Thursday, January 26, 2012

Germany’s Chancellor Angela Merkel gave yesterday’s opening address to the 42nd meeting of the World Economic Forum (WEF), which is facing a distinctly different geo-political landscape from twelve months ago. Outside the WEF security cordon, in the sub-zero temperatures of Davos’ train station car park, the local incarnation of the Occupy movement are setting up ‘Camp Igloo’; but, with little hope of the archetypes of the 1%, ‘Davos Man’, arriving by public transport and seeing their sub-zero protest.

David Roth, heading the Swiss centre-left’s youth wing — and an organiser of ‘Camp Igloo’, echoes much of the sentiment from ‘Occupy’ protests around the world; “[a]t meetings the rest of society is excluded from, this powerful ‘1 percent’ negotiates and decides about the fate of the other 99 percent of this world, […] economic and financial concentration of power in a small, privileged minority leads to a dictatorship over the rest of us. The motto ‘one person, one vote’ is no longer valid, but ‘one dollar, one vote’.”

Roth’s characterisation of ‘Davos Man’, a term coined by the Professor Samuel Huntington of Harvard University, is more emotive than that of the late professor who saw ‘Davos man’ as “[having…] little need for national loyalty, view[ing] national boundaries as obstacles that thankfully are vanishing, and see[ing] national governments as residues from the past whose only useful function is to facilitate the elite’s global operations”.

As Reuters highlights, many attendees will opt to make their way from Zurich to Davos by private jet, or helicopter, and the WEF itself provides handouts indicating the cost of such is 5,100 Swiss francs (approx. 5,500 USD, 3,500 GBP, 4,200 EUR). In contrast: travelling by rail, even when opting for first class — without an advance booking, is 145 Swiss francs (approx. 155 USD, 100 GBP).

Shifting fortunes see several past attendees missing this year’s exclusive get-together in the alpine resort; for a second year running — and now caught up in the UK phone hacking scandal being scrutinised by Lord Leveson’s inquiry — media mogul Rupert Murdoch will not be attending. Nor will the former head of financial services company UBS Oswald Gruebel, who resigned in the wake of US$2.3 billion losses incurred through unauthorised trading; likewise, Philipp Hildebrand, the ex-head of the Swiss National Bank, is absent following scandal associated with his wife’s currency trading activities; and, although the sexual assault charges against Dominique Strauss-Kahn were dropped, having stepped down as managing director of the International Monetary Fund Strauss-Kahn will also be absent.

As the #OccupyWEF protesters were building igloos last weekend, an anti-WEF protest in the Swiss capital Berne was broken up by police, who stated their intent to prosecute participants in the illegal protest. Allegations of calls for violent protest action led to a high number of officers being involved. In the aftermath, charges of breach of the peace are to be brought against 153 people, with some targeted for more serious offences. At least one group involved in the protest described the police response as “disproportionate”.

At ‘Camp Igloo’ Roth says he is seeking discussions with the WEF’s expected 2,000 attendees; but his voice, and that of others in the worldwide ‘Occupy’ movement, is unlikely to be given a platform in the opening debate, “Is 20th-century capitalism failing 21st-century society?” He, and others taking part in this Swiss incarnation of the ‘Occupy’ movement, are still considering an invite to a side-session issued by the World Economic Forum’s founder, Klaus Schwab; commenting on the invite Roth told the Associated Press they would prefer a debate at a more neutral venue.

As has been the case for several years now, the annual Forum meeting in Davos was preceded with the release of a special report by the World Economic Forum into risks seen as likely to have an impact the in the coming decade. The 2012 Global Risks Report is a hefty document; the 64-page report is backed with a variety of visualisation tools designed to allow the interrelations between risks to be viewed, how risks interact modelled, and their potential impacts considered — as assessed by the WEF’s panel of nearly 500 experts.

As one would expect, economic risks top both the 2012 impact and likelihood charts. Climate change is pushed somewhat further down the list of concerns likely to drive discussions in Davos. “Major systemic financial failure” — the collapse of a globally important financial institution, or world currency, is selected as the risk which carries the most potential impact.

However, “Chronic fiscal imbalances” — failing to address excessive government debt, and “Severe income disparity” — a widening of the the gulf between rich and poor, top the list of most likely risks.

At the other end of the tables, disagreeing respectively with the weight last year’s Wikinews report gave to orbital debris, and the Motion Picture Association of America’s (MPAA) fight with the Internet over copyright legislation, the 2012 Global Risks Report places “Proliferation of Orbital Debris” and “Failure of intellectual property regime” bottom of the league in terms of potential impact.

In 2011, with the current global economic crisis well under-way, “Fiscal crises” topped the WEF risks with the largest potential impact in the next ten years. However, perceived as most likely a year ago, “Storms and cyclones”, “Flooding”, and “Biodiversity loss” — all climate-change related points — were placed ahead of “Economic disparity” and “Fiscal crises”.

More mundane risks overtake the spectre of terrorism when contrasting this year’s report with the 2011 one; volatility in the prices of commodities, consumer goods, and energy, and the security of water supplies are all now ranked as more likely risks than terrorism — though the 2011 report did rank some of these concerns as having a higher potential impact. A significant shift in perception sees the 2012 report highlight food shortages almost as likely a risk the world will face over the next decade; and, one with a far more significant impact.

Attending the World Economic Forum at Davos is more than just an opportunity to discuss the current state of the global economy, and review the risks which face countries around the world. With such a high number of political and business leaders in attendance, it is an ideal opportunity to pursue new trade deals.

Canadian Prime Minister Stephen Harper is, in addition to being a keynote speaker, expected to pursue improved relations with European and Asian trade partners at private meetings on the Forum sidelines. The Toronto Star reports Harper is likely to push forward an under-negotiation Canadian-European free-trade agreement, and hold closed-door discussions prior to next month’s planned trip to China.

Similarly, Canadian trade minister Ed Fast is expected to meet South Korean counterparts to discuss an equivalent deal to the preferential ones between the Asian nation and the US and Europe. Fast’s deal does, however, face opposition at home; the Canadian Auto Workers union asserts that such a deal would put 33,0000 jobs at-risk.

British Prime Minister David Cameron and chancellor George Osborne are expected to discuss a possible increase of UK funding to the International Monetary Fund (IMF); however, with the UK responsible for 4.5% of the US$400 billion in the IMF’s lending fund, backbench MPs have warned that committing any additional funds could provoke a Conservative revolt in parliament. Tuesday’s IMF cut of predicted global growth from 4% to 3.3%, warnings of a likely Eurozone recession in 2012, and ongoing problems with Greek financial restructuring, are likely discussion topics at Davos — as well as amongst UK backbench MPs who see adding to the IMF war-chest as bailing out failed European economies.

South Africa, less centre-stage during the 2011 Forum, will be looking to improve relationships and take advantage of their higher profile. President Jacob Zuma and several cabinet members are attending sessions and discussions; whilst former UK Prime Minister Gordon Brown is to moderate a session, “Africa — From Transition to Transformation“, with Nigeria, Guinea, and South Sudan’s presidents on the panel. Wal-mart’s CEO Doug McMillon is to lead a dinner session, “Shared Opportunities for Africa’s Future” — highlighting larger multinationals looking towards the continent for new opportunities.

Davos may also serve as a place to progress disputes out of the public eye; a high-profile dispute between Chile’s state-owned copper mining business, Codelco, and Anglo American plc over the 5.39 billion USD sale of a near-quarter stake in their Chilean operations to Japan’s Mitsubishi, prompted the Financial Times to speculate that, as the respective company chiefs — Diego Hernández and Cynthia Carroll — are expected to attend, they could privately discuss the spat during the Forum.

Friday, May 16, 2008

A major security hole was discovered in the pseudo-random number generator (PRNG) of the Debian version of OpenSSL. OpenSSL is one of the most used cryptographic software, that allows the creation of secure network connections with the protocols called SSL and TLS. It is included in many popular computer programs, like the Mozilla Firefox web browser and the Apache web server. Debian is one of the most used GNU/Linux distributions, on which are based other distributions, like Ubuntu and Knoppix. The problem affects all the Debian-based distributions that were used to create cryptographic keys since the September 17, 2006. The bug was discovered by Luciano Bello, an argentine Debian package maintainer, and was announced on May 13, 2008.

This vulnerability was caused by the removal of two lines of code from the original version of the OpenSSL library. These lines were used to gather some entropy data by the library, needed to seed the PRNG used to create private keys, on which the secure connections are based. Without this entropy, the only dynamic data used was the PID of the software. Under Linux the PID can be a number between 1 and 32,768, that is a too small range of values if used to seed the PRNG and will cause the generation of predictable numbers. Therefore any key generated can be predictable, with only 32,767 possible keys for a given architecture and key length, and the secrecy of the network connections created with those keys is fully compromised.

These lines were removed as “suggested” by two audit tools (Valgrind and Purify) used to find vulnerabilities in the software distributed by Debian. These tools warned the Debian maintainers that some data was used before its initialization, that normally can lead to a security bug, but this time it was not the case, as the OpenSSL developers wrote on March 13, 2003. Anyway this change was erroneously applied on September 17, 2006, when the OpenSSL Debian version 0.9.8c-1 was released to the public.

Even though the Debian maintainer responsible for this software released a patch to fix this bug on May 8, 2008, the impact may be severe. In fact OpenSSL is commonly used in software to protect the passwords, to offer privacy and security. Any private key created with this version of OpenSSL is weak and must be replaced, included the session keys that are created and used only temporary. This means that any data encrypted with these keys can be decrypted without a big deal, even if these keys are used (but not created) with a version of the library not affected, like the ones included in other operating systems.

For example any web server running under any operating system may use a weak key created on a vulnerable Debian-based system. Any encrypted connection (HTTPS) to this web server established by any browser can be decrypted. This may be a serious problem for sites that requires a secure connection, like banks or private web sites. Also, if some encrypted connection was recorded in the past, it can be decrypted in the same way.

Another serious problem is for the network security software, like OpenSSH and OpenVPN, that are used to encrypt the traffic to protect passwords and grant the access to an administrative console or a private network protected by firewalls. This may allows hackers to gain unwanted access to private computers, networks or data traveled over the network, even if a not affected version of OpenSSL was used.

The same behavior can be applied to any software or protocol that use SSL, like POP3S, SSMTP, FTPS, if used with a weak key. This is the case of Tor, software used to offer strong anonymity on the TCP/IP, where about 300 of 1,500-2,000 nodes used a weak key. With 15-20% of weak Tor nodes, there is a probability of 0.34-0.8% circa to build a circuit that has all tree nodes weak, resulting in a full loss of anonymity. Also the case of only one weak node begin used may facilitate some types of attack to the anonymity. The Tor hidden services, a sort of anonymous public servers, are affected too. However the issue was speedly addressed on May 14, 2008.

The same problem also interested anonymous remailers like Mixmaster and Mixminion, that use OpenSSL to create the remailer keys for the servers and the nym keys for the clients. Although currently there is no official announcement, at least two remailer changed their keys because were weak.

Wednesday, March 5, 2008

The implosion of a relationship between Wikipedia founder Jimmy Wales and journalist Rachel Marsden has resulted in controversy and international headlines. Associated Press and ABC News have also reported on questionable activity by Wales involving Wikimedia Foundation expenses. The Wikimedia Foundation is a donor-supported non-profit organization which runs Wikipedia.

Marsden had contacted Wales two years ago about concerns she had over the article about her on Wikipedia, and Wales determined the article was not compliant with Wikipedia’s standards. The tech blog Valleywag revealed Wales had a personal relationship with Marsden, and posted supposed transcripts of their instant message conversations on its site, www.valleywag.com. Wales and Marsden met in February, and The Times reported that “An apparent transcript of their conversations before that meeting suggests that, although Mr Wales had withdrawn from the editing process, he was still influencing the editors.” The Times quoted Wales from the chat logs as having stated to Marsden “The truth is of course a much worse conflict of interest than that; but that will do.” — in reference to his conflict of interest regarding Marsden’s article on Wikipedia.

Wales posted a public statement on Saturday on Wikipedia addressing the matter, and stated that his relationship with Marsden was over: “First, while I find it hard to imagine that anyone really cares about my sex life, the facts are: I am separated from my wife. I considered myself single at the time of my one meeting with Rachel Marsden on Feb. 9, 2008 … I am no longer involved with Rachel Marsden. Gossipy stories suggesting that I have been in a relationship with her ‘since last fall’ are completely false … I care deeply about the integrity of Wikipedia, and take very seriously my responsibilities as a member of the board and as a member of the Wikipedia community. I would never knowingly do anything to compromise that trust.” With regard to the conflict of interest in Marsden’s article, Wales had acknowledged to a team of Wikipedia editors in February 2008 that he and Marsden “became friends … and that we would be meeting about that,” and stated “I recused myself from any further official action with respect to her biography.”

On Sunday, The Canadian Press reported that Marsden had posted photos of herself on Ebay, and was selling items that Wales had left at her New York City apartment. In her Ebay posting, Marsden stated: “Hi, my name is Rachel and my (now ex-) boyfriend, Wikipedia founder Jimmy Wales, just broke up with me via an announcement on Wikipedia … It was such a classy move that I was inspired to do something equally classy myself, so I’m selling a couple of items of clothing he left behind, here in my NYC apartment, on eBay. Jimbo was supposed to come visit me in a couple of weeks and pick up some of his stuff, but obviously that won’t be happening now.” Marsden told The Canadian Press “It didn’t really help matters that Jimmy chose to announce the breakup to the entire world via Wikipedia (which apparently now is an online encyclopedia that doubles as a personal soapbox?) rather than to me directly (which he did much later, in an instant message discussion).”

Marsden placed a t-shirt and sweater which she said were left at her apartment by Wales up on Ebay, and started the bidding for each at ninety-nine cents, with the auctions set to end on March 12. By Monday, bidding on the t-shirt had reached US$300, and by Tuesday the highest bid had reached $12,200. In an email to The Globe and Mail, Marsden stated “My only focus right now, to be really honest, is on my career and finding a way to get back into print, TV, or radio here in NYC,” she wrote. “All of this other personal stuff is just an unfortunate distraction.”

Jay Walsh, the Wikimedia Foundation’s head of communications, told the San Jose Mercury News that Wales’ actions in relaying Marsden’s concerns about her Wikipedia article to a team of trusted editors was within his “routine” role. When asked by the San Jose Mercury News if Wales’ actions regarding the Marsden article could compromise his role with the Wikimedia Foundation and Wikipedia, Walsh responded “No, absolutely not.”

On Tuesday, ABC News carried a story by Wired News reporter Megan McCarthy regarding allegations of “excessive spending” by Wales, and Associated Press also reported on questions involving Wikimedia Foundation expenses. McCarthy reported that former Wikimedia executive Danny Wool, who had left the foundation last year, criticized Wales’ use of Wikimedia Foundation expenses in a blog post. Wool stated that Wales had tried to expense $300 bottles of wine, a $1,300 dinner for four at a Florida steakhouse, and visits to Moscow massage parlors to the foundation, and that the foundation rescinded Wales’ corporate credit card in 2006. Wool also stated that Wales paid the foundation $7,000, after being short $30,000 on receipts for expenses.

Wool told EPICENTER that “There were occasions where he used [the Wikimedia Foundation] for personal advancement under the guide [sic] of the mission. And, as someone who was in there for the mission part of it, I found that rather distressful.” Wool commented in an interview with the San Francisco Chronicle: “Originally, it was carelessness … But as things developed, it became more apparent and obvious that he was taking advantage of the foundation credit card. It was almost like his personal piggy bank.”

In an instant message exchange with Associated Press, Wales denied that the Wikimedia Foundation had taken away his corporate credit card, and asserted that he had made the decision to stop expensing business travel for the foundation. Wales highlighted a statement by the foundation’s executive director Sue Gardner: “Jimmy has never used Wikimedia money to subsidize his personal expenditures. Indeed, he has consistently put the foundation’s interests ahead of his own.” In an email to Associated Press, Brad Patrick, a former attorney for the Wikimedia Foundation, stated “Danny seems interested in blogging his way straight to a lawsuit”.

Florence Devouard, who chairs the Wikimedia Foundation, told Associated Press that Wales had been “slow in submitting receipts,” and that the foundation had rejected Wales’ expense at the Florida steakhouse. Devouard told fellow foundation board members in a private email that she had convinced Associated Press that “the money story was a no story,” and told Wales “I find (it) tiring to see how you are constantly trying to rewrite the past. Get a grip!” Wales told Associated Press: “The board, the current executive director, the previous executive director, and independent auditors have reviewed our books and publicly agree that all of my expenses were appropriate and fully accounted for.”

Media reports speculated on how the controversy would end up being represented in Wikipedia itself. On Wednesday, the St. Petersburg Times wrote: “Wales’ Wikipedia page said only this about Marsden: ‘Wales had a brief relationship with Canadian journalist Rachel Marsden.'” An article in The Australian surmised: “History will decide whether Mr Wales broke his own principles, but before that happens there may well be a Wikipedia page devoted to the controversy.”

Tuesday, June 7, 2011

At the company’s own Worldwide Developers Conference (WWDC) keynote at the Moscone West center in San Francisco, Apple CEO Steve Jobs introduced the next generation of software products from Apple. Apple unveiled Lion, the new version of their Mac OS X operating system for desktop and laptop computers that brings new features to the software. They also demonstrated iOS 5, a new version of the operating system that powers iPhones, iPod Touches, and iPads. Alongside both announcements, Jobs also announced a new iCloud service to sync data among all devices. All 5,200 participating developers will spend the rest of the week in workshops with Apple employees; developer releases of each product were made available today.

Mac OS X Lion will be shipped in July through the online Mac App Store available on Mac computers for US$29. According to Apple, the update adds over 250 new features to the OS. Employee Phil Schiller discussed new multitouch gestures along with a dynamic task manager named Mission Control that shows open applications. During the keynote, Schiller said, “The Mac has outpaced the PC industry every quarter for five years running and with OS X Lion we plan to keep extending our lead.” It also adds full support for the Mac port of the popular App Store, full screen applications, iOS-style app icon lists called Launchpad, and other iOS-like features including a revamped Mail and Auto Save among others. Mac OS X Lion was announced at a different Apple event several months ago and will replace Mac OS X Snow Leopard, which was released in 2009.

Soon after, the company also introduced the latest installment in its popular mobile operating system iOS. The fifth version (iOS 5) introduces around 200 new features, including a revamped notification system, which combines messages and notifications from all applications installed on the user’s device. Scott Forestall, an Apple employee, also revealed that iOS devices would no longer require a computer for setup, allowing users to ‘cut the cord’ between their devices and PCs. Magazines and newspapers also have a new folder interface; the Twitter social network is now integrated significantly into iOS devices. Improvements to the mobile Safari browser were also announced; tabbed browsing and a Reader feature introduce desktop-like functionality. Finally, new camera features are built in, including the ability to take snapshots from the lock screen, as well as iMessages, a new messaging platform for iPhones and iPads.

CEO Steve Jobs returned to the stage to reveal Apple’s new cloud services offering, iCloud. The service integrates with Lion and iOS applications and syncs data between a user’s iOS devices. For example, calendar events created on a user’s laptop would be sent to their iPhone through iCloud. Apps, books, documents, photos, and more purchased or created on one device will be shared with others. The service is intended to launch in the fall of 2011 alongside iOS 5 and will be available with 5 gigabytes (GB) of storage for 10 devices for free. Earlier this year, Apple opened a 500,000 square foot data center in North Carolina intended to facilitate this new service. Jobs rounded the services off by unveiling a new iTunes feature that mirrors a user’s library in the cloud, allowing them to listen and download music to authorized devices. “We are going to demote the PC to just be a device. We are going to move the digital hub, the center of your digital life, into the cloud,” said Steve Jobs during the keynote. iCloud and iOS 5 will be released in the fall of 2011; Apple announced no new hardware products.

Thursday, July 3, 2014

Ian Narev, the CEO of the Commonwealth Bank of Australia, this morning “unreservedly” apologised to clients who lost money in a scandal involving the bank’s financial planning services arm.

Last week, a Senate enquiry found financial advisers from the Commonwealth Bank had made high-risk investments of clients’ money without the clients’ permission, resulting in hundreds of millions of dollars lost. The Senate enquiry called for a Royal Commission into the bank, and the Australian Securities and Investments Commission (ASIC).

Mr Narev stated the bank’s performance in providing financial advice was “unacceptable”, and the bank was launching a scheme to compensate clients who lost money due to the planners’ actions.

In a statement Mr Narev said, “Poor advice provided by some of our advisers between 2003 and 2012 caused financial loss and distress and I am truly sorry for that. […] There have been changes in management, structure and culture. We have also invested in new systems, implemented new processes, enhanced adviser supervision and improved training.”

An investigation by Fairfax Media instigated the Senate inquiry into the Commonwealth Bank’s financial planning division and ASIC.

Whistleblower Jeff Morris, who reported the misconduct of the bank to ASIC six years ago, said in an article for The Sydney Morning Herald that neither the bank nor ASIC should be in control of the compensation program.

Saturday, February 24, 2007

On 19 February 2007, XM Satellite Radio and Sirius Satellite Radio announced a move that will change the face of satellite radio in the United States and Canada: XM and Sirius will be merging, creating a single satellite radio provider.

Multi-million dollar losses, combined with increasing competition from internet radio, downloadable music, and HD radio were factors in this merger.

Mel Karmazin, CEO of Sirius Satellite Radio, described the problem: “We don’t want to take subscribers from XM. We won’t make money that way. We need new subscribers.” Likewise, XM executives say they can’t succeed by stealing Sirius subscribers. This leaves both companies with the problem of attracting new customers and distinguishing their brand, while at the same time trying to convince potential customers to pay $12.95 a month for radio, something that people are used to getting for free. Even if one company were to force the other out of the marketplace, the remaining company would have won a Pyrrhic victory, without enough capital remaining to take advantage of the situation.

The solution: make a deal now, while both companies are both strong and in a position to expand their technologies and services. That’s exactly what they plan to do: In press releases and news postings on both of their web sites, both companies have pledged to make the combined company better than either service by itself. “You’ve heard of 1+1=3,” Karmazin said during an invester conference call, “that’s what this is.”

Pending approval of the deal, each share of XM stock will be replaced with 4.6 shares of Sirius. Each company’s stockholders will retain approximately 50% of the joined company. Sirius CEO Mel Karmazin will retain his CEO title in the new company, and XM chairman Gary Parsons will retain his. XM CEO Hugh Panero will retain his position until the merger is complete, which should happen near the end of 2007.

Saturday, October 20, 2007

Dell Inc. announced on Tuesday that it will partner up with the Microsoft-Nortel Innovative communications alliance (ICA) team to sell Unified Communications and VoIP products.

The announcement on Tuesday the 16th of October 2007 includes Dell selling VoIP, data and wireless networking products from Nortel and the Microsoft Office Communications Server 2007 and other unified communications products.

The partnership with both manufacturers should allow Dell to provide a pre-integrated solution.

In March 2007, competitors IBM and Cisco announced they would join in the competition for developing unified communications applications and the development of open technologies around the unified communications and collaboration (UC2) client platform an application programming interfaces (APIs) offered by IBM as a subset of Lotus Sametime.

“We want to make it simple for our customers to deploy unified communications so their end users can get access to all their messages in one place – whether its e-mail, phone or mobile device. This will pave the way for more business-ready productivity tools,” said vice president of solutions, Dell Product Group, Rick Becker.

• Customers have four options:
  • Core Office Communication Server 2007 – provides instant messaging and on-premise Microsoft Live Meeting.
  • Office Communication Server: Telephony – enables call routing tracking and management, VoIP gateway and public branch exchange (PBX) integration.
  • Audio and Video Conferencing – allows point-to-point conference, video conference and VoIP audio conference.
  • Exchange Unified Messaging – provides voicemail, e-mail and fax in Microsoft Outlook, and anywhere access of Microsoft Outlook Inbox and Calendar.