Microsoft in $6.2bn writedown of Aquantive
Microsoft has written down the value of an online advertising firm it bought five years ago by $6.2bn (£4bn).
Microsoft bought Aquantive for $6.3bn in cash in an attempt to catch rival Google in the race to increase revenues from search-related advertising.
The writedown effectively wipes out the acquisition's value, although there was little impact on Microsoft's shares in after-hours trading on Monday.
The purchase of Aquantive in 2007 was then Microsoft's biggest acquisition.
It has since been eclipsed by the company's $8.5bn purchase of internet phone service Skype last year.
Microsoft said in a statement on Monday that "the acquisition did not accelerate growth to the degree anticipated, contributing to the writedown".
Analysts said the writedown came as no surprise to investors.
"Aquantive didn't work out, but everyone already pretty much knew that," said Colin Gillis at BGP Financial Partners. "Now, they are just mopping up."
The $6.2bn charge is likely to wipe out any profit for the company's fourth quarter. Wall Street was expecting Microsoft to report fourth-quarter net profit of about $5.25bn on 19 July.
In addition to the writedown, Microsoft said its forecast for future growth and profitability at its online services arm - which includes the Bing search engine and MSN internet portal - were "lower than previous estimates".
Europe’s Airbus to Open US Plant
The world's largest aircraft manufacturer, Europe-based Airbus, says it is planning to build its first U.S. manufacturing plant.
Airbus said Monday it intends to open an assembly plant in the southern U.S. city of Mobile, Alabama. The company said it plans to start producing A320 passenger jets by 2015 — a direct challenge to its American rival, Boeing Company.
Airbus, based in Toulouse, France, said it plans to build 40 to 50 airplanes a year at the U.S. factory by 2018. The company said it expects to hire 1,000 workers to build the $88 million jetliners, which are widely used by major airlines.
Last year, Airbus delivered 534 aircraft, compared to 477 for Boeing, the world's second biggest commercial jet manufacturer.
Eurozone Jobless Rate Hits Record as Manufacturing Contracts
Twin reports are showing new economic weakness in the 17-nation euro currency bloc, with the jobless rate reaching a record level and manufacturing activity unchanged at a three-year low.
The European Union said Monday the eurozone's unemployment rate edged up in May to 11.1 percent, the highest rate since the euro was launched in 1999. More than 17 million workers are unemployed, up nearly two million compared to a year ago.
The worst jobless rate in May was recorded in debt-ridden Spain, with nearly one of every four workers unemployed, and more than half the country's young people jobless.
Meanwhile, a key survey by the research firm Markit Economics showed that manufacturing in the eurozone in June remained well below the level that indicates production growth — and at the lowest point since June 2009.
Markit economist Rob Dobson said that as manufacturing has weakened, the labor market has fallen as well.
“The employment numbers – we're also starting to see them come down as well, including in Germany. Indeed, all countries within that survey reported a decline in employment apart from Ireland. So what we're seeing is weakness in the output coming through into the labor market, which is going to be a bad thing for the economy heading forward.”
For months, the eurozone economy has been stagnant, with austerity measures imposed by governments seeking to rein in their deficit spending curtailing growth. In a new tack to spur the region's economy, European leaders last week agreed to a $150 billion package to promote development. They also adopted policies to ease the borrowing costs for Italy and Spain.
Some analysts are predicting that the European Central Bank, in a further attempt to improve the eurozone economy, will cut its key lending rate later this week by a quarter of a percentage point — from 1 percent to three-quarters of a percent.
Meanwhile, central bank official Joerg Asmussen said in Athens that Greek officials need to concentrate their efforts on adhering to the austerity measures they already agreed to, rather than trying to ease the terms of their $168 billion international bailout, the country's second in two years.
“So my point is this: the new government should not lose precious time looking to avoid or loosen the program. It should instead focus on how to maximize the effectiveness of reforms.”
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Burma Frees 20 Political Prisoners in General Amnesty
Burma has freed at least 20 political prisoners as part of a general amnesty the government says is aimed at promoting “national unity.”
The state-run New Light of Myanmar says 46 prisoners were released Tuesday, under an order by President Thein Sein. It also says 34 foreign prisoners were deported.
Activists say among those released was student protester Aye Aung, who was given a 59-year sentence for distributing pamphlets and participating in a 1998 pro-democracy uprising.
Burma has released hundreds of political prisoners – including several prominent dissidents – since a nominally civilian government came to power last year, ending decades of harsh military rule.
Rights groups remain concerned about the hundreds of prisoners of conscience who are still in detention. Khin Ohmar, the coordinator of Burma Partnership, tells VOA she is worried that many less-prominent activists may be forgotten.
“Those more than 400 political prisoners still behind bars, because they are not prominent, that's why they need more attention from the international community, including the United States and the rest of the world and international governments. They must all work together and keep calling on this regime and pressuring them to release these remaining political prisoners without further delay, unconditionally.”
Many Western governments have begun relaxing sanctions against Burma in response to its political and economic reforms. But the unconditional release of all remaining political prisoners remains a key condition for many to fully restore ties with the once-isolated nation.
Pro-democracy leader Aung San Suu Kyi says her National League for Democracy Party has counted at least 330 political prisoners still detained, although many rights groups put the figure much higher.
The government says the remaining dissidents have not been released because authorities are working to determine those who are guilty of committing violent crimes and those who are activists.
In addition to releasing political prisoners, Burma's government has also relaxed media censorship, sought cease-fires with armed rebel groups,and permitted the once-imprisoned Aung San Suu Kyi to successfully run for parliament.
VOA
China to Ban Shark Fin Soup from Official Events
China plans to ban shark fin soup from being served at government banquets in an attempt to protect endangered shark populations and reduce spending on lavish state functions.
The Communist Party-controlled Global Times said Tuesday it would take about three years to remove shark fins from the menus of official banquets and other government events.
The paper says the ban is part of a wider effort to limit government spending on official dinners that often feature the expensive seafood dish popular in many Asian countries.
Environmental groups say over 70 million sharks are killed primarily for their fins each year worldwide, leaving dozens of shark species threatened with near or total extinction.
Chinese state media say over 95 percent of the annual harvest of shark fin is consumed on the Chinese mainland, Hong Kong and Taiwan. The Chinese ban would not affect consumption of shark fin by the general population.
Several countries and local governments around the world have already moved to ban the sale of shark fins, which can sell for as much as $500 per pound.
RAY ALLEN TO VISIT MIAMI THURSDAY
The NBA champion Miami Heat will get to make their sales pitch to Ray Allen.
A person familiar with Allen's plans told The Associated Press that the free-agent shooting guard will visit with Heat officials Thursday. Allen also is scheduled to visit Friday with the Los Angeles Clippers, according to the person who spoke on condition of anonymity because the plans were not announced.
Allen is one of Miami's top offseason targets, so much so that even NBA MVP LeBron James tweeted last week that he hopes to play alongside him next season. For that to happen, Allen would have to take less money than he almost certainly could make elsewhere.
Miami can offer Allen only the mini mid-level exception worth just more than $3 million for next season, or roughly half what the Boston Celtics are willing to pay to keep the NBA's leading 3-point shooter. Still, Allen's willingness to even listen to Heat President Pat Riley suggests that Miami's financial limits may not be a deterrent to a deal.
NBA.com first reported Allen's planned visits Tuesday morning.
The Heat made just under 36 percent of their 3-point attempts this season. Mike Miller (.453) and James Jones (.404) led the Heat in accuracy from beyond the arc, though Miller is sorting out what he will do next season as he deals with back and foot issues.
Allen would figure to be a perfect fit with Miami because the Heat want to surround James, Dwyane Wade and Chris Bosh with shooters who extend defenses and therefore create room around the basket for the ``Big Three'' to attack. That approach worked perfectly for Miami in the playoffs - the Heat were 9-1 when making at least eight 3-pointers in playoff games (7-6 otherwise), and they hit 14 in the finals-clincher over Oklahoma City.
Allen has made at least 100 3-pointers in 15 of his 16 seasons, the lone exception being when he connected on 74 in the shortened 50-game schedule of 1998-99. He's established career-bests for accuracy in each of the past two seasons, first making 44 percent of his 3's in 2010-11, then 45 percent this past year. His 2,718 career 3-pointers are the most in NBA history.
This round of free agency has a much quieter feel for Miami than the summer of 2010. For example, Heat owner Micky Arison tweeted Sunday that he was beginning a trip to Europe - a far different trek from what he, Riley, coach Erik Spoelstra and others embarked on two years ago when they began wooing James and Bosh to join Wade in Miami.
The selling point that summer was ``sacrifice,'' and that hasn't changed.
James, Bosh and Wade all took less money than they could have made elsewhere to allow deals to fall into place for Miami in 2010. Last summer, Shane Battier accepted a deal worth $3 million annually.
That's about all Miami can offer anyone this summer as well. Barring any trades, the biggest chip Riley has to dangle is the mini mid-level.
AP
Assad Regrets Syria Downing of Turkish Jet
A Turkish newspaper has quoted Syrian President Bashar al-Assad saying he regrets that his forces shot down a Turkish military jet last month.
The Cumhuriyet newspaper published comments from Mr. Assad Tuesday in which the leader insisted the jet was flying in Syrian airspace that had been used by Israeli planes three times in the past.
Turkey says the jet entered by mistake and had flown back to international airspace before Syria shot it down on June 22. The paper quoted Mr. Assad saying he would not hesitate to apologize for the attack if the Turkish account were true.
He also downplayed the possibility of the situation between Turkey and Syria escalating, saying it will not turn into “armed conflict.”
Turkey has increased its defenses along the border with Syria, a move the paper quoted Mr. Assad as saying his country will not match.
Also Tuesday, Human Rights Watch issued a new report accusing the Syrian government of torturing and abusing detainees at 27 facilities across the country.
The group says it interviewed detainees who experienced or witnessed prolonged beatings, the use of stress positions and electricity, sexual assault and mock executions. It also says the detainees were kept in overcrowded cells, and denied adequate food and medical attention.
The report lists torture sites in the capital, Damascus, as well as in Homs, Idlib, Aleppo, Daraa and Latakia.
Human Rights Watch says the ill-treatment amounts to crimes against humanity. It urged the United Nations Security Council to refer the situation in Syria to the International Criminal Court.
The Security Council is scheduled to meet Tuesday to discuss recommendations from U.N. Secretary-General Ban Ki-moon on the future of the currently suspended observer mission in Syria.
The head of the mission suspended operations on June 16 due to safety risks to the 300 observers in Syria. The U.N. said attackers targeted the observer team several times with gunfire and bombs.
Mr. Ban said in a statement late Monday that the Syrian people and the region “cannot afford more atrocities, suffering and chaos.” He also welcomed an international plan for a transitional government in Syria and said he hoped an opposition conference in Cairo will contribute to creating a “meaningful transition.”
China Vows Crackdown on Environmental Protesters
Chinese authorities are vowing to inflict what they call “severe punishment” on organizers of a two-day protest who are concerned about the environmental impact of a proposed heavy metal refinery in their town.
Authorities say unrest broke out Monday when several thousand protesters clashed with police outside a government building in the small central city of Shifang. Police responded with tear gas, and pictures circulated online showed police beating protesters. Officials say 13 people were injured.
Shifang police on Tuesday demanded the surrender of those organizing the demonstrations, saying anyone using the Internet or text messages to organize the “illegal protests” should immediately stop their activities.
The Shifang government said Monday it has suspended the construction of the molybdenum and copper refinery, which citizens say would cause heavy amounts of pollution.
Such localized protests are increasingly common in China, where city officials have struggled to balance rapid urban development with rising public anger over environmental threats.
Michael Phelps targets only seven gold medals
Michael Phelps has opted out of the 200m freestyle at the Olympic Games and will instead chase seven gold medals.
The American is expected to concentrate on two butterfly and two individual medley events as well as three relays.
Phelps, the most successful Olympian ever with 14 golds, swam and won eight events in Beijing in 2008.
He had been expected to target eight golds in London, but coach Bob Bowman said: "No-one should be expected to do that twice. Once was enough."
Phelps won the 200m freestyle in Beijing four years ago but has since been beaten over that distance in the last two World Championships.
His 200m freestyle spot in the US team will go to Ricky Berens, who finished third in the 200m freestyle at the trials behind Phelps and Ryan Lochte.
It was a fun week but there are still a lot of things that need to be perfected," said Phelps after the trials.
Phelps, 27, has won a total of 38 world and Olympic gold medals in his career but admitted he struggled for motivation after Beijing 2008.
He has also faced increasing competition from Lochte, who will now be favourite for the 200m freestyle after Phelps's withdrawal.
The Phelps and Lochte rivalry is expected to be one of highlights of the Games, which begin later this month.
"Neither one of us wants to lose," said Phelps.
"When we get in the water we race as hard as we can, whether we're playing cat and mouse by the end, we're going all out.
"They're fun, exciting races and Ryan has proved he's been the best over the past couple of years."
Lochte sounded a warning to Phelps after the trials. "I'm used to racing against him, I've been doing it for eight years now," he said.
"In the past four years, I've gone a lot faster and I know what my body can handle. This meet was just stepping stones for what I really want to do in London."
Phelps finished first in the 200m individual medley final and the 200m freestyle final at the trials, while Lochte beat him in the 400m individual medley final and also won the 200m backstroke final.
Missy Franklin, 17, is set to become the first US woman to swim in seven events at the Games after she won the 200m backstroke in 2:06.12.
"I felt really strong. It really hurts so bad at the end but if it doesn't then you're not doing it right," she said. "I can't believe I have seven events. It's so overwhelming but so exciting at the same time."
Dwain Chambers set for Team GB selection
Dwain Chambers is set to be selected for London 2012 when the athletics squad is named at 1400 BST on Tuesday.
He can compete after the British Olympic Association policy of lifetime bans for drug cheats was overturned.
Chambers won the Olympic trials on 23 June, but did not run in the 100m at the European Athletics Championships.
Asked if Chambers would be picked for London 2012, UK Athletics coach Charles van Commenee told BBC Sport: "It's a likely outcome."
Chambers, 34, was given a two-year ban after testing positive for the designer drug THG in 2003.
He won the 100m trials in Birmingham in 10.25 seconds - seven hundredths of a second outside the 'A' qualification time required. However, he ran 'A' times last summer, which the selectors can take into account. Team GB can name three 100m sprinters for London 2012.
Adam Gemili, 18, is the only confirmed 100m competitor after running the A-standard and finishing in the top two in the UK trials. The final Olympic place is likely to go to James Dasaolu, 24, who has run the 'A' standard this year.
One of the toughest choices facing UK Athletics is which three athletes from five contenders to pick for the women's 800m.
Marilyn Okoro and Emma Jackson have run the 'A' standard this year but finished fifth and seventh at the Olympic trials, won by Scotland's Lynsey Sharp, who also claimed a European silver medal.
Former world and European 800m bronze medallist Jenny Meadows's hopes suffered a setback when she pulled out of the 800m in Helsinki after aggravating an Achilles injury. She says she will appeal if not selected.
Jemma Simpson did compete in Helsinki but finished seventh in the final.
Van Commenee said he was bracing himself for a "heap of appeals" from athletes after Tuesday's announcement.
"The women's 800m is a very difficult one," Van Commenee said. "There may possibly be some back-up places for the relays to debate too. I can't see many other big issues really."