12/07/2016 World Business Report

Now for the latest financial news with Alice Baxter and World Business

The winds of change could be on their way to the South China Sea

today - a UN tribunal will today offer a ruling on the contested

waterway that China claims is 90% theirs.

And we get the skinny on the decision by one Indian state

Will it lead to slimmer waists or just smaller profits?

In a minute we'll be looking at the markets which have been

having one of their best 24 hours in a while.

After more than three years and numerous hearings,

an international arbitration panel in The Hague is close

to delivering its ruling on a contentious case over China's

The case brought by the Philippines in 2013 and centres on China's

territorial claims on about 90% of the South China Sea.

Let's look at why it is so crucial for trade and just why today's

Firstly, an estimated $5.3 trillion worth of trade passes

So the Chinese stake in what happens is huge.

The South China Sea is also thought to contain Billions of barrels

of crude oil and up to 900 trillion cubic feet of natural gas.And China

has already invested $20 billion to find out

With me to discuss this is Peter Hinchliffe,

Secretary General, International Chamber of Shipping.

Five trillion dollars of global trade passes through this water

passage - hugely important? 20% of the world trade is carried through

their, free passage travelling through their and it is something we

really need to defend. It is important for China, it in terms of

the amount of goods that passes through it but some of the Aga

cargo, all the domestic goods between Europe and the far east, all

the oil from the Middle East to Japan, but China has already said it

will not comply with the results of this hearing is so what is the point

of what is going on today? They are trying to make sure they have new

exportable areas for resource extraction. As far as shipping is

concerned, we need to defend the freedom of navigation and so far

China has not interfered with that right which is laid out in their UN

Convention of the seas. But if China decides not to follow the ruling

then perhaps there may be some impact on shipping and we will be

watching that carefully. It is also an important stretch of water

because of what lies beneath the water, in terms of resources. Do you

believe that is the primary area of concern? That is China's primary

concern stop they are important to the region and it is important as to

who will be allowed to extract them. If the stats as quote is maintained,

where does that leave shipping? As I said Reddy, China -- already, China

has agreed not to interfere with the UN or laws.

Malnutrition is still a major problem in India, so it's perhaps

surprising that many Indians are overweight.

In fact, obesity has become such a major concern that one state has

now proposed a so-called fat tax of 14.5% on restaurants that sell

fast food to try and make people more health conscious.

But some wonder if it's the best approach.

The BBC's Sameer Hashmi reports from Kochi in Kerala.

Grabbing your favourite pizza or biting into a burger is about to get

more expensive in these spot in India. 14.5% tax on fast food sold

by restaurant fast chain foods. It is the so-called fat tax. Something

already tried in places like Denmark. Reaction here has been

mixed. I think it is the right move. When people are not taking care of

their health, government is taking some initiative to help them go back

to a healthy diet. Our do not think it is a good idea. I do not think so

because they will still go out and get what they want. Kerala has the

second-highest level of obesity in the country and they are using that

reason to put the tax on chain restaurant. They hope higher prices

will make them think twice. Popular local dishes like banana fried and

others will not come under the new tax rules that means some are seen

this as an attack on multinational food chains rather than obesity or

other illnesses like diabetes. The government has defended the plan but

many food experts think taxing food is not the right approach. I do not

think it is the right way as far as health is concerned. At maximum it

can fill the coffers of the government. The emphasis should be

on awareness. People should be made aware of the side-effects of eating

high calorie foods. Whether it is what they eat or a lifestyle that

makes exercise, one in five Indians is now overweight or obese. With

access to fast food still relatively new and many are seeing it as a

status symbol, many will find this takes hard to swallow.

Global shares have had a really great 24 hours

The S 500 ended Monday on a record high while the FTSE 100 has risen

to levels not seen since June of last year.

Asia has also been on the up and we can cross to Singapore now

Mariko Oi joins us with all the details?

I know in the morning Tokyo expanded the global rally boosted by shares

and banks. How is it looking now? We have two more hours of trading and

they are still higher I almost 3%. It is extending the global rally but

also on Monday the nick I was up by 4% and it is mainly because of the

week is in the Japanese yen. -- the nick. Investors are hoping the

government will roll out another stimulus package following the

landslide victory by Shinzo Abe and his party. Shinzo Abe promising even

more stimulus measures to kickstart the third biggest economy. Local

media are saying that Y10 trillion are likely. But some numbers

doubling back? The official line is that the amount has not yet been

decided. The economy minister said his taking into account all the

uncertainty caused by the UK voting to leave the EU. Also, we have the

bank of Japan meeting in several weeks. One analyst said that,

despite all the hype around economics and how great it has been,

we will see if they would will extend the stimulus measures. Thank

you. US officials refused to prosecute HSBC for money laundering

in 2012 because of concerns it would cause a global financial disaster.

That is the verdict of a US congressional report which is also

accused Eric Holder of misleading Congress about the decision.

Violating US sanctions and allowing drug cartels to launder funds. The

band point settlement -- are paid a settlement but did not face legal

charges. We will be back to look through the papers in just a moment.