Friday, November 9, 2012

Google says multiple services blocked in China

SAN FRANCISCO (Reuters) - Google Inc said several of its online services have been blocked in China.

Traffic to Google's services in China dropped sharply beginning Friday evening there, according to an online 'Transparency Report' website operated by Google, which provides updates about access to its services in different parts of the world.

Among the sites affected were Google's search engine and its Gmail web email product.

The disruptions come as China's once-in-a-decade meeting to appoint new leadership gets underway.

A Google spokeswoman said the company did not know why the disruption was happening. Google said in a statement that it had 'checked and there's nothing wrong on our end.'

Google's YouTube video service has been inaccessible in China since 2009, while access to other services in China are blocked sporadically.

In 2010 Google relocated its Chinese search engine to Hong Kong after a spat with authorities over censorship and cyber-attacks that Google said originated in China.

(Reporting By Alexei Oreskovic; editing by John Wallace)



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On Twitter, pope to get different type of followers

VATICAN CITY (Reuters) - Pope Benedict already has 1.2 billion 'followers' in the standard sense of the word but he soon will have another type when he enters what for any 85 year old is the brave new world of Twitter.

Vatican officials say the pontiff, who is known not to love computers and still writes most of his speeches by hand, will have his own handle by the end of the year.

'It will be an officially verified channel,' said a Vatican official.

Primarily the tweets will come from the contents of his weekly general audience, Sunday blessings and homilies on major Church holidays. They will also include reaction to major world events, such as natural disasters.

The leader of the world's 1.2 billion or so Roman Catholics will not, of course, write the tweets himself, but he will sign off on them before they are sent in his name.

But even divine intervention might not help squeeze the gist of a papal encyclical, which can run to more than 140 pages, into 140 characters.

Those tweets will probably be limited to a link to a url with the entire document.

The papal handle has not yet been disclosed but it is widely expected to be @BenedictusPPXVI, his name and title in Latin.

The pope has given a qualified blessing to social networking.

In a document issued last year, he said the possibilities of new media and social networks offered 'a great opportunity', but warned of the risks of depersonalisation, alienation, self-indulgence, and the dangers of having more virtual friends than real ones.

In 2009, a new Vatican website, www.pope2you.net, went live, offering an application called 'The pope meets you on Facebook', and another allowing the faithful to see the pontiff's speeches and messages on their iPhones or iPods.

The Vatican famously got egg on its face in 2009 when it was forced to admit that, if it had surfed the web more, it might have known that a traditionalist bishop whose excommunication was lifted had for years been a Holocaust denier.

(Reporting By Philip Pullella; editing by Mike Collett-White)

Social media shakes up solitary online FX trading

LONDON (Reuters) - The solitary world of online foreign exchange trading is emerging from the shadows as solo investors turn to specialist social media networks to link up with their peers and seek market-beating strategies.

Individual or retail trading, estimated at 8-10 percent of the $2.5 trillion daily spot FX market, used to conjure an image of a lone trader with little contact with the outside world.

But that is changing. Thanks to specially tailored websites known as social trading networks, users are able to see and even copy the trades of top-ranked rivals, swap ideas and gauge the market mood in online chat with a community of contacts.

'In the world of trading there are a lot of signals but social media gives us the market sentiment and it is ideal for chatting to people across the world for trade ideas,' said Patrick Orini, who has been trading FX online since 2004.

Retail forex traders make their deals using personal accounts through brokers such as Alpari, FxPro and IronFX. Increasingly, traders are hooking up their broker accounts with social trading networks, such as eToro, Currensee and Tradeo.

Traders usually pay a subscription to use the service while the social network and the broker might share revenue on trades.

In a system reminiscent of microblog network Twitter, top players who make their trades visible can gather thousands of followers, some of whom pay to copy their strategies.

Orini's trading account on a social trading network called Tradeo has 500 followers, of whom around 20 copy his trades.

If online investors do well in their trades, they will attract more followers and will be ranked higher on the trader 'leaderboard' posted on the site.

Retail FX has grown over the last decade as brokers allow individual traders to take highly leveraged positions previously accessible only to institutional investors. The largest group of market players is based in Japan.

eToro, one the world's largest social trading platforms has processed more than 20 million trades since it went live at the beginning of 2012.

Tradeo, a social network for forex traders based in Tel Aviv, launched three months ago and, according to its co-founder and CEO Jonathan Adest, the site has posted up to half a billion dollars of trades from around 10,000 traders since then.

'It's not a broker, but a network for brokers -- a bit like an online trading room,' Adest said.

He said Tradeo also combats a key hazard of online trading -- inaccurate or bogus information. Traders often swap ideas on comment boards, but anonymity and low security makes it difficult to weed out spam.

'The idea of creating a niche social network for forex traders is to help verify commentators usually found in chat rooms and comment boards,' Adest said.

In its increased use of social media, online forex trading is catching up with developments in the equities market.

Retail equities trading is estimated to account for up to half of trade in UK small companies. Retail FX's smaller share of the overall market reflects the fact that most trade is over-the-counter and lack of volatility that make it harder to turn a profit.

TWITTER

In the equities market, analysis of Twitter postings and news headlines has been used to predict stock price movements.

London-based hedge fund firm Derwent Capital is launching a new spread betting application for retail traders in January that will use Twitter's 350 million daily tweets to create a sentiment indicator covering currency pairs and other assets.

Social media makes existing currency market sentiment models more effective, said John Hardy, head of FX strategy at Saxo Bank.

'It would be a new way to measure 'sentiment' in real time, something that banks can do already via how people are actually trading...but the Twitter measures might be able to bring new nuances and sophistication,' he said.

Arguably, solo traders who hook up to social trading networks are seeking an edge in the 'wisdom of crowds'.

'The reason why so many people, like myself, do share their activity and ideas is to help each other and build the community,' Orini said. 'I got so many valuable ideas from other traders, that I'm more than happy to share my ideas as well.'

(Editing by Nigel Stephenson)



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Thursday, November 8, 2012

Exclusive: SEC left computers vulnerable to cyber attacks - sources

WASHINGTON (Reuters) - Staffers at the U.S. Securities and Exchange Commission failed to encrypt some of their computers containing highly sensitive information from stock exchanges, leaving the data vulnerable to cyber attacks, according to people familiar with the matter.

While the computers were unprotected, there was no evidence that hacking or spying on the SEC's computers took place, these people said.

The computers and other electronic devices in question belonged to a handful of employees in an office within the SEC's Trading and Markets Division. That office is responsible for making sure exchanges follow certain guidelines to protect the markets from potential cyber threats and systems problems, one of those people said.

Some of the staffers even brought the unprotected devices to a Black Hat convention, a conference where computer hacking experts gather to discuss the latest trends. It is not clear why the staffers brought the devices to the event.

The security lapses in the Trading and Markets Division are laid out in a yet-to-be-released report that by the SEC's Interim Inspector General Jon Rymer.

NO DATA BREACHED

The revelation comes as the SEC is encouraging companies to get more serious about cyber attacks. Last year, the agency issued guidance that public companies should follow in determining when to report breaches to investors.

Cyber security has become an even more pressing issue after high-profile companies from Lockheed Martin Corp to Bank of America Corp have fallen victim to hacking in recent years.

Nasdaq OMX Group, which runs the No. 2 U.S. equities exchange, in 2010 suffered a cyber attack on its collaboration software for corporate boards, but its trading systems were not breached.

One of the people familiar with the SEC's security lapse said the agency was forced to spend at least $200,000 and hire a third-party firm to conduct a thorough analysis to make sure none of the data was compromised.

The watchdog's report has already been circulated to the SEC's five commissioners, as well as to key lawmakers on Capitol Hill, and is expected to be made public soon.

SEC spokesman John Nester declined to comment on the report's findings.

SEC NOTIFIED EXCHANGES

Rich Adamonis, a spokesman for the New York Stock Exchange, said the exchange operator is 'disappointed' with the SEC's lapse.

'From the moment we were informed, we have been actively seeking clarity from the SEC to understand the full extent of the use of improperly secured devices and the information involved, as well as the actions taken by the SEC to ensure that there is proper remediation and a complete audit trail for the information,' he said.

A spokesman for Nasdaq OMX declined to comment on the security lapse at the SEC.

Since the internal investigation was concluded, the SEC initiated disciplinary actions against the people involved, one of the people familiar with the matter said.

The SEC also notified all of the exchanges about the incident.

The SEC's Trading and Markets Division, which has several hundred staffers, is primarily responsible for overseeing the U.S. equity markets, ensuring compliance with rules and writing regulations for exchanges and brokerages.

Among the division's tasks is to ensure exchanges are following a series of voluntary guidelines known as 'Automation Review Policies,' or ARPs. These policies call for exchanges to establish programs concerning computer audits, security and capacity. They are, in essence, a road map of the capital markets' infrastructure.

Although they are only voluntary guidelines, exchanges take them seriously.

Under the ARP, exchanges must provide highly secure information to the SEC such as architectural maps, systems recovery and business continuity planning details in the event of a disaster or other major event.

That is the same kind of data used by exchanges last week after Hurricane Sandy forced U.S. equities markets to shut down for two days.

Prior to re-opening, all of the U.S. stock market operators took part in coordinated testing for trading on NYSE's backup system.

SEC Chairman Mary Schapiro recently said the SEC is working to convert the voluntary ARP guidelines into enforceable rules after a software error at Knight Capital Group nearly bankrupt the brokerage and led to a $440 million trading loss.

(Reporting by Sarah N. Lynch; Editing by Karey Wutkowski and Lisa Shumaker)



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Icahn says has mulled Netflix takeover, no decision made

(Reuters) - Activist investor Carl Icahn, who holds an almost 10 percent stake in Netflix, said on Thursday he has considered a hostile takeover bid for Netflix, but it was uncertain he stood a chance of acquiring the Internet streaming service.

Asked by TV network CNBC whether he would 'go hostile' on Netflix, Icahn said, 'The thought had certainly entered my mind. I have to admit I think about it, but we haven't made that decision.'

While Icahn said a hostile takeover was 'certainly an alternative,' he downplayed the possibility several times. He added that he would not be able to pay as much for Netflix as a 'synergistic buyer' looking to acquire an Internet movie and TV subscription service.

Netflix has been the subject of periodic acquisition speculation, with potential names tossed around from Microsoft Corp to Amazon.com Inc.

Icahn last month disclosed he had amassed control of 9.98 percent of Netflix shares. Most of his purchases were in the form of call options that expire in September 2014. The billionaire, who is known for shaking up corporate management, has said Netflix was undervalued and an attractive acquisition target for a number of companies.

Netflix has since adopted a poison pill defense to prevent a hostile takeover, a move that Icahn on Thursday called 'reprehensible.'

A Netflix spokesman did not immediately respond to a request for comment on Icahn's remarks.

(Reporting By Liana B. Baker in New York; Additional reporting by Katya Wachtel and Sam Forgione in New York and Lisa Richwine in Los Angeles; Editing by Leslie Adler)



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Priceline to buy Kayak Software for $1.8 billion

(Reuters) - Online travel agency Priceline.com Inc said on Thursday it will buy Kayak Software Corp in a friendly deal that values the company at $1.8 billion.

Priceline is offering $40 a share for Kayak, a 29 percent premium on the company's Thursday closing price of $31.04.

Kayak shares jumped 27 percent to more than $39 in extended trading, while Priceline.com moved lower.

Daniel Kurnos, an analyst at Benchmark Company, said the purchase would let Priceline.com participate more in the travel advertising space.

'Priceline had previously addressed that it was having issues in terms of marketing efficiencies,' he said. 'This certainly represents an investment for them in the paid-search, or the advertising channel, which is not an area where they've historically had a lot of exposure.'

But Kurnos added the move also exposes Priceline.com more significantly to the volatile air travel market.

Kayak, which uses a website and a mobile site to help consumers compare prices for airlines and hotels, went public in July with shares priced at $26.

The deal expected to close late in the first quarter of 2013.

(Reporting by Karen Jacobs in Atlanta and Tej Sapru in Bangalore; Editing by Maju Samuel; and Peter Galloway)



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Assad fans vent over Syria at Qatar soccer match

BEIRUT (Reuters) - Syria blames the state of Qatar for arming rebels bent on overthrowing President Bashar al-Assad. Qatar has accused Assad of genocide. On Thursday afternoon, the two countries battled it out on the soccer field.

'Our souls, our blood, we sacrifice them for Bashar,' the Syrian fans screamed, waving their national flag, as the under-19s played in the United Arab Emirates in an Asian Football Confederation tournament.

Twitter was ablaze with politicized messages on the game from a group of pro-Assad social media enthusiasts.

'Doesn't matter who wins a football game, at the end #Syria is kicking #Qatar's mercenaries asses everyday,' said a Twitter user whose tag is @ProSyriana.

The game was broadcast live on Syrian state television, though the commentators steered clear of politics.

Peaceful pro-democracy protests hit Syria's streets in March 2011 but were met with live ammunition. Nineteen months later, Assad is fighting a civil war against a majority-Sunni Muslim opposition. Assad is an Alawite, a sect that is an offshoot of Shi'ite Islam.

Damascus said from the beginning that the uprising was a foreign-backed conspiracy and ever since, Assad supporters have directed vitriol at Sunni states Qatar and Saudi Arabia.

'#Qatar players (are) falling down like #FSA scum,' said @Syriancommando, a prominent online activist, referring to the Free Syrian Army, a group of Syria army defectors who joined rebel fighters.

In the end, after a Syrian red card and a couple yellows, Qatar won 2-1 but fell out of the tournament on points, while Syria stayed in.

'#Qatar u may have won the battle but u didn't win the war. #Syria goes on to play next game, Qatar is out. We'll win the real war too.' said @Partisangirl, a Syrian YouTube commentator.

(Reporting by Oliver Holmes; Editing by Tom Perry and Paul Casciato)



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