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Friday, March 12, 2010

Computer algorithm, MRI used to tap memory

A computer algorithm, functional Magnetic Resonance Imaging (fMRI), and neuroscientists working together have been able to identify what people are remembering by measuring blood flow levels, according to new research out of the University College London.

First, a group of 10 volunteers (average age 21) was shown three very short (as in 7 seconds) films, each of a woman on a city street doing a simple task, such as mailing a letter. Then, each of the volunteers was placed inside an fMRI scanner and asked to recall each film, first in a specific order, then at random.

One of the three short films showed this woman mailing a letter.
(Credit: Wellcome Trust Centre for Neuroimaging/UCL)
 
Using the scanner to measure changes in the brain's blood flow and a computer algorithm, researchers were able to identify which short film each person was remembering at a level the study's lead author describes in a news release to be "significantly above what would be expected by chance."

"This suggests that our memories are recorded in a regular pattern," says Martin Chadwick, who conducted the research at the University College London's Wellcome Trust Centre for Neuroimaging. The article appears in the journal Current Biology.

The researchers homed in on the medial temporal lobe, a region of the brain thought to be most involved in episodic memory. The computer algorithm performed best when analyzing the hippocampus, which the team has already studied.

Across all participants, the rear right, front left, and front right areas of the hippocampus appeared to be consistently involved. While it remains unclear exactly what role the front two regions play, the rear right was found in a previous study--identifying where a person was standing in a virtual reality simulation--to be where spatial information is recorded.

"Now that we are developing a clearer picture of how our memories are stored, we hope to examine how they are affected by time, the aging process and by brain injury," says Eleanor Maguire, who helmed the study as an extension of last year's work on spatial memory.

It's arguable whether the algorithm's accuracy is good enough to celebrate, since it identified the film being thought about correctly less than half of the time (40 to 45 percent, to be precise). But that is better than 33 percent, which is the rate at which a blind guess between three films would be accurate.

Probably the most exciting discovery is that the memory traces associated with each film were consistent throughout not only the study, but from one volunteer to the next, suggesting that memories may in fact have some sort of fixed, identifiable pattern.
  
Source: Elizabeth Armstrong Moore - a freelance journalist based in Portland, Ore. She has contributed to Wired magazine, The Christian Science Monitor, and public radio. Her semi-obscure hobbies include unicycling, slacklining, hula-hooping, scuba diving, billiards, Sudoku, Magic the Gathering, and classical piano. She is a member of the CNET Blog Network and is not an employee of CNET.

Cities Go Gaga for Google Fiber With Glowsticks! Flashmobs! Twistee Treats! An Icy Lake Jump!


lake jump

Google's announcement that it was contemplating a move into the ISP business with an ultra-high speed fiber network has sparked a municipal cage match.

No one knows exactly how much Google plans to invest, but its reputation as cash giant alone has cities from Anchorage, Alaska, to Sarasota, Florida battling to become the search giant's new test market. Faster than you could say Google Fiber (though not faster than the company's proposed gigabit speeds) metros whipped up Facebook pages and took to Twitter to raise awareness and offer instruction on how to nominate their hometown. FastCompany.com combed through this rapidly growing list of cities and pulled together a few of the more creative efforts--some snarky, some tongue-in-cheek, all earnestly hoping that when the application process ends on March 26 and the dust clears in this social media-fueled Thunderdome, they'll claim Google Fiber's bountiful business. Many towns enter. One burgh leaves.

Columbia, Missouri

Columbia has all the advantages of a big city coupled with the access problems of small-town America: low-performance, high-cost broadband, and next to no fiber infrastructure, says Amberly Engert, a social media manager. So she created a Facebook page, and Ian Eyberg, a software developer started the Como Fiber Group to tout the potentially massive opportunity Google Fiber posed. Engert says that while no one in Columbia is jumping in a lake or renaming the town (read on), residents have submitted video kudos to the growing art scene and the "groovy culture" on the group's Web site. The effort really coalesced on Saturday when some 15,000 signs printed with Google's logo were distributed to the sell-out crowd at the nationally televised Missouri-Kansas men's basketball game.

Grand Rapids, Michigan

The Google Fiber for Grand Rapids steering committee points out that the typical Comcast & AT&T U-verse connection is about 6mbps--a far cry from Google's gigs. So they're planning a "Flash Mob" citywide rally on March 19 that is expected to include a "human fiber" chain of joined hands (Hands Across Grand Rapids?) to create what organizers hope will be a huge show of support. As it is, Grand Rapids currently has the distinction of collecting the most fans on its Facebook fan page (over 22,000 at last count) since it started on February 10. And, hey! Here's a local "television personality" making her case.

Greenville, South Carolina

Greenville's feeling lucky. The campaign to woo Google started by a group of twelve well-connected individuals and has spread like wildfire through the local tech community. Trey Pennington, an organizer, says this is not surprising given the community's mindset "dominated by commitment to collaborate." The group quickly produced a video playing off of Google's "Feeling Lucky" search theme and is planning a unique "community expression project"--Google on Main. Set to unfold the night of March 20th, citizens armed with glowsticks will gather in downtown Greenville--on Main Street -- to rave show their support for the coming of Google Fiber. Rumor has it the event will be filmed by helicopter.

Peoria, Illinois

The denizens of Peoria, Illinois, want Google to know that it hasn't yet taken a turn in the "geographic center of the universe." Not yet anyway. A special Web site, Google Plays in Peoria, features a video rife with slides of bucolic cityscapes and stirring music from Vangelis. Peoria announces that on March 26, Google "will have a once in a lifetime opportunity to play in Peoria." But that's not all. Photographs of the seven wonders of Peoria ensue, and once again the city pitches Google, this time for a chance to join the ranks of a larger-than-life bikini clad sculpture, a Twistee Treat, and others as the city's "eighth wonder." If all else fails, Peoria says to Google, "Do it for the children." Media coverage includes a story of ways Peoria schools could benefit from faster Internet access.

Topeka, Kansas

Jared Starkey, the president of LAMP Development, LLC, says the campaign started as Facebook group and spun out into a new group called "Think Big Topeka." Now over 14,000 volunteer members strong (with no dues, and therefore, no bank account), they are relying on donated advertising and promotional support to spread the word further. Most famously, Topeka's mayor issued a proclamation (on Google Docs, natch) that for the entire month of March, Topeka would be renamed Google, Kansas. Starkey would like to remind Google that the city served as the testbed for Pokemon in the U.S. back in 1998, so they are uniquely qualified to be Google's control group. And he says, theirs is the only city to make international headlines with their bid for Fiber.

Sarasota, Florida

Taking note of the gauntlets thrown by Topeka and Duluth, Sarasota renamed its City Island, Google Island, and produced a (rather hilarious) video juxtaposing the positives of the city nestled in the Sunshine State with the less-than-picturesque landscape of the Heartland, and the shoulder-high snow drifts and freezing temperature of Minnesota. 'Nuff said.

Duluth, Minnesota

But wait! Patrick Garmoe, public information officer of the Google Twin Ports Initiative laughs sheepishly as he explains Googlefest, an event that is one part rally, one part carnival and all parts enthusiasm for the promise of Google Fiber. In the midst of bands, choirs and other entertainment, "We'll be shooting a movie with real actors and a Hollywood director and live-streaming the event to impress Google," Garmoe says. The new initiative comes on the heels of Deluth mayor Don Ness's own stunts. In a spoof video proclamation that in honor of Google, all first born males would be henceforth named GoogleFiber and first born females would of course be Googlette. Also, he literally sunk to a new low in the brutal battle for business. He jumped into the freezing waters of Lake Superior. Hizzoner, perhaps you'll be deterred from further lunacy by these
extremely gnarly Google Image results for "frostbite."

BY Lydia DishmanToday

Topics:

Innovation, Video, Technology, Google Fiber, google, Topeka, Duluth, Sarasota, Greenville, Peoria, Grand Rapids, columbia, MO, Peoria, Google Inc., Topeka, Kansas Jayhawks (Basketball), Grand Rapids

Thursday, March 11, 2010

How could lawsuit and criticism-distressed Google still boast of "doing no evil"?

Google, which has always striven towards a goal of "doing no evil" has recently been involved in successive lawsuits. Three of Google's executives were sentenced to 6 months in jail in Italy on February 24 for the criminal invasion of privacy.

Meanwhile, the European Commission has decided to launch anti-monopoly investigations into Google’s search engine and advertising search services. The reporter learned from Microsoft's official blog, that following Google's rapid expansion, an increasing number of small and large companies have begun filing lawsuits against Google. The lawsuits are related to every segment of the market that Google is involved in.

Some lawsuits reveal the tough stance taken by Google in relevant markets and some lawsuits reflect secrets behind Google's business operations. Other lawsuits are related to antitrust issues. What Google products have suffered from lawsuits? Why did these products merit lawsuits?


How could lawsuit and criticism-distressed Google still boast of "doing no evil"?
How could lawsuit and criticism-distressed Google still boast of "doing no evil"

"Offensive" product No. 1: Photos and videos 

Groups offended: Parents and Internet regulators of various countries
 
Three Google executives in Italy were prosecuted after Google released a video on youtube.com, which is owned by Google, in which a disabled child was bullied – an autistic child was hit and insulted by 4 classmates on their school's campus. Google claimed in court that it just provided an Internet platform and assumes no obligation to check the content. Google has used similar excuses after being required to check pornography-related content in China.

It is worth noting that when Google claims its innocence, it is repeating the same tactic, hoping to turn a commercial criminal case into a political event. It has even urged U.S. Secretary of State Hillary Clinton to impose pressure on Italy. This tends to make people think of the "Google's possible exit from China" event that has yet to be settled.

Li Siyi, deputy director of the Institute of Journalism and Media under the Chinese Academy of Social Sciences (CASS), said that every country around the world has an information censorship system, particularly the censorship of content relating to terrorism and child pornography. Google is skilled at using the media to protect itself, but all the countries will not compromise when it come to the cases involved with such content. Even the U.S., where Google is headquartered, does not permit the free transmission of certain information in light of security. Such information includes information on national security, territory integrity and religious harmony as well as ill information that may hurt children's physical and mental health.

Analysts believe that this is the first case that a video sharing service has been convicted by a court because of a video posted by users. The conviction by the Italian court has a far-reaching impact on the development of the Internet industry, because it not only will likely change the business model of mainstream video sharing websites, but may even also change the industry’s understanding of the Internet.

"Offensive" product No. 2: news, videos and maps 

Groups offended: the media, websites of various kinds and antitrust authorities
 
Google's products, such as news, videos and maps are all information service products, and the information is gleaned from media and websites around the world. These search service products offered by Google are greatly welcomed by users. However, Google's money-making strategy of "obtaining advertisement resources by using information free of charge" has led to complaints and alertness among information suppliers.


Newspapers and magazines in Germany have blamed Google, saying that Google stole their readers by using unfair competitive methods. German map websites claimed that Google has destroyed their rural markets. The American Columbia Broadcasting System (CBS) has removed its videos from Google's YouTube website. The American Academy of Motion Picture Arts and Sciences has also required Google to take some videos of the Academy Award ceremony off its YouTube website… Obviously, we can see that these information suppliers are no longer willing to allow Google a free ride.

The increasing influence of Google also offended some antitrust authorities. These authorities worry that Google is abusing its dominant position on the Internet. What Google is doing is that it always uses the headline news or the brief descriptions of the news published on other news websites unless these websites clearly state the news cannot be re-published. In addition, an Internet engineer disclosed that Google might use filtering software to eliminate some websites from relevant search results, and that would make the websites suffer commercial losses.

"Offensive" product No. 3: Gmail's Buzz 

Groups offended: common users
 
On February 11, Iran Telecoms announced that Iran would permanently suspend Google's Gmail service and launch a national e-mail service. On the same day, Google launched its Buzz service. As soon as Buzz, a service which is quite similar to the micro-blogging website Twitter, was launched, it quickly began to receive criticism. The reasons are 3 automatic settings. First, Google automatically registers its Gmail users for the Buzz service. In other words, Gmail users already have this service before they apply for it or choose to use it. Second, Buzz automatically creates a Buzz friend list for a user using names in the user's Gmail contacts list. Third, Buzz automatically sends the latest contents on a user's Buzz micro-blog to the e-mail boxes of the user's Gmail friends. All of these settings make it possible that users' private information could possibly be leaked. On February 16, the U.S. Electronic Privacy Information Centre announced that the Buzz service had violated Federal Consumer Protection Laws.

After using Buzz, a woman angrily wrote that she used Gmail to communicate mostly with her mother and boyfriend, but the person who was next to them was her ex-husband. Google's Buzz automatically set that they (including her ex-husband) could see some of her private information, but only she and her boyfriend had the right to read the information.

"It does not matter whether users are active on Buzz. Many claim that Google's real purpose is to learn what you are chatting about or watching, to observe the messages you write so that they will have all of your things at their fingertips. After doing so, Google can do a lot, including pushing advertising and personalized searches," said a technologist from a dot-com company.

"Google keeps and analyzes all users' search records, IP addresses, and preferences. Maybe some rabid technology admirers think that Google stores the information just to provide more personalized and considerate service, but I care more about the security of personal information," said Zhang Lei, a college student.

"Offensive" product No. 4: digital library 

The offended: writers and publishers
 
Google Digital Library has enraged a large number of writers and publishers in many countries.

Google unilaterally quit negotiations with the Chinese Written Works Copyright Society January 12, causing a dilemma for both sides. It was also in big trouble in the U.S., because 15 Indian writers and publishers, as well as 2 copyright protection organizations, have filed lawsuits collectively in a U.S. court against Google's settlement agreement on digital books. Before the Indians brought in their objections, a large number of writers, publishers and other organizations from many countries across the world had already submitted their documents to the United States District Court for the Southern District of New York against the revised settlement agreement, and the court decided to indefinitely postpone a decision on whether to allow Google to ultimately carry out the digital library project.


Furthermore, Google Digital Library Project has raised wide concerns over cultural security in many countries that would prefer to build their own digital libraries. For example, after the launch of European Digital Library, Japan and France followed to build national digital library. Germany also officially launched the German Digital Library Project, and the digital library, involving more than 30,000 libraries and museums, is expected to be put into use this year.

Google's settlement agreement, which allows the company to scan and make available millions of books online and induce copyright owners to accept the agreement via a "waiver of copyright" clause, is a serious violation of international copyright protection laws. "It is absurd, unconscionable, and illegal that anyone can copy what they want from copyrighted works without permission, and then ask the copyright owner to give up the right, but that is exactly what the autocratic Google has been doing so far," writers said.






Why is the EU failing to comply with its international law obligations over Israel?

If you lived on a street where a neighbour frequently and flagrantly broke the law, you would want something done about it, especially if that neighbour took part of your garden, replaced the fence with a 30ft wall, cut down your trees and redirected your water supply.


Suppose the authorities to whom you complained merely denounced the illegalities and took no action? You might think that this situation is inconceivable. But that is precisely what has been happening to the Palestinians for the best part of 60 years.

On July 9, 2004, the International Court of Justice in The Hague (ICJ) produced a strong advisory opinion on the legal consequences of the construction of a wall in the occupied territories.

Fourteen of 15 judges agreed the core findings: that the construction was contrary to international law, both human rights and humanitarian; that it should be dismantled with reparations being made for all damage caused. This was adopted by a UN General Assembly resolution on July 20, 2004.

This resolution, like so many before it concerning violations perpetrated by Israel, was fundamentally ignored. The ICJ had not only specified the obligations owed by Israel under international law but also spelt out very clearly the obligations incumbent on third-party states to ensure that the core values or peremptory norms — such as the right to self-determination — are upheld by those states that break them. This is a matter of common sense and ordinary reason; for, were it to be otherwise, the rule of law and the authority of international justice would be completely undermined.

It was in this context that the Russell Tribunal was reconvened in Barcelona on March 1 to 3 to examine the legal responsibility for violations in the Palestinian Territories. Four more international sessions are planned.

The tribunal has an illustrious history with its origins in the Bertrand Russell Peace Foundation launched in 1963. The first tribunal concerned the war in Vietnam, and led to citizens’ commissions of inquiry held in several American cities. A second tribunal was established to investigate human rights violations in South America in 1974-75.

These are tribunals of conscience, created in response to the demands of citizens in many countries who feel that perpetrators must be held to account and that states cannot be allowed to act with impunity; which is often the result of inaction and complicity by others.

The first session examined the responsibility of the European Union and its member states. The hearings dealt with six topics: self-determination; the annexation of East Jerusalem; settlements and the plundering of natural resources; the EU Israel Association agreement; the Gaza blockade/Operation Cast Lead; and the wall.

Proceedings were opened by Stéphane Hessel, a co-author of the Universal Declaration of Human Rights, followed by 27 witnesses with a range of expertise and experience (lawyers, academics, aid workers, human rights advisers, members of the European and British parliaments and a military adviser).

Israel’s violations are well known and well documented through to the Goldstone report on the invasion of Gaza in early 2009 and were summarised in the tribunal’s report under ten separate headings. The Palestinian Territories determined that a form of apartheid is being practised. The EU and its member states were found to have transgressed the EU Treaty itself as well as international obligations under the UN Charter and the 1966 Covenant on Civil and Political Rights.

The real question, however, is not just inaction but positive action undertaken by Europe that supports the illegality. This can be exemplified by the export of weapons and components; the trade in produce from settlements in the occupied territories and above all the multibillion EU Israel Association agreement that confers benefits on Israel. The EU is the third most important trading partner for Israel and the EU Parliament has passed a resolution requiring the suspension of the association agreement, but like so much else this has not been implemented.


It was obvious to the tribunal, therefore, that the EU may not be prepared to comply with international law. In these circumstances it is necessary for concerned citizens to examine ways in which accountability may be effected. There are a number of legal avenues that can be pursued against individual European governments and their agencies, and individual private companies that maintain the regime of illegality. Additionally Israeli perpetrators of war crimes are susceptible to universal jurisdiction and are liable to be arrested should they
travel to Europe.

So far the exercise of this power has not been overwhelmingly embraced by European states; instead it has been left to the endeavours of committed individuals on behalf of the victims and their families in the Palestinian Territories.



 BY From   March 11, 201, 
The author, a QC, was one of the eight member international jury panel of the RTP. See their full report at www.russelltribunalonpalestine.com

Tuesday, March 9, 2010

Mr. Distress is ready to buy

NEW YORK (Fortune) -- Whether it's steel, textiles, or auto manufacturing, Wilbur Ross has built a lucrative career finding gold in industries left for dead.

He did it first at Rothschild, and since 2000 at his own investment fund, WL Ross & Co. To cite just one example, Ross bought bankrupt steelmaker LTV for $325 million in 2002, and sold it for $4.5 billion two years later.

As the economy continues to struggle, Fortune's Katie Benner sat down with the master of distressed investing to hear where prospects can be found in this turbulent time.

Where do you think the biggest opportunities are now?

There are deep value opportunities in insurance stocks, which were beaten down because of their exposure to the subprime crisis, annuities, and commercial real estate. I won't name names, but some well-managed life insurance and fire and casualty companies will come through this stronger. They used to trade at one or two times book value but now trade at three-quarters book.

Regional and subregional banks still have a lot of issues to resolve, and they have enough commercial real estate assets on their books to make most of them insolvent on a mark-to-market basis. Of course, they won't all mark their assets to market and their loans won't all go bad. But another several hundred banks will fail before we get through this cycle. We just bought Bank United in Florida for $925 million, and the FDIC is providing about $4.9 billion in assistance.

I still like TIPS (Treasury inflation-protected securities), and I think a big opportunity is coming in the municipal bond market. Even if it doesn't default, some state or local government will come close enough to scare everyone to death. That will be a wonderful buying opportunity.

And as one of the public-private investment managers for the Treasury, we have been buying lots of residential mortgage-backed securities. The price often more than discounts the problems that are ahead. After another year or so of property value declines I think that market will stabilize along with the securitization market. Securitization is a fundamentally sound idea, even if it was poorly executed.

How can we fix the securitization market?

No one had skin in the game. That's where things went wrong. My proposal then is that everyone has skin in the game. Ratings agencies' fees and compensation should be paid over time and depend on the enduring quality of the rating. Employees at banks and brokerages should have their compensation tied to the long-term success of their products. If a trader is paid a big bonus for a portfolio that turns out to be a disaster a year later, did he really earn the money he was paid?

What about commercial real estate? There are reports that you want to buy the near-bankrupt apartment complex Peter Cooper Village/Stuyvesant Town in New York City.

At some point commercial real estate will become very interesting, but not yet. The declines in value are not over. Stuyvesant Town is an early indicator of what's to come -- it's a poster child for the mistakes made during the boom -- and we are interested in it.

In the original deal for the complex, the financing was predicated on the idea that the apartments would no longer fall under rent control and that they would start generating a lot more cash. That never happened.

There were also 11 tiers of mezzanine debt on the complex, which probably have no value. The debt was distributed into six or so commercial mortgage-backed securities that were sliced up and sold to investors.
So there's a huge pile of paper out there that is very affected by this deal. At some point these securities will fall in value enough to be attractive. But at the moment the prices don't reflect the problem environment that we see.

What is the investment opportunity at Stuyvesant Town if you can't significantly raise rents?

Eleven thousand middle-class families live in Stuyvesant Town -- more than in a small town. New York City needs affordable, middle-class housing. If the debt put on the complex is the right size for the amount of cash the complex generates it could be a very good investment.

How do you see 2010?

This is going to be a volatile year. It won't be a year of stock markets, but of the individual stock. Some will do very well, despite the environment.

What are the big challenges for investors now?

Government intervention is one. Washington, D.C. is the new Wall Street. No significant financial transaction of any consequence occurs without it. About 90% of all mortgages are granted through Washington.

Health-care reform would mean another 16% of the economy under more government supervision.
But there is no evidence that more regulation makes things better. The most highly regulated industry in America is commercial banking, and that didn't save those institutions from making terrible decisions.

The relationship between information and decision-making is a challenge. Everyone gets the same information at basically the same time, so the value of information has gone to zero. And there has not been proportionate growth in the investment community's ability to sort through it all. People spend so much time absorbing that they don't have time to understand what it means. This creates volatility.

For example, people suddenly decide Greece is the problem, and whack, the market is down 10%. If weeks from now people decide California is the problem, markets will move again. Everyone has known for over a year that both places are troubled. Why do we care now? How do we know that the problems of Greece or rescuing that country will make a difference in the economic landscape one way or the other?

That's why the value of expertise and the ability to interpret information will someday go to infinity. To top of page

By Katie Benner, writer

43% of Americans say they have less than $10k for retirement

By Chavon Sutton, staff reporter

NEW YORK (CNNMoney.com) -- The percentage of American workers with virtually no retirement savings grew for the third straight year, according to a survey released Tuesday.

The percentage of workers who said they have less than $10,000 in savings grew to 43% in 2010 from 39% in 2009, according to the Employee Benefit Research Institute's annual Retirement Confidence Survey. That excludes the value of primary homes and defined-benefit pension plans.

Workers who said they had less than $1,000 jumped to 27% from 20% in 2009.


Confidence in ability to save enough for a comfortable retirement hovered at 16% of respondents, the second lowest point in the 20-year history of the survey.

"Americans' attitudes toward retirement have clearly tracked the economy the last couple of years, and that seems to be the case in 2010," said Jack VanDerhei, EBRI's research director and co-author of the survey, in a statement.

A drop in the bucket

The percentage of workers who said they have saved for retirement fell to 69% from 75% in 2009.
While VanDerhei attributed the decline in current savings rates to job losses, mortgage problems and the suspension of corporate 401(k) matches in 2009, he said the economy isn't entirely to blame.

"In previous years, there were a whole lot of people who had nothing to begin with," said VanDerhei.
The gap between what Americans have saved and what they'd need for retirement is forcing workers to prolong their working years.

According to the survey, 24% of workers said they have postponed their planned retirement age in the past year, up from 14% in 2008.

But even as fears over health care costs and job prospects mount, the survey found that only 46% of workers have tried to calculate what they need for a comfortable standard of living in their golden years.

"People just don't want to think about this," said VanDerhei. "Everybody thinks they're too young to think about it, until suddenly they're too old to do anything about it."


In general, financial planners say that retirement savings, including Social Security benefits and pension, should be large enough to provide about 80% of pre-retirement income.

To reach that target, "most Americans need to be saving within the healthy range of 6% - 10% (of their salary)," said Beth McHugh, vice president of workplace investing for Fidelity Investments.

But the survey found that 54% of the workers with some form of savings said that they have less than $25,000 stowed away.

Delaying retirement, though not ideal, is a good sign that people are finally facing reality.


"People have figured out that they don't have enough money," VanDerhei said. "Still, I'd rather they bite the bullet today, rather than take the chance that they'd have a job when they are 65."

The EBRI surveyed 1,153 U.S. workers and retirees, age 25 and older, in January. To top of page

Banks raise rates

Bankers say rate hikes based on recent adjustment
starbiz@thestar.com.my

KUALA LUMPUR: Banks have begun raising their base lending rates (BLRs) following Bank Negara’s move to lift the overnight policy rate (OPR) by 25 basis points last week.

Five of the largest banks in the country raised their BLR to 5.8%.

Malayan Banking Bhd (Maybank) and CIMB Bank Bhd were the first two banks to announce their interest rate hike from 5.55%.

The two banks raised their BLR and base financing rates to 5.8% effective today following Bank Negara’s OPR revision last Thursday.

In a statement, Maybank president and CEO Datuk Seri Abdul Wahid Omar said the interest rate revision was based on the recent adjustment in the OPR.

“We expect to see better growth from our core business segments, leveraging on the improving economic environment and as more customers take advantage of the diversity of our product and service offerings,” he added.

Public Bank will also raise its BLR to 5.8% today, according to Bank Negara’s banking info website.

“We are supportive of Bank Negara’s move to normalise interest rates as the economy regains stability and are immediately transmitting it to both savers and borrowers,’’ said CIMB group chief executive Datuk Seri Nazir Razak in a statement.

Nazir said it was the right time to raise interest rates as the economic environment had normalised and growth momentum was strong.

“We saw the fourth quarter gross domestic product (GDP) numbers and we are looking at a GDP growth north of 4% this year potentially,’’ he told reporters at the launch of CIMB Twin Yield Income Investment structured product yesterday.

“Those conditions suggest that it is time to normalise interest rates. As best as I can tell, it is a good decision.’’
CIMB also raised its savings and fixed deposit rates by up to 25 basis points.

The RHB banking group also raised its BLR for RHB Bank Bhd to 5.8% today.

In a statement, group managing director Datuk Tajuddin Atan said RHB would be balancing the increased borrowing rates by offering more competitive rates for depositors.

Hong Leong Bank Bhd will increase its BLR to 5.8% effective March 10.

Bank Negara raised the OPR as the economy has improved significantly and returned to its path to recovery.
“Given this improved economic outlook, the Monetary Policy Committee (MPC) decided to adjust the OPR towards normalising monetary conditions and preventing the risk of financial imbalances that could undermine the economic recovery process,’’ said Bank Negara in its monetary policy statement last week.

“At the new level of the OPR, the stance of monetary policy continues to remain accommodative and supportive of economic growth.”

A rise in interest rates is usually greeted with trepidation as economists typically worry about its impact on growth and demand.

This time around, that apprehension is not yet visible.

“At the moment the impact will not be great as it is coming off historic lows,’’ said AmResearch economist Manokaran Mottain.

The Association of Banks Malaysia said the increase in OPR would not impede access to financing nor affect the industry’s lending activities.

The banking industry recorded a loans growth of 8.6% in January and 7.8% in December.

Analysts said the impact the BLR increase would have on bank’s profits would depend on whether deposit rates would be raised by the same quantum.

They said bank margins were squeezed when interest rates were cut but they expected net interest margins to widen as interest rates rose.

For latest Bursa Malaysia indices, charts and other information click here

For Bank Negara statements click here

U.S. Sitting on Mother Lode of Rare Tech-Crucial Minerals

By Jeremy Hsu, TechNewsDaily Contributor. posted: 08 March 2010 05:25 pm ET

China supplies most of the rare earth minerals found in technologies such as hybrid cars, wind turbines, computer hard drives and cell phones, but the U.S. has its own largely untapped reserves that could safeguard future tech innovation.

Those reserves include deposits of both "light" and "heavy" rare earths — families of minerals that help make everything from TV displays to magnets in hybrid electric motors. A company called U.S. Rare Earths holds the only known U.S. deposit of heavy rare earths with a concentration worth mining, according to a recent report by the U.S. Geological Survey (USGS).

Light rare earths include the minerals ranging from lanthanum to gadolinium on the periodic table of elements, while heavy rare earths range from terbium to lutetium.


Averting disaster
 
If developed, such deposits could help the U.S. avoid a possibly crippling rare earth shortage in the next decade. China has warned that its own industrial demands could compel it to stop exporting rare earths within the next five or 10 years.

"There is already a shortage, because there are companies that already can't get enough material," said Jim Hedrick, a former USGS rare earth specialist who recently retired. "No one's trying to expand their use of rare earths because they know there's not more available."

U.S. Rare Earths practically stumbled upon its first rare earth deposit at Lehmi Pass, on the border between Idaho and Montana, about 15 years ago. The company founders coveted the area's reserves of thorium — an alternative nuclear fuel — and took little interest in the rare earths that were only used, at the time, in lighter flints and tracer bullets for the military.

Their view changed over the years as rare earths became practically irreplaceable in high-tech products used by millions of people today. The company only recently changed its name to U.S. Rare Earths after staking out another deposit at Diamond Creek, Idaho.


"The fact is, the Diamond Creek property is today, the most accessible, undeveloped rare earth resource with significant [heavy rare earths] that there is in North America," said Jack Lifton, an independent consultant who works with U.S. Rare Earths.

Recent USGS figures estimate that the U.S. holds rare earth ore reserves of up to 13 million metric tons. By contrast, the entire world produced just 124,000 metric tons in 2009 — but it would take both time and money for the U.S. to become self-sufficient in producing rare earths.

Deposits near civilization
 
The Diamond Creek location has the added advantages of being in mining-friendly Idaho and having access to nearby highways and power lines — factors that would make opening a mine much easier.
"We have power, light and roads, so we're not in the middle of the wilderness," said Ed Cowle, CEO of U.S. Rare Earths.

Cowle hopes to attract enough funding over the next six months to do some exploratory drilling at his company's deposits. He also pointed to growing interest from national legislators in prodding the federal government to take action.

"Many times opening a mine takes a certain period of time, but if there's a strategic need for material from government, that time period can be lessened," Cowle told TechNewsDaily. "We're hopeful of that because of the nature of what's in the ground."

An expensive proposition
 
Another company, Molycorp Minerals, has already begun processing "light" rare earths, such as lanthanum and neodymium, from a stockpile it accumulated at its mine in Mountain Pass, California. But it still has to ship its rare earths to China for final processing, because only China currently has the equipment needed for the job.

"No one [in the U.S.] wants to be first to jump into the market because of the cost of building a separation plant," Hedrick explained. The former USGS specialist said that such a plant requires thousands of stainless steel tanks holding different chemical solutions to separate out all the individual rare earths.

The upfront costs seem daunting. Hedrick estimated that opening just one mine and building a new separation plant might cost anywhere from $500 million to $1 billion and would require a minimum of eight years.

Lifton has also suggested that many U.S. companies have not jumped into the market because China's state-owned mines keep rare earth prices artificially low. But if U.S. companies do not begin mining American rare earth deposits soon, they may be left scrambling if China does one day stop exporting rare earths.

But Cowle, the CEO of U.S. Rare Earths, seems hopeful that momentum has already begun building for the U.S. government to encourage development of its own rare earth deposits.

"From what I see, security of supply is going to be more important than the prices," Cowle said.