body~politic

~~~~~~~~~> Does DEBT  become SERFDOM ?

Tweet me @ColonialSerf, and let me know, and I'll share the answers HERE!!!

Saturday, January 8, 2011

aliteracy

http://mw4.merriam-webster.com/dictionary/aliteracies

aliteracy


alit·er·a·cy

noun \ˌā-ˈli-tər-ə-ˌsē, ə-ˈ\

Definition of ALITERACY

: the quality or state of being able to read but uninterested in doing so
alit·er·ate \-ˈli-tər-ət\ adjective or noun

First Known Use of ALITERACY

1984

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Friday, January 7, 2011

U.S. tax code ripe for reform

http://www.reuters.com/article/idUSN0613943720110106

U.S. tax code ripe for reform- Senate leader

Thu Jan 6, 2011 5:17pm EST
* Both parties say U.S. tax code a mess
* Corporate rate too high, both sides agree
* Broad reform could take years - analysts (Adds McConnell, analyst, chamber details)
By Kim Dixon
WASHINGTON, Jan 6 (Reuters) - The U.S. tax code is "ripe" for reform and fixing it will be a top priority for Democrats this year, Senate Majority Leader Harry Reid said on Thursday.
Both parties agree the voluminous tax code needs a rewrite and the Democratic-led Senate and Republican-led House of Representatives will begin hearings soon on an overhaul.
"I do believe the country is ripe for tax reform," Reid said at a news conference. "Our tax system is broken and needs to be fixed."
Republican Senate leader Mitch McConnell said his party also backed an overhaul, but that President Barack Obama needed to take the lead.
"We all know the tax code is a disaster and any effort to simplify the tax code, to get the rates down, to make it more fair, I think we'd be open to discussing that," McConnell said.
Treasury Secretary Timothy Geithner plans to meet next week with chief financial officers of major companies to talk about corporate tax reform in particular, a Treasury spokeswoman said.
Obama is making overtures to corporate America to mend fences after bruising battles over healthcare and financial reform during the Democratic president's first two years in office.
Obama has said he is interested in finding ways to cut the 35 percent top corporate rate.
Analysts say Obama needs to push hard if tax reform is to have a chance of advancing. Most believe the next two years of hearings and debate will lay the groundwork for a potential overhaul if Obama is elected to a second term.
"Corporate tax reform efforts have been under way in Congress and the White House for years," MF Global analyst Anne Mathias said. "2011 may finally be the time to get a deal done, but our odds are still under 50 percent."
The Chamber of Commerce is drafting fundamental principles on corporate tax reform, which will include a lower tax rate but preserve several cherished tax breaks for companies.
Taxation of foreign income will be one key sticking point. Obama has several times proposed limiting deferral of taxes on income earned abroad, which could cost multinational companies tens of billions of dollars.
A host of deficit-fighting proposals have proposed cutting corporate tax incentives, such as a deduction used by oil and gas companies for domestic production. (Additional reporting by Andy Sullivan; Editing by Peter Cooney)

Paper Bull

http://newsfarm.blogspot.com/2009/02/paper-bull.html

Paper Bull

After World War II, China referred to the United States as a paper tiger, meaning that we looked threatening but were actually very weak.  Nobody gave the thought any real credit because we seemed to do pretty well for 60 years, but I think that we have to give that sentiment another look with the realization of recent events.

For sixty years we were the dominant economy on the globe, in fact our money was in many ways more powerful than our military.  Then we started borrowing to afford a military occupation.  It seems that while our military is being given a bad name overseas our economy is being given over to other hands.  The power of the United States during the Second World War came from our ability to mobilize the entire economy for war and our unified belief that our cause was in good faith.  Now the money comes from China and I think we can agree that most people don't think the military is doing the right thing.

I don't mean that individual soldiers are acting improperly by serving their country.  I mean that the leadership is making poor decisions on how to use the military.  Get off me.  God.  You people and your patriotism.

Back to what I was saying.  Our hard power has crumpled like a cheap piece of paper and the tiger of our influence has been declawed.

China on the other hand, is the third largest growing economy behind us and Japan.  In a couple years they expect to pass Japan.  They are working hard with Russia to improve a relationship that has been rocky at best.  They are working with Iran to give them nuclear power, if not also weaponry, because they recognize that Iran is a power in the making.  China is also making sure that they don't allow territories like Tibet or Taiwan out of their grasp because it allows them to feel the power of their permanent seat on the U.N. Security Council.  They are buying up United States debt to make their economy powerful over ours.  They have been a bull in the market of debt.  They have been optimistic that we would be able to pay off our debts.  Unfrtunately, just as banks are realizing that many people they gave mortgages to are unable to pay them off, China will learn that we are currently unable to pay them off.  Their economic prowess is merely a show.  They are no more certain than we are but their authoritarian control allows them to seem united regardless of fact.

We are more of a paper tiger than anyone in the government wants to allow for, but China is also a paper bull.  The only problem with everyone being made of paper is that inflation can be a real pain in the ass.

Concern over proposed Greek border fence

http://www.cnn.com/2011/WORLD/europe/01/04/greece.border.fence/

Concern over proposed Greek border fence

By Elinda Labropoulou, For CNN
January 4, 2011 12:24 p.m. EST
A Greek guard patrols the Greek-Turkey border last month. Greece is building a 12-kilometer wall along the border.
A Greek guard patrols the Greek-Turkey border last month. Greece is building a 12-kilometer wall along the border.
STORY HIGHLIGHTS
  • Greece has proposed building a fence along its border with Turkey
  • Humanitarian groups say it will hurt asylum seekers
  • The Greek government says it will help curb illegal immigration
RELATED TOPICS
  • Greece
  • Turkey
Athens, Greece (CNN) -- Greece's decision to build a 12-kilometer (7.5-mile) fence along its border with Turkey in a bid to curb illegal immigration has caused mixed reactions, with humanitarian agencies saying the fence could prevent asylum seekers from reaching safety.
Greek Public Order Minister Christos Papoutsis announced the decision, saying "action is necessary" because more than 100,000 people have entered Greece illegally in the past year, and the country "can no longer tolerate such high numbers."
The European Union border control agency Frontex has said that in October 2010, an average of 245 people per day crossed into Greece illegally, mostly from the overland crossing with Turkey in northeastern Greece. That's where the proposed fence is to be built.
"The fence in question is to act as a preventive measure to curb illegal immigration and will be constructed along the country's only overland border with Turkey," the Public Order Ministry told CNN.
The rest of the border between the two countries is a 200-kilometer (124-mile) river. Illegal migrants usually cross into Greece on inflatable boats or even on foot in the summer, when the waters are low.
The ministry has described the 12-kilometer area for the proposed fence as "a series of country roads with no clear border demarcations."
The Communist Party of Greece has criticised the measure as "barbaric," and humanitarian agencies have expressed concern that the fence could prevent asylum seekers and others in need from reaching safety.
Kalliopi Stefanaki, the UNHCR protection officer for Greece, has described the fence as a "strong measure" but said every country has the right to guard its own borders.
"We agree that Greece in entitled to enhance security at its borders in any way it sees fit," she said. "What we are concerned about is that the rights of those who want to cross this, or any other border, to request protection are protected."
The UNHCR has repeatedly urged Greece and Turkey to update their asylum systems.
"We believe there is a lot of room for improvement on this issue," said Stefanaki. "Greece is not meeting international standards regarding its asylum system."
Commenting on the fence proposal, the European Commission said it would be a "short-term measure" that does not address the heart of the problem. The EU has instead asked for structural measures to discourage traffickers and smugglers.
Official figures show that currently about 90% of migrants who illegally enter the European Union do so through Greece.
"The idea of building more walls around a Fortress Europe is outdated," said Daniel Esdras, the head of the Greek office for the International Organization for Migration.
He also called for more international cooperation in addressing the issue.
"These are not just Greece's borders, but also those of the European Union," Esdras said. "And people will carry on trying to reach a better life unless conditions in their home countries are improved. This is something governments should together be focusing on."
A timeline for the creation of the fence has not been given. The Public Order Ministry says the proposal is still at an initial stage.

Thursday, January 6, 2011

Horsemen rally to revive horse slaughter industry

http://www.cnbc.com/id/40934730/

Horsemen rally to revive horse slaughter industry

Published: Wednesday, 5 Jan 2011 | 8:43 PM ET
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LAS VEGAS - Horses should be slaughtered and processed in the United States and then sold as food to other countries that regularly consume the lean, tender meat, speakers said Wednesday at a conference aimed at reviving the country's unpopular horse processing industry.
Horses, traditionally regarded in the U.S. as companions or distinguished beasts, have been elevated to a position where they mistakenly are no longer treated as livestock ripe for consumption, argued slaughter proponents at the first Summit of the Horse conference.
Not eating the animals, in fact, disregards the food chain's natural cycle that sustains all creatures, said Sue Wallis, vice president of the United Horseman group of Wyoming, which organized the conference.
"It's not intuitive," Wallis said of the country's ban on horse processing.
The consumption of horses has long been taboo in the United States, where cows, pigs and chickens are considered the protein of choice. Only three horse slaughterhouses remained in the country in 2007, when complaints over inhumane slayings and unsafe conditions prompted Congress to effectively ban horse processing.
Animal rights groups claim there is no humane way to slaughter horses because of the animals' shape and sensitivity to smells and sounds. They want Congress to outlaw any transactions that could lead to horse slaughters, including the animals' sale to overseas processing plants.
"The industries that existed never were able to find a way to do it in a humane way," said Keith Bane, director of equine protection for the Humane Society of the U.S. "They are very distinctive, in tune to sounds and smells and fears. They smell the blood of the other horses being lead to slaughter, and they panic."
But slaughter proponents say animal rights groups are pushing romantic notions of a noble beast that once defined the untamed West. Horses, they say, are no different from lambs, cows, pigs or other animals treated as food.
Proponents hope the summit — attended by nearly 200 ranchers, breeders and lawmakers — will draw attention to an untapped economic resource. Reopening horse slaughterhouses, they said, would create jobs and increase the market value of an animal whose sale price has plummeted in recent years.
Horses are now shipped to Canada and Mexico to be slaughtered there, a cost-prohibitive expense for many horse owners.
"We want to see horse plants all over the country so you don't have the hassle of these long hauls," said Ed Butcher, a former Montana state legislator. "We are looking at plants that will probably kill 100 horses a day, nothing big."
Conference participants are spending three days discussing humane horse slaughter methods, how to battle animal rights groups and the devastation wrought by uncontrolled populations of wild horses that compete with other species for water and forage.
Temple Grandin, an animal science professor at Colorado State University, said shuttering the United States' heavily regulated horse slaughterhouses has allowed inhumane processing factories to flourish in other nations.
Horse meat remains a dietary staple in Japan, China, France, Belgium, Germany and Mexico. But the United States' stomach for horse meat shrank after World War II, when the consumption of Black Beauty's brethren largely fell out of fashion.

Slaughter advocates claim unwanted horses are aggravating the nation's already overpopulated horse supply.
The Bureau of Land Management oversees more than 38,000 wild horses and burros in 10 western states. Another nearly 38,000 are in holding facilities in Kansas, Oklahoma and South Dakota.

The cost of the federal horse management program rose from about $37 million in 2004 to $66 million in 2010.

The soaring expense is in many ways tied to recent years of economic stress, in which families have been unable or unwilling to adopt wild or abandoned horses as frequently as they did in the past.
Slaughter proponents say the federal ban contributes to the problem because it increases competition for homes by creating more unwanted horses.
Federal officials have banned horse slaughter as a solution, but have been less zealous about taking a stance against the slaying of privately owned horses.
"We are not entertaining the use of slaughterhouses or selling horses for slaughter at all," Bureau of Land Management Director Bob Abbey said after addressing the horse conference Tuesday, adding, "I'm not going to speak to private horses or livestock."
Animal rights groups claim overbreeding, not unchecked population control, is to blame for growing numbers of homeless horses.
"Those pushing to wish to profit from the butchering of America's horses must find another way to earn a living," said Suzanne Roy, campaign director of the American Wild Horse Preservation, in an e-mail.
Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Pakistan Rolls Back Fuel Price Increases

http://www.nytimes.com/2011/01/07/world/asia/07pakistan.html


Pakistan Rolls Back Fuel Price Increases

ISLAMABAD, Pakistan — Battling to keep his government together, Prime Minister Yusuf Raza Gilani announced Thursday that he would reverse a recent increase in fuel prices that had led to public discontent and was used as a pretext by a major political party to quit the ruling coalition.
Mr. Gilani made the announcement during a session of the national assembly in Islamabad and said the decision was supported by all of Pakistan’s political parties.
Opposition parties hailed the price shift but there were no initial indications that Muttahida Qaumi Movement, the political party that broke with the government last Sunday, planned to rejoin.
While Mr. Gilani and his Pakistan Peoples Party struggled to save the ruling coalition from collapse, the country faced deepened divisions between religious and secular forces in the aftermath of the assassination of Salman Taseer, the Punjab governor, who was killed on Tuesday by one of his guards.
In Rawalpindi on Thursday, throngs of lawyers and hundreds of students belonging to religious seminaries gathered in advance of a hearing for the confessed assassin, Mumtaz Hussain Qadri, 26. But officials appeared determined to avoid a replay of Mr. Qadri’s initial appearance in court on Wednesday, when lawyers showered him with rose petals and shouted slogans in his favor and smiling police officials allowed him to address the crowd. He was taken by armored vehicle to a makeshift courtroom in nearby Islamabad.
But their effort went awry when the judge, Malik Akram Awan, refused to travel to the hastily arranged courtroom. Mr. Qadri was sent back to Rawalpindi a few hours later, where his supporters awaited. They threw rose petals at the armored vehicle when it arrived. Lawyers cheered as Mr. Qadri was ushered into court, his face hidden under a cloak.
Mr. Qadri was remanded into police custody for five days, lawyers and officials said. Police officers say they need more time to question Mr. Qadri to determine whether he acted alone or had accomplices.
The next hearing is scheduled for Jan. 11 in Rawalpindi.
Some of the lawyers said that they were intent on protecting the country’s tough blasphemy laws, which mandate capital punishment for offenders. Mr. Qadri indicated that he had killed the Punjab governor, Salman Taseer, who was among the main backers of efforts to ease the laws. Sherry Rehman, the interior minister, is another.
One of the Qadri supporters in Rawalpindi cited opposition to both politicians as an inspiration for an organized lawyers’ group that is now trying to help the assassin.
“We decided to form a lawyers’ forum to defend the honor of the Prophet a month and a half ago in protest to statements by Salman Taseer and Sherry Rehman,” said Chaudhry Kazim Jamil.
Mr. Jamil said the forum consisted of 350 lawyers of Islamabad. “Each one of us wanted to defend Mumtaz Qadri,” Mr. Jamil said.
But he said that the police did not allow him or any other lawyer to meet Mr. Qadri on Thursday.
J. David Goodman contributed reporting from New York.



Jaime Pressly arrested for drunken driving

http://www.google.com/hostednews/ap/article/ALeqM5j4f2oLbmQOYxsm45e6N-rTl_ehQw?docId=adbc14d9efd743eea4a8c3014ec7c214


Jaime Pressly arrested for drunken driving
SANTA MONICA, Calif. (AP) — Authorities in California say actress Jaime Pressly has been arrested in Santa Monica for investigation of driving under the influence of alcohol.
Lt. Darrell Lowe says the co-star of TV's "My Name is Earl" was stopped for a traffic violation around 11 p.m. Wednesday and booked on suspicion of DUI but he's not releasing any details.
Lowe says no traffic collision was involved.
Pressly's blood-alcohol level wasn't immediately released.
The Los Angeles County sheriff's website says the 33-year-old actress-model spent the night in jail and was released Thursday morning after posting $15,000 bail.
An e-mail to her manager seeking comment wasn't immediately returned.

US Debt Limit

http://online.wsj.com/article/BT-CO-20110106-709949.html


By Meena Thiruvengadam and Jeffrey Sparshott 
   Of DOW JONES NEWSWIRES 
 
WASHINGTON -(Dow Jones)- The U.S. could reach its debt limit of nearly $14.3 trillion as early as March 31, Treasury Secretary Timothy Geithner said Thursday.
Geithner in a letter to lawmakers said failure to raise the debt limit could "precipitate a default by the United States" and have catastrophic economic consequences--potentially more harmful than the financial crisis in 2008 and 2009.
The letter received a cool reception on Capitol Hill.
"The American people will not stand for such an increase unless it is accompanied by meaningful action by the President and Congress to cut spending and end the job-killing spending binge in Washington," Republican Speaker of the House John Boehner said.
Boehner, leading a new Republican majority in the House, said spending cuts remained a top priority lawmakers.
The Treasury Department estimates that the U.S. could reach its debt limit as soon as March 31 and probably no later than May 16. The exact date depends on the rate of economic growth, tax receipts and other factors.
"This means it is necessary for Congress to act by the end of the first quarter of 2011," Geithner said in the letter.
Geithner is pushing lawmakers to lift that ceiling for the sixth time in less than four years. Lawmakers last increased the debt ceiling almost a year ago.
But by Monday, the federal debt subject to that ceiling stood at around $13.95 trillion, giving the government just $355 billion before it would be legally prohibited from borrowing to pay its financial obligations.
A Treasury official said the administration is hoping to separate the debt ceiling increase from the debate on spending. And in his letter, Geithner said deep spending cuts would delay reaching the ceiling by no more than two weeks.
Boehner, though, emphasized the importance of spending cuts.
"While America cannot default on its debt, we also cannot continue to borrow recklessly, dig ourselves deeper into this hole, and mortgage the future of our children and grandchildren," he said.
Failure to raise the U.S. debt ceiling could cast doubt on the U.S. government's ability to meet its obligations and send shockwaves through the bond market.
"Default would have prolonged and far-reaching negative consequences on the safe-haven status of Treasurys and the dollar's dominant role in the international financial system," Geithner said.
A Treasury official described the request for the increase as routine. Still, the political balance on Capitol Hill has changed, potentially making the process more fraught.
Many conservative candidates ran election campaigns criticizing their opponents for voting to lift the debt ceiling last year, and promised to vote against another increase when federal borrowing hits the current cap. Their promises likely will be tested in the coming weeks.
The U.S. House of Representatives agreed Wednesday to change voting procedures on increasing the nation's borrowing limit. The new policy means that lawmakers will be forced to go on record in support of raising government borrowing or vote "no" and risk putting the U.S. into default.
Previously, Congress had approved debt limits automatically as part of the budget resolution.
-By Meena Thiruvengadam and Jeffrey Sparshott, Dow Jones Newswires; 202-862-6629; meena.thiruvengadam@dowjones.com

Dead Man's Final Photo Captures Killer Aiming Gun at Him

http://abcnews.go.com/International/murdered-filipino-captures-alleged-gunman-camera/story?id=12535914


Dead Man's Final Photo Captures Killer Aiming Gun at Him

Photograph Results in Arrest of Two Men for Murder

A photo taken by Filipino politician Reynaldo Dagsa captures his killer – seconds before Dagsa was shot dead.
PHOTO Reynaldo Dagsa killer
In this handout photo provided by the Dagsa Family on Tuesday, Jan. 4, 2011, an alleged assassin... Expand
(Reynaldo Dagsa/AP Photo)
The 35-year-old councilman from the Manila suburb of Caloocan City was taking pictures of his wife, daughter, and mother-in-law on New Year's Day when suspected gunman Michael Gonzalez stepped out from behind a car and shot Dagsa in the chest.
Police arrested Gonzalez as soon as the family showed them the final photograph taken by Dagsa. Two suspected accomplices, one of whom was pictured in the background of the photo, are also behind bars while two others remain at large.
"While he was taking the picture of his family on New Year's Day, the killer appeared and inadvertently he took the picture of the killer with the gun aimed at him," police chief Jude Santos told the AFP news agency.
The photo shows a man in a baseball hat aiming his weapon at Dagsa. In another corner of the photograph is a man police identified as the assassin's lookout.
Dagsa's wife and daughter, speaking to reporters at their home, said Dagsa had asked them to wake him up before the stroke of midnight so he could join in the usually noisy New Year's street revelry that comes with lots of firecrackers.
The family members said they did not hear a gunshot because the firecrackers were exploding all around them. They only saw Dagsa falling to the ground after he was hit.
They said they rushed him to the hospital but it was too late.
The men may have been looking for revenge. The Philippine Daily Inquirer reports Dagsa ordered their arrest last year for car theft and the suspects were out on bail. Caloocan Police Intelligence Chief Crescencio Galvez told the Inquirer that all three men were known criminals and Gonzalez went by the alias Fubo of Fish Pond Area 1.
Dagsa's death is the latest in a string of violent shootings that have plagued the Philippines, where cheap firearms are easily available on the legal and black markets.

The Inquirer reports Dagsa was a member of the Barangay Peacekeeping Action Team, a group that aggressively sought to reduce crime in the region. Dagsa also worked to manage disaster and emergencies more efficiently. Galvez described him as "hardworking" while Santos said Dagsa was "very active" in maintaining piece, according to the Inquirer.
The Associated Press contributed to this report

Arabic influence on the Spanish language

http://en.wikipedia.org/wiki/Arabic_influence_on_the_Spanish_language

Influences on the Spanish language

http://en.wikipedia.org/wiki/Influences_on_the_Spanish_language

List of Arabic loanwords in English

http://en.wikipedia.org/wiki/List_of_Arabic_loanwords_in_English




http://en.wikipedia.org/wiki/List_of_Arabic_loanwords_in_English




http://en.wikipedia.org/wiki/List_of_Arabic_loanwords_in_English




http://en.wikipedia.org/wiki/List_of_Arabic_loanwords_in_English

US May Lose Top Credit Rating Unless It Cuts Spending: Gross

http://www.cnbc.com/id/40929778/


US May Lose Top Credit Rating Unless It Cuts Spending: Gross

Published: Wednesday, 5 Jan 2011 | 4:35 PM ET
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By: Jeff Cox
CNBC.com Staff Writer
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The US stands to lose its coveted top credit rating unless Washington policymakers make good on promises to get the nation's financial house in order, Pimco's Bill Gross told CNBC.
As Democrats officially ceded power to Republicans in the House of Representatives Wednesday, the co-CEO of the world's largest bond fund manager expressed doubt that the free-spending ways in Congress were going to come to a halt.
"I was falling asleep there listening to John Boehner and Nancy Pelosi congratulate themselves on their accomplishments," Gross said, referring respectively to the new speaker of the House and his predecessor. "The ability of both parties to come together in a bipartisan way—hardly. Over the next several years we're going to have a lot of battles."
The first one could be over the debt ceiling, which expires at the end of February.
As Washington continues to finance its massive $14 trillion debt it needs to borrow an additional $1 trillion a year to keep up with the budget deficit.
While Gross said the level of debt is driving the US towards ruin, Congress will have no choice but to raise the ceiling. But Republicans have vowed they will not do so without serious spending concessions.
The debt is about 90 percent of gross domestic product now, which Gross said translates into a growth rate that will begin to slow at least 1 percent a year.
"It certainly means that we're a slower-growth country and a slower-growth economy," he said. "Ultimately, if we continue a trillion dollars-plus (deficit) then yes, your credit rating will be threatened."
The economic picture begins to change in such a scenario as well, with a weaker dollar driving inflation and weakening consumers as income fails to keep up.
In such an environment, Gross said he prefers stocks over commodities and bonds over gold specifically.
"Commodities are volatile and unpredictable," he said. "For the average investor they should be looking toward equities and to bonds."

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Microsoft Links With Arm in Tablets Move

http://www.cnbc.com/id/40942096

Microsoft Links With Arm in Tablets Move

Published: Thursday, 6 Jan 2011 | 4:47 AM ET
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By: Mary Watkins, Richard Waters and Paul Taylor, Financial Times
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Shares in Arm Holdings rose as 13 percent in early London trading on Thursday after Microsoft announced overnight that the UK-based group’s chip designs would feature in a new version of the Windows operating system.
Steven Sinofsky, president of the Windows and Windows Live division, revealed that Microsoft would be rolling out a new class of lower-powered chips based on Arm designs and made by Qualcomm, Nvidia and Texas Instruments as part of efforts to widen Windows beyond basic personal computers to portable devices.
Technology Stocks
27.90
-0.10
-0.36%
3,388,148
23.40
1.52
+6.95%
1,504,462
52.2495
0.2195
+0.42%
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141,553
The announcement was made ahead of the official start of the International Consumer Electronics Show in Las Vegas, the industry’s flagship annual event.
Lee Simpson, analyst at Jefferies, said that the market had long anticipated that Arm-based chips would feature in Windows 8 and had priced that into the stock. However, he said the official announcement was likely to keep feeding into the share price. A move into PC chips will enable Arm to command higher fees for each chip sold, though the market is smaller than for phones.
Microsoft
The move is a boost for Arm, whose low-powered chip designs feature in 95 percent of mobile phones sold around the world and in a range of other products but have made relatively little headway in the higher-power computer chip segment where Intel dominates.
Following the announcement by Microsoft on Wednesday, graphics specialist Nvidia also said that it would be developing a new Arm-based core processor for desktops and servers. The move puts Nvidia in direct competition with Intel [INTC  20.60    -0.34  (-1.62%)   ].
Warren East, Arm’s chief executive, has said that the company expects to benefit from an expected leap in demand for tablet computers, which are seen as a crossover product between smartphones and netbooks.
The success of the iPad has prompted companies including Toshiba, Motorola, Research in Motion [INTC  20.60    -0.34  (-1.62%)   ] and Hewlett-Packard [HPQ  44.34    0.14  (+0.32%)   ] to rush to bring out their own tablets.
Microsoft said Arm-designed chips would not start to be seen in new devices for another two or three years. Arm’s chips currently feature in a version of Windows that runs on the US group’s smartphones.
In July, Arm signed a deal with Microsoft to extend and expand on an existing long-running licensing agreement. The deal gave Microsoft access to Arm’s core architecture, rather than licensing one product at a time. Microsoft had until relatively recently relied on Intel to supply most of its chips, though it has been widening its relationships with other chipmakers and designers.
Shares in Arm [ARM  21.6599    -0.0701  (-0.32%)   ] have risen more than 150 percent over the past year, boosted by speculation of a possible shift into supplying designs for Microsoft and news that Arm’s chip designs featured in iPhone 4 and iPad, Apple’s [AAPL  334.21    0.21  (+0.06%)   ] highly successful tablet computer.
The group, which is trading on 44 times 2011 earnings, has also been seen by some as a prospective takeover target.
Arm [ARM-LN  498.10    26.70  (+5.66%)], whose shares were trading at 532½p early on Thursday, makes its money by licensing its chip designs to semiconductor makers and then collecting royalties once the chips go into new products.
Mr East continues to insist that buying the company would make little sense to another chipmaker, given that Arm’s strength is its neutrality and ability to service lots of customers with its designs, thereby saving them the cost of research and development.

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