The Compass Mag

GDP: Economic growth revised higher, outlook better

2013-03-30T04:46:00.000-07:00

Strong auto sales have been boosting personal spending and economic growth. Chevy trucks line the lot of a dealership in Murrysville, Pa. (Gene J. Puskar / Associated Press / March 28, 2013)

WASHINGTON -- The picture of the American economy has improved -- looking forward and backward.

Economic output in last year's fourth quarter was revised slightly higher, putting the nation's growth rate for all of 2012 at a modest 2.2%.

The Commerce Department said Thursday that U.S. gross domestic product, or total goods and services produced, expanded at an annual rate of 0.4% in the fourth quarter, after adjusting for inflation. That is down from 3.1% in the third quarter, but better than the 0.1% real GDP growth in the government's previous estimate of fourth-quarter activity.

The weakness in the fourth quarter output was exaggerated by an unusually big drop in federal defense spending and a sharp reduction in inventory accumulation. Real personal spending actually picked up a bit in the fourth quarter, and housing and nonresidential investments both saw strong gains.

Corporate profits grew by a healthy 2.3% in the fourth quarter from the previous quarter. And consumers' after-tax incomes surged at year's end along with dividend and bonus payments, ahead of expected tax increases, the Commerce data show.

Since the recovery officially began in mid-2009, the underlying growth rate of the economy has been a little above 2%, considered by many economists as sluggish given the deep recession.

But this year's opening quarter is looking much better.

Despite the fiscal head winds of higher payroll taxes and government spending cuts, the U.S. economy is set to grow 3.5% in the first quarter, according to a new forecast Thursday by the Organization for Economic Cooperation and Development, a group of mainly advanced economies.

The OECD cited the Federal Reserve's stimulus policy, saying that "monetary easing appears to be feeding through to the real economy as household consumption has picked up and the housing sector has begun to rebound."

Many private economists are not quite that bullish, uncertain about the effects of higher taxes on consumer spending, which accounts for 70% of American economic activity.

The latest OECD forecast sees U.S. GDP growth in the second quarter slipping back to 2% as fiscal spending cuts weigh on the economy.

Still, the near-term outlook for the U.S., as well as some other major economies, has brightened in recent weeks.

The OECD predicted that Japan's economy, the world's third largest, would expand 3.2% in the first quarter, thanks to fiscal and monetary stimulus. Germany, the fourth-biggest economy, is expected to rebound as well, with its GDP advancing 2.3% in the first quarter, even as several other major Eurozone countries remain stuck in the mud.

China, the world's second-largest economy behind the U.S., is likely to grow well above 8% in the first half of this year, the OECD said.

France Goes To War With The Rich

2012-09-29T01:59:00.003-07:00

Socialist President Francois Hollande unveiled higher levies on business and a 75-percent tax for the super-rich on Friday in a 2013 budget aimed at showing France has the fiscal rigour to remain at the core of the euro zone.

The package aims to recoup 30 billion euros ($39 billion) for the public purse with a goal of narrowing the deficit to 3.0 percent of national output next year from 4.5 percent this year - France's toughest belt-tightening in 30 years.

But the budget dismayed business and pro-reform lobbyists by hiking taxes and holding France's high public spending at the same level rather than cutting it as Spain, Greece and Italy have done to chip away at their debt mountains.

With record unemployment and a barrage of data pointing to economic stagnation, there were also fears the deficit target will slip as France falls short of the modest 0.8 percent economic growth rate on which it is banking for next year.

"We do not want France to be delivered shackled to the markets as has happened to other neighbouring countries that have succumbed to the temptation of letting their budgets get out control," Finance Minister Pierre Moscovici said of France's determination to stick to its deficit goal.

Prime Minister Jean-Marc Ayrault dismissed fears about possible slippage, insisting the 0.8 percent growth target for next year was "realistic and ambitious".

Hollande's aim is to achieve the savings without hitting the purchasing power of low-income families. But France's main employers' group said the measures would backfire by weakening the competitiveness of French industry.

"Its stated aim is to prepare the future. But the way it is put together holds it to ransom by putting investment and employment at a serious risk," Medef President Laurence Parisot said in a statement.

With public debt at a post-war record of 91 percent of the economy, the budget is vital to France's credibility not only among euro zone partners but also in markets which for now are allowing it to borrow at record-low yields around two percent.

The government said the budget was the first in a series of steps to bring its deficit down to 0.3 percent of GDP by 2017 - slightly missing an earlier target of a zero deficit by then.

France's benchmark 3.0 percent 10-year bond was steady, yielding 2.18 percent after the announcement but some analysts remained sceptical.

"The ambitions that were flagged are very audacious," said Philippe Waechter at Natixis Asset Management. "I struggle to see how we'll find the growth needed in 2013 and afterwards."

Of the total 30 billion euros of savings, around 20 billion will come from increased levies on households and companies, with tax rises already approved this year to contribute some 4 billion euros to revenues in 2013. The freeze on spending will contribute around 10 billion euros.

EXODUS FEAR

To the dismay of business leaders who fear an exodus of top talent, the government confirmed a temporary 75 percent super-tax rate for earnings over one million euros and a new 45 percent band for revenues over 150,000 euros.

Together, those two measures are predicted to bring in around half a billion euros. Higher tax rates on dividends and other investments, plus cuts to existing tax breaks are seen bringing in several billion more.

Jean-Paul Agon, chief executive of cosmetics giant L'Oreal, warned in the run-up to the budget that the new super-tax, which compares to a euro zone average top rate of 43 percent, will make it harder to attract top executives.

Bernard Arnault, France's richest man and chief executive of luxury group LVMH, created a storm this month by declaring he had applied for Belgian nationality - but stressed he would continue to pay taxes in France.

Business will face measures including a cut in the amount of loan interest which is tax-deductible and the cutting of an existing tax break on capital gains from certain share sales - moves worth around four billion and two billion euros each.

Four months after he defeated Nicolas Sarkozy, Hollande's approval ratings are in free-fall as many French feel he has been slow to get to grips with the economic slow-down and unemployment at a 10-year high and rising.

Finance Minister Pierre Moscovici defended next year's growth target on French radio. But, highlighting the bet on growth underpinning the entire budget, he added that it was achievable "if Europe steadies".

Data on Friday confirmed France posted zero growth in the second quarter, marking nine months of stagnation, as a pickup in business investment and government spending was offset by a worsening trade balance and sluggish consumer expenditure.

Despite a rise in wages, consumers - traditionally the motor of France's growth - increased their savings to 16.4 percent of income from 16.0 percent a year earlier. In another setback, other data showed consumer spending dropped 0.8 percent in August.

Mobile Mapmakers Hope To Capitalize On Apple's Troubled Debut

2012-09-29T01:46:00.003-07:00

Apple chief executive Tim Cook apologized Friday to customers for the widely criticized debut of his company's Maps app.

But to map developers, Cook could have simply said: "You’re welcome."

Apple's maps miscue has created a unique opportunity for lesser-known mapmakers to gain wider exposure. Several developers have reported spikes this week in downloads of their apps in Apple's App Store. Some have touted their services in blog posts or offered special promotions to capitalize on a rare moment when mobile phone users are seeking mapping alternatives.

Even Cook suggested on Friday that consumers should try other mapping services while Apple improves its own.

Analysts say mapmakers could stand to benefit from Apple's misfire in two ways. Apple may decide to partner with them to help fix gaps in its new application, or iPhone users may discover other maps by chance while looking for new options and continue using the applications.

"People used to be happy with the maps on their phones," said John Musser, founder of ProgrammableWeb, which tracks mobile app developers. "Now clearly people are frustrated with Apple maps and looking for alternatives, so there are opportunities for the smaller guys."

That opportunity arose last week when Apple unveiled its new mobile operating system, iOS 6. The platform did not feature the popular Google-built maps app. Instead, Apple released its own Maps app, which has been criticized for mislabeling cities and landmarks and not providing transit directions, among other things. Google is reportedly working on a version of its Maps app for iOS 6, but that is still months away.

The flaws with Apple Maps have sent iPhone users scrambling for other mapping options. Some have taken to Twitter to publish their discoveries.

One Twitter user wrote on Wednesday: “iOS 6 Maps silver lining: I discovered @LumaticInc’s elegant ‘City Maps” app for public transit. Huge step up from transit on Google Maps.”

Another wrote: “Dear frustrated #iPhone5 Apple maps users, I use @Telenav and @Scout on #iPhone4S -- they’re your map friend :)”

The negative reaction to Apple Maps has given the startup Lumatic the kind of exposure that no amount of marketing could have achieved, said the startup's chief executive, Scott Rafer.

The company creates mobile maps for pedestrians, cyclists and public transit users in 27 cities. But over the past week, Rafer said that frustrated iPhone users have sent him their zip codes and asked if Lumatic can add their town to its mobile maps.

"I want to exploit the hell out of this," Rafer said. "There is a crazy opportunity for us."

Some developers are hoping to capitalize on the attention by offering special promotions. This week, TeleNav said it would extend a free offer for its premium mapping app, called Scout, which offers turn-by-turn instructions with or without cellular reception. The app normally costs $25 in Apple's App Store.

"It seems to be working well," said Dariusz Paczuski, vice president of products for TeleNav. "We've seen downloads increase over the past few week."

Other companies have sought to remind iPhone users that they also offer a mapping service.

Bing proclaimed on its blog this week that its "apps have the essential search and mapping functionality you need.” And Foursquare released an update of its iPhone app this week, calling it "The Perfect Map." In a blog post, Foursquare said "we can also give you tailored suggestions instead of one size-fits-all results."

Foursquare did not mention Apple's Maps or other map developers by name. A Foursquare spokesperson said its updated app "has been in the works for a while."

Musser, of ProgrammableWeb, suggested that mapmakers -- both big and small -- should do everything they can to take advantage of this sudden public attention on mobile navigation.

“Put on your marketing hat and get out there and think of all the ways you can promote your app,” he said. “There’s never been a better time to get your name out there.”

The Next Problem For Facebook's Stock: Its Employees

2012-09-24T12:51:00.002-07:00

Starting next month, more than 1 billion shares of Facebook will be released from lock-up restriction over a short span of two weeks or so. Many of those shares belong to current Facebook employees and it’s a good bet they are going to sell in large numbers, putting new pressure on the stock.

Investors have been bracing for this tidal wave and seen it coming for some time. They have bid up the stock of Facebook anyway, ever since Facebook moved in early September to protect its share price with assurances that Mark Zuckerberg wouldn’t soon be selling any of his truckload of shares and that the company would withhold 101 million shares. Zuckerberg also helped by finally communicating about things during a public appearance.

But the employee problem for Facebook’s stock will continue even after some of its employees cash-in this fall. Facebook’s employees have had to sit on the sidelines since the May IPO, watching the value of their shares plummet while early Facebook investors cashed out nicely. Facebook did do its employees a huge favor by giving them restricted stock units instead of options, meaning they still have lots of value, but for the most part, the many Facebook employees who came in after November 2010 aren’t at the moment making life-altering money; employees who joined up this year got few RSUs. The operational challenge for Facebook is how to retain its talented employees and keep them from feeling they would be more likely to make their Silicon Valley fortune elsewhere because Facebook’s big valuation gains are a thing of the past.

Facebook’s answer is to keep shoveling more shares to current and new employees. Andrew Bary, who wrote the current Barron’s cover story arguing that Facebook’s stock was worth $15, has been thinking about what these new shares will do to Wall Street’s consensus estimate for Facebook’s 2013 earnings of 63 cents per share. Writes Bary:

“Facebook issued $1.4 billion of restricted stock in 2011, or nearly $500,000 per employee. So far this year, the company has doled out $1 billion of restricted stock. Facebook’s reported stock-based compensation expense—based on the amortization of several years of stock grants—could total 20 cents a share next year. Subtract that from the 2013 consensus earnings number, and the shares trade at 50 times earnings. At $15 they would still be valued at a rich 35 times earnings.”

It may well be that Zuckerberg has painted himself in a corner. He plans to keep paying the people he needs to figure out how to boost revenues with more and more shares. But the earnings dilution could continue to sink the stock. Even if Wall Street never accounts for the earnings dilution, Facebook employees will continue to have a boatload of shares to sell. Bary seems to have gotten Facebook’s investors focused on this issue. The stock is down 5% in pre-market trading.

Discover to refund $200 million to credit card customers

2012-09-24T10:55:00.001-07:00

WASHINGTON -- Discover Financial Services will refund $200 million to more than 3.5 million credit card customers and pay a $14-million civil penalty after a federal investigation determined that the company used deceptive marketing tactics to sell payment protection plans and other add-on services, two regulatory agencies announced Monday.

Scripts for Discover's telemarketers "contained misleading language likely to deceive consumers about whether they were actually purchasing a product," the Federal Deposit Insurance Corp. and the Consumer Financial Protection Bureau said.

The telemarketers downplayed important information about the add-on services and spoke quickly when they discussed prices and terms, the agencies said of the findings of their joint investigation.

In addition to a payment protection plan -- which allowed customers to stop making payments for up to two years in case they lost their job, were hospitalized or were dealing with another qualifying event -- the investigation covered programs dealing with credit score tracking, identity theft protection and Discover's Wallet Protection, which helped cancel cards if they were lost or stolen.

The telemarketing practices misled customers about whether there was a charge for the products, with language "implying that the products were additional free 'benefits,' rather than products for which a fee would be applied to their accounts," the agencies said.

Telemarketing scripts also often suggested customers would not be charged for the products until after they had reviewed written materials. But those materials were not provided until after Discover had processed the purchase of the products.

In some cases, customers were enrolled in the programs without their consent.

"We have worked hard to earn the loyalty of our card members, and we are committed to marketing our products responsibly," said Discover Chief Executive David Nelms. "As always, we will continue to strive to deliver the highest standards of customer service and satisfaction."

Discover agreed in a consent order to provide $200 million in refunds to customers who were charged for at least one of the products from Dec. 1, 2007 to Aug. 31, 2011. The refunds will depend on when the product was purchased and how long the customer kept the product, the agencies said.

In general, all customers who purchased the products will be refunded at least 90 days' worth of fees for the product, except those who affirmatively made use of the payment protection. About 2 million Discover customers will get all the fees they paid returned, minus any refunds they already received.

Discover also agreed to pay the $14-million civil penalty, to stop the practices and to submit to an independent audit.

The Discover refunds are the second major enforcement action involving the Consumer Financial Protection Bureau, which was created by the 2010 financial reform law.

In July, Capital One agreed to refund $150 million to credit card customers and pay $60 million in civil fines for deceptive marketing practices by the bank's call center vendors.

iPhone 5 sales top 5M on opening weekend

2012-09-24T10:42:00.000-07:00

Apple today said it had sold more than 5 million iPhone 5 smartphones during the opening three-day weekend of sales, a 25% increase over last year's launch of the iPhone 4S.

"Demand for iPhone 5 has been incredible and we are working hard to get an iPhone 5 into the hands of every customer who wants one as quickly as possible," said Apple CEO Tim Cook in a Monday statement.

The 5 million includes units sold through its own retail stores, those through its carrier partners' stores, and the ones that were delivered Friday or Saturday from pre-sales on its online store which started Sept 14.

Apple began selling the iPhone 5 early Friday, Sept. 21.

Analysts noted that the 5 million, while up from the three-day total of 4 million last year, fell short of their bullish estimates.

"The iPhone 5 three-day volume missed our estimate of 6 million to 6.5 million, which we believe is driven by availability as many stores that we contacted this weekend were sold out in the first 24 hours," said Brian White of Topeka Capital Markets, in a note to clients today.

Brian Marshall, a financial analyst with ISI Group, noted that his opening weekend estimate had been 6 million to 8 million.

Shortages were expected -- Apple has always had trouble meeting demand at iPhone launches -- but even Cook cited the problem today, confirming that Apple had run through its stock.

"While we have sold out of our initial supply [emphasis ours], stores continue to receive iPhone 5 shipments regularly and customers can continue to order online and receive an estimated delivery date," Cook said. "We appreciate everyone's patience and are working hard to build enough iPhone 5s for everyone."

White attributed the lower-than-expected sales to weak inventory, and said Apple could have sold more than the 5 million iPhones if it had had them.

Marshall, however, said that it was greater-than-expected demand, not a planning snafu on Apple's part, that drove the out-of-stock situation. "With retail shortages and 'available to ship within 3-4 weeks' on the Apple Store, we view this as primarily demand-driven and believe supply constraints are better than feared," he said in a note to clients.

Marshall also pointed out that the 5 million does not count in-transit iPhone 5s -- those that have been paid for, shipped from China, but not yet delivered -- which he estimated to be in the millions.

Whatever the cause -- too-short supply or heavy demand -- both analysts forecast significant sales of the iPhone 5 this quarter, which ends Sept. 30, and the year's final quarter.

"Apple clearly has a blockbuster on its hands," said White.

Cook also claimed that 100 million devices -- iPhones, iPads and iPod Touches -- had been upgraded to iOS 6 since the Sept. 19 debut of that operating system.

That was four times the 25 million devices upgraded to iOS 5 in the first five days of its availability in early October 2011. "We believe this suggests reports of dissatisfaction with Apple's new Maps application will not be a deterrent to adoption [of iOS 6]," said Marshall.

Apple's dumping of Google Maps and replacing it with its own mapping and navigation technology has raised a ruckus among customers and many pundits, and prompted rivals to run television ads poking fun at the inaccuracy of Apple's Maps app.

As of early Monday, Apple's online store showed a "3-4 weeks" delay between ordering and shipping a new iPhone 5. One Computerworld staffer who ordered a 16GB Verizon iPhone 5 on Sept. 21, for example, was told that the smartphone would not arrive until Oct. 23-29. Another, who pre-ordered on Sept. 14 just hours after Apple ran out of stock, is to receive his 64GB AT&T iPhone 5 on Sept. 28.

White acknowledged the supply issues, but believes they will improve over time.

"There's always yield issues with a new product," said White, who called the display module the "gatekeeper" of supplies. "That and the labor to assemble these things," he said in an interview. "But [the shipping] delays will come down before the end of the year. They'll be back to one to two weeks, maybe to just one week by the end of the year."

After protests, two Islamist militias agree to close bases in Libya

2012-09-23T11:43:00.001-07:00

Benghazi, Libya (CNN) -- Two Islamist militias have agreed to close their bases in the eastern Libyan city of Derna, state news and a source said Saturday.

A third base will be shut on Sunday, said the source, who spoke on the condition of anonymity.

The state-run LANA news agency said the militias, which it identified as Bou Salim Martyrs and Ansar al-Sharia, will also disband.

The move comes after hundreds marched in the nearby city of Benghazi and took over the headquarters for Ansar al-Sharia. Individuals from the radical Islamist group are accused of having been involved in the attack last week that left four Americans dead.

Protesters demanded an end to all security activities of armed groups operating outside the official command of the army or police.

Mohamed al-Magariaf, president of Libya's General National Congress, later told reporters that a joint security office would be established to bring together the army and the various brigades backed by the government. Militias outside that office will not be allowed to operate, he said.

As militia members fled the headquarters in Benghazi, demonstrators torched a vehicle and took over the group's building without firing a single shot.

Army General Naji al-Shuaibi said the citizens, whom he referred to as "revolutionaries of the February 17 uprising," later asked that the Ansar al-Sharia headquarters be handed over to the Libyan army.

Some protesters also gathered at locations that house forces loyal to the national authority, he said, including the headquarters of the Rufallah al-Sihati battalion. Gunfire could be heard there, but it was not clear who was responsible.

At least four people were killed and 70 were injured in clashes at the Rufallah al-Sihati brigade headquarters, LANA reported.

Al-Magariaf thanked the protesters for helping evict "armed groups." He also said the Rufallah al-Sihati brigade was actually "under the command of -- and committed to -- the national authority," the case appeared to be one of mistaken identity. Magariaf asked demonstrators to stop their activities and go home.

On the night of September 11, U.S. Ambassador Chris Stevens was one of four Americans slain after a group assaulted the U.S. Consulate in the eastern Libyan city.

Seen as the birthplace of the revolution that led to the death of longtime Libyan leader Moammar Gadhafi, Benghazi has in recent months been beset by security issues.

Initial reports indicated that, ahead of the consular attack, Ansar al-Sharia had organized a protest to decry an inflammatory film that mocks the Prophet Mohammed and also protest the United States, where the film was privately produced.

On Thursday, Libyan Prime Minister Mustafa Abushagur said eight detained in connection with that assault include members of Ansar al-Sharia, though he added that not all the attackers came from one specific group.

Brother of Ravens WR Torrey Smith killed in motorcycle accident

2012-09-23T11:24:00.002-07:00

The younger brother of Baltimore Ravens receiver Torrey Smith was killed in a motorcycle accident Saturday night.

Smith left the Ravens' team hotel early Sunday after receiving the news about his brother, Tevin. The Ravens were letting Smith decide whether he wanted to play in Sunday night's home game against the New England Patriots.

"This is devastatingly sad, sad news. Torrey and his family are a close, special family, and our hearts and thoughts reach out to all of them. Our hearts ache today. We pray for Tevin, his mother, Torrey and the rest of the family. God bless Tevin."

Coach John Harbaugh said he did not know if Smith would play Sunday night.

"Torrey’s priority is his family. We understand that completely."

On Sunday, Smith posted this message on his Twitter account:

"I can’t believe my little brother is gone ... be thankful for your loved ones and tell them you love them ... this is the hardest thing ever."

If Smith does not suit up, he will be replaced by Jacoby Jones.

Now in his second season with Baltimore, Smith grew up in Virginia before attending the University of Maryland.

Van Persie pen sinks Reds

2012-09-23T10:55:00.002-07:00

Battling Reds lose out as Van Persie fires United to win from spot

Robin van Persie's second-half penalty handed Manchester United a 2-1 victory over 10-man Liverpool on an emotionally-charged afternoon at Anfield.

The clash marked the Reds' first home game since the recent report into the 1989 Hillsborough tragedy in which 96 supporters lost their lives, and the encounter was marked with tributes to the victims and their families ahead of kick-off.

And it was fitting that talismanic Liverpool captain Steven Gerrard was the player to break the deadlock in the 51st minute after the Reds had dominated the first half.

His goal came after team-mate Jonjo Shelvey had been dismissed for a rash challenge on Jonny Evans shortly before the break.

The skipper's opener provided the wake-up call United needed as Rafael netted a classy goal just five minutes later, then Van Persie added another from the spot after Valencia went down in the area under Glen Johnson's challenge.

The win was United's fourth on the bounce and left them second in the early Premier League table while Brendan Rodgers' men, despite a battling display, remain without a success this season having taken two points from five games.

Unity

Luis Suarez and Patrice Evra shook hands in a show of unity before the game - the Liverpool forward had refused to shake the United defender's hand in the league meeting between the sides at Old Trafford in February, having previously been found guilty of racially abusing Evra in the corresponding fixture at Anfield last season.

Thankfully there were none of the distasteful chants which have marred this fixture for years, although that did not mean there was not an edge to the game.

United may have left Anfield wondering how they managed to win having hardly threatened in attack and failed to dominate midfield until the final quarter but those concerns will have been of little consequence.

For the first minute of the match three sides of Anfield held up The Truth, Justice and 96 mosaics as representatives of the Hillsborough victims' families watched on from the directors' box.

Also present, for the first time since being sacked in May, was former manager Kenny Dalglish - intrinsically linked with the tragedy having played a major role in the aftermath during his first spell in charge.

What he saw in the first half would have been very familiar as for most of last season his sides dominated at home without scoring.

Once Giggs had flashed an early shot wide the momentum was all with the hosts as a Suarez cross-shot was stopped by Anders Lindegaard and headed away by Jonny Evans under pressure from Fabio Borini.

Gerrard drove a low effort from Shelvey's corner into the side-netting and Suarez looped a right-footed shot wide before a match which, possibly because of the all the pre-match commemorations, had lacked the usual hallmarks of a north-west derby ignited.

Shelvey robbed Giggs in midfield but as the ball broke free he launched himself at Evans and the inevitable outcome was a red card.

The 20-year-old midfielder, who scored twice in Thursday's UEFA Europa League victory at Young Boys, departed down the tunnel having exchanged heated words with Sir Alex Ferguson.

Even with a numerical disadvantage Liverpool continued to pressurise United and Suarez drew Lindegaard into a low saw from his free-kick.

The visitors would have been pleased to reach the interval with their goal intact but it took just 50 seconds after the restart for that to change.

Second-half substitute Suso, making his Premier League debut three days after his first-team bow in Switzerland, saw his cross half-cleared to Glen Johnson.

A tackle from Paul Scholes, on for Nani at half-time, succeeded only in diverting the ball towards Gerrard who volleyed home left-footed in front of the Kop.

The Reds captain, whose 10-year-old cousin Jon-Paul Gilhooley was the youngest victim of the Hillsborough disaster, whirled away pointing both arms to the sky in celebration and remembrance.

It was short-lived, however, as within five minutes United were level when Shinji Kagawa laid the ball off for Rafael to brilliantly curl left-footed over Jose Reina and in off the far post.

Determination

Rodgers' determination not to just shut up shop and settle for a draw was reflected in the approach of his team who made light of the fact they were a man down with Suso having a shot tipped over by Lindegaard and Suarez continuing to trouble the visitors' defence.

But as the match entered the final 20 minutes United began to take more control, although their winner came from their opponents giving away possession on the halfway line.

Daniel Agger and Johnson collided to allow Antonio Valencia to race 50 yards into the area and although Johnson got back he could only bring down the Ecuador international.

Van Persie drilled home - although Reina went the right way and almost made the stop.

Liverpool	Team Statistics	Manchester United
1	Goals	2
0	1st Half Goals	0
6	Shots on Target	3
6	Shots off Target	3
2	Blocked Shots	2
7	Corners	3
14	Fouls	7
0	Offsides	1
1	Yellow Cards	2
1	Red Cards	0
84.7	Passing Success	85
23	Tackles	29
69.6	Tackles Success	72.4
52	Possession	48
47.6	Territorial Advantage	52.4
459	Total Passes	420
26	Total Crosses	18
146	Lost Balls	139
54	Recoveries	56
63.1	1st Half Poss.	36.9
41.2	2nd Half Poss.	58.8

Gilbert on top of the world

2012-09-23T10:46:00.000-07:00

Belgian star seals rainbow jersey in Holland

Philippe Gilbert has been crowned World Road Race Champion after a late break for glory proved successful in Limburg.

The Belgian rider came home four seconds ahead of Norway's Edvald Boasson Hagen after the 261km race was blown apart on the final climb of the Cauberg.

The course was ideal for Gilbert, and his team-mates kept him well protected over the early kilometres as a large breakaway group built a lead of over five minutes.

But the field was back together as the action neared its conclusion, despite an effort from Britain's Ian Stannard and American rider Andrew Talansky.

Gilbert moved alongside Vincenzo Nibali (Italy) on the final slopes and his dig built a lead that would prove too much for the others to bridge.

The 30 year old had time to celebrate before crossing the line to emulate legendary compatriot Eddy Merckx, who also won a world championship on Dutch soil back in 1967.

Boasson Hagen beat Spaniard Alejandro Valverde in the sprint for second, with the remnants of the leading group coming home just behind, among them Jonathan Tiernan-Locke who proved best of the British team in 19th place.

Tiernan-Locke and Stannard were the only British riders left in the lead group with Mark Cavendish abandoning the race more than 100km from the end, with Bradley Wiggins, Alex Dowsett and Chris Froome also climbing off their bikes.

Sanders dies aged 46

2012-09-23T07:40:00.001-07:00

Former world heavyweight champion gunned down in robbery

Former world heavyweight champion Corrie Sanders has died at the age of 46 after being shot in a robbery.

The South African was dining at a restaurant in northern Johannesburg when he was shot in the stomach, and he died of his wounds in hospital hours later.

North West Police Brigadier Thulani Ngubane told Press Association Sport that gunmen entered a restaurant in the town of Brits where Sanders was attending his nephew's birthday celebrations.

Brigadier Ngubane said: "I can confirm Corrie and his family were celebrating his nephew's birthday, turning 21, and enjoying a meal last night. In the midst of the celebrations, at about 7.45pm in the evening, about three suspects came in.

"They were planning to commit an armed robbery.

"Then in the armed robbery they shot randomly. Corrie was shot in the hand and also the stomach.

"They fled with a digital camera and also a handbag of one of the people who was in the restaurant."

Sanders was rushed to Kalafong hospital but died "in the early hours of the morning", Brigadier Ngubane said.

There have been no arrests in the case, he added, but stated police are "in hot pursuit".

Sanders caused one of the biggest upsets in heavyweight history in 2003 when he sensationally knocked out Wladimir Klitschko in Germany to win the WBO title.

The southpaw had gone into the bout as a huge underdog, but he dropped Klitschko twice in a dramatic opening round before finishing him off with a huge left in the second.

Sanders was stopped by Klitchsko's brother Vitali in the eighth round of his next fight in 2004, but he won three more fights before a first-round knockout against Osborne Machimana in 2008 ended his 20-year career.

He turned professional in 1988 and first held the South African heavyweight title with a first-round knockout of Johnny DuPlooy in 1991.

Sanders, renowned for his quick hands, won his first 23 fights and retired with a record of 42 victories, with 31 knockouts, and four defeats.

Singapore GP: Vettel takes over from Hamilton

2012-09-23T07:34:00.001-07:00

Lewis forced into retirement from the lead of the race after gearbox failure

Sebastian Vettel has trimmed Fernando Alonso's lead of the World Championship to 29 points after winning a Singapore GP that looked to be the property of Lewis Hamilton until the McLaren driver's retirement with a broken gearbox.

In a rough and ragged race, Hamilton's cruel retirement from what had appeared to be a comfortable lead was the marathon's defining moment - and very possibly a decisive moment in the title race as well.

With Hamilton relegated from second to fourth in the standings, the Englishman now trails Alonso by over fifty points which is the equivalent of two race wins but still amounts to a tall - if not insurmontable - order whichever way you look at it. Vettel, on the other hand, is now ominiously positioned behind Alonso to claim a third successive title.

Though anything but a classic, this was a ragged race which developed like the plot of a classic western movie. The good: Vettel's faultless performance both before and after Hamilton's premature exit to secure victory ahead of Jenson Button and Alonso; the bad: Hamilton's luckless retirement through no fault of his own; The ugly: Michael Schumacher's inexplicable shunt into the back of Jean-Eric Vergne's Toro Rosso which drew the afternoon's Safety Car deployment and the prospect of official ramifications for the veteran.

Vettel himself only narrowly avoided an accident of his own after braking sharply in front of Jenson Button as the field snaked around behind the Safety Car. That incident, though, was the only blemish in an otherwise impeccable display from a driver who had bore a face like thunder after a messy qualifying hour on Saturday. With twenty-fours, the grimace had been replaced by a grin and an emotional outpouring which revealed plenty about Vettel's mind-set this weekend.

On the podium, Alonso's smile was less pronounced. It was certainly there, and the Spaniard will have welcomed Hamilton's retirement both for the extra points and the reduction of his former team-mate's title prospects, but Ferrrari's lack of pace will be of considerable concern. The championship leader has not won a grand prix for over two months and, on this weekend's evidence, Ferrari have apparently fallen further behind both Red Bull and McLaren.

Germany Octoberfest: The Celebration Begins

2012-09-23T03:47:00.002-07:00

The world's largest beer festival opened Saturday in Germany as Munich's mayor tapped the first keg to kick off the 16-day Oktoberfest, known for its oompah music and traditional costumes.

With only two blows of his hammer and a cry of "O'zapft is" – "It's Tapped" – Mayor Christian Ude inserted the tap into the first keg, opening the 179th Oktoberfest to the cheering of thousands who were waiting to be served their first beer.

More than 6 million guests from around the world are expected to descend on the beer tents of Munich to celebrate the 16-day Oktoberfest extravaganza.

Last year's visitors consumed almost 8 million two-pint (one-liter) mugs of beer. This year a mug, called "Mass" in German, of the malty pale beer made exclusively by Munich's breweries sells at up to (EURO)9.50 ($12.30).

The Oktoberfest started with a wedding party: Just over 200 years ago, Bavarian Crown Prince Ludwig celebrated his royal nuptials with a big public bash that was such a hit it became an annual event. Nowadays, it is now known worldwide for its towering mugs of beer, oompah music, men wearing traditional Bavarian Lederhosen leather shorts and women in bright costumes.

While the core of the Oktoberfest remains the same, with Dirndl-clad waitresses delivering steins, its flavor has evolved over the years. A local festival with small beer gardens has mushroomed into a major international event featuring about a dozen cavernous beer tents, some seating about 10,000 singing, inebriated revelers at a time.

Last year, the Oktoberfest guests ate around 500,000 chickens, 120 oxen and an unknown number of large doughy pretzels at the festival.

The fairgrounds of the "Wiesn," as Oktoberfest is locally known, are spread out over about 75 acres (30 hectares) and can accommodate hundreds of thousands of people at a time, and German authorities keep security tight, although, they say, no concrete threat exists.

"I want it to be a peaceful Wiesn, and that the weather improves," Ude said.

Many tents were already full at midday, German news agency dapd reported, but rain ensured that there was still enough space in the outdoor beer gardens.

Apple, Samsung Demand Changes to $1B Verdict

2012-09-23T01:51:00.001-07:00

Neither side in a bitter patent battle is satisfied with Apple Inc.'s $1 billion jury verdict over Samsung Electronics Co. after a three-week trial this summer.

Samsung wants a new trial. Apple is seeking an additional $707 million in damages and interest.

The two companies filed a blizzard of legal papers late Friday and early Saturday with their demands that a federal judge in San Jose significantly amend — or toss out altogether — the jury's Aug. 24 verdict.

The jury found that 26 Samsung products ripped off Apple's technology at the heart of its iPhones and iPads.

"Samsung made a calculated business decision to copy the industrial designs, graphical user interfaces, and touchscreen navigation technology of the iPhone and iPad," Apple lawyers wrote in court papers, arguing for the additional damages. "Samsung has reaped extraordinary rewards from its wrongful sale of iPhone and iPad clones by taking market share, revenues, and profits from Apple."

The Apple lawyers contend that the "massive damage to the iPhone's distinctive product identity caused by Samsung's sale of millions of iPhone clones is irreversible."

U.S. District Judge Lucy Koh has scheduled a Dec. 6 hearing to discuss the myriad issues raised by both companies. Samsung says it will appeal if Koh turns down its demands.

The two companies are locked in a ferocious struggle for supremacy in the global smartphone market. Samsung is the worldwide leaders in smartphone sales, securing a market share of 33 percent in the second quarter, up from 17 percent a year ago. Apple's fell slightly to 17 percent, from 19 percent a year ago.

Apple accuses Samsung of essentially selling knockoffs of the Cupertino-based company's iPhones. Apple filed a lawsuit in San Jose federal court, alleging patent infringement. It was the latest legal action between the two companies, who are battling in courts in 10 countries over smartphone technology.

On Friday, Samsung asked the San Jose judge for a new trial. The company's lawyer argued that the jury's verdict was unreasonable and unsupported by the testimony and evidence. The company's lawyers also complained that the judge's strict constraints on the number of witnesses and testimony time deprived it of a fair trial.

"The Court's constraints on trial time, witnesses and exhibits were unprecedented for a patent case of this complexity and magnitude, and prevented Samsung from presenting a full and fair case in response to Apple's many claims," the company's lawyer wrote in court documents.

Representatives of both companies couldn't be reached for comment.

Rate alert: inflation beating savings deals

2012-09-22T13:54:00.001-07:00

Fight inflation with the latest savings deals, we review the recent launches.

Savers received a slight fillip this week after inflation figures showed that the consumer prices index (CPI) had fallen to 2.5pc in August from 2.6pc the month before.

To find an inflation-beating savings account, basic-rate taxpayers need one paying at least 3.12pc a year, while higher-rate taxpayers will need to find an account that pays at least 4.2pc.

According to Moneyfacts.co.uk, the effects of inflation mean that £10,000 invested five years ago would have the spending power of just £9,248 today, assuming average interest and tax at 20pc.

Of the 1,017 savings products currently available, just 198 negate the effects of inflation and tax. Of these accounts, 66 are fixed-rate bonds, 129 are Isas and three are notice accounts. There are no easy-access accounts on the list.

In a bid to help you eke the most out of your money, we look below at some of the latest deals.

Falling bond rates

Aldermore falls out of the best-buy tables this week by reducing the rate on its one-year fixed-rate bond from 3.25pc to 3.1pc for those with a minimum deposit of £1,000. If savers' balances dip below this amount, just 0.5pc interest will be paid. The bank has also withdrawn its 120-day notice account, which paid a rate of 3.2pc.

Verdict "Another week, another best-buy product falling out of the tables," said Susan Hannums of SavingsChampion.co.uk. "This time it's Aldermore with a reduction in its one-year fixed rate and the withdrawal of its 120-day notice account. Savers need to act quickly as these best-buy deals aren't lasting long."

For those looking for a one-year fixed-rate bond, Close Brothers Savings Select Gold is paying 3.3pc if you have £10,000 to invest. For savers who have less to save, the Post Office One-Year Growth Bond pays 3.25pc for those with a minimum deposit of £500. For further information on these accounts, visit closesavings.co.uk (020 7392 1772) or postoffice.co.uk (0800 169 7500).

Earn mortgage cashback

From Monday, borrowers with Santander loans can earn 1pc cashback on their mortgage payments with the 123 Current Account. Borrowers who pay their mortgage by direct debit of up to £1,000 a month can potentially earn £120 a year on their spend.

This account also pays cashback on other household bills paid by direct debit – for instance, 1pc on water and council tax, 2pc on gas and electricity and 3pc on mobile phones, landline, broadband and paid-for TV packages.

Additionally, the 123 Current Account pays in-credit interest on the whole balance of up to 3pc once savers have more than £1,000 in their account, up to a maximum balance of £20,000. Visit santander.co.uk for more information.

Verdict Thumbs up if you are always in credit. Even with the £2 a month fee, those with a hefty mortgage could easily make a profit from their home loan payments alone.

However, as with all accounts, it is crucial to read the small print. For instance, with this account you must have a minimum monthly income of £500 and two direct debits set up, while the in-credit interest is tiered, at 1pc on balances over £1,000, 2pc on £2,000 and 3pc on £3,000. Bear in mind that those who slip into their overdraft will negate any earnings, with a charge for an arranged overdraft of £1 a day, capped at 20 days, or for unauthorised overdrafts at £5, capped at £95 per monthly statement period.

Go online for better rates

Last week Saga withdrew its market-leading easy-access Telephone Saver (issue 5), which paid 3pc, and replaced it with an account paying just 2.75pc – or 2.72pc if savers take the monthly income option. Available for those with a minimum deposit of £1, savers can manage this account by telephone but can apply online. Unlimited no-notice withdrawals are permitted using a linked account.

Verdict Saga's Telephone Saver was one of the last easy-access accounts paying 3pc and the rate cut on its new issue sees it fall out of the best-buy tables. Bear in mind that the account also comes with a hefty bonus of 2.25pc, so it's important to make a note in your diary to move the money after 12 months, as the rate will fall to just 0.5pc.

For those savers looking for a higher rate on an account with telephone access, ING Direct's Savings Account (ingdirect.co.uk or 0800 376 8877) is available for new customers and pays 2.86pc. This includes a bonus of 2.36pc for 12 months.

However, those who are happy to operate an account online can find higher rates: for example, the Post Office's Online Saver pays 2.95pc on deposits of more than £1. While this account does include a bonus, it is significantly less than accounts above – just 1.3pc. For further information, visit postoffice.co.uk or call 0800 169 7500.

Supermarket saver

And finally some good news: Sainsbury's Bank has increased the interest rate on its cash Isa from 2.8pc to 3.01pc for new accounts.

The account does not include a bonus rate, balances start from £500 and transfers in are permitted. Open to new and existing customers, the account can be opened and managed online or by phone and imposes no withdrawal restrictions. As this is a cash Isa, the maximum that can be invested this tax year is £5,640. As with other Isas, though, savers should remember that if they have paid in their full allowance, any amount withdrawn cannot be replaced during the same tax year. For more information, visit sainsburysbank.co.uk or call 0500 405 060.

Verdict While not a market-leading rate, this account does not include a bonus. The current best buy comes from Manchester Building Society's Platinum Instant Isa, which pays 3.06pc. However, it comes with a 1.05pc bonus rate that is payable for the first 12 months. So for those who don't chase rates and switch their Isa every year, the Sainsbury's deal is likely to offer better long-term value.

Hardline Muslims 'threaten tourism in the Maldives'

2012-09-22T13:48:00.000-07:00

The former president says resorts in the popular honeymoon destination may be made alcohol-free and spas could be banned.

Growing Islamisation could lead to the banning of spas, same-sex beaches and alcohol from holiday resorts in the Maldives, the country’s former president believes.

Mohamed Nasheed, the Maldives’ first democratically elected leader, who was ousted on February 7, said the influence of hardliners in the current coalition government, led by the former vice-president, Mohammed Waheed Hassan, and including the Islamic Adhaalath Party, could have a dramatic impact on the future of tourism in the archipelago.

“I think that is the direction we are going,” he said in an interview with Telegraph Travel. “They are talking about alcohol-free resorts, about getting non-drinking tourists to come in from Iran. I can easily imagine holidaymakers being prosecuted for kissing in public, as in some Muslim countries.”

Referring to a recent campaign by the ministry of Islamic affairs aimed at strengthening “Islamic values”, he said: “Public dancing, singing and spas have been banned in Malé [the capital city]. But un-Islamic behaviour is un-Islamic behaviour whether it is in Malé or in a resort.

“If the country is being radicalised every day, then the staff in the resorts, and their families, are being radicalised also. That must have some impact on the resorts in the medium and long term.”

The Maldives, a popular destination for honeymooners, is generally considered to be more tolerant than other Muslim countries, but recent evidence appears to suggest otherwise.

Last week, following the appearance of the controversial video Innocence of Muslims on YouTube, there were angry protests in Malé that culminated in the burning of an American flag. Earlier this month a court ordered the public flogging of a 16-year-old girl.

Any attempt to ban alcohol or spas would be widely resisted given the reliance of the country on tourism, which accounts for about a third of the Maldives’ gross domestic product.

Earlier this year, Ahmed Adeeb Abdul Gafoor, the minister for tourism, ruled out bans on spas or restrictions on the sale of alcohol in holiday resorts. The government has also sought to play down the Islamic affairs ministry’s campaign.

Mr Nasheed – who became president in 2008, ending the 30-year authoritarian rule of Maumoon Abdul Gayoom – maintained that his overthrow was the result of a “coup”, led by Mr Gayoom and backed by a handful of holiday- resort owners, and dismissed a recent government-led inquiry into the events of February 7, which found that the handover of power had been legitimate.

Mr Nasheed also expressed concern at the behaviour of the government’s security forces – an issue that has been raised in recent reports by Amnesty International and the International Federation for Human Rights. Both organisations have highlighted the violent repression of pro-democracy demonstrations, while contending that freedom of assembly, press and speech are being eroded. Doubts have also been raised about the recent reappointment of several politicians who held power under Mr Gayoom, at a time when Mr Nasheed’s Maldivian Democratic Party (MDP) is being marginalised.

Mr Nasheed urged holidaymakers to avoid those resorts whose owners he alleges were responsible for his downfall, but backtracked on calls made earlier this year for a complete tourist boycott.

He claims that a number of resort owners wanted him removed because of his economic policies, which included the establishment of income tax and corporation tax, the opening up of the country to mid-market tourism, and the establishment of a major programme to attract foreign investment.

“[The resort owners] didn’t want anyone else to touch what they can tap. They also opposed our social-protection programmes, which meant ordinary Maldivians no longer had to beg resort owners for help,” he said.

“I ask people to avoid resorts whose owners are in government; look for political leaders who have tourism interests. Before you book your hotel or resort holiday, just read about the Maldives. And write to your foreign minister or MP and tell them about what is happening.”

Mr Nasheed was in Britain to lobby the Commonwealth Ministerial Action Group to keep the Maldives on its agenda and to ensure that elections – scheduled for next summer – go ahead.

He and several other members of the MDP are awaiting trial over charges relating to Mr Nasheed’s ordering of the arrest of a judge last year, a move that sparked several weeks of protests that culminated in his overthrow.

The vast majority of holidaymakers head from Malé International Airport directly to their island resort, where civil unrest is highly unlikely. Those who do visit the capital are told to exercise caution and avoid demonstrations and spontaneous gatherings. See fco.gov.uk for more information

Hamilton starts Singapore Grand Prix on pole, Fernando Alonso starts from fifth place

2012-09-22T13:44:00.000-07:00

Lewis Hamilton insisted this week that McLaren were still “1,000 per cent” behind him, despite all the frenzied speculation linking him with a possible switch to Mercedes.

On Saturday, beneath the glare of 1,500 halogen lamps, with Singapore’s 30C heat firmly on both him and the team, he demonstrated once again why it would be such a huge gamble from both sides to allow their partnership to end.

Hamilton’s 24th career pole, his third in his last four races, was not just dominant, it was truly imperious.

No one could match him. Not his team mate, Jenson Button, who could only take fourth on the grid, six tenths off Hamilton’s pace; nor Red Bull’s double world champion Sebastian Vettel, who may well have the fastest car around this circuit but who was unable to respond to Hamilton’s stunning lap, set early in Q3, and ended up third on the grid.

Are McLaren really prepared to let that raw speed walk out the door for the sake of a few million quid? Team principal Martin Whitmarsh all but admitted this week that Hamilton has been offered a reduction in his £15 million per year salary.

And is Hamilton really prepared to give up his seat at a team who have just taken four consecutive poles for the first time this century?

Chipper Jones doesn’t think highly of baseball’s new one-game playoff

2012-09-22T13:37:00.000-07:00

Retiring Atlanta Braves star Chipper Jones has become a little more outspoken as he approaches the finish line of his 19-year career. That continued on Friday night prior to the Braves 6-2 loss to the Phillies in Philadelphia.

The topic he weighed in on this time?

That would be Major League Baseball's new one-game wild-card playoff, which, barring a ridiculous collapse by the Washington Nationals in the National League East or another late season tumble by Atlanta, will directly affect his Braves' postseason chances. And let's just say that when asked for his opinion on the subject, he didn't disguise his feelings one bit.

From the Atlanta Journal Constitution:

"I think it's stupid, to be honest with you," Jones said. "But Major Lague Baseball wants a bunch of teams in the playoffs. There's nothing like cut-throat baseball for the fans. And people love that 163rd regular-season game. They've loved it in the past.

I'm sure that's probably what's promoted a second wild-card team. I wish they would've done it a year earlier so we would have had a chance last year. But it is what it is."

The timing is likely what irks Jones the most about baseball's new rule. Had it been in place when the Braves blew an 8 1/2 game wild-card lead over the St. Louis Cardinals last September, I'm sure he'd be just as much in favor of it as Bud Selig. This season, the Braves again hold a large six-game advantage over the Cardinals, with the Phillies, Dodgers and Brewers not far behind, but would find themselves getting ousted all over again should one of those teams knock them off in the one-game playoff.

They just can't find a comfortable position, and if they were to lose that play-in game, that would have to be the most brutal back-to-back season endings we've seen in any sport in quite some time.

"You say to yourself, we could possibly have the second- or third-best record in the National League when the season's over and we have to play a one-game playoff just to get in," Jones said. "That doesn't seem fair because anything can happen [in one game].

Now if you were to say the two wild-card teams will play a best two-out-of-three [series], I'd be OK with that. We play three-game series all the time, and we concentrate on winning those series all the time. I think it's more fair from a standpoint that anything can happen in one game — a blown call by an umpire, a bad day at the office … at least in a two-of-three-game series you have some sort of leeway."

I think Chipper makes a decent point there, but the scheduling conflicts would be unworkable and of course there's the potential result of the higher seeded team winning game one and losing games two and three, leading to complaints about the series format.

There's really no way for baseball to win from that perspective, but considering the money they're about to make from it, there's no way for them to lose where it matters most.

I guess the lesson for all teams here is to either win your division, which thankfully takes on much more importance again, or step up and win the baseball game with your back against the wall. There's nothing to feel bad or complain about if you accomplish one of the two.

Who Was The Biggest NBA Draft Bust?

2012-09-22T01:26:00.000-07:00

Barring any major surprises, Anthony Davis will be pulling on a garish New Orleans Hornets cap as the No. 1 overall pick in the 2012 NBA Draft. The man with the most famous unibrow in sports has been the presumptive No. 1 pick since he declared his intentions to leave Kentucky after just one season.

Named the Most Outstanding Player of the 2012 NCAA Tournament for his prodigious work in leading the Wildcats to the national championship, the 19-year-old from Chicago has been compared to some historically good players as the draft approaches. His shot blocking prowess evokes a lean and mean Patrick Ewing at Georgetown. His ability to handle the ball and pass has made some think of Chris Webber. For a more recent comparison, Tim Duncan has been mentioned in discussions of Davis' ceiling. The names Kevin Garnett, and Marcus Camby have also been tossed around.

While the Hornets would love for Davis to be the next Garnett, Duncan or Ewing they'd quite likely settle for the next Camby. What they can't afford is for Davis to eventually find himself named alongside players like Kwame Brown and Michael Olowokandi as one of the more memorable busts in NBA Draft history.

With Davis considered the only "sure thing" that the 2012 edition of the draft has to offer, the bust potential picks up as early the No. 2 pick. If the Charlotte Bobcats don't trade the pick, ESPN's Chad Ford sees them tapping Davis' teenaged teammate Michael Kidd-Gilchrist. Another pair of teenagers, Bradley Beal out of Florida and Andre Drummond from UConn, have also been touted as potential No. 2 picks. Davis included, the risks of drafting someone so young are well known. How will these young men mature on and off the court? Of course, a relative veteran (three seasons at Kansas) like Thomas Robinson, who has also been suggested in the second spot, is no sure thing either.

The No. 2 selection has produced some of the more infamous bust picks of the lottery era, with Darko Milicic and Sam Bowie both hearing their names called before guys with last names like Jordan and first names Carmelo and Dwyane. There are also a few folks in Atlanta lamenting selection of Marvin Williams with the second pick in 2005 while a pair of point guards named Deron Williams and Chris Paul were waiting to pull on an ugly cap.

Sometimes a bust is a player like Frederic Weis (picked No. 15 by the Knicks in 1999 with native son Ron Artest on the board) who does absolutely zilch in the NBA. But other times a serviceable player (Williams, Bowie) is forever a bust because of the players that could have been take in that spot.

Melky Cabrera Out Of NL Batting Title Chase After Requesting MLB Remove Him

2012-09-22T01:13:00.005-07:00

Melky Cabrera ended the debate over whether a suspended drug cheat should be able to win a batting title. The San Francisco outfielder asked Major League Baseball officials to disqualify him and on Friday they agreed.

With less than two weeks left in the regular season and Cabrera on track to win the National League batting championship, MLB and the players' association reached a deal on a one-season-only change in the rule governing the individual batting, slugging and on-base percentage champions.

Serving a 50-game suspension, Cabrera entered Friday with a league-leading .346 average, seven points ahead of Pittsburgh's Andrew McCutchen. Cabrera, the All-Star game MVP, was suspended Aug. 15 for a positive test for testosterone and is missing the final 45 games of the regular season.

"He was just manning up and saying he was wrong," said McCutchen, who is four points ahead of San Francisco's Buster Posey. "It was man of him to do that. I guess he thought that was the right thing to do, and I commend him for doing that."

Cabrera had 501 plate appearances, one short of the required minimum, but would have won the title under section 10.22(a) of the Official Baseball Rules if an extra hitless at-bat were added to his average and he still finished ahead. With Friday's agreement, that provision won't apply this year to a player who "served a drug suspension for violating the Joint Drug Program."

The process for the change was set in motion Wednesday evening when Cabrera's agent, Seth Levinson, sent an email to union head Michael Weiner with an attached letter from Cabrera in English and Spanish.

"I ask the Players Association to take the necessary steps, in conjunction with the Office of the Commissioner, to remove my name from for the National League batting title," Cabrera wrote in the letter, a copy of which was obtained by The Associated Press.

"To be plain, I personally have no wish to win an award that would widely be seen as tainted, and I believe that it would be far better for the remaining contenders to compete for that distinction," Cabrera wrote. "So too, the removal of my name from consideration will permit me to focus on my goal of working hard upon my return to baseball so that I may be able to win that distinction in a season played in full compliance with league rules. To be plain, I plan to work hard to vindicate myself in that very manner."

Lawyers from MLB and the union finished drafting the change on Friday.

"Major League Baseball will comply with Mr. Cabrera's request," Commissioner Bud Selig said. "I respect his gesture as a sign of his regret and his desire to move forward, and I believe that, under these circumstances, the outcome is appropriate, particularly for Mr. Cabrera's peers who are contending for the batting crown."

On Wednesday morning, Selig had said "we generally don't interfere" in the batting title issue.

Cabrera then took the initiative.

"It goes without saying that the last couple of months have been painful for Melky and he has certainly paid a significant price for the mistake that he made," Levinson wrote in the email, also obtained by the AP. "He wants to show the baseball world that he is remorseful and worthy of a 2nd chance. He understands that it will take both time and action to restore his good name and to prove that his love and respect for the game is unequivocal."

Qualifications for the batting championship are contained in the scoring section of the Official Baseball Rules, and Article 18 of baseball's labor contract says that if management and the union don't reach an agreement on proposed scoring rule changes that "significantly affect terms and conditions of employment," then the changes can't be put into effect until after the next complete season – which in this case would delay a modification until 2014.

But MLB and the union can change the rule at any time if they agree.

"I am grateful that the Players Association and MLB were able to honor my request by suspending the rule for this season," Cabrera said in a statement. "I know that changing the rules midseason can present problems, and I thank the Players Association and MLB for finding a way to get this done."

Baseball rules state a player needs to average a minimum 3.1 plate appearances for each of his team's games to become a batting, slugging or on-base percentage champion. But the last sentence of 10.22(a) says: "Notwithstanding the foregoing requirement of minimum appearances at the plate, any player with fewer than the required number of plate appearances whose average would be the highest, if he were charged with the required number of plate appearances shall be awarded the batting, slugging or on-base percentage championship, as the case may be."

The provision came into play for the first time in 1996, when San Diego's Tony Gwynn won his third straight NL batting title, and his seventh overall. Gwynn hit .353 in 498 plate appearances and won when four hitless at-bats were added and his average still topped that of Colorado's Ellis Burks, Gwynn's closest pursuer at .344.

As the agreement is worded, the only way Cabrera would qualify for the batting title is if the Giants had a rainout and played only 161 games, in which case 499 plate appearances would be sufficient. Such a situation is unlikely this late in the season.

Weiner praised Cabrera, saying "We commend Melky's decision under these circumstances."

Even before the decision was announced, Giants reliever Jeremy Affeldt said he was against a Cabrera title.

"I don't think you should be entitled to certain awards when you've been caught in those situations," he said. "I don't care who it is. I don't care if it's my best friend, if it's Melky or someone I don't even know. ... I would say the same thing to my son, `Son, if you get caught doing these things you shouldn't be available for any of that, just on principle.'"

Pirates manager Clint Hurdle called Cabrera's decision "a voice of reason."

"It would have been hard to understand," he said of a Cabrera batting title. "That being said, there's a lot of things that happen in life that are hard to understand. So we don't have to worry about that anymore."

Posey was thinking more about the Giants' place in the standings – atop the NL West – than his position in the batting race.

"Personal achievements and accomplishments are always nice," he said. "Being fortunate enough to win a World Series in 2010 and knowing how much fun that was and this year with the guys on the team and the whole city. Ultimately that's where I get the most satisfaction."

Giants manager Bruce Bochy doesn't think the batting title would be tarnished if Posey finishes ahead of McCutchen's average but below Cabrera's.

"If he wins," Bochy said, "he earned it."

Texas Jury Convicts Man in 1984 Murder of Friend

2012-09-22T00:53:00.001-07:00

A man accused of repeatedly stabbing a friend in 1984 after she rejected his romantic advances, then leaving her body to be found by her mother beside a blood-soaked bed, was convicted of capital murder late Friday by a Texas jury and sentenced to life in prison.

Ryland Shane Absalon, 45, was accused of stabbing 18-year-old Ginger Hayden more than 50 times in her family's Fort Worth apartment. Prosecutors alleged that he confessed two years later during a drug-treatment program, yet he wasn't charged until about 25 years later after the case was re-opened and DNA evidence was tested.

Absalon lowered his head as the verdict was read, and his wife began crying. She ran out of the courtroom sobbing loudly as the judge read the sentence of life in prison, which was automatic because prosecutors didn't seek the death penalty.

Hayden's relatives cried quietly in the courtroom.

Investigators said Hayden was attacked in her bed with a kitchen knife. She was found on the floor when her mother went into her room, wondering why her daughter's alarm clock kept ringing on what would have been the teenager's second day of college. She had dreams of becoming a physical therapist.

"I'm relieved that they finally put him away," her mother, Sharon Hayden Harvey, said after the verdict. She said she has thought about the brutality of the crime every day, but "now that he's in prison, I can let it go."

Defense attorney Gary Udashen declined comment after the verdict.

During closing arguments earlier Friday, Udashen said Absalon falsely confessed because he was pressured and abused at the drug-treatment center and believed everything he said would be kept confidential. He argued that some of Absalon's DNA was found in Hayden's apartment because the teens were former high school classmates and neighbors who would hang out.

Udashen reminded jurors that DNA found under Hayden's fingernails, as well as on a quilt and a sock, matched an unknown man. The attorney also noted that a rash of murders of attractive young women in the mid-1980s in Fort Worth prompted police to form a task force.

"It won't help Ginger or her mother for police to stop looking for her killer," Udashen told jurors, adding that it "does not appear to be the crime of a 17-year-old kid."

Absalon was arrested in 2010 at his home in Sierra Vista, Ariz., where he was working as a welder and living with his wife and young child. News of his arrest prompted some former participants in the drug-treatment program to tell police about his confession — more than two decades after they'd been told that everything said at the center must remain confidential.

One former participant testified that about two years after Hayden's murder, Absalon said in a group therapy session in the drug treatment program that he fatally stabbed a young woman when he was high on heroin.

Prosecutors said Absalon's 1986 confession in the treatment program supported the evidence and included details that only the killer would know: that he took a knife from the victim's kitchen, hid in the closet until she went to sleep and then stabbed her on the bed.

Absalon told another participant that he killed Hayden because he was angry that she only wanted to be friends after he told her that he wanted a romantic relationship, according to testimony. The Fort Worth Star-Telegram reported that one witness testified during the trial that Absalon said nobody would find out because he covered it up too well, washing his hands and cleaning up in the bathroom. Prosecutors said he used socks as gloves.

Absalon's DNA was found in the bathroom on a towel and bloody sock, and a piece of wood from the knife that killed Hayden also was found on one of the socks, according to testimony.

Fleeced by Fees When You Travel?

2012-09-22T00:44:00.001-07:00

FEE to hold your airline reservation for a few days: $20. Peak air-travel surcharge: $47. Rental car GPS: $13 a day. Beach chaise longue: $20 a day. Resort fee: $25 a day.

Your carefully planned vacation budget? Out the window. We have all learned by now that the travel industry loves a surcharge, and most of us have adapted accordingly. On planes we bring our own headphones, snacks, pillow, blanket. At hotels we know not to drink the pricey bottled water in the room. Fine. For anyone taking a trip in 2012, certain perks might seem like legitimate extras.

But as I peruse some of my latest bills, the à la carte add-ons do not feel like small pleasures; they feel like things that ought to be included in the basic price. More to the point: they feel like sneaky ways to pluck a few more dollars from my pocket.

In the last few months I’ve unwittingly paid for newspapers plopped outside my Starwood hotel-room door (review your bill before you check out) and rental-car fees with vague, perplexing names like “airport concession recovery” and “facility charge.” And I have been taken aback by fees for hotel beach chairs, umbrellas and parking. These were on top of fees I knowingly paid for preferred seating on planes, in-flight Internet, changing tickets and simply printing boarding passes.

The growing list of add-on fees would be comical were they not at our expense. There are now charges for reservations, cancellations, boarding early, departing early, holding bags, checking bags and using the gym, the business center and the safe in your room. And thanks to the latest high-tech minibars, you cannot even touch an Almond Joy to read the calorie count without a charge on your bill (along with a “restocking” fee).

Some fees are mandatory; you must learn to factor them into your vacation budget. Others are optional. And then there are the charges that you’re welcome to opt out of — if you can figure out that you’ve been billed for them in the first place.

A record $1.85 billion in fees and surcharges was collected last year for hotels alone (up from $1.2 billion in 2000), according to Bjorn Hanson, divisional dean of the Tisch Center for Hospitality, Tourism and Sports Management at New York University. He expects that figure to climb to $1.95 billion in 2012.

Airlines, meanwhile, collected more than $3.3 billion in baggage fees and more than $2.3 billion in reservation cancellation and change fees last year, according to the Bureau of Transportation Statistics. Rental car companies and cruise ships also take a share, with extra charges for child seats and navigation systems, as well as certain onboard snacks, activities and excursions.

“There is this increasing feeling of a shakedown,” said Jonathan Turley, who, as a leading expert on constitutional and tort law, frequently travels for work. Mr. Turley said he actually laughed during a recent visit to the Waldorf-Astoria when he was told that it would cost him $15 a day for Wi-Fi on one device, say an iPad, plus $15 for each additional device. “Then you go across town to the Days Inn and they have Wi-Fi for free,” he said. “As someone who teaches law and economics you expect to have some predictable market response to this need, and it’s actually flipped. You get a higher level of these services at lower-end hotels.”

And don’t get him started about plane tickets, which he likens to tickets at Disney World. “You pay this upfront cost, but then you find out that everything in the park is designed to eke out a little bit more of your money,” said Mr. Turley, 51, who thinks the travel industry is actively trying to lower consumer expectations by charging separately for even the most basic services. “I get the feeling that the airline industry is really waiting for my generation to die,” he said. “We’re the cranky, loud ones because we have a higher expectation. Every day, fewer people remember what it used to be like.”

Added fees and surcharges emerged as an industry practice in the late 1990s with resort fees that claimed to be for things like beach towels and housekeeping, then spread to airlines, cruise lines and car rental companies. Hotel fees, for one, are highly profitable and, according to Mr. Hanson, have increased every year except for the periods following the economic downturns in 2001 and 2008 when lodging demand declined. Despite the fees, hotel rates “are still not back to 2007 levels,” Mr. Hanson said, adding that going forward, the industry will most likely focus on raising room prices because ultimately it’s more profitable than fees.

But fees continue to give airlines a boost. Fuel surcharges have risen nearly twice as fast as oil prices since April 2011, according to a study by Carlson Wagonlit Travel, a travel management company. Take Spirit Airlines, which in November plans to raise its fee range for carry-on bags to $35 to $40, up from $30 to $35.

And the menu of fees is only growing. EasyJet, the no-frills European airline that currently doesn’t assign seats, in November will begin charging £3 to £12 (about $4.75 to $19 at $1.58 to the pound) to select a particular seat. This summer US Airways began offering a $19.99 premium entree for economy passengers flying internationally.

Even cruise lines are adding fees, among them Carnival Cruises, which is in the midst of a pilot program that, for $49.95, will allow everyone in your stateroom to board the ship early.

Yet many obligatory charges are easy to miss and hard to understand. In January, Department of Transportation regulations took effect requiring airlines and ticket agents to “include all mandatory taxes and fees in published airfares.” Baggage fees must also be disclosed.

In July, the department fined Travelocity $180,000 for violating the rule on full-fare advertising “by failing to include fuel surcharges and other fees in advertised airfares.” That same month the department fined TripAdvisor $80,000 for violating the rules on full-fare advertising (and for failing to disclose that flights were being operated under code-sharing agreements).

And last month, a class-action lawsuit was filed in federal court, claiming that up until late last year, Spirit Airlines actively misrepresented fares booked by its customers by unbundling certain fees, including something it calls a “passenger usage fee” that can be avoided only by purchasing tickets at Spirit’s airport counters.

Robert C. Josefsberg and Katherine Ezell of the Podhurst Orseck firm in Miami, lawyers for the plaintiffs, said that since filing the suit, hundreds of passengers have contacted them to say that they thought they had bought the lowest fares available yet ended up paying more because the passenger usage fee adds $17.98 to $33.98 to a round-trip flight.

“It’s fairly insulting,” Mr. Josefsberg said. “You want to put your head out the window and scream ‘I’m not going to take it anymore. ”

Alicia Jao, vice president of Travel Media at NerdWallet, a Web site that offers personal-finance and credit-card advice, said that from 2008 to 2011 the fee generated $142 million for Spirit.

A spokeswoman for Spirit said in a statement that the airline believes the suit’s claims “are without merit” and that it “intends to defend the case.”

Hotels are also coming under fire. When visiting the Hilton Garden Inn Sonoma County Airport last year, Rodney Harmon received a copy of USA Today that he claims not to have wanted or read, yet he was charged 75 cents. Last year, the Arnold Law Firm of Sacramento filed a class-action lawsuit against the “Hilton Family of Hotels” on behalf of Mr. Harmon and other Hilton guests who, according to the lawsuit, have “unwittingly purchased newspapers they reasonably believed and understood to be without charge” because the fee was printed inside the paper room-card holder in “extremely small font which is difficult to notice or read.”

DESPITE lawsuits and customer complaints, fees continue to pop up on bills, and they are becoming increasingly harder to withdraw. “The hotels have become very good at responding to guest complaints,” said Mr. Hanson, also the founder and former leader of the global hospitality and leisure industry practice for PricewaterhouseCoopers. “The idea is not to say ‘No,’ but the answer is ‘No.’ ”

He said hotels are training employees on how to handle guests who object to fees by first repeating their objection with something like “Oh, I understand you were surprised by the minibar restocking fee,” and then adhering to a script that involves explaining to the guest why the charge is necessary.

“Guests should not expect to prevail in those negotiations the way they might have a few years ago,” Mr. Hanson said.

Disappointing customers is a risky move, though. People who feel duped are more angry and less likely to return to the offending company, according to research by Vicki Morwitz, a marketing professor at New York University Stern School of Business who has studied consumer responses to what’s known as drip pricing by airlines and rental car agencies. “You can’t win over a consumer by misleading a consumer,” she said. “You’re going to lose by negative word of mouth.”

EVEN the name of a fee matters, which is why consumer psychologists think companies devise intentionally vague names like “service charge” and “resort fee.”

“It makes it a little more palatable,” said Ravi Dhar, director of the Center for Customer Insights at the Yale School of Management and a psychology professor at Yale, explaining that a resort fee suggests you are getting something above and beyond a mere hotel experience. “They must be doing something special,” he said. Of course now that many people have figured out that a resort fee is often little more than a couple of bottles of water and a beach towel, they find it irritating. “If you start breaking it down,” Mr. Dhar said, “people will be more upset.”

The size of the fee is also significant. If it is a small percentage of the base price, psychologically it doesn’t matter, he said. He cited the $2.50 fee he recently incurred on top of a $90 Broadway show ticket. But the bigger the ratio, the bigger the annoyance.

Transparency is essential, too. Did the hotel or airline clearly state the charges upfront or did consumers perceive the charges as deceptive? “If they know what these charges are upfront and they walk into it with their eyes open, they feel a lot better,” said Angela Y. Lee, a marketing professor at the Kellogg School of Management at Northwestern University. “This clarity in communication is really important.”

That includes making sure that travelers understand when they are paying a fee and when they are paying a tax, and why. For instance, Ms. Morwitz said, many consumers think that the so-called “concession recovery fee” seen on some airport rental car bills is, despite the name, a tax. But it’s really the rental company’s way of covering the additional cost of being in an airport, she said, “and they pass part of that cost along to consumers.”

Wrong assumptions by travelers can also magnify frustrations. For example, Mr. Hanson said people often think that pricing is somewhat uniform across a hotel chain: if you stay at a Sheraton in one area of a city, the fees and surcharges should be similar to those at the Sheraton in different part of the same city, right?

Wrong. Charges can vary from hotel to hotel, depending on the guidelines set forth by each general manager.

WHILE no one wants to pay more, some experts contend there is nonetheless an upside to all these fees. Consumers who choose not to pay a fee for a carry-on or to buy a bag of peanuts pay less, rather than having to subsidize those passengers who clog the overhead bins and don’t bring their own snacks. It’s analogous to being at a fancy dinner, Mr. Dhar said, and being told that you have to split the bill equally even though you didn’t drink any of the wine. Shouldn’t you pay less because you consumed less?

As someone who barely finishes a glass of wine while the rest of the table orders another bottle, I understand. But at the moment, passengers who travel light do not receive substantial discounts. When a standard airplane seat is so small and uncomfortable that anyone a little taller or heavier than average has to pay for a seat with more legroom just to get through the flight, that fee seems unfair.

Indeed, for many passengers, being nickeled-and-dimed diminishes the joy of the journey.

“I used to like to fly,” Mr. Turley said. But he explained that doing so nowadays calls to mind certain extraterrestrial swindlers. “Now I feel like I’m in a ‘Star Trek’ episode,” he said, “and I’m being hosted by the Ferengi.”

Fee (Drip), Fee (Drip), Fee (Drip): How to Stay Dry

To avoid being surprised by fees, read the fine print when making reservations, especially when using online travel companies like Hotwire and Travelocity. Renting a car? Find out if your hotel charges for parking, which can add another $25 or so a day. While some fees are optional, they might be for things you want. Here’s how to get them for less.

FEE: OVERWEIGHT OR CHECKED BAGS

WORKAROUND: Wear your necessities. Seriously: Scottevest’s Transformer Jacket ($160) has 20 pockets designed to accommodate your water bottle, iPad, camera. There are even pockets through which you can control your iPhone. Or buy what you need (sunscreen, umbrella, sweatshirt) at your destination.

FEE: CHANGING AN AIRLINE TICKET

WORKAROUND: New Department of Transportation regulations enable passengers to cancel a reservation without penalty for up to 24 hours after it is made as long as the reservation is made at least a week before the flight’s departure date. And remember: sometimes it’s cheaper to buy a new ticket than to change one.

FEE: RENTAL CAR SEAT FOR CHILDREN AND NAVIGATION SYSTEM

WORKAROUND: Bring your own car seat, which airlines often gate-check free. Use an iPhone or an app for navigation.

FEE: BEACH CHAIRS AND UMBRELLAS

WORKAROUND: Buy them at a local drugstore, or pack an old sheet and use it as a beach blanket. Make another guest’s day by giving away the gear when you leave.

FEE: AIRPORT RENTAL CAR “CONCESSION RECOVERY FEE”

WORKAROUND: If the fee is more than a shuttle or taxi ride to another location, rent the car at a nonairport location.

FEE: HOTEL INTERNET ACCESS

WORKAROUND: Hotels that charge for Wi-Fi in the rooms sometimes provide it free in public spaces. Take your work to the lobby or pool, even a nearby coffee shop.

Facebook Can ID Faces, but Using Them Grows Tricky

2012-09-22T00:36:00.000-07:00

Facebook on Friday confronted a new obstacle over what to do with one of its most vital assets — pictures.

The company promised European regulators that it would forgo using facial recognition software and delete the data used to identify Facebook users by their pictures.

The decision could have wide repercussions on how facial recognition technology — a particularly sensitive technological advance — is used globally as surveillance cameras are increasingly installed in public spaces.

“This is a big deal,” said Chris Hoofnagle, a law professor at the University of California, Berkeley who specializes in online privacy.

“The development of these tools in the private sector directly affects civil liberties,” he explained. “The ultimate application is going to be — can we apply these patterns in video surveillance to automatically identify people for security purposes and maybe for marketing purposes as well?”

The agreement comes as Facebook is under pressure from Wall Street to profit from its vast trove of data, including pictures, and also from regulators worldwide over the use of personal information.

The decision in Europe applies to the “tag suggestion,” a Facebook feature that deploys a sophisticated facial recognition tool to automatically match pictures with names. When a Facebook user uploads a photo of friends, the “tag suggestion” feature can automatically pull up the names of the individuals in the image.

The facial recognition software was developed by an Israeli company, Face.com, which Facebook acquired for an undisclosed price in June.

The company quietly and temporarily pulled the plug on “tag suggestion” for all Facebook users several months ago. The company said on Friday it was to “make improvements to the tool’s efficiency” and did not say how soon it would be restored. However, the company promised European regulators on Friday that it would reinstate the feature on the Continent only after getting their approval.

Facebook declined to say under what circumstances the “tag suggestions” would be back online in the United States or elsewhere.

Facebook’s promise to the European regulators is part of an investigation into whether the company’s data collection practices comply with European privacy rules. It was made with regulators in Ireland, where the company has its European headquarters.

“We will continue to work together to ensure we remain compliant with European data protection law,” Facebook said in a statement.

Europe is an important market for the company, as it struggles to prove its worth on Wall Street. About one in four Facebook users logs in from Europe. According to the company’s earnings figures, Europe accounts for just under a third of its advertising revenue.

Pictures have always been vital to Facebook. Pictures are what drew users to Facebook in its earliest days, and pictures are what continue to keep people coming back. Facebook users upload 300 million images a day. The company’s acquisition of Instagram, the photo-sharing site, eliminated its biggest rival in this area.

Photo tagging is important for Facebook in the sense that it allows the social network to better analyze with whom its users interact in the real world.

In addition to scrutiny from European regulators, Facebook has also come under fire from consumer protection groups and lawmakers in the United States over its use of facial recognition technology. At a hearing on Capitol Hill last July, Senator Al Franken, Democrat of Minnesota, described Facebook as the “world’s largest privately held database of face prints — without the explicit consent of its users.”

On Friday, Mr. Franken said in an e-mail statement that he hoped Facebook would offer a way for American users to opt in to its photographic database.

“I believe that we have a fundamental right to privacy, and that means people should have the ability to choose whether or not they’ll be enrolled in a commercial facial recognition database,” he said. “I encourage Facebook to provide the same privacy protections to its American users as it does its foreign ones.”

The Electronic Privacy Information Center, an advocacy group in Washington, filed a complaint with the Federal Trade Commission over Facebook’s use of automatic tagging. The complaint is pending. The commission has a consent order with Facebook that subjects the company to audits over its privacy policies for the next 20 years.

Personal data is Facebook’s crown jewel, but how to use it artfully and profitably is arguably its biggest challenge. Facebook has access to a tremendous amount of information about its one billion users, including the photos they upload every day. Marketers have pushed for greater access to that data, so as to tailor the right message to the right customer. Consumers and lawmakers have resisted, to different degrees in different countries around the world.

“They are pushing the edges of what privacy rules may allow, just as an aggressive driver might with parking rules,” said Brian Wieser, an analyst with the Pivotal Research Group, a research firm in New York. “You don’t know you’ve broken a law until someone says you’ve broken a law.”

Several independent application developers are experimenting with how to use facial recognition technology in the real world, and have sought to use pictures on Facebook to build products of their own.

For example, one company in Atlanta is developing an application to allow Facebook users to be identified by cameras installed in stores and restaurants. The company, Redpepper, said in a blog post that users would have to authorize the application to pull their most recent tagged photographs. The company said its “custom-developed cameras then simply use this existing data to identify you in the real world,” including by offering special discounts and deals.

Fergie writes letter to United fans

2012-09-21T14:05:00.000-07:00

Manchester United manager Sir Alex Ferguson is to issue a personal plea to fans travelling to Anfield for this weekend's Premier League game with Liverpool to "stand with our great neighbours" as they pay tribute to the victims of the Hillsborough disaster.

Liverpool are playing their first match at Anfield since the Hillsborough Independent Panel cleared the club's fans of any role in the deaths of 96 fans during the 1989 FA Cup semi-final.

And while the two most successful teams in British football have a longstanding and often bitter rivalry, Ferguson has called on United fans to respect the tributes set to take place prior to kick-off.

In a move that underlines the significance of the fixture, away fans arriving at the Anfield turnstiles will be presented with a letter written by the Manchester United manager reminding fans that the clubs' rivalry "should never be based on personal hatred.

"Our rivalry with Liverpool is based on a determination to come out on top - a wish to see us crowned the best against a team that held that honour for so long," Ferguson wrote.

The United manager then expressed his sympathy for the 96 victims "who went to watch their team try and reach the FA Cup final and never came back.

"What happened to them should wake the conscience of everyone connected with the game.

"Our great club stands with our great neighbours Liverpool today to remember that loss and pay tribute to their campaign for justice. I know I can count on you to stand with us in the best traditions of the best fans in the game."

Improving Ferrari encourages Alonso

2012-09-21T13:58:00.001-07:00

Fernando Alonso was encouraged by Ferrari's progress on a high downforce track following practice for the Singapore Grand Prix.

Having focused on Ferrari's lack of performance at previous grands prix, Alonso described Friday practice as a "positive" day for the team having trialled some new parts. With Singapore requiring a maximum downforce set-up, Alonso admitted Ferrari wasn't as competitive as it had been at Monza but thinks there is more to come from certain upgrades.

"We tried various new components on the car: some seem to be positive, others less so, but maybe in the case of the latter, we need to spend a bit more time for them to be developed as well as possible," Alonso said. "Overall, I would say today was positive, even if the first impression is that we are not as competitive as we were in Monza, two weeks ago. We still lack a bit of performance on tracks like this one, where you need maximum aerodynamic downforce."

Despite having clear feelings about his own car, Alonso said the levels of tyre degradation made it tough to compare pace with his rivals.

"From what we saw today, there's a significant difference between the two types of tyre, but we will have to wait until tomorrow to get a clear picture of the situation on this front. Maybe today's difference has been somewhat exaggerated by the evolution of the track surface. Testing the tyres over a long distance is very complicated on a track like this, because of the traffic, therefore it's difficult to make a direct comparison to our main competitors. I am reasonably sure that, on Sunday, we will see rather significant degradation and it will be important to manage that as well as possible."