Tuesday, January 31, 2012

Home prices dropped in November in most US cities

(AP) ? U.S. home prices fell for a third straight month in nearly all cities tracked by a major index. The declines show that most homeowners are not reaping the benefits from some signs of an improving housing market.

Prices dropped in November from October in 19 of the 20 cities tracked, according to the Standard & Poor's/Case-Shiller home-price index released Tuesday. The steepest declines were in Atlanta, Chicago and Detroit. Phoenix was the only city to show an increase.

The declines partly reflect the typical fall slowdown after the peak buying season.

Still, prices fell in 18 of the 20 cities in November compared to the same month in 2010. Only Washington and Detroit posted year-over-year increases.

Prices in Atlanta, Las Vegas, Seattle and Tampa fell to their lowest points since the housing crisis began. And prices have fallen 33 percent nationwide since the housing bust, to 2003 levels.

"The trend is down and there are few, if any, signs in the numbers that a turning point is close at hand," said David M. Blitzer, chairman of the S&P's index committee.

The Case-Shiller index covers half of all U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The November data are the latest available.

Home values remain depressed despite some hopeful signs at the end of last year.

Sales of previously occupied homes rose in the last three months. Homebuilders are more optimistic after seeing more people express interest in buying this year. And home construction picked up in the final quarter of last year, which helped housing contribute to broader economic growth.

Home prices tend to follow sales, which are still below healthy levels. And a large number of vacant homes are sitting idle on the market, which means prices will likely stay unchanged for several years, said Paul Dales, senior U.S. economist at Capital Economics.

"The most likely scenario in the U.S. is that in 2012 prices will bob around a bit, with one month's gain being reversed the next month," Dales said. "But in general, over the next couple of years, house prices will do nothing more than remain broadly stable."

Dales said prices might not rise consistently until 2015. He said lower unemployment and better pay raises are essential to a full housing rebound.

Among other improvements needed:

? The supply of homes for sale must decline further. The inventory fell in November to a seven-month supply, although a healthy supply is about six months.

? Sales need to rise consistently and more first-time buyers must drive the increases. First-time buyers stay longer and invest in their homes, which helps neighboring home values rise.

? More young people and immigrants must buy. Declining immigration and a rise in renting has hampered home sales.

? More than a million homes at risk of foreclosure must be cleared from the market. Many are in limbo because a government investigation into questionable mortgage lending practices, which has dragged on for more than a year.

? Banks must further loosen lending requirements.

Conditions are improving for those in position to buy a home. Job growth is up, prices are down, mortgage rates are at record lows and rental prices have risen sharply since the housing bust.

Still, many people can't afford to buy or are unable to qualify for mortgage. Some people in position to buy are holding off, worried that prices could fall even further.

Many economists say the U.S. could be experiencing what similarly occurred in Britain in the 1990s, when it took four years for home prices to rise again after falling prices left homeowners with little financial equity in their homes.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-01-31-Home%20Prices/id-7651c54da5b0479b887ab0bedd2fd788

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Democrats spend big in Ore. special election (AP)

PORTLAND, Ore. ? Determined not to lose another friendly district because of a sex scandal, Democrats and their allies have pumped more than $1 million into an Oregon special election race that has turned into a vicious exchange of attacks over the airwaves.

Voters are deciding who should replace former Rep. David Wu, a seven-term Democrat who resigned last year following a string of bizarre news stories that began with photos of the congressman wearing a tiger costume and ended with a young woman's accusation that he made an unwanted sexual advance.

Voters have until 8 p.m. Tuesday to return their ballots in the all-mail election.

Republican Rob Cornilles, a sports business consultant, has tried hard to extend the scandal that brought down Wu to the Democrat who wants to take his place, former state Sen. Suzanne Bonamici. She says the race is about the future, not about Wu.

Bonamici and independent groups that support her have gone after Cornilles for missing tax payments for his business and for inconsistent statements about the number of jobs his company has created.

Oregon's 1st Congressional District is the state's economic engine, encompassing downtown Portland and the fast-growing western suburbs that are home to the Silicon Forest high-tech hub and the global headquarters for athletic-wear giants Nike Inc. and Columbia Sportswear Company. It stretches across agricultural communities to the Pacific coast. Democrats have represented the district since 1975, and its voters overwhelmingly supported President Barack Obama.

But Democrats do not want to see a repeat of what happened last year in a heavily Democratic New York district, when a Republican won a special election after Rep. Anthony Weiner acknowledged sending provocative text messages and resigned.

The Democratic Congressional Campaign Committee has spent $1.3 million to boost Bonamici. Political committees for a union, abortion-rights groups and a super PAC allied with Democrats have also chipped in with their own mail or television ads.

Democrats insist they're not scared. They've likened their investment to an insurance policy to avoid any doubts about the party's strength that would inevitably follow a loss in a liberal state like Oregon. The National Republican Congressional Committee has spent just $85,000 on the race.

Cornilles, 47, is making his second bid for the seat after losing to Wu in 2010. He's centered his pitch on his experience running a sports-marketing firm, hoping to swing an upset with a relentless focus on jobs and a run toward the center. Unemployment in the Portland area dropped to 7.8 percent in November 2011, according to the Bureau of Labor Statistics.

Bonamici, 57, is mixing traditional Democratic themes of protecting Social Security and Medicare with a pledge to tackle the national debt by getting Washington's priorities in order.

Without reliable public polling it's anyone's guess how close the race will be.

Source: http://us.rd.yahoo.com/dailynews/rss/democrats/*http%3A//news.yahoo.com/s/ap/20120129/ap_on_el_ho/us_oregon_congressional_election

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Monday, January 30, 2012

Sony cancels India release of 'Girl With the Dragon Tattoo' (Reuters)

LOS ANGELES, Jan 29 (TheWrap.com) ? "The Girl With The Dragon Tattoo" will not be hitting theaters in India.

The film was to be released on February 10, but India's Central Board of Film Certification insisted that several scenes be edited.

Director David Fincher refused to cut two love-making scenes and a rape and torture scene from his R-rated adaptation of Stieg Larsson's best-selling book.

Sony acknowledged that it would not be opening the film in India and released a statement, which read in part, "While we are committed to maintaining and protecting the vision of the director, we will, as always, respect the guidelines set by the Board."

The film has already made nearly $100 million in the U.S. and more than $165 million at the overseas box office, and appears on its way to more than $200 globally, with much of Asia still ahead.

Source: http://us.rd.yahoo.com/dailynews/rss/movies/*http%3A//news.yahoo.com/s/nm/20120130/film_nm/us_dragontattoo_india

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Yemeni president heads to US

FILE - In this Saturday, Dec. 24, 2011 file photo, Yemen's President Ali Abdullah Saleh speaks to reporters during a news conference at the Presidential Palace in Sanaa, Yemen. Yemen's President's office says Yemeni leader Saleh has arrived in London en route to the U.S. (AP Photo/Mohammed Hamoud, File)

FILE - In this Saturday, Dec. 24, 2011 file photo, Yemen's President Ali Abdullah Saleh speaks to reporters during a news conference at the Presidential Palace in Sanaa, Yemen. Yemen's President's office says Yemeni leader Saleh has arrived in London en route to the U.S. (AP Photo/Mohammed Hamoud, File)

(AP) ? A presidential spokesman says Yemeni President Ali Abdullah Saleh has left Oman on route to the United States.

Spokesman Ahmed al-Soufi says Saleh has arrived in London and will leave later Saturday for New York for medical treatment in the United States. He gives no futher details.

Saleh left Yemen to neighboring Oman a week ago, planning to head to the United States, under pressure from Washington and others to leave his homeland to allow a more peaceful transition from his rule. In November, Saleh handed over his powers to his vice president and promised to step down completely.

But opponents say he has continued to interfere in the work of a unity government through his allies and relatives in key posts.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/cae69a7523db45408eeb2b3a98c0c9c5/Article_2012-01-28-ML-Yemen/id-4fb678882d104902b695735f5d2260fb

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Sunday, January 29, 2012

Dr. Phil interviews parents of missing KC baby (omg!)

KANSAS CITY, Mo. (AP) ? The family of a missing Kansas City baby has taped an appearance on the "Dr. Phil" show.

Viewers can tune in Friday to watch the interview with Lisa Irwin's parents and a private investigator who's searching for her.

Lisa was reported missing Oct. 4 when her father, Jeremy Irwin, came home from work around 4 a.m. and couldn't find her. Irwin and Deborah Bradley say they think someone broke into the house and took their daughter.

Deborah Bradley has said police have accused her of being involved in Lisa's disappearance. In tearful statements to the media early on, Bradley has repeatedly insisted she doesn't know what happened to her child.

No suspects have been named, despite an intensive search.

Source: http://us.rd.yahoo.com/dailynews/rss/entertainment/*http%3A//us.rd.yahoo.com/dailynews/external/omg_rss/rss_omg_en/news_dr_phil_interviews_parents_missing_kc_baby223553891/44340784/*http%3A//omg.yahoo.com/news/dr-phil-interviews-parents-missing-kc-baby-223553891.html

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Saturday, January 28, 2012

DoCoMo to ask for changes in Android -Nikkei (Reuters)

(Reuters) ? NTT DoCoMo Inc (9437.T) will ask Google Inc (GOOG.O) to modify its Android operating system so that smartphones using it would put less pressure on networks, a move that could spark wider protests against the leading mobile software platform, the Nikkei reported.

The leading Japanese mobile phone service provider identified an Android application, which enables free-of-charge voice communication, as a major cause behind a service disruption that occurred on Wednesday, the business daily said.

Some Android applications send out control signals once every three to five minutes even when not in use. This translates to ten times that of a conventional mobile phone, placing additional strain on the network, the newspaper said.

A sharp rise in data consumption puts more pressure on wireless operators to speed up capacity investments, as they are struggling with clogged telecom networks to keep up with growing demand for data services on the go.

DoCoMo intends to request that Google make Android transmit control signals less often, since frequent service disruptions could hurt the popularity of Android phones, the Nikkei reported.

"Other operators have complained, some publicly, about the pressure Android apps in particular are putting on their networks," said John Jackson, analyst at British wireless consultancy CCS Insight.

The Japanese paper said that DoCoMo also hopes to team up with other mobile service providers, along with Google, to ask Android application developers to limit the frequency of control signals.

"I expect that at the very least operators worldwide will watch this dispute closely to see what remedy might be in the offing," Jackson said.

Other operators may use the dispute as an occasion to demand similar modifications, he said.

"Either way, DoCoMo's move comes at a challenging time for Google with the Android ecosystem failing to generate Apple-like (AAPL.O) revenue and OEM licensees coming under legal pressure from Microsoft Corp (MSFT.O) in particular," he added

(Reporting by Meenakshi Iyer in Bangalore and Tarmo Virki in Helsinki; Editing by Joyjeet Das, Gary Hill)

Source: http://us.rd.yahoo.com/dailynews/rss/software/*http%3A//news.yahoo.com/s/nm/20120127/tc_nm/us_docomo

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Many Mo. farmers shut out of federal flooding aid

(AP) ? Farmers whose land was damaged by Missouri River flooding expressed frustration Friday that a missed deadline will keep them from sharing in $215 million from one federal disaster program.

Farmers and communities had to apply for the aid by June 30, but many still had land under water then and couldn't do a required damage assessment. Water didn't recede from many farms in Iowa, Nebraska and Missouri until late September or early October.

The money is part of $308 million in funding the U.S. Department of Agriculture announced last week. It is distributed through the Emergency Watershed Protection Program, which requires a sponsor such as a city, county or drainage district. The money is meant to be used to clear drainage ditches, fix levees and structures and reshape eroded banks.

Officials couldn't say Friday how many farmers missed the chance to apply for help.

About 1,200 of Bruce Biermann's 2,500 acres in northwest Missouri flooded last summer. He said he should be planting this year's crop in about 60 days but that will be tough to do without help with repairs.

"It certainly is disappointing that we can't have access to funds that are basically earmarked for disasters like this," he said.

The flooding started in June when the U.S. Army Corps of Engineers began releasing massive amounts of water from upstream reservoirs filled by melting snow and heavy rains. The deluge continued for months, overtopping levees and turning farms into lakes. When the water finally receded, farmers found tree limbs, trash and, in some places, a 2- to 3-feet of sand covering their land.

Agriculture Secretary Tom Vilsack said the application deadline set by Congress led to the money being primarily focused on disasters that happened earlier in 2011 but that didn't mean farmers who suffered later damage wouldn't get help.

"I don't think it's accurate to suggest that the folks in northwest Missouri aren't going to get help and assistance," he said during a visit to Kansas City to tout President Barack Obama's State of the Union address. "We will continue to work with our existing programs to give them as much help as possible."

The deadline for the next round of funding is Jan. 31, but it's unclear how much money will be given and whether it will come in time to help farmers and communities make repairs before this spring's planting season.

The farmers' and communities' best chance of getting some of the $215 million already allocated will be if other communities don't use all the money they requested. Unused money is placed in a pot that could be redistributed, and about $452,000 leftover from past storms already has been used to help farmers in northwest Missouri, where 207,000 acres flooded last year.

David Sieck, who has about 1,500 acres of corn and soybeans near Glenwood, Iowa, said it really bothered him that an arbitrary deadline was keeping some farmers and communities getting immediate access to the money. About half of land is in river bottoms and about three-fifths of that flooded last year.

"Never ever do I remember a prolonged flood for 3 ? months," he said.

Missouri and Utah shared the bulk of the $308 million in disaster aid announced last week. Missouri received $50 million, while Utah got $60 million to deal with two rounds of flooding.

Along with $35 million from the watershed program, Missouri received $15 million from the USDA's Emergency Conservation Program, which helps clear debris and grade farmland. Much of that money will go to the southeast portion of the state where the corps blew three holes in the Birds Point levee in May to relieve pressure at the height of flooding that threatened nearby Cairo, Ill.

"We appreciate the work of everyone involved in securing it for Missouri and we are glad that farmers throughout the state are going to benefit, but the people in northwest Missouri are not," said Blake Hurst, president of the Missouri Farm Bureau.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/386c25518f464186bf7a2ac026580ce7/Article_2012-01-27-Agriculture-Disaster%20Funds/id-e1734e72e334490f96c4b1574bb97151

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Friday, January 27, 2012

Bank of America extends drop in mortgage rankings (Reuters)

(Reuters) ? Bank of America Corp (BAC.N) was the fourth-biggest U.S. mortgage lender in the fourth quarter of 2011, continuing its descent in the rankings after it stopped buying loans made by smaller banks.

The second-largest U.S. bank in 2008 became the biggest mortgage originator after buying Countrywide Financial, but it has been gradually paring back the business as it copes with losses from the disastrous acquisition.

Citigroup Inc (C.N) moved ahead of Bank of America in the fourth quarter, with about $23 billion in mortgage loans, slightly ahead of Bank of America's $22.4 billion in loans, according to data released Thursday by industry publication Inside Mortgage Finance.

Wells Fargo & Co (WFC.N) remained the largest mortgage originator by far, making $120 billion in loans. That meant it made 30 percent of all loans in the quarter, up from about 27 percent in the third quarter.

JPMorgan Chase & Co (JPM.N) was the second-biggest lender in the quarter, with about $42 billion in loans.

In October, Bank of America said it was exiting correspondent lending by year's end, stripping out about half of its production as it focused on making loans directly to its own customers. The bank now has about 6 percent market share, less than the 7.8 percent it held in 2007 before buying Countrywide.

That acquisition, which brought to the banks loads of bad loans and related lawsuits, has not worked out on two fronts for Bank of America, said Guy Cecala, publisher of Inside Mortgage Finance.

"Not only are they looking to abandon the servicing side of the business, they're looking to abandon the origination platform," he said.

While the bank is missing out on newer loans made under stricter underwriting standards, decreasing its profile in the mortgage business is likely good for its stock price, he said. "It will be welcomed by shareholders and analysts," Cecala said.

After falling 58 percent in 2011, Bank of America's shares are up more than 30 percent this year.

In a CNBC interview Wednesday at the World Economic Forum in Switzerland, Bank of America Chief Executive Officer Brian Moynihan said exiting the correspondent business was a good move because the company was no longer providing its balance sheet to other banks' customers.

"We've shaped our mortgage business much smaller," he said. "We've really got it back (to) our core retail customer... We'll continue to do that."

(Reporting By Rick Rothacker; Editing by Maureen Bavdek, Gary Hill)

Source: http://us.rd.yahoo.com/dailynews/rss/personalfinance/*http%3A//news.yahoo.com/s/nm/20120126/bs_nm/us_bankofamerica_mortgages

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Okla. hospital must pay $1M to Garth Brooks (AP)

CLAREMORE, Okla. ? An Oklahoma hospital that failed to build a women's health center in honor of Garth Brooks' late mother must pay the country singer $1 million, a jury has ruled.

Jurors on Tuesday evening ruled that the hospital must return Brooks' $500,000 donation plus pay him $500,000 in punitive damages. The decision came in Brooks' breach-of-contract lawsuit against Integris Canadian Valley Regional Hospital in Yukon. Brooks said he thought he'd reached a deal in 2005 with the hospital's president, James Moore, but sued after learning the hospital wanted to use the money for other construction projects.

Jury member Beverly Lacy said she voted in favor of Brooks because she thought the hospital went back on its word. As far as the punitive damages, she said: "We wanted to show them not to do that anymore to anyone else."

The hospital argued that Brooks gave it unrestricted access to the $500,000 donation and only later asked that it build a women's center and name it after his mother, Colleen Brooks, who died of cancer in 1999.

"Obviously we are disappointed, particularly with the jury's decision to award damages above and beyond the $500,000," Integris spokesman Hardy Watkins said. "We're just glad to see the case come to a resolution."

Brooks called the jurors "heroes" and said he felt vindicated by their verdict.

"I no longer feel like I'm crazy," he said.

During the trial, Brooks testified that he thought he had a solid agreement with Moore. Brooks said the hospital president initially suggested putting his mother's name on an intensive care unit, and when Brooks said that wouldn't fit her image, Moore suggested a women's center.

"I jumped all over it," Brooks told jurors in tearful testimony. "It's my mom. My mom was pregnant as a teenager. She had a rough start. She wanted to help every kid out there."

His attorney told the jury during closing arguments that Brooks kept his end of the agreement.

"This case is about promises: promises made and promises broken," lawyer John Hickey told jurors shortly before they started deliberating. "Mr. Brooks kept his promise. Integris never intended to keep their promise and never built a new women's center."

But hospital attorney Terry Thomas said Brooks' gift initially came in anonymously and unrestricted in 2005. He also noted that Brooks couldn't remember key details of negotiations with the hospital's president ? including what he'd been promised ? when questioned during a deposition after filing his lawsuit in 2009.

"At most, it was a misunderstanding between these two," Thomas told jurors during his closing argument. "Am I calling Mr. Brooks a liar? Absolutely not. It's perfectly understandable that he does not remember these events."

The jury began deliberating Tuesday afternoon in Rogers County District Court, and the judge told jurors she wanted them to work as late as midnight to come to a decision.

Before the verdict was read, Brooks said the day had been emotional. The country music star said he was simply trying to honor his mother.

"This little pistol, she deserves nothing but good," Brooks said.

Source: http://us.rd.yahoo.com/dailynews/rss/music/*http%3A//news.yahoo.com/s/ap/20120125/ap_en_mu/us_people_garth_brooks

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Thursday, January 26, 2012

Rascal Flatts' Jay DeMarcus, wife expect 2nd child (AP)

NASHVILLE, Tenn. ? Rascal Flatts bassist Jay DeMarcus and his wife Allison are expecting their second child.

Jay DeMarcus calls the pregnancy "a huge surprise" in a Wednesday news release. The baby is due this summer and the couple is unsure whether daughter Madeline Leigh, born in December 2010, will have a little brother or sister.

Allison, a former Miss Tennessee who is an on-air personality at CMT, says they are preparing for "many sleepless nights ahead."

Rascal Flatts is currently on tour and recently announced the release of its next album, "Changed," on April 3.

___

Online:

http://www.rascalflatts.com

Source: http://us.rd.yahoo.com/dailynews/rss/music/*http%3A//news.yahoo.com/s/ap/20120125/ap_en_mu/us_people_rascal_flatts

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Subscription Billings Startup Recurly Raises $6 Million

recurlyRecurly, a startup that makes it easy for other companies to manage their subscription billing, has raised $6 million in a Series A financing round led by BV Capital, and including Polaris Venture Partners, Harrison Metal Capital and FreeStyle Capital. This brings Recurly's total funding to $8 million. Recurly's service allows businesses to quickly implement a subscription billing system, handling tasks like credit card number storage (it also supports integration with financial software like QuickBooks). Recurly automates many of the complexities involved with subscription billing management, such as customer upgrades and downgrades, credit card errors and declines, automated customer communications, and customer retention management.

Source: http://feedproxy.google.com/~r/Techcrunch/~3/QLH-HZGMIjE/

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Wednesday, January 25, 2012

The Real Housewives of Atlanta Recap: NeNe Tries to Bring Marlo to Africa, Kim Tries to Lose Weight


The Real Housewives of Atlanta are headed to South Africa, but apparently not before an entire episode dedicated to prep and packing. We recap who's staying, who's going, and who's itching for a fight in our THG +/- review.

NeNe's spending more time with her new BFF Marlo.

NeNe admits that they're both label whores; they bond over shopping and shoes. Marlo gives NeNe a tour of her home and I have to say, if Marlo sleeps with men to make her money she's obviously very successful at it.

NeNe and Marlo

She even gives her new gal pal one of her many Chanel bags even after NeNe calls Chanel an old lady bag. What are friends for? Plus 8.

NeNe's still waffling about whether to go to Africa and Marlo says she'd love to go on the trip ... so NeNe invites her along. Minus 10. Can NeNe do that? Hasn't Phaedra organized this trip? Yup but that doesn't stop NeNe from telling Marlo to come along.

Across town we've got the shape up wars. Both Kandi and Kim have to lose a few pounds but their going about it in completely different ways.

Kandi gets her self a power trainer who put her on a scale and then runs her through a boot camp style obstacle course. Plus 12. If she can keep that kind of workout up she'll be in killer shape.

Kroy tells Kim exercise is the only way to go. Kim's got other ideas. The quick fix girl gets a slim wrap that makes her look like a mummy on a trampoline.

To her credit she loses over 10 inches. Of course Kroy's no fool and knows you don't lose five pounds of fat by wrapping yourself in ace bandages. The water weight will be back in a couple of days but 10 inches gone looks good to Kim.

So how does she celebrate? With pizza of course. Plus 10. I love Kim. 

Kim Zolciak Underwear Pic

Kroy's got to head to training camp for a month and the two of them are a little love sick at the thought of it. Kim plans a romantic evening at home.

If only she hadn't employed her parents to help her get it set up. The bath has bubbles and rose petals. She and Kroy are lit by candlelight and then Kim's dad walks in and tells them to be careful or name the kid after him. Minus 15.

That was worse than a mood killer. That was almost creepy.

Cynthia and Peter are still working on communicating better. All I see is Peter being pouty because she's running off to Africa without him and Cythina's glowing at the thought of getting away. 

Cynthia laments that the last time she was in Africa she was too broke to see very much. This time she's going to enjoy the real Africa ... apparently that means high end hotels and upscale safaris. I think she needs to check her definition of real. Minus 8.

Phaedra prepares for the trip and Apollo gets ready for daddy day care as it will be just the boys for 10 days. Plus 10 because little Ayden is just too darn cute.

Phaedra's a little worried about NeNe coming along, little does she know that she's bringing some backup.

Phaedra and Apollo Photo

As everyone heads to the airport, NeNe's the last to arrive…but wait. Here comes Marlo. Plus 13 for the looks on their faces. Sheree and Phaedra are practically catching flies their jaws drop so low.

Kandi thinks NeNe felt like she needed some muscle and  it looks like Marlo's her enforcer in heels.

EPISODE TOTAL: +20! SEASON TOTAL: -209!

Next week, the safari officially begins and the claws come out. Let's see how many of the Real Housewives make it back to Atlanta in one piece.

Source: http://www.thehollywoodgossip.com/2012/01/the-real-housewives-of-atlanta-recap-shaping-up-and-shipping-out/

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Japan manufacturers brace for euro zone breakup: Reuters poll (Reuters)

TOKYO (Reuters) ? Japanese manufacturers are bracing for a possible breakup of the euro zone, according to a Reuters poll released on Monday, with 65 percent saying they see a need to prepare for the currency block's partial or complete collapse.

Europe's two-year old sovereign debt crisis, which has left Greece teetering on the edge of default, has taken a heavy toll on Japanese corporate sentiment as exporters struggle with a strong yen and slower growth in China.

When manufacturers were asked if they are considering changing business plans in Europe, 31 percent of those responding said they are in the process of doing so or have already made changes. Of those firms, 90 percent said they could scale back operations or have already done so.

Many manufacturers were also looking to shrink operations in China and North America in favor of expanding in other Asian countries to tap demand for their goods, the survey showed.

Euro zone finance ministers will decide on Monday what terms of a Greek debt restructuring they are ready to accept as part of a second bailout package for Athens after negotiators for private creditors said they could not improve their offer.

Resolving the issue of a Greek debt swap is key to putting Athens' debt on a sustainable path and avoiding a chaotic default that could threaten the whole currency bloc.

The poll, taken January 5-17, surveyed 400 big firms, of which 247 responded. The questions were part of the Reuters tankan for January, which was published on Friday.

The tankan, which is closely correlated with the Bank of Japan's quarterly tankan survey of business sentiment, showed manufacturers remained pessimistic about business conditions for the second straight month in January.

Manufacturers showed concern about China's growth prospects, with 50 percent saying they could change their business strategy as China's red-hot growth cools. Of those firms, 65 percent say they could shrink operations.

China's economy is expanding at its weakest pace in 2-1/2 years, with sequentially softer annual growth in the last four quarters seen spilling over into the first three months of 2012, leading many analysts to expect the worst full-year growth in a decade.

The poll suggested half of Japanese manufacturers are taking another look at Asian markets excluding China, and 52 percent of those firm want to expand in an attempt to reduce dependence on the Chinese market.

Only 24 percent of manufacturers were considering changing their North American strategy, but 61 percent of those firms said they are likely to scale back.

Manufacturers were pessimistic on the Japanese market. One in three are reconsidering domestic business plans. Of those, 78 percent said they are likely to shrink operations.

Non-manufacturers, which include construction firms and retailers, were more positive on the domestic economy as they are likely to benefit from reconstruction following last year's record earthquake and the worst nuclear crisis in 25 years.

The survey showed that 75 percent of non-manufacturers are looking to change their domestic strategy, with 60 percent of those firms leaning toward expansion.

When manufacturers and non-manufacturers are combined, almost 70 percent say the global economy is the biggest risk to their outlook, followed by 57 percent who said they are worried about the rising yen.

(Reporting by Izumi Nakagawa; Writing by Stanley White; Editing by Michael Watson)

Source: http://us.rd.yahoo.com/dailynews/rss/eurobiz/*http%3A//news.yahoo.com/s/nm/20120123/bs_nm/us_japan_economy_tankan

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Tuesday, January 24, 2012

Digital Spies: The Alarming Rise of Electronic Espionage

The first warning that hackers had penetrated the American oil company came soon after the initial breach, in the summer of 2009. The computer help desk received complaints from employees who were locked out of their accounts or whose computers had already been logged onto.

Then the complaints abruptly ceased: The digital spies had obtained an administrator password and were intercepting help-desk tickets, unlocking accounts, and notifying users that their problems had been fixed. With that access, the hackers copied thousands of confidential emails?including those of top executives?and transmitted them to China in massive files late at night, after the oil company's employees had left for the day.

By the time the FBI informed the company of suspicious network traffic in the summer of 2010, Chinese firms had outbid the oil company on several high-stakes acquisitions by just a few thousand dollars. But it could have been far worse: For months, malware that allowed the hackers to take over terminals had been burrowing deeper into the company's systems and had wormed its way into computers that controlled oil-drilling and pipeline operations.

"People were alarmed that their email was compromised, but the hackers could have crippled the business," says Jonathan Pollet, the founder of Red Tiger Security in Houston. In early 2011, Pollet helped the oil company identify some of the hackers' breaches; he refused to name the company, citing a confidentiality agreement.

The example Pollet cites is just one incident in an ongoing, aggressive campaign of electronic espionage that costs U.S. firms billions of dollars, endangers our military secrets, and threatens to erode our technological edge, as computer hackers?often but not exclusively traced to China?help their clients, and their countries, gain the upper hand in business deals and steal intellectual property. (An October 2011 report prepared for the Director of National Intelligence titled "Foreign Spies Stealing U.S. Economic Secrets in Cyberspace" explicitly accuses China and Russia of hacking U.S. companies, calling Chinese hackers "the world's most active and persistent perpetrators of economic espionage.")

The phenomenon blurs the lines between white-collar crime, international spying, and even acts of war, but the attacks are known in the intelligence community as advanced persistent threats, or APTs. Well-financed, patient teams of hackers that U.S. intelligence agencies believe are backed by foreign governments now constitute a major national security risk. The hackers use tactics that are inherently difficult to trace and choose targets that have deep roots within U.S. infrastructure, government, and military. Recent news accounts have identified APT victims that include Google, ExxonMobil, Royal Dutch Shell, Morgan Stanley, Dow Chemical, Symantec, Northrop Grumman, and Lockheed Martin, to name just a few.

Private industry is understandably reluctant to reveal such breaches, even to the government: If a digital attack strikes fear in the hearts of a company's executives, one can only imagine how it would make shareholders feel. But digital spying is like a cockroach infestation?for every one that you see, thousands thrive out of view. "I can't find an organization, an entity, a business, or a department that hasn't suffered from cyber intrusions," says Gordon M. Snow, assistant director of the FBI's Cyber Division. "If they really believe they haven't, they're just not aware of it yet."

In August 2011, a report by the security firm McAfee detailed hacks into some 72 public and private computer networks in 14 countries and warned of "the biggest transfer of wealth in terms of intellectual property in history."

Technology theft is the most common motive for digital espionage, but China and other nations have used it to squelch internal political dissent as well. Stolen source code from Google was used to hack into the accounts of Chinese dissidents, and after an Iranian hacker broke into Dutch security firm DigiNotar, the stolen technology was used to help his government spy on troublemakers in Iran. These attacks can cause collateral damage that compromises the security of everyone online. Digital security certificates from DigiNotar were part of the basic verification system of the Internet. If you can fake one of those, you can fool a browser into thinking any site is safe.

A History of Hacks


The United States itself is no slouch at cyber spying. The National Security Agency and the Pentagon possess the most sophisticated signals intelligence and digital warfare technology in the world. That gives us the ability to spy on foreign cellphone calls, shut down enemy air defenses, or even remotely cause equipment in an adversary's weapons facility to self-destruct.

But former U.S. officials insist the government does not engage in economic espionage or intellectual property theft from foreign companies. In part, they contend, that's because there is little IP we would want to steal, and to do so would undercut our efforts to discourage such theft by other nations. Private U.S. companies, meanwhile, would be breaking U.S. law if they hacked into the servers of state-owned competitors in places like China and Russia?although some U.S. multinationals have been accused of dirty business overseas (see "Who's Spying on Whom?" page 55). "The U.S. has an enormous stake in the integrity of the intellectual property regime," says Joel Brenner, former head of U.S. counterintelligence during the Bush and Obama administrations and the author of America the Vulnerable, a book on digital espionage published last September. "Many of our adversaries don't believe we don't do this. But it's really true. We don't." According to James Lewis, a digital security expert at the Washington, D.C.?based Center for Strategic and International Studies, this apparent unwillingness to retaliate presents "an asymmetric disadvantage" that our rivals are exploiting to win an emerging digital cold war.

Computer espionage has a history almost as long as that of the modern Internet. In the late 1980s, the German hacker Markus Hess and several associates were recruited by the KGB to penetrate computers at American universities and military labs. They made off with sensitive semiconductor, satellite, space, and aircraft technologies. Today, China, Israel, and Russia are reportedly the most aggressive about stealing secrets. But China is playing a game of a different magnitude. "The Chinese didn't create this problem," Brenner says. "But there's no question China is the worst offender now. They are all over us. It's just relentless."

Experts believe today's attacks on U.S. industry are an extension of a series of attacks on American military computer networks that took place in the late '90s and early 2000s. The assault has netted the Chinese sensitive military technologies that might one day be used against us. Then, as now, the Chinese government has vehemently denied that it has any state-sponsored hacking program, calling U.S. allegations groundless and irresponsible.

Plausible deniability is precisely what makes digital espionage such an effective tool. It's difficult to detect and impossible to prove?and thus can't be used to justify retaliation. Digital-security experts call this the attribution problem. "At most, you know the immediate computer involved in attacking you or receiving the stolen data?and sometimes you don't even know that," says Columbia University computer scientist Steven Bellovin, who advises the Department of Homeland Security on the issue. "But you don't know who actually controls the computer. It could be another hacked computer someplace that somebody else is controlling from somewhere else."

Still, few buy the Chinese denials. There have simply been too many attacks traced to the mainland. Last spring, secret State Department cables obtained by WikiLeaks and made public by Reuters detailed a widespread digital spying operation, Byzantine Hades, linked to the People's Liberation Army Chengdu Military Region First Technical Reconnaissance Bureau, an electronic espionage unit of the Chinese military. According to the cables, Byzantine Hades targeted not only the U.S. government and industry, but also high-level European officials. The Chinese hackers even managed to remotely activate the computer microphones and Web cameras of French officials so they could peek in on everything from office gossip to high-level diplomatic planning sessions. In the past, surveillance like that would have required spies to know where their targets were staying and mic the room?but in the age of cellphones and laptops, spies can listen in on foreign officials half a world away.

Source: http://www.popularmechanics.com/technology/how-to/computer-security/digital-spies-the-alarming-rise-of-electronic-espionage?src=rss

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State higher education spending sees big decline

(AP) ? State funding for higher education has declined because of a slow recovery from the recession and the end of federal stimulus money, according to a study released Monday.

Overall, spending declined by some $6 billion, or nearly 8 percent, over the past year, according to the annual Grapevine study by the Center for the Study of Education Policy at Illinois State University. The reduction was slightly lower, at 4 percent, when money lost from the end of the American Reinvestment and Recovery Act was not taken into account.

The funding reductions, seen across nearly every state, have resulted in larger class sizes and fewer course offerings at many universities and come as enrollment continues to rise.

A report released by the National Science Board last week found similar reductions in state higher education spending, with nearly three-quarters of the nation's 101 top public research universities experiencing cuts in state funding between 2002 and 2010.

"It's quite severe," said Jose-Marie Griffiths, chairwoman of the National Science Board committee that produced the report and vice president for academic affairs at Bryant University in Smithfield, Rhode Island. "The question is, are they ever going to recover to the level they were before? I think all of us are somewhat concerned because the future is a little bit uncertain."

Only nine states reported increases in total state higher education spending, including the federal stimulus money. In the 41 states where there were funding reductions, declines varied drastically, from about 1 percent in North Carolina to 41 percent in New Hampshire. The hardest-hit states include Arizona, Wisconsin and Louisiana, where spending reductions were nearly 20 percent or higher as federal stimulus money dried up.

James Palmer, editor of the Grapevine survey, said state capacity to finance higher education had also been reduced by diminished tax revenues.

In a statement, the State Higher Education Executive Officers Association said states with the largest declines will likely see higher tuition rates and more pressure to recruit out-of-state students. That raises concerns about access to higher education, particularly for those students who need financial aid, another area where state support has declined.

Educating more students from out of state and less access will have "implications for the availability of an adequately trained workforce in those states," the organization said.

The group specifically highlighted California, where a $1.5 billion spending reduction, including stimulus funds, over the past two years represents 26 percent of the national decline.

Florida is another state that has seen sustained spending cuts. Over the past five years, state support for higher education has declined 17.5 percent, according to the study. As the state proportion of funding has declined, universities have relied more on tuition, now nearly 50 percent of their operating budget.

Overall state funding appropriations in Florida are about the same as they were 10 years ago, after having risen leading up to 2007-2008. Meanwhile, enrollment has increased by more than 24 percent.

To compensate for the loss, Florida universities have merged departments, instituted hiring freezes and used more adjunct professors, among other actions.

"Each university has been diligent in developing cost-saving strategies to help offset ? but not fully replace ? the budget shortfalls," according to a brief from the Board of Governors, which oversees Florida's State University System.

The National Science Board noted the funding decline could have implications for how well the United States is able to educate its workforce and be competitive in a globalized, knowledge-based economy.

Already, the United States has been trailing Asia in science and engineering degrees. Fifty-six percent of all engineering degrees were awarded in Asia in 2008, compared with 4 percent in the U.S. The United States produced 248,000 graduates in the fields of natural science and engineering, while China produced 1 million, a dramatic increase from 2000, when they awarded 280,000. South Korea, Taiwan and Japan produced 330,000 natural science and engineering graduates in 2008 ? again, a larger number than the U.S., even though their population is smaller.

"Right now our aspirations for higher education I think far exceed the vitality of our economy," Palmer said, referring to the push to increase access to college and degree completion. "In other words, we can't depend on that state funding as the way we're going to meet those goals."

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/386c25518f464186bf7a2ac026580ce7/Article_2012-01-23-Higher%20Education%20Funding/id-1dd2404de45a4f96a61af7576ed7223a

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Monday, January 23, 2012

Compromise boosts prospects for FAA bill passage (AP)

WASHINGTON ? Lawmakers reached a compromise Friday that toughens the rules airline and railroad workers must follow to hold union elections, boosting prospects for passage of a long-term funding plan for the Federal Aviation Administration, congressional aides said.

The compromise ? negotiated primarily between Senate Majority Leader Harry Reid, D-Nev., and House Speaker John Boehner, R-Ohio ? was the most contentious of a handful of unresolved issues holding up passage of an FAA bill. The issue was partly responsible for a standoff between Senate Democrats and House Republicans last summer that led to a two-week partial shutdown of the FAA, including the furlough of nearly 4,000 workers.

The Republican-controlled House was insisting the FAA bill include language to overturn a 2010 National Mediation Board ruling allowing airline workers to form a union by a simple majority of those who voted in the election. Prior to that, workers who didn't vote were treated as "no" votes, making it possible for a union to lose an election even with the support of a majority of those voting.

With Democrats adamant that the board's ruling must stand, Republicans dropped their demand in exchange for concessions that are likely to be less troublesome to labor.

The compromise reached Friday would require that 50 percent of a company's workers indicate support for holding an election to form a new union before a vote can be held. Currently, the threshold is a 35 percent show of support ? usually by workers signing cards ? in order to hold an election. Many unions won't go ahead with an election without a 50 percent show of support, anyway, Democrats said.

Another change would allow for a run-off election between the top two vote-getters, even if one of those two is the option of "no union." And, the mediation board would have to hold a public hearing before making a significant rule change.

The board oversees only labor matters in the airline and railroad industries. The National Labor Relations Board handles most other industries.

Most airline and railroad workers are already unionized. The mediation board's ruling primarily affected Delta Air Lines, where flight attendants have made several unsuccessful attempts to form a union.

Justin Harclerode, a spokesman for the House Transportation and Infrastructure Committee, said it's unprecedented to include mediation board reforms in an FAA bill.

"We can now move ahead on this critical infrastructure measure that will help create jobs, modernize our nation's air traffic control system, and reduce the size of government," he said.

Long-term operating authority for the FAA expired in 2007. The FAA has been limping along since then under a series of 22 short-term extensions at the same time the agency is in the middle of a transition from an air traffic control system based on World War II-era radar technology to a satellite-based system. The latest extension is due to expire on Jan. 31.

Last spring, the House passed an FAA bill that authorizes spending $59 billion over four years; the Senate approved a two-year, $34 billion measure.

Most of the differences between the two bills have been resolved over months of negotiations. The few remaining differences aren't likely to be obstacles to final passage of a bill, lawmakers and aviation industry lobbyists have said.

Source: http://us.rd.yahoo.com/dailynews/rss/uscongress/*http%3A//news.yahoo.com/s/ap/20120120/ap_on_go_co/us_faa_bill

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Female Ark. prison guard killed checking on inmate (AP)

LITTLE ROCK, Ark. ? A convicted murderer stabbed a female guard to death at an east Arkansas prison Friday while she was investigating whether he had an unauthorized pair of shoes, a prison spokeswoman said.

Sgt. Barbara Ester, 47, was stabbed in the side, abdomen and chest at about 12:30 p.m., said Shea Wilson, a spokeswoman for the Arkansas Department of Correction. Ester died about 3 p.m. at a hospital in Memphis, Tenn., about 40 miles away.

Ester, a 12-year veteran of the correction department, was a property officer who investigated whether inmates had contraband items. Wilson said the guard had received a report that Johnson had a pair of contraband shoes.

"This is obviously very difficult for the department when something tragic like this happens," Wilson said. "Our thoughts and prayers are with Sgt. Ester's family. These officers ? it's a tight-knit workplace. They look out for each other and are there together for a lot of hours of the day, so this is very difficult for everyone."

Wilson said the prison was locked down after the attack and that the inmate, Latavious Johnson, was being moved to the state's maximum-security unit at Varner. She said all the other inmates have been accounted for. Prison officials haven't said specifically what Johnson used during the attack, only that it was an object that had been sharpened.

Johnson, 30, was serving a life sentence for first-degree murder out of Jefferson County. He was sentenced in 2000 for killing his father. Prosecutors said Johnson was 18 at the time of the crime.

Wilson said Johnson had had several disciplinary infractions, including one this week for not obeying orders, but hadn't previously attacked a guard.

"We will move him to the supermax (prison) so he will be out of that environment ... He needed to be out of that environment," Wilson said.

Arkansas State Police and the prison's internal affairs staff were investigating the stabbing. Wilson said authorities would turn over their information to prosecutors, who will determine whether to file charges against the inmate.

Source: http://us.rd.yahoo.com/dailynews/rss/us/*http%3A//news.yahoo.com/s/ap/20120121/ap_on_re_us/us_prison_guard_killed

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Saturday, January 21, 2012

Intel results exceed Street, capex jumps (Reuters)

SAN FRANCISCO (Reuters) ? Intel Corp's quarterly results modestly beat Wall Street's expectations as it faces a tough PC market, and the chipmaker said it was sharply increasing its capital expenditures in an apparent bid to speed up its entry into tablets and smartphones.

Intel warned last month that the damage wrought by flooding in Thailand - the world's largest producer of computer drives - would curtail December-quarter earnings in a PC market already hit by a weak economy.

Adding to its troubles, Intel has failed to find a foothold in smartphones and tablets, where processors based on ARM Holdings' power efficient chip designs are widely used.

Rushing to speed up its development of competitive chips for smartphones and tablets, Intel said it would boost capital expenditures in 2012 to $12.5 billion, plus or minus $400 million. Last year its capital expenditures were $10.7 billion.

"The biggest surprise is the capex for the new year," said Evercore Partners analyst Patrick Wang. "They're investing to catch up and not only be at parity but exceed where the handset incumbents are."

Lenovo and Motorola Mobility have agreed to use Intel's new Medfield chip in upcoming smartphones, and investors are keen to see how the new devices do with consumers.

Intel's main PC client group raised its revenue 17 percent in the December quarter to $9 billion. Its revenues from selling server chips for data centers rose 8 percent.

After flooding in Thailand ruined factories and sensitive machinery, shortages of the components are expected to persist through the first half of 2012 and disrupt PC production.

"Last quarter they underestimated the flood impact. I am wondering if they are still underestimating the Thailand flood impact, and the market's ability to ramp back up to get to these numbers," said RBC analyst Doug Freedman.

Upbeat earnings forecasts by Linear Technology, Xilinx and TSMC this week have made investors cautiously optimistic that a drawdown of inventories in the broader chip industry, including semiconductores used in automobiles, communications and factories, may be ending, clearing the way for higher sales.

SKINNY LAPTOPS

Hoping to safeguard its position in PCs, Intel this year will kick off its largest marketing campaign since 2003, with "Ultrabooks" - instant-on super-thin laptops it hopes can stand up to the likes of Apple's Macbook Air, while giving off some of the technological chic the iPad and other tablets exude.

Fears of falling PC sales hurt the shares of Microsoft, Dell Inc and Intel for much of 2011. Intel's stock has recovered over the past three months, partly due to the chipmaker's relatively high 3.3 percent dividend yield.

Still trading at a modest 10.8 times expected earnings, the shares recently hit a 52-week high.

Intel said revenue in the current quarter would be $12.8 billion, plus or minus $500 million. Analysts on average had expected current-quarter revenue of $12.770 billion, according to Thomson Reuters I/B/E/S.

The world's leading chipmaker said revenue in the fourth quarter was $13.9 billion, up 21 percent and slightly higher than the $13.718 billion expected.

GAAP net income in the fourth quarter was $3.4 billion, up 6 percent. GAAP earnings per share were 64 cents. Analysts had expected 61 cents.

Intel had a gross margin of 64 percent in the fourth quarter, with a non-GAAP gross margin of 65 percent. Analysts on average expected 64.6 percent.

Shares of Intel were unchanged after its earnings report from a close of $25.63, up 0.95 percent on Nasdaq.

(Reporting by Noel Randewich,; Additional reporting by Poornima Gupta; Editing by Gary Hill)

Source: http://us.rd.yahoo.com/dailynews/rss/economy/*http%3A//news.yahoo.com/s/nm/20120119/bs_nm/us_intel

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Earthquake hits northeast Iran, 100 injured (Reuters)

TEHRAN (Reuters) ? About 100 people were injured when an earthquake measuring 5.5 on the Richter scale hit northeastern Iran on Thursday, state television reported.

The epicenter of the quake, which struck at 4:05 p.m., was 10 km (6 miles) outside the city of Neyshabur, some 70 km from the holy city of Mashhad, the official IRNA news agency said.

There had so far been 36 aftershocks since the main quake, IRNA said, adding that some buildings had been damaged and windows shattered in villages near Neyshabur.

"So far 100 people have been injured. Most of them were treated quickly and some have been hospitalized," state television quoted a local official as saying, adding that rescue workers were in the area.

The news agency ILNA reported that the quake lasted seven seconds and was the strongest felt in the region for 10 years.

Many parts of Iran are prone to earthquakes. At least seven people were killed in a 6.5-magnitude quake that jolted the southeast in 2010, the same region where a huge tremor killed some 31,000 people in the city of Bam in 2003.

(Writing by Zahra Hosseinian, Editing by Tim Pearce)

Source: http://us.rd.yahoo.com/dailynews/rss/world/*http%3A//news.yahoo.com/s/nm/20120119/wl_nm/us_iran_quake

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Friday, January 20, 2012

sneakernews: How do these stack up the Kobe x LeBron 'Galaxy'? http://t.co/K0BygybS

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