:00:00. > :00:00.BBC World News. Time now for the latest financial
:00:00. > :00:19.news in World Business Report. Europe counts the cost of sanctions
:00:20. > :00:24.as Russia's ban on food imports start to bite.
:00:25. > :00:27.As America demonstrates it wants to play a leading role in Africa's
:00:28. > :00:34.growth story, what about those who've left Africa to build a new
:00:35. > :00:42.life in the US? Welcome to World Business Report.
:00:43. > :00:46.I'm Sally Bundock. Also in the programme: Is a bidding
:00:47. > :00:48.war about to start to win the world's number two winemaker? We'll
:00:49. > :00:51.have the details. A task force is being set up by
:00:52. > :00:57.European officials to analyse the impact of the Russian ban on EU food
:00:58. > :01:00.imports. Moscow has banned most food imports from the West in retaliation
:01:01. > :01:08.for US and EU sanctions imposed over Russia's actions in Ukraine. Let's
:01:09. > :01:11.look at some figures. European Commission figures from last year
:01:12. > :01:22.indicate that EU food exports to Russia last year were worth 11.8
:01:23. > :01:28.billion euros. In dollars, that's $15.8 billion. While US food exports
:01:29. > :01:35.to Russia are worth 972 million euros, about $1.3 billion. And, last
:01:36. > :01:38.year Russia was the EU's second`biggest market for food
:01:39. > :01:49.exports, 10% of total after the US, which is13%. `` is 13%.
:01:50. > :01:51.I'm joined by Peter Kendall, chair of the Agriculture and Horticulture
:01:52. > :01:58.Development Board and former National Farmers' Union president.
:01:59. > :02:03.Thanks for being on the programme. As the EU's agriculture commissioner
:02:04. > :02:08.establishes a task force, I know they will get into discussions later
:02:09. > :02:19.in Brussels. What are you think they will try to tackle in terms of this?
:02:20. > :02:24.Exports to Russia are banned. It is important that farmers understand
:02:25. > :02:30.this is big global politics. Nearly 300 people killed when an aeroplane
:02:31. > :02:34.came down. To put this as how it impacts farmers, we realise and we
:02:35. > :02:37.have to knuckle down and work out the impact which is why we are
:02:38. > :02:42.pleased to the commission is looking at the details about what is means
:02:43. > :02:49.for agricultural markets. They have a crisis fund, meaning they can have
:02:50. > :02:55.some funding to remedy the problems. You mentioned the big monetary
:02:56. > :03:01.values. 1 million tons of dairy products that Russia imports,
:03:02. > :03:07.300,000 tons come from the EU. The EU dairy markets are already
:03:08. > :03:12.depressed. Taking a market that takes 300,000 tons of dairy products
:03:13. > :03:16.from the EU and finding markets elsewhere in the world, bearing in
:03:17. > :03:21.mind Australia and the US are already included in those bands as
:03:22. > :03:23.well, this could have very damaging impact on those dairy markets and
:03:24. > :03:30.horticulture markets are very similar `` bans. What are you
:03:31. > :03:37.looking to the EU to do in terms of help and support? We don't know how
:03:38. > :03:41.long the sanctions will last. The farming organisations will
:03:42. > :03:45.represent. Farmers will go to government and tell them what they
:03:46. > :03:49.need to do. The organisation you said that a chair, our job is to
:03:50. > :03:54.make sure we understand what the numbers mean. The UK is a very small
:03:55. > :04:01.exporter to Russia. It is the ripple effect. You throw a brick in the
:04:02. > :04:07.pond and it ripples out. The country is next to Russia are big exporters
:04:08. > :04:11.to Russia. It means the EU market will be oversupplied `` the European
:04:12. > :04:16.market. I mention dairy and horticulture, we need to understand,
:04:17. > :04:19.the organisation I chair, what that means to market so that
:04:20. > :04:23.organisations that bat on behalf of farmers can say to the government it
:04:24. > :04:28.is more serious than they think. Say to the EU that it will damage
:04:29. > :04:32.confidence. My organisation wants to make sure that we grow the UK
:04:33. > :04:36.agricultural industry so that farmers have the confidence to
:04:37. > :04:39.invest. They want to make sure the government puts right how the
:04:40. > :04:44.farming industry is becoming the unintended consequence of these
:04:45. > :04:49.global sanctions. Peter Kendall, for now, we appreciate your time.
:04:50. > :04:53.Interesting perspective. Just to say, as the discussions in the EU
:04:54. > :04:56.progress throughout the week, we will keep you up`to`date here on BBC
:04:57. > :05:00.World News. Now, a rival has entered the fray in
:05:01. > :05:05.a bid to win Australia's Treasury Wine Estates. The world's number two
:05:06. > :05:08.winemaker has received a second takeover offer worth more than $3
:05:09. > :05:12.billion from a private equity firm. Sharanjit Leyl is in Singapore for
:05:13. > :05:20.us tell us more. The plot thickens. Tell us more. It
:05:21. > :05:27.does thicken as much as those legs on the wine glasses, I am presuming.
:05:28. > :05:30.It is reportedly TPG, the private equity firm, so it has not yet been
:05:31. > :05:35.confirmed. There is plenty of speculation out there, according to
:05:36. > :05:40.many analysts I have spoken with. This makes it an official bidding
:05:41. > :05:47.war against a rival which made the offer earlier this month with Rome
:05:48. > :05:49.Capital. We have seen shares in Treasury Wine Estates a leading on
:05:50. > :05:56.the stock exchange in Sydney, up over 2%. KKR offered over $3 billion
:05:57. > :06:03.for Treasury Wine and this offer is said to match that. We know Treasury
:06:04. > :06:07.Wine Estates owns big rams, including Lindeman's. It is the
:06:08. > :06:12.world's biggest listed winemaker. The firm has had a turbulent time in
:06:13. > :06:17.the last few years with a change in CEO. It is undergoing restructuring,
:06:18. > :06:24.which will see 200 job cuts as well as other cost cuts. Last year, we
:06:25. > :06:30.saw the group forced to destroy $30 million worth of an sellable wine,
:06:31. > :06:35.in a move as a result of disappointing US sales.
:06:36. > :06:38.Nonetheless, fairly strong with 385 million bottles of wine sold and
:06:39. > :06:45.recorded revenues of nearly $2 billion. This is why analysts see it
:06:46. > :06:51.is a goodbye and that is why it is being sought after by equity groups.
:06:52. > :06:53.Thank you very much Sharon, keeping us up to date.
:06:54. > :06:56.The United States heralded billions of dollars in new investments in
:06:57. > :06:59.Africa as Washington sought to demonstrate it is ready to take a
:07:00. > :07:02.strong role in the continent's economic development. But as America
:07:03. > :07:05.makes its move to play a leading role in Africa's growth story, that
:07:06. > :07:09.doesn't extend to many of those individuals who've left Africa to
:07:10. > :07:12.build a new life in the US. The cost of sending money to their families
:07:13. > :07:14.back home is high as financial institutions steer clear of money
:07:15. > :07:17.transfers that may expose them to accusations of financing terrorists.
:07:18. > :07:26.Samira Hussain reports from New York.
:07:27. > :07:32.In the heart of New York's west African neighbourhood, you will find
:07:33. > :07:40.the Senegal community. People come here to see this man, advising on
:07:41. > :07:44.finding apartments or getting work. Like many immigrants, he supports
:07:45. > :07:50.his family back in Senegal and sends money regularly. No matter what,
:07:51. > :07:57.even if you skip your rent here, it have to send it. I sent a minimum of
:07:58. > :08:05.between 550 ` 700 myself, that is the minimum. How often do I send it?
:08:06. > :08:11.Two or three times in a month. Not all of that money actually gets to
:08:12. > :08:17.his family. In 2013, Africa received 32 Indian dollars in remittances.
:08:18. > :08:25.That number is expected to increase to 40 billion x two to 16 `` $32
:08:26. > :08:31.billion. Around $12 in fees is taken for every $100 and `` $40 billion by
:08:32. > :08:35.2016. It is the hardest country in the world to send money to. But
:08:36. > :08:44.margins for remittances are low and with more anti` money laundering,
:08:45. > :08:47.banks are getting out of this altogether, leaving independent
:08:48. > :08:51.corporations out of the job and making it costly for Africa's Dyas
:08:52. > :08:56.Brutt. What has been the case is that banks hold accounts open for
:08:57. > :09:01.remittances and accommodate those bank account transactions ``
:09:02. > :09:05.diaspora. Those banks are being shut down because they perceive their
:09:06. > :09:11.clients to be of higher risk. Rather than coming up with ways to hands
:09:12. > :09:17.due diligence, they are opting to shut down, which is an easy way out
:09:18. > :09:22.to deal with this problem. For the people here in New York's Little
:09:23. > :09:26.Senegal, families at home depend on the money they send, making this a
:09:27. > :09:34.community that will pay the transfer fees no matter how costly they might
:09:35. > :09:37.be. Interesting perspective than that of
:09:38. > :09:47.those trying to live in the States, originally from Africa. We start on
:09:48. > :09:51.a strong note for markets in Japan and Hong Kong, following a rise on
:09:52. > :09:53.Wall Street. We will talk in detail about the swift moves in financial
:09:54. > :09:55.markets. about the swift moves in financial
:09:56. > :10:00.Those other currencies at the moment. The fact that things are
:10:01. > :10:01.easing seemingly in Ukraine has helped sentiment a little. I will
:10:02. > :10:23.see you soon. There's been a steep rise in the
:10:24. > :10:24.number of tractors, fuel