Apple's Cook fields his A-team before a wary Wall Street

SAN FRANCISCO (Reuters) - Apple Inc Chief Executive Tim Cook's new go-to management team of mostly familiar faces failed to drum up much excitement on Wall Street, driving its shares to a three-month low on Wednesday.

The world's most valuable technology company, which had faced questions about a visionary-leadership vacuum following the death of Steve Jobs, on Monday stunned investors by announcing the ouster of chief mobile software architect Scott Forstall and retail chief John Browett -- the latter after six months on the job.

Cook gave most of Forstall's responsibilities to Macintosh software chief Craig Federighi, while some parts of the job went to Internet chief Eddy Cue and celebrated designer Jony Ive.

But the loss of the 15-year veteran and Jobs's confidant Forstall, and resurgent talk about internal conflicts, exacerbated uncertainty over whether Cook and his lieutenants have what it takes to devise and market the next ground-breaking, industry-disrupting product.

Apple shares ended the day down 1.4 percent at 595.32. They have shed a tenth of their value this month -- the biggest monthly loss since late 2008, and have headed south since touching an all-time high of $705 in September.

For investors, the management upheaval from a company that usually excels at delivering positive surprises represents the latest reason for unease about the future of a company now more valuable than almost any other company in the world.

Apple undershot analysts targets in its fiscal third quarter, the second straight disappointment. Its latest Maps software was met with widespread frustration and ridicule over glaring mistakes. Sources told Reuters that Forstall and Cook disagreed over the need to publicly apologize for its maps service embarrassment.

And this month, Apple entered the small-tablet market with its iPad mini, lagging Amazon.com Inc and Google Inc despite pioneering the tablet market in 2010.

Investor concerns now center around the demand, availability and profitability of new products, including the iPad mini set to hit stores on Friday.

"The sudden departure of Scott Forstall doesn't help," said Shaw Wu, an analyst with Sterne Agee. "Now there's some uncertainty in the management."

"There appears to be some infighting, post-Steve Jobs, and looks like Cook is putting his foot down and unifying the troops."

Apple declined to comment beyond Monday's announcement.

Against that backdrop, Cook's inner circle has some convincing to do. In the wake of Forstall's exit, iTunes maestro Eddy Cue -- dubbed "Mr Fixit", the sources say -- gets his second promotion in a year, taking on an expanded portfolio of all online services, including Siri and Maps.

The affable executive with a tough negotiating streak who, according to documents revealed in court, lobbied Jobs aggressively and finally convinced the late visionary about the need for a smaller-sized tablet, has become a central figure: a versatile problem-solver for the company.

Ive, the British-born award-winning designer credited with pushing the boundaries of engineering with the iPod and iPhone, now extends his skills into the software realm with the lead on user interface.

Marketing guru Schiller continues in his role, while career engineer Mansfield canceled his retirement to stay on and lead wireless and semiconductor teams. Then there's Federighi, the self-effacing software engineer who a source told Reuters joined Apple over Forstall's initial objections, and has the nickname "Hair Force One" on Game Center.

"With a large base of approximately 60,400 full-time employees, it would be easy to conclude that the departures are not important," said Keith Bachman, analyst with BMO Capital Markets. "However, we do believe the departures are a negative, since we think Mr. Forstall in particular added value to Apple."

TEAM COOK

Few would argue with Forstall's success in leading mobile software iOS and that he deserves a lot of credit for the sale of millions of iPhones and iPads.

But despite the success, his style and direction on the software were not without critics, inside and outside.

Forstall often clashed with other executives, said a person familiar with him, adding he sometimes tended to over-promise and under-deliver on features. Now, Federighi, Ive and Cue have the opportunity to develop the look, feel and engineering of the all-important software that runs iPhones and iPads.

Cue, who rose to prominence by building and fostering iTunes and the app store, has the tough job of fixing and improving Maps, unveiled with much fanfare by Forstall in June, but it was found full of missing information and wrongly marked sites.

The Duke University alum and Blue Devils basketball fan -- he has been seen courtside with players -- is deemed the right person to accomplish this, given his track record on fixing services and products that initially don't do well.

The 23-year veteran turned around the short-lived MobileMe storage service after revamping and wrapping it into the reasonably well-received iCloud offering.

"Eddy is certainly a person who gets thrown a lot of stuff to ‘go make it work' as he's very used to dealing with partners," said a person familiar with Cue. The person said Cue was suited to fixing Maps given the need to work with partners such as TomTom and business listings provider Yelp.

Cue's affable charm and years of dealing with entertainment companies may come in handy as he also tries to improve voice-enabled digital assistant Siri. He has climbed the ladder rapidly in the past five years and was promoted to senior vice president last September, shortly after Cook took over as CEO.

Both Cue and Cook will work more closely with Federighi, who spent a decade in enterprise software before rejoining Apple in 2009, taking over Mac software after the legendary Bertrand Serlet left the company in March last year

Federighi was instrumental in bringing popular mobile features such as notifications and Facebook integration onto the latest Mac operating system Mountain Lion, which was downloaded on 3 million machines in four days.

The former CTO of business software company Ariba, now part of SAP, worked with Jobs at NeXT Computer. Federighi is a visionary in software engineering and can be as good as Jobs in strategic decisions for the product he oversees, a person who has worked with him said.

His presentation skills have been called on of late, most recently at Apple annual developers' gathering in the summer.

Then there's Ive, deemed Apple's inspirational force. Among the iconic products he has worked on are multi-hued iMac computers, the iPod music player, the iPhone and the iPad.

Forstall's departure may free Ive of certain constraints, the sources said. His exit brought to the fore a fundamental design issue -- to do or not to do digital skeuomorphic designs. Skeuomorphic designs stay true to and mimic real-life objects, such as the bookshelf in the iBooks icon, green felt in its Game Center app icon, and an analog clock depicting the time.

Forstall, who will stay on as adviser to Cook for another year, strongly believed in these designs, but his philosophy was not shared by all. His chief dissenter was Ive, who is said to prefer a more open approach, which could mean a slightly different design direction on the icons.

"There is no one else who has that kind of (design) focus on the team," the person said of Ive. "He is critical for them."

(Additional reporting by Alistair Barr; Editing by Edwin Chan and Ken Wills)

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Spears, Odom face test of live TV on 'X Factor'

LOS ANGELES (AP) — Britney Spears was coolly composed on the first live episode of "The X Factor." The same can't be said for new host Khloe Kardashian Odom and her microphone.

Odom, adding to her reality TV credentials, was paired with Mario Lopez to emcee "X Factor" as the singing contest shifted Wednesday from taped to live broadcasts.

Lopez, host of "Extra," performed like the pro he is. Odom came across like the novice she is, shouting her lines despite the mic clutched in her hand and making awkward small talk with contestants and judge and executive producer Simon Cowell.

When Lopez teased 13-year-old singer Diamond White about having a boyfriend, the girl replied, "No, we're friends. My mom would kill me."

"Don't let your mom kill you," exclaimed Odom, drawing a confused smile from White.

At another point, Odom sounded like an oddly flirtatious schoolgirl as she introduced Cowell as "Mr. Sexy."

In a conference call Tuesday, Cowell had discussed expectations for his co-host, a member of reality TV's first family that includes sister Kim Kardashian. Odom's credits include "Khloe and Lamar" with husband Lamar Odom, a Los Angeles Clippers player.

She wants to "prove a point," Cowell said, noting observers had questioned Odom's readiness to steer a live program.

He warned that she would need "nerves of steel" Wednesday because she had less rehearsal time than planned.

"I kind of like to see the unpredictable and I quite like seeing people under pressure and just how they deal with it," Cowell said. Odom and Lopez replaced first-season host Steve Jones, a U.K. TV personality.

Cowell also expressed reservations about how Spears would manage.

While lauding her as "very, very good judge" so far, he told the teleconference it was unclear "what she's going to be like on a live show" involving competition between judges over the contestants they are mentoring.

Spears, a pop princess who has struggled in her personal life, including spells in rehab, proved up to the task. She heaped praise on singers and remained calm when criticism was leveled at those she's guiding.

When Cowell told one teenager that "we need to sort your vocals out," Spears shot back, "I disagree. I think you're a true star."

Of the 16 acts featured on the live "X Factor," four will be cut Thursday by Spears, Cowell, Antonio "L.A." Reid and Demi Lovato. Viewers will decide contestants' fates in following weeks.

Cowell took a moment at the start of Wednesday's show to express sympathy for Hurricane Sandy victims on the East Coast, saying, "our hearts are with you and we hope things get sorted out quickly."

An on-screen crawl invited viewers to donate to the American Red Cross.

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EDITOR'S NOTE — Lynn Elber is a national television columnist for The Associated Press. She can be reached at lelber(at)ap.org.

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Man with bionic leg to climb Chicago skyscraper

CHICAGO (AP) — Zac Vawter considers himself a test pilot. After losing his right leg in a motorcycle accident, the 31-year-old software engineer signed up to become a research subject, helping to test a trailblazing prosthetic leg that's controlled by his thoughts.

He will put this groundbreaking bionic leg to the ultimate test Sunday when he attempts to climb 103 flights of stairs to the top of Chicago's Willis Tower, one of the world's tallest skyscrapers.

If all goes well, he'll make history with the bionic leg's public debut. His whirring, robotic leg will respond to electrical impulses from muscles in his hamstring. Vawter will think, "Climb stairs," and the motors, belts and chains in his leg will synchronize the movements of its ankle and knee. Vawter hopes to make it to the top in an hour, longer than it would've taken before his amputation, less time than it would take with his normal prosthetic leg — or, as he calls it, his "dumb" leg.

A team of researchers will be cheering him on and noting the smart leg's performance. When Vawter goes home to Yelm, Wash., where he lives with his wife and two children, the experimental leg will stay behind in Chicago. Researchers will continue to refine its steering. Taking it to the market is still years away.

"Somewhere down the road, it will benefit me and I hope it will benefit a lot of other people as well," Vawter said about the research at the Rehabilitation Institute of Chicago.

Bionic — or thought-controlled — prosthetic arms have been available for a few years, thanks to pioneering work done at the Rehabilitation Institute. With leg amputees outnumbering people who've lost arms and hands, the Chicago researchers are focusing more on lower limbs. Safety is important. If a bionic hand fails, a person drops a glass of water. If a bionic leg fails, a person falls down stairs.

The Willis Tower climb will be the bionic leg's first test in the public eye, said lead researcher Levi Hargrove of the institute's Center for Bionic Medicine. The climb, called "SkyRise Chicago," is a fundraiser for the institute with about 2,700 people climbing. This is the first time the climb has played a role in the facility's research.

To prepare, Vawter and the scientists have spent hours adjusting the leg's movements. On one recent day, 11 electrodes placed on the skin of Vawter's thigh fed data to the bionic leg's microcomputer. The researchers turned over the "steering" to Vawter.

He kicked a soccer ball, walked around the room and climbed stairs. The researchers beamed.

Vawter likes the bionic leg. Compared to his regular prosthetic, it's more responsive and more fluid. As an engineer, he enjoys learning how the leg works.

It started with surgery in 2009. When Vawter's leg was amputated, a surgeon repositioned the residual spaghetti-like nerves that normally would carry signals to the lower leg and sewed them to new spots on his hamstring. That would allow Vawter one day to be able to use a bionic leg, even though the technology was years away.

The surgery is called "targeted muscle reinnervation" and it's like "rewiring the patient," Hargrove said. "And now when he just thinks about moving his ankle, his hamstring moves and we're able to tell the prosthesis how to move appropriately."

To one generation it sounds like "The Six Million Dollar Man," a 1970s TV show featuring a rebuilt hero. A younger generation may think of Luke Skywalker's bionic hand.

But Hargrove's inspiration came not from fiction, but from his fellow Canadian Terry Fox, who attempted a cross-country run on a regular artificial leg to raise money for cancer research in 1980.

"I've run marathons, and when you're in pain, you just think about Terry Fox who did it with a wooden leg and made it halfway across Canada before cancer returned," Hargrove said.

Experts not involved in the project say the Chicago research is on the leading edge. Most artificial legs are passive. "They're basically fancy wooden legs," said Daniel Ferris of the University of Michigan. Others have motorized or mechanical components but don't respond to the electrical impulses caused by thought.

"This is a step beyond the state of the art," Ferris said. "If they can achieve it, it's very noteworthy and suggests in the next 10 years or so there will be good commercial devices out there."

The $8 million project is funded by the U.S. Department of Defense and involves Vanderbilt University, the Massachusetts Institute of Technology, the University of Rhode Island and the University of New Brunswick.

Vawter and the Chicago researchers recently took the elevator to the 103rd floor of the Willis Tower to see the view after an afternoon of work in the lab. Hargrove and Vawter bantered in the elevator in anticipation of Sunday's event.

Hargrove: "Am I allowed to trash talk you?"

"It's fine," Vawter shot back. "I'll just defer it all to the leg that you built."

At the top, Vawter stood on a glass balcony overlooking the city. The next time he heads to the top, he and the bionic leg will take the stairs.

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AP Medical Writer Carla K. Johnson can be reached at http://www.twitter.com/CarlaKJohnson.

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Thousands still trapped in homes after Sandy

NEW YORK, N.Y. - People along the battered U.S. East Coast slowly began reclaiming their daily routines Thursday, even as crews searched for victims and tens of thousands remained without power after superstorm Sandy claimed more than 70 lives.

The New York Stock Exchange came back to life, and two major New York airports reopened to begin the long process of moving stranded travellers around the world.

New York's three major airports were expected to be open Thursday morning with limited flights. Limited service on the subway, which suffered the worst damage in its 108-year history, would resume Thursday.

President Barack Obama landed in New Jersey on Wednesday, which was hardest hit by Monday's hurricane-driven storm, and he took a helicopter tour of the devastation with Gov. Chris Christie. "We're going to be here for the long haul," Obama told people at one emergency shelter.

For the first time since the storm pummeled the heavily populated Northeast, doing billions of dollars in damage, brilliant sunshine washed over New York City, for a while.

At the stock exchange, running on generator power, Mayor Michael Bloomberg gave a thumbs-up and rang the opening bell to whoops from traders. Trading resumed after the first two-day weather shutdown since a blizzard in 1888.

It was clear that restoring the region to its ordinarily frenetic pace could take days — and that rebuilding the hardest-hit communities and the transportation networks could take considerably longer.

There were still only hints of the economic impact of the storm.

Forecasting firm IHS Global Insight predicted it would cause $20 billion in damage and $10 billion to $30 billion in lost business. Another firm, AIR Worldwide, estimated losses up to $15 billion.

About 6 million homes and businesses were still without power, mostly in New York and New Jersey. Electricity was out as far west as Wisconsin in the Midwest and as far south as the Carolinas.

In New Jersey, National Guard troops arrived in the heavily flooded city of Hoboken, just across the river from New York City, to help evacuate about 20,000 people still stuck in their homes and deliver ready-to-eat meals. Live wires dangled in floodwaters that Mayor Dawn Zimmer said were rapidly mixing with sewage.

Tempers flared. A man screamed at emergency officials in Hoboken about why food and water had not been delivered to residents just a few blocks away. The man, who would not give his name, said he blew up an air mattress to float over to a staging area.

As New York crept toward a semi-normal business day, morning rush-hour traffic was heavy as buses returned to the streets and bridges linking Manhattan to the rest of the world were open.

A huge line formed at the Empire State Building as the observation deck reopened.

Tourism returned, but the city's vast and aging infrastructure remained a huge challenge.

Power company Consolidated Edison said it could be the weekend before power is restored to Manhattan and Brooklyn, perhaps longer for other New York boroughs and the New York suburbs.

Amtrak said the amount of water in train tunnels under the Hudson and East rivers was unprecedented, but it said it planned to restore some service on Friday to and from New York City — its busiest corridor — and would give details Thursday.

In Connecticut, some residents of Fairfield returned home in kayaks and canoes to inspect widespread damage left by retreating floodwaters that kept other homeowners at bay.

"The uncertainty is the worst," said Jessica Levitt, who was told it could be a week before she can enter her house. "Even if we had damage, you just want to be able to do something. We can't even get started."

In New York, residents of the flooded beachfront neighbourhood of Breezy Point returned home to find fire had taken everything the water had not. A huge blaze destroyed perhaps 100 homes in the close-knit community where many had stayed behind despite being told to evacuate.

John Frawley, who lived about five houses from the fire's edge, said he spent the night terrified "not knowing if the fire was going to jump the boulevard and come up to my house."

"I stayed up all night," he said. "The screams. The fire. It was horrifying."

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Contributors to this report included Associated Press writers Angela Delli Santi in Belmar, New Jersey; Geoff Mulvihill and Larry Rosenthal in Trenton, New Jersey; Katie Zezima in Atlantic City, New Jersey; Samantha Henry in Jersey City, New Jersey; Pat Eaton-Robb and Michael Melia in Hartford, Connecticut; Susan Haigh in New London, Connecticut; John Christoffersen in Bridgeport, Connecticut; Alicia Caldwell and Martin Crutsinger in Washington; David Klepper in South Kingstown, Rhode Island; David B. Caruso, Colleen Long, Jennifer Peltz, Tom Hays, Larry Neumeister, Ralph Russo and Scott Mayerowitz in New York.

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Apparent insider attack kills 2 NATO troops

KABUL, Afghanistan (AP) — A man wearing an Afghan police uniform killed two NATO troops in southern Afghanistan on Tuesday, the international military alliance said.

The assault appeared to the be the latest in a string of insider attacks that have threatened to sever the partnership between international troops and the Afghan forces they are trying to train to take over responsibility for the country's security. There have also been cases of insurgents donning Afghan uniforms in assaults.

A statement from NATO gave no further details, saying the shooting is still under investigation.

Afghan officials said there was an attack in Helmand province's Nahri Sarraj district but also could not confirm any details.

"We know that there are casualties," said Ismail Hotak, the director of the provincial office that coordinates with the international forces.

Both the British and American militaries have large contingents in Helmand.

At least 53 international troops have been killed in attacks by Afghan soldiers or police this year, and a number of other assaults are still under investigation, the international alliance has said.

The surge in insider attacks is throwing doubt on the capability of the Afghan security forces to take over from international troops ahead of a planned handover to the Afghans in 2014. It has further undermined public support for the 11-year war in NATO countries.

The attacks have not been limited to members of the NATO-led international coalition. More than 50 Afghan members of the government's security forces also have died this in attacks by their own colleagues.

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Swift's 'Red' sells 1.2 million copies in debut

NEW YORK (AP) — Taylor Swift's new album is called "Red," but its true color is a brilliant platinum. The 22-year-old sold 1.2 million copies of her latest album in its first week — the largest sales week for any album in a decade.

Nielsen SoundScan confirmed the blockbuster sales on Tuesday night. "Red" marks Swift's second straight album to sell more than 1 million copies in its first week; "Speak Now," her third album, sold a little over 1 million copies when it was released in 2010. She is the only woman to have two albums sell more than 1 million copies in its first week.

"They just told me Red sold 1.2 million albums first week. How is this real life?! You are UNREAL. I love you so much. Thanks a million ;)," Swift tweeted Tuesday night.

The only other act to sell more than 1 million copies of an album in its debut week twice was 'N Sync.

Swift isn't a boy band, but she's certainly got the appeal of one: the country crossover has a huge following, particularly among teens who have followed her since she was a teen herself, releasing her first album. But she's also a critic's darling: The Grammy-winner's "Red" garnered plenty of acclaim when it was released last week.

Swift was omnipresent in the week of the album's release, appearing on such shows as "Good Morning America" and "Katie." She also joined with two untraditional partners — Papa John's and Walgreens, which offered the album for sale. And she announced her upcoming tour.

The last album to sell more than 1 million copies in its debut week was Lady Gaga's "Born This Way," which sold 1.1 million copies last year. However, that album was deeply discounted on Amazon.com in its first week.

Swift has the opportunity to celebrate for a second time this week: As the reigning "Entertainer of the Year" at the CMA Awards, she has the chance to capture the trophy again when it is held Thursday in Nashville.

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http://www.taylorswift.com

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Nekesa Mumbi Moody is the AP's Global Entertainment & Lifestyles Editor. Follow her at http://www.twitter.com/nekesamumbi

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Millions in Northeast struggle after massive storm

NEW YORK (Reuters) - The northeastern United States battled epic flood waters and lengthy power outages on Tuesday after the massive storm Sandy pummeled the coast with a record storm surge, high winds and heavy rains that killed at least 45 people and caused billions of dollars in losses.

Millions of people in New York City and other hard-hit areas will spend days or weeks recovering from a storm already seen as far more destructive that Hurricane Irene, which slammed into the same region a year ago. One disaster modeling company said Sandy may have caused up to $15 billion in insured losses.

The storm killed 18 people in New York City, among 23 total in New York state, while six died in New Jersey. Seven other states reported fatalities.

Some 8.2 million homes and businesses in several states were without electricity as trees toppled by Sandy's fierce winds took down power lines.

Sandy hit the coast with a week to go to the November 6 presidential election and turned its fury inland with heavy snowfall, dampening an unprecedented drive to encourage early voting and raising questions whether some polling stations will be ready to open on Election Day.

New York City will struggle without its subway system, which was inundated and will remain shut for days. Much of the Wall Street district was left underwater but officials hoped to have financial markets reopen on Wednesday.

Sandy was the biggest storm to hit the country in generations when it crashed ashore with hurricane-force winds on Monday near the New Jersey gambling resort of Atlantic City, devastating the Jersey Shore tourist haven. Flood waters lifted parked cars and deposited them on an otherwise deserted highway.

With the political campaign and partisanship on hold, Democratic President Barack Obama and Republican New Jersey Governor Chris Christie planned to tour New Jersey disaster areas on Wednesday.

"It's total devastation down there. There are boats in the street five blocks from the ocean," said Peter Sandomeno, an owner of the Broadway Court Motel in Point Pleasant Beach, New Jersey.

Christie, who has been a strong supporter of Republican presidential challenger Mitt Romney, praised Obama and the federal response to the storm.

Obama and Romney put campaigning on hold for a second day but Romney planned to hit the trail again in Florida on Wednesday and Obama seemed likely to resume campaigning on Thursday for a final five-day sprint to Election Day.

Obama faces political danger if the government fails to respond well, as was the case with predecessor George W. Bush's botched handling of Hurricane Katrina in 2005. Obama has a chance to show that his administration has learned the lessons of Katrina and that he can lead during a crisis.

NEW YORK UNDER WATER

Sandy brought a record storm surge of almost 14 feet to downtown Manhattan, well above the previous record of 10 feet during Hurricane Donna in 1960, the National Weather Service said.

The storm forced New York City to postpone its traditional Halloween parade, which had been set for Wednesday night in Greenwich Village and threatened to disrupt Sunday's New York City marathon.

The lower half of Manhattan went dark when surging seawater flooded a substation and as power utility Consolidated Edison shut down others pre-emptively. Some 250,000 customers lost power.

Fire ravaged the Breezy Point neighborhood in the borough of Queens, destroying 110 homes and damaging 20 while destroying still more in the nearby neighborhood of Belle Harbor. Remarkably, no fatalities were reported.

"To describe it as looking like pictures we've seen of the end of World War Two is not overstating it," New York Mayor Michael Bloomberg said after touring the area. "The area was completely leveled. Chimneys and foundations were all that was left of many of these homes."

Hospitals closed throughout the region, forcing patients to relocate and doctors to carry premature babies down more than a dozen flights of stairs at one New York City facility.

While some parts of the city went unscathed, neighborhoods along the East and Hudson rivers bordering Manhattan were underwater and expected to be without power for days, as were low-lying streets in Battery Park near Ground Zero, where the World Trade Center stood before the September 11, 2001, attacks.

"I'm lucky to have gas; I can make hot water. But there is no heating and I'm all cold inside," said Thea Lucas, 87, who lives alone in Manhattan's Lower East Side.

DESTRUCTION THROUGHOUT REGION

Airlines canceled more than 18,000 flights, though two of the New York City area's three major airports planned to reopen with limited service on Wednesday.

Cellphone service went silent in many states and some emergency call centers were affected.

Some cities like Washington, Philadelphia and Boston were mostly spared but he storm reached as far inland as Ohio and parts of West Virginia were buried under 3 feet (1 meter) of snow, a boon for ski resorts that was one of the storm's few bright spots.

The western extreme of Sandy's wind field buffeted the Great Lakes region, according to Andrew Krein of the National Weather Service, generating wind gusts of up to 60 mph on the southern end of Lake Michigan and up to 35 mph Chicago.

In Cleveland, buildings in the city's downtown area were evacuated due to flooding, police said. Winds gusting to 50 mph brought down wires and knocked out power to homes and business. City officials asked residents to stay inside and for downtown businesses to remained closed for the day.

Amid the devastation there was opportunity. Snowmakers at Snowshoe Mountain in the mountains of West Virginia had their equipment running at full speed on Tuesday, taking advantage of the cold temperatures to build the 24-30 inch base they need to open for skiing by Thanksgiving.

"There are snowmakers out there making snow in what was a hurricane and blizzard," said Dave Dekema, marketing director for the resort, which received a foot-and-a-half of snow, with another foot or two expected.

The resort's phones, email account and Facebook pages were "going crazy," Dekema said, with avid skiers and snowboarders wondering if there was any chance of getting out on the mountain this weekend. He said that was unlikely.

(Additional reporting by Scott Malone in Boston; Ilaina Jonas, Daniel Bases, Lucas Jackson, Edward Krudy and Scott DiSavino in New York; Ian Simpson in West Virginia; Diane Bartz and Andrea Shalal-Esa in Washington; Brendan O'Brien in Milwaukee; Susan Guyett in Indianapolis; Kim Palmer in Cleveland and James B. Kelleher in Chicago. Writing by Daniel Trotta and Ros Krasny; Editing by Bill Trott)

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Poll: Australians split over PM's sexism judgment

CANBERRA, Australia (AP) — Australians appear to be split over Prime Minister Julia Gillard's judgment that her main political rival is sexist.

In a fiery speech to Parliament on Oct. 9, Gillard branded opposition leader Tony Abbott a misogynist for a string of allegedly sexist comments. Her commentary has been lauded by feminists around the world, but a poll published Tuesday showed Australians are divided.

Abbott apologized last week for suggesting that Gillard's government was inexperienced in family policy — a criticism some saw as a cheap shot at Gillard, who has no children.

The poll by Sydney market researcher Newspoll published in The Australian newspaper found that 45 percent of respondents said Abbott had behaved in a sexist way toward Gillard recently and 39 percent said he had not. There was no clear majority view, with 16 percent of respondents undecided.

How Abbott was judged on the sexism charge closely correlated with how respondents intend to vote at general elections next year.

Of those who said Abbott is sexist, 66 percent support Gillard's center-left Labor Party. Of those who said he is not, 76 percent back his conservative coalition.

Women were more likely than men to condemn Abbott for sexism.

Of those who said he was sexist, 43 percent were women and 35 percent were men. Of those who responded that he was not sexist, 48 percent were men and 41 percent were women.

Despite the divide, Gillard's public stance against sexism has gained solid support.

Gillard has said she stands by every word of her blistering attack on Abbott and has vowed to speak out against sexism in the future whenever she sees it.

More than three in four respondents (78 percent) said Gillard's response to the sexism issue had been "about right," including 83 percent of women and 72 percent of men.

Another 16 percent accused her of overreacting (22 percent of men and 12 percent of women), while 5 percent said she had underreacted (5 percent of men and 4 percent of women).

The poll was based on a random telephone survey of 1,218 voters nationwide at the weekend. It had a 3 percentage point margin of error.

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Panasonic may curb solar panel, lithium battery expansion: sources

TOKYO (Reuters) - Electronics conglomerate Panasonic Corp may curtail its expanded production of solar panels and small lithium batteries used in PCs and other devices as part of new round of restructuring, two sources at the company told Reuters.

Panasonic recently built a solar panel plant in Malaysia for 45 billion yen ($564 million), upping capacity by one-third to 900 megawatts. Plans to further ramp up production to 1.5 gigawatts may be scaled back, however, because of weak demand, particularly in Europe, the sources said on condition they were not identified.

Panasonic's new president, Kazuhiro Tsuga, has promised a new revival plan for the Japanese company by the end of the current business year next March 31. He has said he will weed out loss-making or low-profitability units.

The firm's business in small lithium batteries has been hurt by price competition from Korean and Chinese competitors. Falling into the red last year, it was aiming to return to profit this year by shifting production to China, where costs are lower, but may post a loss instead, the sources said.

As a result of the squeeze on expanded output of solar panels and batteries, Panasonic's energy unit may struggle to reach a target of raising sales to more than 1 trillion yen, or 10 percent of overall sales, and operating margin to at least 10 percent by March 2016, the sources said.

The unit retains 202 billion yen of goodwill following the acquisition of Sanyo in 2010. Analysts estimate that two-thirds of that is related to solar panels and small lithium batteries.

Shares of Panasonic, which releases its results on Wednesday for the quarter ended September 30, rose 3 percent in morning trading in Tokyo to 507 yen. ($1 = 79.8150 Japanese yen) (Writing by Tim Kelly; Editing by Michael Watson)

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In Vietnam, US relies on pirate site to network

HO CHI MINH CITY, Vietnam (AP) — It's a wildly popular website laden with unlicensed songs and Hollywood movies, a prime exhibit of the digital piracy that is strangling the music industry in Asia and eroding legitimate online sales around the world.

The free-to-download bonanza has pushed Vietnam's Zing.vn into the ranks of the globe's top 550 websites. But a few clicks inside the site reveal a surprising presence: the U.S. government, which maintains a bustling social media account there.

Washington is a vocal proponent of intellectual property rights in Vietnam as it is around the world, and a site like Zing would be shut down in the United States. But with space for public diplomacy limited in Communist Vietnam, the American embassy uses its "Zingme" account to reach out to young people in Vietnam as it seeks to build closer ties with its former enemy.

The embassy's presence shows just how mainstream pirate sites have become in Vietnam, where the government does nothing to stop them operating. But it also raises questions whether Washington is legitimizing a renowned pirate site that record labels, singers and industry groups say ignores requests that it take down infringing material.

Coca-Cola and Samsung pulled their advertising from the site earlier this month because of piracy concerns following questions by The Associated Press. The move challenged Zing's business model and was praised by recording industry groups. Samsung said last week it was also closing its Zingme account for the same reason.

The embassy said it recognizes the concerns for U.S. copyright interests posed by Zing but that it believes that contact with the website's users could reduce traffic or infringing activity on it. The mission sometimes uses its Zingme page to post about copyright infringement.

Its statement noted that the site had removed, at its request, the link to infringing material that appears on other Zingme pages as a matter of course. It also noted to its lack of options in a country where the Communist government controls the media, saying "there were few spaces for public discourse and intermittent access to Facebook", referring to a block the government sometimes puts on the American social networking site.

But not everyone thinks engaging with Zing is the right thing to do.

"Here we are as an American company trying to set things right with one of the biggest pirates in Vietnam but the U.S. embassy is essentially showing its support by being on its site," said Mimi Nguyen, an American who has been trying fruitlessly to get Zing to take down some 10,000 songs owned by her family's business for a year.

"It is really sad to find out the embassy is using their platform."

The Recording Industry Association of America, which praised the decision by Samsung and Coke to withdrawn from Zing and has labeled Zing a "notorious" pirate site, said it was neither endorsing nor criticizing the embassy's decision to maintain the site.

Neil Turkewitz, a senior vice president at the association, said he imagined the embassy had tried to balance the ability to target a tech-savvy demographic with anti-piracy messages against the appearance of a connection between it and the site.

"My guess is that it wasn't an easy decision," he said.

The recording industry around the world is struggling to make money from online distribution models, and illegal downloading remains rampant. Artists and producers in much of Asia are feeling the pinch especially hard because governments have failed to pass or enforce anti-piracy laws. Licensed CDs, films and downloads can cost the equivalent of a day's salary, making it even harder to wean people off pirated products.

In Vietnam, inaction by a government that sees no political upside in cracking down on what many see as a victimless crimes has pushed the industry to the point of collapse. Zing is seen as the No.1 enemy by those who speak out against its effective stranglehold over the country's music industry.

"Zing is destroying the industry and they know it," said record producer Quoc Trung, who is leading a campaign against online piracy. "We need people to pay for music, not just click on it. It is now or never."

Zing, which declined repeated requests for comment on this article and a previous one, has used free download to become the sixth-most visited site in Vietnam, and the second most popular Vietnamese music download site. Around 15 percent of its visitors are from overseas. It is not the only infringing website in Vietnam by far, but it is the most visited.

Sites that offer pirated content alongside other Internet services like Zing exist elsewhere around the world and are among the most reprehensible, according to the Recording Industry Association of America.

"They want to appear as legitimate actors, and have functions unrelated to piracy, yet operate network services that include features that intentionally and effectively induce infringement," it said in a letter to the U.S. Trade Representative in August asking the government to use all the tools at its disposal to ensure Zing and others are not permitted to undermine legitimate online markets.

"These services deliberately gain market share by providing access to infringing materials, launching music services without any form of licensing, and have demonstrated continued resolve to engage in conduct based upon misappropriation."

Zingme closely resembles Facebook, which recently overtook the Vietnamese site in subscriber numbers, according to one research group. Facebook is sometimes blocked by the government because of fears it could be used to mobilize dissent against its one-party rule. Zingme is never blocked, and is more popular with younger, less educated Vietnamese. Companies and institutions often have accounts on both. The embassy has more than 18,000 friends on Zingme, compared to 12,000 on Facebook.

Many in the industry have no choice but to work with Zing even as it distributes their music and films for free. Not having your music on the site means getting an audience for live concerts, or attracting commercial sponsorship, is almost impossible, industry executives said. But a few are pushing back, among them established singer Le Quyen, who is suing Zing and eight other infringing websites.

"I'm sure that Zing is aware that what they do is wrong, but they are afraid that other singers will put pressure on them if I win the case," she said before one of her near-weekly concerts at a venue owned by her husband here. "That's why they keep avoiding my demands. Their tactic is to drag the case on until their opponent gets tired and gives up."

Some in the industry predict Zing and other websites will embrace a more legitimate model, rather like Baidu in neighboring China, which after years of complaints from international and local record labels about pirated content signed a licensing deal with its former critics last year. Major Western record labels eager to sell music in the 13th most populous country in the world have been in early talks with Zing and other sites, but there is no deal on the horizon.

For now, the sites are not taking down their unlicensed content because doing so would mean that users would flock to that of a rival, and new ones are cropping all the time. Those offering unlimited downloads of Hollywood movies for a monthly subscription as low as $2 are amassing large audiences, and could be looking to leveraging their popularity to become legitimate providers.

"In Vietnam, you build an audience first, and then you negotiate," said Phung Tien Cong, a manager at MVCorp, which is trying to establish a pay-for-song business in collaboration with Zing, other websites and license holders.

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Brummitt can be reached at https://twitter.com/cjbrummitt.

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