National / International News

First Syria refugees in Uruguay

BBC - Thu, 2014-10-09 10:40
Uruguay receives the fist Syrian refugees and promises to cover the cost of a two-year resettlement programme.

Riba Stirling Prize 2014: London Bridge Tower (The Shard)

BBC - Thu, 2014-10-09 10:27
Is The Shard the best building in the UK?

The boom-and-bust story of a crop called guar

Marketplace - American Public Media - Thu, 2014-10-09 10:14

A little-known plant that has been an ingredient in foods for decades has taken on outsize importance in the fracking world over the past few years - and it has created huge swings in its commodity price and in the fortunes of farmers. 

Ever since the 1950s, the guar plant has been the source of the guar gum additive the food industry uses to thicken foods or keep various ingredients smoothly mixed together. It’s in everything from frozen pizza to ice cream, egg white substitutes and baked goods.

“Guar is what we call an emulsifier,” says Calvin Trostle, a professor of agriculture at Texas A&M and a guar expert.  “Guar is somewhat like a soybean plant. It has pods up and down the main stem."

Guar gum is not only a common food additive, but also an important ingredient in the fracking process (the hydraulic fracturing of underground rock to release oil and gas deposits). 

Crop specialist Calvin Trostle, Texas A&M University, adjust branches on a guar plant that contain maturing seed pods.

Courtesy of Calvin Trostle

In the last 40 years, multiple companies including Halliburton, Baker Hughes, FTS International and others have tried to create a synthetic substitute for guar gum, but they’ve failed to develop anything as effective for hydraulic fracturing, according to Trostle. 

With guar gum as its only option, the  industry has demanded more and more of the stuff. 

“The demand for guar exploded, literally mulitiplied by five, ten times, caught the suppliers’ side by surprise, and basically created a drastic shortage,” says Dennis Seisun, a guar market analyst and the publisher of The Quarterly Review of Food Hydrocolloids. (Hydrocolloids are substances that form a gel when mixed with water.)

As fracking and the demand for guar boomed, so did the price of the commodity, 98 percent of which comes from India and Pakistan. A couple of years ago, the price peaked at about 35 times what the cost of the plant product was just a few years earlier. 

Seisun, who regularly visits India and the region where guar is produced, says that’s been an economic boon for farmers there. There is now a futures market set up for guar, and farmers are able to hold back part of their crop yield to wait for a better price. 

Some farmers in the U.S. wanted to get into the guar business, too. 

“Last year, it was kind of like a revolution,” says Curtis Erickson, a north Texas farmer who was one of many spurred to plant guar because of its exploding price. “We knew we could plant it and farm it and make money at the end of the day. And we were very excited.”

Texas farmers grew about $20 million worth of the plant, based on what a Texas-based raw guar processor had contracted to pay them. The processor was the only one in the U.S. that could handle raw guar. 

But as demand soared, India and Pakistan guar suppliers managed to catch up with increased supply. And oil companies, which were paying high prices, stopped hoarding guar. 

The price plummeted. 

The Texas-based guar processor, which had promised the farmers a set price for their guar, could not pay. And the farmers are now stuck with a crop they can’t reclaim, and which they couldn’t sell anywhere else in the U.S. even if it was returned to them. 

“There’s a lot of farmers that I’m aware of that borrowed money last year to farm the guar on,” Erickson says “And since they didn’t get paid back, they in turn couldn’t pay their banks back.”

“And then the bank will come looking to collect somehow,” Erickson says. 

The farmers have taken their case to court, and the Texas guar plant is now bankrupt. 

While the price of guar has declined, it’s still about three times higher than it used to be. But since the U.S. historically has had little to no supply chain for processing raw guar, Seisun says India and Pakistan will remain the major suppliers. 

“Competing with costs of production in low-cost areas like India and Pakistan have always presented a problem. And I don’t see that source of supply is going to be very different in the near future,” Seisun says. 

Meanwhile a few Texas farmers, including Erickson, have planted a small quantity of guar again this year. Erickson says he wants to be ready, in case the guar market in the U.S. bounces back. 

Customers Can Keep The Tip — Which Might Please Restaurant Workers

NPR News - Thu, 2014-10-09 09:58

A handful of restaurants are experimenting with no-tipping models, guaranteeing their servers a base level of pay. So far, satisfaction is up and turnover is down.

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Nigerian leader warns over rich list

BBC - Thu, 2014-10-09 09:42
Nigerian President Goodluck Jonathan threatens to sue a website that listed him as one of Africa's 10 richest leaders, with a net worth of about $100m.

Ebola screening: Will it work?

BBC - Thu, 2014-10-09 09:34
Will it make a difference in the UK?

VIDEO: Ex-RAF officer guilty of sex abuse

BBC - Thu, 2014-10-09 09:04
A former RAF intelligence officer has been convicted of a series of sexual assaults on children, dating back more than three decades.

Fresh clashes break out in CAR

BBC - Thu, 2014-10-09 08:38
Heavy gunfire and explosions are heard in the capital of the Central African Republic, amid growing tension between rival militias.

'Legal high' dealer gets 10 years

BBC - Thu, 2014-10-09 08:16
A man who sold drugs running a "legal high" website which earned him £2.5m is jailed for 10 years.

MH17 passenger 'had oxygen mask on'

BBC - Thu, 2014-10-09 08:15
The Dutch foreign minister says a victim of the east Ukraine air disaster was found wearing an oxygen mask, suggesting not everyone died instantly.

French author wins Nobel prize

BBC - Thu, 2014-10-09 08:11
French author Patrick Modiano, whose work has often focused on the Nazi occupation of France, wins the 2014 Nobel Prize for literature.

Three unions suspend strike action

BBC - Thu, 2014-10-09 07:50
Three unions representing local government workers and school support staff suspend a planned strike in England, Wales and Northern Ireland.

The numbers for October 9, 2014

Marketplace - American Public Media - Thu, 2014-10-09 07:47

The same hackers who stole contact information from 83 million JPMorgan Chase account holders last month also targeted a dozen more financial institutions. The Obama administration has been getting briefings on the breach since this summer, the New York Times reported, and national security officials and banks have been conferring over several IP addresses attributed to the attackers.

ETrade, Fidelity, ADP, Bank of the West, HSBC, Citigroup and Regions Financial are some of the institutions targeted by the addresses. The government is reportedly troubled by the lack of an apparent motivation for the hacks.

As we look out for more breaches, here's what we're reading — and numbers we're watching — Thursday.

4206

The number of words in activist investor Carl Icahn's open letter to Apple CEO Tim Cook. In short: Icahn praises Cook and several new products but (still) believes the company is undervalued and wants it to buy back more stock. Apple stock should be trading at $203, Icahn wrote, double its current value. So far, the letter has helped: at about noon eastern time shares were up 1 percent.

$16,353

The average pay gap between Hispanic and non-Hispanic employees in the high-tech sector, USA Today reported. Similarly, blacks and Asians in the industry earn $3,656 and $8,146 less than whites, respectively. 

1 million

How many signatures Greenpeace nabbed in a petition for Lego to end its long-standing promotional agreement with oil company Royal Dutch Shell. Lego bowed to pressure from Greenpeace — which also made a viral video showing a cute Lego arctic community ravaged by oil — and agreed not to renew the partnership, the Wall Street Journal reported.

Yemen suicide bombings kill dozens

BBC - Thu, 2014-10-09 07:39
At least 67 people have been killed in two suicide bomb attacks on a protest in Yemen's capital Sanaa and on an army checkpoint in the country's east.

VIDEO: Australian woman emerges from bush

BBC - Thu, 2014-10-09 07:15
A missing Australian woman has survived 17 days lost in the northern Queensland bush, local reports say. Here's a quick look at the story.

Vigil held after US Ebola death

BBC - Thu, 2014-10-09 06:48
A prayer vigil has been held for the family of Thomas Eric Duncan, the first person diagnosed with Ebola in the US who died on Wednesday.

Turkey action in Syria 'unrealistic'

BBC - Thu, 2014-10-09 06:05
Expectations that Turkey will lead a ground operation against Islamic State in Syria on its own are "not realistic", its foreign minister says.

VIDEO: Can this suit stop Ebola spreading?

BBC - Thu, 2014-10-09 05:55
Danny Savage goes to a supplies distribution centre in Hull to find out exactly how robust protective suits are in the fight against Ebola.

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