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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NBC to hold a benefit concert for Sandy victims

NEW YORK (AP) — NBC will hold a benefit concert Friday for victims of Hurricane Sandy featuring some artists native to the areas hardest hit.

Bruce Springsteen and Jon Bon Jovi of New Jersey and Billy Joel of Long Island are scheduled to appear at the concert, hosted by "Today" show co-host Matt Lauer.

Other performers include Christina Aguilera, Sting and Jimmy Fallon.

The telecast will benefit the American Red Cross and will be shown on NBC and its cable stations including Bravo, CNBC, USA, MSNBC and E! Other networks are invited to join in.

"Hurricane Sandy: Coming Together" will air at 8 p.m. EDT and will be taped-delayed in the West.

The telethon will be broadcast from NBC facilities in Rockefeller Center in New York City.

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NBC is controlled by Comcast Corp.

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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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Storm death toll up, gas lines grow

NEW YORK (Reuters) - New Yorkers awoke to the rumble of subway trains for the first time in four days on Thursday and the death toll continued to rise from the former hurricane Sandy, one of the biggest and most devastating storms ever to hit the United States.


Lines formed at gas stations amid fuel shortages around the U.S. Northeast and emergency utility crews struggled to reach the worst hit areas and restore power to millions of people.


At least 82 people in North America died in the superstorm, which ravaged the northeastern United States on Monday night, and officials said the count could climb higher as rescuers searched house-to-house through coastal towns.


More deaths were recorded overnight as the extent of destruction became clearer in the New York City borough of Staten Island, where the storm lifted whole houses off their foundations.


Authorities recovered 15 bodies from Staten Island. Among those still missing were two boys aged 4 and 2 who were swept from their mother's arms by the floodwaters, the New York Post reported. In all, 34 people died in New York City.


In hard-hit New Jersey, where oceanside towns saw entire neighborhoods swallowed by seawater and the Atlantic City boardwalk was destroyed, the death toll doubled to 12.


New Jersey favorite son Bruce Springsteen, along with Jon Bon Jovi and Sting, will headline a benefit concert for storm victims Friday night on NBC television, the network announced.


Sandy started as a late-season hurricane in the Caribbean, where it killed 69 people, before smashing ashore in the United States with 80 mph winds. It stretched from the Carolinas to Connecticut and was the largest storm by area to hit the United States in decades.


About 4.7 million homes and businesses in 15 U.S. states were without power on Thursday, down from a high of nearly 8.5 million, which surpassed the record 8.4 million customers who went dark from last year's Hurricane Irene.


Sandy made landfall in New Jersey with a full moon around high tide, creating a record storm surge that flooded lower Manhattan. By Thursday, the storm had dissipated over the North American mainland.


After a three-day hiatus, President Barack Obama was due to return to the campaign trail on Thursday, boosted in his re-election bid by a resounding endorsement of his disaster response from the Republican governor of New Jersey.


The Democratic incumbent, tied in polls with Mitt Romney before Tuesday's election, begins a two-day trip to the swing states of Colorado, Ohio and Nevada while his Republican challenger travels to Virginia.


Obama viewed flooded and sand-swept New Jersey shore communities on a helicopter tour of the state with Republican Governor Chris Christie on Wednesday.


"The entire country's been watching. Everyone knows how hard Jersey has been hit," Obama told people at an evacuation shelter in the town of Brigantine.

 

In New York, limited train service returned on some train and subway lines, but more than half of the gas stations in the city and neighboring New Jersey remained shut due to power outages and depleted fuel supplies. Even before dawn, long lines formed at gas stations that were expected to open.


Fuel supplies into New York and New Jersey were being choked off in several ways. Two refineries that make up a quarter of the region's refining capacity were still idle due to power outages or flooding. The New York Harbor waterway that imports a fifth of the area's fuel was still closed to traffic, and major import terminals were damaged and powerless.


In addition, the main oil pipeline from the Gulf Coast, which pumps 15 percent of the East Coast's fuel, remained shut.


Matthew Gessler of Brooklyn went to Breezy Point, a New York neighborhood where fire destroyed 111 homes, to inspect damage to his mother's house. Like others, he likened it to a war zone.


He said you could take a picture of the devastation and say it was the Middle East "and no one would doubt you at all."


In Jersey City, across the Hudson River from New York, drivers negotiated intersections without the aid of traffic lights. Shops were shuttered and lines formed outside pharmacies while people piled sodden mattresses and furniture along the side of the roads. The city has issued a curfew on people as well as a driving ban from 7 p.m. to 7 a.m.


New Yorkers faced an easier commute as the subway system resumed limited operations. But four of the seven subway tunnels under the East River remained flooded and there was no service in Manhattan below 34th Street, where the power is still out.


Subway rides were free as authorities encouraged commuters to use mass transit rather than drive. Mayor Michael Bloomberg and state Governor Andrew Cuomo said private cars must carry at least three people in order to enter New York, after the city was clogged by traffic on Wednesday.


LaGuardia airport in New York was scheduled to reopen on Thursday with limited service. John F. Kennedy and Newark, New Jersey, airports reopened with limited service on Wednesday.


(Additional reporting by Michael Erman, Anna Louie Sussman, Atossa Abrahamian, Martinne Geller and Scott DiSavino in New York, Susan Heavey in Washington, Ian Simpson in West Virginia and Mark Felsenthal in Atlantic City, N.J.; Writing by Eddie Evans and Daniel Trotta)

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Plague of office-buying wears at China's image

XILINHOT, China (AP) — In a small town in northern China's Inner Mongolia where sheep and cattle easily outnumber humans, Fan Chen paid a party boss three times an average urban resident's annual salary to become a local police chief.

The scheme was exposed and fell apart, but it was hardly explosive news. It received just a one-line mention in state media. And a friend of Fan's defended him by saying that by current standards, his misdeeds were insignificant.

"What he paid was simply a drizzle," said Xu Huaiwei, a 68-year-old retired engineer. "It's too common in China, and people have paid far more — millions, or tens of millions of yuan — for a government job."

Fan was a small player in the latest of countless office-buying scandals that have touched Chinese officials from the village up to the provincial level. Some scandals implicate hundreds of officials, and state media reports show that the practice has spread to all arms of the government, including the legislature, police and courts.

Buying and selling office is so rampant in China that it has battered the ruling Communist Party's image as an institution that promotes the competent, not the connected. The practice continues despite vows by Chinese leaders to eradicate it, and the public has grown increasingly disgusted.

Fighting corruption will be one of the biggest challenges for the party leadership that will be installed in November in a once-a-decade transition.

Anti-corruption crusaders have particularly warned against personnel corruption, saying it inevitably breeds other forms of corruption as office buyers seek returns on their money. But there have been no recent signs of new action from the government; the last time a leading official talked publicly about office-buying was two years ago.

"We want those who sell offices to be utterly discredited, and those who buy offices to suffer a double loss," Li Yuanchao, head of the party's central organization commission, said in 2010, when Beijing introduced a set of new personnel measures and waged a crackdown campaign.

Xilinhot, nearly 400 miles north of Beijing, is a growing town that presents ripe opportunities for graft. It is the government seat to Xilingol, a Nebraska-sized region of about 1 million people where coal-mine pits are emerging from the premium grasslands.

In the region's largest city, Western-style villas have mushroomed along a man-made lake in one of its newest developments, and young families go to the KFC, but sheep traders still haul their animals to a business-filled street to find buyers.

Fan was part of a web of office-buying centered on Liu Zhuozhi. First as Xilingol's top executive and then as its chief party secretary, Liu ran the region from 2001 to 2008 before advancing to a vice governor post in Inner Mongolia's capital city, Hohhot.

Last summer in a Beijing court, Liu was sentenced to life in prison for corruption, including selling various government jobs, according to the state-run Beijing News. Liu's lawyer Xu Lanting confirmed the report, which says Liu took more than 8 million yuan ($1.2 million) in bribes — mostly by selling positions, including the one for Fan.

The report said Liu took 650,000 yuan ($103,000) from a man who eventually became the chief planner for Xilinhot, sold the city's party secretary position for 640,000 yuan ($101,000), and accepted 500,000 yuan ($80,000) to promote a person to oversee government archives.

The report identifies Fan Chen only by his family name and said he paid 100,000 yuan ($16,000) to be promoted from a deputy to a chief in a different government unit.

AP could not reach Fan. His friend Xu said Fan paid 300,000 ($48,000) for the promotion to be the police chief in Sunitezuoqi, another town in Xilingol. A propaganda officer from Sunitezuoqi confirmed that Fan Cheng was its last police chief.

An official government site also showed Fan was to be promoted to be the police chief of Sunitezuoqi from a lower-ranked deputy position in Xilinhot. Xu said Fan lost his rank last year when he was implicated during the investigation against Liu, and is now a regular police officer.

In Xilingol, local officials said Liu's case is a thing of past and that office-buying is limited to a handful.

"The majority of our cadres are good. Only a few are corrupt," said Yao Situ, director of foreign affairs.

He said local governments are recruiting and promoting cadres through democratic, fair and transparent competitions that value merit above anything else.

Many experts, however, say graft continues to flourish thanks to opaque government, a lack of accountability, the absence of independent supervision and ineffective punishment. They say that in China's one-party government, personnel decisions are made by a few powerful people despite policies and procedures stipulating collective rulings.

"Simply put, in China's cadre selection procedure, the party chief, the deputy chief for personnel, and the director of personnel wield the real power. For office-seekers, it is far more cost-effective to bribe them than to bribe voters in a democratic election," said He Zengke, who has studied China's corruption for more than 20 years. He is director of the China Center for Comparative Politics and Economics, a Beijing-based think tank.

In a heavily regulated country where the government controls resources, it seems almost all government offices can be a profit-making enterprise.

Transportation officials take kickbacks for road projects. Planning directors cash in on their approval powers. Police chiefs dismiss cases for private payments. Judges accept bribes for lighter sentences.

Office-buying is difficult to root out in part because it is so prevalent in China. Those tasked with combatting corruption — such as party chiefs and prosecutors — are often guilty of it themselves.

Sometimes office-buying is uncovered by chance. In northeastern China's Heilongjiang province, a scandal emerged following an assault on police officers who were investigating prostitution in a bath center.

The assault led authorities to examine the business's finances. They found problematic loans that implicated a senior official at a local state-run bank, according to state media.

Investigators uncovered a pyramid of graft. One official, Li Gang, accepted bribes totaling 2,100,000 yuan ($330,000) from more than 35 people over promotional issues. Li himself paid Suihua party secretary Ma De to be a county party secretary. And Ma got his job by paying 800,000 yuan ($127,000) to Han Guizhi, a Heilongjiang party official in charge of personnel affairs.

Han sold other top positions as well, including the chief prosecutor, the chief of the provincial supreme court and the chief of the personnel bureau, according to state media reports.

In 2010, several senior officials fell to corruption charges, including Huang Yao, former deputy party secretary for southwestern China's Guizhou province, and Wang Huayuan, a party standing committee member overseeing discipline inspection in eastern China's Zhejiang province. State media said they had profited from "job assignments" but did not offer more details.

Now, a criminal investigation against Huang Sheng, formerly the vice governor of eastern China's Shandong province, has silenced the Dezhou government, where many officials were promoted during Huang's tenure as the city's party secretary, according to state media.

Office-buying is just one facet of the pervasive corruption culture in China, where government officials routinely embezzle public funds, take bribes in awarding contracts, and favor family and friends in promotion.

China's most notorious corruption scandal in years involves disgraced politician Bo Xilai, who is accused of taking "huge amounts" of money to seek profits for others through public power. His deputy Wang Lijun took money from businesspeople and other contacts, and in exchange, he released detained criminal suspects when his contributors asked. But there is no confirmed report that Bo bought or sold public office.

In Xilinhot, the mood alternates between indignation and resignation among retired cadres who gather every day in an old hospital administration building to exchange gossip over mahjong tiles and playing cards.

"I cannot understand today's corruption. No one dared to do that under Mao," said 73-year-old Wu Lagai, a retired weather bureau official who was watching a game of Chinese chess.

"I simply cannot accept it. Is this because the punishment is too light? I think that might be the problem's source," he said.

"There are countless Liu Zhuozhis," said Wang Qi, a 70-year-old retired economic development official. "For village cadre and up, if you want any position, you pay for it. The more money you pay, the higher position you get. That's an open secret. The public knows, but there's nothing they can do.

"Unless Chairman Mao came back," Xu said.

"Not even Chairman Mao," Wang said. "It needs a thorough reform."

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In hurricane, Twitter proves a lifeline despite pranksters

SAN FRANCISCO (Reuters) - As Hurricane Sandy pounded the U.S. Atlantic coast on Monday night, knocking out electricity and Internet connections, millions of residents turned to Twitter as a part-newswire, part-911 hotline that hummed through the night even as some websites failed and swathes of Manhattan fell dark.


But the social network also became a fertile ground for pranksters who seized the moment to disseminate rumors and Photoshopped images, including a false tweet Monday night that the trading floor at the New York Stock Exchange was submerged under several feet of water.


The exchange issued a denial, but not before the tweet was circulated by countless users and reported on-air by CNN, illustrating how Twitter had become the essential - but deeply fallible - spine of information coursing through real-time, major media events.


But a year after Twitter gained attention for its role in the rescue efforts in tsunami-stricken Japan, the network seemed to solidify its mainstream foothold as government agencies, news outlets and residents in need turned to it at the most critical hour.


Beginning late Sunday, government agencies and officials, from New York Governor Andrew Cuomo(@NYGovCuomo) to the Federal Emergency Management Agency (@FEMA) to @NotifyNYC, an account handled by New York City's emergency management officials, issued evacuation orders and updates.


As the storm battered New York Monday night, residents encountering clogged 9-1-1 dispatch lines flooded the Fire Department's @fdny Twitter account with appeals for information and help for trapped relatives and friends.


One elderly resident needed rescue in a building in Manhattan Beach. Another user sent @fdny an Instagram photo of four insulin shots that she needed refrigerated immediately. Yet another sought a portable generator for a friend on a ventilator living downtown.


Emily Rahimi, who manages the @fdny account by herself, according to a department spokesman, coolly fielded dozens of requests, while answering questions about whether to call 311, New York's non-emergency help line, or Consolidated Edison.


At the Red Cross of America's Washington D.C. headquarters, in a small room called the Digital Operations Center, six wall-mounted monitors display a stream of updates from Twitter and Facebook and a visual "heat map" of where posts seeking help are coming from.


The heat map informed how the Red Cross's aid workers deployed their resources, said Wendy Harman, the Red Cross director of social strategy.


The Red Cross was also using Radian6, a social media monitoring tool sold by Salesforce.com, to spot people seeking help and answer their questions.


"We found out we can carry out the mission of the Red Cross from the social Web," said Harman, who hosted a brief visit from President Barack Obama on Tuesday.


SPREADING INFORMATION


Twitter, which in the past year has heavily ramped up its advertising offerings and features to suit large brand marketers like Pepsico Inc and Procter & Gamble, suddenly found itself offering its tools to new kind of client on Monday: public agencies that wanted help spreading information.


For the first time, the company created a "#Sandy" event page - a format once reserved for large ad-friendly media events like the Olympics or Nascar races - that served as a hub where visitors could see aggregated information. The page displayed manually- and algorithmically-selected tweets plucked from official accounts like those of New York Mayor Michael Bloomberg and Governor Chris Christie of New Jersey, who was particularly active on the network.


Agencies like the Maryland Emergency Management Agency and the New York Mayor's Office also used Twitter's promoted tweets - an ad product used by advertisers to reach a broader consumer base - to get out the word.


The company said offering such services for free to government agencies was one of several initiatives, including a service that broadcasts location-specific alerts and public announcements based on a Twitter user's postal code.


"We learned from the storm and tsunami in Japan that Twitter can often be a lifeline," said Rachael Horwitz, a Twitter spokeswoman.


Jeannette Sutton, a sociologist at the University of Colorado who has received funding from the National Science Foundation and the Department of Homeland Security to study social media uses in disaster management, said government agencies have been skeptical until recently about using social media during natural disasters.


"There's a big problem with whether it's valid, accurate information out there," Sutton said. "But if you're not part of the conversation, you're going to be missing out."


As the hurricane hit one of the most wired regions in the country, news outlets also took advantage of the smartphone users who chronicled rising tides on every flooded block. On Instagram, the photo-sharing website, witnesses shared color-filtered snapshots of floating cars, submerged gas stations and a building shorn of its facade at a rate of more than 10 pictures per second, Instagram founder Kevin Systrom told Poynter.org on Tuesday.


Many of the images were republished in the live coverage by news websites and aired on television broadcasts.


LIES SLAPPED DOWN


But by late Monday, fake images began to circulate widely, including a picture of a storm cloud gathering dramatically over the Statue of Liberty and a photoshopped job of a shark lurking in a submerged residential neighborhood. The latter image even surfaced on social networks in China.


Then there was the slew of fabricated message from @comfortablysmug, the Twitter account that claimed the NYSE was underwater. The account is owned by Shashank Tripathi, the hedge fund investor and campaign manager for Christopher Wight, the Republican candidate to represent New York's 12th District in the U.S. House of Representatives.


Tripathi, who did not return emails by Reuters seeking comment, apologized Tuesday night for making a "series of irresponsible and inaccurate tweets" and resigned from Wight's campaign.


His identity was first reported by Jack Stuef of BuzzFeed.


Around 3:30 p.m. on Tuesday, Tripathi began deleting many of his Hurricane Sandy tweets. Tripathi's friend, @theAshok, defended Tripathi, telling Reuters on Twitter: "People shouldn't be taking "news" from an anonymous twitter account seriously."


Tripathi's @comfortablysmug's Twitter stream, which is followed by business journalists, bloggers and various New York personalities, had been a well-known voice in digital circles, but mostly for his 140-character-or-less criticisms of the Obama administration, often accompanied by the hashtag, #ObamaIsn'tWorking.


On Tuesday, New York City Councilman Peter F. Vallone Jr. appeared to threaten Tripathi with prosecution when he tweeted that he hoped Tripathi was "less smug and comfortable cuz I'm talking to Cy," presumably referring to Manhattan District Attorney Cyrus Vance Jr.


For its part, Twitter said that it would not have considered suspending the account unless it received a request from a law enforcement agency.


"We don't moderate content, and we certainly don't want to be in a position of deciding what speech is OK and what speech is not," said Horwitz, Twitter's spokeswoman.


But Ben Smith, the editor at Buzzfeed, which outed Tripathi, said Twitter's credibility would not be affected by rumormongers because netizens often self-correct and identify falsehoods.


"They used to say a lie will travel halfway around the world before the truth puts its shoes on, but in the Twitter world, that's not true anymore," Smith said. "The lies get slapped down really fast."


For Smith, the ability to disseminate information via Twitter and Facebook on Monday night became perhaps even more important than his Web publication, which enjoyed one of its better nights in readership but went dark when the blackout crippled the site's servers in downtown Manhattan.


Buzzfeed's staff quickly began publishing on Tumblr instead, and Smith personally took over Buzzfeed's Twitter account to stay in the thick of the conversation.


"Our view of the world is that social distribution is the key thing," Smith said. "We're in the business of creating content that people want to share, more than the business of maintaining a website."


(Reporting By Gerry Shih in San Francisco and Jennifer Ablan and Felix Salmon in New York; Editing by Robert Birsel)


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'Jersey Shore' cast sends support to Sandy victims

The town that for millions made "Jersey Shore" synonymous with Snooki and fist-pumping was among the hardest hit by Superstorm Sandy — and its famous summer residents sent their prayers to those affected.

"Sandy destroyed Seaside — our second home," Nicole "Snooki" Polizzi told MTV News in a statement. "It's devastating to see our boardwalk and favorite spots ruined. My prayers go out to everyone affected by the storm."

Jenni "JWoww" Farley appeared on the "Tonight Show," and host Jay Leno asked about the house she owns with her fiance, Roger, in Toms River.

"Fixable, I want to say. It's really, it like hurts the heart a lot. It's really kind of devastating," she said. But as long as like my dogs, Roger's safe, my friends are safe, we're just all without power."

Vinny Guadagnino told MTV that Seaside Heights had become his second home, while Paul "Pauly D" DelVecchio sent thanks to the "heroes" who were working to help. Sammi Giancola called the impact "devastating."

Guadagnino tweeted that Staten Island, N.Y., where he lives, "looks like war zone" and posted a picture of a downed tree.

He, Farley and DelVecchio asked their Twitter followers to donate $10 to the American Red Cross by texting REDCROSS to 90999. Polizzi also said she would donate but was more true to form: "Ugh trying to change my son's diaper while holding a flash light is not easy," she wrote from East Hanover, using the hashtag "nopower."

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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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Nokia says shipping new Lumia smartphones this week

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Superstorm Sandy rattles entertainment industry

Video gamers in the Northeast angling to be among the first to play the highly anticipated "Assassin's Creed III" will have to wait a little longer — even if they have power.

Area GameStop stores cancelled their midnight launches of Ubisoft's historical action sequel as Superstorm Sandy continued to disrupt the New York entertainment scene, including Broadway, talk shows, concerts and the premiere of "Anna Karenina."

New York City officials said that all film permits for Monday and Tuesday were revoked because of the storm and associated safety precautions.

"There will be no city authorized outdoor filming within the five boroughs," read a statement Monday from the Mayor's Office of Film, Theatre and Broadcasting.

Production was affected on several TV shows, including "Gossip Girl," ''Person of Interest," ''Smash," ''666 Park Avenue" and "Elementary." ''The Daily Show" and "The Colbert Report" also took Monday night off, and all 40 Broadway theaters will be dark through Tuesday.

The storm halted production on a few films as well, including Akiva Goldsman's "Winter's Tale" and Darren Aronofsky's "Noah."

"I take it that the irony of a massive storm holding up the production of 'Noah' is not lost," tweeted actress Emma Watson.

The storm forced Focus Features to postpone the Manhattan premiere of "Anna Karenina," which was set for Tuesday.

Jimmy Kimmel canceled his late night ABC talk show Monday. He was scheduled to host his Hollywood-based "Jimmy Kimmel Live!" all week from Brooklyn, where he was born. ABC said the network was hopeful Kimmel's show would return Tuesday with guests Howard Stern, Tracy Morgan, and Sharon Jones and the Dap Kings. David Letterman and Jimmy Fallon taped their talk shows without audiences.

"Theater owners here in New York had to cancel all the Broadway shows today," Fallon said in his opening monologue Monday. "Many performers were having trouble making it in to the city, and you could tell by that one show, 'Blue Man Guy.'"

Some network schedules were shaken up by the widespread power outages cutting into the available TV audience in the East.

CBS aired repeats instead of new episodes Monday night of "How I Met Your Mother," ''Partners," ''2 Broke Girls" and "Mike & Molly." A CBS News special on Sandy pre-empted "Hawaii Five-O."

The CW opted to air repeats of "90210" and "Gossip Girl."

ABC stuck to its schedule of new episodes of "Dancing with the Stars" and "Castle." Fox broadcast a previously scheduled rerun of "The X Factor," which had been planned if the San Francisco-Detroit World Series ended, as it did, in four games.

NBC aired fresh installments of "The Voice" and "Revolution."

Several stations interrupted network broadcasts with live news coverage of the storm.

ABC's "Good Morning America," NBC's "Today" show and "CBS This Morning" were expected to air live as usual Tuesday with extensive storm coverage. The daytime talk show "Live! With Kelly and Michael" planned to air a rerun Tuesday.

Sandy took a toll on the movie box office even before it made landfall. Ticket sales were down more than 11 percent compared to the same weekend last year, said Paul Dergarabedian, box-office analyst for Hollywood.com. This weekend's top film, "Argo," collected $12.1 million. The top film during the same weekend in 2011, "Puss in Boots," earned $34 million.

Several movie theaters remained closed Money night.

Concerts planned for New York and New Jersey were canceled or postponed, including performances by Journey, comedian Louis C.K., and the "Freedom to Love Now" show featuring Rufus Wainwright and fun., which is now set for spring of 2013.

Radio City Music Hall was shuttered until Wednesday. Carnegie Hall postponed concerts planned for Tuesday. Off-Broadway shows and even national tours of Broadway shows like "Anything Goes," currently in Wilmington, Del., closed their doors.

It was the most detrimental storm for the theater community since the threat of Hurricane Irene in late August 2011 prompted producers to cancel matinee and evening performances on both a Saturday and Sunday.

East Coast charity galas were also canceled, and fashion designer Prabal Gurung postponed the unveiling of his anticipated collection for Target until next week.

___

AP Entertainment Writers Mark Kennedy and Jake Coyle in New York, and Sandy Cohen and Lynn Elber in Los Angeles contributed to this report.

___

Follow AP Entertainment Writer Derrik J. Lang on Twitter at http://www.twitter.com/derrikjlang.

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