:00:00. > :00:00.Now for the latest financial news with Alice Baxter and World Business
:00:00. > :00:20.The winds of change could be on their way to the South China Sea
:00:21. > :00:23.today - a UN tribunal will today offer a ruling on the contested
:00:24. > :00:29.waterway that China claims is 90% theirs.
:00:30. > :00:32.And we get the skinny on the decision by one Indian state
:00:33. > :00:45.Will it lead to slimmer waists or just smaller profits?
:00:46. > :00:53.In a minute we'll be looking at the markets which have been
:00:54. > :00:55.having one of their best 24 hours in a while.
:00:56. > :00:59.After more than three years and numerous hearings,
:01:00. > :01:03.an international arbitration panel in The Hague is close
:01:04. > :01:07.to delivering its ruling on a contentious case over China's
:01:08. > :01:13.The case brought by the Philippines in 2013 and centres on China's
:01:14. > :01:19.territorial claims on about 90% of the South China Sea.
:01:20. > :01:23.Let's look at why it is so crucial for trade and just why today's
:01:24. > :01:30.Firstly, an estimated $5.3 trillion worth of trade passes
:01:31. > :01:40.So the Chinese stake in what happens is huge.
:01:41. > :01:46.The South China Sea is also thought to contain Billions of barrels
:01:47. > :01:55.of crude oil and up to 900 trillion cubic feet of natural gas.And China
:01:56. > :01:57.has already invested $20 billion to find out
:01:58. > :02:01.With me to discuss this is Peter Hinchliffe,
:02:02. > :02:10.Secretary General, International Chamber of Shipping.
:02:11. > :02:22.Five trillion dollars of global trade passes through this water
:02:23. > :02:27.passage - hugely important? 20% of the world trade is carried through
:02:28. > :02:34.their, free passage travelling through their and it is something we
:02:35. > :02:38.really need to defend. It is important for China, it in terms of
:02:39. > :02:44.the amount of goods that passes through it but some of the Aga
:02:45. > :02:54.cargo, all the domestic goods between Europe and the far east, all
:02:55. > :02:59.the oil from the Middle East to Japan, but China has already said it
:03:00. > :03:06.will not comply with the results of this hearing is so what is the point
:03:07. > :03:11.of what is going on today? They are trying to make sure they have new
:03:12. > :03:19.exportable areas for resource extraction. As far as shipping is
:03:20. > :03:24.concerned, we need to defend the freedom of navigation and so far
:03:25. > :03:30.China has not interfered with that right which is laid out in their UN
:03:31. > :03:35.Convention of the seas. But if China decides not to follow the ruling
:03:36. > :03:42.then perhaps there may be some impact on shipping and we will be
:03:43. > :03:46.watching that carefully. It is also an important stretch of water
:03:47. > :03:53.because of what lies beneath the water, in terms of resources. Do you
:03:54. > :04:00.believe that is the primary area of concern? That is China's primary
:04:01. > :04:08.concern stop they are important to the region and it is important as to
:04:09. > :04:14.who will be allowed to extract them. If the stats as quote is maintained,
:04:15. > :04:24.where does that leave shipping? As I said Reddy, China -- already, China
:04:25. > :04:27.has agreed not to interfere with the UN or laws.
:04:28. > :04:30.Malnutrition is still a major problem in India, so it's perhaps
:04:31. > :04:32.surprising that many Indians are overweight.
:04:33. > :04:36.In fact, obesity has become such a major concern that one state has
:04:37. > :04:39.now proposed a so-called fat tax of 14.5% on restaurants that sell
:04:40. > :04:45.fast food to try and make people more health conscious.
:04:46. > :04:48.But some wonder if it's the best approach.
:04:49. > :04:56.The BBC's Sameer Hashmi reports from Kochi in Kerala.
:04:57. > :05:04.Grabbing your favourite pizza or biting into a burger is about to get
:05:05. > :05:13.more expensive in these spot in India. 14.5% tax on fast food sold
:05:14. > :05:19.by restaurant fast chain foods. It is the so-called fat tax. Something
:05:20. > :05:27.already tried in places like Denmark. Reaction here has been
:05:28. > :05:32.mixed. I think it is the right move. When people are not taking care of
:05:33. > :05:41.their health, government is taking some initiative to help them go back
:05:42. > :05:47.to a healthy diet. Our do not think it is a good idea. I do not think so
:05:48. > :05:57.because they will still go out and get what they want. Kerala has the
:05:58. > :06:04.second-highest level of obesity in the country and they are using that
:06:05. > :06:13.reason to put the tax on chain restaurant. They hope higher prices
:06:14. > :06:21.will make them think twice. Popular local dishes like banana fried and
:06:22. > :06:24.others will not come under the new tax rules that means some are seen
:06:25. > :06:31.this as an attack on multinational food chains rather than obesity or
:06:32. > :06:37.other illnesses like diabetes. The government has defended the plan but
:06:38. > :06:43.many food experts think taxing food is not the right approach. I do not
:06:44. > :06:52.think it is the right way as far as health is concerned. At maximum it
:06:53. > :06:56.can fill the coffers of the government. The emphasis should be
:06:57. > :07:02.on awareness. People should be made aware of the side-effects of eating
:07:03. > :07:07.high calorie foods. Whether it is what they eat or a lifestyle that
:07:08. > :07:14.makes exercise, one in five Indians is now overweight or obese. With
:07:15. > :07:19.access to fast food still relatively new and many are seeing it as a
:07:20. > :07:23.status symbol, many will find this takes hard to swallow.
:07:24. > :07:25.Global shares have had a really great 24 hours
:07:26. > :07:31.The S 500 ended Monday on a record high while the FTSE 100 has risen
:07:32. > :07:34.to levels not seen since June of last year.
:07:35. > :07:38.Asia has also been on the up and we can cross to Singapore now
:07:39. > :07:44.Mariko Oi joins us with all the details?
:07:45. > :07:56.I know in the morning Tokyo expanded the global rally boosted by shares
:07:57. > :08:00.and banks. How is it looking now? We have two more hours of trading and
:08:01. > :08:05.they are still higher I almost 3%. It is extending the global rally but
:08:06. > :08:13.also on Monday the nick I was up by 4% and it is mainly because of the
:08:14. > :08:21.week is in the Japanese yen. -- the nick. Investors are hoping the
:08:22. > :08:26.government will roll out another stimulus package following the
:08:27. > :08:38.landslide victory by Shinzo Abe and his party. Shinzo Abe promising even
:08:39. > :08:41.more stimulus measures to kickstart the third biggest economy. Local
:08:42. > :08:50.media are saying that Y10 trillion are likely. But some numbers
:08:51. > :08:56.doubling back? The official line is that the amount has not yet been
:08:57. > :09:02.decided. The economy minister said his taking into account all the
:09:03. > :09:08.uncertainty caused by the UK voting to leave the EU. Also, we have the
:09:09. > :09:15.bank of Japan meeting in several weeks. One analyst said that,
:09:16. > :09:25.despite all the hype around economics and how great it has been,
:09:26. > :09:38.we will see if they would will extend the stimulus measures. Thank
:09:39. > :09:43.you. US officials refused to prosecute HSBC for money laundering
:09:44. > :09:48.in 2012 because of concerns it would cause a global financial disaster.
:09:49. > :09:52.That is the verdict of a US congressional report which is also
:09:53. > :09:58.accused Eric Holder of misleading Congress about the decision.
:09:59. > :10:05.Violating US sanctions and allowing drug cartels to launder funds. The
:10:06. > :10:16.band point settlement -- are paid a settlement but did not face legal
:10:17. > :10:19.charges. We will be back to look through the papers in just a moment.