US Stocks Suffer Steep Losses As Investors Flee Risky Assets

NEW YORK (Dow Jones)--U.S. stocks suffered steep losses as investors' concerns over the financial health of European governments triggered a flight to safer assets.

The Dow Jones Industrial Average dropped 130.78 points, or 1.05%, to 12381.26, with all but one component, McDonald's, in the red. Technology and energy stocks led the Standard & Poor's 500-stock index a slump of 15.91 points, or 1.19%, to 1317.36. The technology-oriented Nasdaq Composite lost 44.42, or 1.58%, to 2758.90.

In the absence of major U.S. earnings reports or economic data, investors focused on negative headlines from Europe, including a Standard & Poor's outlook cut on Italian debt and regional-election losses for Spain's ruling Socialist party.

"The Eurozone nations are walking a fine line," said Malcolm Polley, president and chief investment officer at Stewart Capital Advisors. Too much austerity could choke off spending and weaken the continent's economic recovery, he said, even as markets around the world, including in the U.S., demand that Eurozone countries get their debt burden under control.

Monday's selloff reflected the same investor risk aversion that drove a slump in crude-oil prices below $98 a barrel and a rally in the U.S. dollar versus major foreign currencies. Gold rose above $1,515 a troy ounce.

Slower May manufacturer data from China also spurred traders to dump commodity-heavy shares in tandem with the decline in metals and other commodities Monday.

Both the blue-chip index and the S&P 500 have slid for three straight weeks, marking their longest losing streak since August. Though lengthy, the slide had been relatively shallow heading into Monday. The Dow was down 2.3% in the three-week period that ended Friday.

Rhodes 3.0, Ruby-Based App Builder Adds Support for NFC, Windows Phone

Rhomobile, makers of an open source Ruby-based framework for building mobile applications for major smartphone operating systems, recently launched the latest version of their toolkit, Rhodes 3.0. The updated framework has added support for NFC (near field communications), the backbone for the upcoming mobile wallet systems and more. Rhodes is also the first framework outside of Microsoft's official channels to support Windows Phone 7.

Rhodes Adds Support for NFC

According to Rhomobile founder and CEO, Adam Blum, support for NFC is limited to Android for now, but as other platforms add support for NFC, Rhodes 3.0 will expand to support the additional operating systems. This includes Nokia's upcoming Windows Phone devices, which are expected to be the first Windows Phone devices to support NFC. The addition of Windows Phone to the lineup of NFC-enabled phones is important because that would then leave Apple's iPhone/iOS as the last of the top four major platforms (Android, iPhone, RIM, Nokia/Windows Phone) without support for NFC.(Note: Android's OS supports NFC and some BlackBerry phones will include NFC capabilities at launch later this year).

The company says it's "very excited" about the possibilities provided by Near Field Communication, and sees it as "the single most important innovation in mobility since the creation of the modern smartphone as exemplified by the first iPhone."

To put it mildly!

In Rhodes 3.0, the support for NFC is read/write, meaning that devices can both read information from NFC tags and write information to them. And it will work across the diversity of NFC-enabled platforms and devices through its unified API.

Windows Phone Support & More

The other major update to Rhodes 3.0 is the added support for Windows Phone 7, Microsoft's new mobile operating system. Rhodes is the first third-party framework to support this platform. To do so, it provides a way to write native Windows Phone 7 code using HTML5 for interfaces (Views in the Rhodes Model-View-Controller pattern).

This addition will make it easy for developers to write for Windows Phone, whether they're interested in cross-platform code-sharing or not.

Also new to the Rhodes 3.0 toolkit is an update to the RhoStudio, the Integrated Development Environment for Rhodes, which now allows for the ability to change the code on the fly and have the app changed too, without a full rebuild. And it has introduced RhoSimulator, a tool for device independent emulation without installing the underlying OS SDK.

Interested developers can grab the latest copy of Rhodes and other tools from here.

Justin Bieber, Eminem Dominate Billboard Music Awards

Bieber's awards included trophies for Top New Artist, Top Social Artist, Top Streaming Artist, Top Digital Media Artist, Top Pop Album and Top Streaming Song at his first-ever trip to the show. Meanwhile, veteran Eminem (who was not in Las Vegas for the show) nabbed Top Artist, Top Male Artist, Top Billboard200 Album, Top Rap Artist, Top Rap Song and Top Rap Album for his smash comeback, Recovery.

Six artists were just behind with three wins each, including Lady Gaga, Rihanna, Taylor Swift, Usher, Mumford & Sons and Cruz. Though Bieber and Gomez have kept their relationship under wraps for months, the "Baby" singer kissed and hugged Gomez before taking the stage to accept an award.

The show featured a number of performances, two of which included surprise appearances from a lip-synching Britney Spears. The pop diva literally popped up out of the floor to join Rihanna for "S&M," writhing on a stripper pole while brandishing a pair of diamond handcuffs. The two finished things off with a pillow fight and a kiss. She also topped off a performance of Minaj's "Super Bass" with a bit of her own "Till the World Ends."

Weezy teamed up with Blige for the remix of "Someone to Love Me (Naked)." Green wore a sparkly outer-space outfit while playing piano and singing a medley of his hits ("Crazy," "Bright Lights Bigger City" and "Forget You"); he levitated over the stage and pounded the keys of his silver piano while hanging upside down at one point.

But perhaps the biggest moment of the night was when Beyoncé was presented with the prestigious Billboard Millennium Award, which was preceded by a video honoring her with testimonials from First Lady Michelle Obama, Bono, Lady Gaga, Bey's parents and sister Solange, Stevie Wonder, The-Dream and Barbra Streisand.

She accepted the award after an eye-popping performance of her new single, "Run the World (Girls)," which was highlighted by a breathtaking digital background featuring a shifting array of effects that produced a legion of virtual backup dancers and CGI-like movie effects.

Out of breath from her performance, Beyoncé thanked her mother and father for teaching her about hard work, as well as former Destiny's Child members Kelly Rowland and Michelle Williams, past DC members and, in a break with their usual low-key nature, husband Jay-Z.

"I'd also like to thank my best friend, and I don't want to put you on the spot because I know they're probably putting a camera in your face right now, but I love me some Jay-Z," she said with a smile.

A number of artists also took home two awards apiece, including Katy Perry, Shakira and Train.

Complete List of Winners:

Top Artist: Eminem
Top New Artist: Justin Bieber
Top Male Artist: Eminem
Top Female Artist: Rihanna
Top Duo/Group: The Black Eyed Peas
Top Billboard 200 Artist: Taylor Swift
Top Hot 100 Artist: Katy Perry
Top Digital Songs Artist: Katy Perry
Top Radio Songs Artist: Rihanna
Top Touring Artist: U2
Top Social Artist: Justin Bieber
Top Streaming Artist: Justin Bieber
Top Digital Media Artist: Justin Bieber
Top Pop Artist: Lady Gaga
Top R&B Artist: Usher
Top Rap Artist: Eminem
Top Country Artist: Taylor Swift
Top Rock Artist: Train
Top Alternative Artist: Mumford & Sons
Top Latin Artist: Shakira
Top Dance/Electronic Artist: Lady Gaga
Millennium Award: Beyoncé
Touring Award: U2
Icon Award: Neil Diamond
Top Billboard 200 Album: Eminem, Recovery
Top Pop Album: Justin Bieber, My World 2.0,, Katy Perry, Teenage Dream
Top R&B Album: Usher, Raymond v. Raymond
Top Rap Album: Eminem, Recovery Top Country Album: Taylor Swift,Speak Now
Top Rock Album: Mumford & Sons, Sigh No More
Top Alternative Album: Mumford & Sons, Sigh No More
Top Latin Album: Enrique Iglesias, Euphoria
Top Dance/Electronic Album: Lady Gaga, The Fame
Top Christian Album: Skillet, Awake
Top Hot 100 Song: Taio Cruz, "Dynamite"
Top Digital Song: Taio Cruz, "Dynamite"
Top Radio Song: Bruno Mars, "Just the Way You Are"
Top Streaming Song (Audio): Nelly, "Just a Dream"
Top Streaming Song (Video): Justin Bieber featuring Ludacris, "Baby"
Top Pop Song: Taio Cruz, "Dynamite"
Top R&B Song: Usher featuring will.i.am, "OMG"
Top Rap Song: Eminem featuring Rihanna, "Love the Way You Lie"
Top Country Song: Lady Antebellum, "Need You Now"
Top Rock Song: Train, "Hey, Soul Sister"
Top Alternative Song: Neon Trees, "Animal"
Top Latin Song: Shakira featuring Freshlyground, "Waka Waka (This Time 

NBA Playoffs 2011: 10 Steps for Bulls to Ensure a Game 4 Victory over Heat

Derrick Rose looked frustrated. Carlos Boozer played well, but spoke softly and sadly after the game. Joakim Noah got so upset he’s going to be fined six figures for it.

In other words, Game 3 didn’t go so well for the Chicago Bulls.

All hope is not lost, despite the looming suspicion that the Bulls don’t have the offensive firepower to match the Miami Heat. Yes, O.J. Mayo seems very tempting right about now, but Chicago fans need to remember that a Game 4 win will tie the series and make it a best-of-three.

With that said, Tom Thibodeau can’t expect his team to just do what it did in Game 3, only better. Adjustments must be made. Scoring more points than the Heat is obviously the ultimate goal, but as these past two games have shown, that’s easier said than done againstLeBron James, Dwyane Wade and Chris Bosh.

What to do, what to do? Here are 10 things the Bulls should at least consider trying in their must-win showdown with the Heat.

PlayStation Network Hack Will Cost Sony $170M

Sony expects the hack of the PlayStation Network and will cost it ¥14 billion (US$170 million) this financial year, it said Monday.

Unknown hackers hit the network gaming service for PlayStation 3 consoles in April, penetrating the system and stealing personal information from the roughly 77 million accounts on the PlayStation Network and sister Qriocity service. A second attack was directed at the Sony Online Entertainment network used for PC gaming.

Sony responded to the attacks by taking the systems offline. It called in several computer security companies to conduct forensic audits and rebuilt its security system.

Users in many countries are being offered a year-long identity-theft protection program and free games. The cost estimate includes those actions and associated legal costs, said Masaru Kato, Sony's CFO, at a Tokyo news conference.

"To date, we have not confirmed any misuse of personal information or credit cards," said Kato.

The costs will be booked in Sony's current financial year, which will end on March 31.

Sony said it made the announcement because it expects to record a net loss of ¥260 billion for the financial year just ended due to charges associated with U.S. GAAP (generally accepted accounting practices) rules.

The March 11 earthquake and tsunami occurred just three weeks before the end of the financial year and didn't have a large impact on the company's global financial performance for the year, but it did push Sony's Japanese operations into a loss.

Those Japanese operations had lost money the previous two years but Sony, anticipating a profit in the year just ended, had recorded tax credits it intended to carry forward. However, GAAP rules say tax credits cannot be recorded for three years in a row, so Sony is recording a non-cash charge for the credits it had taken.

The earthquake hit Sony's domestic operations and led to a sharp fall in consumer demand in Japan in the last weeks of March, but its effect on the results for Sony's electronics business was limited because it occurred so close to the end of the financial year. Sony estimates that resulted in a ¥22 billion drop in sales and ¥17 billion in quake-related costs.

Overall, the company said sales in the previous year were around ¥7.2 trillion.

The company will report an operating profit of around ¥200 billion, but the GAAP-related charge will help push Sony to a net loss of around ¥260 billion. Operating income more closely tracks the company's performance in its core areas and excludes many one-off charges.

Sony will report actual results for the financial year from April 2010 to March 2011 on Thursday.

Martyn Williams covers Japan and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Updated Apple Store iPhone app allows build to order Mac purchases

Apple on Monday updated its "Apple Store" application for the iPhone, offering the ability to order a custom Mac, and also more quickly receive help when at a retail store.

The free application (iTunes link) is currently available on the App Store. Version 1.3 is a 3.2MB download, and is available in English, French, German, Italian and Spanish. It requires iOS 4.0 or later.

The release of the software coincides with the debut of Apple's improved retail stores, which were upgraded on Sunday. The company now makes use of interactive iPad displays to provide product information, pricing and features.

According to Apple, new features of Apple Store 1.3 are:

• Enhanced in-store mode lets you get help and support quickly when you're at an Apple Retail Store.
• The ability to custom-configure a new Mac with the options you want.

Using the new application, users can make modifications and upgrades to a Mac order placed from their iPhone. For example, users can add more RAM or upgrade the hard drive of a Mac before they finalize their order -- features that were previously only available on Apple's website.

The software is still only written for the iPhone and iPod touch, prompting some initial negative reviews from users in the App Store. Though the application can be run on an iPad, as all iOS software can, it is not optimized for the screen size and resolution of the touchscreen tablet.

"It's the best way to get the most from the Apple Store -- whether you're on the go or at the store," Apple's description reads. "Wherever you are, you can research and buy products, read reviews, make Genius Bar and One to One appointments, view in-store events, and more. And when you're in an Apple Retail Store, you can request help, receive meet-up alerts, and more."
Apple Store

Pakistan Commandos Remove Taliban Guerrillas From Karachi Naval Air Base

Pakistani commandos ended a Taliban siege of a navy base in the country’s largest city after a 16- hour battle that the militants said was in part to avenge the killing of al-Qaeda leader Osamabin Laden.

Ten members of Pakistan’s security forces were killed along with four guerrillas, Interior Minister Rehman Malik told reporters in Karachi. The “terrorists were 20-22 years of age and wore Western clothes with suicide jackets beneath them,” Malik said. They were armed with rocket launchers and grenades, he said.

Pakistani Taliban had pledged to attack government and military installations after U.S. forces killed al-Qaeda leader bin Laden in a raid in Abbottabad, 30 miles (50 kilometers) north of Islamabad, on May 2. The American raid exacerbated tensions between the two countries, as the U.S. questioned whether Pakistani officials had protected bin Laden and Pakistan protested the violation of its territory.

The insurgents in Karachi damaged surveillance aircraft provided by the U.S. in the biggest strike against a leading Pakistani military installation since guerrillas attacked the army’s Rawalpindi headquarters in October 2009.

“This attack shows that the Taliban have sympathizers and insiders in the security establishment,” said Talat Masood, a retired army lieutenant general and security analyst in Islamabad. “This also shows that they have become more powerful and sophisticated in their planning and attacks.”

Americans, Chinese

Six Americans, involved in training Pakistani forces, and 11 Chinese nationals were inside the base at the time of the attack, Malik said today. He said four militants had launched the raid, a far smaller number than claimed by the Taliban.

“Fifteen of our fighters entered the naval air base and we don’t expect them to return,” Ehsanullah Ehsan, a spokesman for the Tehreek-e-Taliban Pakistan, said earlier by telephone from an undisclosed location. “They are there to kill. Our issue with Pakistan is its secular policies and friendship with America.”

Last night’s attack began with several explosions at the Mehran naval base around 11 p.m., followed by gunfire. Malik said that militants had entered from the back of the base by cutting through wires, before carrying out the attack like “movie stars.”

Two P-3C Orions, a maritime surveillance aircraft, were targeted and damaged in the attack, Haq said. The U.S. handed over the aircraft to the Pakistan navy in April 2010 and said it will give a total of eight by 2012, according to the U.S. Central Command website.

Surveillance Role

The Taliban may have hit the navy station for its role in helping conduct surveillance against movements by militant groups along Pakistan’s coast, said Bahukutumbi Raman, an Indian security analyst and retired counter-terrorism chief of India’s main intelligence agency.

Pakistan’s naval air unit, including the U.S.-supplied Orion aircraft, has been providing “air surveillance to prevent any sea-borne intrusions of al-Qaeda and to detect any terrorist plans for attacks on ships bringing supplies for the NATO forces in Afghanistan,” Raman wrote in an e-mailed analysis.

Trucks carrying soldiers entered the base soon after the attack began. Flames and black smoke rose into the air and dozens of ambulances waited outside the base.

Tensions between the U.S. and Pakistan have escalated with American officials saying they were worried that Pakistan’s intelligence agency maintains ties to guerrillas fighting American-led forces in Afghanistan. The U.S. military says its war against the Taliban is hindered by Pakistan’s failure to shut down militant havens.

Drone Attacks

Also straining relations is Pakistan’s opposition to U.S. drone attacks on Taliban targets that have killed civilians and American insistence that the strikes continue.

Pakistan’s leaders have rejected accusations they are not doing enough to defeat insurgents. The army’s offensives against the local Taliban movement and allied guerrillas have triggered retaliatory bombings and gun battles in cities nationwide that the government says have killed thousands of Pakistani citizens and security personnel.

Twin bombings on May 13 at a Pakistani paramilitary police academy killed 80 people in what the Pakistan Taliban said was in part revenge for the killing of bin Laden and a precursor to attacks against the U.S.

The PNS Mehran Base is 10 kilometers from Karachi’s Quaid- e-Azam International Airport. It provides all the logistic and administrative support to the aviation unit of the Pakistan navy, according to the navy’s website.

On Oct. 10, 2009, the Pakistani military freed 39 hostages after soldiers stormed a building in the army’s Rawalpindi headquarters, ending a 22-hour siege by militants.

Yesterday’s attack comes less than a month after militants attacked navy buses in Karachi, killing four people and injuring 56. Two days later, four navy personnel and one civilian were killed in a bomb attack on a navy bus in the financial capital.

To contact the reporters on this story: Khurrum Anis in Karachi News atkkhan14@bloomberg.net; Farhan Sharif in Karachi, Pakistan at Fsharif2@bloomberg.net

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