FBI investigating AT&T iPad security breach

NEW YORK - The Federal Bureau of Investigation has opened a probe into a security breach of Apple Inc's iPad that exposed personal information of AT&T Inc's customers.

"The FBI is aware of these possible computer intrusions and have opened an investigation to address the potential cyber threat," FBI spokesman Jason Pack said on Thursday.

AT&T acknowledged the security breach on Wednesday but said only email addresses were exposed to hackers who identified a security weakness [ID:nN09177730].

It said it has corrected the flaw. It also declined comment on the FBI investigation.

Yahoo! banks on mobile devices for its future growth

SINGAPORE - Yahoo! is banking on mobile devices for future growth -- particularly in Asia -- as consumers leapfrog cumbersome computers to access the Internet via feature-packed handheld gadgets.

The US Internet giant believes "smartphones" with better operating systems, high-speed Internet networks, falling prices and a plethora of content will fuel the mobile boom.

Markets in India, Indonesia, the Philippines, Vietnam, Thailand and Malaysia will lead the way, Yahoo! executives said at a telecom trade fair in Singapore.

"We see a significant number of people who will have their first Internet experience on their mobile phone," said Matthias Kunze, Asia-Pacific managing director for Yahoo! Mobile.

In Indonesia, mobile data subscribers have outnumbered users of personal computers, Kunz told Agence France-Presse on Tuesday on the sidelines of the CommunicAsia 2010 technology conference and exhibition.

India has about 40 million to 50 million PCs but this is far fewer than the estimated 550 million mobile subscribers, of whom around 20 million use their handheld gadgets to access the Internet.

"We expect mobile data users (in India) to surpass PC users in the next two to three years," said Kunze.

"For a company like Yahoo! mobile is actually critical in its strategy because if we're not on mobile, we will miss the boat," he added.

He said mobile phones play a crucial role because they are the most ubiquitous devices in the world.

"Maybe there are only more toothbrushes in the world than mobile phones," Kunze said.

Irv Henderson, vice president for product management at California-based Yahoo!, said the Asia-Pacific region currently accounts for 25-30 percent of the company's global mobile audience.

Kunze added this is projected to grow by "double or triple digits" in the next two to three years.

"We believe growth will unevenly skew towards this market," said Henderson.

Yahoo! Mobile is positioning itself to be ahead of the game, with special focus on India, Indonesia and other emerging Asian markets.

At CommunicAsia, it announced the availability of a mobile phone made by France's Alcatel and China's TCT Mobile featuring an embedded one-touch button that links users directly to a suite of Yahoo! services.

The services cover Yahoo! Mail and Yahoo! Messenger as well as the company's Homepage, Search, Social Pulse, Flickr, Address Book and Calendar services.

The phone, priced at under 100 US dollars, will be launched in India by the end of July and subsequently in Indonesia, the Philippines, Malaysia, Vietnam and Thailand within this year.

Yahoo! also announced a scheme in which the Yahoo! Messenger application programme interface, or API, will be made available to "partners and third-party developers" in the Asia-Pacific.

"We believe by opening up our API it will foster innovation in this region," said Henderson.

Microsoft releases slim new Xbox 360 videogame console

LOS ANGELES - Microsoft on Monday began shipping a slim, more powerful version of its Xbox 360 videogame console to US stores.

The announcement came as the US technology giant announced that its hotly-anticipated motion-sensing "Kinect" controllers for Xbox 360 consoles will be available in the United States beginning November 4.

"Kinect" is the name for the new game technology developed by Microsoft under the code name Project Natal.

The potentially revolutionary device uses a 3-D camera and gesture recognition software to let people play videogames using natural body movements instead of hand-held controllers.

The new slim Xbox console features a 250 gigabyte hard drive, built-in high speed wireless connectivity and is priced at 299 dollars, the same as its predecessor.

During a press conference held on the eve of the start of a major Electronic Entertainment Expo in Los Angeles, Microsoft showed off an array of games for its new Kinect system.

At least 15 titles for play using Kinect will be available when the hardware add-on to Xbox consoles becomes available, according to Microsoft.

No price details were disclosed at the presentation, which provided glimpses of how Kinect lets players control on-screen characters with natural gestures instead of hand-held controllers.

"You interact with things the same way you would in the real world, with your moves and your voice," said Kinect creative director Kudo Tsunado. "Anyone can jump in and play."

Players can tell consoles what to do with simple commands such as "Xbox play music."
Microsoft games tailored for Kinect include "Kinectimals" that lets children play with and train virtual wild animals and a sports game with sprinting, the javelin throw, the long jump and more track events.

A Kinect "Joy Ride" game features car racing and stunts while an "Adventures" game which includes virtual river rafting is designed to "get the group off the couch and using the entire body to play."

Kinect cameras can take pictures of players at various points during game play and those images can be shared online at social networking service Facebook and other websites using Xbox Live Internet connections.

"Kinect recognizes you," said Marc Whitten, vice president of Xbox Live. "It responds to your gestures and it listens to your voice. There is no learning curve."

Kinect is going to be available in every country where Xbox 360 consoles are sold and will also synch with smartphones running the latest version of Windows mobile software, according to Whitten.

Kinect will also enable people to have online video chats during which people could even watch the same film.

Microsoft has a partnership with sports cable network ESPN to bring matches to Xbox using Kinect technology.

Third party studios are also tailoring titles for Kinect, with French videogame titan Ubisoft showing off a "Your Shape" exercise game in which players are immersed virtually in gyms or yoga studios.

MTV Games and Harmonix have developed a game in which players have to follow along with realistic dance routines crafted by top choreographers.

"For years we've been eager to develop a dance game but the right technology didn't exist," said Harmonix chief executive Alex Rigopolus. "As soon as we saw Kinect we realized the technology we had been waiting for had arrived."

Lucas Arts is making a Kinect videogame that will transform players into virtual Jedi knights battling Darth Vader and the evil empire made famous by Star Wars films.

"This year's E3 gives the gaming industry the first real opportunity to prove that it’s not just about making shoot-em-up games for testosterone-fueled boys," said Forrester media analyst James McQuivey.

"The secret to the gaming industry's future is the realization that game consoles are the most powerful device in the living room, ready to provide many of the interactive experiences of the future."

Obama sends Independence Day greetings to Filipinos

MANILA, Philippines – US President Barack Obama sent his greetings to Filipinos on the 112th commemoration of the Philippine Independence Day.

“On behalf of the American people, I send my best wishes to all those who celebrate the 112th Anniversary of Philippine Independence Day – here in America, in the Philippines, and around the world,” Obama said.

Obama said the US is home to many Americans who trace their roots to the Philippines and that “they are all an important part of the American identity.”

With common history and values, Obama believes that the two countries will remain to be partners in promoting peace and development.

“I am confident that our nations, sharing in our democratic principles, will continue our strong friendship and cooperation,” he said.

On Saturday, President Arroyo led the Independence Day activities in Manila which started with flag-raising rites at the Rizal Park, followed by a wreath-laying ceremony at the monument of national hero, Dr. Jose Rizal.

Other Independence Day celebrations were also held in different parts of the country.

Noynoy's Little President checks out Bahay Pangarap

MANILA, Philippines - Malacañang on Saturday said the meeting between members of the Arroyo Cabinet and the incoming Aquino Cabinet will push through.

Executive Secretary Leandro Mendoza, however, said the date of that meeting has not yet been set, noting they are still waiting for President-elect Benigno "Noynoy" Aquino III to complete his Cabinet.

In an ambush interview, Mendoza also said he also met with incoming Executive Secretary Paquito "Jojo" Ochoa on Friday and inspected the Bahay Pangarap inside the Presidential Security Group (PSG) compound.

Aquino is considering Bahay Pangarap as his official residence once he assumes office. (Click here for story and video on Bahay Pangarap).

Ochoa and Mendoza also discussed the venue for Aquino's inauguration on June 30, but no specific area has been set yet. Aquino said he is considering holding the event at the Quezon Memorial Circle.

Meanwhile, Mendoza said Aquino would have to fill more than 4,500 vacancies in government, including members of the Palace housekeeping staff.

"Diniscuss namin glitches sa transition, like for example, they might not be able to immediately appoint, ang report namin sa kanila, 4,500 vacancies. Di kasama rito ang staff, housekeeping, co-terminus lahat yan, mga casual yan. Isa yun sa mga pinag-usapan namin on what can be done to deliver a seamless, continuous government service," Mendoza said. "Pagka siguro walang kapalit, magkakaroon siguro ng holdover."

"We leave it to their discretion," Mendoza said, referring to the incoming administration.

Japan ruling party support leaps on new leader: poll

TOKYO – Support for Japan's ruling Democratic Party leaped to 36.1% in a poll published by Kyodo news agency on Saturday after the appointment of a new leader in the run-up to an upper house election.

The figure was up 15.6 percentage points on a poll carried out at the end of May before unpopular prime minister Yukio Hatoyama stepped down and was replaced as party head, and thus premier, by Naoto Kan.

Kan, 63, will become Japan's fifth prime minister in three years, taking over as the country struggles to rein in a huge public debt, engineer growth in an aging society, and manage ties with security ally Washington and a rising China.

Kan's rise and his cabinet line-up, set to be announced on Tuesday, could spell bolder steps to contain a public debt twice the size of the economy. But he faces opposition from many in his party before the election, expected in July.

He has picked Katsuhiko Noda as finance minister, Kyodo said, a choice that will be welcomed by the bond market because he favors fiscal discipline and has supported the idea of capping new debt issuance for next year.

Satoshi Arai, a former aide to the outgoing Hatoyama, is to become national strategy minister, Kyodo said. Kan will keep Foreign Minister Katsuya Okada and Defense Minister Toshimi Kitazawa, but plans to replace eight cabinet members, the agency said.

In the Kyodo telephone poll carried out on Friday and Saturday, 57.6% of respondents said they had high expectations of Kan, a fiscal conservative with a reformist image.

That compares with just 19.1% of respondents to a similar question posed in the May poll on expectations of Hatoyama, Kyodo said.

Nearly 33% of respondents said they planned to vote for the Democrats in the upper house election, compared with 23.4% for the main opposition Liberal Democratic Party, which had been in the lead in the previous poll, Kyodo said.

Ozawa problem

Unlike many recent premiers, Kan has no connection with a political dynasty. That could appeal to voters weary of leaders from well-to-do backgrounds who prove inept at governing.

He got his start in politics as a student activist, later joining small political parties before helping to found the then-opposition Democratic Party in 1996.

But among Kan's biggest immediate headaches may be Ichiro Ozawa, the former party secretary general widely seen to have held sway over Hatoyama's government from behind the scenes.

Kan has made clear he wants to sideline the 68-year-old Ozawa. Funding scandals linked to him, over which three of his current and former aides were indicted, were one of the main reasons for the Democrats' loss of voter support.

Many of Ozawa's supporters backed Kan's rival for the top party job and on Friday he hinted he would not fade away.

"I'm sorry I did not come to the forefront this time," the Yomiuri newspaper quoted him as telling supporters, some of whom had urged him to stand against Kan.

"But the real contest comes in September," he added, referring to the next party leadership election.

Ozawa is known as a master campaign strategist, but is reluctant to promise bold fiscal reform steps such as raising the sales tax ahead of the upper house poll.

The Democrats have a large lower house majority and will run the government whatever the outcome of the July upper house poll. But the ruling bloc needs to win a majority in that chamber to ensure that legislation is enacted smoothly.

Clinton warns of likely Iranian 'stunt' ahead of UN sanctions vote

WASHINGTON – US Secretary of State Hillary Clinton said Sunday she expects Iran will "pull some stunt in the next couple of days" as a UN vote on tough sanctions against Tehran over its nuclear program looms.

Asked what she expects in the runup to a UN Security Council vote on sanctions on Tehran over its controversial nuclear program, Clinton said "I expect Iran to pull some stunt in the next couple of days."

Iran has in the past taken steps to "avoid being held accountable," Clinton told reporters as she waited to depart on a Latin American trip.

"I don't think anybody should be surprised if they (Iran) try to divert attention once again from the unity within the Security Council," the top US diplomat said.

"I think we'll see Iran say ...'wait a minute, wait a minute look at what we're going to do' in a bid to thwart sanctions," Clinton added. "They've consistently tried to avoid being held accountable."

Iran is already under three sets of UN sanctions for its refusal to suspend enrichment of uranium, which can be used as fuel for nuclear power stations and in atomic weapons.

Senior US officials have said they are forging ahead with a resolution without Brazil and Turkey, two non-permanent Security Council members that brokered a nuclear fuel swap deal with Iran aimed at forestalling sanctions.

Under the deal reached last month Iran committed to deposit 1,200 kilograms (2,640 pounds) of low-enriched uranium in Turkey in return for reactor fuel.

But the accord drew a cool reaction from world powers led by the United States.

Asked if she were worried about rotating council members and emerging powers Brazil and Turkey not backing sanctions, Clinton said: "We'll wait and see what happens, but we have the votes."

Pressed as to whether she meant for passage of new Iran sanctions at the UN, Clinton said: "Yes."

Iranian President Mahmoud Ahmadinejad said on Friday that his country will defend its rights even if a new sanctions resolution is imposed by the UN Security Council.

"We are standing in the face of enemies. To defend the rights of the nation, we will pull out any resolutions from the mouth" of the enemies, the hardliner said in a speech marking the 21st death anniversary of revolutionary leader Ayatollah Ruhollah Khomeini.

Last month the United States introduced a draft resolution to impose tough new UN sanctions on Iran for pursuing its controversial nuclear program, saying it had the support of the four other permanent veto-wielding Security Council members, Russia, China, Britain and France.

Philippines sees room to adjust 2010 economic goals

Finance chief says gov't may raise GDP growth, trim deficit goal

MANILA, Philippines - The country may end the year with a faster growth than earlier expected, helping the government lift its revenues and narrow its budget deficit for 2010, Finance Secretary Margarito Teves said on Friday.

The government has scope to revise some of its macroeconomic growth goals this year and raise its growth target from the current 2.6% to 3.6% following the country's stellar first-quarter performance, Teves said.

"It looks like there is room for adjustments in some of the macroeconomic targets upwards because we have favourable results during the first quarter," Teves told reporters.

He also said the government may consider lowering its 2010 budget deficit goal from the current P293.2 billion ($6.3 billion) or 3.6% of GDP, if expenditures stay within the program for the rest of the year and state revenues come in within target.

"Other things being equal, without examining first the micro components, that seems to be the direction, but I cannot give you a clear answer yet until we have discussed this together with the DBCC," Teves said when asked about the 2010 budget deficit goal.

DBCC or the Development Budget Coordination Committee is the inter-agency body tasked to set the government's economic and fiscal policies and goals. The technical working group of the DBCC will meet next week to assess the current targets.

The Philippine economy grew 7.3% in the March quarter, its fastest in 22 years.

But some analysts think the strong pace of growth was unlikely to be sustained in the second half as a boost from spending related to the May 10 presidential election fades and European austerity measures cut demand for the country's exports. Germany and the Netherlands are among the Philippines' top 10 export markets.

Business leaders hand economic blueprint to Aquino

MANILA, Philippines - Several business leaders have put together an economic blueprint to help incoming President Benigno "Noynoy" Aquino navigate his first 100 days in office.

The Philippine Chamber of Commerce and Industry (PCCI) wants the president-apparent to thresh out major economic issues, including concerns on the budget deficit, current power supply, and the country's overall investment climate. It also urged Aquino not to give in to demands to increase basic wage.

PCCI vice chairman Donald Dee, for his part, said Aquino should begin looking into corrupt practices in the country's tax agencies.

Meanwhile, Makati Business Club executive director Alberto Lim said the Aquino administration should establish a policy to decongest Metro Manila.

Lim noted the capital's main airport and seaport should be transferred to neighboring provinces to better accommodate visitors and investors.

Lim, who is touted to be the next secretary of the Department of Budget and Management, also urged Aquino to consider raising the rate of existing taxes, particularly the value-added tax, to generate funds for government.

Oil dips ahead of US jobs report, NY crude above $74

SINGAPORE - Oil prices pulled back in Asian trade Friday, giving up gains in New York as investors braced for the release of a key US jobs report, analysts said.

New York's main contract, light sweet crude for delivery in July, shed 31 cents to $74.30 a barrel while Brent North Sea crude for July was down 16 cents to $75.25.

Oil prices surged Thursday after a weekly oil inventories report from the US Department of Energy showed a larger-than-expected dip in US gasoline inventories, indicating stronger demand.

Crude inventories also fell in line with expectations.

Analysts said investors were staying on the sidelines in anticipation of job creation and unemployment figures from the Labor Department due out later Friday.

"The movement we've had in oil prices today is fairly modest after the gains we saw last night," said David Moore, a commodity strategist with the Commonwealth Bank of Australia.

"In general, investors are probably sitting waiting for the payrolls and the employment reports in the US tonight," he told AFP.

The Labor Department is due to release employment data Friday and most analysts expect it to show 500,000 non-farm jobs were created last month, up from 290,000 in April.

The unemployment rate was expected to dip to 9.8% from 9.9% in April.