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The company's food and ingredient earnings weredisappointing and its energy business, which includes trading inpetroleum, coal, power and gas, declined. Despite the poorperformance, Cargill plans to expand their energy business toinclude more physical trade.
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A drop in the nation's credit rating, as happened when the government flirted with default under similar circumstances in 2011, would increase U.S. costs and could plunge the nation back into recession, Obama said.
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The force majeure on production in Syria is unlikely to be reversed in the medium term. This is what would get the group rapidly back into the black. The company is therefore really a pure exploration group with a small amount of production, with all the inherent risks this entails. Drilling tends to cost about $2.5m per hole – and there is no guarantee that hydrocarbons will be found.
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While the SPLM can do little about the lower oil production it makes the situation worse by ignoring the talent of South Sudanese who grew up abroad. They have much-needed skills but struggle to land jobs in ministries because veterans from the civil war see them as traitors.
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