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countries. Those are the latest headlines from | :00:00. | :00:00. | |
BBC World News. Now, for the latest financial news with Sally. | :00:00. | :00:18. | |
Guilty as charged ` Credit Suisse is fined $2. 6 billion for helping US | :00:19. | :00:27. | |
clients evade tax. And: The shocking statistic ` forced labour generates | :00:28. | :00:30. | |
profits of over $150 Hello, and welcome. You're with | :00:31. | :00:42. | |
World Business Report. I'm Sally Bundock. Also in the programme: The | :00:43. | :00:46. | |
man who came in from the cold ` President Putin's plan to sell gas | :00:47. | :00:50. | |
to China. But first: It's the first big bank | :00:51. | :00:55. | |
to admit to tax evasion for two decades ` the Swiss lender Credit | :00:56. | :00:59. | |
Suisse has pleaded guilty to helping some US clients avoid paying taxes | :01:00. | :01:06. | |
to the US government. It's agreed to pay $2. 6 billion in a fine. The | :01:07. | :01:10. | |
punishment is intended to send a strong message to other banks and | :01:11. | :01:15. | |
quiet public criticism. Prosecutors there have been soft on financial | :01:16. | :01:18. | |
institutions. The outcome was a victory for the | :01:19. | :01:26. | |
Justice Department ` Credit Suisse is the biggest bank to plead guilty | :01:27. | :01:30. | |
to criminal charges in the US in more than 20 years. US | :01:31. | :01:35. | |
Attorney`General Erik Holder the bank helped American clients dodge | :01:36. | :01:38. | |
US taxes. In the course of these activities, | :01:39. | :01:43. | |
Credit Suisse desieved the IRS, the Federal Reserve, the Securities and | :01:44. | :01:46. | |
Exchange Commission, as well as the United States Department of Justice. | :01:47. | :01:49. | |
The bank went to elaborate lengths to shield itself, its employees, and | :01:50. | :01:54. | |
the tax cheats that it served from accountability for their criminal | :01:55. | :01:57. | |
actions. As part of the settlement, the Swiss | :01:58. | :02:01. | |
financial giant won't lose its banking licence in the US, but its | :02:02. | :02:07. | |
net profit will be reduced by $1. 8 billion in the second quarter. | :02:08. | :02:13. | |
Credit Suisse chief xisk Brady Dugan said in a statement, "We deeply | :02:14. | :02:16. | |
regret the past misconduct that led to this settlement. Having this | :02:17. | :02:20. | |
matter fully resolved is an important step forward for us. We | :02:21. | :02:23. | |
have seen no material impact on our business in the past several weeks." | :02:24. | :02:31. | |
Mr Dugan already apologised in February to the US Congress. Then, | :02:32. | :02:36. | |
law`makers rebuked the Department of Justice for failing to identify tax | :02:37. | :02:42. | |
dodgers. The department now feels it's made big strides in addressing | :02:43. | :02:46. | |
that. They're providing us with a great deal of additional information | :02:47. | :02:50. | |
that will allow us to determine where those accounts went, how many | :02:51. | :02:54. | |
accounts they had, some of the size of the accounts. There's going to be | :02:55. | :02:57. | |
a substantial amount of information that we're going to get that will | :02:58. | :03:01. | |
enable us to find out who the account holders are and take the | :03:02. | :03:03. | |
appropriate action. But there's no question there's a | :03:04. | :03:08. | |
bigger target here ` and that's the banks. There has been the perception | :03:09. | :03:12. | |
that the US government has failed to crack down on the bad behaviour of | :03:13. | :03:17. | |
banks over the last decade ` not least because of their role in the | :03:18. | :03:21. | |
financial crisis. With this guilty plea from a major international | :03:22. | :03:27. | |
bank, it's clear it's a perception they're trying to alter. | :03:28. | :03:34. | |
That plush hotel, that cheap pair of jeans, that beautifully cooked meal | :03:35. | :03:38. | |
` in some cases, it could be thanks to use of forced labour. New figures | :03:39. | :03:44. | |
from the international labour organisation suggests illegal | :03:45. | :03:51. | |
profits from the trade are as high as $150 billion a year ` two thirds | :03:52. | :03:55. | |
of that figure comes from the sex industry, with the rest primarily | :03:56. | :04:00. | |
from domestic work, agriculture and construction. In fact, construction, | :04:01. | :04:06. | |
mining and manufacturing nets $34 billion in illegal profits for | :04:07. | :04:10. | |
firms, according to the ILO. Agriculture remains one of the | :04:11. | :04:13. | |
biggest offenders, although the overall profits are smaller ` | :04:14. | :04:18. | |
estimated to be at $9 billion. Despite attempts to crack down on | :04:19. | :04:22. | |
modern`day slavery, it still exists in the home ` private households | :04:23. | :04:28. | |
save $8 billion a year by not paying or underpaying their staff. | :04:29. | :04:36. | |
The chief of the ILO's unit on fundamental principles and rights at | :04:37. | :04:39. | |
work joins us now from Geneva. Good to have you on the programme. That | :04:40. | :04:46. | |
is a shocking statistic ` $150 billion. The director`general of the | :04:47. | :04:51. | |
ILO is saying, "We have to eradicate this evil. We have to make greater | :04:52. | :05:01. | |
efforts to stamp this out." Easier said than done. How is that tackled? | :05:02. | :05:06. | |
Indeed. Slave labour has absolutely no place in our society. We should | :05:07. | :05:11. | |
be doing our utmost best to eradicate this as a matter of | :05:12. | :05:14. | |
priority. Now comes the question of how to do this. This is one of the | :05:15. | :05:18. | |
reasons that prompted the ILO to come up with this new statistic and | :05:19. | :05:23. | |
to doing more surveys. We need to understand better the root causes ` | :05:24. | :05:30. | |
what is prompting victims to be trapped into forced labour? This | :05:31. | :05:33. | |
report is one step in the right direction, which will enable us to | :05:34. | :05:39. | |
guide governments and policymakers into more efficient policies and | :05:40. | :05:44. | |
measures to combat forced labour, by prevention and by protection of | :05:45. | :05:47. | |
victims. Also, a lot of this ` I mean, a lot of this is criminal | :05:48. | :05:54. | |
activity, isn't it? More than half of these are women and girls, a lot | :05:55. | :05:59. | |
of them forced into sex trade. How is that tackled? Because that is | :06:00. | :06:13. | |
happening across Europe, UK, and Asia. Where do you begin? Prevention | :06:14. | :06:19. | |
will be the most cost`effective way in trying to eradicate this | :06:20. | :06:29. | |
phenomenon. A lot of effort needs to be going to pre`departure prevention | :06:30. | :06:33. | |
by raising awareness of the most vulnerable, those are more likely to | :06:34. | :06:37. | |
fall into the trap of forced labour. But we need, also, to be stepping up | :06:38. | :06:44. | |
our efforts to protect victims, by giving them access to effective | :06:45. | :06:51. | |
protective measures, by being more efficient also in enforcing the law | :06:52. | :06:57. | |
in prosecuting those that are currently using forced labour and | :06:58. | :07:02. | |
forced sex workers. It's really a combination of very efficient | :07:03. | :07:06. | |
prevention measures and very effective protection measures of | :07:07. | :07:09. | |
victims, and also getting those that are using forced labour to pay and | :07:10. | :07:14. | |
compensate the victims. All right. Thank you for your time, from the | :07:15. | :07:18. | |
International Labour Organisation. Of course, there is so much more to | :07:19. | :07:20. | |
discuss. Unfortunately, we haven't got time at the moment. There's more | :07:21. | :07:25. | |
on that story on our website. Let's talk about these two gentlemen | :07:26. | :07:29. | |
` the heads of state of both Russia and China came face to face today at | :07:30. | :07:34. | |
a summit in Shanghai. It's widely sprct expected that, over the next | :07:35. | :07:39. | |
two days, they'll sign a huge deal on gas supplies. Under the deal, | :07:40. | :07:45. | |
Russia would export to China 38 billion cubic metres of gas per year | :07:46. | :07:48. | |
` equivalent of a third that it exports to Europe. Russia is keen | :07:49. | :07:53. | |
for a second big gas market besides Europe. Would it spell a new era in | :07:54. | :08:00. | |
Russian`Chinese relations? Increasingly, Chinese cities are | :08:01. | :08:04. | |
becoming enveloped in smog, produced by the huge amounts of coal the | :08:05. | :08:08. | |
country burns to drive its economy. It wants to import cleaner fuels, | :08:09. | :08:15. | |
like gas. Russia is offering to supply approximately a tenth of the | :08:16. | :08:19. | |
gas China needs for the next 30 years. To do this, Russia's Gazprom | :08:20. | :08:25. | |
will deliver gas from felsds in the far east of the country via a new | :08:26. | :08:29. | |
pipeline thousands of miles long. This plan goes back ten years, but | :08:30. | :08:34. | |
has been held up by arguments over the price China would pay. Recently, | :08:35. | :08:38. | |
however, Russia has seemed much keener to push the deal through. The | :08:39. | :08:43. | |
crisis in Ukraine and the resulting tensions between Europe and Russia, | :08:44. | :08:46. | |
including over gas supply, have, I think, increased from the Russian | :08:47. | :08:49. | |
point of view, the political importance of demonstrating that it | :08:50. | :08:54. | |
has a major long`term second market for its gas. The gas which China | :08:55. | :08:59. | |
would get comes from the far eastern part of Russia and would not have | :09:00. | :09:02. | |
been marketed in Europe, and so there's no question of countries | :09:03. | :09:07. | |
there being deprived in future of the gas supplies they currently get. | :09:08. | :09:12. | |
But some wonder whether Russia ` after striking a big commercial deal | :09:13. | :09:17. | |
with China ` would aim to develop closer political ties. China is | :09:18. | :09:21. | |
still on pretty good terms with the United States, pretty good terms | :09:22. | :09:27. | |
with the EU, pretty good terms with a lot of African countries. Russia, | :09:28. | :09:33. | |
after this Crimea and Ukraine crisis, has been caught isolated `` | :09:34. | :09:37. | |
quite isolated. From the Russians' point of view, it is important to | :09:38. | :09:42. | |
have some sort of support and ally from China. However, China, for its | :09:43. | :09:47. | |
part, will have to wait a long time for the benefits of Russian gas. | :09:48. | :09:52. | |
It'll take years for the new fields to be developed and for the pipeline | :09:53. | :09:58. | |
to be laid, and the first gas would only arrive in China by 2018 at the | :09:59. | :10:05. | |
earliest. A quick look at the Asian markets | :10:06. | :10:07. | |
now: earliest. | :10:08. | :10:08. | |
A quick look at the Asian markets In Japan, shares rose from a one`month | :10:09. | :10:11. | |
low. Thailand's caught a lot of the attention. You can see a mixed | :10:12. | :10:16. | |
picture there. In Thailand, the markets fell ` the bot weakened | :10:17. | :10:21. | |
because of the situation emerging there. | :10:22. | :10:24. | |
That's World Business Report. I'll see you soon. | :10:25. | :10:34. | |
Thanks to Sally for that. We will get to the papers in a moment. | :10:35. | :10:39. | |
First: Thousands of schoolchildren from England are beginning to | :10:40. | :10:43. | |
commemorate the centenary of the First World War by taking special | :10:44. | :10:45. | |
tours of battlefields in Belgium and France. The tours are part of a | :10:46. | :10:49. | |
government`funded programme to | :10:50. | :10:50. |