National / International News

Growth In Manufacturing Tempered By Low-Wage Jobs

NPR News - Wed, 2015-01-07 12:22

President Obama is touting growth in manufacturing jobs, but if they're low-wage jobs is that a good thing?

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NYPD Commissioner Is A Man Caught In The Middle

NPR News - Wed, 2015-01-07 12:22

The ongoing work slowdown by the NYPD puts police commissioner William Bratton in a tough spot. Bratton was hired to improve relations between the NYPD and the community, as he's credited with doing in Los Angeles. But first, he will have to ease tensions between city hall and the department's rank-and-file.

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FBI Offers New Evidence Connecting North Korea To Sony Hack

NPR News - Wed, 2015-01-07 12:22

FBI Director James Comey offered new evidence that North Korea was responsible for the cyber attack against Sony. Some technology experts had been skeptical of the proof the FBI had offered before.

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Unemployment, Deflation Felt Acutely In Spain

NPR News - Wed, 2015-01-07 12:22

Spain's jobless rate still tops 23 percent and salaries are stagnant or declining. The Spanish economy is technically out of recession but many Spaniards still aren't celebrating.

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Euro Falls To 9-Year Low Against U.S. Dollar

NPR News - Wed, 2015-01-07 12:22

Europe may have a deflation problem. Eurozone consumer prices fell on an annual basis in December for the first time since the depths of the financial crisis five years ago. The decline was driven by a sharp drop in energy prices. The news is expected to increase pressure on the European Central Bank to come up with a more aggressive response to slow growth and high unemployment.

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In Midwest, Bitterly Cold Temps Keep Students At Home

NPR News - Wed, 2015-01-07 12:22

In Chicago, a city that relishes their ability to deal with the harsh realities of winter the cold weather forced the closing of its schools on Wednesday. While classes were cancelled in over 100 districts, buildings were open to accept students who had nowhere to go and could not stay home alone.

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French Government Organizes Massive Manhunt To Find Gunmen

NPR News - Wed, 2015-01-07 12:22

At least 12 people were killed after gunmen attacked the offices of a satirical magazine in Paris on Wednesday.

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A Cow Head Will Not Erupt From Your Body If You Get A Smallpox Vaccine

NPR News - Wed, 2015-01-07 12:22

The eradication of smallpox was arguably one of the greatest achievements of modern medicine. But people had crazy ideas about the vaccine when it was created in 1798. A new exhibit tells the story.

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Alan Dershowitz: A high-flying lawyer's unwanted publicity

BBC - Wed, 2015-01-07 12:02
The fiery US lawyer in an unwanted spotlight

Legal pot sales could top $10 billion by 2018

Marketplace - American Public Media - Wed, 2015-01-07 12:02

Roughly half of U.S. states now permit medical marijuana use with a prescription. In Colorado, Washington, Oregon and Alaska, buying marijuana for recreational use has been legalized as well. By 2017, legalization advocates predict another dozen states could follow suit – including the biggest prize for marijuana businesses – California.

Revenues from marijuana production and sales in the U.S. states where it is legal could top $10 billion dollars by 2018 (up from $2.6 billion in 2014), according to research by the ArcView Group, which promotes investment in the emerging cannabis industry.

The business holds high potential for reward – and risk – for anyone thinking of taking the plunge. This was evident at a pair of major cannabis conventions last November in Las Vegas – an investor "pitch-a-thon" put on by ArcView and the Marijuana Business Conference and Expo, hosted by the publication Marijuana Business Daily.

Among the several thousand who attended: Filmmaker and talk-show host Ricki Lake, working on a documentary called “Weed the People,” about the potential benefits of cannabis as a cancer treatment; and bootstrapping entrepreneurs such as Jill St. Thomas of Colorado, purveying her “Mad Hatter” line of cannabis-infused coffees, teas and "mocktails," and Gracen Hook of Washington, trolling for investors for what he called the first pot-themed resort with a “five-star restaurant, a spa conducive to cannabis tourism and a 40-room hotel.”

Tripp Keber, CEO of Denver-based Dixie Elixirs & Edibles, one of the fastest-growing cannabis companies nationwide, was offering pot-infused soft-drinks, candy and fudge. “If you look at Colorado alone, this year it’s forecast to exceed $700 million – that’s massive expansion,” Keber says.

The federal government remains an obstacle to people trying to build regional or national marijuana businesses. 

Marijuana is still classified as a Schedule 1 drug by the federal Controlled Substances Act, which puts cannabis in the same class of illegal drugs as heroin. And federal tax and banking rules make routine business activities – like paying the rent or sending product-samples through the mail – a nightmare of financial risk.

Bruce Granger helped found a state-of-the-art marijuana production and retail company in Denver called Kind Love. The company’s new facility in a Denver warehouse district is brimming with the latest agricultural technology and climate control systems, not to mention plenty of security.

And Kind Love has plenty of customers. But, says Granger: “Banks are nervous to take our money.” Federal money-laundering rules don’t allow banks that are FDIC-insured to handle proceeds from illegal drug-sales, he explains. “Think about running a business and not being able to use a bank account," he says. "How do you do accounting? Most people don’t have a bank statement. So it’s all cash.”

Brooke Gehring runs Live Green Cannabis, a chain of medical and recreational pot-stores in Colorado that do tens of thousands of dollars in sales every day. Managers carry that cash around – in their cars and briefcases – to deliver the payroll. “They have one of our armed security officers with them, to collect and sign off for payment in cash," Gehring says. Previously, she was a bank compliance officer, so she is aware of how closely banks are scrutinized. “As much as banks like fees, they’re not going to risk their insurance or their reputations to bank this industry that still remains federally illegal," she says.

States predicted as likely to legalize recreational marijuana use for adults 21 or older, or medical marijuana. As predicted, voters in Oregon, Alaska and the District of Columbia approved recreational-marijuana legalization in November 2014. Voters in Colorado and Washington State voted to legalize recreational marijuana production, distribution and retail sale in 2012.

The ArcView Group, ArcView Market Research

To complicate the business further, the IRS tax code doesn’t allow businesses selling federally illegal drugs (including those legal under state law) to deduct most business expenses from their tax bill. So they’re taxed not just on profits, but on all revenue.

Oregon Democratic Congressman Earl Blumenauer has introduced legislation to do away with what he calls these “punishing” federal rules for state-legal cannabis businesses.

“If you care about money laundering or tax evasion or just theft, forcing legitimate businesses to pay their taxes with shopping bags full of $20 bills is insane,” Blumenauer said in an interview at the ArcView investor conference. “Let these legitimate businesses have fair taxes and banking services. They’ll be better off, but so will society.”

Blumenauer predicts that the reform bills he supports – HR 2240, the Small Business Tax Equity Act, and HR 2652, the Marijuana Businesses Access to Banking Act – will receive bipartisan support, even in this deeply divided Congress.

Many lawmakers on both sides of the aisle in Washington oppose marijuana legalization. But key conservatives, such as California Republican Congressman Dana Rohrabacher and anti-tax activist Grover Norquist of Americans for Tax Reform, are working in with Blumenauer and fellow liberals on this issue.

These lawmakers and advocates say they want to give the emerging cannabis industry room to grow and experiment – on the right side of the law.

VIDEO: Australian town built underground

BBC - Wed, 2015-01-07 11:58
Jon Donnison visited Coober Pedy, a place so hot many of the residents have built their homes underground.

Ex-police chief in US murder trial

BBC - Wed, 2015-01-07 11:57
South Carolina prosecutors say the 2011 killing of an unarmed black man by a former police chief was a "senseless act of violence".

Life Flows Back Into The Waters Of Baghdad's Tigris

NPR News - Wed, 2015-01-07 11:53

Some of the world's loveliest cities hug great rivers: think Cairo and the Nile. Baghdad's lifeblood is the Tigris. After years of war, commuter boats and even a rowing club ply its waters once again.

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VIDEO: Boy survives skull part in belly op

BBC - Wed, 2015-01-07 11:50
Jahfari Martin, nine, is recovering well four months after doctors removed part of his skull and kept it in his "sterile" stomach for weeks.

Apps help employees care for aging parents

Marketplace - American Public Media - Wed, 2015-01-07 11:39

Owen Tripp designed a healthcare app for companies to offer workers. It links people digitally to top medical specialists, for, say, second opinions. Some firms bought it, and some surprised Tripp.

"Those employers really wanted to make sure that they could offer it not only for their employees' needs, but for the family around the employee," he says, specifically parents.

More employees are asking for benefits that help them care for aging parents. Will companies respond in general? Those chasing top talent might, they're in a compensation arms race. But many are still assessing if eldercare benefits pay off.



Goldman Sachs argues for a big bank breakup

Marketplace - American Public Media - Wed, 2015-01-07 11:37

For years, we’ve been talking about whether some of the country’s largest banks are “Too Big to Fail” and what to do about them. Should the government somehow force them to be smaller? And would the public be better off? The question of banks and size came up again this week when a Goldman Sachs report argued that JPMorgan Chase should split itself in smaller pieces – not for the benefit of the public, but for the company’s shareholders, because the bank is now subject to increased capital requirements after the financial crisis.

Former Korean Air Executive Faces Prison Over 'Nut Rage'

NPR News - Wed, 2015-01-07 11:16

A week after she was arrested over a tantrum on a tarmac in New York, Cho Hyun-ah faces charges of interfering with the inquiry into what officials say was a breach of aviation laws.

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For Europe, cheap oil is all boon and little bust

Marketplace - American Public Media - Wed, 2015-01-07 11:07

The long-feared threat of European deflation finally materialized at the end of 2014, according to data released today. Consumer prices in the Eurozone fell for the first time since the 2009 global financial crisis. But it’s not entirely bad news: Prices are falling in large part because oil is so cheap, which acts as a windfall for consumers and a stimulus for Europe’s economy.

"It is a massive stimulus for Europe, and it also hits the right people, it is going to everybody, there are lots of knock-on effects for industries," says Ken Rogoff, a Harvard University economist.

Since Europe imports most of its energy, cheap oil is all boon and little bust. Rogoff says the problem is that the European Central Bank has been trying to create a healthy level of inflation for years. “What makes it a little bit difficult for them is they’ve been struggling to get inflation up to 1 percent and ideally 2 percent,” he says.

Not all countries in the Eurozone are seeing outright deflation. Germany, for instance, is still OK. But the central bank will be under pressure to act. “The worry is, is that you could  end up, in some countries, getting into a deflationary spiral,” says Howard Archer, chief European economist for IHS analysts. “There would be a risk of that happening, in Italy, for example, and perhaps Greece as well.”

The next trick the central bank  has to pull off, according to Archer: Decide which countries should receive stimulus and how much.

For small businesses, nothing but blue skies

Marketplace - American Public Media - Wed, 2015-01-07 11:03

Optimism among small businesses is at a seven-year high, according to a recent study by the National Federation of Independent Businesses. Olalah Njenga, a small-business owner and CEO of YellowWood Group in Raleigh, North Carolina, expects 2015 to be a great year.

"I believe that small business, in general, the optimism is really kind of through the roof going into 2015," Njenga says. "My colleagues are feeling it, my clients are feeling it."

Although she's optimistic, Njenga worries about things that could impact her clients' industries.

"Not getting some firm decision from the FCC on crowd funding, that’s something that is definitely keeping me up at night and tax reform is always going to keep me up," says Njenga. "But things like net neutrality and cyber security are definitely at the top of my radar because I am a previous tech employee, and I have some clients in the tech space."

Intel commits $300 million to diversify tech ranks

Marketplace - American Public Media - Wed, 2015-01-07 11:00

Intel CEO Brian Krzanich has pledged to spend $300 million to increase diversity within Intel and at other high-tech companies. Krzanich made the announcement Tuesday at the Consumer Electronics Show in Las Vegas. 

Women, African-Americans and Latinos have long been underrepresented in the technology industry, a challenge some attribute, in part, to fewer women and minorities earning degrees in engineering and computer science. Intel says it will reach out to historically black colleges and other minority-centered institutions, expand engineering scholarships and bolster mentoring programs.

The company has firm plans to hire more women and minorities in the next five years: Krzanich is tying executive compensation to the success of Intel's diversity initiative.

How diverse are tech companies right now?