Friday, January 30, 2015

China: business challenges & tightening grip on net

China is facing economic and business challenges as overspending and overbuilding take its toll. The country also faces a battle placating tech companies and the country's 640 million Internet users as it introduces more draconian regulations.

Threat to growth

China may have become the world's largest economy - by some standards -  but a credit-fuelled construction binge threatens its future growth.

China's official growth rate of 7.4% in 2014 was at its slowest pace since 1990, a time when the country still faced sanctions in the wake of the 1989 Tiananmen Square massacre.

The International Monetary Fund has lowered its growth forecast for China for 2015 from 7.1% to 6.8% and predicts the country's gross domestic product will grow slower than India next year for the first time in decades.

The effects of a China slowdown could spread far beyond China's borders. The "slowdown in China could turn into a disorderly unwinding of financial vulnerabilities with considerable implications for the global economy," the World Bank warned this month.

Global impacts

In fact there are already signs of an impact reflected in global commodity prices, including oil, and in the stuttering performance of economies in Brazil, Germany, Australia and much of Asia, which are all increasingly reliant on Chinese demand.

Overspending, especially at a local level, and often overlooked by Beijing has not helped matters. Building projects, funded by enormous loans, have certainly kept China's economy moving. It has kept millions in work too from construction workers to their suppliers and support industries. But the chickens may be coming home to roost, since all debts have to be repaid. In essence spending to control debt is unsustainable [WSJ / FT].

"Intrusive" rules on foreign firms

While China sits back to take stock on its growing debt and slowing economy it has another challenge. Newly implemented regulations require technology firms such as Cisco or Microsoft to hand over source code and incorporate backdoors in products supplied to China's banking and financial industry.

The US Chamber of Commerce and other groups have called the rules "intrusive" and business groups are now seeking "urgent discussions" with the Chinese authorities.

The new rules, laid out in a 22-page document approved at the end of 2014, also require firms to submit to invasive audits and are just latest in a series of policies designed to strengthen cybersecurity in China.

But many tech companies are not comfortable with the new rules, which many see as yet more protectionist measures designed to oust foreign competition.

The US Chamber of Commerce has called for "urgent discussion and dialogue" about what they said was a "growing trend" toward policies that cite cybersecurity in requiring companies to use only technology products and services developed and controlled by Chinese firms [NYT / BBC / Guardian / WSJ].

Caught between a Rock and a Hard Place

Many Western tech companies might well baulk at revealing their source code and other data. But to not do so risks losing a market worth billions of dollars.

According to the American market research firm the International Data Corporation [IDC] China was expected to spend some $465 billion in 2015 on information and communications technology and that the expansion of China's tech market would account for 43% of the worldwide tech-sector growth.

And according to Frank Gens, the IDC's chief analyst, the main driver of ICT spending growth was the sheer size of China's market and its growing number of Internet users estimated in 2015 to be around 680 million, more than two-and-a-half times the number of users in the United States.

Tough challenges

But foreign firms doing business in China face other headaches too as authorities tighten Internet censorship.

In the last few months there have been sporadic several turnings of the screw with Google's GMail and other Internet services being almost completely blocked,

But authorities ramped up censorship even more this week as they began to target VPN's, or Virtual Private Networks, which many people and businesses use to circumvent Internet blocks.

Slowing legitimate commerce

"One unfortunate result of excessive control over email and Internet traffic is the slowing down of legitimate commerce, and that is not something in China's best interest," said James Zimmerman, chairman of the American Chamber of Commerce in China. "In order to attract and promote world-class commercial enterprises, the government needs to encourage the use of the Internet as a crucial medium for the sharing of information and ideas to promote economic growth and development."

However China seems unrepentant and appears to ignore any criticism of its control of the Internet. In fact one official claimed the blocking of VPNs was to do with "Internet safety" [China Daily].  

Wen Ku, a top official from the ministry, said that VPN providers must abide by Chinese laws to operate in the country and reiterated the government's commitment to the 'healthy development of the internet sector'. The Ministry of Industry and Information Technology has requested that VPN providers register with the government agency. However given that the main function of a VPN is to circumvent the Great Firewall, this seems unlikely and indeed none have done so thus far [CNN / NYT / Time].

In November last year China blocked access to hundreds of websites just days before they held the World Internet Conference [Guardian]. 

Premier Li Keqiang seemingly did not see the irony nor the contradictions as he hailed the Internet as one of the greatest inventions in human history and claimed China was a lucrative market for all the global Internet giants [Xinhua].

The stifling of the Internet hasn't just angered expats and foreign businesses, it is also annoying Chinese students, academics and researchers who say their work is directly affected by the blocks.

In recent weeks, a number of Chinese academics have gone online to express their frustrations, particularly over their inability to reach Google Scholar, a search engine that provides links to millions of scholarly papers from around the world.

"Living in the Middle Ages"

"It's like we're living in the Middle Ages," Zhang Qian, a naval historian, complained on the microblog service Sina Weibo.

Meanwhile a biologist also criticised the policy of blocking VPNs and legitimate websites. "For a nation that professes to respect science and wants to promote scientific learning, such barriers suggest little respect for the people actually engaged in science."

This week Zhang Jianguo, director of the State Administration of Foreign Experts Affairs, bemoaned the nation's shortage of scientists and technology entrepreneurs and beckoned foreign experts to come to China [China Daily].

But the very nature of China's Internet may dissuade many expats form relocating, Avery Goldstein, a professor of contemporary Chinese studies at the University of Pennsylvania, says. Indeed, the growing online constraints could also compel ambitious young Chinese studying abroad to look elsewhere for jobs.

China has yet to see an exodus of experts or businesses thus far. Nor are there obvious signs of a slow down of foreign experts heading to the country. But should online restrictions worsen that situation may change and may slow China's economy further still.

tvnewswatch, London, UK

Friday, January 23, 2015

UK ISPs line up to block pornography

UK broadband Internet provider Sky is to block adult content by default, unless users opt out.

The decision comes nearly two years after Prime Minister David Cameron put pressure on Internet service providers [ISPs] to make online filtering mandatory [BBC / BBC Q&A].

ISPs initially rejected the proposal and there was widespread criticism in the media. But with TalkTalk also reported to go the same route as Sky, the blocking of pornography and other adult content could become the norm.

Announcement

Sky announced it was to phase in the filtering in the coming months in a blog posted on its website https://corporate.sky.com/media-centre/our-blog/2015/sky-broadband-shield-rolling-out-to-all-our-customers  

Meanwhile TalkTalk said it too was following suit and apply a block to all users' accounts, unless they have already opted out of such blocks. Customers will then have to ask TalkTalk to allow pornographic websites to be visited through their Internet connection.

BT is also contacting its customers to ask them whether they want to have the tool introduced. Virgin also gives parents the option to turn on the free tools but keeps them off by default.

The filter enabled by TalkTalk's HomeSafe product can stop Internet connections from being used to access violent content and gambling websites, as well as pornography.

Big Brother or Nanny State

Some Internet users have criticised the move saying it was another move towards a more draconian state. "Britain is getting more like North Korea every day. What are they going to block next?" one comment read on the Daily Mail website

Others have also condemned the move as a danger to freedom of expression [Belfast Telegraph].

While there is undoubtedly some concerns over censorship, there is a change in mood not only from the government but also the Internet industry. In fact as early as 2013 Dido Harding, TalkTalk's chief executive, said that she supported such automatic blocks [Independent].

Some filtering will be tiered. For example Sky's Broadband Shield offers various levels of filtering from PG, 13, 18, customizable settings or none. With the new system the default will be set to the 13-year-old age rating which will block sites that deal with dating, file-sharing, violence, drugs, "criminal skills," suicide and self-harm, and pornography, and many more types of objectionable content.

It is not entirely clear how the ISP deals with enquiries made on search engines especially those that involve image searches [BBC].

However for a sense of how such filtering might work one need only look to China where ISPs as well as Internet companies are required to block, filter or censor objectionable content.

Internet blocking

China's Golden Shield Project - often referred to as the Great Fire Wall - is used to great effect in stopping access to content authorities deem sensitive. Indeed the GFW attempts to stop the spread of rumours, stifling protests and dissent. However it also plays a part in stemming the flow of online pornography.

Searching for the Chinese term Sèqíng [色情] or pornography on Baidu, China's top search engine, and there will be few salacious pictures shown in image searches. There may also be a message displayed stating that "According to relevant laws, regulations and policies, some search results are not displayed".

Searches for inappropriate search terms may even result in 404 error pages or the Internet connection being reset, in other words cut off for a period of time.

Using foreign search engines will often be of little help since they may often be blocked whilst others such as Bing comply to local Chinese law.

Nonetheless filtering out specific content is an imprecise science. The Open Rights Group's Blocked project [www.blocked.org.uk] has shown that filters block all kinds of websites, including some that provide useful advice to children and young people says Jim Killock, executive director of the Open Rights Group. "Customers need to understand the implications of filters before deciding whether or not they want them."

Even in China some inappropriate images still get through whilst legitimate sites get blocked. And in the UK too reports suggest that legitimate sites are also being blocked by porn filters [Russia Today], whilst some fail to block unsavoury material [PCPro].

Andrew Ferguson, founder of broadband news site ThinkBroadband, said that parents should not rely solely on filters to protect their children from online nasties. "As ever the filters don't block all unsavoury material so are not a replacement for parenting and the embarrassing questions all parents have to face," he said.

Free choice

At present Internet users have a choice whether or not they want the censored Internet or the fully accessible one. But it may perhaps only be a matter of time before pornography and other 'objectionable content' becomes mandatory.

Certainly if China had its way much of the world would be applying similar Internet restrictions that it does on its own citizens [Does China Hope to Remap the Internet in its Own Image?]. In fact some have already speculated that China may have influenced the implementation of porn filtering being rolled out in the UK [AnimalNewYork].

tvnewswatch, London, UK

Thursday, January 22, 2015

China’s economy slows as property prices slide

It was not a good week for China as new figures revealed economic growth had slowed to its weakest in 24 years, expanding 7.4% last year from 7.7% in 2013. Enviable by many other country's standards, but for China any slowdown could be disastrous if domestic spending does not keep afloat the economy as exports wane [BBC].

Property prices are already beginning to drop in a country where people buy housing stock as an investment rather than to live in. And the risk of a property bubble bursting is a very real danger.

The buying up of empty properties and leaving them empty has led to a massive increase in so-called ghost cities [CNN / Sky News].

Bursting bubbles

The situation could become very uncomfortable indeed. Not just for those with property investments who could lose millions. Even single-home owners may find themselves in negative equity. Such a bubble burst could dry up public confidence in spending which could lead to further economic woes [tvnewswatch: Will China's bubble burst as global economy slides? / Reuters / BBC]

There are few that would argue against the risks of a property bubble burst. But for China it would be particularly dangerous [FT].

For example, not only does the property market account for more than a sixth of the total GDP, property in the country is closely tied to various other sectors such as banking and construction [CNBC].

The real problem that is hindering banking is that property in China is used as the main form of collateral, and for the property market to collapse would mean default on loans that would have a trickling effect. Unlike other nations, Chinese private banks are closely tied to the government, often headed by ex-government officials and were used as key tools to implement their stimulus package in 2009. Being so closely tied to the government, while beneficial in backing, could in the same way turn parasitic should default on the big scale hit these banks that hold a majority of mortgages in the nation [SeekingAlpha].

"A property price crash in the world's second largest economy would have global implications," says Wells Fargo Securities economist Jay Bryson [Time].

But how bad could it be? There are some that suggest the results would not be as disastrous as doommongers predict. But there are some worse case scenarios that one cannot ignore.

Domino effect

A collapse in housing prices would result in fewer construction jobs, accounting for an estimated 60 million people in urban China. Jobless workers would of course spend less, which would mean goods and services the now-unemployed construction workers would normally purchase would not get bought.

If out-of-work construction workers reduce their spending on food and entertainment, the businesses that produce that food and entertainment will make less money and then some of their workers may face unemployment too.

Lower spending would mean people having less money in their paychecks, and the nation's GDP would suffer as a whole.

Moreover, if housing tanks, banks would see losses, resulting in the tightening of credit and fewer loans for people to start businesses. And as already stated, homeowners would spend less having found themselves in negative equity.

Countries outside China would also feel the pinch as export to the country dry up as demand would undoubtedly shrink.

"Don't lose sleep at night worrying about China," Bryson tells Time magazine. But nonetheless advises investors to "keep an eye on it." [Economist]


tvnewswatch, London, UK

Wednesday, January 21, 2015

China in spotlight over stealing US military secrets

China has strenuously denied it stole the designs for America's next generation fighter jet in the latest spat over cyberattacks for which it is often blamed.

"Groundless" accusations

China angrily refuted the allegations it had stolen US military secrets this week. The Foreign Ministry in Beijing was responding to the publication by German magazine Der Spiegel of new documents purportedly from NSA leaker Edward Snowden.

The ministry's spokesperson Hong Lei told reporters Monday, that he wondered if his country's accusers could produce any evidence to support their claims and said the accusations were "groundless" [FMPRC].

"Cyber attacks are hard to trace back and are usually committed across borders. This complexity means that it is extremely difficult to identify the source of the attacks," Hong said.

According to one document published by Der Spiegel, China stole "many terabytes of data" related to the United States F-35 fighter jet, including detailed engine schematics and radar design [CNN].

No comment from US

Whilst it was hardly unusual for China to refute allegations that it hacked US military computers to gain access to classified data, the US would neither confirm nor deny the allegations.

A Pentagon spokesman Army Col. Steve Warren declined on Tuesday [20/01/2015] to discuss whether the Chinese had been able to obtain US military technology secrets.

"We never talk about cyber-intrusions and we don't comment on leaked information," he said [Washington Times].

China's latest statements on the Snowden leaks are a U-turn on previous communiques. Edward Snowden had become a cause célèbre in China, particularly for exposing the widespread NSA. spying program, Prism, in 2013.

Praised by state media as "a bright idealistic young man", Snowden offered China the opportunity, enthusiastically seized upon, to expose what it saw as American hypocrisy over cyberespionage [Xinhua].

Indeed many Chinese officials had used the Snowden revelations as a defensive retort when American officials pressed China to end state-sponsored hacking.

But Beijing has not been so quick to embrace the latest batch of leaked NSA materials [NYT]. In fact there is scant mention of Edward Snowden or the F-35 fighter jet in Chinese state media at all.

Previous allegations

It is not the first time China has been accused of stealing US stealth jet technology.

In 2011 experts claimed China had stolen stealth fighter technology by smuggling parts of a downed F117 Nighthawk out of Serbia during the Balkans War [tvnewswatch: China stole stealth fighter technology]

The United States Air Force retired the F-117 on 22 April 2008, primarily due to the fielding of the F-22 Raptor and the F-35 Lightning II.

But there are fears amongst some military personnel  that China's new Shenyang J-31 stealth fighter, that made its debut at the Zhuhai international airshow in December last year, could eventually become more than a match for American stealth fighters in battle [USNI].

The J-31 is China's latest stealth fighter and replaces the J-20 which itself was believed to have incorporated stolen US technology [Guardian / tvnewswatch: Chinas stealth fighter takes to air].

Growing military spend

As well as stealing technology, China is ploughing millions of dollars into its military year on year [tvnewswatch: China increase military to "win local wars"].

Whilst accusing the US of "warmongering" and interfering in the territorial disputes in the South China Sea, China could also be criticised for its own aggressive stance in the region [tvnewswatch: China plays with fire as year of dragon looms]

Indeed the balance of military spending was by February 2014 tipping towards China [BBC].

Figures published by the IISS last year indicated that whilst the United States still topped the list with a military spend of $600 billion in 2013, China ranked second with a spending budget of some $112 billion.

However given the opaque nature of Chinese financial matters, there are complex debates about how far Beijing's figures encompass all of its defence-related spending. Indeed China's real military budget could be much higher than generally agreed.

tvnewswatch, London, UK

Friday, January 16, 2015

UK's Beagle 2 found on Mars

The missing Mars robot Beagle 2 has been found on the surface of Mars and is apparently intact. The discovery was made with the aid of new high-resolution images taken from orbit which have identified its landing location.

The UK-led probe had tried to make a soft touchdown on the surface of Mars on Christmas Day 2003, using parachutes and airbags. However, contact was lost with the probe and it was assumed it had either burned up in the atmosphere or been destroyed in a high-velocity impact. There were even some fanciful theories that Martian's had destroyed the probe [Anandtech forum]. 

The new pictures, acquired by NASA's Mars Reconnaissance Orbiter, appear to contradict all such theories however. Nonetheless, Professor Mark Sims, Beagle's mission manager from Leicester University said the real cause was still open to speculation. "The failure cause is pure speculation, but it could have been, and probably was, down to sheer bad luck - a heavy bounce perhaps distorting the structure as clearances on solar panel deployment weren't big; or a punctured and slowly leaking airbag not separating sufficiently from the lander, causing a hang-up in deployment," he told BBC News.

The discovery of Beagle 2 comes less than a year after the death of the probe's principal investigator, Colin Pillinger and just days after The Royal Society scientific institution announced an award in commemoration of the Professor.

More reports: NASA / HIRISE / Sky News / Telegraph / Daily Mail / Video - NASA / JPL

tvnewswatch, London, UK


Belgium terror raids leaves two dead & 15 arrested

Two jihadists have been shot dead during a raid in Belgium which authorities say was part of a major sweep across the country to thwart an imminent plan to launch terror attacks in the country.

Cross-border arrests

In a press conference on Friday morning police said that thirteen suspects had been arrested in Belgium, while a further two were arrested in France.

Authorities in Belgium said the planned attacks were imminent and that four AK-47s, a handgun, munitions and explosives, as well as police uniforms and a large amount of money, were seized during the raids

According to spokesman Eric Van Der Sypt, the terrorists had "the intention to kill several policemen in the street and at police commissariats [police stations]."

No link to Paris attacks

The raids came a little over a week after terrorists attacked the French satirical magazine Charlie Hebdo. A total of 17 people were killed in those attacks including three police officers. The terrorists involved were later cornered and shot dead after a two day hunt.

No link had been established with last week's attacks in Paris, Van Der Sypt said, adding that Belgium would seek the extradition of the two suspects arrested in France.

Ongoing threat

The latest developments have raised concerns about another possible terror attack in Europe. Belgian authorities said the raids Thursday, in which two suspects were killed, were part of an operation investigating a cell that included people coming back from Syria and that was about to carry out major terrorist attacks in Belgium.

One European official told CNN's terrorism analyst Paul Cruickshank that investigators were working around the clock to learn about the potential attack plans of the returned ISIS fighters.

"This threat is not just about Belgium ... it's also other European countries as well," Cruickshank said.

Cyberattacks

As well as the threat of violence there has been an upsurge in cyberattacks. France has reportedly seen an unprecedented number of such attacks since the Charlie Hebdo terror attacks. More than 19,000 websites have experienced problems according to reports mostly relatively minor denial-of-service attacks [Sky News / CBS]

Meanwhile French police have arrested at least twelve suspects in connection with the 7th January terror attacks [BBC].

The attacks come as the UK prime minister and US president Barack Obama met to discuss measures to boost cyber security [Reuters / Guardian]

More reports: BBC /  Sky News / CNN / Independent

tvnewswatch, London, UK

Thursday, January 08, 2015

Fear of terrorism prompts wave of censorship

Wednesday's attack on journalists, writers and cartoonists in a Paris office by terrorists purporting to be affiliated to Al Qaeda has shocked much of the world.

Attack on freedom

The attack on what many see as a right to free expression, freedom and free speech has also rallied a call, prompting thousands to come onto the streets in protest against the Islamic extremists.

One prominent symbol of defiance was the phrase "Je suis Charlie" which began to circulate on social media soon after the attacks which left 12 dead and 11 others injured.

The phrase first began trending on Twitter in response to the terrorists exclamation that they had "killed Charlie Hebdo" as they left the scene.

The response from ordinary citizens and others was "Non". Charlie Hebdo and the spirit of freedom, freedom of expression and free speech had not been killed. Charlie Hebdo was still alive, alive in the minds of those that proclaimed, "Je suis Charlie".

French media in particular took a similar line. For example, Liberation, a centre left paper, went to press with a black front page emblazoned only with the words "Nous sommes tous Charlie" - "We are all Charlie".

Self censorship

But while there was indeed strong sympathy and a solidarity expressed, worldwide, for those murdered as they sat in their office, few made the bold step of reproducing the cartoons which prompted the attacks.

The fear of reprisal attacks has prompted most papers and online around the globe to refrain from even showing partial clips of Charlie Hebdo cartoons.

Indeed we're not all Charlie as so many have claimed. Few of us, and particularly the media, are that good, and even fewer are that brave. In fact many media outlets have yielded to the terrorist demands that insist open discussion, criticism and the lampooning of Mohammed and Islam be off limits.

The Associated Press has already begun the process of deleting all previously published Mohammed images [Daily Beast].

Criticism of Charlie Hebdo

Some editorials, rather than standing in solidarity with the likes of Charlie Hebdo have in fact called their decisions "stupid". In a response to the terror attack the Financial Times' Tony Barber wrote "common sense would be useful at publications such as Charlie Hebdo, and Denmark's Jyllands-Posten, which purport to strike a blow for freedom when they provoke Muslims, but are actually just being stupid." [Reason].

Edits were later made to the piece, dropping the 'stupid' reference. Nonetheless is clear that many so called serious papers see Charlie Hebdo and other similar publications as infantile, school-boyish comics which have acted irresponsibly and have wrought what they sowed.

The "Je suis Charlie" proclamations were an admirable sentiment, resonant with the classic post-9/11 Le Monde cover "Nous sommes tous Americains." But it was also totally inaccurate, argued Matt Welch on the Hit and Run blog posted on Reason.com.

"Do you really wanna be Charlie Hebdo? Then get on out there, live and speak bravely. And God help you."

Indeed, it is just such fear that has prevented some papers from reproducing the covers of Charlie Hebdo in their coverage of the story.

Nearly every British paper has stopped short of printing the cartoons even to the extent of pixelating photographs of the offending magazine if shown in a picture of Charlie Hebdo staff. Others have instead opted for tightly cropping pictures [Daily Beast / Breitbart].

Broadcast media

It's not just the print media. Broadcast media have also veered away from showing the Charlie Hebdo front covers. CNN was somewhat vague concerning the reason behind its censoring of the images but released a statement saying, "As this distressing story continues to evolve we are actively discussing the best way of addressing the key issues and images across all of our platforms. Those conversations will continue throughout the day and beyond as the story develops." [Variety]

It wasn't just CNN. Despite hours of blanket coverage of the attack on Charlie Hebdo offices, there was barely a glimpse of the offending magazine on the BBC News channel, Sky News or other news channels [Mediaite / Slate / Politico / Haaretz].

There were some who made the brave decision however. The French paper L'Echo ran with a black front page with the central headline "Tous des Charlie" [All Charlie] surrounded by a border made up of Charlie Hebdo front pages, more than half featuring the controversial depiction of Mohammed.

The German publication the Berlin BZ went further covering both its front and back pages with 33 Charlie Hebdo cartoons alongside the headline Vive la liberté [Long live freedom].

Some online publications ran with a retrospective of some of Charlie Hebdo's notable front pages. Amongst them were Time, Bloomberg and Mashable.

Graphic images

Whilst news media were concerned over the publication satirical cartoons, many were not perturbed in reproducing graphic images of a French policeman being shot dead by Islamic terrorists on the streets of Paris.

The images grabbed from a video and posted to YouTube showed the armed terrorists shoot the wounded police officer as he lay on the ground before they calmly made their way to a vehicle and drove off.

Papers around the globe published the picture of the gunman shooting the policeman. Some pixelated the face of the officer, but others showed the photograph uncensored.

The irony of the killing was that the policeman was himself a Muslim, named by authorities as 42-year-old Ahmed Merabet.

Charlie Hebdo's remaining editorial staff say they will publish as normal next week in defiance of the terror threats and murder of 12 of its employees. But despite the anger and rhetoric expressed by much of the Western media, it seems fear and terrorist threats has dictated editorial decisions elsewhere.

tvnewswatch, London, UK

Wednesday, January 07, 2015

Barbarism in Paris leaves 12 dead at Charlie Hebdo office

France has been rocked by a terror attack on the offices of the satirical magazine Charlie Hebdo which has left at least 12 dead and dozens of others injured, many seriously.

Coordinated attack

The story broke shortly after 11:00 GMT, less than an hour after the "carefully coordinated attack" began.

Reports indicated that three masked men stormed the headquarters of the French satirical magazine Charlie Hebdo in Rue Nicolas Appert in Paris at about 11:00 CET [GMT +1]. Witnesses said the gunmen entered the building and began shooting with automatic weapons.

The attackers were said to have shouted Allahu Akbah [God is Great] and "Nous avons venger le prophète Mohammed" [We have avenged the prophet Mohammed] whilst slaughtering staff who were attending an editorial meeting.

The next edition was believed to have been a special edition focused on Sharia law and staff were said to have been discussing the details when the gunmen burst in, calling staff by name before shooting them.

Police killed

As the attackers left the building two police officers were shot. One video posted to YouTube showed one gunman shooting an injured policeman lying on the ground at point blank range with an AK47 leaving the officer dead.

The video then showed two of the gunmen calmly making their way to their vehicle, a black Citroen DS, and driving off. One of the attackers could be seen picking up a training show which fell from the car before getting in and it is believed the perpetrators later changed into casual clothing before dumping the vehicle.

Soon after the attack eyewitness accounts emerged. One Charlie Hebdu employee said she had let two gunmen in as she was exiting the building to pick up her daughter from nursery school. They claimed they were from Al Qaeda before they shot at her colleagues, she said.

Targeted killings

Charlie Hebdo cartoonist Corinne "Coco" Rey was quoted by French newspaper L'Humanite as saying: "I had gone to collect my daughter from day care and as I arrived in front of the door of the paper's building two hooded and armed men threatened us. They wanted to go inside, to go upstairs. I entered the code. They fired on Wolinski, Cabu ... it lasted five minutes ... I sheltered under a desk... They spoke perfect French... claimed to be from Al Qaeda." [Daily Mail]

Soon after the attack French President Francois Hollande attended the scene and spoke to journalists. Hollande said the security level in Paris had been raised after the attack and described it "as an act of extreme barbarism".

Confirmed dead

Several well known French cartoonists were confirmed killed in the gun attack. Amongst them were Jean Cabut (13 January 1938 – 7 January 2015), better known as Cabu, a French comic strip artist and caricaturist. Stéphane Charbonnier (21 August 1967 – 7 January 2015), known as Charb, a French caricaturist and journalist, and was also declared dead as was Georges Wolinski (28 June 1934 – 7 January 2015) another cartoonist and comic book creator. Fifty-six-year-old French caricaturist Bernard Verlhac, who used the pseudonym Tignous, was also killed along with another colleague economist, writer and journalist Bernard Maris, who was aged 68.

Of the twelve confirmed dead two policemen were also killed including one from the Service de la protection [SDLP], a unit within the French National Police which is responsible for the protection of French and foreign dignitaries and the provision of technical security support.

Controversial publication

According to reports there had been a continued police presence outside the offices of Charlie Hebdo following continued threats against staff at the magazine and a firebomb attack in 2011.

The magazine had courted much controversy over the years, particularly with religious groups which it often lampooned and satirized. Portrayals of the prophet Mohammed had drawn particular ire and criticism from Islamic groups and there had been a number of threats made by terror organisations.

Investigation

The attackers' car was later found in northern suburbs of Paris near the Port de Pantin Metro station, a less than 20 minute journey by car from the Charlie Hebdo offices in the Boulevard Richard Lenoir. More than 3,000 police were drafted in to hunt down the men but the task may prove to be impossible.

This was arguably the worst terror attack France has ever known, and the sheer barbarism of the attack will have shocked the country to its core. Whilst there were signs that Islamic extremism was growing especially given recent attacks on police and shoppers over Christmas, the nature of the Paris attack may have grave repercussions.

The reality of the events has been even more shocking given the videos and pictures posted on social media. One video posted on YouTube showed one injured officer shot dead as he lay injured on the ground.

Condemnation

Whilst Muslim leaders condemned the attacks, there may well be a backlash against the Muslim population. One French imam labelled those that died as "martyrs for liberty" while French President called the attack on both France, liberty and freedom of speech.

World leaders also stood out in condemnation. The British Prime Minister David Cameron added his voice, saying, "The murders in Paris are sickening."

"We stand with the French people in the fight against terror and defending the freedom of the press."

In the US President Barack Obama condemned the "horrific shooting". In a written statement he said, "France is America's oldest ally, and has stood shoulder to shoulder with the United States in the fight against terrorists who threaten our shared security and the world."

"Time and again, the French people have stood up for the universal values that generations of our people have defended." the President added.

Later US Secretary of State John Kerry gave an address in both English and French offering further solidarity and condolences.

"Free expression and a free press are core values. They are universal principles that can be attacked, but never eradicated," Kerry said. "Today's murders are part of a large confrontation...between civilisation itself, and those opposed to the civilised world."

Charlie is not dead

However, life will not be quite the same in France which has experienced a big wake up call. As far as the future for Charlie Hebdo is concerned, it may well continue. The terrorists ran from the scene triumphantly shouting they had killed Charlie Hebdo. But in defiance the phrase "Je Suis Charlie" has trended across social networks. And late Wednesday the Charlie Hebdo website was itself back online after reportedly being down following the attack in Paris. It showed a single image "Je Suis Charlie".



Wikipedia / BBC / Sky News / CNN / France24 / Daily Mail / WSJ

French media: Le Monde / Le Figaro / Liberation / Le Parisien / Paris Match

tvnewswatch, London, UK

Wednesday, December 31, 2014

China in 2014 - Repression, protests, terrorism & purges

2014 saw President Xi Jinping forcefully drive China towards being an economic and geopolitical superpower. However, Xi has also brought with him a new authoritarianism, crushing further human rights in the country [tvnewswatch]. 

2014 was marred by several terror attacks. In March, a group of knife-wielding men attacked commuters at Kunming railway station, killing 31 people and wounding 141 [tvnewswatch]. More terror attacks followed throughout the year including an attack on an Urumqi market in May which left 31 dead [Wikipedia / tvnewswatch]. It was in essence the beginning of China's own War on Terror [tvnewswatch]. The attacks prompted an increased security response especially in the capital Beijing [tvnewswatch].

May saw the FBI indict five Chinese military personnel for computer hacking [tvnewswatch].

Security tightened in the run up to the 25th anniversary of the Tiananmen massacre [tvnewswatch]. 

In July, China finally confirmed the widely-anticipated news that former security chief Zhou Yongkang was being investigated for "serious disciplinary violations". He was later arrested and expelled from the Communist Party [BBC]. August saw China tightening policies over the use of foreign tech, banning government departments from using Windows 8 and foreign anti-virus software [tvnewswatch]. There was increased censorship throughout 2014 which culminated in almost total block on Google services [tvnewswatch]. 2014 was also a year of protest with weeks of demonstrations in Hong Kong calling for universal suffrage [tvnewswatch]. The protests eventually dwindled with no clear winners, though Beijing was certainly rattled [tvnewswatch].

[Other reports: BBC / NPR / Guardian / CNN]

tvnewswatch, London, UK

China blocks Gmail, breaks WTO rules

Gmail became almost completely inaccessible within China over Christmas with blocks apparently being placed on mobile apps in addition to the blocks that were already in place on the web version of Google's email service. 

The blocking of foreign Internet services is nothing new in China which has often clamped down on services it deems to be a threat to its national security or a bad influence on society. But the downing of the world's most popular email service has created a stir and raised concerns in many quarters.

Previous blocks

YouTube was blocked in early 2009 after a video purporting to show Chinese police beating Tibetan monks was posted on the video-hosting website. Twitter was blocked later in the same year and other social networks including Facebook have also been closed off to Chinese Internet users.

Google has had a particularly hard time with not only its video-hosting website being blocked but also many of its other products falling foul of the censors. Blogger has been inaccessible for nearly six years while Google Maps, Google Drive [formerly Docs] and Google Search have been hit intermittently over the past 5 years.

The problems intensified in 2010 when Google moved its search engine to Hong Kong after a spat with Chinese authorities concerning censorship and an attempted hack on its systems.

In the past year almost all of Google's services have become inaccessible, although Gmail has mostly been left alone. However in the past few months web users have found Gmail difficult to access. Those using apps on smartphones and tablets seemed unaffected.

Christmas shutdown

But all that changed over the festive period when virtually all access to Gmail became impossible.

Google's Transparency Report, which shows real-time traffic to Google services, displayed a sharp dropoff in traffic to Gmail from China on Friday 26th December. And according to Google, there were no problems in its system. "We've checked and there's nothing wrong on our end," a Singapore-based spokesman for Google said in an email [Guardian].

Denials

Meanwhile China's Foreign Ministry denied any involvement. Spokeswoman Hua Chunying said she did not know anything about Gmail being blocked, adding the government was committed to providing a good business environment for foreign investors.

"China has consistently had a welcoming and supportive attitude towards foreign investors doing legitimate business here," she said. "We will, as always, provide an open, transparent and good environment for foreign companies in China." [Reuters]

In a wordy OpEd published in the state run Global Times, there was a broad sense of denial that China was involved in blocking Gmail whilst criticising Western media for pointing a finger at Chinese authorities. Such blame was far too simplistic, the Global Times insisted.

The article insinuated that Google itself might be responsible for the disruption. However, whilst not admitting to China blocking the service, the Global Times said that should the service be censored then "users need to accept the reality of Gmail being suspended in China". [Global Times]

Muscle flexing

There are fears that China is becoming more aggressive as its economy grows. Due to its growing importance in the world economy, few countries or companies are willing to openly criticise China.

"I think the government is just trying to further eliminate Google's presence in China and even weaken its market overseas," said a member of GreatFire.org, a China-based freedom of speech advocacy group. "Imagine if Gmail users might not get through to Chinese clients. Many people outside China might be forced to switch away from Gmail."

Breaking WTO rules

Such a prospect raises many concerns. The so-called Great Firewall now blocks more than 18,000 websites operated across the planet, and is patrolled by tens of thousands of cyber-sentries, according to scholars in the United States and Europe who closely track Beijing's Internet security structures [The Diplomat].

These same experts also assert that many of China's digital barricades violate World Trade Organization rules, and believe that the US and the EU should challenge Beijing before the WTO's dispute resolution council.

When it comes to trade, China has walked carefully, and at every turn attempted to pave the way with its own interests in mind. In 2001 China joined the World Trade Organization, a body that intends to supervise and liberalize international trade. With its entry into the WTO China spoke of a "win-win" and "all-win" situation for China as well as for the rest of the world [WTO]. 

However, China had already spoken of its intention of reshaping the organisation it wanted to join. Indeed at one particularly contentious point in its negotiations to enter the WTO, the Chinese ambassador reportedly thundered, "We know we have to play the game your way now, but in ten years we will set the rules!" [IIE]

It's now more than a decade since that boastful statement, and China is now beginning to make good on its threat.

The walling off of foreign Internet services in favour of its own home-grown, albeit self-censored platforms contravenes WTO principles on free trade and open market access, says Aynne Kokas, an expert on Chinese Internet policies at Rice University in Texas.

Indeed, while China prevents its 600 million Internet users from joining the global Facebook generation its own rising powers on the Web are not only free to operate across the US, but also have raised more than $40 billion on US stock exchanges [The Diplomat].

The WTO and its member states could bring China to task on such matters. However while stakes are high should it be given an ultimatum, the likelihood seems somewhat remote.

Last straw

The block on Gmail could prove to be the last straw and may prompt calls for representations be made to the Chinese government, despite their denials of blocking the service.

The outcry over the latest blockage was swift and angry with business travellers complaining they would no longer be able to access email while in China without jumping through hoops. Their Chinese counterparts have also complained that it will now be more difficult to conduct business internationally [CNN].

For US and European companies hoping to do business in the world's second largest economy, Beijing's approach presents a series of tough choices.

Companies that resist Beijing's censorship, as Google has done, are often punished as a result. Of major US social media platforms, only LinkedIn has been allowed to operate in China, and only after it agreed to block content [CNN / BBC / Guardian / Daily Mail / FTStraits Times].

Gradual restoration of Gmail

On Tuesday there were signs that the block on the world's largest Internet service was being lifted. Users of Gmail via POP and IMAP servers, who had been frustrated for days trying to send and receive email, suddenly saw their inboxes full again, though some were still reporting delays in receiving emails and others said that their service had not returned [FT].  

Whilst the recent Google block may have been a flash in the pan, it is a worrisome sign that networks outside the West cannot be relied upon. Russia is also flexing its muscles and has recently passed a law which forces data about its citizens to be held on local servers. The move has already prompted Google to pull its engineers out of the country and stirred fears of a wider exodus of engineering talent.

Disclosures of widespread Internet surveillance by the National Security Agency has not helped matters. Moreover many countries cite the revelations concerning the NSA, made public by Edward Snowden, as reason to  justify blocks to the free flow of information online. It has also weakened US calls for more liberal policies. "We have lost a lot of moral authority," says Milton Mueller, a professor of information studies at Syracuse University.

Nonetheless, governments and companies in the West must stand up to the growing bullying and protectionism displayed by the likes of China and Russia. Albert Einstein once said, "The world is a dangerous place to live; not because of the people who are evil, but because of the people who don't do anything about it."

Should the West continue to kowtow to China and others whilst they ride roughshod over WTO rules and other international norms, the situation will only worsen. Indeed in years to come the West may find itself in a position where it has no leverage or influence.

Shaping the Internet

China, in particular, has already put the concept of Internet sovereignty on the table. The proposal refers to the idea that a country has the right to control Internet activity within its own borders, and it is what China refers to as a natural extension of a nation-state's authority to handle its own domestic and foreign affairs [people.com.cn].

Lu Wei, the head of the State Internet Information Office and the director of a powerful cybersecurity strategy group comprised of China's top leaders, has been actively promoting China's plan [Huffington Post].

It is a project that some have speculated China has been planning for some time. Indeed, Internet sovereignty may be just the beginning. There are those who suspect China is planning to remap the Internet in its own image [Does China Hope to Remap the Internet in its Own Image? / Journal of International Media & Entertainment Law PDF]  

Wikipedia: Internet censorship in China / Censorship in ChinaWebsites blocked in China

See also: tvnewswatch: tit-for-tat builds in China trade wars / tvnewswatch: When Google departs China / tvnewswatch: Risks of tech-business in China / tvnewswatch: Trade wars and Internet blocks


tvnewswatch, London, UK

Tuesday, December 23, 2014

A week of terror before Christmas

It's supposed to be the season of goodwill to all mankind. But instead of love and understanding the week prior to Christmas 2014 was marred with terror attacks and threats.

Terror at the coffee shop

The week of terror began in Sydney, Australia when a lone gunman, Man Haron Monis, took nine customers and eight employees hostage at the Lindt chocolate café in the heart of the central business district.

Early on, hostages were seen holding a jihadist black flag up against the window of the café, with the Islamic shahādah creed written on it in Arabic. Initially some media mistook it for the flag used by the Islamic State of Iraq and the Levant [ISIL] which the gunman later demanded be brought to him during the siege. He had also demanded to talk to the Australian prime minister but he was conceded no demands and the siege came to a violent end after nearly 18 hours leaving the hostage taker and two others dead.

The crisis began at 09:44 local time on Monday 15th December [22:44 UTC, 14th December] but at around 02:00 on the 16th December, a "very loud bang" was heard and between five and seven additional hostages fled from the building prompting police and SWAT to storm the shop. Monis was declared killed in the ensuing gunfight and two of the hostages, Katrina Dawson, a 38-year-old barrister, and 34-year-old Tori Johnson, the manager of the café, were also killed. Both were declared as heroes by the Australian media for their selfless actions which helped bring the siege to an end [Independent]. Tori Johnson was reportedly shot when trying to wrestle a gun from Sydney hostage-taker Monis as he appeared to fall asleep. Meanwhile Katrina Dawson was killed after trying to defend her pregnant colleague, Julie Taylor, according to reports.

The attack left Australia in shock. It had come only weeks after Australia had raised its alert level to "High" following a number of arrests related to a possible terror plot in September.

Authorities said that the suspects were planning random executions. Police said at the time that they had uncovered information that suggested Islamic extremists were plotting to capture members of the public, drape them in the Islamic State flag and behead them.

The "demonstration killings" would have been filmed and then posted on the Internet, according to Australian media reports. The raids, involving at least 800 heavily-armed officers, led to 15 arrests. [See also: tvnewswatch: ISIL censored videos still invoke fear / BBC / Sky News / CNN / ABC / Mashable ]

Monis did not get as far as executing his hostages, though he had earlier forced several of them to read statements which he then posted on the Internet. Despite only two deaths and a few slight injuries the attack left Australia in shock, compounded further by the fact it was the country's first major terror attack [Wikipedia].

School massacre

Barely had the dust settled in Sydney than terrorists launched a horrific attack on a school in Pakistan. Seven members of the Tehrik-i-Taliban Pakistan [TTP] entered the school and opened fire on school staff and children. Of the 145 people killed, 132 were schoolchildren, ranging between eight and eighteen years of age.

The attack was widely condemned around the world by religious leaders and politicians alike. The attack also galvanised many people in Pakistan who called on their government to prevent further atrocities [Wikipedia].

Cyber attacks

At the end of the week came further cyber attacks on Sony Pictures along with threats of 9/11 style attacks on cinemas should they go ahead with the release of the satirical film lambasting the North Korean dictator Kim Jong Un.

The Interview was pulled from cinemas prompting much criticism of Sony for giving into terrorism. However within days Sony declared they would not abandon the release and would look at different ways of distribution [BBC / Wikipedia].

Meanwhile President Barack Obama hinted at placing North Korea on the state terror list in response to the hacking attacks on Sony which have widely been blamed on the rogue state.

The war of words continued over the weekend with North Korea denying it was involved and calling for the US to take part in what it called a joint investigation into the cyberattacks.

Threats & responses

Following harsh criticism from the US president, North Korea upped its rhetoric warning of serious consequences should the US continue with its threats.

By late Sunday North Korea issued a new threat against the United States and accused President Barack Obama of "recklessly" spreading rumours that Pyongyang was behind last month's devastating cyberattack on Sony Pictures.

The long statement from the powerful National Defense Commission warned of strikes against the White House, Pentagon and "the whole US mainland, that cesspool of terrorism." [BBC / Guardian / Fox / Wikipedia]

Such rhetoric is nothing new from the small dictatorship. And its threats were largely ignored given the country's relatively small militaristic capability. While North Korea does possess nuclear weapons and a large standing army, it is mostly a threat to the local area rather than the US as a whole.

Meanwhile the US has few options itself. Obama's declaration that North Korea might be added to the list of states that support terrorism might prove difficult. Iran, Sudan, Syria and Cuba are currently  on the list. However a main criteria is that the State Department must determine that a country has repeatedly supported acts of international terrorism, a definition that traditionally has referred to violent, physical attacks rather than hacking.

Other options, which include sanctions targeting high-level North Korean officials and retaliatory cyberattacks, are limited. The US already has trade penalties in place and there is no appetite for military action especially in a region which is already very tense with ongoing disputes between China and its neighbours as well as continuing tensions between North and South Korea.

China for its part condemned the cyberattacks but sided with its North Korean ally saying there was no proof its neighbour was to blame [Reuters].

French lone wolf attacks

The attacks continued until only days before Christmas. In France President urged the public to keep calm after an apparent terror attack in which a man yelling "God is great" in Arabic drove into a crowd of shoppers in Dijon injuring 11, two seriously [BBC]. 

It followed another attack in which a man attacked police officers with a large knife. Police in central France shot dead the man who wielded the knife while shouting "God is great!" [BBC]

On Monday police were investigating yet another incident in which a van was driven into pedestrians at a Christmas market in Nantes. Ten people were reported to have been injured, five seriously [BBC / Daily Mail].

The same day a garbage truck "drove at speed" through shoppers in central Glasgow in Scotland, killing 6 and injuring several others. The police said the cause of the crash was not immediately clear, but said it was not a terrorism-related incident, and "nothing more sinister" than a fatal traffic accident. However, given the fact that it bore a striking similarity to the incidents in France there was some initial speculation the crash might have been a deliberate attack [Daily Mail].

North Korea hit by retaliatory outages

Meanwhile, North Korea found itself under cyberattack with its Internet services brought down for several hours on Monday. Officials in Washington would not comment on any US involvement in the outages, however the White House had earlier said it would launch a proportional response to a cyberattack on Sony Pictures [BBC].

The outage came within hours of another cyberattack which was also blamed on North Korea. In the latest breach, designs and manuals of a South Korean nuclear plant were leaked, although the reactors' innermost networks were not compromised.

Calls for calm

After the spate of recent attacks politicians have called on the general public to remain calm. French Prime Minister Manuel Valls said on Tuesday that security would be stepped up and asked that people not "give into fear" [SMH].

However, it will be difficult to take such advice especially given the the seriousness of the recent attacks. The ongoing threat seemed clear as Australian Prime Minister Tony Abbott said there had been a "heightened level of terror chatter" since the siege at a Sydney cafe last week, hardly the pre-message one wants to hear [BBC].

tvnewswatch, London, UK

Wednesday, December 17, 2014

UK: Cost of living falls as fuel & food prices drop

Christmas 2014 is proving to be a much cheaper for many consumers as lower fuel prices has also brought down the price of other commodities including food and other goods.

Cut price fuel

Supermarkets have led the way in cutting the cost of petrol at the pumps. In September, Asda's petrol price was as high as 126.7p a litre, with diesel at 129.7p a litre. However recent reductions have seen Asda customers paying no more than 110.7p a litre for petrol, with the company's diesel costing 117.7p a litre.

Other outlets have also slashed prices. In January was diesel was priced between 134.9p and 142.9p a litre at many forecourts. However, there are few outlets charging more than 130.9p a litre with petrol prices significantly cheaper.

According to the RAC the average price for a litre of petrol was currently 116.9p, nearly 14p a litre cheaper than at the start of the year. Meanwhile, diesel was nearly 16p cheaper at 122.33p a litre now, compared to an average price of 138.24p in January.

£1 a litre predicted

But prices could fall even further with some suggesting that petrol may drop to only a pound per litre.

The RAC has said that petrol could dip below £1 a litre in the new year, which would take prices at the pumps to their lowest level since the end of May 2009. Not everyone is so optimistic. AA president Edmund King was more cautious saying crude prices would need to drop significantly to bring forecourt prices so low. "With duty on each litre of fuel at 57.95p and VAT around 20p, plus the pound at its lowest level against the dollar for three months, it would take another almighty drop in crude prices to reach £1 a litre at the pumps."

"Drivers would love to see £1 per litre but a white Christmas might be a better bet at the moment. However, for canny drivers there are still variations in pump prices of up to 5p litre in the same town. So shop around and make the most of the lower prices."

The Petrol Retailers' Association have also dashed such hopes with chairman Brian Madderson saying the notion of £1 a litre "stretching imagination too much."

"Oil would have to fall to $25 a barrel for us to get to £1 a litre, when even the Saudis would wince. I would be very surprised if we saw it fall below $50 a barrel, even in the best case," Madderson added.

Nonetheless, there have been dramatic falls in the price of crude over the past few months. Oil has fallen by more than 46% from a high of $115.06 a barrel in June. The slide is a result of a plentiful supply of oil from the US, where shale oil produced by fracking has transformed output, and from the mainly Middle East Opec group of oil producers, led by Saudi Arabia, which have refused to reduce production to push up the price.

Motorists have certainly seen the effect of lower fuel prices. "Filling up the car is dramatically cheaper than a few months ago," one driver filling up his Jeep at a Texaco service station said. "Back in June it cost me over £70 for full tank but now it's closer to £50."

Effects on inflation, prices

The falling price of petrol is has had a knock on effect in other areas. Economists believe the lower oil prices will contribute to a fall in inflation.

Tumbling oil prices, cheaper petrol and falling food costs has already pushed inflation to its lowest level in more than a decade in November.

In a welcome boost in the run up to Christmas, shoppers are finding extra benefits of falling oil prices. With shipping and manufacturing costs down, so the prices of goods in the shops have fallen.

Indeed some experts suggest that households in Britain could continue to benefit from falling inflation in the coming months, with some predicting that price rises, as measured by the consumer prices index (CPI), could fall to 0.5% next month. This would represent the joint lowest rate of inflation since records began in 1989.

November's figures showed food and non-alcoholic beverages fell by 1.7% on last year, the steepest drop since June 2002. Meanwhile according to figures published by the British Retail Consortium food prices have fallen for the first time in at least eight years, promising lower bills at Christmas and into the New Year for many shoppers.

The drop in prices comes amid fierce competition between all the major supermarkets under pressure from German brands Aldi and Lidl.

The two German supermarkets now command a record 8.6% slice of the supermarket sector. Sales at Aldi soared by 22.3% on last year, while Lidl saw an 18.3% surge. Asda, Morrisons and Sainsbury's have suffered declines though the more upmarket supermarket Waitrose has enjoyed a 6% rise in sales, extending a run of growth dating back to February 2009.

In order to entice customers big supermarkets are bombarding families with money off vouchers for food and fuel in a bid to get them through the doors.

Consumers have also benefitted from a flurry of pre-Christmas sales. Black Friday and Cyber Monday kicked things off in early December but some retailers have continued to slash prices further as the festive season approaches.

There are certainly bargains to be had with technology goods in particular being sold at knock-down prices. For those with surplus cash there isn't a better time to spend.

With unemployment also falling and new data suggesting much of the Eurozone economy growing there will be many having something to celebrate as 2015 approaches.

Not everyone is benefiting from lower oil prices however. Venezuela loses around $700 million for every dollar drop on the price of a barrel of oil. Russia has also lost out too. Russia requires oil to be set at around $110 per barrel just to balance its economy. Sanctions, low oil prices and other factors have severely impacted on Russia over the last year and attempts to support the financial system has resulted in higher interest rates and rising prices.

Reports: Sky News / BBC / Daily Mail / This is Money / Telegraph / This is Money / Scotsman / Daily Mail / NYT

tvnewswatch, London, UK

Saturday, December 13, 2014

New laws are breaking up the Internet

There has been a continuing debate as to whether the spelling of the Internet should have an initial capital letter. Given that in general terms there is only one Internet the argument is surely academic, and ICANN - the body that dishes out web addresses - seems to have the opinion that the Internet is a proper noun.

But there is a gradual erosion of the Internet as more and more countries apply restrictions which are effectively creating many different internets and even intranets.

China, Iran, Cuba and North Korea are often cited when it comes to Internet restrictions. But there are a growing number of western democracies that are also imposing restrictions.

"Right to be forgotten"

In the past year Europe has seen dramatic changes to what might be searchable on the web after a so-called "right to be forgotten", ruling imposed by the European Parliament, forced search engines such as Google, Yahoo and Bing to remove links from search results about aggrieved individuals.

The issue arose from the desires of some individuals to "determine the development of his life in an autonomous way, without being perpetually or periodically stigmatized as a consequence of a specific action performed in the past."

However, the law has essentially created a two tier internet where those outside Europe can search for something that is unsearchable within the EU [Wikipedia]

Copyright issues

In the last few months legislators in parts of Europe focused on Google News which they said infringed the copyright of publishers. The search giant eventually decided to stop publishing such snippets in October [WSJ]. But while Google certainly benefits from its news portal, so too do publisher since traffic is often directed to their site from the Google News page.

Indeed Germany's biggest news publisher Axel Springer has since scrapped a move to block Google from running snippets of articles from its newspapers, after finding that traffic to its sites had plunged.

A Google spokesman in Germany praised the turnaround and said, "The decision shows that Google is making a significant contribution to the economic success of news publishers." [Reuters

While German publications made a U-turn in Spain legislators brought in new laws which forced

This week Google will shut down its Spanish News service in response to a new law that obliges anyone to pay publications for displaying even the smallest snippet of an article [BBC].

Spanish publishers angry

Whilst lawmakers may be happy at their victory, Spanish publications may see a sharp decline in web traffic. In fact such a prospect has already prompted Spanish newspapers to beg their government to drop the proposals which come into force in January 2015.

Following Google's announcement that it would shut down its Spanish version of Google News, the Spanish Newspaper Publishers' Association [AEDE] issued a statement saying that Google News was "not just the closure of another service given its dominant market position" but recognised that Google's decision "will undoubtedly have a negative impact on citizens and Spanish businesses".

"Given the dominant position of Google [which in Spain controls almost all of the searches in the market and is an authentic gateway to the Internet], AEDE requires the intervention of Spanish and community authorities, and competition authorities, to effectively protect the rights of citizens and companies". [The Spain Report / TechDirt]

Google maintains that it makes no money directly from its news aggregator which shows no advertising. Where it may make money is through adsense advertisements shown on the news websites to which it directs its users.

"This new legislation requires every Spanish publication to charge services like Google News for showing even the smallest snippet from their publications, whether they want to or not. As Google News itself makes no money [we do not show any advertising on the site] this new approach is simply not sustainable," the tech company said in a statement.

Google may lose out since traffic to Spanish news sites will undoubtedly decline. However, the news websites themselves may also a markedly downward decline in revenue. It could be devastating to such websites as those who pay to advertise directly on the said website withdraw from any commercial deals it may have with publications. After all paying to advertise on a site that gets little traffic would make no financial sense.

The Spanish legal move has been branded a "suicide pact" which "invited Google to pull the trigger" by some web commentators [The Spain Report]. Others have called Google's response has been referred to as a "thermonuclear response", but understandable given the circumstances. Furthermore there are fears the Spanish law could even affect the likes of Facebook and Twitter [The Spain Report].

Russia targets western tech companies

Meanwhile in Russia new laws targeting foreign tech companies looks set to change the way Russians use the web forever.

The new law, which bans companies from storing data about its citizens on servers outside Russia, may see its Internet users effectively banned from using the likes of Google services, Facebook, Skype, Adobe Photoshop and even the buying of airline tickets from foreign carriers.

Google has already responded saying that it plans to move engineers out of its office in Russia. Whilst the firm said it "remains committed" to Google users in the country the move will likely have a dramatic effect on the way the company operates inside Russia.

Should other companies obey the letter of the law it would deprive Russians of the opportunity to use Facebook or even buy plane tickets from foreign airlines through their websites. And whilst tech companies have been vague in their response to the new legislation it is clear the Internet won't be quite the same as other tech firms announced their departure.

Adobe Systems, maker of Photoshop and other popular software, announced that it was closing its Russia office [Vedomosti].

Microsoft has yet to make any announcement on how the new laws may affect its Russian user base, however given that Skype also keeps its users' personal data on servers outside Russia, Russian citizens may also be deprived of the popular Internet telephone service [BBC / Bloomberg / Economic Times / Guardian].

Brave new world

And in another step toward the construction of a Chinese-style Great Firewall, communications providers may soon be required to install filtering equipment.

Whilst VPNs [Virtual Private Networks], Tor networks and other circumvention methods are usually used by people in places like China to avoid Internet censorship and by dissidents wishing to avoid state surveillance.

However such software may become the norm, even in European countries, if such trends as seen in Germany, Spain and Russia continue.

What was once a single unified Internet is fast becoming a string of internets and intranets which are far from free and unified.

tvnewswatch, London, UK

Monday, December 01, 2014

All change for Dartford River Crossing tolls

One of the most congested bottlenecks on the M25 may become a little more free-flowing as it dispenses with physical toll booths in favour of an online payments system.

While the switch-over may not have come so smoothly as traffic was rerouted several miles whilst the toll booths were removed, first indications seemed to show that traffic was far less congested as vehicles crossed the Dartford River Crossing on Monday morning.

The new payment system at the Dartford Crossing came into force at 06:00 GMT, replacing the toll booths on the Kent side of the crossing. The current 27-lane system will be replaced by four express-ways in each direction and lanes to help turn away vehicles unsuitable for the tunnels.

Charging is enforced through the use of an Automatic Number Plate Recognition system which logs vehicle details with those which have paid. It is similar to a system already used to police London's Congestion Charge.

However, while congestion may have decreased, charges have increased overnight with car drivers now being charged £2.50, a hike of 50 pence.

The charge for goods two-axle heavy good vehicles including vans has risen by 50p to £3 whilst multi-axle good vehicles will now be charged £6, a rise of £1.

As an incentive to register with the Dartford River Crossing website, drivers using a pre-paid account will save up to one third. Motorists can also pay at some newsagents or through a dedicated telephone service.

However, those who don't pay are liable to receive a hefty penalty. Anyone not having paid by midnight on the day after making a crossing will receive a penalty charge of £70 which must be paid within 28 days. It's reduced to £35 if paid within 14 days and increased to £105 if unpaid.

There is some concern that foreign drivers will escape being charged, though the Highways Agency says it has plans in place to chase up people in other countries.

There has also been some worries expressed by some motorists who have said they have had difficulty registering on the Dartford Crossing website. Others have said the new system assumed all motorists have Internet access. Indeed, whilst there are other ways to pay the toll, finding information without Internet access is difficult.

The news Dartford Crossing toll changes came into force on the same day the government announced a £15 billion investment in England's road network [BBC / Sky News].

For those using the river crossing payments can be made by one of several methods


Alternatively, motorists can set up a pre-pay account now and receive savings of up to one-third on every crossing made during the charging hours [06:00 – 22:00]  [BBC]

tvnewswatch, London, UK