06/02/2013 World Business Report

Conservative Mps opposed the change. Those are the latest headlines from

BBC World News. Now for the latest financial news

Britain's Royal Bank of Scotland gets set to be slapped with an $800

million fine for rigging interbank lending rates. And back in the

game? Zynga announces a sharp fall in losses as it breaks ties with

Welcome to World Business Report. Why Japan's main share market is

trading so high today. We will find out. Britain's Royal Bank of

Scotland will today announce a Libor settlement with UK and US

regulators that could cost the part-nationalised bank close to

$800 million. It follows the news that the boss of the banks

investment arm John Hourican will step down for his part in the

scandal. Libor, or London Interbank Offered Rate, estimates the rates

at which banks lend money to each other and affects huge numbers of

contracts around the world.Last year it emerged that hundreds of

bankers had purposely manipulated the rate to boost trading positions

or make their bank more secure. Barclays has already paid out $450

million in fines and Swiss bank UBS $1.5 billion. With me is Ralph

Silva, banking analyst at SRN. Good to see you. RBS other next to be

given a hefty fine. It dwarfs that of what Barclays played out.

Barclays was the first to go. I think there was some benefit in

being the first. Because RBS is mostly owned by the public, there

are some politics involved. They cannot give a low fine because it

is not fair to other banks that are not privatised. HSBC and Barclays

have to pay a large fine. It would not be fair to use a lot of fine

because it is publicly owned. would be paid? RBS is under

pressure to take the money out of its bonus pot. There is not enough

money to pay for it all from there. It will have to come from somewhere

else. We will see the government peso this. The government will have

to pay a portion of the money to the US. Some of it is for the

British regulators as well. head of the Bank has announced he

is going. Is that it as Forres individuals and responsibility?

is the highest profile. The investment programme will be wound

down her becoming mothers. They do not have the resources to sustain

it. -- over the coming months. We'll see other heads roll because

the discussion is back on the front page. They will have to deal with

it. What about the prospects for RBS. Taxpayers are owned a large

part of the bag. Will we ever get the money back? We could get the

money back if we are willing to wait. Politicians are losing

patience. Politicians are looking at privatisation. They will give

the shares to the public. Then the public can own it and get it out of

government hands. Thank you. As soon as we have any announcement on

the actual size of the fine we will make sure you hear it. Keep in

touch with us. Translating popularity into profits - that's

been the challenge facing Zynga - the online gaming company behind

Farmville and Words with Friends. It's reported a sharp drop in

losses in the last three months of 2012 - it lost just $48 million,

down from $435 million for the same period the year before. The San

Francisco-based company has been undergoing a transformation,

breaking its ties with Facebook, which previously hosted its games,

and setting up its own gaming platform. Samira Hussein reports.

Character interaction, world building... They may look like a

typical student put -- a typical student group, but they are

involved in a master's programme in gaming. Games will become what

cinema was for the 20th century. Gaining has become an important

part of pop culture. Translating popularity into profits has proved

elusive. What we're seeing more than anything is an explosion of

different kinds of opportunities. Different distribution methods,

different business models, 'Harry Potter' for Zynga, finding a model

that works is a prologue. They made their debut a little over one year

ago. Since then, the stock price has been on a decline. Revenues

continued to fall. Couple that with the company's recent decision to

lay off 5% of its workforce, the company is now placing bets on

gambling as a new source of revenue. The company did better than

expected. Still, it faces obstacles. They make most of their money from

Facebook, with the social network making products of mobile users, it

presents a problem. Orders and, everyone who was playing these

games on Facebook shifted their attention and money towards mobile

games played on ferns and tablets computers. For Zynga it has been a

big and a real problem. Bera Ivanishvili is now fighting to stay

afloat. -- Zynga is now fighting to stay afloat. The company's very

survival is at stake. Now to China which has this morning announced it

intends to raise the minimum wage it pays workers- a plan that should

lift up to 80 million people out of poverty by 2015. Sharanjit Leyl is

at our Asia business hub in Singapore. Tell us more. It is all

part of a long-awaited plan to tackle the income gap between the

rich and poor. The minimum wage would increase to 40% of average

salaries. The growing divide has been an area of big concern in

China. There has been a lot of political uneasiness about an

unfair society. The new rules have been announced. State-owned firms

would be to give a greater share of profits to the government. This

money will be used to fund social security programmes. China's gauge

of income disparity rose in 2012. It wrote to a level higher than we

seen as a threshold for potential social unrest. The statistics are

big. Almost 128 people in rural areas are defined as poor. -- 128

million people. It has been quite a day in Tokyo. A three-year high for

Japan's market. This is due to the weakness of the yen. It has touched

a new lows. The yen is at a three- year low against the dollar. That

has helped export relied stocks. Car manufacturers are rising. Much

of the gains are coming after the Governor said he would step down.

That has raised the prospect that the next Governor will be more keen

to implement what has been demanded by the Prime Minister. One more

story before we go. The UK cable TV operator Virgin Media is being

bought by Liberty Global of the US for $16 billion. The deal is the

biggest media transaction since 2007 and challenges Rupert Murdoch

in Europe's biggest pay TV market. John Malone, the owner of Liberty

Global, is looking to increase the companies presence outside of the

US. He already runs pay TV providers in Germany - Belgium and

Switzerland. We will look at the market numbers in Asia. They're

having a fantastic day. Up 4%. We have 20 minutes to go in Japan.