Sunday, February 24, 2013

Horse meat in US? Unlikely, but tests are rare

Leonhard Foeger / Reuters

An employee of the microbiological laboratory of the Austrian Agency for Health and Food Safety prepares a sample of minced meat in Vienna this week. The samples of minced meat are tested for the presence of horse meat as a precaution. United States officials say it's highly unlikely the scandal will reach U.S. consumers.

By JoNel Aleccia, Staff Writer, NBC News

Europe?s scandal over horse meat hidden in beef products -- including recalls of Nestle ravioli and Birds Eye chili con carne -- has renewed questions about whether Americans unwittingly could be eating equine products as well.

U.S. Department of Agriculture regulators say it?s highly unlikely that beef adulterated with horse meat could make it to the nation?s dinner plates because no domestic suppliers currently slaughter horses and the agency has strict labeling and inspection standards for imported meat.

But agency officials also acknowledge privately that species testing for meat imported into the U.S. is performed typically only when there?s a reason to question a shipment.

And a Florida company that supplies the only validated tests for horse meat in food has been slammed with nearly 1,000 requests in recent weeks for its $500 kits -- including orders from major U.S. meat producers.

?It?s becoming a little hectic,? said Natalie Rosskopf, administrative director of Elisa Technologies Inc. of Gainesville. ?There was no call for horse testing a month ago. Nothing.?

Continental Europe has been roiled recently by reports of horse meat masquerading as beef in frozen burgers and prepared foods, including frozen dinners and pastas. This week, Nestle announced it was removing chilled pasta products produced by a German supplier, including Buitoni Beef Ravioli and Beef Tortellini, from stores in Italy and Spain, and a lasagna product from France. On Friday, frozen food maker Birds Eye said it would withdraw products including chili con carne from Britain and Ireland because tests detected traces of horse DNA.

The trouble with horse meat hidden in beef is partly a health concern. Meats taken from store shelves in Britain and Germany had traces of a powerful equine painkiller, phenylbutazone, or ?bute,? which is banned in animals destined for human food, tests showed.

But it?s also about trust, especially in the U.S., where many shudder at the mere thought of eating horse meat and the deception would raise even more suspicion about a company?s practices.

?If a company is willing to commit fraud, I can?t imagine that food safety is the biggest thing on their agenda,? said Bill Marler, a Seattle lawyer and food safety expert who publishes a blog focused on the industry.

In fact, boneless beef adulterated with horse meat -- and with kangaroo -- did make it to the U.S. more than 30 years ago, when mislabeled meat from Australia led to the impounding and testing of 66 million pounds of the product, according to old USDA records found and posted by Marler.

Known as the ?Australian meat incident,? the beef substitution scandal prompted swift action and increased scrutiny by agency officials.

USDA officials couldn?t quickly produce records of species testing results in the past 30 years -- or even the past year -- but they say the possibility of that happening again is remote. The U.S. neither slaughters horses nor imports horse meat from other countries, and it doesn?t allow import of beef from the countries and companies involved in the European scandal, an official told NBC News. (He was speaking on background because he said he wasn?t authorized to discuss the issue.)

In addition, USDA inspectors look at every shipment of meat sent through U.S. ports and can demand species testing if anything is amiss, documents show.

Officials with the Food and Drug Administration, which oversees processed foods, said that they had detected no horse meat in imported or U.S.-made food.?

?We have no past record or current indication that horse meat is an ingredient in any FDA-regulated processed foods in the U.S.,? Jalil Isa, an FDA spokesman, said in an email. He added that FDA officials are reaching out to Nestle and Birds Eye to ensure that no adulterated food was sent to the U.S. Nestle has said no U.S. products use meat from European sources.

Birds Eye Iglo U.K. products have no connection to the Birds Eye brand in the U.S., which is owned by Pinnacle Foods, and isn?t affiliated with the U.K. supplier.

Producers such as the meat giant Cargill say they don?t import beef from plants that also slaughter horses, or from the companies and suppliers implicated in the European scandal, and they remain confident that their meat is free of adulteration.

?Cargill?s beef supply chain is shorter than those involved in the horse meat issue in Europe and we know, and work directly with, our suppliers, which minimizes the potential for fraudulent substitution of products,? Cargill spokesman Mike Martin told NBC News in an email.

Still, the problems in Europe could prompt renewed scrutiny, he added.

?We do not analyze for other species and are assessing the current situation to determine if this is something we might do in the future,? Martin said.

If they do, they?ll have to turn to Elisa Technologies for the horse species test, said Rosskopf. The company?s meat species kits, which verify animal proteins in raw and cooked meat samples, have been used for years by the USDA and by private firms, she said.

Before the discovery in Europe of horse meat in beef, the firm?s typical demand was for tests for more common species, for instance, to confirm that no pork was present in kosher meat, Rosskopf said. Now, meat suppliers mostly in Europe, but also in the U.S., have been clamoring for the equine test.

Have there been any positive tests so far?

?I can?t say,? said Rosskopf, noting that the company is known for its adherence to confidentiality agreements.

Of course, putting horse meat on the dinner table is common in many countries, including France, Canada, Mexico and Japan, to name a few. And it?s not unheard of on American menus, either. Slaughterhouses that produced horse meat for human consumption were in operation in the U.S. until 2007, when the last three of a one-time high of 16 or 17 plants closed under state and federal pressure.

Congress effectively banned the practice then by refusing to fund USDA inspections of the slaughterhouses. Those efforts were fueled by vocal anti-slaughter activists who regarded the practice as inhumane.

The arrangement stayed in place until 2011, when the Obama administration quietly lifted the restriction, partly out of concern for the neglect of horses in the U.S. and the treatment of horses that were shipped to Canada and Mexico to be killed.

The U.S. exported more than 46,000 metric tons of horse meat in 1990, a figure that fell to about 5,600 metric tons in 2007, when the ban was enacted, industry figures show.

Wyoming state Rep. Sue Wallis is trying to reinstate horse slaughter in the U.S. and to build a new source for the meat in America and abroad.

Her application is among those pending with the USDA to open horse slaughterhouses in Missouri, Iowa and New Mexico. The firms would produce what she and other advocates call ?cheval,? horse meat that she said is prized by gourmet cooks and health enthusiasts for its taste and lean profile. Plus, Wallis said, horse meat is generally about 40 percent cheaper than beef.

?There are plenty of people in America who have no problem with cheval and are anxiously awaiting our product,? she said.

Related stories:

Source: http://vitals.nbcnews.com/_news/2013/02/22/17059607-horse-meat-unlikely-on-us-dinner-plates-but-testing-is-rare?lite

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Saturday, February 23, 2013

Buffett Risks Turning Heinz Debt Rating Into Junk Food

Billionaire Warren Buffett?s love of ketchup and hash browns is transforming H.J. Heinz Co. into the most-leveraged food maker in America.

Buffett?s Berkshire Hathaway Inc. and 3G Capital Inc.?s $23 billion acquisition of Heinz may double the company?s total debt to five times earnings before interest, taxes, depreciation and amortization, according to Fitch Ratings, the highest of any comparable food company. The cost to protect Heinz?s debt from losses soared to a record after the announcement.

While Buffett has used takeovers to build Berkshire into a $249 billion company and burnish his reputation as the world?s most successful investor, financing the deal with $14.1 billion in debt threatens to strip Heinz of the investment-grade rating that it?s had for four decades. Fitch cut Heinz to junk on Feb. 15 and credit-default swaps imply a Ba1 rating, according to Moody?s Corp.?s capital markets research group. That?s two steps lower than its Baa2 rating from Moody?s Investors Service and three below its BBB+ grade from Standard & Poor?s.

The trading ?underscores the hazards of high-grade bonds in an active M&A environment,? said Martin Fridson, chief executive officer of research firm FridsonVision LLC. Investors should be aware of the ?inherent danger now that leveraged buyouts as well as strategic acquisitions are once again prominent in the financial landscape,? he said.

No Boost

Michael Mullen, a spokesman for Pittsburgh-based Heinz, didn?t return a telephone message seeking comment.

Instead of boosting its credit profile to match Omaha, Nebraska-based Berkshire?s AA+ and Aa2 ratings, Heinz was cut to junk in two days in the eyes of credit investors, Moody?s data show. The swap prices, which climb as investor perceptions of creditworthiness deteriorate, rose to levels implying a Baa3 rating on Feb. 14, from Aa3 the day before. They fell again to Ba1 the next day.

Heinz?s leverage may increase to five times or more after the takeover is completed from 2.5 times on Oct. 28, according to a Feb. 15 Fitch report in which the rating firm cut Heinz?s credit grade to BB+. That would make the ketchup-maker the most highly-leveraged U.S. food manufacturer with a market value greater than $5 billion, data compiled by Bloomberg show.

Financing Package

Heinz, which said in a Nov. 20 regulatory filing that it had about $5.04 billion of total debt at the end of October, obtained $14.1 billion in financing from JPMorgan Chase & Co. and Wells Fargo & Co. to support the deal, according to a Feb. 15 filing.

Berkshire and billionaire Jorge Paulo Lemann?s 3G will each pay about $4.1 billion for an equity stake. Berkshire is also contributing $8 billion for preferred shares which gets an annual dividend of 9 percent, Buffett?s firm said in a filing.

The credit-default swap contracts tied to the company?s debt fluctuated by 187 basis points, or more than 400 percent, in the two trading days after it was announced, CMA data show.

Some of Heinz?s debt include provisions to protect investors in event of an acquisition or a downgrade.

Holders of the company?s $300 million of 2.85 percent notes due March 2022 will receive 101 cents on the dollar in addition to unpaid interest if anyone buys more than half of the company?s outstanding voting stock, or if the rating is lowered by all three rating firms to junk, according to that security?s prospectus.

Higher Leverage

?It took the market time to digest just how leveraged, and how subordinated, senior unsecured bondholders will be as a result of approximately $10.5 billion of senior secured bank debt that will be layered ahead of bonds that don?t benefit from a change of control,? said John Kneebone, a credit analyst at Paris-based BNP Paribas SA. ?Many see the potential for leverage to go higher than anticipated levels? of about 6.1 times, he said.

Heinz credit swaps surged Feb. 15 to 228 basis points at 7:37 a.m. in New York, fell to 184 at 9:07 a.m., and surged again to 224 basis points in the next 23 minutes, according to data provider CMA, which is owned by McGraw-Hill Cos. and compiles prices quoted by dealers in the privately negotiated market. A basis point equals $1,000 annually on a contract protecting $10 million of debt.

?Market speculation? that the deal wouldn?t trigger the change-of-control provision is probably incorrect, according to a Feb. 14 report from Covenant Review LLC, an independent credit research firm based in New York.

?Pretty Dumb?

Confusion over the change of control pushed some debt below par, according to Covenant Review?s founder Adam Cohen. To exploit that loophole, Berkshire and 3G would have to create a holding company over Heinz, and then argue that the combined entity counts as a ?person? in one instance but not another, Cohen said.

?That?s a really hard argument to make,? he said. ?I can?t say it?s impossible but it?s pretty dumb.?

Credit-default swaps on Heinz, which pay the buyer face value if a borrower fails to meet its obligations, less the value of the defaulted debt, were the third most-traded entity last week among 1,000 tracked by the Depository Trust & Clearing Corp., up from 720th place the week before, according to the DTCC, which runs a central registry for the market.

A daily average of $430 million traded last week, compared with an average of $150 million over the past month.

Default Swaps

Banks, hedge funds and other money managers had bought and sold swaps on a net $906 million of Heinz as of Feb. 15, up from $599.6 million the week before, DTCC data show.

The maker of condiments and Ore-Ida potato snacks, led by Chief Executive Officer Bill Johnson since 1998, had gained 17 percent in the past 12 months as it boosted sales in developing economies. The company traces its roots back to 1869, when Henry John Heinz and neighbor L. Clarence Noble began selling grated horseradish, according to Heinz?s website. The company introduced its famous Tomato Ketchup in 1876.

The company?s $436.6 million of 6.75 percent notes due in 2032, which hadn?t traded since August, dropped 21 cents to 107 cents on the dollar to yield 6.12 percent on Feb. 14, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The next day they sank to 101.5 cents to yield 6.6 percent.

The debt traded at 105.1 cents to yield 6.29 percent Wednesday, the data show.

?While details about the company?s financing plans or additional debt needs have not been disclosed, we believe the transaction would weaken Heinz?s credit protection measures well below current levels,? S&P analysts Bea Chiem and Jeffrey Burian wrote in a Feb. 14 note.

? Copyright 2013 Bloomberg News. All rights reserved.

Source: http://www.moneynews.com/InvestingAnalysis/Buffett-Heinz-Junk-rating/2013/02/21/id/491416

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PlayStation 4 Specs: PS4 Used Game Blocking Back In Question After Latest Sony Roundtable

PlayStation 4
With the PlayStation 4's existence finally confirmed, a new debate about console supremacy is already underway, but could one of the most important details still be unrevealed? Find out why some gamers are still concerned about the PS4 blocking used games when the console hits stores sometime during the 2013 holiday season. (Photo: Reuters)

Only days after reports claimed the PlayStation 4 release date would not bring Sony's first anti-used game console to market, Sony executives are apparently singing a different tune during closed-door meetings with the members of the press.

Speculation about the potential block has circulated in the weeks and months leading up to numerous console launches in recent years, as publishers and console owners become more vocal in their discontentment with the second-hand games market's existence; however, recent rumors regarding the PS4 picked up quite a bit of steam with the a patent was discovered which protects Sony's legal ownership of the technology.

Follow Us

While Sony Worldwide Studios president Shuhei Yoshida confirmed the PlayStation 4 would be used game-friendly on Wednesday, many assumed that the speculation could finally be put to rest, but a new report suggests the technology's possible inclusion is still on the table.

While some wrote off the rumors as little more than pre-announcement speculation, many began to wonder if there wasn't some truth to the PlayStation 4 speculation, particularly once similar rumors began to circulate about the Xbox 720. After all, the decision to abandon the second-hand market becomes far less risky if both Sony and Microsoft's next-generation consoles were making the jump, and both companies' silence on the matter did little to alleviate gamers' concerns.

Of course, given the company's refusal? to discuss the console, prior to Wednesday's "PlayStation Meeting", Sony's reluctance to address the anti-used games tech rumors in the days before the PS4 unveiling shouldn't have come as a huge shock. That said, when the topic didn't come up during Sony's Feb. 20 press event either, Eurogamer's confirmation from Yoshida became a lifeline to concerned PlayStation 4 fans across the globe.

It didn't take long for Sony to backtrack on those claims though, with the very same Sony executive telling members of the gaming press that PlayStation 4 game publishers would ultimately decide whether or not used games were playable on the PS4.

Worse, Sony isn't even sure if PlayStation 3 owners' digital purchases in the PSN store will carry over to the PS4. Surprisingly, the company didn't even cite PlayStation 4 hardware limitations when asked; Yoshida simply told reporters that a decision hadn't been made by Sony at that time.

It's certainly possible that Yoshida is simply acknowledging the existence of games like "Resident Evil: The Mercenaries 3D", which cannot have their progress wiped (essentially removing them from the second-hand market), while offering an answer vague enough to keep the PlayStation 4 appearing in headlines for a few more days. But it's also becoming far harder to ignore the possibility that Sony and/or a variety of third-party publishers could be actively looking to force gamers to purchase new copies of PS4 games.

What do you think of Sony's flip-flopping on the matter of used games? Would a block of some/all used games be a deal-breaker for you?

Let us know in the comments section!

Related Articles:

PlayStation 4 Specs: PS4 Not Backwards Compatible, Will Support Used Games Says Sony Exec

PlayStation 4 Specs: Eight Core x86 Processor, 8 GB GDDR5 RAM, 3D PlayStation Eye, And DualShock 4 Revealed By Sony

PS4 Specs; DualShock 4 Revealed, Touchpad, Headphone Jack Among New Features ?

For tips, complaints and observations on all things digital, email us at tips [at] idigitaltimes.com

? 2012 iDigitalTimes All rights reserved. Do not reproduce without permission.

Source: http://www.idigitaltimes.com/articles/15544/20130223/playstation-4-specs-ps4-used-game-blocking.htm

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Sunday, February 17, 2013

Artificial finger grips evolution

It seems intuitive that fingerprints should have something to do with grip, but showing this has not been easy.

Many experiments that have run human skin across various surfaces have found few if any friction benefits from the little lumps and bumps.

But new tests using an artificial finger may provide some fresh insight.

A Dartmouth College team took its mechanical digit into the field and ran it over natural materials like tree bark and found a big friction increase.

The observation is interesting because it could say something quite deep about the evolution of primates.

Only our order of animals, with a few exceptions, has these ridges, or dermatoglyphs, on the ends of fingers and toes.

The research would suggest therefore that the prints gave our ancestors a unique advantage as they clambered through ancient forests.

It is striking, says Dartmouth's Nathaniel Dominy, that the advantage shows up particularly well when natural materials are used in the experiments. Previous laboratory tests have tended to use many fingers moving across a smooth standard surface, such as a glass.

In the Dartmouth approach, it is the finger that is the control and the substrates that are varied.

Biology matters

"If you take biological materials like tree barks, something that primates are regularly gripping with their hands, we find that when the bark is being rubbed across our artificial finger there are big friction differences associated with orientation.

"In fact, the coefficient of friction increases by about 50%," said Dr Dominy.

He was talking about his work here in Boston at the annual meeting for the American Association for the Advancement of Science (AAAS).

The artificial digit has a pad made from silicone to mimic the way the skin on the end of a finger moves and stretches as it drags across a surface.

Impressed upon this pad are print designs produced by the Dartmouth, New Hampshire, team.

The whole apparatus is small enough to take outside the lab to locations with natural materials with interesting textures.

"We're finding that when you rub a natural biological surface that has an orientation - that has a grain, if you will - and you run that grain perpendicularly to the long axis of the ridges, we find a dramatic increase in friction," Dr Dominy told BBC News.

"This stands in stark contrast to earlier studies that found the orientation of rubbing really didn't matter, and that lack of difference has been a line of evidence that some people have used to argue that friction cannot be the explanation for the ridges.

"Our data differ from those earlier studies because we're finding that on a biological surface, a rough surface, that orientation does matter."

What is suggested to be at work here is the concept of asperities - the idea that if you take two rough surfaces and rub them together, the peaks in one will couple with the troughs in the other, increasing friction.

Jonathan.Amos-INTERNET@bbc.co.uk and follow me on Twitter: @BBCAmos

Source: http://www.bbc.co.uk/news/science-environment-21480654#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa

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Friday, February 15, 2013

Gas prices to rise in 2013, says Energy department

Gas prices will increase faster than expected in 2013, according to the US Department of Energy.?The slight rise in gas prices is due partly to an increase in the price of crude oil, Ingram writes, and refinery outages in January both in the US and Europe.

By Antony Ingram,?Guest blogger / February 14, 2013

Gasoline drips off a nozzle during refueling at a gas station in Altadena, Calif. A combination of rising prices and increasingly efficient cars may not be reducing gasoline use, Ingram writes, but nor is it increasing.

Mario Anzuoni/Reuters/File

Enlarge

The price of gasoline will creep up faster than expected, the U.S. Department of Energy's latest figures show.

Skip to next paragraph GreenCarReports

The website focuses on the auto industry?s future, the evolution of cars beyond fossil fuels, and the green movement's relevance to car shoppers today. For more stories on green cars, click here.

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Its monthly?Short-Term Energy Outlook?had previously put regular-grade gasoline at an average of $3.44 per gallon, but it's now expected to reach 11 cents higher.

That's still lower than 2012 prices, according toBloomberg. The average price of gas last year was $3.63 per gallon. 2014 may be cheaper still, at $3.39--though that estimate has risen from the previous $3.34 figure.

On-highway diesel prices are higher, due to market conditions and strong demand for exports. Prices are expected to average $3.92 per gallon in 2013, and $3.82 per gallon in 2014. Both these figures represent a drop from 2012's $3.97 per gallon.?

Sheffield Kevlar Shear Review: The Invincible Scissors that Will Outlast Your House

With modern manufacturers' breakneck product release cycles fueled by consumers' vapid demand for the latest and greatest technological trends, there's very little incentive to build anything to last—why bother when it will be replaced in six months anyway? However these steel shears don't abide such wasteful notions. They're built to cut through everything but your workbench and outlive your kids. More »


Source: http://feeds.gawker.com/~r/gizmodo/full/~3/JJtgKtKVn0k/sheffield-kevlar-shear-review-the-invincible-scissors-that-will-outlast-your-house

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Wednesday, February 13, 2013

NC jobless insurance fix nears final passage

RALEIGH, N.C. (AP) -- A Republican plan to cut jobless payments and raise business taxes to speed repayment of North Carolina's $2.5 billion federal debt on unemployment benefits won tentative approval Tuesday in the state Senate, all but ensuring enactment this summer.

Four Democrats joined GOP senators in voting 36-13 for the House measure, which would cut maximum weekly benefits for new jobless workers July 1 by one-third and reduce the maximum duration of state benefits from 26 weeks to 20.

Businesses both large and small would keep paying higher federal taxes until the debt to the federal government is repaid. Under the accelerated plan, that would probably now be late 2015, instead of three years later if no changes to state law were made. State taxes would go up slightly on a permanent basis, while a surcharge would remain in place until there's a $1 billion cushion in the state trust fund to pay future benefits.

A proposed decline in maximum benefits to $350 per week would bring North Carolina's amount about to the average of other Southeastern states, supporters said, while the current maximum of $535 per week is the highest in the region and has been labeled a disincentive for some to find work.

The overhaul "tries to take care of the unemployed," said Sen. Bob Rucho, R-Mecklenburg who is shepherding the House bill through the Senate, but "it doesn't put an excessive burden upon the employers that are struggling." Rucho said repaying the debt more quickly gives certainty to businesses and can help them create jobs again.

The House passed the bill last week. A final Senate vote was expected Wednesday on the bill. If approved, it would then go to new Gov. Pat McCrory, who would be asked to sign the bill into law. The Republican said in an interview Tuesday he supports the overhaul, which is designed to get the state trust fund on firmer fiscal footing before the next recession and avoid debt in the future.

"I firmly believe that North Carolina should not be living off of a credit card and not paying off that credit card. I plan to pay off that credit card," McCrory said, speaking earlier in the day at a Raleigh forum organized by the Institute on Emerging Issues. "And it's going to come to sacrifice to both businesses and people."

Labor activists and most Democrats said the measure is weighted against displaced workers by forcing them to shoulder more of the burden. Reductions in the duration of benefits and amount would comprise nearly three-quarters of the $3.6 billion in the cumulative changes required by the bill through 2017, legislative researchers estimated in a document.

Businesses received unemployment tax reductions several times during the 1990s, but the taxes were never restored to prepare for recessions when jobless payments outstripped tax revenues during the Great Recession, said Sen. Ellie Kinnaird, D-Orange.

"Over and over and over the employers came, as if there were no lean times ever coming up," Kinnaird said, "and yet we are not giving employees help this time now."

Senate Democrats offered a half-dozen amendments, five of which were defeated on party-line votes. A sixth amendment by Sen. Floyd McKissick, D-Durham, that would have reduced maximum weekly benefits to $422 per week but require all workers to pay a 0.48 percent tax on wages to help pay down the debt was withdrawn. A vote potentially could have harmed Democrats politically for supporting a broad tax increase.

Democrats also pleaded with the majority party to delay enactment on the bill until next January so a full year of federal emergency jobless benefits would continue. The benefit reductions meant the benefits must be cancelled after six months, affecting 170,000 unemployed workers that would otherwise receive $780 million, according to the U.S. Department of Labor, whose acting commissioner spoke against it Monday.

"People in my district are going to be hurt significantly," said first-term Sen. Mike Woodard, D-Durham. "They're clearly going to have fewer dollars. Their benefits are not going to last as long."

Rucho and others said waiting another six months would cost businesses another $400 million in taxes, but Democrats said that problem could be fixed with issuing state debt to avoid the extra taxes.

Sen. Tommy Tucker, R-Union, who owns a heating and air conditioning service company, said he was unhappy with the solution of higher taxes upon companies like his own. He said he'll owe more than $110,000 in unemployment taxes on his 77 employees and still may be forced to lay off one or two because of increases. But Tucker said he voted for the bill to remove the burden of the debt off businesses.

Senate Democrats voting for the bill were Clark Jenkins of Edgecombe County, Gene McLaurin of Richmond County, Ben Clark of Hoke County and Michael Walters of Robeson County.

Source: http://news.yahoo.com/nc-jobless-insurance-fix-nears-145419675.html

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