:00:01. > :00:03.Conservative Mps opposed the change. Those are the latest headlines from
:00:03. > :00:13.BBC World News. Now for the latest financial news
:00:13. > :00:21.
:00:21. > :00:28.Britain's Royal Bank of Scotland gets set to be slapped with an $800
:00:28. > :00:31.million fine for rigging interbank lending rates. And back in the
:00:31. > :00:41.game? Zynga announces a sharp fall in losses as it breaks ties with
:00:41. > :00:51.
:00:51. > :00:57.Welcome to World Business Report. Why Japan's main share market is
:00:57. > :01:00.trading so high today. We will find out. Britain's Royal Bank of
:01:00. > :01:02.Scotland will today announce a Libor settlement with UK and US
:01:02. > :01:07.regulators that could cost the part-nationalised bank close to
:01:07. > :01:10.$800 million. It follows the news that the boss of the banks
:01:10. > :01:14.investment arm John Hourican will step down for his part in the
:01:14. > :01:18.scandal. Libor, or London Interbank Offered Rate, estimates the rates
:01:18. > :01:20.at which banks lend money to each other and affects huge numbers of
:01:20. > :01:23.contracts around the world.Last year it emerged that hundreds of
:01:23. > :01:31.bankers had purposely manipulated the rate to boost trading positions
:01:31. > :01:38.or make their bank more secure. Barclays has already paid out $450
:01:38. > :01:48.million in fines and Swiss bank UBS $1.5 billion. With me is Ralph
:01:48. > :01:48.
:01:48. > :01:56.Silva, banking analyst at SRN. Good to see you. RBS other next to be
:01:56. > :02:00.given a hefty fine. It dwarfs that of what Barclays played out.
:02:00. > :02:05.Barclays was the first to go. I think there was some benefit in
:02:05. > :02:09.being the first. Because RBS is mostly owned by the public, there
:02:09. > :02:14.are some politics involved. They cannot give a low fine because it
:02:15. > :02:20.is not fair to other banks that are not privatised. HSBC and Barclays
:02:20. > :02:25.have to pay a large fine. It would not be fair to use a lot of fine
:02:25. > :02:30.because it is publicly owned. would be paid? RBS is under
:02:30. > :02:34.pressure to take the money out of its bonus pot. There is not enough
:02:34. > :02:39.money to pay for it all from there. It will have to come from somewhere
:02:39. > :02:45.else. We will see the government peso this. The government will have
:02:45. > :02:55.to pay a portion of the money to the US. Some of it is for the
:02:55. > :03:04.British regulators as well. head of the Bank has announced he
:03:04. > :03:09.is going. Is that it as Forres individuals and responsibility?
:03:09. > :03:12.is the highest profile. The investment programme will be wound
:03:12. > :03:21.down her becoming mothers. They do not have the resources to sustain
:03:21. > :03:27.it. -- over the coming months. We'll see other heads roll because
:03:27. > :03:36.the discussion is back on the front page. They will have to deal with
:03:36. > :03:41.it. What about the prospects for RBS. Taxpayers are owned a large
:03:41. > :03:45.part of the bag. Will we ever get the money back? We could get the
:03:45. > :03:51.money back if we are willing to wait. Politicians are losing
:03:51. > :03:56.patience. Politicians are looking at privatisation. They will give
:03:56. > :04:02.the shares to the public. Then the public can own it and get it out of
:04:02. > :04:06.government hands. Thank you. As soon as we have any announcement on
:04:06. > :04:09.the actual size of the fine we will make sure you hear it. Keep in
:04:09. > :04:12.touch with us. Translating popularity into profits - that's
:04:12. > :04:15.been the challenge facing Zynga - the online gaming company behind
:04:15. > :04:18.Farmville and Words with Friends. It's reported a sharp drop in
:04:18. > :04:26.losses in the last three months of 2012 - it lost just $48 million,
:04:26. > :04:27.down from $435 million for the same period the year before. The San
:04:28. > :04:30.Francisco-based company has been undergoing a transformation,
:04:30. > :04:40.breaking its ties with Facebook, which previously hosted its games,
:04:40. > :04:42.
:04:42. > :04:47.and setting up its own gaming platform. Samira Hussein reports.
:04:47. > :04:52.Character interaction, world building... They may look like a
:04:52. > :04:59.typical student put -- a typical student group, but they are
:04:59. > :05:04.involved in a master's programme in gaming. Games will become what
:05:05. > :05:09.cinema was for the 20th century. Gaining has become an important
:05:09. > :05:14.part of pop culture. Translating popularity into profits has proved
:05:14. > :05:19.elusive. What we're seeing more than anything is an explosion of
:05:19. > :05:26.different kinds of opportunities. Different distribution methods,
:05:27. > :05:33.different business models, 'Harry Potter' for Zynga, finding a model
:05:33. > :05:39.that works is a prologue. They made their debut a little over one year
:05:39. > :05:43.ago. Since then, the stock price has been on a decline. Revenues
:05:43. > :05:48.continued to fall. Couple that with the company's recent decision to
:05:48. > :05:54.lay off 5% of its workforce, the company is now placing bets on
:05:54. > :05:59.gambling as a new source of revenue. The company did better than
:05:59. > :06:06.expected. Still, it faces obstacles. They make most of their money from
:06:06. > :06:11.Facebook, with the social network making products of mobile users, it
:06:11. > :06:18.presents a problem. Orders and, everyone who was playing these
:06:18. > :06:25.games on Facebook shifted their attention and money towards mobile
:06:25. > :06:30.games played on ferns and tablets computers. For Zynga it has been a
:06:30. > :06:40.big and a real problem. Bera Ivanishvili is now fighting to stay
:06:40. > :06:44.afloat. -- Zynga is now fighting to stay afloat. The company's very
:06:44. > :06:47.survival is at stake. Now to China which has this morning announced it
:06:47. > :06:54.intends to raise the minimum wage it pays workers- a plan that should
:06:54. > :07:04.lift up to 80 million people out of poverty by 2015. Sharanjit Leyl is
:07:04. > :07:08.
:07:08. > :07:11.at our Asia business hub in Singapore. Tell us more. It is all
:07:11. > :07:18.part of a long-awaited plan to tackle the income gap between the
:07:18. > :07:24.rich and poor. The minimum wage would increase to 40% of average
:07:24. > :07:28.salaries. The growing divide has been an area of big concern in
:07:28. > :07:34.China. There has been a lot of political uneasiness about an
:07:34. > :07:39.unfair society. The new rules have been announced. State-owned firms
:07:39. > :07:49.would be to give a greater share of profits to the government. This
:07:49. > :07:51.
:07:51. > :08:01.money will be used to fund social security programmes. China's gauge
:08:01. > :08:03.
:08:03. > :08:08.of income disparity rose in 2012. It wrote to a level higher than we
:08:08. > :08:18.seen as a threshold for potential social unrest. The statistics are
:08:18. > :08:27.big. Almost 128 people in rural areas are defined as poor. -- 128
:08:27. > :08:33.million people. It has been quite a day in Tokyo. A three-year high for
:08:33. > :08:41.Japan's market. This is due to the weakness of the yen. It has touched
:08:41. > :08:51.a new lows. The yen is at a three- year low against the dollar. That
:08:51. > :08:52.
:08:52. > :09:02.has helped export relied stocks. Car manufacturers are rising. Much
:09:02. > :09:02.
:09:02. > :09:07.of the gains are coming after the Governor said he would step down.
:09:07. > :09:15.That has raised the prospect that the next Governor will be more keen
:09:15. > :09:21.to implement what has been demanded by the Prime Minister. One more
:09:21. > :09:24.story before we go. The UK cable TV operator Virgin Media is being
:09:24. > :09:27.bought by Liberty Global of the US for $16 billion. The deal is the
:09:27. > :09:32.biggest media transaction since 2007 and challenges Rupert Murdoch
:09:32. > :09:35.in Europe's biggest pay TV market. John Malone, the owner of Liberty
:09:35. > :09:39.Global, is looking to increase the companies presence outside of the
:09:40. > :09:49.US. He already runs pay TV providers in Germany - Belgium and
:09:50. > :09:51.
:09:51. > :09:57.Switzerland. We will look at the market numbers in Asia. They're
:09:57. > :10:07.having a fantastic day. Up 4%. We have 20 minutes to go in Japan.