Archive for August, 2008

Strong quake jolts southwestern China

Sunday, August 31st, 2008

A strong earthquake measuring 6.1 on the Richter scale Saturday jolted the Panzhihua city in China’s southwestern province of Sichuan, the National Seismograph Network Centre said.

The quake occurred at 4.30 p.m. The epicentre was located at about 50 km southeast of the city, it said.

No further details were immediately available.

Sichuan province had been hit by a magnitude 8.0 earthquake May 12, killing up to 70,000 people and devastating an area of 40,000 sq km. More than 42 million people have been affected by the quake.

E-bikes have ‘arrived’ in India

Saturday, August 30th, 2008

To overcome the increase in petrol and diesel prices, travellers in Punjab are taking to bikes powered by electricity, which reduce pollution and also reduce the commutation costs.

In Punjab, the low-cost, easy to maintain and “cool” e-bikes are all set to replace motorcycles and scooters. E-bike manufacturers in Punjab are gearing up to meet the demand for ‘plug in” and ‘ply” bikes.

These electric motorized bicycles or E-bikes are safe, convenient as well as economical. And, they are now catching the fancy of the common man in Punjab.

E-bikes, meanwhile, have grabbed the attention of two-wheeler manufacturers too. Among the 80 manufacturers of e-bikes in India, 10 to 12 are big players.

The world’’s largest bicycle-maker Hero, in a joint venture with UK-based Ultra Motors Company, is manufacturing E-bikes branded as ‘Hero Electric”, with the ‘ultra-powered” technology tag.

Gaurav Munjal, Deputy Chief Executive, Hero Cycles Ltd., says, “I think there is a huge potential for e-bikes because of it is economical. Their running cost is only 10 paise per kilometer while the scooter or motorbike costs around one rupee per kilometer. It is value for money.”

Munjal added, “They are safe. You can travel at 25 km per hour. You do not require license, registration and do not have to pay road tax. But, we recommend a helmet for safety.”

Taking China as its role model, the Ludhiana-based e-bike manufacturer is out to tap the unexploited Indian market.

Available in several variants, e-bikes come with a price tag of 400 (rupees 17,520.39) to 700 U.S. dollars (rupees 30,607.05). The annual demand is growing from 500,000 e-bikes at present.

Propelled by a perfect tailwind of technology, high oil prices and the trend for all things green, global sales of bikes driven by battery-powered electric motors have climbed nearly 20 per cent since 2005, a trend projected to accelerate especially in developing countries, where the middle class is rising.

Already a hit in China, Japan, Australia and United States, E-bikes are now catching the fancy of the Indians.

Sector Snap: Chinese online gaming stocks

Saturday, August 30th, 2008

Chinese online gaming stocks traded lower Thursday after Giant Interactive Group Inc. reported second-quarter profit that met Wall Street views but was downgraded by one analyst after failing to issue third-quarter guidance.

American Depositary Shares of the Shanghai-based company fell 41 cents, or 4.3 percent, to $9.24. The stock has traded between $20.46 and $8.46 since Giant began trading publicly in November.

Late Wednesday, Giant said it earned 20 cents per ADS, which analysts polled by Thomson Reuters expected.

The company cited changes it made in July to the revenue model for its flagship game, “ZT Online,” as the reason for not giving guidance.

In a client note, Roth Capital Partners analyst Adam Krejcik downgraded the stock to “Hold” from “Buy” and lowered his 2008 and 2009 estimates for Giant.

“While we think Giant has the ability to ‘right the ship,’ given our expectations for a challenging 2H08 and lackluster pipeline we no longer feel comfortable recommending shares of Giant,” he said.

Meanwhile, U.S. shares of Shanda Interactive Entertainment Ltd., which is also based in Shanghai, dipped 8 cents to $26.55.

In a client note, Goldman Sachs analyst Leah Hao predicted the company’s second-quarter results will be in line with its outlook for up to 5 percent sales growth quarter-over-quarter and an operating margin of 37 percent to 40 percent. Shanda is slated to report on Wednesday.

The analyst thinks Shanda’s third-quarter guidance will be seasonal and higher than in the second quarter but accounting for a negative impact from the Beijing Olympics.

Hao rates the stock “Neutral” with a $41 price target.

Elsewhere in the sector, U.S. shares of The9 Ltd., which is located in Shanghai and operates the popular game “World of Warcraft” in China, fell 23 cents to $18.40.

Beijing-based Netease.com Inc.’s U.S. shares fell 16 cents to $26.39.

Microsoft to drop $486 million for European shopping site

Saturday, August 30th, 2008

Microsoft said Friday it has reached a deal to acquire Greenfield Online, the owner of consumer shopping sites, for about $486 million.

Greenfield’s properties include Munich, Germany-based Ciao, one of the leading price-comparison and online-shopping sites in Europe. Ultimately, Microsoft said, Ciao’s technology platform, online community, and merchant relationships will be integrated with Microsoft’s Live Search.

Ciao features consumer reviews and ratings. Microsoft said that, according to ComScore, Ciao has more than 26.5 million unique visitors per month across seven countries, who have generated more than 5 million product reviews.

The deal calls for Microsoft to commence a cash tender offer to purchase all of the outstanding shares of Greenfield for $17.50 per share, or roughly $486 million.

Wilton, Conn.-based Greenfield, which acquired Ciao in 2005, also owns an Internet survey business, which Microsoft plans to sell off. Microsoft said it has already secured an unnamed buyer for that unit.

Both transactions are expected to close during the fourth quarter.

Microsoft’s offer for Greenfield trumps an earlier deal. In June, Greenfield said it was in takeover discussions with the Quadrangle Group and had secured an agreement to be acquired for $15.50 per share.

In a press release issued on Friday, Greenfield said that “immediately prior to entry into the merger agreement with Microsoft it had terminated its previously announced merger agreement with affiliates of Quadrangle Group LLC.”

In connection with the termination of that deal, Greenfield said it is required to pay Quadrangle a $5 million fee.

News Corp said launching Japan satellite TV channel

Saturday, August 30th, 2008

News Corp plans to launch another satellite television channel in Japan by 2011, according to a Nikkei report that cited no sources.

A News Corp spokeswoman was not immediately available.

News Corp currently operates several channels in the region, including Fox Channel, which airs dramas.

News Corp, controlled by Rupert Murdoch, is considering setting up a wholly owned subsidiary through its News Broadcasting Japan Co unit and apply for a license for one of the new channels.

Millions of young Chinese addicted to ‘unhealthy’ Internet games: report

Friday, August 29th, 2008

Around four million Chinese youngsters are addicted to the Internet, mainly attracted by “unhealthy” online games, state media reported Friday, citing a top legislator.

“Internet-addicted teenagers” account for around 10 percent of China’s Web users under the age of 18, the Beijing Times said, quoting Li Jianguo, a vice chairman of the standing committee of the National People’s Congress, or parliament.

The committee has called for stricter monitoring of Internet games that have illegal or inappropriate content, the report said.

It has also said games should include technology that automatically logs players off once they exceed a set number of hours of continuous play.

“Unhealthy” games by Chinese government standards could refer to those featuring violence and pornography as well as “unpatriotic games” that make Chinese soldiers or agents the enemy.

The government has tried various measures to regulate the booming online gaming market and curb teenagers’ use of Internet games.

In 2006, it ordered all Chinese Internet game manufacturers to install technology in their games that demands players reveal their real name and identification number.

Vimpelcom says to sell Apple iPhone in Russia

Thursday, August 28th, 2008

Vimpelcom (VIP.N), Russia’s second-largest mobile phone operator, said on Thursday it had signed a distribution deal with Apple Inc. (AAPL.O) to sell iPhone 3G in Russia.

“Vimpelcom announced today it has signed an agreement with Apple to bring iPhone 3G to Russia, expected later this year,” the company said in a statement.

Mystery Chinese iPhone worker becomes Internet star

Thursday, August 28th, 2008

A Chinese factory worker has become an Internet sensation after a picture of her smiling and flashing a peace sign to a co-worker testing an Apple iPhone stayed on the phone that was sold to a man in Britain.

Photos of the unidentified, smiling woman were posted on the Apple discussion website MacRumours.com by a customer identified as “markm49uk” from Kingston-upon-Hull and quickly posted around other sites.

“Not sure if this is or is not the ‘norm’ but I just received my brand new iPhone here in the UK and once it had been activated on iTunes I found that the home screen (the screen you can personalize with a photo) already had a photo set against it!!!!” he wrote.

“It would appear that someone on the production line was having a bit of fun - has anyone else found this?”

Some people voiced concern that the woman could now lose her job while others joked on the website that they were considering returning their phones because they did not come loaded with a photo.

“I think its a kind of personal touch. It’s nice. Maybe every phone that gets a full quality test should have its tester’s picture taken and left on there. And the working conditions look pretty good,” wrote one.

Taiwanese company Foxconn assembles the iPhones for Apple in Shenzhen in southern China but calls to the company by Reuters went unanswered.

However Foxconn spokesman Liu Kun told the South China Morning Post in Hong Kong that the woman had been identified but her details would not be released. She had also been assured by her bosses that her job was safe.

Liu said the photos were taken in the testing department as part of a normal procedure and only one phone was known to be affected so far.

Is it time for Netflix to invest in system upgrade?

Wednesday, August 27th, 2008

Netflix has traced the causes of a lengthy system outage this month that prevented the online movie rental service from shipping for several days to a hardware glitch.

The good news for the company is that it received lots of help from vendors to determine that the cause of the outage, which hobbled the company’s ability to ship DVDs from August 11 to August 15, was a “key faulty hardware component.” Steve Swasey, a Netflix spokesman, said the company’s “strongest aspiration is to safeguard this from ever happening again.”

The bad news for the company is that Netflix can’t yet prevent these system outages. While a piece of hardware, about which Netflix declined to provide details, was the cause of the latest glitch, it was not responsible for the system crash back in March, Swasey confirmed.

In that earlier case, a malfunction knocked out the company’s Web site, as well as its logistics and delivery systems, for 12 hours, the company then said. In both cases, Netflix was unable to ship movies “to a large number of Netflix customers.”

Two major meltdowns in 2008 raises serious questions about the soundness of Netflix’s system. Tony Wible, an analyst at Citigroup, estimated that Netflix lost $1.8 million to $3.6 million for each of the days it was down. The 15 percent credit Netflix is providing to affected customers will reduce the company’s third-quarter revenue by $6 million, according to Michael Pachter, an analyst at Wedbush Morgan Securities.

As more and more competitors jump into Web video rental, annoying system blackouts could become more of a liability for Netflix.

In both outages, Swasey said many customers hardly noticed the delays. Many users who were expecting packages weren’t put out very much by waiting a day or two extra for their films. Customers never lost money or personal information, and by most anecdotal accounts, the service remains extremely popular with users.

At the root of the problem is the fact that Netflix is quite different from most e-commerce companies. It relies on the Internet, the U.S. Postal Service, and a groundbreaking fulfillment operation that combines software, hardware, and plain old elbow grease to ship those little red packages.

Netflix has won accolades for using technology to wrest market share away from big brick-and-mortar video renters, such as Blockbuster. The company has amassed 8.4 million customers and ships more than 2 million movies per day.

But perhaps now is the time that Netflix would do well to invest in a major system upgrade. If Netflix customers continue to see delays, it could undermine the company’s credibility. Does Netflix really want users to consider Blockbuster’s in-store kiosks? I don’t think so.

Long-Term Exposure to Incense Raises Cancer Risk

Wednesday, August 27th, 2008

Exposure to burning incense over long periods of time raises the risk of developing cancers of the upper respiratory tract, a new study shows.

Interestingly, the practice did not increase the overall risk of lung cancer.

“Given that our results are backed by numerous experimental studies showing that incense is a powerful producer of particulate matter and that incense smoke contains carcinogenic substances, I believe incense should be used with caution,” said study author Dr. Jeppe Friborg, of the department of epidemiology research at Statens Serum Institute in Copenhagen, Denmark. “That is, frequent use in rooms where people live should be minimized, or at least sufficient ventilation should be secured. In our study, we find the increased risk of cancer to be present in individuals reporting frequent use of incense for many years, thus, repeated exposure for years should probably be avoided.”

Others echoed the thought.

“The American Lung Association is going to add it as a risk factor,” said Dr. Norman Edelman, chief medical officer of the association. “It’s not nearly the danger of smoking a pack a day for 20 years, but it’s a danger.”

Not only is incense burned regularly as part of daily life in large swaths of Asia, the practice is also popular among certain segments in the West.

Incense burning produces particulate matter and is known to contain possible carcinogens such as polyaromatic hyodrcarbons (PAHs), carbonyls and benzene.

There have also been reports linking the burning of incense with cancer but the results have been inconsistent.

For this study, researchers conducted face-to-face interviews with more than 61,000 Singapore Chinese aged 45 to 74 who were cancer-free at the beginning of the study.

Incense burning almost doubled the risk of developing squamous cell upper respiratory tract carcinomas including nasal/sinus, tongue, mouth and laryngeal. There was an increased risk both in smokers and in nonsmokers, pointing to an independent effect of incense smoke.

There was no overall increased risk of lung cancer, but it did heighten the risk of squamous cell carcinoma of the lung.

Will incense go the way of tobacco? Not necessarily, said some experts.

“Certainly I think bathing yourself in particles is probably not the smartest thing in the world . . . but I think very few people fill up their room with incense,” said Dr. Arthur Frankel, a professor of medicine at Texas A&M Health Science Center College of Medicine and director of the Cancer Center, Cancer Research Institute and Division of Hematology/Oncology at Scott & White in Temple.

The findings, which are in the Oct. 1 issue of Cancer, might also point researchers toward other household practices that should be investigated.

“It’s a population-based study, which means that you can make an association but not necessarily a conclusion,” said Dr. Erin Fleener, a clinical assistant professor in internal medicine at the Texas A&M Health Science Center College of Medicine and an oncologist at the Bryan-College Station Cancer Clinic. “It probably promotes more work in the area of routine household items and things we need to be looking at more prospectively to make a clear cause-and-effect relationship.”

In general, though, it’s not a bad idea to avoid environmental pollutants of various types.

“Anything that affects air quality negatively is not a good thing,” said Dr. Len Horvitz, a pulmonary specialist at Lenox Hill Hospital in New York City. “Burning in general and the release of smoke, these things are certainly to be avoided. At the very least, chemical irritants will set off asthma, and that’s reversible. Cancer is not reversible.”

“This is not unlike the type of risk that one experiences from secondhand tobacco smoke,” said Dr. Len Lichtenfeld, deputy chief medical officer of the American Cancer Society. “At the end of the day, people who use incense casually, I don’t think that’s a cause for major concern, but those cultures which embrace incense as part of their daily lifestyles have to consider this has a real potential risk for cancer.”