First observations of AGN with XMM-Newton

We describe the first results from XMM-Newton observations of two AGN observed during the Cal/PV phase of the mission: PKS 0558-504 and Mkn 766. Both objects show strong spectral variability. In PKS 0558-504 the variability amplitude and time scale implies accretion efficiencies ill excess of that possible for a Schwarzschild black hole. The X-ray spectrum of this object can be explained by Comptonization of a thermal accretion disk running at a high accretion rate. In Mkn 766, a periodic signal is detected in the soft X-ray band using data from both the EPIC and RGS instruments. The signal thus appears to be intrinsic and corresponds to a period of 4200 seconds.