The European Challenge to Successful Companies

Microsoft, once again, is in the crosshairs of European antitrust regulators, but major American technology companies have to wonder whether this will stop with Microsoft.

This time, the European Union announced, it is going after Microsoft’s Office and the company’s browser-bundling strategy. The move comes on the heels of a court victory last fall for the European regulators, upholding fines and sanctions against the world’s largest software maker, in a case that began in 1998. Microsoft was ordered to share more technical information so rivals’ server software would work smoothly with Windows, and it had to offer a version of Windows without a media player for Internet music and videos. Those remedies, it seems, have had little effect on the software market.

But the ruling by the Luxembourg-based Court of First Instance, legal analysts say, has emboldened the European regulators. The browser-bundling complaint, they note, closely tracks the media player case — both software that Microsoft has included at no cost or tied to its dominant Windows desktop operating system. The Office complaint, they add, mirrors the technology-sharing issues in server software. Potential rivals in word processing and spreadsheet software, either desktop programs like Open Office or Web-based like Google Apps, will be more formidable competitors if they can seamlessly share documents with Office users.

“The European authorities feel they have the court on their side now on these issues,” said Andrew I. Gavil, a law professor at Howard University.

Slowing down Microsoft would help the company’s rivals in America, but they could also feel the bite from a broadly aggressive antitrust watchdog in Europe.

Welcoming the court victory last September, Neelie Kroes, the European Union competition commissioner, suggested a vision of antitrust policy that has to give dominant companies pause. She noted that Microsoft has 95 percent of the market for desktop operating systems and said she would like to see this shrink. “You can’t draw a line and say exactly 50 percent is correct, but a significant drop in market share is what we would like to see,” she said.

Setting ground rules for competition is one thing, but seeking to determine outcomes is another. In European antitrust, there is more a doctrine of “reining in” powerful companies than there is in the United States.

The next clue about Europe’s antitrust attitudes will be its decision on Google’s planned purchase of DoubleClick, a takeover that has already received an approving nod in Washington. It is indeed a very separate matter from the Microsoft case, but the outcome will be telling.

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Security reseacher issues warns against rogue MacSweeper

F-Secure is warning Mac users to beware of a rogue software application that is making the rounds.

The application, MacSweeper, purports to clean a user's Mac, but in reality will "always" claim to find something wrong with a user's system and seek payment to remove the unwanted file or spyware, security researcher F-Secure noted in a blog posting Tuesday.

"It's a scam...when you visit the MacSweeper Web site with a PC and click on "Scan", it will tell you that you have security vulnerabilities in folders that only exist on a Mac like system_root/home. Fake? Oh yeah," according to F-Secure.

F-Secure also points to MacSweeper's company description, which is an exact copy of the description posted on the Web site for security titan Symantec.

Users who stumble across the MacSweeper site and download and run its security scan will always find something that it claims needs to be removed, Patrik Runald, an F-Secure security response manager, said in an e-mail interview.

When users click on the "remove" button, MacSweeper will ask them to buy the product, a "lifetime" subscription for $39.99.

"Considering the nature of the product, I wouldn't recommend anyone to give away their credit card details...While you might get a keycode, there's no telling what they will use your credit card details for in the future," Runald notes.

MacSweeper marks the first time a rouge cleaning tool has been developed and targeted to Mac users, indicating the platform is gaining enough users that it is catching the attention of malicious code writers, according to F-Secure.

Others have raised questions about MacSweeper, as well, according to a forum post on Mac OSX Hints.

 

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Apple's Latest Bounty Can't Stop Selloff

Apple (AAPL - Cramer's Take - Stockpickr) announced its next charge into solidifying and expanding its computer and digital media empires, introducing a much-awaited lightweight notebook and announcing a video rental service through its popular iTunes store.

But these new additions to Apple's arsenal, announced by CEO Steve Jobs at the company's annual Macworld Conference & Expo here, couldn't offset a sell-the-news reaction amid a broader market selloff; the stock was recently down $11.83, or 6.6%, to $166.95.

The new notebook computer, Mac Air, is billed as the world's thinnest notebook, and can fit inside an envelope with its 13.3-inch widescreen display, a full size keyboard, a built-in camera, a touch feature on its keypad.

The notebook sports an Intel (INTC - Cramer's Take - Stockpickr) Core 2 Duo processor, a battery life of up to 5 hours, but no CD-DVD drive and is priced at $1799 and will start shipping in two weeks.

"This is perhaps the best notebook we have ever shipped," Apple CEO Steve Jobs told attendees during his keynote address.

Under the company's new video rental service, movies will cost $2.99 for library titles and $3.99 a movie for new releases. High-definition movie rentals will also be available through iTunes for a dollar more, said Jobs.

Users can also directly rent movies from iTunes through Apple TV. The company also knocked down the pricing of Apple TV to $229 from $299, even as existing Apple TV users will get a free software upgrade.

For movie rentals, users will have 30 days to keep a movie and a 24-hour window to finish a title they have started watching. But they can watch a movie as many times as they want during that 30-day period, said Jobs, and transfer the titles to another device in the middle, including to an iPod, iPhone, or a PC.

Apple will have 1,000 films available through iTunes by February, but, in what could be a key for video rental rivals, new films won't be available 30 days after their release on DVDs. However, in a late surprise almost all the major studios, including Touchstone, Miramax, MGM, New Line Cinema, Disney (DIS - Cramer's Take - Stockpickr), Paramount, Universal, and Sony Pictures, are participating in Apple's venture.

Jobs also announced the company has sold 4 million iPhones in the 200 days since the mobile phone went on sale -- an average of 20,000 a day.

In the third quarter, Apple gathered 19.5% of the smartphone market, compared with 39% by BlackBerry maker Research In Motion (RIMM - Cramer's Take - Stockpickr), 9.8% by Palm (PALM - Cramer's Take - Stockpickr) and 7.4% by Nokia (NOK - Cramer's Take - Stockpickr), according to data from Gartner.

Apple said it has sold 4 billion songs and more than 125 million TV episodes on iTunes, Jobs said..

Other announcements included a note that Microsoft (MSFT - Cramer's Take - Stockpickr) has started shipping the Office Mac 2008 software suite for Mac users.

Jobs also introduced a new product, Time Capsule, as a back-up appliance that allows Mac users to wirelessly backup their data the machine. Time Capsule will be sold in two versions starting February, 500-gigabyte for $299 and 1 terabyte for $499.

Apple's latest operating system, Leopard, has sold more than 5 million copies in the three months since its release in October, and about 20% of users running the Mac OS X operating system, Leopard's predecessor, have upgraded to Leopard, said Jobs

 

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Today's Mercury Flyby To Be the First Since 1974

The flyby, the first visit to Mercury in more than 33 years by an emissary from Earth, will mark a key moment in a NASA mission that will ultimately place the first satellite into orbit around the tiny planet that sits closest to the sun.

The planetary science community is eagerly awaiting images and information that should shed light on some of the enduring mysteries about the planet -- such as where in the solar system it was formed and why its hard metal core is so large and its outer rock crust so scant, compared with those of Earth and the other rocky planets.

"Mercury is a difficult place to get to, and it's taken a long time to get back," said principal investigator Sean Solomon, who has worked on the mission for more than 11 years. "But now we're in place to learn things about one of our few sister rocky planets, and we're ready for some real surprises."

The desk-size spacecraft was launched in 2004 and has taken a circuitous path to Mercury, swinging twice by Venus and once by Earth for gravity assists. Messenger will make two more passes by Mercury to let the planet's gravity slow it down enough for it to swing into orbit in 2011.

Still, today's whisker-close flyby will be, NASA officials say, a high point of the mission. Not only will the spacecraft pass within a record 124 miles of Mercury's surface at a relative speed of more than 16,000 mph, but it also will quickly begin sending back its first observations of the physical and magnetic makeup of the planet, to be made by instruments that could answer some of the most basic questions about Mercury's character and history. It will be the closest pass by Messenger in the entire mission, and the nearest to the planet's equator.

"The biggest mystery of Mercury is why it has so much heavy metal -- a core very different in size from other planets," Solomon said. "We think we can begin to unravel the mystery once we know the chemical makeup of the planet's surface."

There are several competing theories on how Mercury came to be what and where it is. One is that the searing heat of the sun stripped the crust off a once-larger planet and left primarily the core. Another is that the planet collided with another celestial body during a time when the early solar system was cluttered with them. Under this theory, Mercury's outer crust and mantle were smashed away and the planet was knocked into its close-in orbit.

Because Mercury is so close to the sun, designing a spacecraft that could stand the heat and calculating a trajectory that would place Messenger into orbit -- rather than plunging into the sun -- were daunting tasks. Temperatures on the ceramic-cloth sunscreen that protects its instruments will reach 600 degrees Fahrenheit.

The spacecraft's instruments were designed never to face the sun because they would otherwise quickly overheat and be destroyed, and even pointing them at Mercury will be done for very limited periods. On the side facing the sun, the planet reaches 1,100 degrees at the equator, and on the dark side, it drops to as low as 300 degrees below zero.

The name of the probe, Messenger, is an the acronym for Mercury Surface, Space Environment, Geochemistry and Ranging. It is the first spacecraft to visit Mercury since Mariner 10 in 1974, at a cost of $446 million for the life of its mission. Reflecting the new technologies and logistical knowledge that made the mission and its unprecedented orbiting possible, the European and Japanese space agencies will also be sending spacecraft to Mercury soon.

The planet they will scrutinize has craters, volcanoes, and many unusual and unexplained features, including what might be frozen water in polar crevasses protected from the sun. Its mass is only 5 percent that of Earth's, but its metal core accounts for 60 percent of that mass (compared with about 30 percent for Earth and Venus, and 20 percent for Mars). Mercury also has an active magnetic field in its thin atmosphere, the only rocky planet other than Earth with that feature. And it contains one of the largest impact craters in the solar system -- the Caloris Basin, which is 800 miles in diameter, or about a quarter of the planet's diameter.

Right around noon today, if all goes as planned, a spacecraft called Messenger will swoop past the planet Mercury and begin two days of unprecedented picture-taking and data-collecting.

 

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FCC Asks Comcast for P2P Answers

Comcast this week received a letter from the Federal Communications Commission (FCC) asking that the cable provider respond in writing by January 25 regarding accusations that it is blocking access to certain file-sharing applications.

"We did receive a letter from the FCC asking us to respond in writing to the Free Press, Media Access Project complaint," said Comcast spokeswoman Sena Fitzmaurice.

On Monday, the FCC also opened a public comment period on the Free Press petition that will examine whether "degrading peer-to-peer traffic" violates FCC rules for reasonable network management.

In addition, the FCC will examine a petition from file-sharing company Vuze that asks for clarification on what constitutes "reasonable network management." The inquiry will also touch on whether text messaging and short codes are subject to the FCC's non-discrimination rules, prompted by Verizon Wireless' decision to ban and then allow Naral Pro-Choice America to use its mobile network for an abortion-rights text program.

The letter Comcast received from the FCC "is different and separate from the three dockets that the FCC has opened asking for public comment on various broadband network processes and the Verizon text messaging issue," Fitzmaurice said.

Comcast has not made any decisions about whether it will submit public comments, she said.

The commission's wireline competition bureau will accept comments until February 13 and reply comments until February 28. The bureau will also examine a petition from file-sharing company Vuze that asks for clarification on what constitutes "reasonable network management."

At issue is an October article from the Associated Press that accused Comcast of using software from Sandvine to block customer access to P2P services like BitTorrent and Gnutella.

Comcast admitted to "delaying" P2P traffic when traffic levels were high, but denied that P2P access was being blocked. Internet groups were not convinced, so they filed a complaint with the FCC in November calling on the commission to stop Comcast from violating customer rights.

FCC Chairman Kevin Martin said last week at the Consumer Electronics Show (CES) that the commission would investigate the complaint to ensure that customers were not being blocked.

After that announcement, Comcast pledged to "work with the commission" on the issue, according to David L. Cohen, executive vice president for Comcast. "We believe our practices are in accordance with the FCC's policy statement on the Internet."

"These inquiries will go a long way to setting out a road map for determining who will control the Internet, and whether texting will be seen in the same light as wireless voice services," said Gigi Sohn, president of Public Knowledge, one of the groups that filed the complaint with the FCC. "We look forward to participating in these dockets, and we anticipate that at the end of the day, consumers will have more control over their Internet and wireless experiences than they do now."

 

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EU launches new probes against Microsoft

BRUSSELS (Reuters) - The European Commission, fresh from a major court victory over Microsoft, launched new antitrust investigations into the software giant on Monday, on suspicion it abused its market dominance.

Brussels will see whether Microsoft broke competition rules to help its Web browser and its Office and Outlook products, after complaints from Norwegian Web browser company Opera and a coalition of technology firms including IBM.

The move goes to the heart of the company's lucrative near-monopoly over personal computer operating systems, word processing, spreadsheets and office collaboration software.

The Commission is asking if Microsoft used the same tactics to hamper rivals that the European Union's second-highest court found illegal in September, in the culmination of a 6-year antitrust investigation.

The Commission, Europe's top competition regulator, made no new charges against Microsoft but said it "will further investigate the case as a matter of priority."

Microsoft said it would cooperate fully. "We are committed to ensuring that Microsoft is in full compliance with European law and court obligations," it said in a statement.

NEW COMPETITION

The technology coalition, the European Committee for Interoperable Systems (ECIS), wants rival word processors such as Open Office to run smoothly with Office, so documents can be exchanged across formats without losing any data.

 

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Investors betting on Apple

NEW YORK (AP) -- Shares of Apple Inc. rose Monday as anticipation grew ahead of the annual Macworld conference and expo, at which the gadget and computer maker is expected to announce plans to enter the movie-rental business.

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Last year, Steve Jobs unveiled the iPhone. This year, who knows.

Apple shares rose $5.20, or 3 percent, to $177.89 in morning trading.

The tech sector experienced a general boost during morning trading, after a strong preliminary fourth-quarter earnings estimate from International Business Machines Corp. The tech-heavy Nasdaq composite index rose more than 25 points to 2,465.09 in morning trading.

The annual Macworld conference, at which Apple often unveils new products and services, was set to begin Monday in San Francisco and run through the week. Last year, Apple used the event to introduce the iPhone and Apple TV set-top box, setting off months of frenzied anticipation over the iPhone in particular, which was released in late June.

In an early Monday note to clients, Banc of America Securities analyst Scott D. Craig predicted several new product announcements will come at Macworld.

Like many others, the analyst expects Apple to announce a digital movie rental service that operates through its online iTunes Store.

"While we are not sure about timing, as this is largely dependent on deals with the movie studios, we believe that the company may use Macworld as an opportunity to introduce such a service," he wrote.

He also anticipates the introduction of an ultra-slim notebook, refreshed iPhone and iPod Touch models with increased storage capacity. He added it's possible that Apple also will announce a refreshed Apple TV.

Craig also thinks it is also possible that Apple will introduce a touch-screen tablet during the conference.

"We do note that historically, tablets have not sold well at other vendors, so we would like to see what is new with Apple's potential tablet and how it may be used," he wrote.

Craig also raised his first-quarter earnings estimates for Apple, citing healthy demand for the company's desktop and laptop computers.

The analyst rates Apple shares "Buy" with a $200 price target.

In a client note, JPMorgan analyst Bill Shope echoed many of Craig's predictions about Macworld, noting it will be hard for Apple to top last year's iPhone launch.

Also, the analyst doesn't see evidence that any Macworld announcements "will force any near-term change in estimates or sentiment."

 

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Cloned Animals May Be Used for Food in U.S., FDA Says

(Bloomberg) -- Cloned cows, pigs and goats and their offspring are safe to enter the U.S. food supply, regulators found amid criticism from lawmakers, consumer groups and worried eaters.

The Food and Drug Administration posted a summary of a final report backing the use of cloned food on its Web site today after a seven-year review. The agency hasn't recommended any special labeling for such products, and the report did not say whether this means a voluntary moratorium on sales, agreed to by the industry in 2001, is lifted.

The proposal drew 30,500 comments from the public, and Congress passed legislation urging the FDA to study cloning further before acting. The agency's decision to move ahead anyway benefits closely held companies, including ViaGen Inc. and Trans Ova Genetics, which have already cloned hundreds of elite animals for breeders around the country.

``The FDA has concluded that meat and milk from clones of cattle, swine and goats, and the offspring of clones from any species traditionally consumed as food, are as safe to eat as food from conventionally bred animals,'' the agency said in its summary report. The FDA declined immediate comment, and scheduled a noon conference with the news media.

European regulators came to the same conclusion as the FDA in a draft assessment of cloning released Jan. 11. The European Food Safety Authority is taking comments on its proposal to allow meat and milk from cloned animals until Feb. 25.

Ethical Debate

Cloning has been a matter of public fascination and ethical debate since Scottish scientists announced in 1997 that they had produced a cloned sheep they named Dolly. Concern that eating products from such animals may be unsafe -- and that the animals themselves are needlessly exposed to more health problems -- increased after Dolly, suffering from an incurable lung disease, was euthanized at an early age.

Surveys show that many American consumers are reluctant to eat animals produced through biotechnology. A third of adults said they would never buy milk or meat from cloned animals even if the FDA determined it was safe, according to a poll released in 2006 by the Center for Food, Nutrition and Agriculture Policy at the University of Maryland in College Park.

Tyson Foods Inc., the largest U.S. meat producer, said it will consider both government regulations and customer preference before deciding whether to sell cloned meat should it become commercially available.

Tyson's Plans

``Tyson currently has no plans to purchase cloned livestock, especially since it will likely be a long time before such animals would even be available for market,'' said Tyson spokesman Gary Mickelson in an e-mail response to questions. ``Whatever measures we ultimately take will be guided by government regulations and the desires of our customers and consumers.''

Dean Foods Co., the biggest U.S. dairy distributor, has said it won't use milk from cloned cows because of a potential consumer backlash. The Dallas-based company hasn't decided whether it will use milk from the progeny of clones, spokeswoman Marguerite Copel said on Jan. 7.

ViaGen and Trans Ova have pledged to register all of their livestock clones so food manufacturers can exclude the animals if they choose, though the program won't apply to the natural- born offspring of replicated animals. Testing for this link is impossible, and it shouldn't make consumers wary of eating meat and dairy products, ViaGen Chief Executive Officer Mark Walton said in a Dec. 19 phone interview.

Consumer Concern

``If you were to go ask a consumer today if they were concerned about offspring, they would say `Of course I am,''' Walton said. ``When you educate and provide the information and help them understand that progeny and offspring are not cloned, the comfort level goes way, way up.''

Industry groups including the American Meat Institute, the National Milk Producers Federation, the Grocery Manufacturers Association and the Food Marketing Institute have said they support registering clones as a way to ease public queasiness.

There are now an estimated 650 live clones in the U.S., mostly cattle produced by Austin, Texas-based ViaGen and Trans Ova, of Sioux Center, Iowa. The companies charge about $13,500 to copy a cow, and they expect the clones to be used exclusively for breeding bigger, stronger and perhaps tastier herds.

Cloning allows ranchers to replicate a prize-winning animal or replace one that is injured or aging. About 80 percent of ViaGen's animals so far have gone into the entertainment business as rodeo horses, bucking bulls and show cows. The rest went to ranchers betting the FDA would repeal the voluntary moratorium on sale of food from clones and their offspring.

Senate Amendment

The FDA issued its draft proposal in December 2006 and had said it could announce a decision by the end of 2007.

Senator Barbara A. Mikulski, a Maryland Democrat who has raised objections to cloned food, sent a letter in December to FDA Commissioner Andrew von Eschenbach telling him not to ``pull a fast one'' by acting on cloned foods without conducting additional studies sought by lawmakers.

The Senate included an amendment that would have required more study of cloning in a $286 billion farm bill that awaits negotiation with the House. Congress earlier added language urging the FDA to delay action in an omnibus spending measure signed by President George W. Bush.

The Center for Food Safety has also challenged the agency's review of the scientific data supporting cloned food. The FDA relied on incomplete evidence and misrepresented its findings, the Washington-based consumer group said in a 32-page critique submitted among the public comments.

Clone Production

To produce clones, scientists grow copies of cells from the original animal in a lab dish, and then extract genetic material. The DNA from the animal to be cloned is inserted into an egg whose nucleus has been removed, and the resulting embryo is implanted in an animal that will serve as the clone's surrogate mother.

Supporters say the technology isn't a big leap from artificial insemination or genetically modifying rice and corn, tools that are now widely used on cattle ranches and farms.

``This is an additional technology that will find a place to contribute to an increased food supply and a safer food supply,'' said Jerry Baker, chief executive officer of the Federation of Animal Science Societies in Savoy, Illinois, in a Jan. 7 phone interview. The group represents more than 40,000 scientists in animal agriculture around the world.

 

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GPS gadget aims to ease geotagging

The ATP GPS Photo Finder is designed to ease the geotagging chore.

ATP Electronics has announced a device called the GPS Photo Finder that's designed to take some of the trouble out of geotagging your photos.

The device, like many GPS receivers, keeps track of its location based on signals from satellites. What's different is that instead of marrying that location data with your photos on a computer using special software, the Photo Finder has an SD card slot and handles the tagging by itself, the company said. When you copy photos to your computer, the location data is embedded in the JPEG files.

The device should go on sale for $99 in the next couple weeks, said marketing manager Jeffray Hsieh. It also includes a USB port that lets you plug in a flash card reader if your camera uses CompactFlash memory cards or some other format. It's based on the highly regarded SiRF Star III GPS chip.

Sadly, the device supports only JPEG files at this stage. Most photographers shoot only JPEG--indeed, most cameras have no other option--but higher-end models such as SLRs also support raw files, which record the image sensor data with no in-camera processing. And the kind of enthusiasts who shoot raw sometimes are the kinds of enthusiasts who like to geotag photos.

"We'll definitely continue to develop additional support for raw formats," Hsieh said, "but because of the fragmentation between camera manufacturers, it will be a challenge."

The company also plans on adding the ability to export track logs as a KML route file, a record of a person's trip that can be imported into Google Earth software. The company also is planning on adding altitude and direction data that some GPS devices can supply.

The Photo Finder also includes a screen that's can display the time, a feature designed to help nip geotagging time zone complications in the bud.

Personally, I geotag photos for personal archival reasons: which church/mountain/beach was that photo? Various Web sites also can take advantage geotagged photos.

 

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Do we need a campaign to save XP?

I see that Infoworld has started a campaign to save XP. I'm sure the Linux world will feel a little wry about that one.
The XP-to-Vista transition is a pretty clear example of the way proprietary operatings fail users. Everyone is happy with XP, says Infoworld , and it's got plenty of life in it.
So, Infoworld asks, please can we keep it? The site is running a rather jolly Doomsday clock, a petition, and a blog at SaveXP.com.
Infoworld's Save XP campaign
Microsoft is pulling the plug (stopping selling XP) at the end of June, and resellers can only go on selling it till the end of 2008. But why is this, if demand is high? And what are the chances of "saving" XP?
Moving people on, is obviously in Microsoft's interest, as more new PCs, mean more profits (though we've seen elsewhere that in many circumstances, the familiar and trusted XP commands a higher price than most versions of Vista). Infoworld makes the parallel with windows Millennium edition (though the number of users and the amount of development cost was far smaller, in that case.
Unlike previous Windows versions, Microsoft could build a business model around keeping XP going more or less forever. It's got better copyright protection than previous versions, so XP users would be likely to have paid money that will reach Microsoft.
But fundamentally, Microsoft upgrade cycles don't fit well with what people want in PCs. In the early days of IT, new versions were necessary, because the technology changed rapidly and radically. If I remember rightly, I upgraded to Windows 95 so I could use a CD drive, moved on to Windows 2000 so I could use USB, and to XP for stability, roll-back and automatic online upgrades.
Now, new features can be added easily. A PC is like a VCR or a maybe a fridge, and I'd rather it stayed as stable as possible. I don't want to have to get a new VCR every year (though with writeable DVDs, Blu-Ray, and hard disks, htere's pressure to do so. We certainly don't want to replace our fridges.
It's extremely Ironic that, while killing it off for business users with one hand, Microsoft is thinking of allowing XP to live on the OLPC XO - a laptop which originally chose Linux to bail out of Microsoft's expensive upgrade cycles.
The challenge now is for Microsoft to create a model that actually delivers what users want, at a level of cost and disruption they are prepared to accept.
Linux - and the basic maturing of technology - has set this challenge, because finally, there are alternatives.

 

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Reduce, Reuse and Recycle

SCOTLAND currently landfills around 7 million tonnes of waste a year – around 2 million tonnes of which comes from households across the country.

The bulk of this waste ends up buried deep in landfill sites rotting and produces methane, a powerful greenhouse gas which contributes to climate change.
We can, however, all play a part in protecting our environment - now and for future generations - and the 10 greener pledges below are a good place to start.
You don't have to make 10 pledges. Why not start with the simple pledge to recycle more household waste?
It may not seem a lot but recycling can make a big difference if we all do it more. Recycling just one glass bottle saves enough energy to power a TV for an hour and a half.
Over £800 million worth of food is wasted in Scotland each year. The average person in Scotland throws away their own body weight in waste every seven weeks! Stopping this would save enough carbon dioxide to take the equivalent of one in four cars off the road.
It's becoming easier all the time to recycle your waste. Kerbside recycling is now available to 75% of Scottish homes and there recycling facilities are also available at most supermarkets. There are likely to be council refuse centres and other recycling locations near where you live.
The Sort-it website will help you find out what materials can be recycled where in your area.
With just a few simple changes to your daily routine you can take a big step toward reducing the amount of your waste.
Reduce the amount of food waste you create by thinking more about the amount of food you buy, how it's stored and the size of portions cooked. Also, where you can, get creative with your leftovers as the bulk of thrown away food is perfectly edible. For more advice on limiting food waste, check out: www.wasteawarelovefood.org.uk/
Reuse carrier bags instead of taking new ones every time you visit the shops – simply keep the same one and use it again and again!
Buy rechargeable batteries instead of disposables and save money while helping to save the environment from waste pollution.
By reducing the amount of waste we create, reusing what we can and recycling what we can't, we can each do our bit to build a greener, sustainable Scotland – today and for the generations to come.
Check out the 10 greener pledges below and see what you can do?
10 Greener Pledges 2008
•Recycl

e household waste using locally-provided facilities.
•Turn the tap off when brushing your teeth
•Switch to using energy-saving light bulbs
•Leave the car at home at least once a week, and cycle, walk, share a car or use public transport more often
•Use rechargeable batteries instead of disposable ones
•Reuse carrier bags when you shop
•Buy more seasonal and unpackaged food
•Hang your washing up to dry rather than using a tumbler dryer
•Organise or volunteer in an environmental project in your local community
•Pay back the environmental impact of any flights you take and choose not to fly when there's a suitable alternative
For more information on waste awareness, log onto:
www.wasteawarescotland.org.uk
www.itsourfuture.co.uk/ourfuture

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FCC approves much-needed increased China-U.S. bandwidth

As it stands, there's almost twice as much bandwidth across the Atlantic as there is across the Pacific. But with new U.S. FCC approval for the first ever China-U.S. fiber link, this is all about to change.

The score right now 5,547 to 2,726. That's the current Atlantic vs. Pacific bandwidth score in Gigabits per second, according to TeleGeography. The Trans-Pacific Express "will initially provide capacity of up to 1.28 terabits per second, and the system will have a design capacity of up to 5.12 Tbps to support future Internet growth and advanced applications such as video and e-commerce," writes ChinaTechNews.

Construction has been underway since September, and should be complete before the Olympics. Internet speeds in Beijing are generally pretty good in my experience, but further south in Shanghai, much of the transpacific traffic is terribly sluggish on a variety of connections. Perhaps this is a matter of higher demand there, but with the FCC's approval for the cable to land in Oregon, things should get better soon.

 

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Building a sub $1,000 gaming PC

The other day I was challenged to put together a gaming PC for less than $1,000.  As it turns out, not only is it quite easy to hit this figure, but you also get a lot of hardware for your money.

Whenever I approach building a system for a specific amount of cash I always look at getting the most bang for the buck out of every component I select.  This means choosing wisely and not spending crazy money on things that don’t make a difference.  For example, a fancy case might look cool but it doesn’t offer any additional frames per second when playing Crysis or Call of Duty 4.  Equally, a fancy heatsink and cooler might be essential when overclocking, but if the system if going to be running at stock speeds, a bundled assembly will do just fine.

Another thing that you need to keep an eye on is future upgrades.  The final system here offers plenty of scope for future upgrading.

Let’s go shopping!

Note: All prices quoted are from Newegg.com and a rounded to the dollar.  Shipping not included.  No rebates included.  Monitor not included.  Also, I have no affiliation with Newegg.com.  I’ve chosen it because the site is easy to use, well stocked and prices are good.  Feel free to shop around.

 

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MySpace agrees to social-networking safety plan

NEW YORK--A coalition of law enforcement authorities and representatives from social-networking site MySpace.com gathered Monday morning to unveil an extensive new plan for ensuring the safety of minors on the Internet.

Under the agreement, MySpace has pledged to work with the attorneys general on a set of principles to combat harmful material on social-networking sites (pornography, harassment, cyberbullying, and identity theft, among other issues), better educate parents and schools about online threats, cooperate with law enforcement officials around the country, as well as develop new technology for age and identity verification on social-networking sites.

"Today's announcement is a landmark step forward in providing new protections for teenage members of social-networking sites such as MySpace," Hemanshu Nigam, MySpace's chief security officer, said at the press conference here.

The new Multi-State Working Group on Social Networking, led by attorneys general Roy Cooper of North Carolina and Richard Blumenthal of Connecticut, consists of Nigam as well as the attorneys general of 49 total U.S. states and the District of Columbia. The group has released a "Joint Statement on Key Principles of Social Networking," which it hopes will achieve industrywide approval from other social-networking sites and Internet providers.

The lone state missing from the task force is Texas. North Carolina's Roy Cooper, speaking on behalf of the coalition's executive committee--Cooper, Blumenthal, Tom Corbett of Pennsylvania, and Marc Dann of Ohio--would not comment on the reason why. The members of the executive committee were joined by Anne Milgram, attorney general of New Jersey, as well as Steve Cohen, a representative for New York attorney general Andrew M. Cuomo.

Texas Attorney General Greg Abbott said later on Monday that his office declined to participate because he didn't consider the proposed safety measures to be strong enough.

In the press conference, the attorneys general acknowledged that existing standards of law enforcement simply don't suffice in the rapidly changing climate of the Internet. "You're in an area where what you are looking at today will not be what you're looking at in six months," Cohen said. "There is an exponential change that goes on with each passing week and month, and you really do need to bring together the best minds and the best ideas."

The task force aims for cooperation from other social-networking sites, namely Facebook, which reached its own agreement with Cuomo's office over sex offender data on the site in October. "We are calling on Facebook and other social-networking sites today to adopt these principles, to put these safety practices in effect, and to join the task force," Cooper said. "We think it's critical that this be industrywide.

When a member of the audience asked why reaching an agreement with MySpace had taken this long--the site was founded in 2004--Cooper said that it had been an ongoing process. "We recognized pretty soon that this was going to be a problem and we began pushing legislation, we began exploring litigation, (and) we've been in discussion with MySpace for about two years," Cooper said. "We talked to other social-networking sites. It has taken us this long to culminate in this agreement." He added that the negotiations significantly improved when MySpace was acquired by the News Corp. division Fox Interactive Media in 2005.

Indeed, MySpace's dealings with law enforcement officials have been ongoing. Last spring, a group of eight states' attorneys general wrote an open letter to the site expressing concern about the numbers of registered sex offenders with profiles on the site. After initially asserting that federal and state laws prevented it from meeting the attorneys' requests, MySpace eventually unveiled a preliminary plan for compliance.

The attorneys general confirmed in Monday's press conference that they wanted to avoid legal action against MySpace and social-networking sites in general. "Litigation is costly, time-consuming, (and) uncertain in its result," Blumenthal said. They also acknowledged that law enforcement officials still don't see eye-to-eye with social-networking sites on a variety of issues, namely the feasibility of identity and age verification. The attorneys general believe it's technologically possible; Nigam and the rest of MySpace say it needs more development.

"We are not papering over or concealing our continued differences," Blumenthal said. "This process of discussion has been difficult, daunting, but also extraordinarily educational."

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FCC's Airwaves Auction May Fail to Lure Bidders

WASHINGTON -- Federal regulators' bet that companies would leap at the chance to buy heavily discounted airwaves in an auction may be collapsing less than two weeks before the auction begins.

Federal Communications Commission officials are hoping for the best, noting that big carriers such as AT&T Inc. and Verizon Wireless could potentially bid for the discounted airwaves, which include conditions requiring the winner to share its wireless network with emergency responders.

But the recent demise of the most likely new bidder, start-up Frontline Wireless LLC, which pushed for the nationwide license, means that the likelihood of a new national wireless competitor has dropped.

"We are still hopeful that there will be someone who will emerge as being willing to take on this challenge," one FCC official said.

Yesterday, the FCC said 214 bidders have qualified for the auction, which is expected to raise at least $10 billion. Google Inc. and big wireless companies including AT&T will likely focus on larger regional blocks, which could be put together to form a national wireless network.

Less than two weeks from the auction's Jan. 24 start, however, there may be no white knight coming to claim the discounted airwaves. The deadline to apply for the auction closed well before word of Frontline's shuttering became known.

If the $1.33 billion reserve price isn't met, FCC officials could be put into the uncomfortable place of re-auctioning the spectrum, possibly without some or all of the stringent conditions that it has imposed on the airwaves.

It isn't clear yet which companies might bid. The FCC's auction rules bar companies from discussing the auction. The agency won't release information about which companies bid on which airwaves until the auction ends.

Frontline, led by former FCC Chairman Reed Hundt and venture capitalists John Doerr and James Barksdale, hoped to bid on the 10 megahertz of spectrum set aside by the FCC for joint use by the private and public sectors. Although the start-up successfully convinced the FCC to give it a 25% small-business-discount credit to bid in the auction, the company's founders were unable to raise enough capital to make the $1.33 billion minimum bid, according to people familiar with the matter.

"Just like the New Hampshire primary, you don't know until it happens. Surprises can happen," said Blair Levin, a telecom analyst at Stifel Nicolaus.

But with Frontline the only company to publicly raise its hand to bid on the license, it isn't clear who else might be seriously contemplating it. "There aren't a lot of wildcards in the deck here," Mr. Levin said.

The FCC auction involves some of the nation's most valuable airwaves. Those airwaves are being used by broadcasters to send analog television signals. Next year, however, the U.S. is scheduled to transition to digital-only television broadcasts, which take up a fraction of the current space.

Congress set aside a large section of the airwaves for the use of public-safety groups, but building a network to take advantage of the extra airwaves was estimated at as much as $10 billion. The FCC adopted a plan to offer discounted airwaves to a company willing to share its network with public-safety groups. The company would be required to give first responders priority access to the network during emergencies.

Addressing concerns about selling government property at a discount, the FCC adopted stringent new rules on the spectrum, which may have scared off some investors and potential bidders. The winning bidder would have to put up a $128 million nonrefundable down payment and would be required to satisfy conditions of a nonprofit set up to oversee the creation of the national wireless broadband network.

If no bidders reach the minimum price, the FCC has several options, including awarding the airwaves to the highest bidder. In July, the agency introduced rules for the auction, noting that if the reserve price isn't met, "we should leave open the possibility of re-offering the license on the same terms in a subsequent auction, as well as the possibility of re-evaluating all or some" of the conditions.

The FCC could dump the requirement that the winner shares its national wireless network with public-safety groups. It could also give the winner significantly longer to build out its network to cover more than 99% of the population than the current 11 years.

Congress mandated that the auction begin by the end of January with the proceeds deposited by the end of June.

 

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Google betting big on mobile market--and Apple

Vic Gundotra, a vice president of engineering at Google, shows off the new user interface of Google Web apps for the iPhone being unveiled at Macworld on Monday.

 

On Christmas Day thousands of people opened up boxes with something cool and functional inside and wasted no time logging onto Google.com through their brand new iPhones.

As a result of those gifts, the number of global queries to Google's search site from iPhones surpassed the number of queries from people using market-leading Symbian-based phones for the first time. Google calls it the "Christmas cross-over."

That is huge given the fact that the number of iPhone units shipped is tiny compared to the number of Symbian-based phones out there. The cross-over only lasted a few days or so, but it shows the impact the iPhone is having on the telecommunications industry and provides a glimpse into its future market potential for the Web.

"It's about usage, not just units," Vic Gundotra, vice president of mobile and developer at Google, said in a recent interview with CNET News.com. "The data proves that people are using the browser on the iPhone."

The iPhone revolutionized the industry by making it easy and affordable to use the Web on a cell phone, he says. Google is offering Web apps written for the iPhone browser that bring the PC experience to the mobile device, he says.

On Monday--the first day of Macworld--Google unveiled a new user interface for its iPhone Web apps that make Gmail, search, Reader, Calendar, Picasa and other services faster to use and more customizable. It also has optimized iGoogle for the iPhone.

Now, new e-mail messages automatically show up so you don't need to hit refresh, messages can arrive in 25 seconds or less and auto-complete makes composing an e-mail faster. Calendar offers a month-at-a-glance view that isn't yet offered on the desktop. Your favorite apps are in tabs at the top of the screen and they can be switched around.

"This app will work great on Android," Google's mobile software platform launched in November, says Gundotra.

What's next? Will more Google apps join YouTube and Google Maps on the iPhone's home screen that shows up when the device is first turned on?

Gundotra smiles mischievously.

"One thing that bothers me is that (mobile) apps don't work offline," he says when prodded.

Given that Google launched Google Gears, which allows people to work on their Web apps even when they are not connected to the Internet, last May it's likely they'll have something similar for mobile soon.

 

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Messenger Flies Past Mercury in Preparation for Permanent Mission

The US space agency spacecraft "Messenger" zipped past the planet Mercury, Monday, in preparation for a permanent orbit, beginning in 2011. Messenger, which is operated by remote control from Earth, will soon begin beaming data back which scientists hope will answer questions about one of the more mysterious planets in the galaxy. From Washington, Jessica Berman has this report.

The unmanned spacecraft was launched by NASA in August, 2004. Messenger, which stands for Mercury Surface, Space Environment, Geochemistry and Ranging, swooped within 199 kilometers Mercury, the smallest planet in the Universe that is also closest to the Sun.

Eric Finnegan is systems engineer for NASA's Messenger Mission.

Finnegan says Messenger made a nighttime approach toward Mercury at nearly 26,000 kilometers per hour. The planet's gravitational pull slowed the spacecraft by 8,000 kilometers per hour for its eventual descent into orbit around Mercury in 2011.

Image of Mercury taken by <i>Messenger</i>during its approach between January 9 and January 13, 2008

Image of Mercury taken by Messenger during its approach between January 9 and January 13, 2008

Finnegan says Messenger sent back preliminary photos of the approach. He says the spacecraft will begin beam back more detailed imagery and data within the next day or two.

"We're very, very excited. We had a very successful flyby today," he said. "We still still be waiting for the next day or so to get down imagery but our initial indications flying by the planet using just radio beacon information looks good."

Planetary scientists hope the $450 million mission will help them answer key questions about Mercury, a tiny planet with temperatures that swing between 315 degrees in the daytime to minus 180 degrees at night.

Astronomers say the planet is heavily cratered and has a large iron core.

"Mercury is really an oddball," said Louis Friedman who heads the Planetary Society. "It is very dense solar system object. It's very small. It's in toward the Sun. It's only about the size of the Earth's moon, a little larger. And, as such, how did it form? And however it formed is going to tell us something about planet formation."

Friedman says the Milky Way is like a jigsaw puzzle; he says only when all the pieces are in place, and all the planets are explored, will astronomers understand how the galaxy was formed.

"Mercury is very, very dense and very heavy object and therefore getting a really good handle on that density and its mass and associated size will help us in trying to determine what happened at the time of planetary formation," he said. "How did it reach that size, how did it evolve and how did assume its final orbit?"

Messenger is about halfway through its journey to put it in permanent orbit around Mercury in 2011.

But, until then, there will be another flyby this October and again in September 2009.

 

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Toshiba Steps Up HD DVD Push Post-CES; Slashes Player Prices

Now, Toshiba (other-otc: TOSBF.PK - news - people ) is fighting back—a week after the death-bed stories, if not obits, in response, first, to Warner Bros.’s embrace of Blu-Ray from Sony (nyse: SNE - news - people ) and then to Universal’s decision not to date HD DVD exclusively.
The consumer electronics company, which has placed a large bet on HD DVD being at least one of two formats, is slashing prices on is HD DVD players, with some dropping to as low as $149.99, according to AP.
It’s a half-empty, half-full moment for retailers, who could see a sales boost at the same time that some may be faced with price matching from holiday sales.
The headline on the release actually explains the strategy: Toshiba Deploys New HD DVD Marketing Initiatives Based on Strong Fourth Quarter Unit (nyse: UNT - news - people ) Sales: Mass Market Acceptance Confirms that HD DVD is the Consumer’s Choice for Next Generation High Def Entertainment.”
The theory: play up the acceptance by consumers who have already paid for HD DVD versus those who get it with something else like a gaming console, get more players out there—and dare studios to ignore those consumers.
In addition to the sales cuts, Toshiba will launch “major initiatives, including joint advertising campaigns with studios.”
Toshiba says it closed 2007 with approximately 50% market share and an 80%-plus share of next-gen equipped notebooks sold in Q407.
Yoshi Uchiyama, Group Vice President Digital A/V Group: “While price is one of the consideration elements for the early adopter, it is a deal-breaker for the mainstream consumer.” But will mainstream users pay even reduced amounts for something without full studio coverage?
Online content access: Universal Home Video, Paramount Pictures and DreamWorks Animation SKG (nyse: DWA - news - people ) report that “an average of 30 percent of HD DVD owners have accessed Web- enabled network features and continue to do so regularly.” Players hooked up to the internet can stream new content, trailers, etc.

 

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German Investor Confidence Dropped to 15-Year Low

(Bloomberg) -- Investor confidence in Germany fell to the lowest in 15 years on concern that a U.S. recession will deepen the slowdown in Europe's largest economy.

The ZEW Center for European Economic Research said its index of investor and analyst expectations fell to minus 41.6 from minus 37.2 last month, the eighth straight decline. Economists expected a drop to minus 40, the median of 40 forecasts in a Bloomberg News survey showed.

Goldman Sachs Group Inc. and Merrill Lynch & Co. forecast that the U.S. will slip into recession this year for the first time since 2001 as the housing slump, which has driven up credit costs globally, curbs consumer spending. That may hurt European exporters already grappling with oil prices around $100 a barrel and an appreciating euro.

``The bad news flow from the U.S. banking sector hasn't abated,'' said Alexander Koch, an economist at Unicredit Markets and Investments in Munich. ``There are real concerns about a U.S. recession dragging down German economic growth.''

German economic growth slowed to 2.5 percent last year from 2.9 percent in 2006, which was the fastest expansion since the turn of the decade, the Federal Statistics office said today. The Bundesbank predicts growth of just 1.9 percent this year.

The gauge measuring investors sentiment about the current situation fell to 56.6 from 63.5. That's the lowest since December 2006.

Dow Jones Declines

The Dow Jones Stoxx 600 Index extended losses, falling another 0.3 percent to an intraday low of 341.56, after the ZEW data was published. Germany's benchmark DAX share index has lost 4 percent since the start of this year.

The world's biggest financial institutions have announced about $100 billion in writedowns and loan losses sparked by the U.S. subprime mortgage slump. Citigroup Inc. will probably report a net fourth-quarter loss of almost $4.3 billion, or 97 cents a share, later today along with job reductions, a dividend cut and a capital injection from outside investors, analysts estimate.

Merrill Lynch & Co. raised $6.6 billion by selling preferred shares to the Korean Investment Corp., Japan's Mizuho Financial Group Inc. and the Kuwaiti Investment Authority after $8.4 billion of subprime-related writedowns led to the biggest loss in its 93-year history in the third quarter.

`Largest Risk'

``The largest risk for the development of the German economy is the danger of a recession in the United States following the financial market crisis,'' ZEW said in a statement.

A jump in the U.S. jobless rate in December tipped the balance in favor of an economic contraction by signaling that the longest consumer-spending expansion on record will come to an end this year, Goldman Sachs said Jan. 9.

It forecasts the world's largest economy will shrink as falling house prices and lending restrictions made it difficult for consumers to obtain credit.

Borrowing costs jumped in mid-August as banks, including Bear Stearns Cos. and Merrill Lynch, began to reveal losses on securities linked to U.S. mortgages aimed at people with poor credit histories.

Last year ``would have been an excellent year without the subprime crisis,'' Peter Mueller, the chief executive officer of Frankfurt-based Commerzbank AG, said yesterday. The bank, which took a 291 million euro ($431 million) third-quarter writedown on 1.2 billion euros of investments linked to U.S. subprime mortgages, is scheduled to report full-year earnings on Feb. 14.

`Bad News'

``It's not only the bad news from the financial sector,'' said Nick Matthews, an economist at Barclays Capital in London. ``Recent data also points to a slowdown in manufacturing activity in Germany and the combination of weak U.S. growth and a strong euro will hit exports.''

German industrial production, exports and retail sales unexpectedly declined in November, reports showed last week, suggesting the economy is losing momentum as a stronger euro makes exports less competitive and record oil prices drive up inflation.

Higher credit costs will also crimp company investment, the Munich based Ifo institute said Dec. 12. It expects company spending on equipment to grow about 4 percent this year after increasing 9.2 percent last year.

 

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Stock Futures Fall Amid Citi, Merrill News

New York -- Wall Street aimed to open Tuesday's trading session lower amid news that investment banking giant Citigroup (C: 29.06, +0.50, +1.75%) would slash its quarterly dividend by 40%, cut jobs and post $18.1 billion in write downs related to mortgage-backed securities.

Also, economic news ranging from inflation to retail sales are due out this morning are weighing heavily on traders' minds.

The Dow Jones Industrial Average futures fell 38 points, or 0.3%, to 12760 as of 7 a.m. EST in New York. The Standard & Poor’s 500 index futures dropped 6.3 points, or 0.44%, to 1414 and the Nasdaq 100 futures fell 8 points, or 0.41%, to 1947.

Citi posted a fourth quarter loss of $1.99 a share, compared to a profit of $1.03 from the same period last year. As part of that loss, Citi's new Chief Executive Vikram Pandit cut the company's quarterly dividend from 54 cents a share to 32 cents a share. Analysts had expected a loss of $1.03 a share. Citi shares rose slightly on the news.

The company also said it was raising $12.5 billion in convertible stock and securities to help bolster the company's damaged balance sheet. This would be the second time the bank has appealed to foreign investors, after the company received a $10 billion investment from Abu Dhabi Investment Authority late last year.

Rumors that Citi would have to cut its dividend have circulated since October, when CIBC World Markets analyst Meredith Whitney said Citi would have to cut the dividend for the company to survive.

Whitney's call was highly controversial - both investors and the company itself vehemently denied that Citi was in that precarious of a financial situation that it required slashing the company's dividend. A few other banks, most notably Goldman Sachs (GS: 201.65, +2.91, +1.46%), eventually agreed with Whitney's assessment of Citi.

Another Wall Street firm is in the news this morning. Brokerage house Merrill Lynch (MER: 55.97, +1.28, +2.34%) said it had raised $6.6 billion in investments from foreign investors to help shore up the company's balance sheet. Merrill will sell preferred stock to Korea Investment Corporation, Kuwait Investment Authority and Mizuho Financial Group of Japan for $52.40 a share. The convertible security will pay a 9% dividend.

Outside of Citi's and Merrill's announcement, Wall Street will be watching for a series of economic data, including the U.S. government's gauge of monthly retail sales, the Empire State manufacturing index and the producer price index are all due out before the market opens. The producer price index, or PPI, will be key to watch to see if high commodity prices are working their way into the cost of goods for the manufacturers, which in turn will affect consumers.

On Monday, Wall Street got an unexpected and positive update from IBM (IBM: 102.93, +5.26, +5.38%) that kept the market on the positive side for the entire day.

In yesterday's trading, the Dow Jones Industrial Average rose 171.85 points, or 1.36% to 12778.15, the Standard & Poor’s 500 index gained 15.23 points, or 1.09% to 1416.25 and the Nasdaq Composite Index rose 38.36, or 1.57%, to 2478.30. The consumer-friendly Fox 50 picked up 11.71, or 1.16%, to 1022.16.

Oil fell 48 cents, or 0.51%, to $93.72 a barrel in New York. Gold gained $4.80 overnight to $908.20 an ounce in New York.

World Markets -
Both European and Asian markets fell overnight. The Dow Jones Euro Stoxx 50, a index tracking the 50 largest companies of Europe, fell 16.81 points, or 0.4%, to 4219.87. The FTSE 100, London's benchmark index, dropped 62.80, or 1.01%, to 6152.90.
France's CAC 40 Index fell 32.86 points, or 0.61%, to 5370.65 and Germany's DAX  dropped 34.10, or 0.44%, to 7697.92.
Japan's Nikkei 225 Index fell overnight, dropping 138.16 points, or 0.98%, to 13972.63. Hong Kong's Hang Seng Index fell 630.35, or 2.38%, to 25837.78.

 

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Merrill Lynch Gets $6.6 Billion From Kuwait, Mizuho

(Bloomberg) -- Merrill Lynch & Co., the U.S. bank battered by subprime mortgages losses, raised $6.6 billion by selling preferred shares to a group including the Kuwaiti Investment Authority and Japan's Mizuho Financial Group Inc.

The group also includes the Korean Investment Corp. and clients of U.S. money managers TPG-Axon Capital and T. Rowe Price Associates Inc., Merrill said in a statement today. The mandatory convertible securities carry a 9 percent annual dividend and a 17 percent conversion premium. The investors won't have a say in how Merrill is run, the bank said.

Merrill is raising money after $8.4 billion of writedowns on U.S. mortgage investments led to the biggest loss in its 93- year history in the third quarter. Today's investment comes a month after the New York-based firm raised $6.2 billion from Singapore's Temasek Holdings Pte and Davis Selected Advisors LP.

``We look forward to our relationship with Kuwait Investment Authority providing Merrill Lynch with additional opportunities to grow its presence there,'' Merrill Chief Executive Officer John Thain said in today's statement. ``Because of their extensive corporate client base in Japan and their deep network in China, the Pacific Rim and globally, we expect future collaboration with Mizuho to be very productive.''

Thain, who took over Dec. 1, joined Citigroup Inc., Morgan Stanley and UBS AG in tapping overseas investors to shore up capital. U.S. and European banks and securities firms have turned to Asian and Middle Eastern governments and investors for about $34 billion of fresh funds.

Citigroup Loss

The world's biggest financial institutions have announced more than $100 billion in writedowns and loan losses sparked by the U.S. subprime mortgage slump, eroding their balance sheets and sending shares plunging.

Citigroup Inc., the biggest U.S. bank, posted a $9.83 billion loss in the fourth quarter today and said it will raise $12.5 billion through selling securities to investors including Singapore and Kuwait.

Merrill probably will post a loss of $3.23 billion on Jan. 17, topping the record $2.24 billion shortfall reported in the third quarter, Stan O'Neal's last as CEO, analysts estimate.

The firm may write down $15 billion related to U.S. mortgage losses, almost twice its original forecast, the New York Times reported Jan. 11, citing unidentified people briefed on the plan. Merrill is trying to raise $4 billion from investors in the U.S., Asia and the Middle East to shore up its finances, the Times said, citing the same people.

The bank is a passive, minority investor in Bloomberg LP, the parent of Bloomberg News.

Kuwait Investment Authority Managing Director Bader al-Saad was in a meeting and couldn't be reached for comment when Bloomberg called his Kuwait city office today.

 

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