Wednesday, November 24, 2010

Open Source social network, Diaspora, begins private alpha (Digital Trends)

diaspora logo

Diaspora is an open-source project that is using Ruby on Rails to build a social network that focuses on user privacy. As announced today on its blog, Diaspora will begin sending out invites for users to test their private alpha, starting with Kickstarter backers and then those on its email list.

?We are proud of where Diaspora is right now. In less than five months, we?ve gone from nothing to a great starting point from which the community can keep working. We?ve spent a lot of time thinking about how people can share in a private way, and still do all the things people love to do on social networks. We hope you?ll find it fun to use and a great way to keep in touch with all the people in your life.?

Diaspora is designed to help you decide which information to share with whom and has created the notion of ?aspects? to help users separate out friend lists and corresponding levels of profile openness or privacy. The group explains:

?Diaspora lets you create ?aspects,? which are personal lists that let you group people according to the roles they play in your life. We think that aspects are a simple, straightforward, lightweight way to make it really clear who is receiving your posts and who you are receiving posts from. It isn?t perfect, but the best way to improve is to get it into your hands and listen closely to your response.?

The team has a long way to go and several more features to implement before making Diaspora publicly available. If you would like to help Diaspora get off the ground, you can find more information on their website.



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Deere posts 4Q profit as farm conditions improve (AP)

MOLINE, Ill. ? Deere & Co., the world's largest maker of agricultural equipment, posted a profit Wednesday for its fiscal fourth quarter in contrast to a loss a year ago, citing improved conditions on U.S. farms but weakness in construction equipment sales.

The results beat Wall Street expectations, and it expects higher earnings for this fiscal year.

Its shares edged up 22 cents to $76.56 in morning trading.

Farmers in most of the company's key markets are experiencing solid levels of income due to strong global demand for agricultural commodities, low grain stocks in relation to use, and high prices for crops such as corn, wheat, soybeans, sugar and cotton," the company said in a statement.

But Deere is forecasting only flat farm machinery sales in the U.S. and Canada for the new year because of production limits and the pollution control regulations.

The Moline, Ill., company reported net income of $457.2 million, or $1.07 per share, for the quarter ended Oct. 31 compared with a net loss of $222.8 million, or 53 cents per share, a year ago.

Revenue rose 35 percent to $7.2 billion from $5.33 billion a year ago, due largely to stronger equipment sales, especially in the U.S. and Canada. However, the increase was partially offset by higher raw material costs.

Last year's fourth quarter featured weak sales and one-time charges from restructuring expenses and a write-down in the value of assets.

Deere beat Wall Street's estimates for the quarter. Analysts polled by Thomson Reuters expected earnings of 95 cents per share on revenue of $6.2 billion.

For the full year, the company famous for its green-and-yellow machinery earned $1.865 billion, or $4.35 per share, up from $873.5 million, or $2.06 per share, a year ago. Revenue rose to $26 billion from $23.1 billion a year ago.

CEO Samuel Allen said in a statement that conditions continued to be positive in the U.S. farm sector, including increased sales of larger equipment, but European agricultural markets remained soft.

"Deere's construction equipment sales benefited from somewhat-stronger overall demand but remained far below normal levels," he said.

The company predicted that equipment sales would rise 10 to 12 percent in the new fiscal year, including a 34 percent increase in the first quarter. The increase is due in part to what Deere said would be a record year for the introduction of new models because of stricter pollution control regulations worldwide.

The company expects net income of about $2.1 billion for the full year, with a sales rise partially offset by the cost of transitioning to the new models and increased costs to comply with the emissions regulations. The company also predicts higher raw material costs in 2011.

Deere also reported net sales of worldwide equipment rose 39 percent for the quarter, including a favorable currency translation of 1 percent and 3 percent in price increases.

Equipment sales in the U.S. and Canada rose 41 percent for the quarter, and outside those two countries it was up 36 percent.

In the Agriculture and Turf unit, sales were up 33 percent for the quarter because the company shipped more equipment and got higher prices for it, Deere said.

Agriculture and Turf operations posted an operating profit of $662 million for the quarter.

Deere's Construction and Forestry operations saw sales climb 75 percent in the quarter, with an operating profit of $54 million, also due to higher shipments.

The company expects Agriculture and Turf division sales to rise 7 to 9 percent in 2011 as global farming conditions continue to improve.

It also is forecasting a recovery in Western Europe with farm equipment sales up 5 to 10 percent in 2011, with Central Europe and the Commonwealth of Independent States seeing only moderate gains from depressed levels in 2010. Asia sales also are expected to grow moderately, and South America sales are expected to be flat, the company said.

Deere sees a larger recovery in its Construction and Forestry business, with sales rising 25 to 30 percent for the new year.



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Open-source Social Network Diaspora Goes Live (PC World)

Diaspora, a widely anticipated social network site built on open-source code, has cracked open its doors for business today, at least for a handful of invited participants.

"Every week, we'll invite more people," stated the developers behind the project, in a blog item posted Tuesday announcing the alpha release of the service. "By taking these baby steps, we'll be able to quickly identify performance problems and iterate on features as quickly as possible."

Such a cautious rollout may be necessary, given how fresh the code is. In September, when the first version of the working code behind the service was posted, it was promptly criticized for being riddled with security errors.

While Facebook creator Mark Zuckerberg may not be worried about Diaspora quite yet, the service is one of a growing number of efforts to build out open-source-based social-networking software and services. Others include Identica, a Twitter-like messaging service built on open-source software, and the Free Software Foundation's GNU Social.

Four New York University students came up with the idea of Diaspora earlier this year, and quickly raised US$200,000 from investors in the project. In interviews, they have stated their collective goal was to develop open-source software for social networking as an alternative to commercial alternatives such as Facebook and LinkedIn.

"When you give up that data, you're giving it up forever," said co-developer Max Salzberg, in an interview with The New York Times. "The value [sites such as Facebook] give us is negligible in the scale of what they are doing, and what we are giving up is all of our privacy."

The students' plan with Diaspora is to allow participants to retain ownership of all the material they use on the site, and retain full control over how that information is shared. It will also allow users to divide their social connections into individual groups, called Aspects, and control which groups see which material, according to the website.

Joab Jackson covers enterprise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com



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Mortgage applications increase for the week (AP)

NEW YORK ? Applications for mortgages to buy homes rose last week to the highest level since May, the Mortgage Bankers Association said Wednesday.

Purchase applications jumped 14.4 percent from the previous week. The increase got an extra lift because the previous week's results included Veterans Day holiday. The survey didn't make an adjustment for the extra day in the latest week.

The level of purchase applications is at the highest since the first week of May. At the end of April, two key tax credits for homebuyers expired, which helped to boost home sales earlier this year.

Applications to refinance slipped 1 percent from a week earlier. The share of refinance applications fell to 78.6 percent from 80.3 percent.

Overall applications edged up 2.1 percent, the group said.

The average rate for a 30-year fixed loan rose to 4.50 from 4.46 percent from a week earlier, the group's survey showed. Rates on the 15-year fixed-rate mortgage, a common refinancing option, slipped to 3.83 percent from 3.87 percent.

Rates have been at or near their lowest levels in decades since spring as investors put money into safer Treasury bonds. That has lowered their yields, which mortgage rates tend to track. In recent weeks, rates have pulled away from their lows as stronger economic reports ease investor concerns.

The Mortgage Bankers Association's survey covers more than 50 percent of all applications nationwide.



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Ubuntu Will Begin Updating Daily, Report Says (PC World)

Ubuntu may shift from updating every six months to updating every day, according to a report Tuesday in The Register.

Users familiar with the wildly popular Linux distribution have long been accustomed to its twice-a-year updates, marked with names starting with successive letters of the alphabet. Version 10.10 released last month, for example, is "Maverick Meerkat," while version 11.04--due in April--will be dubbed "Natty Narwhal."

Soon, however, such updates may become a ongoing phenomenon.

'In the Next Five Years'

Ubuntu founder and CEO Mark Shuttleworth reportedly said during a conference call last month that a move to daily updates would help the Linux distribution "keep pace with an increasingly complex software and platform ecosystem as Ubuntu goes on more devices and syncs up Android and iPhones," the Register wrote.

"Today we have a six-month release cycle," Shuttleworth reportedly said. "In an Internet-oriented world, we need to be able to release something every day. That's an area we will put a lot of work into in the next five years."

And such capabilities will likely be implemented via Ubuntu's Software Center.

An Embedded Advantage

While undoubtedly more work for developers, a daily update cycle would be a boon for Ubuntu users and partners.

Most notably, manufacturers of devices featuring Ubuntu embedded would be able to keep their systems better updated, matching more closely or even surpassing the update cycles seen on competing platforms.

Users, meanwhile, won't need to wait for changes to be included in their operating system, helping them stay up to date and secure.

An Exciting Future

A separate story on NetworkWorld asserts Wednesday that Canonical has since said it won't be making any such switch. Which turns out to be true remains to be seen.

Nevertheless, between Unity, Wayland, a bunch of new business tools and the potential for a more frequent release cycle, the future Ubuntu is looking pretty exciting.

Follow Katherine Noyes on Twitter: @Noyesk.



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Nearly 1 in 3 kids want an iPad for the holidays (Ben Patterson)

Not quite sure what your little ones want from Santa this year? Well, industry researchers drew up a list, checked it twice, and guess what red-hot, 9.7-inch gadget came out on top? That's right: the iPad.

In a recent survey of tykes aged 6 to 12, a good 31 percent of them went for broke, telling researchers for the Nielsen Company that they wanted to buy an iPad in the next six months ? or rather, that they were hoping someone else (like, say, their parents) would get them an iPad.

After the iPad, kids expressed the most interest in getting a garden-variety computer, with an equal percentage -- 29 percent, to be exact -- crossing their fingers for an iPod Touch (starting price: $229 for the 8GB version).

About one in four 6- to 12-year-olds hope to get their hands on a Nintendo DS in the next six months, while a new PlayStation 3 caught the eyes of 21 percent of kids in the Nielsen survey ? or nearly twice as many as those pining for an Xbox 360 (with just 12 percent).

Other high-profile gadgets for which kids are crossing their fingers include an iPhone (20 percent), the upcoming Nintendo 3DS (also 20 percent, although children in the U.S. will have to wait until March to get one), the Wii (18 percent), and an e-reader like the Kindle or Nook (11 percent).

As far as the holiday battle of game-console motion controllers goes, the PlayStation Move seems to be winning out, with 17 percent of youngsters in the Nielsen survey saying they wanted the Move versus just 12 percent for Xbox Kinect.

Looking at broader tech categories, about 21 percent of kids said they wanted a smartphone (yup, these are still just little kids we're talking about), with another 21 percent saying they'd settle for a standard cell phone.

About one in five kids would like a new TV set ? in their bedrooms, I'm guessing ? while 16 percent think a Blu-ray player would be pretty cool.

Interestingly enough, priorities change a bit when it comes to kids 13 and up, with a computer topping the gotta-have tech list for teens at 20 percent, with a TV set and a non-iPhone smartphone coming in at 19 percent each.

Only then did the iPad come into play, with 18 percent of teens saying they'd like to get Apple's $500-and-up tablet within the next six months, according to Nielsen.

Not making the list was the gadget I most wanted for Christmas when I was a kid: a Star Trek communicator, which was really just a walkie-talkie with a flimsy metal antenna that (of course) didn't survive Christmas morning. Oh well.

(Chart: Nielsen)

Related:
Kids in the U.S. Eyeing Big-Ticket Tech This Holiday Season [Nielsen Wire]

? Ben Patterson is a technology writer for Yahoo! News.

Follow me on Twitter!



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Netflix Turns From Oracle, IBM to Amazon to Save Cash (PC World)

Netflix moved some of its most crucial IT operations over to Amazon Web Services' Elastic Compute Cloud in order to save money and gain flexibility compared to using more Oracle software and IBM iron.

"Our datacenter runs Oracle on IBM hardware, we could have switched to commodity hardware in a data center, but skipped that step by going to AWS," Netflix cloud architect Adrian Cockcroft told the consulting firm Cloudscaling in an interview posted Tuesday. "There are three points on cost, one is that Oracle on IBM is very expensive, so AWS looks cheap in comparison, and we have flat-lined our datacenter capacity."

In addition, Netflix "could not have hired enough [system and database administrators] to build out our own data center this fast. We have added 4-5x as many systems in the cloud as the total we have in our data center over the last year," he said.

Finally, EC2's pay-as-you-go model means costs are elastic. "If you own a resource it sits around a long time waiting to be delivered and installed, and if you no longer want to use that type of resource you are still paying for it for three years."

Cockcroft's remarks add some color to Netflix's announcement in May that it would significantly expand its use of AWS. The company had already been using the service for various customer-facing and internal applications, but decided to add "critical pieces" of its service, including member movie lists, a recommendation engine and film transcoding.

The move enabled Netflix to free up "scarce engineering resources from the undifferentiated heavy lifting of running its own infrastructure," it said at the time.

Netflix's skyrocketing customer count, which now stands at about 16 million, also made the job of running and expanding data centers too unpredictable, according to a presentation Cockcroft gave at the recent QCon conference. In addition, the company has been rapidly transitioning from a DVD-delivery outfit to a mainly streaming operation.

For actually streaming the movies to customers, Netflix contracts with companies like Akamai and Limelight, Cockcroft told Cloudscaling. It also runs systems for account sign-up, billing and other needs elsewhere, he added.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com



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Home purchase mortgages buoy applications: MBA (Reuters)

NEW YORK (Reuters) ? U.S. mortgage applications for home purchases rose to their highest level in more than six months last week, buoying activity otherwise weighed down by waning refinancing, an industry group reported on Wednesday.

The Mortgage Bankers Association's seasonally adjusted purchase applications index jumped 14.4 percent to 205.0 in the week ended November 19, the highest since the week ending May 7, the MBA said on Wednesday. The refinancing index slumped 1 percent to 3,793.6.

The composite index, which includes loans for home purchases and refinancings, increased 2.1 percent to 728.8, the MBA said.

"The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation," Michael Fratantoni, the MBA's vice president of research and economics, said in a statement.

Borrowing costs on 30-year fixed-rate mortgages rose to 4.5 percent from 4.46 percent in the week, the MBA said. The rate last month reached 4.21 percent, the lowest level in the survey, which has been conducted weekly since 1990.

Rates for fixed 15-year mortgages averaged 3.83 percent, down from 3.87 percent in the previous week.

(Reporting by Al Yoon; Editing by Diane Craft)



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Business: Obama outreach not enough (Politico)

After business leaders sank millions into the midterms to defeat Democrats, a chastened Obama administration is seeking reconciliation with the corporate community.

But after two years of building frustration, the executives say they won?t be won over by another round of private lunches and photo opportunities at the White House.

If President Barack Obama has any hope for a truce with corporate America in time for his 2012 reelection campaign, he needs to drop the name-calling, try to see their point of view better and step up with some specific proposals.�(See: Poll: Non-voters split over Obama)

?No amount of relationship-building is a substitute for policy,? said Johanna Schneider, executive director for external affairs at the Business Roundtable, which was once one of the administration?s most enduring corporate allies.

?We have to see some concrete policies that will help grow business because everyone?s goal is to grow jobs. This isn?t hocus-pocus. There are concrete steps to take for job growth,? she added.

The White House is embarking on a new round of corporate outreach, said Valerie Jarrett, a key White House adviser, who told POLITICO in an interview that she is lining up a fresh round of private, luncheon sessions and that other events could be in the works.

The White House is also mulling over an Obama appearance at the U.S. Chamber of Commerce�? even though the group spent about $75 million attacking Democrats and assisting the Republican takeover of the House.�(See: Obama plans truce with Chamber)

?Our position moving forward is to find as many opportunities as possible to interact with the business community,? said Jarrett. ?The president is very interested in the coming weeks in hearing additional input from the business community.?�

The White House?s relationship with the corporate world has always had a sort of Mars-Venus quality to it. Business leaders say Obama simply doesn?t get them and has no one in the White House with corporate experience or who is steeped in the daily challenges of operating in a global economy. It didn?t help when Obama lashed out at ?fat cat bankers? on Wall Street at the height of the regulatory reform effort or attacked BP, a onetime White House ally on energy reform, in the midst of the Louisiana oil spill. (See:�OMB's Lew confirmed after hold lifted)

The message to other sectors: "You could be next," said one corporate lobbyist.

Some White House officials, in turn, privately express frustration that the business world seems to give Obama no credit for supporting bailouts of Wall Street and the auto industry as well as an economic stimulus bill that likely spared the country a deeper recession. Many CEOs now are enjoying hefty corporate profits and a Dow at healthy levels in part because of Obama?s efforts in steering the economy through the global meltdown, administration officials contend.

But the stakes for Obama couldn?t be higher, economically or politically, in rebuilding relations. Cooperation with the business community is vital for job growth and economic recovery. Expanding trade and cutting the deficit, two other Obama priorities, will require Republican votes�? which the business community could deliver.

David Cote, the chief executive officer of Honeywell Corp. and a supporter of the White House policies, said gains can occur with a concerted effort by the administration.

?The administration is being thoughtful about getting input. You will see more outreach,? said Cote, who recently traveled with Obama to Asia to highlight trade and serves on the White House deficit commission. ?I find it hard to believe people in the business community will turn a deaf ear to that. I don?t view that as being unrecoverable.?

In September, Obama called for deep investments in infrastructure projects. He also proposed expanding and permanently extending the research and development tax credit and allowing businesses to write off 100 percent of the expenses for new plants and other investments immediately�? three items on the business community's wish-list for years.

Other administration officials are also reaching out.

Treasury Secretary Timothy Geithner met privately with Chamber President Tom Donohue during the White House Asia trade trip and appeared before the Chamber?s board a week after the midterms�? a striking departure from a White House-Chamber feud that briefly grabbed headlines last year and during those very same elections.

On Dec. 8, Secretary of State Hillary Clinton, Homeland Security Secretary Janet Napolitano and Health and Human Services Secretary Kathleen Sebelius are scheduled to meet with the Business Roundtable, an association that includes the CEOs of the nation?s largest companies.�

But there have been some bumps along the way.

Last week, Treasury?s Gene Sperling appeared at a retreat for technology executives. ?He expressed a desire to work closely,? said one attendee. ?Then, when we brought up the issue of repatriation [the opportunity for corporations to bring overseas earnings back to the U.S. at lower tax rates], he openly showed frustration with us for just bringing the subject up.?

It?s a complaint heard often from the business community. ?Access isn?t the issue. The question is: Where is the delivery?? said one corporate representative who, like others, sought anonymity to speak freely.

Greg Brown, CEO of Motorola and an administration ally, said the White House had to take necessary but politically difficult steps to stabilize the economy. But he also noted, ?Now that we are moving from stability to growth, I think there is an acknowledgment that the relationship needs to get closer and we collectively need to find common ground.?

To achieve that, the White House must overcome a hefty wariness in the business community about Obama?s populist bent that exploded into open warfare during the midterms when wealthy individuals and corporations spent more than $200 million trying to defeat Democrats.

?The amount of money they spent was rather stunning,? said an administration official.

One of the most striking break-ups of 2010 was between Obama and the Business Roundtable.

From the start of his administration, Obama framed the coalition of CEOs as the grown-up alternative to the Chamber. In turn, the Roundtable CEOs made a conscious decision to try to work with the White House.

But as final negotiations over health care heated up earlier this year and several of their concerns were left unresolved, frustrated voices dominated the monthly CEO meetings. They grew even louder when the White House turned to Wall Street regulatory reform.�

Still, the CEOs voted in February, March, April and May to stay at the table. In June, they gave up.

Why? The infamous consumer watchdog office? The new health care mandates? No, say insiders familiar with internal discussions, the roundtable walked away because of a group of technical fixes to the health care and Wall Street reform laws they sought�? and in some cases were assured would be done�? that never got done.

For instance, one provision they wanted deleted from the Wall Street bill gives labor leaders and other minority shareholders a chance to change the way corporate boards are formed�? viewed as a ?poke in the eye? by the Roundtable?s CEOs.

Another removed a tax incentive for providing retiree drug coverage, which roundtable officials warned would increase Medicare costs and force companies that dropped the coverage to publicly restate their earnings because of the lost tax breaks.

When several did, the headlines that followed linking their action to the reform bill prompted a profanity-laced call from former White House chief of staff Rahm Emanuel and threats of hearings on Capitol Hill.
And a third curbed corporate trading of special purpose derivatives, a long-standing revenue-generating mechanism that wasn?t related to the highly speculative trading that led to the economic collapse.

?These weren?t issues that got the president any votes or political leverage,? said one insider to the conversations. ?These were issues that demonstrated that this administration doesn?t get it. It?s like talking to your dog.?

The Roundtable?s Schneider conceded that ?the tone and tenor of the dialogue wasn?t as collegial as one might have hoped.? But she said the trade group kept up a dialogue with the White House and that several Roundtable CEOs were on Obama?s recent Asia trip, which became ?an important relationship-building effort.?

Other executives complain that the White House continually promised a ?hard pivot? to job creation and the economy that never fully materialized, at least not in a way that made corporate America feel it could be part of the solution.

?There was no challenge to come work together for a common purpose,? one executive said. ?There was never a call for weekly conference calls with the president and demands to go get stuff done. That?s the power he has as president. And instead they kept pushing people away.?

The way Jarrett sees it, the White House was dealt a bad economic hand and had no choice but to move aggressively with legislation that had sweeping and intrusive impacts on the private markets�? a course Obama had not necessarily advocated when he launched his presidential bid before the economic meltdown.

As a consequence, the business community had a lot to digest about what exactly the Obama administration meant to them, which created some uncertainty about the course ahead.

Now that the administration is drafting the regulations to implement the reform laws, White House officials said, tensions should ease as business leaders see that they are coordinating to ensure there are no unintended consequences.

Jarrett also said trade, tax reform, deficit reduction and education are all areas where the business community and the White House share common ground and could join ranks for action.

Brown, of Motorola, said it will take ?compromise, conviction and courage? for both parties to make the changes necessary to improve the economy and create a robust job environment.

?The fact of the matter is these are tough times, politically charged and very emotional. As a country, there is no easy formula or short cut here. This is tough stuff,? he said.

?We?re coming out of a dark tunnel, and it?s been hard. It?s been hard on everybody, the public and private sector. Now, we need to lock and go.?

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Mozilla Confirms an App Store Is on the Way (PC World)

Along with its audited financial statements indicating a revenue increase of 34 percent last year, Mozilla late last week also published a "State of Mozilla" report providing a glimpse at what the organization is planning for the future.

Firefox for Android is one part of those future plans, of course, and will be released "in a few months," according to the report.

Even more intriguing, though, is the company's confirmation that it's planning what it calls an "Open Web App ecosystem"--also known, in other words, as a platform-independent app store.

Device-Independent

"The current app model has traits that threaten some of the characteristics that have made the Web so vibrant a platform, particularly in the mobile space," Mozilla explained in its report.

Specifically, "apps are often device specific and platform specific," it said. "Information we create in an application is stuck in that application and / or that platform. One doesn't join a unified whole as one can with the Web. App-related information isn't generally linkable or findable. In addition, developers often need to get permission from one or more gatekeepers to reach people--from a network operator, a device manufacturer, a ?store' operator. Similarly, consumers must go through these filters to access new functionality."

As a way to remedy such problems, Mozilla has designed a prototype of an Open Web App ecosystem, it says, noting that "this includes a system design, technical documentation and examples of what such a system would look like and work like." A video on YouTube offers further explanation.

HTML5, CSS and Javascript

Taking inspiration from the success of Apple's App Store, of course, Google has been working on its own mentioned similar plans back in May.

"Supporting the needs of Web developers in their efforts to develop websites and apps that aren't bound to a specific browser and work across the Web is core to Mozilla's public benefit mission," Mozilla wrote back then.

Accordingly, an open Web app store should "exclusively host web applications based upon HTML5, CSS, Javascript and other widely-implemented open standards in modern web browsers - to avoid interoperability, portability and lock-in issues," it explained.

Such a store should also "ensure that discovery, distribution and fulfillment works across all modern browsers, wherever they run (including on mobile devices)" and "set forth editorial, security and quality review guidelines and processes that are transparent and provide for a level playing field."

Finally, an open Web app store should "respect individual privacy by not profiling and tracking individual user behavior beyond what's strictly necessary for distribution and fulfillment" and it should "be open and accessible to all app producers and app consumers," Mozilla wrote in May.

Too Many Apps For That?

App stores are becoming a ubiquitous part of the Internet; in addition to Apple's longstanding offering and the planned entries from Google and Mozilla, there are also app stores from Research In Motion for the Blackberry phone and from Microsoft for Windows Phone 7.

Then, too, there's Apple's Mac App Store for desktops and Google's assortment for Google TV, among others.

Few, however, can boast Mozilla's commitment to openness and open standards like HTML, CSS and JavaScript. Google's Chrome store notwithstanding, it seems to me that amid all these platform-specific offerings, a device-agnostic store is just what we need.

Follow Katherine Noyes on Twitter: @Noyesk.



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Consumers spend and earn more, layoffs slow (AP)

WASHINGTON ? Americans earned more and spent more last month, and the number of people applying for unemployment benefits dropped last week to the lowest level in more than two years. At the same time, demand for long-lasting manufactured goods and new homes fell off.

All told, the latest government data released the day before Thanksgiving suggest an improving picture of the economy. Income and spending are rising, and layoffs are slowing. This comes amid a decline in manufacturing activity, which had been a source of strength for months after the recession ended, and a struggling housing market.

Analysts question whether incomes can continue to grow at a consistent pace and keep consumers spending enough to invigorate the economy.

"The flurry of U.S. data this morning suggests that households have started to pickup the baton of growth from businesses," said Paul Dales, U.S. economist at Capital Economics. "Whether or not households will be able to shoulder the burden of growth on their own is another matter."

Investors appeared to be pleased by the data. The Dow Jones industrial average climbed more than 137 points in the early morning trading.

Consumers boosted their spending 0.4 percent in October, the Commerce Department said Wednesday. That was up from a 0.3 percent increase in September.

People showed a slightly bigger appetite to spend because their incomes rose 0.5 percent, reflecting a slowly healing jobs market that gave a boost to wages and salaries. Incomes didn't grow at all in September. The increases in both income and spending last month were the most since August.

And inflation is running lower at a record low. Prices for goods excluding food and energy rose just 0.9 percent in the 12 months ending in October, the Commerce report noted. That was down from a 1.2 percent annual gain posted in September. Inflation is running at a pace below the Fed's comfort zone of between 1.5 percent and 2 percent.

"We have a good signal," John Silvia, chief economist at Wells Fargo, said of the jobless claims and consumer spending reports.

The pace of layoffs slowed to the lowest level since July 2008. Initial jobless claims dropped by 34,000 to a seasonally adjusted 407,000 in the week ending Nov. 20, the Labor Department said. The report raised hopes that more gains in hiring will be seen.

Still, another report showed that orders to U.S. factories for costly manufactured goods plunged in October by the largest amount in 21 months.

Durable-goods orders dropped 3.3 percent last month, the biggest setback since January 2009, when the country was still mired in a recession.

Of special concern was a 4.5 percent drop in orders for nondefense capital goods, excluding aircraft. This category is viewed as a good proxy for business investment plans. It was the biggest drop since a 5.3 percent fall in July.

Meanwhile, sales of new homes fell in October to near a record low and home prices dropped to the lowest point in seven years.

Sales of new single-family homes declined 8.1 percent to a seasonally adjusted annual rate of 283,000 units in October, Commerce said in another report. That was just 2.9 percent above the all-time low of 275,000 units hit in August for government records that go back to 1963.

The median price of a home sold in October dipped to $194,900, the lowest level since October 2003.

Even with the pickup in spending, consumers are still shying away from the type of buying needed to dramatically lower the 9.6 unemployment rate.

Normally after a recession, consumers spend more freely. But more than one year after the recession ended, Americans are more focused on getting their personal finances in order. They are paring down debt, watching their spending and building savings.

Americans saved 5.7 percent of their disposable income in October. That was up from 5.6 percent in September and was the most since August. Before the recession, they were saving just over 1 percent.

Federal Reserve Chairman Ben Bernanke and other economists worry that high unemployment, hard-to-get-credit, weak home values and lackluster wage growth are forces that will restrain the growth in consumer spending.

To counter that and try to invigorate the economy, the Fed recently launched a $600 billion program to buy government bonds. By doing so, the Fed hopes to boost stock prices and make loans cheaper, positive developments that could make people want to spend more.

Even faced with all the negative forces, Americans are still buying. That's important because their spending accounts for roughly 70 percent of all economic output. With consumers holding up, fears the economy could slip back into a recession have receded.

In the July-September quarter, consumer spending grew at a 2.8 percent pace, the most in nearly four years.

Leading economists in an AP Economy Survey predict consumer spending will grow at a 2.4 percent pace in the October-December quarter. Consumer spending would need to grow by at least twice that pace to translate into the type of robust economic growth to make a big dent in the nation's unemployment rate.

The nation's unemployment rate has been stuck at 9.6 percent unemployment rate for the past three months. New projections from Federal Reserve suggest that won't change much for a few years.

___

AP Economics Writers Christopher Rugaber and Martin Crutsinger contributed to this report.



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Deere profit beats, company offers guarded outlook (Reuters)

CHICAGO (Reuters) ? Deere & Co (DE.N) reported a stronger-than-expected quarterly profit on Wednesday as sales of its biggest and most profitable tractors and harvesters in North America offset poor demand in Europe.

But the world's largest maker of farm equipment offered a cautious preliminary forecast for 2011 that fell short of expectations.

In light training on Wall Street ahead of the U.S. Thanksgiving holiday, investors seemed to focus on the positive, sending the company's shares higher.

Oliver Pursche, president of Gary Goldberg Financial Services and co-portfolio manager of the GMG Defensive Beta Fund (.MPDAX), called Deere's fourth-quarter results "impressive."

He said he remained optimistic about the company's prospects, despite its guarded outlook, based on its growing business in India and signs of a rebound in its construction and forestry equipment business.

The Moline, Illinois-based company reported a fiscal fourth-quarter profit of $457.2 million, or $1.07 a share, compared with a net loss of $222.8 million, or 53 cents a share, a year earlier.

Sales rose 35 percent to $7.2 billion.

Analysts on average expected Deere to report a profit of 95 cents a share on sales of $6.25 billion, according to Thomson Reuters I/B/E/S.

The company, which also makes equipment used by builders and foresters, said those sales, which tumbled after the financial crisis, rebounded 75 percent during the quarter from record lows.

The company's agricultural equipment line contributed most to the quarterly results. Deere said sales to the U.S. farm sector included "a highly favorable sales mix of larger equipment."

Looking forward to 2011, Deere said environmental regulations and higher costs could make the year a tricky one.

Deere also said it expects higher raw-material costs in 2011 and a less favorable sales mix in its flagship farm division.

As a result, it said it expects a full-year 2011 profit of $2.1 billion. Analysts on average expected $2.42 billion, according to Thomson Reuters I/B/E/S.

The forecast "reflects the complexity of transitioning to these new equipment models as well as increased product costs to comply with the regulations," the company said in a statement.

(Reporting by James Kelleher. Editing by Robert MacMillan)



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Fugitive Comverse CEO settles suit for $54 million (AP)

Jacob "Kobi" Alexander, the former chairman and CEO of voicemail software maker Comverse Technology Inc. who fled to Namibia in 2006 to avoid prosecution over stock option backdating, has agreed to pay nearly $54 million to settle a civil action by the U.S. Attorney's office.

The settlement was filed Tuesday with the U.S. District Court Eastern District of New York. Alexander has agreed to forfeit more than $47.6 million from two investment accounts ? allegedly the proceeds from a stock option manipulation scheme that also involved two other former Comverse executives. The funds will go to Comverse, which will use them to settle shareholder suits related to the backdating allegations.

Alexander also will pay a $6 million civil penalty to the Securities and Exchange Commission.

"Alexander fled halfway around the world, but he was not able to escape the financial consequences of his crimes," Brooklyn-based U.S. Attorney Loretta E. Lynch said in a statement.

The civil settlement does not affect Alexander's status as a fugitive, and extradition proceedings are still pending to get him back to the U.S. to stand trial for criminal charges. Namibia does not have an extradition treaty with the U.S., and Alexander has remained in the African nation fighting in court against the prospect of being sent back to the U.S.

In 2006, the SEC and federal prosecutors charged Alexander and other former Comverse executives, all of whom left the company that year, with a scheme to manipulate stock options for profit. The options' grant dates were allegedly falsified to coincide with a low point in the stock's value, thereby boosting the value of the stock option. The SEC alleged that Alexander also created a slush fund of backdated options by causing options to be granted to fictitious employees, and later used these options to recruit and retain key personnel. Regulators said the scheme resulted in Comverse overstating its earnings for more than a decade.

Woodbury, N.Y.-based Comverse settled charges regarding the allegations of improper backdating of stock options and other accounting problems with federal regulators last year. The company, which didn't admit or deny guilt to the Securities and Exchange Commission, wasn't fined.

In June, a federal judge approved a $225 million class-action settlement related to the alleged stock option backdating with the company and several former officers and directors. That agreement included a $60 million recovery from Alexander. The roughly $48 million announced today will make up the bulk of that, said Alexander's attorney, Jeremy Temkin. The $6 million owed to the SEC will bring Alexander's total settlement payout to $66 million.

Temkin said Tuesday that Alexander "is pleased to have resolved the SEC and civil forfeiture actions and to put these matters behind him." He noted that, as with the other settlements, resolving these actions comes "without any admission of fault on his part."



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AP Enterprise: Rig victims' kin feel left out (AP)

JONESVILLE, La. ? Roy Wyatt Kemp's family is waiting for his headstone, black marble engraved with the deer and ducks he loved to hunt. The grave, however, lacks a body.

Seven months after the fateful Gulf of Mexico explosion that triggered one of history's worst environmental disasters, the 27-year-old rig worker's family knows very little beyond the fact that he never came home. Did he survive the initial blast? Did he suffer? Could he have been saved?

"I wonder every day what happened to my son. I don't think it will ever leave me," said his mother, Peggy.

Without a body, without answers and with only limited financial and emotional support, Kemp's family and relatives of the 10 other workers who died on the BP-leased rig are left to wonder whether the oil giant's promise to "make things right" applies to everyone but them.

From the small towns of central Mississippi to the cotton fields of central Louisiana to the cattle farms of southern Texas, relatives of the men, in interviews with The Associated Press, bemoaned that so much of the public focus has been on the oil spilled rather than the lives lost.

"There hasn't been anybody associated with BP, Transocean or any of them that has sat down and really tried to give you their condolence and tell you what took place," Peggy Kemp said.

As criminal investigations, congressional hearings and finger-pointing mount, the families of the dead want detailed explanations from BP and its partners of exactly how their loved ones perished in the April 20 disaster that ultimately spewed 170 million gallons of crude into the Gulf.

They want accountability for negligence. And they want the world to know that their loss cost them much more than a paycheck.

Thanksgiving will be tough for these families.

The holiday was drilling supervisor Jason Anderson's favorite. He would have turned 36 on Monday. His wife wants to know why the companies cut corners.

"I don't expect anybody to love my husband as much as I love him, and I don't expect anybody to feel the same loss, but I expect them not to let money and dollar signs be above someone's life and someone's family," Shelley Anderson said.

Jason Anderson began preparing a will in February and kept it in a spiral notebook. It sunk with the rig.

BP and its partners on the doomed Deepwater Horizon say they are not indifferent to the families' suffering. When asked to respond to the relatives' claims, the oil giant provided a one-sentence statement saying it extends its "deepest sympathies to the families and friends who have suffered such a terrible loss."

Transocean, the company that owned the rig, has been paying out money to dependents. It also reached long-term settlements with three families and set up a charitable fund that distributed $130,000 to all the families in July. It said it wants to reach "amicable resolutions" with the remaining relatives.

Perhaps the companies' most poignant tribute to the dead was the decision to imprint 11 stars on the well's final cap.

None of the men worked directly for BP ? nine worked for Transocean and two for M-I Swaco, a unit of the oil field services firm Schlumberger. However, BP was leasing the rig and it was the majority owner of the well that blew. The families report receiving no compensation from BP and say they have had little contact with the company beyond condolences offered at a May memorial service.

Most of the families said the money they received falls well short of compensating them for their losses.

Seven weeks ago, M-I Swaco ended support payments and health insurance for Michelle Jones, wife of mud engineer Gordon Jones, she said. A day after learning about The Associated Press' planned story, the company told the Jones family it would resume payments but did not say anything about health insurance, said Gordon Jones' brother, Chris.

The mother of Blair Manuel, the other M-I Swaco employee killed in the explosion, also said the company cut off payments.

In a statement, Schlumberger said it has provided financial support to the families and is "continuing to do so." Both families say that, as of last week, they had received no further support payments from M-I Swaco.

Because the deaths happened on the high sea, a 1920s law could limit the companies' liability to their workers' lost earnings rather than their families' pain and suffering.

Transocean filed a federal court petition May 13 seeking to limit its liability, arguing it didn't cause the disaster and shouldn't be responsible for injuries or losses. The petition listed relatives of the dead as potential claimants.

Shelley Anderson learned of the petition the day after Transocean CEO Steve Newman came to her house a few weeks after the explosion to offer condolences.

After the petition, she said, "I knew he wasn't being sincere."

Transocean said it filed the petition at the instruction of its insurers to preserve coverage.

Hardest of all for the families is the lifetime loss of love and support.

Courtney Kemp and daughter Kaylee, who turned 3 a few days before the explosion, would count the days until her husband returned home from the rig.

"That was probably the hardest thing, telling her that daddy wasn't coming home. It's a lot for a little girl to handle," the widow said.

Michelle Jones' 6-month-old son Max, born three weeks after the explosion, never saw his father, Gordon. The Baton Rouge, La. man had arrived for his 21-day stint on the rig the day before the blast.

Six of the 11 dead had been scheduled to get off the rig the day after the explosion, after spending three weeks aboard. They were Kemp of Jonesville, La., Adam Weise of Yorktown, Texas, Karl Kleppinger of Natchez, Miss., Shane Roshto of Liberty, Miss., Donald Clark of Newellton, La., and Dewey Revette of State Line, Miss.

Also killed were Anderson of Midfield, Texas, Manuel of Gonzales, La., Aaron Burkeen of Philadelphia, Miss., and Stephen Curtis of Georgetown, La.

At 22, Roshto was the youngest of those who died. His wife filed a lawsuit after the explosion that said she was suffering from post-traumatic stress disorder.

Kleppinger's grandmother, Barbara Thornhill, said of Thanksgiving without her grandson, a veteran of the first Gulf War, "We'll just miss him and know that he's in a good place."

Weise's mother, Arleen, now looks after her son's Texas home, where the heads of deer and snake skins the avid hunter collected adorn the living room wall. Outside sits her son's souped-up Ford F250 truck with its supersized tires below an elevated frame. The mother reached an undisclosed settlement with Transocean, but has received nothing from BP.

"They're so much more than 11 men. These were husbands, fathers, sons," she said as she flipped through pictures of her 24-year-old son.

Several of the families are suing for money. But what many want most are answers to their questions, chief among them: What happened to their men?

Michelle Jones wants to know if her husband, who got off the phone with her minutes before the explosion, was scared. "Was he thinking about me?" she said as Max snuggled with a stuffed tiger a few feet away.

Not all the families are angry.

Revette's wife, Sherri, said she has a lot to be thankful for, like the 26 years she was married. "We can't control and change anything, so my philosophy is to stay positive. Things happen for a reason."

Manuel's mother, Geneva, said that while her family has received nothing from BP and M-I Swaco cut off payments after her son's death certificate was issued, money and support have come in from all over. The family received some 300 sympathy cards, and the LSU baseball team sent an autographed baseball to be placed in Blair Manuel's bodiless casket.

Transocean gave bronze hard hats to the families, engraved with the men's names and the inscription, "We will never forget."

Without a body, the Burkeens remembered their son by placing a letter from his mother, a Superman shirt and other mementos in his casket.

His mother knows her son is gone, but still wonders if he floated to an island somewhere and is all right.

Burkeen's sister, Janet Woodson, feels robbed. Her brother died on his wedding anniversary, and four days before his birthday. That whole week will never be the same for the family, Woodson said on a recent day at the cemetery, sobbing uncontrollably while picking dead branches from her brother's bodiless grave.

"Eventually, the environment will take care of itself, the business will return, but those lives will never be back again," she said.



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Americans boost spending as incomes grow (AP)

WASHINGTON ? Americans earned more and spent more last month, a hopeful sign for the economy ahead of the holiday buying season.

Consumers boosted their spending 0.4 percent in October, the Commerce Department said Wednesday. That was up from a 0.3 percent increase in September.

People showed a slightly bigger appetite to spend because their incomes rose 0.5 percent, reflecting a slowly healing jobs market. Incomes didn't grow at all the month before. The increases in both income and spending last month were the most since August.

Even with the pickup, consumers are still shying away from the type of spending needed to dramatically lower the 9.6 unemployment rate.

Normally after a recession, consumers spend more freely. But more than one year after the recession ended, Americans are more focused on getting their personal finances in order. They are paring down debt, watching their spending and building savings.

Americans saved 5.7 percent of their disposable income in October. That was up from 5.6 percent in September and was the most since August. Before the recession, they were saving just over 1 percent.

Federal Reserve Chairman Ben Bernanke and other economists worry that high unemployment, hard-to-get-credit, weak home values and lackluster wage growth are forces that will restrain the growth in consumer spending.

To counter that and try to invigorate the economy, the Fed recently launched a $600 billion program to buy government bonds. By doing so, the Fed hopes to boost stock prices and make loans cheaper, positive developments that could make people want to spend more.

Even faced with all the negative forces, Americans are still buying. That's important because their spending accounts for roughly 70 percent of all economic output. With consumers holding up, fears the economy could slip back into a recession have receded.

In the July-September quarter, consumer spending grew at a 2.8 percent pace, the most in nearly four years.

Leading economists in an AP Economy Survey predict consumer spending will grow at a 2.4 percent pace in the October-December quarter. Consumer spending would need to grow by at least twice that pace to translate into the type of robust economic growth to make a big dent in the nation's unemployment rate.

The nation's unemployment rate has been stuck at 9.6 percent unemployment rate for the past three months. New projections from Federal Reserve suggest that won't change much for a few years.

A gauge linked to Wednesday's income and spending reported showed that inflation is running lower.

Prices for goods excluding food and energy rose just 0.9 percent in the 12 months ending in October. That was down from a 1.2 percent annual gain posted in September. Inflation is running at a pace below the Fed's comfort zone of between 1.5 percent and 2 percent.

The Fed's new economic aid program also is aimed at making sure that very low inflation doesn't turn into deflation. Deflation is a dangerous and prolonged drop in prices, wages and in the values of homes and stocks.



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Nearly 1 in 3 kids want an iPad for the holidays (Ben Patterson)

Not quite sure what your little ones want from Santa this year? Well, industry researchers drew up a list, checked it twice, and guess what red-hot, 9.7-inch gadget came out on top? That's right: the iPad.

In a recent survey of tykes aged 6 to 12, a good 31 percent of them went for broke, telling researchers for the Nielsen Company that they wanted to buy an iPad in the next six months ? or rather, that they were hoping someone else (like, say, their parents) would get them an iPad.

After the iPad, kids expressed the most interest in getting a garden-variety computer, with an equal percentage -- 29 percent, to be exact -- crossing their fingers for an iPod Touch (starting price: $229 for the 8GB version).

About one in four 6- to 12-year-olds hope to get their hands on a Nintendo DS in the next six months, while a new PlayStation 3 caught the eyes of 21 percent of kids in the Nielsen survey ? or nearly twice as many as those pining for an Xbox 360 (with just 12 percent).

Other high-profile gadgets for which kids are crossing their fingers include an iPhone (20 percent), the upcoming Nintendo 3DS (also 20 percent, although children in the U.S. will have to wait until March to get one), the Wii (18 percent), and an e-reader like the Kindle or Nook (11 percent).

As far as the holiday battle of game-console motion controllers goes, the PlayStation Move seems to be winning out, with 17 percent of youngsters in the Nielsen survey saying they wanted the Move versus just 12 percent for Xbox Kinect.

Looking at broader tech categories, about 21 percent of kids said they wanted a smartphone (yup, these are still just little kids we're talking about), with another 21 percent saying they'd settle for a standard cell phone.

About one in five kids would like a new TV set ? in their bedrooms, I'm guessing ? while 16 percent think a Blu-ray player would be pretty cool.

Interestingly enough, priorities change a bit when it comes to kids 13 and up, with a computer topping the gotta-have tech list for teens at 20 percent, with a TV set and a non-iPhone smartphone coming in at 19 percent each.

Only then did the iPad come into play, with 18 percent of teens saying they'd like to get Apple's $500-and-up tablet within the next six months, according to Nielsen.

Not making the list was the gadget I most wanted for Christmas when I was a kid: a Star Trek communicator, which was really just a walkie-talkie with a flimsy metal antenna that (of course) didn't survive Christmas morning. Oh well.

(Chart: Nielsen)

Related:
Kids in the U.S. Eyeing Big-Ticket Tech This Holiday Season [Nielsen Wire]

? Ben Patterson is a technology writer for Yahoo! News.

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Acer?s dazzling, dual-screen Iconia laptop (Ben Patterson)

There's nothing all that special about a 14-inch Windows-based notebook PC these days ? that is, unless we're talking about a laptop boasting two 14-inch displays, with the second screen taking the place of your standard keyboard and doing double-duty as a virtual QWERTY keypad.

Meet the Iconia, which Acer unveiled at a press event in New York on Tuesday. Armed with an Intel Core i5 processor and powered by Windows 7, the Iconia offers the aforementioned dual displays (14 inches, 1366-by-768), not to mention an HD webcam and integrated 3G.

Engadget has a hands-on photo gallery of the six-pound laptop, and no question: The Iconia makes for an eye-catching piece of hardware, all right.

But how practical is it? Well, Engadget notes that the Iconia might be the first Windows laptop with a keyboard that's susceptible to glare, adding that the "hard-to-use" virtual keypad hampers the otherwise "clever" touch interface.

PCWorld serves up more details on the Iconia and the Acer "Ring," a wheel-shaped touch UI that lets you flick and swipe between various on-screen elements, including the QWERTY keyboard, a "gesture editor," image capture and Web-clip apps, a "TouchMusic" player, and other touch-friendly applications.

The Iconia will also let you super-size your Web-browsing experience by extending pages across both of its 14-inch displays, although you'll have to put up with the gap where the laptop's hinge sits.

Other features on the Iconia include VGA and HDMI outputs, 802.11n Wi-Fi, Bluetooth 3.0, and three USB ports (two with USB 2.0, the other using the new USB 3.0 standard).

How much will the Iconia cost, you ask? No hard details on that yet, nor any specific word on when it'll arrive in the States.

Meanwhile, Acer also took the wraps off a pair of Android-based tablets ? a 7-incher and a 10-inch model, both with 1280-by-800 displays and Flash Player 10.1 support, as well as a 10-inch Windows-based tablet.

Also on tap from Acer: an aircraft-carrier-sized Android smartphone with a whopping 4.8-inch, 1024-by-480 display, not to mention an 8MP camera, DLNA media sharing, and "immersive" sound courtesy of Dolby Mobile.

Again, pricing and release dates for the upcoming tablets and smartphone remain sketchy, with Acer saying all three of its new Android devices should arrive around April 2011, while the Windows tablet is slated for February.

Back to the dual-screen Iconia, though. While there's little question that a laptop with a pair of 14-inch displays makes for a fabulous demo, would the thing actually be useful? Personally, I love the idea of a secondary touchscreen for accessing media and switching between apps (indeed, I can't wait to try it in person), but would a virtual QWERTY do the trick when it's time to start typing ? especially considering that the six-pound Iconia is more of a full-on laptop than a tablet?

Let me know what you think.

Related:
Acer reveals Iconia dual-screen laptop / tablet, Clear.fi cloud-based media sharing system [Engadget]
Acer Brings Dual-Screen Laptop to Reality [PC World]
Acer comes out swinging; 7 and 10-inch Android tablets due in April 2011 [Boy Genius Report]
Acer announces nameless 4.8-inch Android smartphone; April 2011 launch [Boy Genius Report]

? Ben Patterson is a technology writer for Yahoo! News.

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China restarts rare earth shipments to Japan (AP)

TOKYO ? China resumed exports to Japan of rare earth minerals crucial in high-tech manufacturing after a two-month de facto ban and a Japanese conglomerate announced a major supply deal with an Australian miner that will reduce dependence on Chinese production.

China currently controls 97 percent of the global output of rare earths, needed to produce everything from cell phones to hybrid cars. Resource-poor Japan was given a jolt in September when Beijing imposed a de facto ban after a diplomatic spat, and Tokyo immediately began seeking new trading partners.

News of the resumption came Wednesday as Sojitz Corp., a large Japanese conglomerate, announced a major tie-up with Australian mining company Lynas Corp. to secure supply for the next decade.

"Efforts that aim to diversify the regions and countries from where we import rare earths are intensifying, and I want to increase my efforts even more in this area to demonstrate solid, steady progress," said Japanese trade and industry minister Akihiro Ohata.

Japanese officials said that two ships bearing the minerals had left Chinese ports bound for Japan, signaling that exports had restarted. China has denied a ban, but Japanese companies say exports have been halted by a sudden increase in government inspections and paperwork.

Tokyo's efforts to find alternative supply have included talks with other Asian countries including Vietnam and Mongolia.

In Australia, Sojitz and Lynas have agreed to a deal in which the Japanese conglomerate would get exclusive import rights for over 70 percent of the 22,000-ton capacity at a rare earth mine operated by Lynas, the companies said in a joint press release.

Sojitz has agreed to seek up to $250 million in funding from Japan to develop the project, which is to begin initial operation next year and hit full capacity in 2012.

Japan's diplomatic row with China began in September, when its coast guard arrested a Chinese fishing boat captain after his ship collided with patrol boats near disputed islands.

The collision in the East China Sea plunged relations between the countries to their lowest level in years, despite Japan's eventual release of the boat captain.

China temporarily cut off ministerial-level contacts with Japan, repeatedly summoned Tokyo's ambassador to complain, and postponed talks on the joint development of undersea natural gas fields.



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