01/07/2014 World Business Report

headlines from BBC World News. Now for the latest financial news with

World Business Report. Guilty as charged ` a US court orders BNP

Paribas to pay a record fine of $9 billion and face restrictions on its

dollar trading for violating US sanctions. From farm to fork, food

gets wasted. In a new series we look at what is being done to tackle the

problem. Welcome to World Business Report. I'm Sally Bundock. Also in

the programme: markets in Asia cheer the latest manufacturing news from

China. But first: a bumper month in June. Starting with what happened

after the close of trade on Wall Street. France's biggest bank, BNP

Paribas, has been fined a record $9 billion for violating US trade

sanctions against Iran, Sudan and Cuba. As part of a settlement with

US authorities, BNP not only admitted its guilt, but is also

firing staff and will have to halt some of its business carried out in

US dollars. BNP's punishment is significantly heavier than that

meted out to HSBC for similar breaches of US law. Samira Hussain

has more from New York. Despite the pleading of French officials for

leniency, this settlement I American regulators are amounts to the

largest criminal penalties in US history. These actions represent a

serious breach of United States law. Sanctions are a key tool in

protecting the United States national security interests, but

they only work if they strip the enforced. If sanctions are to have

teeth, violations must be punished. `` strictly enforced. It is a record

sum for a bank accused of doing business with countries on the US

sanctions list. US regulators say BNP he had $30 billion worth of

transactions, much of which went to financing oil contract in countries

blacklisted by America, including Iran, Sudan, and Cuba. The bank will

also be pleading guilty in a New York state court. It is a rare

move, since such an admission often leads to a bank losing its licence.

That won't be the case for BNP however. Instead, it will be

temporarily banned from making US dollar transactions. A significant

blow to a bank operating international markets. While the

settlement ends months of negotiations, the question now is

how will France's biggest bank recover as Mac finds almost wipe out

all of its profits last the blow to its reputation may be

much higher. And of course, we knew this was coming, so to a great

degree it is priced in. But in a few hours' time, the trading day will

begin in Paris and we will keep you across the reaction there. Now let's

talk about June proving to be a bumper month for China's factories.

Economists say it is another sign that government moves to stall the

slowdown are working. Sharanjit Leyl is in our Asia business hub in

Singapore. Music to the ears of markets. You said it. Japanese

market currently higher in Asia. Most are high. Some are a tad

lower, including Hong Kong and the ones in China, but the manufacturing

activity, as you said, a bumper month. It was the fastest pace for

six months in June. That is a sign that the government's recent

stimulus moves are starting to have something of an impact. This is all

measured through the official purchasing managers index, that is

the PMI. It rose to 51 from 50.8, in May. It is a key indication of the

manufacturing sector 's health. Anything above 50 shows expansion.

China of course, a world's second largest economy. That is really

important what happens there. Officials there have taken lots of

murders in recent months, including cutting taxes for small firms,

trying to boost growth there. The central bank Bear said it would cut

the amount of cash that banks need to keep in reserve for banks that

are engaging in lending to the agriculture sectors. `` Central Bank

of their. We saw them saying they would also encourage banks to lend

more to exporters to boost shipments. And in April, the

government cutting taxes on small firms to try and speed up as well

the construction of railway lines across the country. All of this

really being done to help China's economy, to try and develop more of

its domestic economy, as opposed to its external economy. So attempt for

China to continue its expansion rate. The Chinese government have

said they want to grow about 7.5%. We know it only really grew 7.4%

from January to March. Thank you very much, keeping us up to date on

what is happening in China. In a new report the UN has called for more

effort by governments to reduce the huge quantity of food that is wasted

every day around the world, not just in the rich nations, but in the

developing world as well. Almost one third of food produced for human

consumption worldwide is either lost or wasted. That is an absolutely

staggering 1.3 billion tons of food per year. Overall, all that wasted

food costs us more than $750 billion each year, and it could easily feed

all of the world's one billion starving people. All this week we're

looking at the problem, where, in its journey from farm to fork, food

gets wasted and what's being done to tackle the problem. Today, we're

down on the farm in America. Close to half of all food in the US goes

uneaten. And the waste starts in the fields, where fruit and veg can be

discarded simply because it's irregular in shape or the wrong size

for the supermarkets. Michelle Fleury went to visit one farmer

who's found a creative way to deal with the issue. In Orange County,

New York, lacks oil is particularly well`suited for growing onions. ``

black soil. But not all of them will make it out of the field. Food waste

is a big issue. 40% of all American food goes only so on. And it is a

problem that starts long before you get to the dining room table. Here

at these farms, this onion is big enough to make it onto supermarket

shelf. This one is not, even though it is perfectly edible. Chris's

family has been farming this land for four generations. It has to meet

the two inch minimum standard, if it doesn't make the two inch minimum,

it is deemed a dropout or undersized or a pickle onion. What happens if

it is too small? You have to look for secondary markets. If there is a

drought year, you have a glut of undersized onions and have a hard

time moving them. Sometimes people in the past have dumped them,

actually. A lot of local produce ends up in the city, at a farmer's

market in union Square. It allows growers to sell food which might

otherwise end up in a landfill. That means we will go out, engage

farmers, and try and get as much salvageable food as we can. Anything

on salt gets picked up like an organisation called city harvest,

within 24 hours that donated produce is distributed to food pantries and

soup kitchens across New York. With homeless shelters busier than ever,

the need has never been greater. `` anything unsold. We have rescued ?46

million of food, 60% of which is produce. Another ?4 million was

rescued directly from farmers in our local area. Farmer Chris is only too

happy for city harvest to take onions that are too small of his

hands. I want it to be consumed. I would like to get paid for it if

possible, but at the very least I don't want to see it in the dump.

Making sure fewer people go to bed hungry is helping to reduce waste

your in the land of plenty. In other news: General Motors has announced

it is to recall another 7.6 million more vehicles dating back to 1997 to

fix faulty ignition switches. That brings the total amount of recalls

this year for the company to almost 28 million. Separately the company

has it won't limit the amount of money it will pay to those injured

as a result of these ignition switches. Victims will receive

compensation of between $20,000, and several million dollars. At least 13

people died as a result of the faulty parts. Let's have a look at

financial markets. faulty parts. Let's have a look at

financial Today we have the Chinese news about its economy that really

boosted sentiment. Japan boosted by the latest Hong Kong survey showing

business sentiment remains strong. That is the close in the US. I will

see you soon as we look through the papers. We will take a look at the

papers in just a moment. But first, Britain should keep and renew the

Trident nuclear weapons system, according to an independent cross

party Commission. But members could not agree on whether the number of

submarines could be reduced. The Commission said there should be

further technical assessments before a final decision on replacing the

Vanguard submarines is taken, as