Bratton on "chilling" memento ex-LAPD cop sent to network

(CBS News) More than a dozen local, state, and federal authorities have joined the three-state manhunt for Christopher Dorner, the ex-LAPD officer suspected of killing three people in a vendetta against the police force.

Thursday afternoon, the search shifted to the snowy mountains around Big Bear Lake, about 80 miles east of Los Angeles, where police found his burned-out pickup truck and tracks leading away from the vehicle.

Bill Bratton, Los Angeles Police Chief while Dorner served on the force said Friday that the truck was "possibly a diversionary tactic to just draw people up into that area when he's actually heading south."

Bratton said that despite the increasingly complex search, "the LAPD is superbly equipped for" the hunt.

"The Southern California police community is incredibly well networked with each other," Bratton said. "The manhunt that is underway is coordinated, sophisticated, and very complicated."

This undated photo released by the Los Angeles Police Department shows suspect Christopher Dorner, a former Los Angeles officer with former Police Chief William Bratton.

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AP Photo/Los Angeles Police Department

Bratton does not remember Dorner personally but did pose for a photo with him before he was deployed to serve in the Navy. Referencing the photo, Bratton said "chances are this is when he was being deployed into the military. I bring them up into my office and wish them well ... and give them a good luck charm."

The good luck charm -- a ceremonial coin -- was one of the props Dorner used, along with a lengthy manifesto, to indicate his targets. Dorner mailed CNN a package and the manifesto referencing Bratton. The package included the ceremonial coin, with Bratton's name on it and three bullet holes in it.

"[It's] very chilling when you see that," Bratton said. "It's a custom that you give as a sign of respect, a good luck charm for those who are going overseas. When you see that that a coin that was given in friendship and respect has three bullet holes, it's certainly very chilling."

Turning to the tactical elements of Dorner's rampage, John Miller -- CBS News senior correspondent and former head of the LAPD Major Crimes Division -- said the attacks likely took a "remarkable amount of pre-staging" and added that "somebody who put that much pre-staging planning into a series of events ... it's doubtful that they didn't put the same amount of planning into the end game ... It makes you wonder what his plan is for the end game."

Bratton said he found it "very surprising that now with all this attention he has brought onto himself, he has not started to reach out to the media to exploit it ... it's very interesting that he has stayed quiet."

Miller explained that Dorner "cut off all his cell phones and other connections" on Jan. 31 and Bratton said, "he's aware that anything he uses electronically can be immediately zeroed in on so he's possibly staying quiet because of that understanding.

As they look to bring the manhunt to an end, "the police are certainly on edge," Bratton said, emphasizing that Dorner is "an incredibly dangerous individual."

Miller added, "He has brought this to a certain pinnacle. It seems like he is going to be moving towards however he wants this to wrap up.

For more with Bratton and Miller on "CTM," watch the video above.

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Monster Blizzard Takes Aim at Northeast

A blizzard of possibly historic proportions is set to strike the Northeast, starting today and bringing up to 2 feet of snow and strong winds that could shut down densely populated cities such as Boston and New York City.

A storm from the west will join forces with one from the south to form a nor'easter that will sit and spin just off the East Coast, affecting more than 43 million Americans. Wind gusts will reach 50 to 60 mph from Philadelphia to Boston.

"[It] could definitely be a historic winter storm for the Northeast," Adrienne Leptich of the National Weather Service in Upton, N.Y., said. "We're looking at very strong wind and heavy snow and we're also looking for some coastal flooding."

The snow began falling in New York City shortly before 7 a.m. ET. The snow is expected to mix with some sleet and then turn back into snow after 3 p.m.

New York City is expecting up to 14 inches, which is expected to start this morning with the heaviest amounts falling at night and into Saturday. Wind gusts of 55 mph are expected in New York City and Cape Cod, Mass., could possibly see 75 mph gusts.

Boston, Providence, R.I., Hartford, Conn., and other New England cities canceled school today. Boston and other parts of New England could see more than 2 feet of snow by Saturday.

Weather Forecast: Northeast Braces for Monster Blizzard Watch Video

Winter Storm to Hit Northeast With Winds and Snow Watch Video

Beach erosion and coastal flooding is possible from New Jersey to Long Island, N.Y., and into New England coastal areas. Some waves off the coast could reach more than 20 feet.

"Stay off the streets of our city. Basically, stay home," Boston Mayor Tom Menino warned Thursday.

Blizzard warnings were posted for parts of New Jersey and New York's Long Island, as well as portions of Massachusetts, Rhode Island and Connecticut, including Hartford, New Haven, Conn., and Providence. The warnings extended into New Hampshire and Maine.

To the south, Philadelphia was looking at a possible 4 to 6 inches of snow.

Thousands of flights have already been canceled in anticipation of the storm. Amtrak said its Northeast trains will stop running this afternoon.

Bruce Sullivan of the National Weather Service says travel conditions will deteriorate fairly rapidly Friday night.

"The real concern here is there's going to be a lot of strong winds with this system and it's going to cause considerable blowing and drifting of snow," he said.

Parts of New York, still reeling from October's Superstorm Sandy, are still using tents and are worried how they will deal with the nor'easter.

"Hopefully, we can supply them with enough hot food to get them through before the storm starts," Staten Island hub coordinator Donna Graziano said.

New York City Mayor Michael Bloomberg said plows and 250,000 tons of salt were being put on standby.

"We hope forecasts are exaggerating the amount of snow, but you never can tell," Bloomberg said Thursday.

Residents of the Northeast have already begun to hit stores for groceries and tools to fight the mounting snow totals.

The fire department was called in to a grocery store in Salem, Mass., because there were too many people in the store Thursday afternoon trying to load up their carts with essential items.

"I'm going to try this roof melt stuff for the first time," Ian Watson of Belmont, Mass., said. "Just to prevent the ice dam. ... It's going be ugly on that roof."

ABC News' Max Golembo and The Associated Press contributed to this report.

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Khamenei rebuffs U.S. offer of direct talks

DUBAI (Reuters) - Iran's highest authority, Ayatollah Ali Khamenei, on Thursday slapped down an offer of direct talks made by U.S. Vice President Joe Biden this week, saying they would not solve the problem between them.

"Some naive people like the idea of negotiating with America, however, negotiations will not solve the problem," Khamenei said in a speech to officials and members of Iran's air force carried on his official website.

"If some people want American rule to be established again in Iran, the nation will rise up to face them," he said.

"American policy in the Middle East has been destroyed and Americans now need to play a new card. That card is dragging Iran into negotiations."

Khamenei made his comments just days after Joe Biden said the United States was prepared to meet bilaterally with the Iranian leadership. "That offer stands but it must be real and tangible," Biden said in a speech in Munich.

With traditional fiery rhetoric, Khamenei lambasted Biden's offer, saying that since the 1979 revolution the United States had gravely insulted Iran and continued to do so with its threat of military action.

"You take up arms against the nation of Iran and say: 'negotiate or we fire'. But you should know that pressure and negotiations are not compatible and our nation will not be intimidated by these actions," he added.

Relations between Iran and the United States were severed in 1979 after the overthrow of Iran's pro-western monarchy and diplomatic meetings between officials have since been very rare.

ALL OPTIONS STILL "ON THE TABLE"

Currently U.S.-Iran contact is limited to talks between Tehran and a so-called P5+1 group of powers on Iran's disputed nuclear program which are to resume on February 26 in Kazakhstan.

Israel's Deputy Prime Minister Dan Meridor said he was skeptical the negotiations in Almaty could yield a result, telling Israel Radio that the United States needed to demonstrate to Iran that "all options were still on the table".

Israel, widely recognized to be the only nuclear power in the Middle East, has warned it could mount a pre-emptive strike on Iranian atomic sites. Israel sees its existence as directly threatened by the prospect of an nuclear-armed Iran, given Tehran's refusal to recognize the existence of the Jewish state.

"The final option, this is the phrasing we have used, should remain in place and be serious," said Meridor.

"The fact that the Iranians have not yet come down from the path they are on means that talks ...are liable to bring about only a stalling for time," he said.

Iran maintains its nuclear program is entirely peaceful but Western powers are concerned it is intent on developing a weapons program.

Many believe a deal on settling the nuclear issue is impossible without a U.S.-Iranian thaw. But any rapprochement would require direct talks addressing many sources of mutual mistrust that have lingered since Iran's 1979 Islamic Revolution and the subsequent U.S. embassy hostage crisis in Tehran.

Moreover, although his re-election last November may give President Barack Obama a freer hand to pursue direct negotiations, analysts say Iran's own presidential election in June may prove an additional obstacle to progress being made.

(Additional reporting by Dan Williams; Editing by William Maclean and Jon Boyle)

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Possible SIA revamp on the cards

SINGAPORE: As the aviation industry continues to be plagued by rising fuel costs and weakness in the global economy, Singapore Airlines has seen its profits being squeezed as more travellers turn to cheaper alternatives.

The airline, which is Asia's second largest by market capitalisation, cautioned on Thursday that loads and yields for its passenger and cargo businesses are expected to remain under pressure.

In an effort to further slash costs, SIA has also recently reduced its cockpit crew.

Competition from gulf carriers and budget airlines has significantly affected the profits of legacy carriers. With costs of jet fuel set to rise even further, analysts say it is imperative for legacy carriers such as SIA to revamp itself, either with new product offerings or new destinations.

"SIA has always done exceptionally well with its offering of premium products... But perhaps it's time for them to re-look the premium economy segment... which is an area where many other competitors are looking at," said Shukor Yusof, an aviation analyst with Standard & Poor's.

"If they were to come up with something that would entice passengers that are currently flying low cost carriers and if they can manage the fares in a way that would attract large numbers on board, then it would work," he said.

Besides SilkAir, SIA has also started its long-haul low-cost offshoot Scoot, in an attempt to glean some profits from the low cost carrier segment.

However some believe SIA should continue to pump money to protect its premium seats segment.

"Their premium sector is what holds them up. They've high yielding passengers and if they try to reduce that, they will lose them to other premium carriers like Cathay, Qantas, (or) Emirates," said Shashank Nigam, CEO of Simpliflying.

"Singapore airlines, while they're part of Star Alliance, they're not very close to their members so certainly after having sold (their) Virgin Atlantic stake, they should be looking at other partnerships to enhance passenger experience," he added.

Besides teaming up with Emirates, competitor Qantas has also announced its intention to form stronger links to the key hubs of Singapore and Hong Kong, paving the way for more head-on competition with SIA.

Analysts say some of these enhancements should include more technology updates to appeal to the well-connected traveller.

- CNA/jc

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Tablet Thursday: Get a Motorola Xoom 2 + 4G LTE for $219 shipped

The Motorola Xoom 2, aka Droid Xyboard, comes in your choice of 8.2" or 10.1", both with Verizon-powered 4G LTE.

(Credit:
Daily Steals)

So here's something I didn't know: When Motorola released the inevitable successor to its popular Xoom tablet, it was called the Xoom 2 -- in Europe. Here in the states, Motorola decided to call it the Droid Xyboard.

Droid Xyboard. I'll let that sink in for a moment. That may not rank among the dumbest tech-product names of all time, but it's up there.

How about we just agree to call it the Xoom 2 and get on with our lives, 'kay? Good. Today only, and while supplies last, Daily Steals has the refurbished Motorola Xoom 2 + 4G LTE tablet for $219 shipped. And here's where it really gets interesting: You get to choose between 8.2- and 10.1-inch screens.

Zuh? Yep, the Xoom 2 comes in two sizes. Why Daily Steals has them priced the same, I have no idea. But as much as a 4G-capable 10.1-inch
tablet for $219 rocks, I can see the appeal of choosing the smaller model. It's a little lighter, a little more compact, a little easier to wield one-handed.

In any case, both Xoom 2s net you a 1.2GHz processor, 16GB of expandable storage, dual cameras, Bluetooth, and the option of sweet, sweet 4G LTE from Verizon. (Note I said "option": You don't have to activate service, nor do you need to sign up for a contract if you do.) I think that gives the Xoom 2 a big leg up on competing tablets, few of which even offer 4G, and definitely not at this price point.

I've not used a Xoom 2 myself, but CNET said it "feels like an amalgamation of all our favorite
Android tablets of 2011." (It debuted in late 2011, so it's just over a year old.) Although it ships with Android 3.2 (Honeycomb), you can easily upgrade it to Android 4.0 (Ice Cream Sandwich).

Because it's a refurb, you get only a 90-day warranty. And because it's sold by Daily Steals, it could take a couple weeks to arrive on your doorstep. (This is par for the course; don't order this if you're in a hurry.)

Those nits aside, this is one of the better deals I've seen on a big (or bigger) 4G-capable tablet. Might be worth a look!

Bonus deal: The Cortex Camera app for iOS helps you snap better low-light photos. It normally sells for $2.99, but for a limited time, you can get Cortex Camera for free. Said CNET's Matt Elliott: "In my experience, I found that Cortex Camera greatly reduced noise in low-light conditions." Sold!

Bonus deal No. 2: I haven't forgotten you, Android users: Today only, the Amazon Appstore has Mobiata's FlightBoard for Android absolutely free. Regular price: $3.99. It's a top-rated real-time flight tracker -- and a very cool one, IMHO.

Deals found on The Cheapskate are subject to availability, expiration, and other terms determined by sellers.

Curious about what exactly The Cheapskate does and how it works? Read our FAQ.

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Winter nor'easter sweeping into Northeast

A major snowstorm is passing through the Great Lakes Thursday morning, and by Friday night could make travel nearly impossible in parts of the Northeast.

CBS News weather consultant David Bernard says there is a potential for historic snows and blizzard conditions across the Northeast, with as much as 2 feet of snow in some areas.

The National Weather Service says this nor'easter-type storm system will bring strong winds and heavy snow to the region, with eastern New England experiencing the greatest effects. A blizzard watch was issued for Boston and surrounding areas, including Rhode Island, and has now been extended to the eastern end of Long Island and most of Connecticut.

A coastal flooding watch also is in effect for some shore communities in Massachusetts, Connecticut and Long Island.

Beginning late Thursday most of the Northeast will be under a winter storm watch. The snow will start Friday morning, with the heaviest amounts dumped going into Saturday as the storm moves past New England and upstate New York, the weather service said.

Bernard says the storm system - an area of low pressure over the Carolinas - is going to rapidly move to the Northeast during the day Friday; by Friday evening it may start as rain along the coast, but inland areas will get snow.

Late Friday night into Saturday morning, Bernard said, it should be all snow across the Northeast and New England. He said up to 2 feet of snow is not out of the question.

"This has the potential for being a dangerous storm, especially for Massachusetts into northeast Connecticut and up into Maine," said Louis Uccellini, director of the weather agency's National Centers for Environmental Prediction.

The storm would hit just after the 35th anniversary of the historic blizzard of 1978, which paralyzed the region with more than 2 feet of snow and hurricane force winds.

In New York City Friday's rain will turn to snow, with the potential of 6, maybe 12 inches of snow, Bernard said.

Assuming the snow clears out by the weekend with no major problems, ski areas in Massachusetts were excited by the prospect of the first major snowstorm they've seen since October 2011.

Tom Meyers, marketing director for Wachusett Mountain Ski Area in Princeton, Mass., said that at an annual conference of the National Ski Areas Association in Vermont this week, many participants were "buzzing" about the storm. He said the snow will arrive at an especially opportune time — a week before many schools in Massachusetts have February vacation.

"It is perfect timing because it will just remind everybody that it is winter, it's real, and get out and enjoy it," Meyers said.

"We'll be here with bells on," said Christopher Kitchin, inside operations manager at Nashoba Valley Ski Area in Westford, Mass. "People are getting excited. They want to get out in the snow and go snow-tubing, skiing and snowboarding."

At Mount Snow in Vermont, spokesman Dave Meeker said the true value of the storm will be driving traffic from southern New England northward.

"It's great when we get snow, but it's a tremendous help when down-country gets snow," he said. "When they have snow in their backyards, they're inspired."

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Ex-LA Cop Sought in Shootings of 3 Cops, 2 Slayings

Police in Southern California say they suspect that a fired cop is connected to the shootings -- one fatal -- of three police officers this morning, as well as the weekend slayings of an assistant women's college basketball coach and her fiancé in what cops believe are acts of revenge against the LAPD, as suggested in the suspect's online manifesto.

Former police officer Christopher Jordan Dorner, 33, who's a U.S. Navy reservist, has been publically named as a suspect in the killings of Monica Quan, 28, and her 27-year-old fiancé, Keith Lawrence, Irvine police Chief David L. Maggard said at a news conference Wednesday night.

"We are considering him armed and dangerous," Lt. Julia Engen of the Irvine Police Department said.

Police say Dorner shot at four officers in two incidents overnight, hitting three of them: one in Corona, Calif., and two in Riverside, Calif.

Sgt. Rudy Lopez of the LAPD said two LAPD officers were in Corona, and were heading out on special detail to check on one of the individuals named in Dorner's manifesto. Dorner allegedly grazed one of them but missed the other.

The Riverside Police Department said two of its officers were shot before one of them died, KABC-TV reported. The extent of the other's injuries is unclear.

Police suspected a connection to Dorner.

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"They were on routine patrol stopped at a stop light when they were ambushed," Lt. Guy Toussant of the Riverside police department said.

Police around Southern California are wearing tactical gear, including helmets and guns across their chests. The light-up signs along California highways show the license plate number of Dorner's car, and say to call 911 if it is seen. The problem, police say, is that they believe Dorner is switching license plates on his car, a 2005 charcoal gray Nissan Titan pickup truck.

Lawrence was found slumped behind the wheel of his white Kia in the parking lot of their upscale apartment complex in Irvine Sunday and Quan was in the passenger seat.

"A particular interest at this point in the investigation is a multi-page manifesto in which the suspect has implicated himself in the slayings," Maggard said.

Police said Dorner's manifesto included threats against members of the LAPD. Police say they are taking extra measures to ensure the safety of officers and their families.

The document, allegedly posted on an Internet message board this week, apparently blames Quan's father, retired LAPD Capt. Randy Quan, for his firing from the department.

"Your lack of ethics and conspiring to wrong a just individual are over," he allegedly wrote.

One passage from the manifesto reads, "I will bring unconventional and asymmetrical warfare to those in LAPD uniform whether on or off duty."

"I never had the opportunity to have a family of my own," it reads. "I'm terminating yours."

Dorner was with the department from 2005 until 2008, when he was fired for making false statements.

Randy Quan, who became a lawyer in retirement, represented Dorner in front of the Board of Rights, a tribunal that ruled against Dorner at the time of his dismissal, LAPD Capt. William Hayes told The Associated Press Wednesday night.

According to documents from a court of appeals hearing in October 2011, Dorner was fired from the LAPD after he made a complaint against his field-training officer, Sgt. Teresa Evans, saying in the course of an arrest she had kicked a suspect who was a schizophrenic with severe dementia.

After an investigation, Dorner was fired for making false statements.

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Tunisia protests after government critic shot dead

TUNIS (Reuters) - A Tunisian opposition politician was shot dead on Wednesday, sending protesters onto the streets of cities nationwide two years after the uprisings that swept Tunisia's president from power and inflamed the Arab world.

The headquarters of the moderate Islamist Ennahda party, which rules in a fractious coalition with secularists, was set ablaze after Chokri Belaid, an outspoken critic of the government, was gunned down outside his home in the capital.

Prime Minister Hamadi Jebali, who said the identity of the attacker was not known, condemned Belaid's killing as a political assassination and a strike against the "Arab Spring" revolution. Ennahda denied any involvement by the part.

Despite calls for calm from the president, 8,000 protesters, massed outside the Interior Ministry, calling for the fall of the government, and thousands more demonstrated in cities including Mahdia, Sousse, Monastir and Sidi Bouzid, the cradle of the revolution, where police fired teargas and warning shots.

"This is a black day in the history of modern Tunisia ... Today we say to the Islamists, 'get out' ... enough is enough," said Souad, a 40-year-old teacher outside the Interior Ministry in Tunis. "Tunisia will sink in the blood if you stay in power."

The small North African state was the first Arab country to oust its leader and hold free elections as uprisings spread around the region, leading to the ousting of the rulers of Egypt, Yemen and Libya and to the civil war in Syria.

But like in Egypt, many who campaigned for freedom from repression under autocratic rulers and better prospects for their future now feel their revolutions have been hijacked by Islamists they accuse of clamping down on personal freedoms, with no sign of new jobs or improvements in infrastructure.

HARDSHIP

Since the uprising, the government has faced a string of protests over economic hardship and Tunisia's future path, with many complaining hardline Salafists were taking over the revolution in the former French colony dominated previously by a secular elite under the dictatorship of Zine al-Abidine Ben Ali.

Last year, Salafist groups prevented several concerts and plays from taking place in Tunisian cities, saying they violated Islamic principles, worrying the secular-minded among the 11 million Tunisians, who fear freedom of expression is in danger.

Declining trade with the crisis-hit euro zone has also left Tunisians struggling to achieve the better living standards many had hoped for following Ben Ali's departure. Any further signs of unrest could scare off tourists vital to an industry only just recovering from the revolution.

"More than 4,000 are protesting now, burning tires and throwing stones at the police," Mehdi Horchani, a Sidi Bouzid resident, told Reuters. "There is great anger."

Jobless graduate Mohamed Bouazizi set himself on fire in December 2010 in the city, 300 km (180 miles) southwest of Tunis, after police confiscated his unlicensed fruit cart, triggering the "Jasmine Revolution" that forced Ben Ali to flee to Saudi Arabia less than a month later, on January 14, 2011.

President Moncef Marzouki, who last month warned the tension between secularists and Islamists might lead to "civil war", canceled a visit to Egypt scheduled for Thursday and cut short a trip to France, where he addressed the European Parliament.

"We will continue to fight the enemies of the revolution," the secularist leader told European Union lawmakers in Strasbourg.

Belaid, who died in hospital, was a leading member of the opposition Popular Front party. A lawyer and human rights activist, he had been a constant critic of the government, accusing it of being a puppet of the rulers in the small but wealthy Gulf state of Qatar, which Tunisia denies.

"Chokri Belaid was killed today by four bullets to the head and chest," Ziad Lakhader, a leader of the Popular Front, told Reuters. "Doctors told us that he has died. This is a sad day for Tunisia."

DENIES INVOLVEMENT

Ennahda Prime Minister Jebali said the killers wanted to "silence his voice".

"The murder of Belaid is a political assassination and the assassination of the Tunisian revolution," he said.

Party President Rached Ghannouchi denied any involvement in the killing. Belaid said earlier this week that dozens of people close to the government attacked a meeting of his party.

"Is it possible that the ruling party could carry out this assassination when it would disrupt investment and tourism?" Ghannouchi told Reuters.

He blamed those seeking to derail Tunisia's democratic transition after a 2011 uprising. "Tunisia today is in the biggest political stalemate since the revolution. We should be quiet and not fall into a spiral of violence. We need unity more than ever," Ghannouchi said.

He accused secular opponents of stirring up sentiment against his party following Belaid's death. "The result is burning and attacking the headquarters of our party in many areas," he said.

French President Francois Hollande condemned the shooting, saying he was concerned by the rise of violence in Paris's former dominion, where the government says al Qaeda-linked militants linked to those in neighboring countries have been accumulating weapons with the aim of creating an Islamic state.

"This murder deprives Tunisia of one of its most courageous and free voices," Hollande's office said in a statement.

Riccardo Fabiani, Eurasia analyst on Tunisia, described it as a "major failure for Tunisian politics".

"The question is now what is Ennahda going to do and what are its allies going to do?" he said. "They could be forced to withdraw from the government which would lead to a major crisis in the transition."

Marzouki warned last month that the conflict between Islamists and secularists could lead to civil war and called for a national dialogue that included all political groupings.

Ennahda won 42 percent of seats in a parliamentary election in 2011 and formed a government in coalition with two secular parties, the Congress for the Republic, to which President Marzouki belongs, and Ettakatol.

Marzouki's party threatened on Sunday to withdraw from the government unless it dropped two Islamist ministers.

(Additional reporting by John Irish in Paris; Writing by Alison Williams; Editing by Alastair Macdonald)

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Euro not currently overvalued, Germany says

BERLIN : The euro is not currently overvalued and exchange rates should not be used to try and boost competitiveness, the German government said Wednesday, rejecting French calls for ways to cap the single currency's recent rise.

"The German government is of the conviction that the euro, historically speaking, is currently not overvalued," government spokesman Steffen Seibert told a news briefing.

"What we're currently seeing is a rise in the value of the euro which is a counter-reaction to the massive depreciation in the wake of the eurozone crisis," Seibert said.

Earlier in Paris, French Finance Minister Pierre Moscovici had said an overvalued euro hurts economic growth and the issue should be discussed among eurozone finance ministers and the group of 20 leading economies.

But Berlin sees no cause for alarm.

The latest rise in the euro "shows that financial markets' confidence in the euro is returning. That's not a bad thing," government spokesman Seibert continued.

Germany believes that a currency's exchange rate should reflect its economic fundamentals "and flexible exchange rates are the best to way to achieve this," he said.

"I can only point out that both the G8 and the G20 separately agreed that it made sense for the markets to set exchange rates," the spokesman noted.

French minister Moscovici said that while the euro's recent rise was partly explained by the abatement of the eurozone crisis, the monetary policy of other countries was also to blame.

Moscovici said it is "legitimate" to discuss with European finance ministers what could be the fair value of the euro and the right way to get there.

But while Seibert acknowledged that the topic would likely be discussed, "from our point of view, exchange rate policy is not an appropriate tool to boost competitiveness.

"The effects of things like targeted devaluation tend to be rather short-term. You can't use it to achieve a lasting boost in competitiveness," Seibert said.

A day earlier, French President Francois Hollande had said the euro's value cannot not be left to the whims of the market.

Speaking to European Parliament in Strasbourg said "a single currency zone must have a foreign exchange policy otherwise it will see an exchange rate imposed on it (by the markets) which is out of line with its real competitive position."

The euro has strengthened sharply in the past few months as the eurozone appeared to have finally got the better of a debt crisis which at one stage looked likely to sink the whole project.

On Friday, the single currency hit US$1.3711, a level last seen in mid-November 2011, stoking concerns that it could begin to hurt exports, a key growth driver at a time when the overall eurozone economy is struggling badly.

For several months some emerging countries have objected that monetary policy by leading central banks, in injecting liquidity into their own economies, tends to depress their currencies and amounts to a policy of competitive devaluation.

Analysts say that the policy of the European Central Bank is showing signs of being somewhat less relaxed and this is one factor tending to push up the euro.

- AFP/ch

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YouTube mulling $50 million investment in Vevo -- report

YouTube might soon invest some cash in Vevo, according to a new report.

Google's video site could invest $50 million in Vevo, a joint venture established by Universal Music and Sony Music Entertainment, Bloomberg is reporting today, citing people who claim to have knowledge of their negotiations. In return for the $50 million, YouTube would acquire less than 10 percent of the company, indicating Vevo might be valued at over $500 million.

Perhaps more importantly for Google, the deal would also ensure that Vevo's music videos stay on YouTube, according to Bloomberg.

Rumors have been swirling for months that Vevo is looking to raise some cash, and Google might just be the company to help it do so. In May, for example, the New York Post reported that Google was looking to acquire an equity stake in Vevo on a valuation of $1 billion. It was believed at that time that Facebook might also try to acquire equity in Vevo.

The YouTube-Vevo investment rumor was rekindled last month in a report from All Things Digital. That report didn't include mention of the possible investment.

CNET has contacted YouTube for comment on the Bloomberg report. We will update this story when we have more information.

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