China tightening controls on Internet






BEIJING (AP) — China‘s new communist leaders are increasing already tight controls on Internet use and electronic publishing following a spate of embarrassing online reports about official abuses.


The measures suggest China’s new leader, Xi Jinping, and others who took power in November share their predecessors’ anxiety about the Internet’s potential to spread opposition to one-party rule and their insistence on controlling information despite promises of more economic reforms.






“They are still very paranoid about the potentially destabilizing effect of the Internet,” said Willy Lam, a politics specialist at the Chinese University of Hong Kong. “They are on the point of losing a monopoly on information, but they still are very eager to control the dissemination of views.”


This week, China’s legislature took up a measure to require Internet users to register their real names, a move that would curtail the Web’s status as a freewheeling forum to complain, often anonymously, about corruption and official abuses. The legislature scheduled a news conference Friday to discuss the measure, suggesting it was expected to be approved.


That comes amid reports Beijing might be disrupting use of software that allows Web surfers to see sites abroad that are blocked by its extensive Internet filters. At the same time, regulators have proposed rules that would bar foreign companies from distributing books, news, music and other material online in China.


Beijing promotes Internet use for business and education but bans material deemed subversive or obscene and blocks access to foreign websites run by human rights and Tibet activists and some news outlets. Controls were tightened after social media played a role in protests that brought down governments in Egypt and Tunisia.


In a reminder of the Web’s role as a political forum, a group of 70 prominent Chinese scholars and lawyers circulated an online petition this week appealing for free speech, independent courts and for the ruling party to encourage private enterprise.


Xi and others on the party’s ruling seven-member Standing Committee have tried to promote an image of themselves as men of the people who care about China’s poor majority. They have promised to press ahead with market-oriented reforms and to support entrepreneurs but have given no sign of support for political reform.


Communist leaders who see the Internet as a source of economic growth and better-paid jobs were slow to enforce the same level of control they impose on movies, books and other media, apparently for fear of hurting fledgling entertainment, shopping and other online businesses.


Until recently, Web surfers could post comments online or on microblog services without leaving their names.


That gave ordinary Chinese a unique opportunity to express themselves to a public audience in a society where newspapers, television and other media are state-controlled. The most popular microblog services say they have more than 300 million users and some users have millions of followers reading their comments.


The Internet also has given the public an unusual opportunity to publicize accusations of official misconduct.


A local party official in China’s southwest was fired in November after scenes from a videotape of him having sex with a young woman spread quickly on the Internet. Screenshots were uploaded by a former journalist in Beijing, Zhu Ruifeng, to his Hong Kong website, an online clearing house for corruption allegations.


Some industry analysts suggest allowing Web surfers in a controlled setting to vent helps communist leaders stay abreast of public sentiment in their fast-changing society. Still, microblog services and online bulletin boards are required to employ censors to enforce content restrictions. Researchers say they delete millions of postings a day.


The government says the latest Internet regulation before the National People’s Congress is aimed at protecting Web surfers’ personal information and cracking down on abuses such as junk e-mail. It would require users to report their real names to Internet service and telecom providers.


The main ruling party newspaper, People’s Daily, has called in recent weeks for tighter Internet controls, saying rumors spread online have harmed the public. In one case, it said stories about a chemical plant explosion resulted in the deaths of four people in a car accident as they fled the area.


Proposed rules released this month by the General Administration of Press and Publications would bar Chinese-foreign joint ventures from publishing books, music, movies and other material online in China. Publishers would be required to locate their servers in China and have a Chinese citizen as their local legal representative.


That is in line with rules that already bar most foreign access to China’s media market, but the decision to group the restrictions together and publicize them might indicate official attitudes are hardening.


That comes after the party was rattled by foreign news reports about official wealth and misconduct.


In June, Bloomberg News reported that Xi’s extended family has amassed assets totaling $ 376 million, though it said none was traced to Xi. The government has blocked access to Bloomberg’s website since then.


In October, The New York Times reported that Premier Wen Jiabao’s relatives had amassed $ 2.7 billion since he rose to national office in 2002. Access to the Times’ Chinese-language site has been blocked since then.


Previous efforts to tighten controls have struggled with technical challenges in a country with more than 500 million Internet users.


Microblog operators such as Sina Corp. and Tencent Ltd. were ordered in late 2011 to confirm users’ names but have yet to finish the daunting task.


Web surfers can circumvent government filters by using virtual private networks — software that encrypts Web traffic and is used by companies to transfer financial data and other sensitive information. But VPN users say disruptions that began in 2011 are increasing, suggesting Chinese regulators are trying to block encrypted traffic.


Curbs on access to foreign sites have prompted complaints by companies and Chinese scientists and other researchers.


In July, the American Chamber of Commerce in China said 74 percent of companies that responded to a survey said unstable Internet access “impedes their ability to do business.”


Chinese leaders “realize there are detrimental impacts on business, especially foreign business, but they have counted the cost and think it is still worthwhile,” said Lam. “There is no compromise about the political imperative of controlling the Internet.”


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Analysis: Amazon’s Christmas faux pas shows risks in the cloud






(Reuters) – A Christmas Eve glitch traced to Amazon.com Inc that shuttered Netflix for users from Canada to South America highlights the risks that companies take when they move their datacenter operations to the cloud.


While the high-profile failure – at least the third this year – may cause some Amazon Web Services customers to consider alternatives, it is unlikely to severely hurt a fast-growing business for the cloud-computing pioneer that got into the sector in 2006 and has historically experienced few outages.






“The benefits still outweigh the risks,” said Global Equities Research analyst Trip Chowdhry.


“When it comes to the cloud, Amazon has got it right.”


The latest service failure comes at a critical time for Amazon, which is betting that AWS can become a significant profit generator even if the economy continues to stagnate. Moreover, it is increasingly targeting larger corporate clients that have traditionally shied away from moving critical applications onto AWS.


AWS, which Amazon started more than six years ago, provides data storage, computing power and other technology services from remote locations that group thousands of servers across areas than can span whole football fields. Their early investment made it a pioneer in what is now known as cloud computing.


Executives said last month at an Amazon conference in Las Vegas they could envision the division, which lists Pinterest, Shazam and Spotify among its fast-growing clients, becoming its biggest business, outpacing even its online retail juggernaut. Evercore analyst Ken Sena expects AWS revenue to jump 45 percent a year, from about $ 2 billion this year to $ 20 billion in 2018.


The service has boomed because it is cheap, relatively easy to use, and can be shut off, scaled back or ramped up quickly depending on companies’ needs. As the longest-running player in the game, Amazon now boasts the widest array of datacenter products and services, plus a broader stable of clients than rivals like Google Inc, Rackspace Inc and Salesforce.com Inc.


Outages such as the one that took down Netflix and other websites on the eve of one of the biggest U.S. holidays are part and parcel of the nascent business, analysts say. Moreover, outages have been a problem long before the age of cloud computing, with glitches within corporate datacenters and telecommunications hubs triggering myriad service disruptions.


COMING SOON: POST-MORTEM


Amazon’s latest service failure comes months after two high-profile outages that hit Netflix and other popular websites such as photo-sharing service Instagram and Pinterest. Industry executives, however, say its downtimes tend to attract more attention because of its outsized market footprint.


Netflix – which CEO Reed Hastings said relies on AWS for 95 percent of its datacenter needs – would not comment on whether they were pondering alternatives. Analysts say the video streaming giant is unlikely to try a large-scale switch, partly because all cloud providers experience outages.


“Despite a steady stream of these service outages, the demand for cloud services offered by AWS, Google, etc. continues to escalate because these services are still reliable enough to satisfy customer expectations,” said Jeff Kaplan, managing director of consultancy ThinkStrategies Inc.


“They offer cost-savings and elasticities that are too attractive for companies to ignore.”


But “Netflix and other organizations which rely on AWS will have to reexamine how they configure their services and allocate their service requirements across multiple providers to mitigate over-dependency and risks.”


AWS spokeswoman Rena Lunak said the outage was traced to a problem affecting customers at its oldest data center, run out of northern Virginia, which was linked also to the June failure.


The latest glitch involved a service known as Elastic Load Balancing, which automatically allocates incoming Web traffic across multiple servers in order to boost the performance of a website. She declined to provide further details about the outage, saying the company would be publishing a full post-mortem within days.


AWS has traditionally been used by start-up tech companies and smaller businesses that anticipate rapid growth in online traffic but are unwilling or unable to shell out on IT equipment and management upfront.


The company has more recently started winning more and more business from larger corporations. It has also set up a unit that caters to government agencies.


Regardless, Amazon’s clientele would do well not to put all their eggs in one basket, analysts say.


Service outages do occur, but they are not common enough to cause users of these services to abandon today’s Cloud service providers at significant rates. In fact, every major Cloud service provider has experienced outages,” Kaplan said.


“Therefore, organizations that rely on these services are putting backup and recovery systems and protocols in place to mitigate the risks of future outages.”


(Additional reporting; editing by Edwin Chan and Richard Chang)


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Meningitis, West Nile occupy U.S. health officials in 2012






NEW YORK (Reuters) – The year started in the United States with a mild flu season but ended up being marked by deadly outbreaks of fungal meningitis, West Nile virus and Hantavirus.


Tainted steroid medication has been cited as the cause of the meningitis outbreak that killed 39 people.






Weather contributed to the worst outbreak of West Nile virus since 2003 and an unusual outbreak of Hantavirus in California’s Yosemite National Park.


Transmitted by infected mice, Hantavirus is a severe, sometimes fatal syndrome that affects the lungs. West Nile can cause encephalitis or meningitis, infection of the brain and spinal cord or their protective covering.


As of December 11, 5,387 cases of West Nile virus had been reported in 48 states, resulting in 243 deaths, the CDC said in its final 2012 update on the outbreak. The 2003 outbreak left 264 dead from among nearly 10,000 reported cases.


A large number of cases this year occurred in Texas, Louisiana and Mississippi where there are large mosquito populations.


CDC and state officials have said that rainfall in the spring and record high summer temperatures contributed to the severity of the outbreak by affecting mosquito populations, which transmit the disease by biting humans and animals.


Health officials said that only a small percentage of cases of West Nile virus are reported because most people have no symptoms and about 20 percent have mild symptoms such as aches and fever. One in 150 people with West Nile virus develop other illnesses such as meningitis and encephalitis.


The biggest outbreak in nearly two decades of Hantavirus, which emerges in dry and dusty environments, cropped up during the summer in 1,200-square-mile (3,100-square-km) Yosemite National Park, killing three of 10 infected visitors.


The National Park issued warnings to 22,000 people who may have been exposed to the rare disease, and 91 Curry Village cabins in the park were closed in late August.


In early September, a 78-year-old judge named Eddie Lovelace was rushed to a hospital in Nashville, Tennessee. Thought to have had a stroke, he died a few days later.


After a large outbreak of fungal meningitis was linked to tainted steroid injections, Lovelace’s cause of death was revised. He became the first documented death in a meningitis outbreak that has infected 620 people and killed 39 in 19 states.


The New England Compounding Center in Framingham, Massachusetts, was closed after investigators found that it had shipped thousands of fungus-tainted vials of methylprednisolone acetate to medical facilities around the United States. The steroid was typically used to ease back pain.


More than 14,000 people were warned that they may have had an injection of the tainted steroid. Doctors continue to see new cases of spinal infections related to the steroid, and cases of achnoiditis, an inflammation of nerve roots in the spine.


The outbreak led two Democratic lawmakers in the U.S. House of representatives to introduce legislation to increase government oversight of compounded drugs.


And what lies ahead in 2013?


“While there are some trends we can predict, the most reliable trend is that the next threat will be unpredictable,” said Centers for Disease Control and Prevention (CDC) Director Thomas Frieden.


(This refile corrects paragraph two to 39 instead of 243)


(Reporting by Adam Kerlin; Editing by Paul Thomasch)


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Jessica Simpson’s Christmas tweet seems to confirm pregnancy rumor






(Reuters) – U.S. actress, singer and fashion designer Jessica Simpson sent a Christmas Twitter message that apparently confirms media rumors that she is pregnant – showing a photo of her daughter Maxwell with the words “Big Sis” spelled out in sand.


The picture’s caption reads “Merry Christmas from my family to yours.”






Simpson had her first child, Maxwell Drew Johnson, in May. She has since become a spokeswoman for Weight Watchers.


A representative for Simpson was not immediately available for comment.


Simpson rose to fame as a teen pop star and became a household name after starring in a TV reality show with her then-husband Nick Lachey, a member of the boy band 98 Degrees. The pair divorced after three years of marriage.


She went on to star in the 2005 film version of “The Dukes of Hazzard” and re-invented herself as a country singer in 2008. She currently designs apparel, accessories and other fashion products and is a mentor on the TV contest “Fashion Star.”


Simpson’s fiancĂ©, Eric Johnson, is a former U.S. professional football player whose career spanned seven seasons for both the San Francisco 49ers and New Orleans Saints. (Reporting By Mary Wisniewski and Paul Simao)


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NORAD says record number of calls to track Santa






PETERSON AIR FORCE BASE, Colo. (AP) — Most of the thousands of children who call the annual Santa-tracking operation at a Colorado Air Force Base on Christmas Eve ask the usual questions: “Where’s Santa, and when will he get here?”


So volunteer Sara Berghoff was caught off-guard Monday when a child called to see if Santa could be especially kind this year to the families affected by the Connecticut school shooting.






“I’m from Newtown, Connecticut, where the shooting was,” she remembers the child asking. “Is it possible that Santa can bring extra presents so I can deliver them to the families that lost kids?”


Sara, just 13 herself, was surprised but gathered her thoughts quickly. “If I can get ahold of him, I’ll try to get the message to him,” she told the child.


Sara was one of hundreds of volunteers at NORAD Tracks Santa who answered thousands of calls, program spokeswoman Marisa Novobilski said. Spokeswoman 1st Lt. Stacey Fenton said that as of midnight Tuesday, trackers answered more than 111,000 calls, breaking last year’s record of 107,000.


First lady Michelle Obama, who is spending the holidays with her family in Hawaii, also joined in answering calls as she has in recent years. She spent about 30 minutes talking with children from across the country, telling some who asked that her favorite toys growing up were Barbie dolls and an Easy Bake oven.


She also received an invitation to visit an 11-year-old boy in Fort Worth, Texas, and a request to put her husband on the phone. “He’s not here right now. But you know what, I will tell him you asked about him. OK?” she replied.


The North American Aerospace Defense Command, a joint U.S.-Canada command responsible for protecting the skies over both nations, tracks Santa from its home at Peterson Air Force Base.


NORAD and its predecessor have been fielding Christmas Eve phone calls from children — and a few adults — since 1955. That’s when a newspaper ad listed the wrong phone number for kids to call Santa. Callers ended up getting the Continental Air Defense Command, which later became NORAD. CONAD commanders played along, and the ritual has been repeated every year since.


After 57 years, NORAD can predict what most kids will ask. Its 11-page playbook for volunteers includes a list of nearly 20 questions and answers, including how old is Santa (at least 16 centuries) and has Santa ever crashed into anything (no).


But kids still manage to ask the unexpected, including, “Does Santa leave presents for dogs?”


A sampling of anecdotes from the program this year:


___


THE REAL DEAL: A young boy called to ask if Santa was real.


Air Force Maj. Jamie Humphries, who took the call, said, “I’m 37 years old, and I believe in Santa, and if you believe in him as well, then he must be real.”


The boy turned from the phone and yelled to others in the room, “I told you guys he was real!”


___


DON’T WORRY, HE’LL FIND YOU: Glenn Barr took a call from a 10-year-old who wasn’t sure if he would be sleeping at his mom’s house or his dad’s and was worried about whether Santa would find him.


“I told him Santa would know where he was and not to worry,” Barr said.


Another child asked if he was on the nice list or the naughty list.


“That’s a closely guarded secret, and only Santa knows,” Barr replied.


___


TOYS IN HEAVEN: A boy who called from Missouri asked when Santa would drop off toys in heaven.


His mother got on the line and explained to Jennifer Eckels, who took the call, that the boy’s younger sister died this year.


“He kept saying ‘in heaven,’” Eckels said. She told him, “I think Santa headed there first thing.”


___


BEST OF: Choice questions and comments wound up posted on a flip chart.


“Big sister wanted to add her 3-year-old brother to the naughty list,” one read.


“Are there police elves?” said another.


“How much to adopt one of Santa’s reindeer?”


“What’s the best way to booby-trap the living room to trap Santa?”


“When you see Santa, tell him hello for me, I never see him.”


“How does Santa make iPads?”


____


INTERNATIONAL FLAVOR: NORAD got calls from 220 countries and territories last year, and non-English-speakers called this year as well.


Volunteers who speak other languages get green Santa hats and a placard listing their languages so organizers can find them quickly.


“Need a Spanish speaker!” one organizer called as he rushed out of one of three phone rooms.


___


HE KNOWS WHEN YOU’RE AWAKE: At NORAD’s suggestion, volunteers often tell callers that Santa won’t drop off the presents until all the kids in the home are asleep.


“Ohhhhhhh,” said an 8-year-old from Illinois, as if trying to digest a brand-new fact.


“I’m going to be asleep by 4 o’clock,” said a child from Virginia.


“Thank you so much for that information,” said a grateful mom from Michigan.


___


CHRISTMAS EVE IN AFGHANISTAN: Five U.S. service personnel answered calls from Afghanistan for about 90 minutes through a conferencing hookup.


“They had a great time,” said Novobilski, the program spokeswoman.


NORAD wanted to set up a call center in Afghanistan but that proved too complex, she said.


___


HEY, MR. ELF: “Mr. Elf,” said one caller, “This is Adam, and I’ve been really good this year.”


___


FOR GEARHEADS: For people who want to know the specs of Santa’s sleigh, NORAD offers a trove of tidbits, including:


Weight at takeoff: 75,000 GD (gumdrops).


Propulsion: 9 RP (reindeer power).


Fuel: Hay, oats and carrots (for reindeer).


Emissions: Classified.


___


Online:


Track Santa online at http://www.noradsanta.org


___


Follow Dan Elliott at http://twitter.com/DanElliottAP


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Early Childhood Obesity Rates Might Be Slowing Nation-Wide






About one in three children in the U.S. are now overweight, and since the 1980s the number of children who are obese has more than tripled. But a new study of 26.7 million young children from low-income families shows that in this group of kids, the tidal wave of obesity might finally be receding.Being obese as a child not only increases the risk of early-life health problems, such as joint problems, pre-diabetes and social stigmatization, but it also dramatically increases the likelihood of being obese later in life, which can lead to chronic diseases, including cancer, type 2 diabetes and heart disease. Children as young as 2 years of age can be obese–and even extremely obese. Early childhood obesity rates, which bring higher health care costs throughout a kid’s life, have been especially high among lower-income families.”This is the first national study to show that the prevalence of obesity and extreme obesity among young U.S. children may have begun to decline,” the researchers noted in a brief report published online December 25 in JAMA, The Journal of the American Medical Association. (Reports earlier this year suggested that childhood obesity rates were dropping in several U.S. cities.)The study examined rates of obesity (body mass index calculated by age and gender to be in the 95th percentile or higher–for example, a BMI above 20 for a 2-year-old male–compared with reference growth charts) and extreme obesity (BMI of more than 120 percent above that of the 95th percentile of the reference populations) in children ages 2 to 4 in 30 states and the District of Columbia. The researchers, led by Liping Pan, of the Division of Nutrition, Physical Activity and Obesity at the U.S. Centers for Disease Control and Prevention, combed through 12 years of data (1998 to 2010) from the Pediatric Nutritional Surveillance System, which includes information on roughly half of all children on the U.S. who are eligible for federal health care and nutrition assistance.A subtle but important shift in early childhood obesity rates in this low-income population seems to have begun in 2003. Obesity rates increased from 13.05 percent in 1998 to 15.21 percent in 2003. Soon, however, obesity rates began decreasing, reaching 14.94 percent by 2010. Extreme obesity followed a similar pattern, increasing from 1.75 percent to 2.22 percent from 1998 to 2003, but declining to 2.07 percent by 2010.Although these changes might seem small, the number of children involved makes for huge health implications. For example, each drop of just one tenth of a percentage point represents some 26,700 children in the study population alone who are no longer obese or extremely obese. And if these trends are occurring in the rest of the population, the long-term health and cost implications are massive.Public health agencies and the Obama Administration have made battling childhood obesity a priority, although these findings suggest that early childhood obesity rates, at least, were already beginning to decline nearly a decade ago. Some popular prevention strategies include encouraging healthier eating (by reducing intake of highly processed and high-sugar foods and increasing fruit and vegetable consumption) and increased physical activity (both at school and at home).The newly revealed trends “indicate modest recent progress of obesity prevention among young children,” the authors noted. “These finding may have important health implications because of the lifelong health risks of obesity and extreme obesity in early childhood.”


Follow Scientific American on Twitter @SciAm and @SciamBlogs.Visit ScientificAmerican.com for the latest in science, health and technology news.
© 2012 ScientificAmerican.com. All rights reserved.
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Visa and MasterCard Face a Fierce Rival in China






Among the myriad designer brands at the Harrods flagship store in London, Chinese housewife Li Yafang spotted a corporate logo she knows from back home: the red, blue, and green of UnionPay cards. “It’s very convenient,” said Li, 39, as a salesperson rang up a £1,190 ($ 1,920) Prada Saffiano Lux handbag.


With 2.9 billion cards in circulation—equal to 45 percent of the world’s total last year—UnionPay has grown into a payments processing colossus just 10 years after the company was founded. Now accepted in 135 countries, its share of global credit- and debit-card transaction volume for the first half of 2012 rose to 23.8 percent, propelling it to No. 2 behind Visa International (V), according to the Nilson Report, an industry newsletter. “UnionPay has absolute dominance in China, and it’s now expanding beyond that to become a top global player,” says James Friedman, an analyst at Susquehanna International Group. “Their numbers show they are already in the league of Visa and MasterCard (MA).”






2a523  mf unionpay52  01  405inline Visa and MasterCard Face a Fierce Rival in China


Yin Lian, UnionPay’s name in Mandarin, means “banks united,” which reflects its ownership structure. Its founding shareholders were 85 Chinese banks, led by the five biggest state-owned lenders. UnionPay’s top managers are former senior officials at the People’s Bank of China, the nation’s central bank. (The company would not make executives available for interviews.)


At home, the Shanghai-based firm enjoys a big competitive edge: The government requires that all automated teller machines and Chinese merchants use UnionPay’s electronic payments network to process payments in the local currency. The rule extends to Visa, MasterCard, and American Express (AXP), which typically give UnionPay a cut of each transaction. “We compete vigorously,” Jeff Liao, head of Visa China, wrote in an e-mail, though he noted that there has been cooperation on issues that affect the entire industry.


Taking up a trade complaint filed by the U.S., the World Trade Organization in July ordered China to stop discriminating against foreign payment companies, yet fell short of spelling out specific remedies. Says Susquehanna’s Friedman: “It’s difficult to say which side won after reading the WTO ruling, as you basically can’t tell what’s actually going to happen.”


China’s receivables from credit cards could rise 40 percent annually to reach 2.5 trillion yuan ($ 397 billion) by 2015, according to a 2011 report from Boston Consulting Group. Citing data presented at a UnionPay shareholders meeting, China Business News reported in April that the company’s revenue has more than tripled over the past four years, reaching 6 billion yuan in 2011, while profit increased almost elevenfold, to $ 1.07 billion yuan. The main driver of revenue growth has been debit cards: UnionPay had $ 2.1 trillion in debit-card transactions and credit-card volume of $ 660 billion last year, according to Nilson Report. UnionPay does not publish financial statements.


Outside China, UnionPay now reaches about the same number of U.S. merchants as Visa and MasterCard, thanks to a 2005 network-sharing agreement with Discover Financial Services. More than 10 million UnionPay cards have been issued by 65 lenders in 17 countries in overseas markets, according to the company’s website.


UnionPay’s growing global reach has been a boon for purveyors of high-end merchandise, whether it’s Italian leather handbags or French perfume. Chinese shoppers this year displaced Americans as the No. 1 consumers of luxury goods, according to a recent Bain & Co. report. Some 60 percent of Chinese purchases happened outside the mainland, the report found.


At Harrods, where UnionPay has been accepted since February 2011, “a large majority of Chinese customers are now taking advantage” of the option, Katharine Witty, group director of corporate affairs at the British department store, wrote in an e-mail. “I don’t have a card issued by foreign banks,” said Li, who was visiting London with her family from the port city of Ningbo. “It’s too much of a hassle to get one.”


The bottom line: China’s UnionPay dominates in a market where credit- and debit-card receivables are forecast to rise to $ 397 billion by 2015.


Businessweek.com — Top News





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Toronto reaches skyward, but how dark the clouds?






TORONTO (Reuters) – Barry Fenton walked to the bank of floor-to-ceiling windows in his 30th-floor uptown Toronto penthouse suite and declared, “This is the best view of the city.”


To the south, a mass of steel-and-glass skyscrapers glinted in the bright autumn sun. Several cranes were in motion on unfinished buildings, a common sight in a city in the midst of a residential building boom.






“If you look around the core, every building you look at has a different look to it, a different ambience,” said the energetic co-founder of Lanterra Developments, one of the city’s most active builders. “That’s important.”


Fenton, 56, says he is confident the city’s condominium market will remain strong — despite warnings that it is all moving too far, too fast — and has an ambitious lineup for future development. And he is not alone in his optimism.


Toronto‘s seams are bursting with new condo and hotel towers designed by star architects like Frank Gehry and built by famed developers like Donald Trump.


But Fenton and others who see Toronto emerging from its “pokey” past — as a columnist in the Globe and Mail recently described it — face some formidable obstacles: an infrastructure buckling under soaring density rates, the laws of supply and demand and preservationists who say too many new towers are destroying the city’s character.


Canada’s central bank drew a bead on the city of 2.6 million this month in its weighty “Financial System Review,” warning of “potential future supply imbalances” in the condo market.


The Bank of Canada noted that the number of unsold condominiums in pre-construction has doubled, to 14,000, over the past year.


Greater Toronto home sales have slowed after years of steady increases. Sales fell 16 percent in November from the same month a year ago, according to the Toronto Real East Board. So far, however, prices are flattening, not falling, as some analysts have predicted.


In defiance of warnings by the central bank and economists, two mega-projects were unveiled within days of each other in October — a three-tower condo complex to be designed by Gehry and a multi-tower office project that includes a massive casino.


RACE TO THE TOP


More skyscrapers — 147 of them — are being built in Toronto than anywhere in North America, according to Emporis, the German data provider. That is twice as many as in New York, a city with about three times the population.


Toronto is getting taller fast. Fifteen buildings that will be more than 150 meters (492 feet) high are under construction, more than anywhere in the western hemisphere.


The recently completed Trump International Hotel topped out at 277 meters, just shy of Toronto’s tallest skyscraper, the 72-story First Canadian Place, which is 298 meters. That height could be exceeded by a couple of major projects on the drawing boards, including the Mirvish project.


(The city’s tallest freestanding structure, however, is the CN Tower, which soars over Toronto at 553 meters.)


“Toronto is creating a very sustainable future by building condos downtown,” said Daniel Libeskind, the American architect, who was in Toronto in October for a ceremony for one of his latest projects, the 57-story L Tower, with its sweeping, curvaceous, design that rises above the city’s modernist Sony Center for Performing Arts.


“It fights urban sprawl and brings people into the heart of the city.”


While building in big American cities and in Western Europe cratered following the financial crisis four years ago, Toronto never stopped booming. Demand for residential space has been strong, and while the office market has also been healthy, most of the new developments have been for condo projects.


Lanterra’s Fenton said his company has built some 9,000 condominium units in Toronto over the past 10 years and now has “in the hopper” up to 6 million square feet of property in downtown Toronto that is being rezoned for new projects.


Lanterra gained prominence over the past five years for the development of Maple Leaf Square, which included two condo towers, a hotel and office space, near the city’s hockey shrine, Air Canada Center, on land that had sat vacant for years.


Now it is “one of the hottest places to be,” said Fenton.


“ONE TOWER LEADS TO ANOTHER”


Some worry that Toronto can’t handle much more development.


“We have accumulated a serious infrastructure deficit,” wrote Ken Greenberg, a Toronto architect, in the Globe and Mail in October. “We have failed to make the investments in public transit that are urgently needed. Our narrow sidewalks and poorly designed streets are already jammed.”


He criticized the city officials and developers for a lack of coordinated planning. “One tower leads to another,” he said.


Despite decades of debate about transportation policy, Toronto has just two subway lines, a fleet of charming but lumbering streetcar lines and crumbling roadways.


Commuters in Toronto spend at least 80 minutes in traffic a day, on average — worse than what commuters face in London or Los Angeles — according to the Toronto Board of Trade.


Toronto’s City Planning Department did not respond to numerous requests for comment.


There is also concern about soaring neighborhood density rates. The city’s waterfront area has seen the most growth. Its population has soared 134 percent in a decade and is up 66 percent in the past five years, to 43,295, according to city data.


Toronto’s aging energy grid is strained. In July, downtown Toronto endured an eight-hour blackout after a transformer blew due to high demand. There was a similar outage last January.


THE MEGA-PROJECTS


Now two of the most ambitious projects the city has ever seen are being floated.


First out of the gate was theater impresario David Mirvish, who with his father, the late Ed Mirvish, helped create Toronto’s vibrant arts and theater scene.


In early October, Mirvish unveiled a plan for three condominium towers, with up to 85 floors each, that would be the city’s tallest buildings.


A podium at the buildings’ base would house two museums, including one for the Mirvish family’s contemporary art collection.


The Mirvish buildings would be designed by Gehry, the celebrated Canadian-born architect whose 76-story 8 Spruce Street residential tower was just completed in New York.


“These towers can become a symbol of what Toronto can be,” the 83-year-old Gehry said at project’s unveiling. “I am not building condominiums, I am building three sculptures for people to live in.”


Two weeks later, Oxford Properties Group, a Canadian developer with a $ 20 billion global real estate portfolio, announced a $ 3 billion makeover of the downtown convention center, just south of the Mirvish and Gehry project. It envisions a casino, two hotel towers and two office towers that would be among the tallest in the city.


Adam Vaughan, a city councilor whose district would encompass both projects, said a lot more planning is needed. He had kinder words for the Mirvish proposal — “it’s a transformative and astonishing proposal” — than for Oxford’s project, which he called “all out of proportion.”


“It’s time to have a really smart conversation about how we are building this neighborhood because there is a hell of lot of density arriving not just with this project but with all the projects that have been approved,” he said in an interview.


AT THE KIT KAT


Al Carbone, owner for the past three decades of the Kit Kat restaurant, doesn’t think people like Vaughan are listening to him, as the councilor and other politicians are not heeding the growing concerns about the rapid pace of development.


He said buildings are springing up too close to lot lines, creating jammed sidewalks and alleyways. And the sun does not shine on the streets like it once did.


He supports the Mirvish project, which would preserve his street, known as Restaurant Row. But he is battling a separate 47-story building that would go up steps away from his restaurant.


The plan, which still must be approved, would retain the historic facades of buildings on the street, which Carbone believes will destroy the character of the row.


“It’s a tough battle,” said Carbone, who launched the website SaveRestaurantrow.com to drum up support in opposition to the project. “You can’t have a condo on every corner.”


WHERE IS TORONTO HEADED?


Some believe Toronto is at a crossroads as developers, politicians and citizens debate the rapid changes the city’s urban landscape.


The Globe and Mail’s Marcus Gee dismissed the idea that the development was somehow bad for the city in a column in October, saying the condo boom “has transformed our once-pokey downtown into a vibrant, around-the-clock urban community.”


David Lieberman, an architect who also teaches at the University of Toronto’s architectural school, agrees the new developments have been good for the city, but he is not sure the city’s citizens are ready for it.


“We have such an excellent opportunity to get things right, but there is the Canadian conservatism,” Lieberman said, sipping coffee in his studio in an old downtown Toronto house. “Canadians in their city building are not risk takers.”


(Reporting By Russ Blinch. Editing by Janet Guttsman and Douglas Royalty)


Canada News Headlines – Yahoo! News





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Instagram furor triggers first class action lawsuit






SAN FRANCISCO (Reuters) – Facebook‘s Instagram photo sharing service has been hit with what appears to be the first civil lawsuit to result from changed service terms that prompted howls of protest last week.


In a proposed class action lawsuit filed in San Francisco federal court on Friday, a California Instagram user leveled breach of contract and other claims against the company.






“We believe this complaint is without merit and we will fight it vigorously,” Facebook spokesman Andrew Noyes said in an e-mail.


Instagram, which allows people to add filters and effects to photos and share them easily on the Internet, was acquired by Facebook earlier this year for $ 715 million.


In announcing revised terms of service last week, Instagram spurred suspicions that it would sell user photos without compensation. It also announced a mandatory arbitration clause, forcing users to waive their rights to participate in a class action lawsuit except under very limited circumstances.


The current terms of service, in effect through mid-January, contain no such liability shield.


The backlash prompted Instagram founder and CEO Kevin Systrom to retreat partially a few days later, deleting language about displaying photos without compensation.


However, Instagram kept language that gave it the ability to place ads in conjunction with user content, and saying “that we may not always identify paid services, sponsored content, or commercial communications as such.” It also kept the mandatory arbitration clause.


The lawsuit, filed by San Diego-based law firm Finkelstein & Krinsk, says customers who do not agree with Instagram’s terms can cancel their profile but then forfeit rights to photos they had previously shared on the service.


“In short, Instagram declares that ‘possession is nine-tenths of the law and if you don’t like it, you can’t stop us,’” the lawsuit says.


Kurt Opsahl, a senior staff attorney with the Electronic Frontier Foundation who had criticized Instagram, said he was pleased that the company rolled back some of the advertising terms and agreed to better explain their plans in the future.


However, he said the new terms no longer contain language which had explicitly promised that private photos would remain private. Facebook had engendered criticism in the past, Opsahl said, for changing settings so that the ability to keep some information private was no longer available.


“Hopefully, Instagram will learn from that experience and refrain from removing privacy settings,” Opsahl said.


The civil lawsuit in U.S. District Court, Northern District of California, is Lucy Funes, individually and on behalf of all others similarly situated vs. Instagram Inc., 12-cv-6482.


(Reporting by Dan Levine; Editing by Dan Grebler)


Tech News Headlines – Yahoo! News





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