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France To Legalize Snowden Style Whistleblowing

France’s National Assembly is formulating laws to encourage whistleblowing on government and military programs that violate the rule of law, according to reports on Tuesday. The legislation looks to offer protections to whistleblowers in cases where their disclosures expose sensitive state secrets which contain violations of law.

While Democratic and Republican lawmakers have repeatedly emphasized that Snowden and other similar whistleblowers should face harsh punishment, French members of parliament are taking a more enlightened stance. The French National Assembly has created an amendment that will legalize the leakage of information by intelligence employees if they want to expose an abuse of power by their own authorities.

“The Snowden case has demonstrated the need to create conditions so that agents can denounce abuses by the intelligence services,” Jean-Jacques Urvoas, the bill’s author, was quoted as saying by French radio station France Inter.

Urvoas stated the amendment is supposed to provide “legal protection to an agent of the intelligence services who would denounce illegal intelligence gathering or abusive supervision.”

While the move is a rational, citizen-centric measure to ensure lack of abuse it would create a new authority to examine leaked documents. Remininscent of a FISA court, where all proceedings are behind closed door and there is no accountability whatsoever, the new measure would present leaks to a panel for review. This provisions significantly waters down how effective such whistleblowing could be – the likely scenario being a small subset of leaked information reaching the attention of the general public.

Intelligence officers would have to follow this procedure, in order to not “be punished or subjected to discrimination,” according to the amendment. Whistleblowers who avoid the new authority and send their information directly to the media would still commit an illegal act.

While the French approach is more rational than ours, it still leaves much to be desired. The exposures by Snowden revealed an elaborate network of systems and agencies that are totally unaccountable despite having near infinite power on our lives. The level of influence is so extreme is not perfectly feasible they could change election outcomes, judicial verdicts and other events that underpin our democracy.

Still, the French amendment is a sign that, despite terrorism concerns, a majority of French parliamentarians remain skeptical of the type of spying habits exposed by Snowden. The ex-NSA contractor revealed surveillance programs that wantonly violate privacy rights and the rule of law, indiscriminately targeting both citizens and foreigners, innocents and combatants.

New Leaks Show ‘Free Trade’ Deal A Sham

A freshly leaked chapter of the highly secretive Transatlantic Trade and Investment Partnership (TTIP) agreement shows the so called ‘free trade’ deal is nothing more than a power grab by large corporations and their paid lobby groups.

Specifically, the increased “cooperation,” will allow corporate power to trample democratic protections, from labor to public health to climate regulations, while encouraging a race to the lowest possible standards.

The agreement, currently under negotiation between the United States and European Union, focuses on “regulatory cooperation” and would introduce a system that looks to harmonize every new environmental, health, and labor standard between the EU and the United States.

“It creates a labyrinth of red tape for regulators, to be paid by the tax payer, that undermines their appetite to adopt legislation in the public interest,” said Paul de Clerck of Friends of the Earth Europe in a press statement released Monday.

The shocking revelations come on the heels of global protests against the mammoth deal over the weekend and coincides with the reconvening of negotiations between the parties on Monday in New York.

The newest version of the regulatory cooperation chapter reveals that the European Commission is angling to impose even more barriers to regulations, effectively taking regulatory decision out of the hands of elected officials and into the hands of corporate lobby groups.

“Laws will be evaluated on whether or not they are compatible with the economic interests of major companies,” the organization explains. “Responsibility for this screening will lie with the ‘Regulatory cooperation body,’ a permanent, undemocratic, and unaccountable conclave of European and American technocrats.”

David Azoulay, managing attorney for the Center for International Environmental Law, stated “We are concerned about this new version, because it would take power away from legislators and regulators and give it to this group of technocrats that is not elected and operates in secrecy,” Azoulay continued. “Secondly, this would burden lawmakers with extremely heavy procedures, create red tape, and force legislators at the local, state, and federal levels to spend large amounts of time answering questions about regulations.”

The regulatory cooperation plan is already widely opposed by civil society groups. Governments have been meeting in secret and refuse to share details of the agreement due its controversial nature.

Over 170 organizations denounced regulatory cooperation in a statement released in February: “The Commission proposals for regulatory cooperation carry the threat of lowering standards in the long and short term, on both sides of the Atlantic, at the state and member state/European levels. They constrain democratic decision-making by strengthening the influence of big business over regulation.”

The potential implications of this latest proposal are vast, as the TTIP is slated to be the largest ‘trade deal’ in history. When it becomes law the agreement will represent a massive gift of power to large corporations while stripping any sort of democratic oversight from key regulatory functions.

Together, the U.S. and EU account for nearly half of the world’s GDP. The TTIP agreement is the latest data point in a troubling trend: the secret negotiation of so called trade deals. Currently the United States is negotiating the accord alongside two other secret trade deals: the Trans-Pacific Partnership and the Trade in Services Agreement. Both have been highlighted for their undemocratic nature and cosiness to corporate lobbyists. Drafts of the agreements have been written by the corporations themselves and rubber stamped by bureaucrats.

Analysts are warning that the TTIP alone is poised to dramatically expand corporate power.

“Both the [E.U.] Commission and US authorities will be able to exert undue pressure on governments and politicians under this measure as these powerful players are parachuted into national legislative procedures,” warned Kenneth Haar of Corporate Europe Observatory in a press release. “The two are also very likely to share the same agenda: upholding the interests of multinationals.”

Japanese Nuclear Plant Leaks More Radiation Into Ocean

The Fukushima nuclear disaster shows no signs of getting better as Tokyo Electric Power Co. on Tuesday reported yet another setback. In an announcement they stated that a power outage has shut down all eight water transfer pumps at the No. 1 nuclear power station causing radioactive water to again leak into the Pacific Ocean.

The latest setback comes just two weeks after the failure of supposedly radiation proof robots, who were sent inside the radioactive reactor to survey the damage. The failure was cause by extreme levels of radiation and indicates that the disaster may be far worse than initially thought.

Radiation from the incident has been found along the California coast, as far north as Vancouver, Canada. It has also contaminated many fish stocks in the Pacific.

The pumps that failed Tuesday are being used to pump contaminated water from a drainage channel to another channel leading to an artificial bay facing the station. The struggling utility said it was checking into what happened and just how much water had leaked.

It’s doubtful the public will ever know the true extent of the latest leak given the past history of understating water leakages.

The pumping had only begun last Friday, after a finding in late February that highly radioactive water in the channel was reaching the ocean. The pumps were confirmed to be working Monday afternoon but found stopped at 8:45 a.m. Tuesday.

The utility reluctantly said earlier this year that water samples from the drainage channel contained concentrations of radioactive materials that surpassed the legal limit. The samples were taken last may, highlighting how secretive the utility has been about disclosing all the facts in the accident.

Bitcoin Exchange Was Stealing Coins For Years

The mystery around Tokyo based bankrupt Bitcoin exchange Mt Gox got deeper Tuesday morning. WizSec, a Tokyo-based group that’s been analyzing Bitcoin thefts claims the crypto-currency was going missing from the exchange long before it collapsed.

WizSec’s analysis suggests that the theft goes back to 2011, leading to the 650,00 Bitcoin shortfall when Mt Gox collapsed.

That’s particularly interesting on account of the March 2015 arrests of two US agents – Carl Force from the DEA and Shaun Bridges from the Secret Service – for stealing Bitcoin from Mt Gox in 2013.

WizSec, however, suggests that thefts far pre-dated the efforts of the two.

mtgox_btc
The smoothness of the decline suggests a long and slow theft [Courtesy of WizSec]

The group claims it has compiled “a surprisingly dependable list of over 2 million Mt Gox addresses”, allowing it to track the exchange’s holdings over time.

Their conclusion: “By the end of 2011 we are past most data gaps, but we are seeing a clear discrepancy of several hundred thousand BTC between expected holdings and actual holdings. Furthermore, if we look closely, this discrepancy seems to be growing over time”

With the thefts taking place starting in 2011 “MtGox operated at fractional reserve for years (knowingly or not), and was practically depleted of Bitcoins by 2013”.

“Bitcoins continuously went missing over time, but at a decreasing pace,” the report states, flatlining in 2013, because “there may not have been any more Bitcoins left to lose”.

Another hint is in the pattern of some transactions: “One recurring pattern eventually stood out: Mt Gox Bitcoins would suddenly get sent to a new non-Mt Gox address, without any withdrawal log entry, often in fairly recognisable amounts of a few hundred BTC at a time.

“Shortly afterwards, these addresses in turn would get gathered up into bigger addresses holding a few thousand BTC. From there, the coins would get deposited in chunks of some hundred BTC at a time onto various Bitcoin exchanges.”

While the researcher, Kim Nilsson, couldn’t identify all the destinations of the aggregated coins, he was able to pick out accounts at Mt Gox, BTC-e and Bitcoinica.

The research report was prepared for an upcoming creditors’ meeting, WizSec says.

HSBC Leaks Customer Mortgage Data… For Years!

If you have a mortgage with HSBC you may want to get in touch with them this morning. The company revealed that they are notifying American customers of its Finance division that their personal information has accidentally been published online since last year.

It is believed that HSBC exposed customer names, account numbers, social security numbers, and telephone numbers. Publishing the data was the result of a corporate error and was not attributed to hackers.

The leaked data was discovered on March 27 and is believed to have begun towards the end of last year. Precisely when the breach occurred has still not been disclosed. In addition to HSBC A number of its subsidiary firms have also been affected and the damage outside of New Hampshire is expected to be substantial.

The company only confirmed the breach through a letter received by the New Hampshire Attorney General’s Office, informing them of the breach. Mandatory disclosure is a legal obligation in the state of New Hampshire, where 685 residents are believed to be compromised by the leak.

“We are conducting a thorough review of the potentially affected records and have implemented additional security measures designed to prevent a recurrence of such an incident,” the bank writes.

Troy Gill, Manager of Security Research at Appriver, stated:

“Since HSBC does not appear to be claiming that it suffered a breach by hackers it seems that it may have inadvertently stored the data in a manner that made it accessible on the internet.”

“In this case it is the data could have potentially been compromised by countless groups/individuals to be used for nefarious purposes. With personal information including social security numbers being involved, this could have a severe impact for their account holders.”

This is an example of breach notification laws in action, both good and bad. While we were able to find out about this breach because HSBC was required to notify residents of New Hampshire the the notification laws vary across states and countries so the full extent and impact is not yet known.

With so many of the bank’s subsidiaries being named the number of those affected will likely be substantially more than the 700 or so we know about presently.

Why We Can’t Have Japanese Style Bullet Trains

A Japan Railway maglev train hit 374 miles per hour on an experimental track in Yamanashi Tuesday, setting a decisive new world record. Witnesses erupted with excitement and applause when the new record was set.

Americans who have visited Japan often marvel at the sleek looking bullet trains and wonder why we can’t have these state-side. A bullet train from New York to Los Angeles would offer a viable alternative to air travel and provide travellers with a level of comfort not found on airlines these days.

But bullet trains are prohibitively expensive and Japanese systems are even more expensive than their counterparts in France or China because they run on elevated tracks to avoid traffic crossings. The networks also incorporate disaster monitoring systems. The largest cost of construction comes from boring tunnels through mountains.

For some perspective, France’s high speed train cost approximately $22 million dollars per mile. New York to LA is about 2500 miles and the route would include boring through numerous mountains.

A conservative cost estimate for such a project would somewhere near $75 billion. While Americans are known to be master financiers the population sizes of Japan and United States make this an unattractive proposition for investors.

Japan has a population density of roughly 850 people per square mile while we have a density of roughly 85 per mile. In transportation terms this means we have one tenth of the need and given the huge size of our country, something like 20x the distance. At 20x the cost and 1/10th the demand it doesn’t make sense for us to have high speed rail – we fly instead.

So it’s not that we don’t have the technology or resources to build these glamorous high speed bullet trains. For us, it just doesn’t make sense.

Former Egyptian President Morsy Sent To Prison

Mohamed Morsy, the controversial former Egyptian President, is back in prison.

Morsy, who was ousted by military leader Abdel Fattah el-Sisi, was convicted on Tuesday and sentenced to 20 years in prison. He faced charges of inciting violence and facilitating the killing and torturing of protesters outside the presidential palace in December 2012.

Morsy has indicated he will appeal the verdict, according to his counsel.

The controversial leader had become Egypt’s first democratically elected President in June 2012, before being deposed by a military coup led by el-Sisi in July 2013. There were widespread allegations of voting irregularities in the election.

Morsy was controversial as upon winning the vote he proceeded to enact Islamist policies which were inconsistent with his election platform. The radical changes were poorly received in Egypt, which has a record of embracing western culture and progressive social policies.

“This is a sad and terrible day in Egyptian history,” Morsy’s Freedom and Justice Party said in a statement Tuesday. “Coup leaders have sentenced Mohamed Morsi to decades in prison for nothing more than championing the democratic will of the people.”

For Morsy to end up in court careful procedures were needed in order to adhere to the constitution. His ouster and subsequent trial required the approval of two-thirds of the parliament and a special court composed of the country’s top judges.

Morsy was combative and at various points in the trial asserted that he was the President of Egypt and refused to recognize the court as legal.

His behaviour was so distruptive that it became necessary to enclose the defendants cage in soundproof glass. Morsy then withdrew his defense team from the case.

The worst is not yet over for Morsy. He is on trial in three other cases, including two on charges of espionage. His third trial is to answer allegations he and 18 other members of the banned Muslim Brotherhood broke out of the Wadi-Natroun prison, Egyptian state media reported.

Morsy is accused of collaborating with the Palestinian Islamist group Hamas and the Lebanese Shia group Hezbollah to escape.

Blue Bell Pulls All Products From Store Shelves

Blue Bell Creameries is pulling all of its products off store shelves Americans.org has learned. The massive recall comes after weeks of gradual recalls due to Listeria contamination.

The products affected are its entire line of ice cream, frozen yogurt, sherbet and other frozen snacks the company said Monday.

“Today’s decision was the result of findings from an enhanced sampling program initiated by Blue Bell which revealed that Chocolate Chip Cookie Dough Ice Cream half gallons produced on March 17, 2015, and March 27, 2015, contained the bacteria,” the company said in a statement.

“This means Blue Bell has now had several positive tests for Listeria in different places and plants.”

Thus far, Blue Bell has observed five cases of Listeria in Kansas and three in Texas.

“We’re committed to doing the 100 percent right thing, and the best way to do that is to take all of our products off the market until we can be confident that they are all safe,” Blue Bell CEO and president Paul Kruse said in a prepared statement.

“We are heartbroken about this situation and apologize to all of our loyal Blue Bell fans and customers.

If you have purchased the potentially affected products it is advised you do not eat them and return them to you local grocer.

Should You Be Allowed To Repair Your Own Car? Automakers Say No!

The concept of ownership is at risk of disappearing in America. From music to software to fonts the trend is toward the average American becoming a mere limited rights licensee despite our proud history of ownership.

Turns out the folks who make your truck aren’t much different. Autoblog reports that automakers are quietly supporting provisions in copyright law that could prohibit home mechanics and car enthusiasts from repairing and modifying their own vehicles. ‘Own’ being a relative term here as automakers would like you to be nothing more than a user but yet would still like to charge you full price of ownership.

In comments filed with a federal agency that will determine whether repairing a car constitutes a copyright violation, vehicle manufacturers and their main lobbying organization say cars have become too ‘complex’ and ‘dangerous’ for consumers and third parties to handle.

Allowing consumer like you and I to continue to fix their cars has become “legally problematic,” according to a written statement from the Auto Alliance, the main lobbying arm of automakers. Very convenient it would seem.

The dispute arises from a section of the Digital Millennium Copyright Act that was clearly not intended to apply to car manufacturers. But now, in an era of frivolous lawsuits and cars that contain computing platforms, the U.S. Copyright Office is examining whether provisions of the law that protect intellectual property should prohibit people from owning their cars.

Every three years, the office holds hearings to determine whether certain activities should be exempt from the DMCA’s section 1201, which governs technological measures that protect copyrighted work. The Electronic Frontier Foundation (EFF), a nonprofit organization that advocates for individual rights in the digital world, has asked the office to ensure that home mechanics can continue working on cars by providing exemptions that would give them the right to access necessary car components.

Interested parties have until the end of the month to file comments on the proposed rule making, and a final decision is expected by mid-year.

The outcome will be monumental for the concept of ownership as item we’ve traditionally owned – fridges, stoves, televisions, thermostats, computers and vehicles – become wired to the internet.

In comments submitted so far, automakers have aggressively tried to paint the picture that allowing outsiders to access electronic control units that run critical vehicle functions like steering, throttle and braking “leads to an imbalance by which the negative consequences far outweigh any suggested benefits,” according to the Alliance of Global Automakers. In the worst cases, the organizations said an exemption for home mechanics”leads to disastrous consequences.”

We must be careful to dig a little deeper and understand what is at stake – the very concept of ownership. If adding technology to mundane products means removing the concept of ownership, perhaps our legal system needs to take a long hard look at the law. And perhaps consumers need to take a long hard look at their vehicles manufacturers to separate fact from fiction.

“It’s not a new thing to be able to repair and modify cars,” said Kit Walsh, a staff attorney with the Electronic Frontier Foundation. “It’s actually a new thing to keep people from doing it. There are these specialized agencies that govern what vehicles can lawfully be used for on the road, and they have not seen fit to stop them from repairing cars.”

Aftermarket suppliers and home mechanics have been modifying ECUs for years without dire consequences. By tweaking the ECU codes, a process sometimes known as “chipping,” they’ve boosted horsepower, improved fuel efficiency, established performance limits for teen drivers and enhanced countless other features of the products they own and have paid for. These innovations have contributed to a “decades-old tradition of mechanical curiosity and self-reliance,” according to the EFF.

The EFF thinks the industry’s desire to block exemptions has more to do with profits than safety and we’d agree. As software becomes easier to update via the internet and wireless networks, automakers could charge for these performance upgrades on an a la carte basis. Because a favorable ruling would strengthen their control of the software, the car companies could potentially force consumers to only have their vehicles fixed at their dealerships or preferred repair shops – a fatal blow to the concept of ownership.

In this dystopian world buying a house would be nothing more than being a renter – your builder would own all the software of your HVAC system, your lighting system, your automated window covering system and your electrical system. Want to add an outlet? Pay a licensing fee for one more plug.

Another question central to balancing the competing interests in the proposed exemptions: Once customers purchase a device, must they only use it specifically as the manufacturer intended or can they modify it for their own particular needs?

Another key issue is the ability of outside parties to audit the security of vehicle systems. In that respect, cyber-security security researchers might enhance vehicle safety more than the occasional amateur error may cause harm. All the more reason, then, that automakers and independents should be considered on equal footing.

“It’s just a myth that the manufacturers are the only people who can make improvements,” an industry expert said. “That’s why maintaining that choice is really important.”

Detroit Zoo To Turn Manure Into Green Power

The Detroit Zoo is cleaning up its act with a plan to be the first U.S. zoo biodigester.

The project, costing $1.1 million, will convert the 400-500 tons of manure and other organic waste produced annually at the zoo into methane gas. The powerplant will then power the 18,000-square foot Ruth Roby Glancy Animal Health Complex.

The leftover material from the process will be used for the animal habitats, gardens and public spaces on the zoo’s 125 acres, saving it $70,000 to $80,000 in energy costs and another $30 000 to $40,000 in waste removal fees.

Construction is scheduled to launch in June and the project should be completed by October.

The high capital cost of the project “is a pretty big barrier to entry for most zoos,” COO Gerry VanAcker said. “But we expect a return on investment in close to 10 years.”

The Detroit Zoo has set a target of being zero-waste by 2020. The biodigester “gets us a lot closer to that goal,” he said, and will generate 7 percent to 8 percent of the zoo’s annual electricity needs.

The zoo partnered with the Michigan Economic Development Corp which used its online Patronicity crowd funding platform to help jumpstart the project.

The Fred A. and Barbara M. Erb Family Foundation gave a $600,000 grant, via zoo trustee John Erb.

The zoo in turn plans to chip in $100,000 from its 2015 capital budget and has $100,000 of grant proposals in to the Michigan Energy Office and the Department of Environmental Quality.

Although the biodigester is not typical of the projects funded by MEDC, “we saw this as a great opportunity because it is a place that attracts a significant amount of the public and it brings such a huge, important aspect of sustainability and promoting green elements,” said Lisa Pung, community assistance team manager at the MEDC.

The biodigester is anticipated to produce three-quarters of the electricity needed for the health complex, which functions like a hospital with X-rays, surgeries, medication dispensing and a nursery.

Police Let Robbers Go To Avoid Revealing ‘Investigative Technique’

Prosecutors in St. Louis, Missouri, have let four robbery suspects go free instead of explaining law enforcement’s use of a ‘stingray’ device in court proceedings.

The stingray devices, also known as cell-site simulators, pretend to be a cell phone tower. Phones nearby connect to the device rather than the real phone towers, allowing police to intercept calls without the use of a warrant.

The devices are also controversial because they are indiscriminate. Any passerby, whether law abiding or otherwise, has their phone tapped and data stolen.

The St. Louis case is another instance where prosecutors have preferred to drop charges instead of fully disclosing how the devices work in the real world. Last year, prosecutors in Baltimore did the same thing during another robbery trial.

According to the St. Louis Post-Dispatch, this month’s dismissal came just one day before a St. Louis police officer was to be deposed in the robbery case.

Neither the office of Circuit Attorney Jennifer Joyce nor the office of Megan Beesley, a public defender involved in the case, immediately responded to a request for comment over the weekend. The St. Louis Police Department also did not respond to a request for comment.

The latest report raises troubling questions about the techniques used by increasingly large and sophisticated police forces around the country. The trend, known as paramilitary policing, sees police departments outfitted with military style equipment, including cutting edge electronic warfare devices like the stingray. Given the large investments and ‘cool factor’ of the new gear police face pressure to use it, even though such use may violate law or be unwarranted.

Thailand Seizes 4 Tons Of African Ivory

Thai customs officials announced Monday one of the largest seizures of elephant ivory in transit in Southeast Asia. Police seized 739 tusks (about four tons worth) as it sat at the port of Bangkok awaiting shipment to Laos.

“Moving a shipment of four tons halfway around the world is not a trivial undertaking.” said Richard Thomas, global communications coordinator in London for TRAFFIC International, which monitors trade in rare and endangered wildlife.


[courtesy of The Bangkok Post]

ivory2
[courtesy of The Bangkok Post]

“Movements of this kind are very, very strongly indicative of organized crime.”

Sadly the latest seizure in Thailand is the most by weight in the kingdom’s history according to a statement from Thai Customs. While extremely significant it is not the largest ever in the region. Singapore seized 7.2 tons in 2002 and Malaysia authorities seized six tons of ivory in 2012.

Thai authorities say the ivory was hidden in sacks of beans and originated in the Democratic Republic of Congo. Its likely final destination was the markets of China.

Thai authorities have stepped up their efforts to seize illegal ivory shipments after the global regulator CITES (Convention on International Trade in Endangered Species) informed the kingdom that all of its wildlife business faces severe and wide-ranging sanctions if it does not curb trade in tusks on its soil by August of this year.

Registered ivory from domesticated Thai elephants can be sold legally in the country. The loophole is blamed for making it easier for poached African ivory to be laundered through Thailand.

In addition to the crackdowns on smuggling, Thailand enacted a new elephant ivory law that requires ivory collectors to declare their possessions to authorities by April 21st to avoid a hefty fine of up to 3 million baht. Since the law came into force on Jan 22, the public has been cooperating to disclose and register their assets. Between 500-700 people have come to report their possessions daily

More than 22,000 ivory collectors, including well-known politicians and businesspeople, have reported about 150 tonnes of their ivory items to authorities as the legal deadline to declare the ivory assets approaches.

Many of the items reported are pairs of ancient elephant tusks handed down for generations and some of the tusks are believed to be more than 100 years old

“The Thai authorities are certainly to be congratulated on making this very important seizure. But it does underline just how serious the nature of this illegal activity that is going on is,” said Thomas.

Environmentalists say 20,000 of the remaining 500,000 remaining African elephants were killed in 2013 – primarily poached for their ivory to meet demand in Asia.

China is estimated to be the destination for as much as 70 percent of the illegal ivory. For many modern middle class and upper class Chinese, ivory objects are believed to bring good luck or be a way to display status.

China has yet to meaningfully tackle the trade in endangered wildlife and instead largely ignores the issue due to cultural and historical reasons. This issue will continue to be a contentious one as China emerges as dominant player in global politics.

WhatsApp Announces It Has 800 Million Monthly Active Users

The $19 billion Facebook paid for WhatsApp seems to have been worthwhile according to a clue dropped by the company today. Whatsapp CEO Jan Koum revealed on his Facebook page that the popular messaging company now has over 800 million monthly active users, which is up from 700 million in January. At this rate, WhatsApp will reach the one billion user milestone before the end of 2015.

The numbers highlight just what a threat WhatsApp is to Facebook. Users are increasingly preferring the privacy offered by the mobile chat company’s Groups feature, where they talk but more crucially share photos, the lifeblood of Facebook. By purchasing the company Facebook avoids having to compete with the plucky upstart and can instead look to collaborate with and pinch ideas from the company.

WhatsApp recently went beyond texting, activating voice calling for Android users. This feature will soon be available to iOS users, and according to a leaked screenshot could arrive on Windows Phone soon, too.

The massive scale of WhatsApp comes as social rival Snapchat announced 200 million monthly active users in January. Both WhatsApp and Snapchat are mobile only, which mean the number of users on each compares differently to Facebook which has a mix of desktop and mobile visitors. Both sets of numbers truly show that had Facebook not bought Whatsapp they would have been very much on the defensive at the moment.

It will be interesting to see what comes along next to challenge Facebook & Co. for mobile eyeballs given how fast Snapchat, Whatsapp and Instagram came onto the scene.

Private Equity Gets Into The Circus Business

Private equity giant TPG has purchased The Cirque du Soleil it announced Monday. The American PE behemoth has signed a deal to sell a majority stake in the famed circus group for an undisclosed price. This confirms our report last week that talks were underway.

The key to getting the deal done was to ensure that the company’s headquarters will remain in Montreal. Cirque founder, onetime astronaut and all around interesting man Guy Laliberté will maintain a stake in the Montreal-based company and continue to provide strategic and creative input. Estimates last week are that he will continue to hold around 10% of the company once the deal closes.

Chinese investment firm Fosun and Quebec pension fund manager Caisse de dépôt will hold minority stakes, which is likely a setback for them. It seemed last week like the Fosun in particular was looking for a large stake and was likely muscled out by TPG.

Caisse CEO Michael Sabia said it is investing with Cirque to help it conquer new markets.

“We are pleased that this new era of growth will be directed from Montreal, the Cirque’s decision-making and creative centre, under the direction of Daniel Lamarre as CEO,” he said in a statement.

TPG said that its experience building brands like J. Crew and Neiman Marcus, along with its strong media and entertainment relationships, will open new revenue opportunities for Cirque.

The buying group is particularly interested in expanding Cirque’s presence in China. They also want to do more third-party licensing deals, digital media and ticket sales.

“We are inspired by Guy Laliberté’s imagination and vision, and look forward to working with him and his talented team, as well as the vibrant Montreal creative community,” said David Trujillo, a TPG partner.

The sale is expected to close in the third quarter.

H&M Caught Trying To Pay Student Artists In Gift Cards

Swedish retailer of fast fashion to the world H&M is doing damage control this morning after word leaked that it was trying to pay student artist in gift cards for helping them beautify the construction site of a new store. Students, predictably, weren’t enthused about the idea.

The retailer started a competition called “Toronto Loves Fashion! Fashion Loves Toronto!” Canada’s top art school, Ontario College for Art and Design (OCAD) has called upon third- and fourth-year students and recent graduates of the digital painting program to submit work to be displayed on the temporary walls that will be put up during the construction, which will last into 2016.

The advertisement says eight winning artists, determined by a balanced panel of H&M and OCAD University representatives, will be awarded “lots of exposure,” and a $500 gift card to H&M.

Students are upset that company making billions in profit won’t pay them fairly.

“It’s not a good deal,” says Keith Eager, a 27-year-old student in OCAD’s printmaking program. “I think it’s undervaluing what the students are doing.”

Jessica Baldanza, who is just about to graduate from the painting and drawing program, echoed Eager’s opinion.

“This contributes to the problem of artists not being paid for their work,” the 21-year-old says, adding that, in her experience, examples of that outside of this competition are numerous. “I think, to some people, (art) seems superfluous and unnecessary, like something you do for fun.”

Anda Kubis, associate dean of OCAD’s faculty of art, said that the competition really does offer a great opportunity for students and exposure is valuable to the aspiring artists.

“This is not about finances for us,” Kubis says “It’s fantastic exposure (for students) at a pivotal location in downtown Toronto.”

Kubis said winning artists may be able to get shows, commissions or even more work from H&M by having their art displayed in Dundas Square though its questionable, given the one time nature of the need, that this would actually take place. The final display will include the eight winning 3-foot-6 by 6 ft digital paintings accompanied by a short artist statement and biography, and a short note on the school’s new digital painting and expanded animation program.

Baldanza says the promise of exposure is no substitute for pay.

“Exposure is not a reliable enough form of compensation,” she says. “It’s not guaranteed. It’s a way for people to avoid paying for artists.”

This problem is magnified because H&M will have a full license for the work in perpetuity. As a reference point, Getty Images charges $600 for the use of one stock photograph for five years in one single application, such as on a corporate website. Any other uses would cost thousands of dollars more.

The contract students are forced to sign in order to enter their work stipulates that H&M owns the winning pieces and has the right to “copy and/or reproduce the artwork for the purposes of promotion,” but the students “retain their copyright and moral rights,” and, if H&M chooses to reproduce the work for commercial sale, there will be a “discussion in good faith.”

The display will be installed before construction on the store begins on May 29.

Why Investors Should Be Worried About The Google Tesla Deal

News broke this morning that Google and Tesla reached an acquisition agreement in 2013. Larry Page and Elon Musk reportedly had a handshake deal that would have seen Musk head the electric car maker for 8 years or until it produced its third vehicle. The deal is reported to have fell apart at the last minute due to haggling over small details.

This should be deeply worrying to Google investors for two reasons.

Google is showing a worrying lack of focus
Electric cars are completely unrelated to any of Google’s core businesses and core stengths. Creating cars is mainly a mechanical engineering / design / marketing challenge, which is unlike Google’s core software business that relies on software engineering almost exclusively to solve problems. In short, Google knows very little about building cars or building any physical products for that matter.

Why this is worrying is that good CEOs understand their company’s zone of competence. They know what they can and more importantly cannot do well and strive to build businesses around their strengths. Here Larry Page seems to be wildly ambitious without conceding what Google isn’t good at. Google as a culture is known for its arrogance and hubris. Built on the back of earth shattering success and ivy league pedigrees its understandable why this might happen. Page’s vaulting ambition to get into a business he knows little about underscores that this ‘we’re the smartest guys in the room’ mentality is a top down phenomenon. This creates a dangerous blind spot when making large acquisitions.

Larry Page has social issues
To have reached a large, $11 billion deal and have it fall apart at the last minute of seemingly minute details show Page’s known quirkiness is handicapping his ability to lead the company. Known for his awkward demeanor, abruptness and lack of respect for others, Page is used to being the king of the castle and answering to nobody. This is part of the reason he returned as CEO. He also exhibits great personal hubris, as illustrated above.

These personal issues are now starting to matter for the company. The easy days of search advertising dollars are over and the company has had no hit product (where it makes money) since. Even Microsoft found a second revenue engine, Office, by the time it was at Google’s level of maturity. The company seems to realize that in order to find this, it is likely going to have to pay to acquire. Despite trying hundreds of beta products, the company just can’t seem to generate market winning products internally.

When a company needs to make deals you need a CEO who is charming, friendly and humble. This type of CEO gives acquisition targets comfort in selling their ‘babies’, the inventions and companies they’ve spent their life creating. They trust not only their inventions but the team they’ve build over years or decades will have a good landing spot and a bright future.

A CEO who is arrogant, awkward and meddlesome is not the kind you sell to. It’s the kind you run away from and thank your lucky stars you spotted these quirks before you signed on the dotted line. Larry page is this type of CEO.

The revelations of a Google / Tesla deal should give investors in Google cause for concern. It’s becoming clear – through this, the anti-trust issues, the Glass failure and Google’s endless flirtation with strange ideas – that Google needs different management. Fast.

Swiss Postal Service Testing Drone Delivery

Swiss Post, Switzerland’s equivalent to the United States Postal Service, has confirmed it is testing a delivery service that uses drones.

A spokesman for the national mail carrier confirmed a report in local media to Agence France Presse, detailing a partnership with US drone maker Matternet and the freight division of Swiss International Air Lines.

The tests will involve mail delivery to regional sorting centers and are expected to be conducted over the summer. Both the extent of the trials and carrying capacity of the drones is not known.

Matternet’s current flagship product, the ONE, is relatively small compared to the needs of a mail carrier. Its unique architecture makes it light and strong enough to transport 1 kilogram over 20 kilometers on a single battery charge, which while handy for some applications, like video photography, might not be so useful for transporting heavy bags of letters over long distances.

What could be more interesting to the Swiss is Matternet’s autonomous flight systems. The software on the ONE allows the drone to adapt to weather, terrain and airspace and thus allowing it to fly autonomously beyond line of sight, without the need for a human pilot.

For Switzerland this may be particularly important because Swiss towns and villages can be tough to reach in winter. Getting the mail through despite snow, ice or avalanche has obvious benefits.

Another key benefit would be the lack of human involvement. Swiss Post, like its peers in the United States and England is bleeding money as it tries to meet service obligations and revenue targets. Drone based delivery might help it overcome these financial challenges.

Swiss Post joins Amazon, DHL and Google in testing the waters.

Hacker Group Anonymous Fights For 4th Amendment Rights

Activist hacker collective Anonymous has launched an online campaign to raise awareness about two controversial US information-sharing bills Americans.org has learned.

The first bill, CISA (Cybersecurity Information Sharing Act) is widely regarded to sacrifice privacy without improving security. Anonymous goes further, arguing that the measures threaten Fourth Amendment protections against unwarranted searches and seizures, hence their decision to launch #OperationCISPA.

This CISA bill is an alternative of the CISPA [Cyber Intelligence Sharing and Protection Act] that failed to be passed in 2013. Key lobbyists behind the rejected bill, Sony Pictures and the MPAA, are the key pushers of the CISA legislation.

“The CISA and CISPA bills directly attack the Fourth Amendment by letting the NSA monitor your private information without a warrant,” a member of the group reportedly told The Register.

“This is a direct impact to our security and assault on our privacy. Our objective is to stop the CISA Bill, and all other future cyber security bills, that aim to diminish our rights on the internet.”

The controversial bill would allow organisations within the US government and corporate worlds to share data on ‘attacks’.While its supporters argue that better information sharing will help prevent against hack attacks the real target is likely file sharers. The legislation would help large and exceedingly wealthy movie studios to sue illegal downloaders and streamers. Despite piracy being linked to increased sales of content the Hollywood set seem fixated on attacking Americans with legal threats that amount to extortion rackets.

This operation marks a change in tactics for the hacker group, who have previously launched denial of service attacks against their targets. Participants in past operations have been jailed for their involvement.

In fighting CISA Anonymous is pushing a petition, attempting to build public awareness through media outreach and other common PR strategies. It’s tactics look like a conventional political campaign, which may be beneficial to the group’s long term viability and ability to achieve substantive change.

Latest Bank Earnings Show Nothing Has Changed

Once bailed out Wall Street investment bank Morgan Stanley reported a much stronger than anticipated rise in quarterly profit, boosted by higher revenue from trading bonds and equities.

“This was our strongest quarter in many years with improved performance across most areas of the firm,” Chief Executive James Gorman said in a statement. The numbers reported by the #3 Wall Street bank mirror those reported a week earlier by another formerly bailed out bank, Goldman Sachs.

Goldman reported first quarter earnings that were up 41% to $2.75 billion.

To get a sense of the obscene amount of money being made, the average Goldman employee made $130,000 – for the quarter. Yearly earnings were on target to be an average of nearly $500,000 at both Morgan Stanley and Goldman. JP Morgan, who also received a bailout, reported similar numbers.

Both the level of compensation and the sudden rise in earnings should trouble regulators and investors alike.

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[courtesy of BsNews]

After their mismanagement had to be fixed by the average American taxpayer to the tune of 10s of billions of dollars, the banks sought to de-risk themselves. Or rather they were forced, reluctantly, to do so. Given the sudden spike in profits it appears this has not in fact taken place and that banks are once again playing high risk games and engaging in the moral hazard that got them in trouble around 2008.

The press release reads that “Morgan Stanley is focusing less on bond markets and more on managing money for the rich as a way to free up capital and comply with stricter regulatory requirements since the financial crisis”.

Yet the 60% spike in earnings came largely from trading, a high risk activity that has been aggressively regulated since the financial crisis. Banks are not longer allowed to bet their own money on securities (so called prop trading) and instead can only do so for clients. Yet its unlikely the dramatic rise in profits can be attributed to surge in client orders – clearly there is more going on deep inside the convoluted inner workings of the banks for these kind of results to materialize.

Specifically, the bank’s FICC (bonds and currencies) business, like those of its rivals, got a boost in the quarter after the Swiss central bank scrapped a cap on the franc, the European Central Bank announced its quantitative easing program and the U.S. Federal Reserve moved to tighten monetary policy. That’s the story anyway. What really happened is that the banks made the right bet on this outcome and it paid off. But they were still betting, taking risks that will inevitably come due and inevitably be covered by average Americans.

Investors ought to also take note of the extreme level of compensation at these firms. Despite being systemically important and highly regulated the banks still find elaborate and creative ways to pay themselves ever increasing amounts of money.

Would you want your wealth manager taking huge fees from your investment returns to pay themselves this handsomely? Or as an investor in these companies would you mind taking less dividends so that the managers of these companies can pay themselves like royalty? Food for thought both for main street Americans about to have an election and Elizabeth Warren, the sole crusader for accountability in the financial industry.

Shocking Street Violence Rocks South Africa

South Africa was shocked this weekend by a stunning series of photos showing helpless Mozambican migrant Emmanuel Sithole pleading for his life as a gang of men brutally murder him in a Johannesburg street. A crowd of silent onlookers can be seen behind doing nothing.

The men stalked him along the street then one clubbed him with a wrench, while another stabbed him. The Mozambican fell bleeding to the ground and died minutes later The man became the latest victim in a rash of anti-foreigner attacks sweeping across South Africa.

WARNING: GRAPHIC PHOTOS
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The shocking series of photos that gripped South Africa this weekend [courtesy of The Sunday Times]

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Emmanuel Sithole lies motionless after the vicious attack. [courtesy of The Sunday Times]

Nearly 5,000 migrants, mostly from African nations, have been forced from their homes because of violence in recent weeks, according to the United Nations. Many are residing in squalid makeshift camps, while others have travelled back home to Mozambique, Malawi, Zimbabwe and elsewhere in Africa. So far at least seven people have been killed. Many foreigner owned shops have been looted as foreigners are blamed for unemployment and other economic and social problems.

Jacob Zuma, South Africa’s President, cancelled a trip to Asia on the weekend because of the crisis, while his cabinet ministers vowed that the perpetrators would be brought to justice. “We will find you and you will be dealt with to the full might of the law,” they said in a joint statement released Sunday. They announced that 307 people had been arrested since the attacks began.

The story of Emmanuel Sithole has stirred more vows of action. Photos of the murder went viral after they were published on Sunday in the Sunday Times, a leading South African newspaper.

While police promised to use the photos to track down the killers history shows they usually walk free. In nearly all cases of anti-foreigner violence, dating back to 2008 nobody has been convicted of the murders. The assumption they will never be brought to justice has likely fuelled the attacking mobs.

It is estimated that more than 350 people have been killed in xenophobic attacks on foreigners in South Africa over the past seven years.

Researcher Jean Pierre Misago told the Sunday Times that he found evidence of only one successful prosecution for any of those hundreds of murders. In most cases, the charges were withdrawn or witnesses were too afraid to testify.

This finding exposes the shocking reality: South African authorities almost never prosecute the perpetrators of violence, including vigilante killings of suspected criminals; labour violence by union members; political violence; and anti-government protests in the streets.

This likely owes to an attitude stemming from the struggle with the apartheid regime. Much of the violence of that era was seen as justified, but it has continued for illegitimate purposes after democracy arrived in 1994.

By allowing protesters and street mobs to take the law into their own hands and by allowing police brutality to continue, the South African government has made it easier for the xenophobic violence to gain momentum and made it far more difficult to stop.

Target Still Has The Magic

Target showed this weekend that it still knows how to get the merchandise people want at prices people love. On Sunday Target’s collaboration with Lilly Pulitzer, the queen of American resortwear known for her bright, bold patterns, launched at 8am to great fanfare.

At stores, shoppers began lining up at 5am hoping to grab some of the hot items before they became sold out. Online, Target’s website promptly crashed due to heavy demand from shoppers who increasingly prefer to buy from the web and via mobile phones rather than shop instore.

Pulitzer designed a 250-piece collection featuring items in 15 exclusive prints at attractive prices compared to other retailers. Her signature sleeveless, collarless shift for adults currently retails from $180 to $300; the Target version is available for $38. Target’s Lilly bikinis are priced at $48 for the top and bottom, compared to $136 for the two pieces. Other items included tote bags, pillows and sandals and beach coverups, all retailing for significantly less than the designed versions.

While issues with a down website and a rush of buyers was inconvenient for some customers the launch is a positive validation of the brand’s strategy. Target, who’s entry and swift yet costly exit from the Canadian market, seems to be back on track with a formula that pleases online and instore customers yet can compete on price without looking cheap. As any marketing professional will tell you this is a fine line to walk and takes great skill.

On the heels of Friday’s announcement that Wal Mart is suddenly closing five stores for unknown reasons the news of solid weekend sales and customer love indicate Wal Mart’s fate may not be the same as Target’s.

Why Google’s open source strategy works

This morning Matt Rosoff wrote an interesting piece, arguing that Google should stop offering an open source version of Android.

This is an interesting argument and Matt is one of the more knowledgeable writers on the subject. Yet there are valid reasons why Google maintains its open strategy that weren’t considered in the article.

The most significant is the rise of Xiaomi. Thinking of this issue as just Xiaomi grossly underestimates the scope of this problem – Huawei, Acer, Coolpad, Lenovo, ZTE, and even Alcatel sell mind numbing amounts of smartphones in the Chinese and international markets. They all run the Android operating system, usually forks of the open source platform localized to the Chinese market.

What is certain about these companies, given both their heft and their Chinese allegiances, is that they would not use Android if it were not open source. They have all dabbled (and continue to dabble) with competing operating systems of their own creation but have stuck with Android because Google saves them a ton of effort and requires nothing in return. Google creates a compelling economic case to use its compatible product versus something new and incompatible.

The result is a rich ecosystem of apps, the lifeblood of a successful operating system platform, that are compatible with versions of the platform Google makes more money from, as well as the open system which is makes nothing from. App makers, vital to Google’s success, aren’t in opposition to big G.

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Better to make nothing than have all these players attack you as one, no?

If these phone makers switched away from Android Google would be facing a vast threat to their OS business. Switching to some other platform would create a unified front against Android which would be catastrophic to its business. Such a rival would then compete directly with Google for OS market share. It is better for Google to have a compatible platform it makes no money from than a well backed rival looking to take over the non-iOS market.

It’s also naive to think that Google will ever get its services onto Chinese mobile phones. Its stance towards China has been non-conciliatory and because of this homegrown rivals, notably Baidu, enjoy a commanding place in the market. Baidu is effectively state backed and enjoys numerous advantages Google will never replicate (for example, compare load times of Baidu Maps and Bing Maps in China – Baidu loads faster than any service you’ve ever seen).

Google is rightly not concerned about making nothing from these manufacturers as it understands the risks of a unified rival far outweigh any lost revenues it feels it should be entitled to. For this reason Google needs to hold the course and keep Android open running alongside the closed and paid version.

Why China’s new silk road plan is a pipe dream

China Xi Jinping has grand dreams of new Asian trade routes but his ideas stand in stark contrast to his country’s political and military stance in the region and around the world.

Xi first proposed the concepts of the New Silk Road Economic Belt, which runs from China across Central Asia and Russia to Europe, and the 21st Century Maritime Silk Road, through the Malacca Strait to India, the Middle East and East Africa during overseas visits in 2013. The idea is to invest in infrastructure, a favorite investment of the Chinese, to alleviate bottlenecks that currently hamper trade between the communist state and its regional trading partners.

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Proposed New Silk Road trade routes [courtesy of World Bulletin]

Chinese academics, who are hardly impartial given they work for party sponsored think tanks, forecast a difficult path for the Silk Road initiatives but for the most politically correct of reasons. “The road ahead is paved with difficulties. The terrorist organisation Islamic State poses a great threat to the New Silk Road,” said Shi Ze, a senior fellow at the China Institute of International Studies.

But this is nothing more than talking the party line. China constantly seeks international support for its oppression of minorities, specifically Tibet and the Southwestern Uyghurs. To see these populations as a legitimate threat to these ambitious trade initiatives is clear evidence of the communist party echo chamber at work.

The real threat to these projects is the increasingly belligerent stance China is taking in the region. We covered earlier this week its building of airbases in the South China Sea. These actions hit on both a political and military level and make neighbors and trading partners unwilling to trust China despite the massive sums of money they bring to the table.

Their actions have already caused closer military ties between the United States and Vietnam (no easy feat) while Japan, The Philippines and South Korea are all engaged in disputes that are likely to render game changing trade agreements impossible.

Meanwhile India is not just developing cutting edge cruise missiles and purchasing advanced jet fighters because of Pakistan. Increasingly India is viewing China as its largest military rival and is taken decisive steps to ensure it keeps pace with the rapid militarization of its Asian rival.

For Jinping to realize his lofty trade goals it will take more than just money. China still lacks refinement and sensitivity when it comes to international relations and until this is corrected it will have a difficult time achieving its ambitious objectives in the region.

Isolated Amazonian tribe found to have resistance to antibiotics

Despite having never been exposed to antibiotics, the common cause of resistance development, an isolated Amazonian tribe has been found to have the condition according to a paper from the New York University School of Medicine.

Researcher Maria Dominguez-Bello has been studying a remote tribe located deep in the jungle of Venezuela since their discovery in 2008. Upon hearing of the discovery she immediately contacted authorities, requesting permission to study the Yanomami tribe before they had been exposed to modern medicine.

“This information is important; because it will give us some light on what are the bacteria we are missing, what bacteria are we losing,” she says. “We need to get a better understanding of the microbiota in this community of hunter-gatherers before they are lost.”

E coli Ag Res Mag
Example gut bacteria

After 2 years spent getting the proper permits and an 11-month delay when Dominguez-Bello’s lab in New York City was closed due to damage from Hurricane Sandy, she and her colleagues eventually sequenced the Yanomami gut bacteria RNA in their labs to compare it with samples from industrialized Americans and rural Guahibo Amerindians of Colombia and farmers from Malawi.

When they compared the sequences, they found that the Yanomami have “significantly higher diversity than other populations,” including high amounts of Prevotella, Helicobacter, Oxalobacter, and Spirochaeta bacteria for example. These are absent or much reduced in industrialized humans. The medical workers also found that although the Yanomami had high levels of parasites, they were remarkably healthy and did not suffer from autoimmune disorders, diabetes, high blood pressure, or heart disease.

Microbiologist Gautam Dantas of Washington University in St. Louis also performed analysis on the Yanomami gut and oral samples, looking for antibiotic-resistance genes. The researchers cloned bacterial DNA from these samples and tested whether any of their genes could inactivate natural and synthetic antibiotics. Their findings from the Yanomami bacteria had nearly 60 unique genes that could turn on and rally to fend off antibiotics, including a six genes that could protect the bacteria from synthetic antibiotics. This is extremely worrying, Dantas says, because researchers have thought that it would take bacteria longer to evolve resistance to human produced antibiotics not found naturally in the soil.

The revelation is concerning because it indicates that “antibiotic resistance is ancient, diverse, and astonishingly widespread in nature – including within our own bodies,” says anthropologist Christina Warinner of the University of Oklahoma. “Such findings and their implications explain why antibiotic resistance was so quick to develop after the introduction of therapeutic antibiotics, and why we today should be very concerned about the proper use and management of antibiotics in both clinical and agricultural contexts.”

Microbiologist Justin Sonnenburg of Stanford University, co-author of the forthcoming book The Good Gut: Taking Control of Your Weight, Your Mood, and Your Long-term Health says “The big message is we in the Western world have lost the diversity in our microbiota. We have to study these groups to figure out what we lost, what these microbes do, and how we get back to a healthy microbiota.”

FBI caught lying about forensic matches for years

Thousands of court cases could be up for review as the Department of Justice and the FBI made the shocking acknowledgement on Friday that virtually every case in which an FBI forensic expert testified on hair matches prior to 2000 contained inflated credibility numbers. The issue was found to be rampant, with over two decades of testimony affected.

26 of 28 examiners with the FBI Laboratory’s microscopic hair comparison unit overstated forensic matches in ways that favored prosecutors. This amounts to more than 95 percent of the 268 trials reviewed so far, according to the National Association of Criminal Defense Lawyers (NACDL) and the Innocence Project, which are helping the government with the country’s largest post-conviction review of questioned forensic evidence.

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Evidence similar to that used in testimony under review [photo courtesy of FBI]

The revelations highlight a shocking disregard for due process and show a callous attitude within the Federal Bureau of Investigation towards fairness and justice. The agency was found to have an ‘ends justifies the means’ mentality, treating any suspects as criminals regardless of the fact sets behind the cases.

The cases examined, a small sample of those affected by the rampant fraud, include those of 32 defendants sentenced to death. 14 of those individuals have been executed or died in prison, the groups said under an agreement with the government to publish the results after the review of the first 200 convictions.

The investigation is ongoing and is nearly certain to affect more than the small group of individuals currently being held to account. The revelations raise troubling questions about the impartiality of the FBI and accountability standards within the organization. On the heals of the string of scandals at the Secret Service perhaps it is time Americans ask more questions and demand more accountability from those sworn the serve and protect.

Army needs civilians to fight escalating cyberwar

The U.S. Army, in a move designed to attract talent cyber security professionals, will create a special civilian division according to a report released this week.

To better fill their ranks, “the Army created the Cyber Branch 17 [for Soldiers] and is exploring the possibility of creating a cyber career field for Army civilians,” Lt. Gen. Edward C. Cardon told senators.

Cardon, who is commander of U.S. Army Cyber Command (ARCYBER), testified before the Senate Armed Services subcommittee on emerging threats and capabilities during a hearing on April 14.

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Lt. Gen. Edward C. Cardon delivers testimony to a senate subcommittee [photo courtesy of CSPAN]

Establishing a cyber career path for civilians will be easier than recruiting enough of them to fill the Army’s needs and also assist in retaining that talent, he said.

The poorly defined nature of cyber warfare rules and the multitude of state actors engaging in cyber warfare means demand for talented information security professionals is at an all time high for the Army. Countries like North Korea, Syria and Malaysia are investing significant sums into cyber armies, recognizing that they can never create effective physical armies and air forces on their limited budgets. Terrorist organizations like ISIS and Al Qaeda are other foes which the United States must defend itself against.

Cyberwarfare capabilities are not just being developed by small countries. The most notable threats come from countries with large standing armies like Russia and China. China’s Unit 61398 carried out attacks against American companies for years until they were exposed in a 60 page report by security firm Mandiant in early 2013. There are many such units operating in China and Russia and Army commanders are keenly aware of the need to counter such threats.

Recruiting and retaining Army civilian cyber talent “is challenging,” Cardon said, “given internal federal employment constraints regarding compensation and a comparatively slow hiring process.”

Current programs to attract and retain top civilian talent include “extensive marketing efforts, and leveraging existing programs and initiatives run by the National Security Agency, Office of Personnel Management, and National Science Foundation,” he said.

He also said that the “targeted and enhanced use of recruiting, relocation and retention bonuses, and repayment of student loans will improve efforts to attract, develop and retain an effective cyber civilian workforce. These authorities exist but require consistent and predictable, long-term funding.”

The General’s last comments underscore the need for political cooperation in Washington if America is to retain its dominant military position. Threats of sequestration and continued defence budget cuts limit the military’s ability to create new capabilities to deal with emerging threats like cyberwarfare.

Beautiful New Species Of Tree Frog Discovered in Costa Rican Mountains

Brian Kubicki made the discovery of a lifetime this past February when he discovered the first new native frog species since 1973. Kubicki travelled deep into the Talamanca mountains where he found the tiny, semi-translucent frog lurking, despite more than a century of field work in the area.

“Costa Rica is a very well-studied area by herpetologists so this discovery was surprising,” Kubicki said. “We just needed some fieldwork in these areas that were poorly explored.”

Hyalinobatrachium dianae, named after his mother Diana, made its world debut in February in the taxonomy journal Zootaxa.

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The delicate tree frog is a stunning shade of green. [photo courtesy of Brian Kubicki]

The frogs lack pigment in their skin and can only be found in parts of Central and South America. Some glass frogs, including H. dianae, are so see through that their organs are visible from their underside, hence the name.

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The frogs organs can be seen through its underside [Courtesy of Brian Kubicki]

Scientists are unsure as to why the frogs have such a see-through appearance, but a leading theory is that their translucence aids in camouflage. Costa Rica is home to 14 of the 149 species of glass frogs.

Kubicki’s team found six of the new frogs in higher elevations in the western provinces of Limón and Heredia. They are tiny, averaging just under an inch in length. They are characterized by unusually long and thin feet and bright white and black eyes.

They also have a very strange call which distinguishes it as a separate species.

“It’s advertisement call is quite unique,” Kubicki said. “It’s different than any other species that has been discovered.”

The unique call is used by male frogs to attract females for mating. Rather than using calls similar to other glass frogs, H. dianae’s call is a long metallic whistle with rapid fluctuations.

The call is similar to an insect’s call, which may assisted the frog in masking itself from field herpetologists for so long. The scientists also found genetic differences in H. dianae compared to other glass frogs.

The discovery marks the second time this year Kubicki has made a notable discovery in Costa Rica. He and fellow scientist Stanley Salazar discovered the first three Costa Rican specimens of the fringe-limbed treefrog, Ecnomiohyla bailarina.

This species was discovered in Panama in 2014. The specimens discovered by Kubicki and Salazar in Costa Rica were the first E. bailarina frogs seen outside of Panama.

After 100 Years Bald Eagles Return To New York!

A young pair of Bald Eagles has been spotted in New York City! Despite the high rents, lack of green space and bad stroller traffic on the narrow sidewalks the enterprising couple have taken up residence on the South Shore of Staten Island.

The lovebirds appear to be incubating eggs, making their nest the very first New York City Bald Eagle nest reported in 100 years, New York City Audubon announced yesterday. Locals have named the male Vito and are expecting hatchlings within the next month – the egg incubation period for the birds is between 34 and 36 days.

Nobody is quite sure how many eggs are in the nest, given its height and difficult to access location.

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This marks the second pair of Bald Eagles spotted in the area this year. A tugboat captain spotted another pair on a little New York Harbor island off the coast. The young pair was observed shuttling nest material to the top of an unused dock. The birds hung around the island for a few weeks but eventually left the area. They were likely subadult Bald Eagles “playing house,” as is customary for young birds.

“We’re pretty excited that Bald Eagles are making New York City home.” the society said. “The presence of these eagles in such a densely populated human environment means two very encouraging things: the local ecosystem is a lot less polluted than it used to be, and the eagle population is getting large enough that some birds are actually getting crowded out of more remote habitats. That’s a big step for a species that appeared to be heading for extinction just a few decades ago.”

Affleck’s Family Owned Slaves and 6 Other Embarrassing Things We Learned From The Sony Leaks

The hacking of Sony this year by supposed North Korean sympathizers has been well documented – or so we thought. Earlier this week Wikileaks published over 20,000 pages of previously unseen documents stolen in the hack. They provided a convenient search tool so we could go through them without leaving the office or killing any trees.

Here’s the 10 most interesting things we learned:

(1.) The new Sony Xperia 4 looks like this and should be released this fall
Sony-Picture-hack-Xperia-Z4-leak-640x334

(2.) Amy Pascal, former co-chairman, spent $66,350 for a two day trip to Washington. She jetted in for the premiere of David Ayer‘s “Fury,” starring Brad Pitt and Shia LaBeouf. The tab included private jet travel, car services and a suite at the swanky St. Regis hotel.

(3.) Leonardo DiCaprio isn’t as green as he purports to be. The mega star took six private jet flights in just six weeks last year, spending more than $200,000 on private travel between LA and New York in such a short period of time. Perhaps he should consult his own website, Greenworldrising.org, to reduce his carbon footprint.

(4.) Harvey Weinstein is probably a bad guy. Sony accuses him of reneging on a 5 film distribution deal after only 3 films. Seems like a character fit with his latest allegations.

(5.) Angelina Jolie is a “Rampaging Spoiled Brat Living in Crazytown”. Another senior executive responded “Please kill me. Immediately.” when informed he could be working with the actress.

(6.) Snapchat is paying ex-Apple exec and iOS product head Scott Forstall 0.11% of the company to be an advisor. That’s a cool $15 million according the company’s last valuation.

(7.) PBS violated its reporting ethics rules and did not disclose Ben Affleck’s forefathers owned slaves. It’s unclear whether it was his great grandfather, a civil war mystic or his 6th great grandfather who was a revolutionary. The star aggressively sought to suppress the information and PBS finally acquiesced despite this being a clear violation of their ethical guidelines. An investigation has now commenced at the public broadcaster.

Major Concessions Needed In Comcast, Time Warner Cable Merger

The Wall St Journal reports that representatives of Comcast Corp and Time Warner Cable Inc are preparing to meet U.S. Department of Justice officials to ‘discuss’ competition concerns the agency has regarding their planned $45 billion merger.

What this really means is that in order for the deal to go through there will need to be significant concessions which could render the deal uninteresting to either of the parties. The DOJ is concerned about specific markets where little competition exists already, usually in places where the option is either Time Warner or Comcast and nobody else. The agency has shown in the past it takes these type of issues seriously, even if they are in a relatively small number of markets compared to the overall deal size.

The DOJ may also be worried about the impact the merger has on competition for internet access. As we wrote about earlier this week the cable business is facing tough times. So the DOJ, in light of cable competitors like Netflix, Amazon Prime and Yahoo, may be willing to go a bit easier on this side of the business. The problem is that the Cable business and the internet business are closely tied. The DOJ’s specific concern appears to be that the combined company would have too much power in the Internet broadband market and would have unfair competitive leverage against TV channel owners and businesses offering online video programming.

The companies will meet with both the DOJ and FTC this Wednesday and remain open to potential remedies, according to their spokespeople. It will mark the first time they have had such meetings since the deal was announced over a year ago.

While the companies sound optimistic past experience suggests the DOJ will likely ask for substantial concessions in order to approve the deal.