Archive - Jul 2008

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Boasting big plans, startup search engine Cuil (pronounced "cool") launched on Monday. The Cuil in the name is pronounced "Cool," and derives from an old Irish word for knowledge. Tom Costello, a co-founder and the CEO of the company, is from Dorgheda, Ireland. The company sold itself on having indexed more pages than Google, ranking based on context rather than on popularity, and displaying results organized by concept within a beautiful user interface. There was just one problem: when the search engine launched, it didn't work very well. Cuil's site was down intermittently throughout the day on Monday, and even when the site was up, it sometimes returned no results for common queries, or failed to produce the most relevant or up-to-date results. For example, as of Wednesday morning, searching Cuil for its own name returns nothing on the first results page that is related to the engine itself, in spite of the buckets of press it got this week.  read more »

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The Los Angeles City Council has approved a law that bans fast-food restaurants from opening in South LA. People who live in this area have the largest obesity problems. Approximately one in 3 children from South LA is obese, compared to one in five in the rest of the city. Nearly one-third of residents in the city's south are obese, compared with 19% for the overall Los Angeles area and 14% in the wealthier west side area.

The main thing responsible for this condition is poverty, as well as the fact that 73 percent of the restaurants in the southern part of the city are fast-food ones and offer meals that are high in calories and cholesterol. "There's one set of food for one part of the city, another set of food for another part of the city, and it's very stratified that way," Marqueece Harris-Dawson, a community leader in south Los Angeles, told the Washington Post this month.

The new law will ban the opening of any fast-food restaurants for a year, but there is the possibility that this period will be increased to two years. According to the new law, “any establishment which dispenses food for consumption on or off the premises, and which has the following characteristics: a limited menu, items prepared in advance or prepared or heated quickly, no table orders and food served in disposable wrapping or containers" is considered to be a fast-food restaurant.  read more »

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WASHINGTON - The White House predicted yesterday that President Bush would leave a record $482 billion deficit to his successor, a sobering turnabout in the nation's fiscal condition from 2001, when Bush took office after three consecutive years of budget surpluses.

The worst may be yet to come. The deficit announced by Jim Nussle, the White House budget director, does not reflect the full cost of military operations in Iraq and Afghanistan, the potential $50 billion cost of another economic stimulus package, or the possibility of steeper losses in tax revenues if individual income or corporate profits decline.

The new deficit numbers also do not account for any drains on the national treasury that might result from further declines in the housing market. The White House forecast was prepared before passage of the huge housing assistance package that Bush has promised to sign. That legislation would put taxpayer money at risk in numerous ways, especially if housing prices continue to decline.

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China now has the world's largest net-using population, say official figures. The news comes from the China Internet Network Information Center (CNNIC), which stated that 253 million Chinese went online by the end of June of this year. The total represents a 56.2% year-on-year growth - up by 91 million from June of last year, and up 43 million from December. The figure is higher than the 223 million that the US mustered in June, according to Nielsen Online.

Net penetration in the US stands at 71% compared to 19% in China suggesting it will eventually vastly outstrip the US. The development is significant because the US has had the largest net-using population since records of how many people were online started to be kept.

"This is the first time the number has drastically surpassed the United States, becoming the world's number one," said a statement from the CNNIC, the nation's official net monitoring body.

The 2008 figure is up 56% in a year, said CNNIC. Analysts expect the total to grow by about 18% per annum and hit 490 million by 2012.

About 95% of those going online connect via high-speed links. Take up of broadband has been boosted by deals offered by China's fixed line phone firms as they fight to win customers away from mobile operators. China's mobile phone-using population stands at about 500 million people.

Despite having a greater number of people online, China's net economy still has a long way to go to match or exceed that of the US or even that of South Korea.

Breaking it down further, 214 million of those on the Internet in China accessed via a broadband Internet connection.

The percentage of the population in China on the Internet now stands at 19%, still way below that of the United States, at 71%.

Comparing this to previous numbers, just in 2006 alone, there were 137 million Internet users in China. This shows that the number of people in the Internet in the country continues to grow at a rapid pace.

People under the age of 30 in China make up 69% of the total Internet users.

Figures from Analysys International said China's net firms reported total revenues of $5.9bn in 2007. By contrast net advertising revenue alone for US firms in 2007 stood at $21.2bn.

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Photos courtesy of dBTechno, AP Photo/Eugene Hoshiko, and DanWei.org

Original Source: dBTechno and BBC News

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We never did get the hovercrafts we were promised as kids, but we're getting closer. Imagine sailing above the Bourne Bridge on your way to the beach, while consuming less gas than the SUVs stuck beneath you in traffic.

A compact, two-seat plane with folding wings that can be pulled behind a car on a trailer will premiere at an air show in Wisconsin next week in a development that heralds a new genre of flying machines designed to bring the power-boating experience to the sky. Developed by two Stanford business school graduates, Kirk Hawkins and Steen Strand, the ICON A5 is the latest and arguably coolest plane to take to the skies under a new classification that the Federal Aviation Administration calls light-sport aircraft.

The A5's top speed is 120 miles per hour, and its maximum altitude is about 10,000 feet, in keeping with its Light-Sport Aircraft classification - a new class created to make personal aviation accessible to more people. It runs on auto gasoline and gets 18 to 20 miles to the gallon, according to Icon.  read more »

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Wall Street ended a volatile week with a moderate rebound Friday after better-than- expected economic data at least temporarily eased the worries of investors concerned about housing and the financial sector. Financials fell again on continued worries about the health of balance sheets, while technology stocks advanced. A day after a sharp drop in existing-home sales aided in pushing stocks sharply lower, economic news helped buoy the market on Friday.

The Commerce Department reported that factory orders for big-ticket manufactured goods, such as cars, appliances and machinery, rose by 0.8 percent in June, the strongest gain in four months and well ahead of Wall Street's expectations. But outside demand for defense equipment, orders would have been up only 0.1 percent. Another Commerce Department report showed that new-home sales dropped by a smaller-than-expected 0.6 percent to a seasonally adjusted annual rate of 530,000 units; the market expected sales to total 505,000. Although it marked the seventh decline in the past eight months, it stirred some hope that the housing market could be finding a bottom. Orders for durable goods rose 0.8% last month, far better than the 0.4% decline expected.

And there was good news about consumers, whose spending accounts for more than two-thirds of U.S. economic activity. The Reuters/University of Michigan index of consumer sentiment for the first part of July came in at 61.2, while economists forecast a reading of 56.4. The reading was a slight rebound from a 28-year-low last month. "This is a market that's looking for any good signs," said John Massey, a fund manager at AIG SunAmerica Asset Management. "People are trying to find the light at the end of the tunnel."

Some experts said, however, that trading is likely to be uneven in the coming days as Wall Street awaits Friday's July employment report. Linda Duessel, equity market strategist at Federated Investors, said economic figures such as the durable-goods numbers are important because they reveal continued demand from abroad, which could help U.S. companies continue to rake in profits even if the U.S. economy isn't running at full steam. "That's good news for market participants as we try to find a footing in the market because we really don't want to see our weakness leak outside the U.S.," she said.

The Dow Jones industrial average rose 21.41 points Friday, to 11,370.69, rebounding slightly from Thursday's decline of more than 280 points. Broader stock indicators also rose. The Standard & Poor's 500 index advanced 5.22, to 1257.76, and the technology-heavy Nasdaq composite index jumped 30.42, to 2310.53. For the week, the Dow fell 1.1 percent and the S&P 500 lost 0.2 percent. Friday's tech rally left the Nasdaq up 1.2 percent for the week. Oil fell $2.23 to settle at $123.26 a barrel. Crude prices have fallen more than $20 in recent weeks, alleviating some of Wall Street's concerns about the impact of inflation on consumers' ability to spend.

The stock market's volatility during the week—rallying Tuesday and Wednesday only to erase those gains Thursday—illustrates tentativeness behind some of the bets investors are making, said Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors. He said the market tends to react to the latest headlines. "It's just news sensitive, and the real question is, 'What's the next news going to be? Good or bad?' That means that the market doesn't have a trend or a direction. It depends entirely on whether the news is going to be good or bad on any given day and that doesn't give you, as an investor, a lot of confidence."

For the second consecutive session, financial-services stocks were hard hit, with Dow components Bank of America losing 3.5 percent and Citigroup falling more than 1 percent. For the year, each is down more than 28 percent.

Europe gains: European stocks posted their first back-to-back weekly gains since May as better-than-estimated earnings and lower oil prices fueled a rally in carmakers, and banks climbed on speculation credit-market losses will abate. Europe's Dow Jones Stoxx 600 Index increased 0.4 percent this week, extending its rebound from a three-year low on July 15 to 5.7 percent.

Asia falls: In Asia, stocks fell the most in six weeks, snapping a four-day rally. The MSCI Asia-Pacific index lost 2.8 percent. The index rallied 5.9 percent in the first four days of this week as concerns eased that bank losses will expand and oil tumbled.

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Photos courtesy of AFP, AP Photo/Ed Ou & Bebeto Matthews, and Independent.ie

Original Source: Chicago Tribune and NY Daily News