National / International News

Big earthquake near Iceland volcano

BBC - Tue, 2014-08-26 02:19
Iceland's Bardarbunga volcano has been hit by the largest quake since tremors began last week but experts say there are no signs of an eruption.

VIDEO: How pedal power charges your phone

BBC - Tue, 2014-08-26 02:17
From backpacks which indicate which way you are turning to a USB charger that gets its power from pedalling

AUDIO: Pet Shop Boys cameo on The Archers

BBC - Tue, 2014-08-26 02:10
Pop duo the Pet Shop Boys have made a cameo appearance on Radio 4's The Archers.

VIDEO: Mexico tries to tame 'Beast' train

BBC - Tue, 2014-08-26 02:07
The Mexican government has unveiled new measures to prevent migrants from Central America travelling on the roofs of freight trains heading north towards the US.

A lack of hurricanes is not all good for insurers

Marketplace - American Public Media - Tue, 2014-08-26 02:01

On this morning nine years ago, Hurricane Katrina was creeping west across the Gulf, after smashing through Florida. Since then, North America has not seen a major hurricane. Which might lead you to think all’s well with the insurance industry.

That's not exactly the case.

Katrina was the costliest disaster ever for insurance companies. They paid out more than $40 billion. Since then, it’s been pretty calm as catastrophes go.

But here’s the paradox: When the sky is clear, insurance prices can fall.

“The insurance marketplace had gone through a pretty severe soft cycle, oh, really for the last 10 years,” says David Bradford of industry consultancy Advisen.  

In general, lots of surplus money and insurance coverage is now chasing customers. It’s a buyer’s market.

As for insurers, they’re struggling with modest prices, but have plenty of reserves stocked away.

“They have built up sufficient reserves and can swallow large losses at this fairly well,” says Greg Knapic at Wells Fargo Insurance. “You just don’t want to have too many of them.”

And we have moved into this year’s big storm season. Knapic says it would take a record $50 billion or $100 billion event to shake up a crowded market.

On this morning nine years ago, Hurricane Katrina was creeping west across the Gulf, after smashing through Florida. Since then, North America has not seen a major hurricane. Which might lead you to think all’s well with the insurance industry. Not exactly.

 

Katrina was the costliest disaster ever for insurance companies. They paid out more than $40 billion dollars. Since then, it’s been pretty calm as catastrophes go.

 

But here’s the paradox: when the sky is clear, insurance prices can fall.

 

“The insurance marketplace had gone through a pretty severe soft cycle, oh, really for the last ten years,” says David Bradford of industry consultancy Advisen.  
In general, lots of surplus money and insurance coverage is now chasing customers. It’s a buyer’s market.

 

As for insurers, they’re struggling with modest prices, but have plenty of reserves stocked away.

 

“They have built up sufficient reserves and can swallow large losses at this fairly well,” says Greg Knapic at Wells Fargo Insurance. “You just don’t want to have too many of them.”

 

And we have moved into this year’s big storm season. Knapic says it would take a record $50 or 100 billion dollar event to shake up a crowded market.

 

 

 

Bringing accountability to police through data

Marketplace - American Public Media - Tue, 2014-08-26 02:00

Following events in Ferguson, Missouri, there has been a lot of talk of putting policing on tape. There has also been talk of how big data can help reduce abuses of power and bring more truth and reconciliation to fraught police-citizen interactions. PC Magazine columnist Ibrahim Abdul-Matin says part of the issue is putting the power of data into the hands of the public.

One of the central problems, he says, is that no one seems to be looking at hard data on this issue.

“If there are bad apple cops, how come we don’t know the data about them until they've done something deadly?" Abdul-Matin asked. 

In terms of implementing this system, Abdul-Matin advises implementation with departments that are already using body cameras to record interactions with citizens, and collecting that data for internal use before bringing in crowd sourced information from the public at large.

While this itself won’t fix police-citizen interactions, it would bring a level of confidence in communities that accountability can actually happen, Abdul-Matin said. 

Volcanic rumblings stir economic concerns

Marketplace - American Public Media - Tue, 2014-08-26 02:00

One of Iceland’s many volcanoes has “stirred."

After more than a century of quiescence, Bardarbunga – in the interior of country – has shown some ominous signs of seismic unrest. Some 300 mini earthquakes have been recorded in the vicinity, and molten lava has reached the summit and is now melting the ice cap. The Icelandic authorities have evacuated the area and warned that if there is an eruption, it could be big enough to disrupt air travel over Europe.

The warning has raised some painful memories. The Eyjafjallajokull eruption in April 2010 caused the largest and longest closure of European airspace since World War II; grounding thousands of flights, stranding millions of passengers and costing the airlines more than $2 billion dollars.

But there are good reasons for believing that history isn’t about to repeat itself.

For one thing, there’s been a change in the civil aviation flight rules. In 2010, if there was any ash in the sky, you were forbidden to fly.

But today that’s considered far too restrictive. The rule has been relaxed because weather forecasters with advanced radar are now much better at tracking ash clouds and steering planes away from them. And it is understood that planes can fly safely through lower densities of ash.

“The restrictive flight rules have gone,” says Dave McGarvie, a volcanologist at the Open University in Edinburgh. “With the knowledge and experience we gained from 2010, we now have a much better idea of how to deal with airborne ash. If Bandarbunga does erupt, it will not cause anything like the scale of disruption as Eyjafjallajokull. Absolutely nothing like it.”

That does not mean volcanoes no longer pose a threat to aviation.

“Because a jet sucks in huge amounts of air, if that air contains a lot of ash it will – over a period – accumulate and damage the engine,” explains Colin Brown of the Institution of Mechanical Engineers in London. “If all the engines are affected in that way, the aircraft is going to come down."

Under the current rules, aircraft must not fly if there is more than 4 milligrams of ash in a cubic meter of air in its flight path; the equivalent of a teaspoonful of material in an Olympic size swimming pool. Not as trifling an amount of ash as it seems, says Colin Brown.

“Aircraft engines suck in an Olympic size swimming pool of air every second, so if you’re in that kind of ash cloud, you could end up with about a kilogram coming into the engine once every four minutes. Fly for four or eight minutes and you suddenly have one or two kilos of rock inside your engine. That’s not something any of us would want to contemplate," he says.

Nevertheless, to reassure nervous flyers, it’s worth pointing out that volcanic ash has never, in the entire history of aviation, actually caused a fatal aircraft crash.

 

CORRECTION: An earlier version of this story misspelled Bardarbunga. The text has been corrected.

U.S. corporations park billions overseas

Marketplace - American Public Media - Tue, 2014-08-26 02:00

In the spring of 2014, U.S. pharmaceutical giant Pfizer tried to buy British pharmaceutical giant AstraZeneca for $116 billion. In May, the bid was rejected. U.K. politicos objected on economic nationalism grounds, while some AstraZeneca investors considered the offer too low. Under U.K. takeover rules, Pfizer can make another run at AstraZeneca starting on August 26.

Even if Pfizer doesn’t succeed in acquiring AstraZeneca, Pfizer CEO Ian Read has said he is "aggressively" seeking other acquisitions — Ireland-based Actavis is said to be a possible target. If Pfizer were able to become a foreign-based company, and shift its domicile to the U.K. or Ireland, it would be able to bring home as much as $30 billion in international profits without being subject to the 35 percent U.S. corporate tax rate on that money, says Martin Sullivan, chief economist at TaxAnalysts.com. (Sullivan points out that Pfizer would likely pay a lower tax rate in actuality.)

“Part of the allure is to get into lower-tax countries,” says Sullivan. "Like the U.K., with 21 percent, and Ireland, with 12.5 percent.”

Major American companies — including GE, Johnson & Johnson, Merck, Pfizer, Google, Cisco, Microsoft and Apple — are estimated to have nearly $2 trillion parked outside the U.S.; profits from international operations and investments. They use the money to buy foreign companies and factories.

Or, it just sits in the bank, says Brad McMillan, chief investment officer at Commonwealth Financial.

“You can make an argument that shareholders would be better off if the money was brought home, taxes were paid, and it was distributed, or put to use in the business," says McMillan.

McMillan says companies could pay higher dividends to shareholders, or build new factories in the U.S. But he says that’s unlikely, until U.S. corporate tax rates come down. And he thinks that is a political long-shot, at least until the 2016 presidential election.

US alarm at air strikes on Libya

BBC - Tue, 2014-08-26 01:59
American officials say Egypt and the UAE were behind air strikes in Libya that targeted Islamist-linked militia last week and that the US was not consulted.

Jailed Dutchman in Peru hunger strike

BBC - Tue, 2014-08-26 01:59
Dutch national Joran van der Sloot, who is in jail for murder in Peru, goes on hunger strike after being transferred to a maximum security prison.

Stolen monkey gives birth to twins

BBC - Tue, 2014-08-26 01:58
A monkey recently returned to Blackpool Zoo after it was stolen during a break-in gives birth to twins.

South Africa economy avoids recession

BBC - Tue, 2014-08-26 01:57
South Africa avoids being tipped into recession after second-quarter GDP figures showed the economy grew by 0.6% during the April-to-June period.

Farage faces Thanet selection vote

BBC - Tue, 2014-08-26 01:53
UKIP members in South Thanet will decide later whether Nigel Farage will be their candidate in the general election.

VIDEO: Cinematic style for the TV Emmys

BBC - Tue, 2014-08-26 01:32
Some of Hollywood's biggest film stars have graced the red carpet at the US Primetime Emmys in Los Angeles.

Rail commuters faced severe delays

BBC - Tue, 2014-08-26 01:30
Rail commuters heading south on the East Coast Mainline experience severe delays due to overhead wire problems.

AUDIO: Wizz Jones: Unsung guitar hero

BBC - Tue, 2014-08-26 01:15
Evan Davis hears from influential guitarist Wizz Jones and fan Pete Paphides.

Savings up as new rules take effect

BBC - Tue, 2014-08-26 01:14
High Street banks have reported a rise in savings deposits in July following the launch of New Individual Savings Account rules.

Police stop-and-search code launched

BBC - Tue, 2014-08-26 01:11
Police forces in England and Wales agree to adopt a government code of conduct on the use of their powers to stop and search members of the public.

VIDEO: Clegg dons traditional dress in India

BBC - Tue, 2014-08-26 01:02
Nick Clegg wore traditional India clothing while on a visit to a Sikh temple and community kitchen in Delhi.

How too much corn spells trouble far beyond the fields

Marketplace - American Public Media - Tue, 2014-08-26 01:00

We are awash in corn.

Why?

Last year was a record corn production year and this year is shaping up to be just as good. Let's explain why this acreage of corn crops can be problematic. 

What do we do with all the corn we produce in general? And what about the surplus?

Most of it is being used as always: to make corn-based products, to make animal feed and to make ethanol. But the surplus that isn't being used for those things is being piled up in grain elevators, or stored in long tubes on the ground. Farmers and buyers are having problems finding enough trucks and freight cars to get the grain around the country. All this corn is literally clogging up the system, and prices are plummeting. Corn prices have fallen by more than 20 percent over the last year, to a four-year low.

Isn't it a good thing when cereal prices fall?

In some ways, this is great news. It will be cheaper to feed chickens, pigs and cows, and of course the price of any corn-based products will fall all as well. We'll be able to stockpile corn for the future, in case 2015 is a bad production year. We may even be able to help other, needier, countries with our surplus.

I can feel a "but" coming...

Yep: cheap corn is good news for buyers, but bad news for sellers. Farmers who hadn't pre-sold their grain are now finding they can't get much money for their product. And many were already suffering because corn prices were already depressed by last year's bumper crop.

Add in the fact that land is getting more expensive, China is buying less, there are fewer animals in the U.S. to feed, there's a cap on ethanol production, and the cost of seed and fertilizer are holding steady, and you can see that farmers are being squeezed.

It's not just farmers, right?

Right. There are all sorts of businesses associated with farmers that are affected. Heavy equipment manufacturers are in a particular pickle. Between 2010 and 2013, grain was scarce, so farmers were able to charge a lot for their crop. They made a lot of money and spent a lot of it on farming equipment. Which means that a) they've got pretty new gear and don't need to buy replacement stuff and b) with times tight, they're not going to want to splash out on a new tractor or whatever.

What are the equipment manufacturers doing?

They're cutting back operations and laying people off. John Deere reckons it will have to let as many as 1,000 workers go. It is seeing weakness in Europe and South America, as well as in the U.S.

How bad is this going to be for the economy?

For the economy overall, not too bad.

Farmers have had a good few years, so the pressure on them this year won't kill them. Some farms may go out of business, but not many. Equipment manufacturers are used to the cyclical nature of the farming business, so they won't go under either.

But people are going to lose their jobs, and whether they work on farms or in equipment firms, those jobs tend to be in places where other work is scarce. So, a lot of individuals will likely be suffering this coming winter.

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