11/08/2014 World Business Report

BBC World News. Time now for the latest financial

news in World Business Report. Europe counts the cost of sanctions

as Russia's ban on food imports start to bite.

As America demonstrates it wants to play a leading role in Africa's

growth story, what about those who've left Africa to build a new

life in the US? Welcome to World Business Report.

I'm Sally Bundock. Also in the programme: Is a bidding

war about to start to win the world's number two winemaker? We'll

have the details. A task force is being set up by

European officials to analyse the impact of the Russian ban on EU food

imports. Moscow has banned most food imports from the West in retaliation

for US and EU sanctions imposed over Russia's actions in Ukraine. Let's

look at some figures. European Commission figures from last year

indicate that EU food exports to Russia last year were worth 11.8

billion euros. In dollars, that's $15.8 billion. While US food exports

to Russia are worth 972 million euros, about $1.3 billion. And, last

year Russia was the EU's second`biggest market for food

exports, 10% of total after the US, which is13%. `` is 13%.

I'm joined by Peter Kendall, chair of the Agriculture and Horticulture

Development Board and former National Farmers' Union president.

Thanks for being on the programme. As the EU's agriculture commissioner

establishes a task force, I know they will get into discussions later

in Brussels. What are you think they will try to tackle in terms of this?

Exports to Russia are banned. It is important that farmers understand

this is big global politics. Nearly 300 people killed when an aeroplane

came down. To put this as how it impacts farmers, we realise and we

have to knuckle down and work out the impact which is why we are

pleased to the commission is looking at the details about what is means

for agricultural markets. They have a crisis fund, meaning they can have

some funding to remedy the problems. You mentioned the big monetary

values. 1 million tons of dairy products that Russia imports,

300,000 tons come from the EU. The EU dairy markets are already

depressed. Taking a market that takes 300,000 tons of dairy products

from the EU and finding markets elsewhere in the world, bearing in

mind Australia and the US are already included in those bands as

well, this could have very damaging impact on those dairy markets and

horticulture markets are very similar `` bans. What are you

looking to the EU to do in terms of help and support? We don't know how

long the sanctions will last. The farming organisations will

represent. Farmers will go to government and tell them what they

need to do. The organisation you said that a chair, our job is to

make sure we understand what the numbers mean. The UK is a very small

exporter to Russia. It is the ripple effect. You throw a brick in the

pond and it ripples out. The country is next to Russia are big exporters

to Russia. It means the EU market will be oversupplied `` the European

market. I mention dairy and horticulture, we need to understand,

the organisation I chair, what that means to market so that

organisations that bat on behalf of farmers can say to the government it

is more serious than they think. Say to the EU that it will damage

confidence. My organisation wants to make sure that we grow the UK

agricultural industry so that farmers have the confidence to

invest. They want to make sure the government puts right how the

farming industry is becoming the unintended consequence of these

global sanctions. Peter Kendall, for now, we appreciate your time.

Interesting perspective. Just to say, as the discussions in the EU

progress throughout the week, we will keep you up`to`date here on BBC

World News. Now, a rival has entered the fray in

a bid to win Australia's Treasury Wine Estates. The world's number two

winemaker has received a second takeover offer worth more than $3

billion from a private equity firm. Sharanjit Leyl is in Singapore for

us tell us more. The plot thickens. Tell us more. It

does thicken as much as those legs on the wine glasses, I am presuming.

It is reportedly TPG, the private equity firm, so it has not yet been

confirmed. There is plenty of speculation out there, according to

many analysts I have spoken with. This makes it an official bidding

war against a rival which made the offer earlier this month with Rome

Capital. We have seen shares in Treasury Wine Estates a leading on

the stock exchange in Sydney, up over 2%. KKR offered over $3 billion

for Treasury Wine and this offer is said to match that. We know Treasury

Wine Estates owns big rams, including Lindeman's. It is the

world's biggest listed winemaker. The firm has had a turbulent time in

the last few years with a change in CEO. It is undergoing restructuring,

which will see 200 job cuts as well as other cost cuts. Last year, we

saw the group forced to destroy $30 million worth of an sellable wine,

in a move as a result of disappointing US sales.

Nonetheless, fairly strong with 385 million bottles of wine sold and

recorded revenues of nearly $2 billion. This is why analysts see it

is a goodbye and that is why it is being sought after by equity groups.

Thank you very much Sharon, keeping us up to date.

The United States heralded billions of dollars in new investments in

Africa as Washington sought to demonstrate it is ready to take a

strong role in the continent's economic development. But as America

makes its move to play a leading role in Africa's growth story, that

doesn't extend to many of those individuals who've left Africa to

build a new life in the US. The cost of sending money to their families

back home is high as financial institutions steer clear of money

transfers that may expose them to accusations of financing terrorists.

Samira Hussain reports from New York.

In the heart of New York's west African neighbourhood, you will find

the Senegal community. People come here to see this man, advising on

finding apartments or getting work. Like many immigrants, he supports

his family back in Senegal and sends money regularly. No matter what,

even if you skip your rent here, it have to send it. I sent a minimum of

between 550 ` 700 myself, that is the minimum. How often do I send it?

Two or three times in a month. Not all of that money actually gets to

his family. In 2013, Africa received 32 Indian dollars in remittances.

That number is expected to increase to 40 billion x two to 16 `` $32

billion. Around $12 in fees is taken for every $100 and `` $40 billion by

2016. It is the hardest country in the world to send money to. But

margins for remittances are low and with more anti` money laundering,

banks are getting out of this altogether, leaving independent

corporations out of the job and making it costly for Africa's Dyas

Brutt. What has been the case is that banks hold accounts open for

remittances and accommodate those bank account transactions ``

diaspora. Those banks are being shut down because they perceive their

clients to be of higher risk. Rather than coming up with ways to hands

due diligence, they are opting to shut down, which is an easy way out

to deal with this problem. For the people here in New York's Little

Senegal, families at home depend on the money they send, making this a

community that will pay the transfer fees no matter how costly they might

be. Interesting perspective than that of

those trying to live in the States, originally from Africa. We start on

a strong note for markets in Japan and Hong Kong, following a rise on

Wall Street. We will talk in detail about the swift moves in financial

markets. about the swift moves in financial

Those other currencies at the moment. The fact that things are

easing seemingly in Ukraine has helped sentiment a little. I will

see you soon. There's been a steep rise in the

number of tractors, fuel