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Article from GigaOm.

“For each of the past five years, IBM has come up with a list of five innovations it believes will become popular within five years. In this, the sixth year, IBM has come up with the following technologies it thinks will gain traction. Hold on to your sci-fi novels, because some of these are pretty out there. And some of them, well, I wish we had some of them today.

  • People power will come to life. Advances in technology will allow us to trap the kinetic energy  generated (and wasted) from walking, jogging, bicycling and even from water flowing through pipes. A bicycle charging your iPhone? There’s nothing wrong with that, though I think it might be a while before we see this actually become a mainstream practice.
  • You will never need a password again. Biometrics will finally replace the password, and with that, redefine the phrase “hack.” Jokes aside, IBM believes multi-factor biometrics will become pervasive. ”Biometric data – facial definitions, retinal scans and voice files – will be composited through software to build your DNA-unique online password.” Just based on the increasing hours we spend online, I would say we need solutions such as the ones proposed by IBM labs to come to market ASAP.
  • Mind reading is no longer science fictionScientists are working on headsets with sensors that can read brain activity and recognize facial expressions, excitement and more without needing any physical inputs from the wearer. “Within [five] years, we will begin to see early applications of this technology in the gaming and entertainment industry,” IBM notes. It will also be good for folks who have suffered from strokes and have brain disorders. Personally, I’m not sure this is commercially viable within the stated five years.
  • The digital divide will cease to exist. Mobile phones will make it easy for even the poorest of poor to get connected. In the U.S. and other parts of the world, this is already happening.
  • Junk mail will become priority mail. ”In five years, unsolicited advertisements may feel so personalized and relevant it may seem that spam is dead. At the same time, spam filters will be so precise you’ll never be bothered by unwanted sales pitches again,” notes IBM. I have just one thing to say about this prediction: OMG!

Is IBM any good at this prediction stuff?

New predictions aside, IBM’s track record of predictions over past five years has been somewhat mixed. Let’s take a step back to 2006 and look at its predictions:

  • We will be able to access healthcare remotely, from just about anywhere in the world.
  • Real-time speech translation—once a vision only in science fiction—will become the norm.
  • There will be a 3-D Internet.
  • Technologies the size of a few atoms will address areas of environmental importance.
  • Our mobile phones will start to read our minds.

Remote healthcare is a reality, but real-time speech translation is well, not quite as real. The 3-D Internet: We’re still waiting for that, but those mobile phones are becoming awfully smart. As I said, it’s mixed in its predictions. In 2007, IBM correctly predicted driving would be assisted by software and your phones would become “your wallet, ticket broker, concierge, bank, shopping buddy and more.” But that was right after iPhone launched.

As another example, in 2009, IBM predicted city buildings would “sense and respond” like living organisms. That sensor-based future is finally unfolding two years later. That same year, they predicted cars and buses would run on hydrogen and biofuels. Well, it’s half-true. We have some places where some buses and some cars are running on biofuels. However, their prediction that cities will develop a healthier immune system due to connectedness is quite far from reality. Although we still have a little more than two years to go before we can say IBM got those wrong.

What’s the bottom line?

IBM’s 5 in 5 makes a nice cheat sheet to keep an eye on the future and also focus on key trends that might go big. I can’t wait for the 2012 edition.”

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Article from GigaOm.

Zynga has officially made its public market debut. The social gaming company’s stock began trading on the NASDAQ stock market at just after 11:00am Eastern Time (8:00am Pacific Time) on Friday morning with an opening price of $11.00, a significant bump up from its initial public offering price of $10.00.

Right out the gate, Zynga was not as much of a runaway success as other web stocks such as LinkedIn on its IPO day: Within the first ten minutes Zynga was on the market, its shares already dipped below the IPO price, reaching as low as $9.48.

But as we’ve written before, covering the ups and downs of a company’s stock price on its first day of trading is a bit of a horse race. It will take much more time to gauge Zynga’s success as a public company, and the idea of going public is to build toward longer-term sustainable operations.

Right now, the most salient fact is that Zynga is officially a public company and it has raised $1 billion in its IPO, the biggest Internet IPO since Google went public more than seven years ago. Founder and CEO Mark Pincus rang the NASDAQ opening bell on Friday morning remotely from Zynga’s San Francisco headquarters, accompanied by his wife Alison. The whole thing is a success in itself for the four-and-a-half year old company, and it’s likely that regardless of the stock’s first-day ups and downs, today will be a happy one for many of its founders, investors and employees.

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Article from SFGate.

Forecasts solid for 2012 profits

“Profit forecasts for computer and software makers are holding up better than any other industry in the world, a sign of confidence that corporate spending will keep the American economy expanding next year.

Net income at companies from Apple Inc. to Oracle Corp. will rise 11 percent in 2012 on average, according to more than 2,900 analyst projections compiled by Bloomberg. The profit estimate is down 2.3 percent from its peak this year, the smallest reduction of any industry in the MSCI World Index.

The resilience in technology, which accounts for more of the U.S. market than any other industry, underscores optimism that the American economy is recovering.”

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Article from Bloomberg.

China’s reduction in reserve requirements for banks, the first since 2008, may signal government concern that a slowdown in the world’s second-biggest economy is deepening.

Reserve ratios will decline by 50 basis points effective Dec. 5, the central bank said on its website yesterday. The move may add 350 billion yuan ($55 billion) to the financial system, according to UBS AG.

A report due today may show that China’s manufacturing contracted for the first time since February 2009, and the nation’s stocks had their biggest decline in almost four months yesterday. Premier Wen Jiabao aims to sustain the economic expansion as Europe’s debt crisis saps exports, a credit squeeze hits small businesses and a crackdown on real-estate speculation sends home sales sliding.

“The deceleration of growth may have become faster than expected on increased external uncertainty, a sagging property market” and difficulties for smaller companies, said Liu Li- gang, a Hong Kong-based economist with Australia & New Zealand Banking Group Ltd. who previously worked for the World Bank. The manufacturing report may be “worse than expected,” Liu said.

The Purchasing Managers’ Index may dip to 49.8 for November, a level marking a contraction, according to the median estimate in a Bloomberg News survey of 18 economists. That data is due at 9 a.m. local time today. Consumer price gains eased to 5.5 percent in October, compared with a government target of 4 percent, as exports rose the least in almost two years.

Joint Action

The policy move yesterday came two hours before the U.S. Federal Reserve, the European Central Bank and the monetary authorities of the U.K., Canada, Japan and Switzerland said they were cutting the cost of emergency dollar funding to ease strains in financial markets.

Spurring lending in China, the nation that contributes most to global growth, may boost confidence as Europe’s crisis worsens. Stocks and the euro rallied after the moves.

China is at “the beginning of monetary easing,” said Qu Hongbin, a Hong Kong-based economist for HSBC Holdings Plc, adding that “aggressive” action is warranted. While more reserve-ratio cuts may follow, interest rates may remain unchanged until inflation is below 3 percent, he said.

The latest change means that reserve requirements for the biggest lenders will fall to 21 percent from a record 21.5 percent, based on past statements.

‘Liquidity Crunch’

Mizuho Securities Asia Ltd. said that the timing of the Chinese announcement “could be linked” to the move by the Fed and others. In October 2008, China cut interest rates within minutes of reductions by the Fed and five other central banks as the global financial crisis worsened.

“Some form of coordination may have gone into this,” said Ken Peng, a Beijing-based economist at BNP Paribas SA. “But I think China is pretty urgently in need of a reserve ratio requirement cut anyway — otherwise, we’d have a liquidity crunch in the New Year.”

Barclays Capital yesterday forecast at least three more reserve ratio cuts by mid-2012 and said two interest-rate reductions are likely next year.

Yesterday’s move may have been partly a response to inflows of foreign-exchange drying up, according to UBS’s Hong Kong- based economist Wang Tao. Central bank data released this month suggested that capital has been flowing out of China.

Growth is slowing across Asia, the region that led the world recovery, with India today reporting its economy expanded the least in two years and Thailand cutting interest rates. In China, the clampdown on property speculation has added to the threat of a deeper slowdown after a 9.1 percent expansion in the third quarter that was the smallest in two years.

Home Sales

Property risks are “overshadowing” the outlook as falling sales threaten to trigger developer collapses, the Organization for Economic Cooperation and Development said this week. Agile Property Holdings Ltd. (3383), the developer in which JPMorgan Chase & Co. owns a stake, has said it will stop buying land until at least February and is slowing construction at some projects.

October housing transactions declined 25 percent from September and prices fell in 33 of 70 cities, according to government data. The Shanghai Composite Index fell 3.3 percent yesterday after Xia Bin, an academic adviser to the central bank, said credit should remain “relatively tight” and people shouldn’t hope for a reversal of housing market curbs.

China hasn’t raised interest rates since July, the longest pause since increases began in October last year. Benchmark one- year borrowing costs stand at 6.56 percent. The last interest- rate cut was in December 2008, during the global financial crisis.

Premier Wen Jiabao said last month the government will fine-tune economic policies as needed to sustain growth while pledging to maintain curbs on real estate.”

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Article from SFGate.

“If Facebook is like hanging out at a banquet with a large buffet to feast on, then social network Path is an intimate dinner with close friends. Path is now getting new silverware and table decorations, so to speak, with the release of updated software.

CEO Dave Morin, a Facebook alum, says the dinner-party philosophy remains but users can now share their comings and goings with up to 150 friends, up from the original 50.

With the new version available this week, a year after its debut, Path aims to be more than a sharing application. It wants to be a digital journal that documents your days with a push of a button.

Morin describes it as “a slightly social experience.” You’re not just updating it to share your day with others; you’re recording your life for yourself.

“The idea has always been to give you a trusted place to share with your close friends and family,” Morin said. “Now that the (mobile phone) is the accessory you have in your hand all the time, it’s become a journal.”

Path began as an iPhone application for sharing photos and videos. Users later got the ability to add one of five emoticons to their friends’ photos.

The new version lets users post music and tell everyone where they are, with whom and whether they are awake or asleep. It’s also compatible with Android-running phones for the first time. And, it includes technology that allows the application to make updates on its own, as long as the user agrees to it, or opts in.

For example, if you fly to Minneapolis, the application can track you with GPS and post this when you land: “Arrived in Minneapolis, it’s 6:06 p.m. Mostly cloudy and 50 degrees.” The location updates are neighborhood and city specific but will not pin an actual location.

Morin says the auto-updates make it easier for users to share richer content without much effort. And, while the details may seem personal, your network is only of close friends and family.

The update retains strict privacy controls, which Morin says is key to making people comfortable with sharing, especially in the wake of high-profile debates over privacy issues at Facebook.

On Tuesday, the government announced a proposed settlement with Facebook over “unfair and deceptive” business practices. The pact requires the company to get people’s approval before changing how it shares their data.

The new version of Path integrates larger social networks Facebook, Twitter and Foursquare, allowing status updates to those sites from the Path application.

Morin says the San Francisco-based startup has enough funding for its next stage and just hired its 20th employee. Path has more than 1 million users.”

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