20/08/2014 World Business Report


20/08/2014

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are the latest headlines from BBC World News. Now for the latest

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financial news with Sally Bundock and World Business Report. Another

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fine ` Standard Chartered is ordered to pay $300 million by American

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regulators for failing to prevent money laundering. Bookseller Barnes

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and Noble teams up with Samsung in an attempt to revive the fortunes of

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its ailing e`reader, the Nook. Welcome to World Business Report.

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I'm Sally Bundock. Also in the programme: Japanese car parts makers

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are found guilty of price`fixing in China. We'll have the details. But

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first: One of Britain's biggest banks, Standard Chartered, has been

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fined $300 million by New York's banking regulator. It said the bank

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had failed to improve money laundering problems highlighted in

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2012, when it also had to pay a multimillion`dollar fine. Michelle

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Fleury is in New York for us. With operations here in New York,

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Standard Chartered suspended under the supervision of the Department of

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Financial Services. This is the second penalty the bank has paid to

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the main New York state regulator. Both are related to trade with

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countries blacklisted by the US. The British bank said it was working to

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fix these problems with the utmost urgency, in addition to improving

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compliance. As part of a settlement in 2012, a monitor was appointed to

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watch over its dealings. That surveillance uncovered failings to

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identify risky transactions that could be part of money`laundering.

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On top of that, the lender has been ordered to suspend or excerpts its

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business with risky clients in Hong Kong, and it cannot accept new

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clearing accounts in US dollars without the regulator's approval.

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Benjamin Law ski, a regulator with a reputation for being tough on banks,

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says if a bank fails to live up to its commitment, there should be

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consequences. The penalty is yet more bad news for chief executive

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Peter Sands and for Standard Chartered, which reported a 20% drop

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in profits. China fined 12 Japanese auto`parts makers a record 1.24

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billion yuan, that's $200 million, for price`rigging after one of the

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broadest investigations since the nation's antitrust law came into

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effect six years ago. Rico Hizon is in our Asia Business Hub in

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Singapore. Tell us more about this. This is interesting. The 12

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companies which have been pinpointed. That's right. You have

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eight auto`parts makers being fined $135 million, and another four

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manufacturers, $65 million. And this is due to so`called collusive

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behaviour. The companies drew this record antitrust fine as scrutiny by

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mainland authorities continues to tighten up, not only in the auto

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sector, but in other industries. And Sally, the investigations, which

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have led at least seven auto makers to cut prices, has raged so much

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concern from foreign businesses that European businesses say they are

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being picked on `` raised. But the government has stressed that

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companies operating in mainland China will be punished if they

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violate laws, regardless of whether they are domestic or foreign

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companies. One of my top stories last week was the dismal growth

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numbers coming from Japan. It was pretty shocking. But in terms of

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trade, they have had a good month in July. Fill us in. That's right. Good

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news. For the first time in three months, exports are in positive

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territory. Growth, driven by increased shipments of cars to

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Europe, metal processing machinery, and items such as LCD screens.

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Exports which account for more than half of Japan's total exports rose

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due to increases in ship. Exports to the US gaining as Japan shipped more

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car parts. `` shipments. Overall it has been positive in the month of

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July. Japanese exports have been struggling with weak demand from

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Asia through much of the year drew to a growing shift production

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overseas. But when you speak to analyst, they say this data is a

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tentative sign that overseas demand is starting to recover, raising

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hopes that exports could offset a slump in consumer spending, which

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has been impacted by this rise in the consumption tax from five to 8%

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from the 1st of April. Thank you very much indeed. Are you into

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e`books? The e`book reader Nook, launched by US publishers Barnes

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Noble, was meant to rival Amazon's Kindle. It cost billions of dollars

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to develop, but so far has reaped the company no profit. Later today,

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in New York, Barnes Noble will unveil a new version of the Nook,

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which it hopes will put it back in the e`book race. So what is it? And

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will it make any more money than the last version? Jeremy Howell reports.

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Barnes Noble launched its Nook e`book reader five years ago, as a

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rival to Amazon Amazon's enormously popular Kindle. But the Nook has

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racked up $17 million in losses. Amazon built on its strengths,

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launching the Kindle Via tablet and establishing complete dominance of

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the market. Nowadays in the US, a quarter of adults read e`books stop

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nearly half of them use a Kindle reader. Over a quarter years the

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Kindle Fire. Less than 10% use the Nook e`reader, and only 15% use the

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Nook tablet. They have succeeded by building an environment very early

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on when you could write a book with a single click. They made a

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marketplace where buying a book was a throwaway impulse purchase, much

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like iTunes is for Apple. By the time Nook came to the market with

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its own fully developed marketplace, they had already lost too much

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ground not only to Amazon but to the other viable platforms as well. I

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love it. The Mac this is so cool. This is really nice. A few days ago

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Tom Sharp eyed surfers on the Internet found this advertisement.

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It is an e`book reader app which will run on a Samsung tablet. The

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company is switching strategy, offering its product on another

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company's mobile device. The smarter purchasing option in my eyes is to

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buy a tablet you can read your e`books on, rather than a standalone

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device. So Samsung is being quite canny in that respect. However,

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there are already some great e`reader apps on the market, that

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you can download to any tablet or smartphone you own right now.

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Apple's devices and Google android devices already carried e`book

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reading apps. So it seems that in tying up with Samsung, Nook will be

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trying to fight its way into a crowded market place. In other news:

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Some Air France flight crews are refusing to board planes bound for

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Guinea, Sierra Leone and Nigeria, over fears of the Ebola outbreak.

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The airline said cabin crew scheduled to work on some flights

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have not wanted to carry out their assignment. But Air France says none

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of the flights destined for the region had been left short`staffed.

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Former Microsoft chief executive Steve Ballmer has said he is

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stepping down from the board of the tech giant, with immediate effect.

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In a public letter, Mr Ballmer said he had become very busy since he

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quit the top job, and that it would be impractical to continue. His

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decision to leave follows his recent purchase of the Los Angeles Clippers

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basketball team. And the handset maker HTC has unveiled a new

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smartphone that runs a Windows Phone operating system. The modified One

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M8 is being sold at roughly half the price of the same handset running

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Google's Android. This is the first time the struggling manufacturer has

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released a Windows smartphone in more than two years. Looking at

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financial markets, things are quieter and more volatile. Eight

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days in a row of gains for Japan. A weak yen, the dollar gaining ground

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against most major currencies, today you can see it buying 103 yen. That

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benefits Japan's bid companies like Sony and other export exposed

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companies. That is the close in the US. Look at the NASDAQ. One of the

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league games was Apple. Those shares climbed, boosting markets in general

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`` big gains. A government minister has described

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mental health services for young people in England as not fit for

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purpose and stuck in the Dark Ages. The Care Minister Norman Lamb was

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speaking to BBC News, as he gave details of a task force that is

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being set up to improve services. Mr Lamb was speaking to our social

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affairs correspondent, Michael Buchanan.

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