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Overheating risk
Apple to recall 1.8 million notebook batteries

Apple Computer Inc. will recall 1.8 million lithium-ion notebook computer batteries after nine devices overheated, causing minor burns to two users, U.S. safety regulators said on Thursday.

The recall is the second-biggest in U.S. history involving electronics or computers. Just last week, No. 1 PC maker Dell Inc. recalled 4.1 million lithium-ion batteries.

In both cases, the batteries had power cells made by Sony Corp. Apple, like Dell, said it did not expect any "material" financial impact on its business.

Sony said in a separate statement that it did not anticipate further recalls of batteries using the potentially faulty cells. The Japanese electronics company said the Apple and Dell recalls would cost Sony between 20 billion yen and 30 billion yen -- or $172 million to $258 million.

Cupertino, California-based Apple will recall 1.1 million batteries sold with notebook computers in the United States and 700,000 abroad, the U.S. Consumer Product Safety Commission said.

"Our No. 1 priority is to recall and replace the affected batteries free of charge," Apple spokesman Steve Dowling said. The reported overheating incidents were due to "contamination" in the Sony battery cells, he added.

The batteries were sold with Apple iBook G4 and PowerBook G4 computers from October 2003 through this month, according to the safety commission. None of Apple's most recent notebooks using microprocessors from Intel Corp. <INTC.O> are affected, Dowling said.

Apple had said last week after the Dell recall that it was reviewing its notebook batteries to ensure they met its standards.

"The key message to consumers is these lithium-ion batteries can actually overheat and pose a fire hazard," said Scott Wolfson, spokesman for the Consumer Product Safety Commission in Washington.

Shares of Apple were down 45 cents at $67.76 in afternoon trading on Nasdaq following the recall announcement. Earlier, they had dipped as low as $66.27.

"Sony clearly has a problem here," said Tim Bajarin, principal analyst at Creative Strategies in San Jose, California. "There's a problem with the batteries overheating."

Bajarin noted, however, that in Apple's case there were no reported notebook fires, while several of the recalled Dell computers had erupted in flames. Dell said it had reports of six batteries overheating, but no injuries were reported.

The recall follows a smaller Apple recall of lithium-ion batteries in certain iBook G4 and PowerBook G4 notebooks sold worldwide from October 2004, through May 2005. Those batteries were made by LG Chem Ltd. of South Korea, according to Apple's Web site.

Dell of Round Rock, Texas, last week began a voluntary recall of 2.7 million batteries sold in the United States and 1.4 million sold overseas. The Dell-branded batteries were in computers sold from April, 2004, through July 18 of this year.

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Oaxaca city
Mexico tourist city in grip of political unrest

One of Mexico's prettiest cities has been tainted by blood and scarred with graffiti in a political conflict raising tensions in a country already on tenterhooks over a contested presidential vote.

Months of protests aimed at toppling Oaxaca state Gov. Ulises Ruiz spun out of control when gunmen believed to be off-duty police opened fire on protesters twice earlier this week, killing one person. Five people have been killed this month in the conflict.

Youths wielding sticks have barricaded roads and burned buses, scaring residents and the few tourists still left.
A favorite backpacker destination, state capital Oaxaca city was quiet but a mess on Thursday, its elegant old buildings spray-painted with protest slogans and the air foul from piles of garbage burned by protesters at road junctions.

Home to Spanish colonial buildings and colorful Indian markets that draw millions of tourists a year, the city streets now empty at nightfall, except for protesters carrying tires to burn.

Government offices, banks and tour agencies in the main Zocalo square have been closed all week, and shops and cafes are empty.

Protesters, many of them from poor areas outside the city, smashed up a hotel named after Spanish conquistadors and painted it with slogans like: "Tourist go home."

" It's horrifying. It's terrible. We're in their hands. I'm scared standing here talking to you," said Ana, 49, a property executive of Spanish descent who would not give her full name.

She said she had been jeered for being light-skinned and well-dressed, reflecting a split along class and race lines throughout Mexico.

The protesters took over several radio stations and continued to control them on Thursday.

Despite healthy economic growth this year, Mexico is blighted by a yawning gap between rich and poor. Tensions between these groups have been aggravated by a bitter battle over who will be the next president.

PRESIDENTIAL BATTLE
Leftist Andres Manuel Lopez Obrador has launched street protests and sit-ins in Mexico City to push his demand that conservative rival Felipe Calderon's narrow victory in the July 2 vote be ruled fraudulent. A court will decide in the next two weeks which of the two is president-elect.

The upheaval in Oaxaca began three months ago with a strike of around 40,000 teachers over pay but has since escalated with students, Indian groups and left-wing radicals joining the protests.

An attempt by police firing tear gas to dislodge striking teachers from the Zocalo square in June failed and just hardened opinions against the governor, from the Institutional Revolutionary Party.

Human rights groups, land activists and journalists say Ruiz, whose party ruled Mexico for 71 years until 2000 often with a heavy hand, has ridden roughshod over opponents and the media.

" We want him out for being incompetent, corrupt and an oppressor," said activist Feliciano Caballero, 30. "We don't support any political party. We want a government of the people."

A new militant group, the Oaxacan People's Popular Assembly, or APPO, has emerged to lead the protests. "They are provoking us so that the federal government sends in the army and everything ends in a blood bath," said APPO spokesman Antonio Gomez.

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