Facebook's World Cup traffic breaks 2014 record

Adam Ganucheau, USATODAY

(Photo: Matt Rourke/AP)

Germany's seven goals in its World Cup victory over Brazil Tuesday wasn't the only record-breaking aspect of the day, according to statistics released by Facebook. Around 66 million people created more than 200 million Facebook interactions during Tuesday's World Cup match between Brazil and Germany — totals that crushed the social media giant's previous 2014 records, the World Cup opening match featuring Brazil and Croatia and the 2014 Super Bowl.

#STUNNED: Brazil's World Cup loss fuels Twitter torrent

Facebook users in Brazil, the tournament's host country, were responsible for about one quarter of the total traffic Tuesday, with 16 million people creating more than 52 million interactions, which include posts, comments and likes. The United States drew the second-highest total of Facebook interactions Tuesday, with 6.3 million users creating more than 14 million interactions. Facebook users in Mexico provided the third-most interactions, followed by users in Indonesia and the United Kingdom.

Brazil's team has played in Facebook's three most popular matches of the World Cup tournament thus far, with Brazil-Croatia coming in second in total traffic and Brazil-Chile placing third.

Men between the ages of 18-24 posted to Facebook the most of any demographic during the match Tuesday, followed by men aged 25-34, women aged 18-34, women aged 25-34 and men aged 13-17.

Facebook also broke down the most popular moments of yesterday's match, led by the 29th minute goal by Germany's Sami Khedira, which was the team's fourth goal in just seven minutes. The most talked about players were Germany forward Thomas Muller and Brazil defender David Luiz.

Convicted Madoff aide seeks 8-year prison term

Kevin McCoy, USA TODAY

(Photo: Seth Wenig - AP)

NEW YORK — The longtime secretary to Bernard Madoff should spend as little as eight years in prison for her conviction on charges of aiding the Ponzi scheme mastermind's massive fraud, her attorney argued Wednesday.

Annette Bongiorno, 65, faces a life term under federal sentencing guidelines, and 20 years behind bars under a Probation Department recommendation, attorney Roland Riopelle wrote in a 34-page sentencing memorandum.

But he argued that a "just" sentence would compel her to spend eight to 10 years in prison.

"A just sentence is one that strips Mrs. Bongiorno of every asset she owns, and that imposes a term of years that may well amount to the 'life' sentence recommended by the guidelines, given Mrs. Bongiorno's age, health and life expectancy," wrote Riopelle.

"However, we also argue that a just sentence should permit Mrs. Bongiorno a chance of release, given who she is, and the real nature of the role she played in the deplorable schemes at Madoff Securities," added the defense lawyer.

Bongiorno and four former co-workers argued in their long Manhattan federal court trial that they were duped by Madoff and didn't know he was running a scam that stole an estimated $20 billion from thousands of average investors, charities, celebrities, financial funds and other victims.

But a jury of eight women and three men convicted the five of fraud, conspiracy and other charges, convinced by prosecution evidence that showed the former co-workers knew about, participated in and profited from riches funded by the scheme.

Madoff is serving a 150-year prison term for the guilty plea he entered without standing trial after the scam collapsed in December 2008. As a result, the employees' trial was the first that resulted from the massive fraud.

Manhattan U.S. District Court Judge Laura Taylor Swain is scheduled to sentence the five late this month, after federal prosecutors submit their sentencing memorandum.

Lawyers for Daniel Bonventre, Madoff's former operations manager, were scheduled to file their sentencing recommendation later Wednesday.

Riopelle argued in his defense sentencing memo that Bongiorno was a "naive" high school graduate who "had very limited discretion in carrying out her duties at Madoff Securities."

"In fact, it is laughable to think that Mr. Madoff would let Mrs. Bongiorno control any significant aspect of his fraud, given her lack of sophistication, her tendency to make clerical errors and her occasional forgetfulness, which could lead to the fraud's detection," wrote Riopelle.

He also filed letters from friends and relatives who attested to Bongiorno's loyalty and generosity.

However, former co-worker Frank DiPascali, who pleaded guilty and became the prosecution's star witness at trial, testified that Bongiorno illegally helped backdate Madoff trading records to produce large profits for herself and others.

Prosecutors are pursuing forfeiture actions for most of Bongiorno's assets, including the $862,000 lakeside vacation home she and her husband, Rudy, bought in Boca Raton, Fla., and the nearly $1.4 million home the couple bought in a gated community near Long Island's north shore.

Federal marshals have already seized a gray Bentley auto the Bongiornos bought for approximately $180,000, plus two other luxury vehicles.

U.S., China begin high-level talks on tough issues

Calum MacLeod, USA TODAY

(Photo: Feng Li, Getty Images)

BEIJING — China's Communist Party leader Xi Jinping and U.S. Secretary of State John Kerry vowed better economic and security cooperation Wednesday as the two countries held the latest in a series of talks designed to improve their often difficult relationship.

Amid the positive rhetoric lay several reminders of the distrust and friction that characterize ties between the world's top two economies.

"Let me emphasize to you today: the U.S. does not seek to contain China," said Kerry, addressing a widely held belief in China that the USA is determined to restrict China's rise.

Xi warned that the USA must respect China's sovereignty and territorial integrity, and insisted that China is committed to "peaceful development."

Washington, and several of China's neighbors, have criticized Beijing for taking an increasingly aggressive stance on maritime claims far from China's coastline that are challenged by multiple nations.

Those disputes are among many tough issues to be discussed at the two-day China-U.S. Strategic and Economic Dialogue that began Wednesday at the Diaoyutai state guesthouse in western Beijing.

Kerry and U.S. Treasury Secretary Jacob Lew are President Obama's special representatives at talks also attended by Federal Reserve chair Janet Yellen and three other Obama Cabinet members. The dialogue, which alternates between the two countries, is now in its sixth round but boasts few major accomplishments to date.

U.S. officials have previously argued it remains a vital channel for communication on issues ranging from climate change to the value of the Chinese yuan, which Washington says is under-valued to help Chinese firms. Another difficult topic will be cybersecurity after the United States charged five Chinese military officers in May with hacking U.S. companies.

In a reminder of China's restrictions on human rights, which Kerry is expected to raise, Beijing-based Tibetan writer Tsering Woeser said she and her husband had been placed under house arrest after receiving an invite to dinner at the U.S. Embassy, possibly with Kerry, the Associated Press reported.

Senior U.S. officials visiting China throughout the past three decades have experienced similar problems meeting people who express dissenting opinions. Human rights groups, including Amnesty International, say Xi has cracked down hard on dissidents, civil society and the Internet since he came to power in 2012.

"China-U.S. relations are just like a couple, and their quarreling and ups and downs are a normal phenomenon," wrote Wang Gudao, a doctor in eastern Anhui province, on the Sina Weibo microblog Tuesday. "All in all, whatever they do is to uphold their country's own interests."

Rumor: Microsoft's 'Windows 9' campaign begins this fall

Mark Hachman

Microsoft plans to launch “Windows 9” this fall, backed by a substantial advertising campaign, according to Russian leaker Wzor.

The Russian blogger also predicted that the release will be accompanied with a new distribution method that will be keyed to the user’s PC and the online Microsoft Store, rather than an activation key that will be sold and/or distributed to an individual user. 

Wzor, who went silent in March after allegedly receiving leaked information from former Microsoft employee Alex Kibkalo, recently resurfaced, posting information to Russian bulletin boards. His latest post actually spends more time describing the new activation system than the Windows 9 campaign—although that may end up being the more significant announcement.

So far, Microsoft hasn’t said what its future plans are regarding Windows. Following the recent release of Windows 8.1 Update 1, tipsters have pointed toward a second, minor update this fall. Following that, reports have said, comes “Threshold”—though whether that's considered to be a third update, or a new, full-fledged “Windows 9” is up in the air. 

At this point, the distinctions are purely marketing—but what important distinctions they are. According to NetMarketShare, the combined market share of Windows 8.1 and Windows 8 is just 12.54 percent—more than Apple’s Mac OS share, but far less than the 25.31 percent held by Windows XP, or the 50.55 percent share held by Windows 7.

Microsoft stopped disclosing the number of Windows 8 licenses it had sold long ago. Also, its product releases have steadily moved away from the bold, yet intimidating Start Page to something a little more friendly, such as the shrunken Start menu that will supposedly accompany Threshold.

It's Microsoft prerogative to keep the Windows 8.1 branding—or not. But there’s equal reason to jump ahead to Windows 9 and a new chapter in its product development. If that turns out to be the case, then yes—Windows 8 is the new Vista.

Microsoft Store now the method of activation

Wzor also outlines what he describes a new, online-centric method of registering a Windows purchase. According to Wzor, registration would be bound to a single PC and activated when the user connects it to the Windows Store. Users could also back up the key to a special 'ESD-RETAIL' format on either a flash drive or another PC. Users who tried to run a single copy on multiple PCs would be asked to “undock” it, in Wzor’s phrasing, within three days.

A translated copy of Wzor’s post described the Windows 9 marketing campaign as “fantastic.”

Caustic Microsoft communications chief Frank Shaw essentially dismissed the rumor, tweeting “Was there a ‘crazy rumor day’ declaration that I missed?” without specifically referring to the Wzor report.

Whether or not the report is true, the question it raises is an important one. Each Windows 8.1 release that Microsoft ships leaves the company mired in history. With a new chief executive,  a revamped executive structure, and a new “mobile first, cloud first” mantra, doesn’t it make sense to turn the page on Windows, as well?

WINDOWS

• windows 8,
• windows 8.1

Here’s what we know about Apple’s new smartwatch

By Gail Sullivan

Apple hasn’t officially announced its new smartwatch, but the company has left a trail of breadcrumbs with hints about what we can expect from its first new major product line since the iPad came out in 2010. Here’s what’s been reported.

Apple is hiring executives from Swiss watchmakers. CNBC reported last Friday that Apple poached a sales director from the Swiss watch company Tag Heuer. Jean-Claude Biver, head of watch brands for luxury conglomerate LVMH, which owns Tag Heuer, told CNBC the executive left recently “to take a contract with Apple” to launch the iWatch. According to 9to5Mac, the unnamed exec is Patrick Pruniaux, Tag Heuer’s vice president of sales and retail. Apple has not commented on the move. In March, the Financial Times reported Apple and other tech companies were targeting luxury watch brand executives.

It will probably be rectangular and come in two sizes. Reuters reported in June the display will likely be 2.5 inches long diagonally and slightly rectangular. It will protrude slightly from the band and feature a touch interface and wireless charging capabilities. In April, MacRumorsand Apple Insider both reported a research note predicting the devices will come in two sizes: 1.3 and 1.5 inches. Other predictions: a sapphire cover lens, biometric recognition, an NFC chip and wireless charging.

It might work like a slap-bracelet. Laptopmag reported in June that Apple’s patent for a “bi-stable spring with a flexible display” describes a wrist-worn gadget with a wrap-around display.

It might watch you while you’re sleeping. 9to5Mac reported in February that Apple hired sleep expert Roy J.E.M Raymann from Philips Research. Raymann has experience working with wearables and could help Apple develop body tracking capabilities for an iWatch.

Health and fitness functions. Apple’s unveiling in June of HealthKit, a repository for data collected by various health apps, bolstered rumors that the iWatch will have health and fitness tracking capabilities. The Wall Street Journal reported in June that the watch will have 10 sensors to monitor health and fitness data, citing sources familiar with the matter. According to Reuters, one of the sensors can monitor the user’s pulse.CNET reported in June that Apple filed a patent for a weightlifting sensor that can gather data when attached to a weightlifting bar and send it to a mobile device. Business Insider reported in March that Apple patented a wrist pedometer to track steps. The smartwatch could also feature a heart monitor and blood glucose tracker. Earlier this year Apple hired biomedical experts with experience developing medical sensors to do both.

The athlete-testing phase is underway. Citing sources with knowledge of the matter, 9to5Mac reported in June that Los Angeles Lakers star Kobe Bryant, Los Angeles Kings player Dustin Brown and other star athletes are testing the watch for Apple. Bryant was spotted visitingApple’s Cupertino campus in May where he met with Apple design head Jony Ive.

It might not run on a battery. The New York Times reported in February Apple was looking at alternative means of powering devices, such as solar power, magnetic induction or kinetic energy from a user’s arm movement.

It will likely be called iWatch. Apple has trademarked the name in Japan, according to Bloomberg – and in Mexico, Taiwan, Turkey and Columbia, according to 9to5Mac.

It will likely run on iOS 8. When Apple introduced the latest update to its mobile operating system at its developer’s conference in June, they talked up features that fit with the rumored capabilities of the iWatch: fitness tracking and continuity across devices.

It could arrive in October. Reuters reported in June that Taiwan’s Quanta Computer will start mass production of the smartwatch in July in preparation for an October release, according to a source familiar with the matter. However, the Wall Street Journal reported on June 20 that production won’t start for another two to three months. Re/code reportedin early June that Apple is planning a special event for October at which it will debut a wearable device designed to make use of the HealthKit fitness app, citing sources familiar with the plans.

Apple has hired a cadre of fashion experts. Rollout of the iWatch will be overseen by fashion industry experts. Apple hired Angela Ahrendts, former chief executive of Burberry, to run Apple’s global retail operations last October shortly after bringing former Yves-Saint Laurent chief Paul Deneve on board to run “special projects” and hiring Enrique Atienza, a senior vice president at Levi’s, to manage Apple’s U.S. retail. Last September, Apple also hired former Nike designer Ben Shaffer, who worked on the FuelBand.

European Commission Broadens Tax Inquiries To Include Amazon: Google, Microsoft & McDonald's May Follow

Move MOVE +4.92% over, Apple AAPL +0.66%, Starbucks SBUX +1.11% & Fiat: it appears you have some company.

Last month, the European Commission announced that it would be formally investigating the tax structures and practices of three specific corporations in very targeted destinations: Apple (Ireland), Fiat Finance and Trade (Luxembourg), and Starbucks (Netherlands). At the time, I noted that it was likely that more investigations might follow. Indeed, in a move that surprises practically no one, officials are now poking around in Amazon’s tax affairs.

The inquiry into Amazon has not yet been characterized as a full-fledged investigation. However, the Financial Times reports that an EU official has admitted that the Commission is “looking into what kind of arrangement Luxembourg has with Amazon.” The arrangement has allowed Amazon to lower the rate of tax it pays.

Joaquín Almunia, Vice President of the European Commission, has also indicated that Google GOOGL +0.56% could be included in future investigations.Microsoft MSFT -0.24% and McDonald’s are also reportedly under fire.

These names aren’t necessarily news – most of these well-known companies have faced questions about their tax arrangements for some time now. What is more surprising is not only the speed – but the scope – of the investigations.

With respect to the scope, most of the inquiries into specific tax practices to date have come from individual countries, like France and the UK, rather than from the EU.

European flag outside the Commission (Photo credit: Wikipedia)

Consider France. Earlier this year, McDonald’s denied allegations that it used a series of tax maneuvers to avoid paying its fair share of taxes in France. The fast food giant was accused of shifting over €2.2 billion ($3.01 billion US) in income to companies set up in Switzerland and Luxembourg for the purpose of tax avoidance, a charge the company claims is not true. France made similar accusations against Apple in 2013; the French had previously lodged accusations against Amazon, Google and Microsoft. The charges from the French government appear to be part of an overall push to crush tax evasion in the country which has a relatively high corporate tax rate (33.33%) compared to its EU neighbors.

In the UK, Starbucks took a public relations hit when it revealed that since 1998, the company only paid a total of £8.6m ($11.5 million US) in corporate income taxes. The company eventually admitted to shifting royalty and other intellectual property income to tax-favored Netherlands. The company eventually appealed to customers in Britain and Ireland by promising that it would pay more in tax than it “has” to in the future.

Similarly, Apple admitted to lowering its tax rate by channeling funds (65% of its global income) to an Irish subsidiary: the corporate tax rate in Ireland is about half that of Britain. Ireland is just the first stop in Apple’s tax planning: funds are later routed to the Netherlands and the Caribbean. The companyadmitted in 2012 that it paid less than 2% on profits outside of the U.S.

Google also raised eyebrows when it admitted that it paid tax of less than 1/10% in the UK: the company is said to have generated $18 billion in revenue from the U.K. over a five year period beginning 2006 and paid only $16 millionin corporate taxes. The internet giant was raided in France in 2011 for “presumption of fraud” and admitted in 2014 that it was hit with a tax assessment, though it won’t say how much: the French media has reported that the number is between €500 million and €1 billion ($693 million – $1.3 billion U.S.).

While those tax practices were scrutinized and audited by individual countries, the decision to scrutinize the transactions on a multi-national level is a first for the European Union. The investigations, which could continue to expand, represent a new position by the EU in terms of attacking tax avoidance. They also appear to be finger pointing at a handful of countries, including the Netherlands, Ireland and Luxembourg, to see whether any of the tax breaks offered to those companies are improper.

The speed of the investigation is also interesting: Jean-Claude Juncker, who is expected to take the helm as President of the European Commission, has been credited with making Luxembourg into a tax haven – exactly the very transactions now being scrutinized. His nomination has been opposed by the UK’s David Cameron but supported by Germany’s Angela Merkel; Germany, usually a proponent of transparency, has remained relatively quiet as the investigations move forward.

You can bet that the the rest Europe (and indeed, the U.S.) is watching closely.