Fracking can be done safely in New York state: dept report

The natural gas drilling process known as fracking would not be a danger to public health in New York state so long as proper safeguards were put into place, according to a health department report that environmentalists fear could help lift a moratorium on the controversial technique.
Governor Andrew Cuomo is weighing the economic benefits of hydraulic fracturing - commonly known as fracking - against the environmental risks from a technology that could unlock a vast domestic energy supply but also one that environmentalists say pollutes groundwater and the air.
Potential hazards could be avoided by implementing precautions the state has identified, according to a February 2012 preliminary assessment from the New York State Department of Health that became widely reported in the media on Thursday.
"Significant adverse impacts on human health are not expected from routine HVHF," or high volume hydraulic fracturing, the document concluded.
Natural gas drilling in New York state could create $11.4 billion in economic output and raise $1.4 billion in state and local tax revenue, according to a July 2011 report from the Manhattan Institute, a conservative-leaning think tank.
Fracking is the process of releasing natural gas and oil from rock deposits deep underground by fracturing shale formations with chemical-laced water and sand.
The release of the document came as Cuomo's government continued to deliberate whether to overturn a 4-year-old moratorium on fracking originally put in place to assess the effects of the drilling process.
The Department of Environmental Conservation is the lead agency studying fracking, with contributions from other departments such as health.
In late November, the Department of Environmental Conservation was granted a 90-day extension to its original deadline for completing a draft of fracking regulations in order for its environmental impact study to be reviewed by the state health commissioner and outside health experts.
Since the preliminary assessment was put together nearly a year ago, was incomplete, and did not reflect the input of these experts, it does not reflect the final policy of the Department of Environmental Conservation, spokeswoman Emily DeSantis said in an email.
"I sincerely hope that this is not where the administration is going with the health review," said Katherine Nadeau of Environmental Advocates, a group concerned over the state's plans for fracking.
"It is nothing more than a justification for not doing a health review and a defense for the plans and proposals they've already put out there," said Nadeau, who had reviewed the document.
The Independent Oil and Gas Association of New York, which represents oil and gas producers in the state, called on the Cuomo administration to lift the moratorium because the experience of other states has shown that fracking could be done in a way that protects the environment and public health.
"All ongoing environmental reviews, including New York's health assessment, will make similar conclusions," Brad Gill, the group's executive director, said in an emailed statement.
The precautions the health department document proposed for the state to put into place were of varying specificity. For example, the transport of drilling water that flows back out of wells after fracking should be subject to similar requirements to the treatment of medical waste.
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IMF's economist: budget cuts may hurt growth less now

WASHINGTON (Reuters) - Belt-tightening in advanced economies may not be as harmful to growth now as it was during the height of the financial crisis, but governments should still be careful about drastic cuts, an International Monetary Fund research paper found on Thursday.
The IMF came under heavy criticism in October when it conceded that austerity programs it recommended during the global economic crisis were more costly than expected, causing economic damage that was as much as triple the amount forecast.
In a follow-up paper by the IMF's chief economist, Olivier Blanchard, and his colleague, Daniel Leigh, stood by their initial conclusions but said the harshest impact of those programs may be fading as economies start to recover.
The paper in October fueled critics of steep budget cuts in debt-burdened European economies, and prompted the IMF to soften its own recommendations for austerity in the euro zone crisis.
It said that now it believed forcing Greece and other debt-burdened countries to reduce their deficits too quickly would be counterproductive.
"For example, in Portugal, we have relaxed fiscal deficit targets," said Blanchard, the IMF chief economist.
But Germany said at the time that back-tracking on debt-reduction goals would only hurt market confidence.
Some economists also questioned the methodology the IMF had used in its initial research, saying the findings may have been exaggerated, or only applied to certain countries or times.
In the follow-up paper on Thursday, Blanchard and Leight said their research held-up for most advanced economies during the height of the financial crisis in 2009-10. While their views do not represent those of the Fund, the chief economist has a heavy hand in shaping the IMF's economic thinking.
"Forecasters have underestimated fiscal multipliers, that is, the short-term effects of government spending cuts or tax hikes on economic activity," the paper wrote.
The paper found that every dollar of deficit reduction subtracted "substantially" more than a dollar from economic growth, as much at $1.70. Economists had previously estimated that a dollar in government cuts would drain only 50 cents from the economy.
But during the past two years, the negative effect of government cuts on growth may have shrunk as the economy improved and people and businesses were able to borrow more money, making government spending less crucial, the researchers found.
"A decline in actual multipliers ... could reflect an easing of credit constraints faced by firms and households, and less economic slack in a number of economies relative to 2009-10," the paper said.
Blanchard and Leigh said the effect of government spending on the economy could vary depending on the country and the state of the economy. They cautioned that governments should not necessarily delay austerity, but should take into account its negative impact on growth.
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Purported photo of new BlackBerry phone with QWERTY keyboard leaks

Research In Motion (RIMM) CEO Thorsten Heins recently said during the company’s Q3 earnings call that BlackBerry 7 is still a “strong success” in the Asian-Pacific markets. Despite the company putting most of its weight behind BlackBerry 10 and the Z10 and X10, Heins said RIM will continue supporting BB7 and consumers “might expect us to even build one of the other new products” based on it. Heins suggested on the earnings call new BB7 phones will target entry-level markets with lower price points over its BB10 devices; now, MobileSyrup has posted a photo of a mystery BlackBerry phone sitting next to the BB10-powered Z10 and X10. Could this HTC (2498) Status/ChaCha look-alike be a new BB7 smartphone? It could be, but then again, it could also be a prototype that will never be released or another new BB10-powered QWERTY phone.
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Microsoft Surface trampled at the bottom of the tablet pile this Christmas

While it does have drawbacks just like anything else, Microsoft’s (MSFT) Surface is a great slate for those looking for a fresh new take on the modern tablet. Unfortunately, it doesn’t look like very many people were looking for a fresh new take on the modern tablet this holiday season. In a recent note to investors, R.W. Baird analyst William Power recounted recent conversations had at retailers including Best Buy (BBY) and Staples (SPLS). While speaking with sales reps at the stores, Apple’s (AAPL) iPad was the most highly recommended tablet while Amazon’s (AMZN) Kindle Fire line and Samsung’s (005930) Galaxy Tab line were both recommended as alternatives. Microsoft’s Surface tablet, on the other hand, was not pushed by reps at either chain.
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iPad is a Christmas graveyard for ‘Grand Theft Auto’ and ‘Modern Combat’

At the beginning of December, the traditional video game industry attempted another iPad invasion. New versions of “Grand Theft Auto,” “Modern Combat” and “Baldur’s Gate” hit the iOS app market priced between $5 and $10. Over the past years, we have seen repeated attempts by major console and PC industry franchises to tailor their blockbuster games for iPhone and iPad platforms. None have succeeded. As the iOS app market increasingly favors free games with in-app purchases, the old-timers have started failing spectacularly.
[More from BGR: Microsoft Surface trampled at the bottom of the tablet pile this Christmas]
December is the most important month of the year for the iOS app market and the days around Christmas are the hottest period. As consumers upgrade their iPhones or receive their very first iOS devices, they tend to go on mobile app buying binges. That is why mega franchises like GTA and “Modern Combat” launched their latest iOS products at the beginning of the month. The games were supposed to stay alive for at least three weeks. They did not.
[More from BGR: Mark Cuban: Nokia Lumia 920 ‘crushes’ the iPhone 5]
The lavishly marketed “Grand Theft Auto: Vice City” peaked on iPhone app chart at No.2 on December 8th and plunged to No.36 by December 22nd. It rebounded to No.25 on December 25th. On the iPad, the game plummeted to a shocking No.52 by the all-important Christmas Day, when new iPad owners go berserk on iTunes.
Here is the kicker: on the revenue chart for U.S. iPad apps, the new GTA game had tanked to No.75 by December 25th. This is even worse than the No.52 position on the download chart. I find that genuinely fascinating, because it means that a game with a very stiff download price of $5 is showing weaker revenue performance than on raw download volume.
The GTA title is priced at $5 at a time when 80% of the top-grossing iPad games are free downloads. The top free apps have compelling in-game purchase strategies — “Grand Theft Auto: Vice City” does not. As a result, it is getting beaten by titles such as “Fairway Solitaire” and “My Little Pony” in revenue generation. Having massive name recognition and hundreds of millions of units in console game sales helps very little in the brutally competitive iOS game market.
“Modern Combat 4″ has also plunged out of top-50 on the iPad revenue chart just three weeks after its high-profile debut. The $10 update of “Baldur’s Gate” is out of top-200, brought low by its ridiculously high sticker price.
The proud console and PC game champions keep repeating the same gambit in the iOS market: price ‘em high and ignore the in-app purchase angle. They keep failing. When are we going to see a major console game franchise finally adapt to the Apple (AAPL) ecosystem and create an iOS game that is free to download but lures users into an in-app purchase trap effectively?
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Apple still can’t build enough iPad minis

A common issue often presents itself when Apple (AAPL) launches new products: it can’t build them fast enough. We’ve seen it time and time again, most recently when Apple launched the iPhone 5 and 150,000 dedicated factory workers still couldn’t keep up with demand. Now, a report has surfaced claiming that Apple’s manufacturing partners in the Far East can’t build units fast enough to keep pace with Apple’s iPad mini orders.
[More from BGR: Microsoft Surface trampled at the bottom of the tablet pile this Christmas]
According to Digitimes’ supply chain sources, Apple’s parts suppliers have prepared enough components to build between 10 million and 12 million iPad mini tablets in the fourth quarter to accomodate heavy demand. Apple’s manufacturing partners are only expected to ship 8 million assembled units, however.
[More from BGR: Mark Cuban: Nokia Lumia 920 ‘crushes’ the iPhone 5]
The report states that yield rates are improving though, and Apple is expected to ship 13 million iPad mini tablets in the first quarter of 2013.
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Lack of low-end BlackBerry 10 phone could be a serious stumbling block in RIM comeback bid

South Africa is one of Research In Motion’s (RIMM) top five markets in the world, and it is a decent proxy for the entire African market. Leading regional carrier Vodacom’s November smartphone statistics illustrate exactly why BlackBerry 10 cannot arrive soon enough… and why RIM badly needs a cheap new BlackBerry 10 model by spring.
[More from BGR: Apple CEO Tim Cook sees pay drop 99% in 2012]
Vodacom holds more than 50% of the South African handset market and South Africa is the largest mobile phone market in the continent.
[More from BGR: Microsoft Surface trampled at the bottom of the tablet pile this Christmas]
On November 12th, Vodacom announced that it had 2.7 million BlackBerry users on its South African network, a number that increased by 300,000 in three months. The number of Android users grew by 200,000 to 700,000 subscribers. The number of iPhone users grew by 250,000 to 500,000.
Of course, there are many ways at looking at these trends but it’s striking that the growth of the BlackBerry user base has slowed down to 12% in a quarter while Android growth is now at 40% and iPhone growth is 100%. Even though the pool of BlackBerry users is still expanding in the most important African market, we are now close to the tip-off point where the absolute number of both Android and iPhone users added each quarter is going to be larger than the number of new BlackBerry subs.
RIM announced last week that its global customer base has finally started shrinking — the BlackBerry subscriber pool dropped from 80 million to 79 million between the August and November quarters.
During the August quarter, RIM still managed to add 2 million BlackBerry subscribers. The non-U.S. BlackBerry subscriber base is still growing, but too slowly to offset the U.S. erosion. This is the trend that the Vodacom November numbers also reflect. In Africa and Asia, that BlackBerry growth slowdown is unlikely to reverse until RIM launches a cheap, sub-$250 model with the new BlackBerry 10 OS.
In South Africa, affluent buyers are now flocking under the iPhone banner, while Samsung (005930) and Chinese vendors are mopping up middle class consumers with cheap Android models. New high-end phones in the $600 range are not going to change this equation.
RIM must strike hard in the low-end market to regain its African momentum. By Easter, Android and iPhone camps will have pulled ahead of RIM in new subscriber additions at Vodacom. Next spring, South Africa could well be the most important global bellwether of RIM’s struggle to recapture subscriber growth.
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