Two directors resign from Best Buy board

One of the more interesting companies to watch in 2013 is Best Buy (BBY), and the show started right from the get-go in 2013. As most people were getting ready to enjoy New Year’s Eve celebrations, this struggling retailer was busy confirming that two key board members were resigning, Reuters reported. Among those leaving Best Buy’s board of directors is G. Mike Mikan, who served as interim CEO between April and September this year after former CEO Brian Dunn resigned amid scandal. Director Matthew Paull is the second departure, and he is leaving in April following his retirement from the role of chief financial officer at McDonald’s in April 2008. Best Buy’s corporate policy indicates that directors must relinquish their board seats within five years of retiring from their primary careers. The struggling nationwide retailer now has four vacant seats on its board.
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Turkish agency blamed by U.S. companies for intercepted Web pages

SAN FRANCISCO (Reuters) - An agency of the Turkish government deployed a deceptive version of some Google Inc web pages, possibly to monitor activity by its employees, major Internet companies said on Thursday.
The reports are the latest in a series of incidents in which hackers or governments have taken advantage of the loose rules surrounding the standard security for financial and other sensitive sites, those with Web addresses starting with Https.
In the most recent case, an Ankara public transit agency known as EGO, obtained the capacity to validate such Web pages from a Turkish Internet authority called TurkTrust, which is among the hundreds of entities treated as reliable by all major Internet browsers, Microsoft Corp said in a blog post.
Last month, EGO issued an improper certificate that told some visitors to Google they had reached it securely when they had not, Google said. The ruse was detected because unlike other browsers, Google's Chrome warns users and the company if an unexpected certificate is authenticating a Google site.
Google asked TurkTrust, which said it had "mistakenly" granted the right to authenticate any site to two organizations in August 2011. Google also warned browser makers including Microsoft and Mozilla, makers of Internet Explorer and Firefox, and all three will now block sites that were authenticated by EGO and another TurkTrust customer.
Though only Google was demonstrably faked, giving EGO access to Gmail and search activity, many other pages could have been faked without any of the real companies knowing about it. Spokesmen for the Turkish Embassy in Washington and the consulates in New York and Los Angeles could not be reached for comment.
Few details were provided by the technology companies, but one person involved with the issue said that it appeared that the fake Google.com had been displayed on one internal network.
"The logical theory is that the transportation agency was using it to spy on its own employees," said Chris Soghoian, a former Federal Trade Commission technology expert now working for the American Civil Liberties Union.
Validation authority alone isn't enough to intercept traffic, the most likely goal of the project. The authenticator would also have to come in contact with the Web user.
A similar situation developed in 2011, when Dutch certificate authority DigiNotar said it had been hacked and that certificates had been stolen. Google later warned that a fake certificate for its site was showing up in Iran, and it warned Gmail users in that country to change their passwords.
Soghoian and other technologists have complained for years that the system behind Https sites is broken, but the industry has been slow to change.
Among other issues, the certificate authorities can resell the right to authenticate and don't have to disclose who their customers are.
"The entire Web relies on every single certificate authority being honest and secure," Soghoian said. "It's a ticking time bomb."
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Google emerges from FTC probe relatively unscathed

SAN FRANCISCO (AP) — Google has settled a U.S. government probe into its business practices without making any major concessions on how the company runs its Internet search engine, the world's most influential gateway to digital information and commerce.
Thursday's agreement with the Federal Trade Commission covers only some of the issues raised in a wide-ranging antitrust investigation that could have culminated in a regulatory crackdown that re-shapes Internet search, advertising and mobile computing.
But the FTC didn't find any reason to impose radical changes, to the relief of Google and technology trade groups worried about overzealous regulation discouraging future innovation. The resolution disappointed consumer rights groups and Google rivals such as Microsoft Corp., which had lodged complaints with regulators in hopes of legal action that would split up or at least hobble the Internet's most powerful company.
Google is still trying to settle a similar antitrust probe in Europe. A resolution to that case is expected to come within the next few weeks.
After a 19-month investigation, Google Inc. placated the FTC by agreeing to a consent decree that will require the company to charge "fair, reasonable and non-discriminatory" prices to license hundreds of patents deemed essential to the operations of mobile phones, tablet computers, laptops and video game players.
The requirement is meant to ensure that Google doesn't use patents acquired in last year's $12.4 billion purchase of Motorola Mobility to thwart competition from mobile devices running on software other than Google's Android system. The products vying against Android include Apple Inc.'s iPhone and iPad, Research in Motion Ltd.'s BlackBerry and Microsoft's Windows software.
Google also promised to exclude, upon request, snippets copied from other websites in capsules of key information shown in response to search requests. The company had insisted the practice is legal under the fair-use provisions of U.S. copyright law. Nonetheless, even before the settlement, Google already had scaled back on the amount of cribbing, or "scraping," of online content after business review site Yelp Inc. lodged one of the complaints that triggered the FTC investigation in 2011.
In another concession, Google pledged to adjust the online advertising system that generates most of its revenue so marketing campaigns can be more easily managed on rival networks.
Google, though, prevailed in the pivotal part of the investigation, which delved into complaints that the Internet search leader has been highlighting its own services on its influential results page while burying links to competing sites. For instance, requests for directions may turn up Google Maps first, queries for video might point to the company's own site, YouTube, and searches for merchandise might route users to Google Shopping.
Although the FTC said it uncovered some obvious instances of bias in Google's results during the investigation, the agency's five commissioners unanimously concluded there wasn't enough evidence to take legal action.
"Undoubtedly, Google took aggressive actions to gain advantage over rival search providers," said Beth Wilkinson, a former federal prosecutor that the FTC hired to help steer the investigation. "However, the FTC's mission is to protect competition, and not individual competitors."
Two consumer rights groups lashed out at the FTC for letting Google off too easily.
"The FTC had a long list of grievances against Google to choose from when deciding if they unfairly used their dominance to crush their competitors, yet they failed to use their authority for the betterment of the marketplace," said Steve Pociask, president of the American Consumer Institute.
John Simpson of frequent Google critic Consumer Watchdog asserted: "The FTC rolled over for Google."
David Wales, who was the FTC's antitrust enforcement chief in 2008 and early 2009, said the agency had to balance its desire to prevent a powerful company from trampling the competition against the difficulty of proving wrongdoing in a rapidly changing Internet search market.
"This is a product of the FTC wanting to push the envelope of antitrust enforcement without risking the danger of losing a case in in court," said Wales, who wasn't involved with the case and is now a partner at the law firm Jones Day.
FTC Chairman Jon Leibowitz said the outcome "is good for consumers, it is good for competition, it is good for innovation and it is the right thing to do." Before reaching its conclusion, the FTC reviewed more than 9 million pages of documents submitted by Google and its rivals and grilled top Internet industry executives during sworn depositions.
The Computer & Communications Industry Association, a technology trade group, applauded the FTC for its handling of the high-profile case.
"This was a prudent decision by the FTC that shows that antitrust enforcement, in the hands of responsible regulators, is sufficiently adaptable to the realities of the Internet age," said Ed Black, the group's president.
The FTC has previously been criticized for not doing more to curb Google's power. Most notably, the FTC signed off on Google's $3.2 billion purchase of online advertising service DoubleClick in 2008 and its $681 million acquisition of mobile ad service AdMob in 2010. Google critics contend those deals gave the company too much control over the pricing of digital ads, which account for the bulk of Google's revenue.
If Google breaks any part of the agreement, Leibowitz said the FTC can fine the company up to $16,000 per violation. Last year, the FTC determined that Google broke an agreement governing Internet privacy, resulting in a $22.5 million fine, though the company didn't acknowledge any wrongdoing.
Google's ability to protect its search recipe from government-imposed changes represents a major victory for a company that has always tried to portray itself as force for good. The Mountain View, Calif., company has portrayed its dominant search engine as a free service that is constantly tweaking its formula so that people get the information they desire more quickly and concisely.
"The conclusion is clear: Google's services are good for users and good for competition," David Drummond, Google's top lawyer, wrote in a Thursday blog post.
Google's tactics also have been extremely lucrative. Although Google has branched into smartphones and many other fields since its founding in a Silicon Valley garage in 1998, Internet search and advertising remains its financial backbone. The intertwined services still generate more than 90 percent of Google's revenue, which now exceeds $50 billion annually.
Throughout the FTC investigation, Google executives also sought to debunk the notion that the company's recommendations are the final word on the Internet. They pointed out that consumers easily could go to Microsoft's Bing, Yahoo or other services to search for information. "Competition is just a click away," became as much of a Google mantra as the company's official motto: "Don't be evil."
Microsoft cast the FTC's investigation as a missed opportunity.
"The FTC's overall resolution of this matter is weak and — frankly —unusual," Dave Heiner, Microsoft's deputy general counsel, wrote on the company's blog. "We are concerned that the FTC may not have obtained adequate relief even on the few subjects that Google has agreed to address."
FairSearch, a group whose membership includes Microsoft, called the FTC's settlement "disappointing and premature," given that European regulators might be able to force Google to make more extensive changes.
"The FTC's inaction on the core question of search bias will only embolden Google to act more aggressively to misuse its monopoly power to harm other innovators," FairSearch asserted.
Yelp also criticized the FTC's handling of the case, calling "it a missed opportunity to protect innovation in the Internet economy, and the consumers and businesses that rely upon it."
Investors had already been anticipating Google would emerge from the inquiry relatively unscathed.
Google's stock rose 42 cents Thursday to close at $723.67. Microsoft, which is based in Redmond, Wash., shed 37 cents, or 1.3 percent, to finish at $27.25.
In a research note Thursday, Macquarie Securities analyst Benjamin Schachter described the settlement as "the best possible outcome" for Google. "We believe that the terms of the agreement will have very limited negative financial or strategic implications for the company." Schachter wrote.
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Lens maker Cooke Optics to receive technical Oscar

LOS ANGELES (AP) — The first Oscar recipients of the new year were announced Thursday by the Academy of Motion Picture Arts and Sciences.
Lens makers Cooke Optics Limited will receive an Award of Merit Oscar at the academy's Scientific and Technical Awards banquet Feb. 9 at the Beverly Hills Hotel.
The academy says Cooke Optics is receiving the award "for their continuing innovation in the design, development and manufacture of advanced camera lenses that have helped define the look of motion pictures over the last century."
The academy announced nine recipients of awards honoring various other technical movie-making achievements. Portions of the Scientific and Technical Awards presentations will be included in the Academy Awards broadcast on Feb. 24.
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Sprint will reportedly launch its own prepaid plans on January 25th

Sprint Prepaid SerivceSprint

There are choices on the market if you are looking for prepaid options from Sprint (S). The carrier offers no-contract plans through two subsidiaries, Boost Mobile and Virgin Mobile, and also has roaming deals in place with Republic Wireless, which provides $19-per-month unlimited service. According to alleged internal documents obtained by AndroidPolice, Sprint may be looking to enter the prepaid business itself and offer self-branded no-contract phones to consumers. The carrier will reportedly offer unlimited talk, text and web for $70, however there are a few catches. The prepaid service isn’t available with most Sprint smartphones such as the Galaxy S III and is only compatible with two 3G handsets: The LG (006570) Optimus Elite and Samsung (005930) Victory.
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Venezuelans obsess: Will Chavez live or die?

CARACAS, Venezuela (AP) — He's getting better. He's getting worse. He's already dead. The whole thing is a conspiracy and he was never sick in the first place.
The obsessive, circular conversations about President Hugo Chavez's health dominate family dinners, plaza chit-chats and social media sites in this country on edge since its larger-than-life leader went to Cuba for emergency cancer surgery more than two weeks ago. The man whose booming voice once dominated the airwaves for hours at a time has not been seen or heard from since.
His lieutenants have consistently assured Venezuelans over the last week that Chavez is slowly on the mend and will be back at the helm of the country he has dominated for 14 years. But when will he be back? Will he be well enough to govern? What type of cancer does he have? Is it terminal? If so, how long does he have to live?
Government officials have not answered any of those questions, leaving Venezuelans to their own speculations. The wildest conspiracy theories run the gamut from those who say there is no proof Chavez is even still alive to those who believe his illness is a made-up play for sympathy.
"Everything has been a mystery. Everyone believes what they want about the status of his health," said Ismael Garcia, a leftist lawmaker who belonged to the Chavez movement until a falling-out a few years ago.
Vice President Nicolas Maduro read out a New Year message from Chavez to Venezuelan troops on Friday, but for the fourth day in a row offered no updates on the president's health. Maduro had announced Monday night that Chavez was walking and doing some exercises.
The uncertainty comes with a sense of urgency because Chavez is scheduled to be sworn in for a new six-year term Jan. 10. The government and opposition disagree on what should happen if Chavez can't show up, raising the threat of a destabilizing legal fight. Beyond that, nobody knows if Chavez's deputies, who have long worked under his formidable shadow, can hold the country together if he dies.
Like everything else in this fiercely divided country, what people believe usually depends on where their political loyalty lies. Chavez opponents are mostly convinced that the president has terminal cancer, has known it for a long time and should not have sought re-election in October. His most fervent supporters refuse to believe "El Comandante" will die.
"Chavez is going to live on. He is a very important man. He has transformed the world with his ideology," said Victor Coba, a 48-year-old construction worker standing outside a Caracas church as government officials held a Mass to pray for the leader. "Anyone of us will die first before Chavez."
Coba scurried off to a street corner where officials were handing out a book of photographs of Chavez's recent presidential campaign. The comandante's grinning face looked out from the cover, alongside the slogan "Chavez, the heart of my country."
The same image looms from billboards erected all over Caracas, from freeway medians to the low-income apartment towers being built with Venezuelan oil wealth. Such services for the poor have helped Chavez maintain a core of followers despite high inflation, rampant gun violence, trash-strewn cities and other problems he has failed to fix.
For many, the attachment to Chavez borders on religious reverence. His supporters wish each other "Feliz Chavidad" rather than "Feliz Navidad," or Merry Christmas. Government officials have started talking about Chavez like an omnipresent deity.
"Chavez is this cable car. Chavez is this great mission. The children are Chavez. The women are Chavez. The men are Chavez. We are all Chavez," Maduro said recently while inaugurating a cable car to bring people down from one of the vast slums that creep up Caracas' hillsides. "Comandante, take care of yourself, get better and we will be waiting for you here."
Crowds of red-clad supporters roar their approval each time Maduro reassures them. But on the streets, confusion reigns.
"People say he's going to get better," said Alibexi Birriel, an office manager eating at a Chinese restaurant on Christmas Day.
Her husband Richard Hernandez shook his head. "No. Most people say Chavez is going to die and that Nicolas Maduro is going to take power."
Birriel paused, chiming in, "Well, some think this whole thing is theater and that there's nothing wrong with him."
Hernandez, who described himself as a Chavez supporter but "not a fanatic," shrugged. "The opposition thinks that if Chavez died they are going to win the elections. That is not going to happen."
There have been some official details. Chavez, 58, first underwent surgery for an unspecified type of pelvic cancer in Cuba in June 2011 and went back this month after tests had found a return of malignant cells in the same area where tumors had already been twice removed. Venezuelan officials said that following a six-hour surgery Dec. 11, Chavez suffered internal bleeding that was stanched and a respiratory infection that was being treated.
Just five months earlier, Chavez had announced he was free of cancer. But he acknowledged the seriousness of his illness earlier before flying to Cuba this month by designating Maduro as his successor and telling his supporters to vote for the vice president should new elections be necessary. Outside doctors have said that judging from the information Chavez has provided, his cancer is likely terminal, though the government has never confirmed that.
On Christmas Eve, Maduro surprised Venezuelans by saying he had spoken to Chavez by telephone and that the president was up and walking. With no other details, that only set off another round of furious speculation.
"I don't think he can be standing up walking," said Dr. Gustavo Medrano, a lung specialist at the Centro Medico hospital in Caracas. "Unless ... there are a lot of lies in this and the surgery was not six hours ... but something else much simpler, much simpler, maybe a half-hour operation, or two hours, something like that and that he is now recovering. That is possible."
Chavez supporters tweeted their relief and joy. Opponents tweeted incredulity. They traded insults in the comment sections of newspaper websites. Some posters demanded to know where the proof was that the president was even still alive. Others wondered if he had ever been sick in the first place. Chavez supporters shot back that the rumor-mongering should stop.
One Chavez foe finally posted on the Ultimas Noticias newspaper website, "Bla, bla, bla ... He's getting better, he's dying, he has nothing, he's strong as a bull, he can't get of bed, all the hypotheses are valid because there is no proof of anything."
Amid the raging rumors, Chavez's daughter, Maria Gabriela Chavez, sent out a Twitter message from Havana last week pleading for it all to stop.
"Respect for my family and especially respect for my people. Enough lies! We are with papa. ALIVE, fighting and recovering. WITH GOD," she wrote.
Teresa Maniglia, a press officer at the presidential palace, has kept up a steady stream of cheerleading tweets.
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Mexico finds smuggling tunnel near US border

MEXICO CITY (AP) — Mexican authorities have discovered a sophisticated smuggling tunnel equipped with electricity and ventilation not far from the Nogales port of entry into Arizona, U.S. and Mexican officials said Friday.
The Mexican army said the tunnel was found Thursday after authorities received an anonymous call in the border city of Nogales, Sonora, south of Arizona. U.S. law enforcement officials confirmed that the Mexican military had discovered the football field-long tunnel with elaborate electricity and ventilation systems.
U.S. Border Patrol spokesman Victor Brabble said the tunnel did not cross into the U.S.
The army said the anonymous caller was reporting gunmen standing outside a two-story house in a hilly neighborhood near the international bridge where motorists travel between Mexico and the United States.
Inside the house, soldiers discovered a fake wall inside a storage closet under a staircase that led to a dark room with buckets and clothes. After lifting a drain cover in that room, soldiers found another staircase at the entrance of the tunnel that went 16 feet underground and measured a yard in diameter. Light bulbs lit the underground passage and pipes stretched across the 120-yard tunnel that Mexican army officials believe was built to smuggle drugs.
It was unclear whether officials made any arrests, but the house where the tunnel was found was seized by the local government. Military officials did not say how long they believed the tunnel had been under construction, but authorities say it can take six months to a year to build such a passage.
Sophisticated secret tunnels stretching across the international border have become increasingly common as drug cartels invent new ways to smuggle enormous loads of heroin, marijuana and other drugs into U.S.
More than 70 such tunnels have been found since October 2008, most of them concentrated along the border in California and Arizona. In Nogales, Arizona, smugglers tap into vast underground drainage canals.
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Venezuelan VP heads to Cuba to visit ailing Chavez

HAVANA (AP) — Venezuela's vice president arrived in Havana to visit President Hugo Chavez as he recovers from cancer surgery, Cuban official media said early Saturday.
Communist Party newspaper Granma published online a photo of Vice President Nicolas Maduro being greeted at the airport in the Cuban capital by the island's foreign minister, Bruno Rodriguez.
"From there, (Maduro) went directly to the hospital where President Hugo Chavez Frias is receiving treatment to greet his family members and Venezuelan Science and Technology Minister Jorge Arreaza Monserrat, and to discuss with doctors the adequate moment to visit the President the same day," the paper said.
Granma added that Maduro was accompanied by Venezuelan Attorney General Cilia Flores.
The previous night in Caracas, Venezuela, Maduro did not specify how long he would be away but said Energy Minister Hector Navarro would be in charge of government affairs in the meantime.
Maduro's trip comes amid growing uncertainty about Chavez's health.
The Venezuelan leader has not been seen or heard from since undergoing his fourth cancer-related surgery Dec. 11, and government officials have said he might not return in time for his scheduled Jan. 10 inauguration for a new six-year term. There have been no updates on Chavez's condition since Maduro announced Monday night that he had received a phone call from the president who was up and walking.
Maduro is the highest ranking Venezuelan official to visit Chavez since the surgery. Bolivian President Evo Morales traveled to Cuba last weekend in a quick trip that only added to the uncertainty surrounding Chavez's condition. Morales has not commented publicly on his visit or even confirmed that he saw Chavez while he was there.
Earlier Friday, Maduro read a New Year message from Chavez to Venezuelan troops, though it was unclear when the president composed it.
"I have had to battle again for my health," Chavez said in the message. He expressed "complete faith in the commitment and loyalty that the revolutionary armed forces are showing me in this very complicated and difficult moment."
A group of opposition candidates demanded Friday that Maduro provide an official medical report on Chavez's health. Lawmaker Dinorah Figuera said the country needs "a medical report from those who are responsible for the diagnosis, evaluation and treatment of the president."
"The Venezuelan people deserve official and institutional information," Figuera told Venezuelan media.
Before leaving for Cuba, Chavez acknowledged the precariousness of his situation and designated Maduro as his successor, telling supporters they should vote for the vice president if a new presidential election was necessary.
A legal fight is brewing over what should happen if Chavez, who was re-elected in October, cannot return in time for the inauguration before the National Assembly.
National Assembly Diosdado Cabello insisted Monday that Venezuela's constitution allows the president to take the oath before the Supreme Court at any time if he cannot do it before the legislature on Jan. 10.
Opposition leaders argue the constitution requires that new elections be held within 30 days if Chavez cannot take office Jan. 10. They have criticized the confusion over the inauguration as the latest example of the Chavez government's disdain for democratic rule of law and have demanded clarity on whether the president is fit to govern.
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Bolivia expropriates Spanish energy subsidiaries

LA PAZ, Bolivia (AP) — President Evo Morales nationalized the Bolivian electricity distribution subsidiaries of the Spanish energy company Iberdrola in a public ceremony Saturday.
Morales issued a decree allowing the takeover of shares in Empresa de Electricidad de La Paz (Electropaz) and Empresa de Luz y Fuerza de Oruro (Elfeo), which supply energy in this Andean nation.
Soldiers guarded the installations of the electricity distribution companies, marked with signs reading: "Nationalized."
In the ceremony at Bolivia's government palace, Morales also announced the expropriation of an investment management company and a service provider belonging to the Spanish energy giant.
Morales said he had "been forced to take this step" to ensure that electric service rates remain "equitable" in the regions of La Paz and Oruro.
The Spanish government said in a statement that it regretted Bolivia's decision to nationalize companies that included "Spanish, Argentine and American companies among its shareholders."
Spain said it hoped "the process of assessing the value of the nationalized company is done with high standards of objectivity that would establish the just compensation to which shareholders are entitled."
Telephone calls and emails seeking comment from Iberdrola in Spain were not immediately answered.
The decree read by Morales calls for Iberdrola to receive indemnification after an independent firm is hired within 180 days to determine the value of the nationalized shares.
Morales in May also nationalized Transportadora de Electricidad belonging to Spanish company Red Electrica, which controlled 74 percent of energy transmission in Bolivia.
In his first year in office in 2006, the Bolivian president nationalized the oil industry through a renegotiation of contracts with a dozen oil companies, including Repsol, Petrobras, BG and Total.
In 2009 Morales transferred to state control the country's largest telephone operator, which had been controlled by Italy's ETI, and in 2010 he did the same with the four largest power generators, which had belonged to French-owned Suez, Rurelec of Britain and Bolivian shareholders.
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Mexico City orders prison in animal cruelty cases

MEXICO CITY (AP) — Mexico City lawmakers have approved prison terms for animal cruelty, previously considered a civil offense sanctioned with fines and detentions.
The capital's legislative assembly unanimously agreed that people who intentionally abuse and cause animals harm will face up to two years in prison and pay up to $500. If the animal is killed, they can face up to four years in prison and a $2,000 fine.
Antonio Padierna, president of the assembly's law enforcement and justice committee, said late Friday that if animals are killed for food, the death must be quick and not cause pain.
The lawmakers agreed current administrative laws weren't doing enough to end animal cruelty. In Mexico City, animals are sometimes killed by being burned, beaten or shot.
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