options offered to lenders to swap or relend existing debts would extend Greece's repayment terms by 30 years, while the fourth would do so by 15 years.
They all offer a much lower interest rate than Greece's current 15%-25% cost of borrowing in financial markets.
Two of the options would also involve "haircuts" - reducing the amount of debt Greece has to repay.
The terms of the deal imply a loss to Greece's lenders equivalent to 21% of the market value of their debts, said the IIF.
But because the contributions are "expressly voluntary", the International Swaps and Derivatives Association said that the deal should not trigger payments on default-swaps designed to protect against a default.
'Right signal' Fitch ratings agency said it would consider Greece to have defaulted on its debts once old bonds had been swapped for new bonds.
Although the agency welcomed the agreement as a positive step, it said it would have no choice but to declare a default once the swap had been made.
"An exchange that offers new securities with terms that are worse than the original contractual terms of the existing debt, and where the sovereign is subject to financial distress, constitutes a default event under Fitch's [ratings criteria]," the firm said in a statement.
Other ratings agencies have previously threatened to declare a default in the event of a debt restructuring.
Observers suggest they are under considerable political pressure not to do so, as if they do it could severely undermine confidence in both the eurozone economy and its banks.

Herman Van Rompuy: "This situation was... threatening the stability of the eurozone"

The ECB and France had been particularly opposed to a restructuring and involving the private sector, but it was ultimately insisted on by Germany.
Mr Sarkozy played down the significance of the banks' participation in the aid package.
"If the rating agencies are using the word you just used (default), it is not part of my vocabulary. Greece will pay its debt," he told reporters.
European Commission President Jose Manuel Barroso indicated plans to rein in the power of the agencies.
"We... endorsed the plan of reducing over reliance on external credit ratings," he said, adding that policymakers would come forward in the autumn "with further proposals".

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