01/09/2016 BBC Business Live


01/09/2016

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British Airways resumes flights to Iran for the first

:00:00.:00:00.

But can it really become a global tourist hotspot?

:00:00.:00:09.

Live from London, that's our top story on Thursday

:00:10.:00:11.

Today we find out how attractive flights to Iran will be.

:00:12.:00:43.

Plus - looking for new friends in Africa -

:00:44.:00:46.

Facebook founder Mark Zuckerberg tells us about his plans to sign up

:00:47.:00:49.

The European markets have bounced a bit higher today. We have the latest

:00:50.:01:00.

from the app boss about what he thinks about the European

:01:01.:01:03.

Commission's decision that they will have to basic dividend sums to the

:01:04.:01:07.

Irish government, he says it is maddening and political -- from the

:01:08.:01:10.

Apple boss. How do you handle logistics

:01:11.:01:16.

for events like Davos? Coming up, we meet the man

:01:17.:01:18.

responsible for getting the world's "thinking elite" together at events

:01:19.:01:21.

all around the world. And is Iran on your travel to-do

:01:22.:01:24.

list? We start in Iran -

:01:25.:01:28.

because later this evening the first British Airways flight in almost

:01:29.:01:42.

a decade leaves Heathrow The UK Foreign Office

:01:43.:01:44.

relaxed its travel advice to Iran last July, citing "decreasing

:01:45.:01:51.

hostility under President Rouhani's government" - raising

:01:52.:01:56.

hopes of a boom in both Relations with Iran have thawed,

:01:57.:01:58.

following the implementation of the nuclear deal,

:01:59.:02:05.

and the lifting of US sanctions The Iranian authorities are keen

:02:06.:02:08.

to grow the number of foreign visitors to the country as a much

:02:09.:02:18.

needed source of hard currency. Earlier this year Iran set a target

:02:19.:02:24.

of 20 million tourists a year by 2025 potentially earning

:02:25.:02:31.

the country revenues The gist ago issues and a culture

:02:32.:02:33.

clash. -- logistical issues. Women are expected to conform

:02:34.:02:49.

to local customs like wearing a headscarf - and in

:02:50.:02:51.

some areas full hijab. And few businesses like tour

:02:52.:02:53.

operators and hotels can accept With me is Amir Paivar

:02:54.:02:55.

from the BBC's Persian Service. The Victoria talking us through the

:02:56.:03:08.

challenges, and they also have big ambitions, they want to see 20

:03:09.:03:13.

million in terms of tourists every year by 2025, is that realistic? It

:03:14.:03:20.

is a very attractive destination as a destination for cultural tourism.

:03:21.:03:33.

Women do head to cover their heads, a small light headscarf will

:03:34.:03:37.

suffice, but still. It has a very diverse geography, deserts,

:03:38.:03:43.

mountains, lakes, some of it as lush as the UK, and also amazing history.

:03:44.:03:49.

The attraction is there, but the problem is, the infrastructure.

:03:50.:03:55.

many new hotels and they are already many new hotels and they are already

:03:56.:03:59.

on the job, one of the fastest-growing sectors in the

:04:00.:04:04.

country after the sanctions were lifted, and there is also the

:04:05.:04:07.

question of domestic flights. Not enough of them. Iran has been

:04:08.:04:12.

suffering from sanctions and has not been able to purchase new jets. The

:04:13.:04:24.

orders are in. Yes, but with the banking sector, there are problems.

:04:25.:04:28.

It is also a question of services in general. All of those have two

:04:29.:04:33.

improved quite significantly in order to cater to that ambitious

:04:34.:04:41.

target. A key problem, for those travelling business travellers who

:04:42.:04:48.

travelled to the United States or Americans citizens, they will have

:04:49.:04:53.

issues in terms of the US Visa situation. That is right, a few

:04:54.:05:01.

months now, a British person does not need a Visa to travel to the

:05:02.:05:06.

United States, but if you travel to Iran, which the US still thinks is a

:05:07.:05:14.

place which has linked to terrorism, then even as a British person or the

:05:15.:05:22.

European, you will need to apply for visas and that will be a problematic

:05:23.:05:27.

thing for people who travel a lot on business, and it will be a turn-off

:05:28.:05:32.

that will put off people from applying for visas and going to

:05:33.:05:38.

Iran. Thanks for joining us. Very interesting developments. Much more

:05:39.:05:45.

information on that on our website. We have a story developing this

:05:46.:05:49.

morning, this regard is Apple and the row over tax, the chief

:05:50.:05:54.

executive Tim Cook has described the ruling that the firm should pay back

:05:55.:05:58.

?11 billion worth of back taxes to the Irish government as political

:05:59.:06:03.

and unfair and he also said it is maddening. This is his first

:06:04.:06:07.

broadcast interview and he said Apple was outraged to be associated

:06:08.:06:12.

with either legality and challenged the calculation stash with

:06:13.:06:20.

illegality. This is his first broadcast. We can listen to what he

:06:21.:06:28.

had to say. Can I ask direct questions, were you given deals

:06:29.:06:32.

which were only available to Apple and word available to any other

:06:33.:06:39.

companies? -- word. No, not a single time. Were you treated differently

:06:40.:06:44.

to everyone else, were you given special treatment? Sweetheart deals?

:06:45.:06:53.

No, never. The European Commission said yesterday, the Commissioner, he

:06:54.:06:59.

said in 2014 Apple paid an effective corporate tax rate of just 0.005%,

:07:00.:07:10.

that is 50 euros out of every 1 million euros profit you made it one

:07:11.:07:15.

of your subsidiaries, do you accept this? No, this is a false number,

:07:16.:07:21.

and I've no idea where the number came from. It is not true. He is the

:07:22.:07:30.

truth, in that year we paid $400 million to Ireland and that amount

:07:31.:07:36.

of money was based on the statutory Irish income tax rate of 12.5%. That

:07:37.:07:46.

was the voice of Tim Cook. The chief executive of Apple speaking to the

:07:47.:07:51.

Irish broadcaster RTP. He is coming out fighting. No surprise that Tim

:07:52.:07:58.

Cook is angry, this ruling by the European Commission cuts to the

:07:59.:08:03.

heart of their tax strategy and he is questioning the commission's

:08:04.:08:05.

interpretation of the facts for a start. Although given the length of

:08:06.:08:11.

the time the commission have been working on this, they will be sure

:08:12.:08:15.

of their ground, as well. Apple has little choice, it is an expensive

:08:16.:08:21.

bill, and this ruling questions whether in the future it will be

:08:22.:08:24.

able to draw up individual tax deals with individual countries because

:08:25.:08:29.

the certainty that Davis, you have a letter from the government which

:08:30.:08:33.

says this tax deal is fine and then a few years later and international

:08:34.:08:37.

body says no it isn't and you have got to pay that money back, that

:08:38.:08:41.

cuts to the heart of the tax planning and it is no surprise that

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this has happened. Almost impossible to overstate the management of this

:08:48.:08:50.

story, because this is potentially likely to overshadow US elections

:08:51.:08:57.

and the product launch next week for Apple and it will be a huge debt in

:08:58.:09:02.

their finances. It is not just about Apple, the European Commission has

:09:03.:09:06.

been investigating Google, and isn't not just about European companies --

:09:07.:09:11.

and it isn't just about American companies. Fiat has also been

:09:12.:09:17.

tackled by the commission over its deals with the European government,

:09:18.:09:21.

but the number of European Commissioners have said this is a

:09:22.:09:24.

watershed moment because what the commission is doing is saying that

:09:25.:09:30.

governments are not doing enough to assess the way multinational

:09:31.:09:36.

companies are paying tax, and they have chosen a strategy which tackles

:09:37.:09:39.

them on the ground and says we are not going to put up with this and we

:09:40.:09:43.

are going to use every two to make these companies paid tax -- every

:09:44.:09:48.

tool. Companies said they do everything by the book and by the

:09:49.:09:53.

law and they pay or the taxpayer oh, this is what they say. -- they pay

:09:54.:10:01.

all the tax they owe. We have more about that on the website.

:10:02.:10:09.

Let's go to Asia now, where Canada has been trying

:10:10.:10:11.

to strengthen trade ties with China, its biggest business

:10:12.:10:13.

The Canadian prime minister Justin Trudeau has announced plans to join

:10:14.:10:17.

what's been billed China's version of the World Bank,

:10:18.:10:19.

known as the Asian Infrastructure Investment Bank.

:10:20.:10:21.

It's the same institution the US recently refused to join.

:10:22.:10:23.

This is a political readiness to strengthen ties? Yes, it is

:10:24.:10:36.

interesting, Canada has applied to join and it is the first North

:10:37.:10:40.

American country which has sought membership of the China lead bank

:10:41.:10:47.

and the move was confirmed by the Canadian Prime Minister Justin

:10:48.:10:50.

Trudeau, who is in Beijing on an official visit to boost ties. The

:10:51.:10:57.

China lead bank is a new international development bank and

:10:58.:11:02.

it marks China's most ambitious steps into financial diplomacy and

:11:03.:11:07.

global governance. The Chinese government is seeing Canada's

:11:08.:11:13.

application as a vote of confidence, especially as they tried to convince

:11:14.:11:24.

Washington. They say it will create good jobs and global economic

:11:25.:11:27.

growth. This was initially opposed by the United States but it has

:11:28.:11:34.

attracted many American allies including Britain, Australia and

:11:35.:11:34.

Germany. Thanks for joining us. And now to the Asian markets. Not

:11:35.:11:40.

much has been done to lift spirits. Asian shares dipped on Thursday -

:11:41.:11:52.

lower crude oil prices dented Wall Street and a pair of Chinese

:11:53.:11:54.

manufacturing surveys did little to inspire investors

:11:55.:11:57.

as markets waited to see if US employment data could put

:11:58.:11:59.

the Federal Reserve on track Bounce higher for

:12:00.:12:02.

European equities today. Lets hear what's ahead

:12:03.:12:04.

on Wall Street today. Car sales have helped drive America

:12:05.:12:08.

since the financial crisis, but new car sales have begun slipping in

:12:09.:12:10.

recent months suggesting the boom might be overcome and the latest

:12:11.:12:13.

sales report from global car-makers this Thursday is likely to confirm

:12:14.:12:19.

this. The researcher is forecasting a 2.5% drop from a year ago. But it

:12:20.:12:24.

is not all doom and gloom, the US car industry is still on track to

:12:25.:12:27.

set a new sales record for the entire year. We will also have a

:12:28.:12:33.

look at how manufacturing is doing because it has been slower to pick

:12:34.:12:37.

up in other parts of the economy and investors expect the latest report

:12:38.:12:42.

to show that factory activity slowed down in August. Will that give

:12:43.:12:48.

Federal Reserve officials a pause whether they consider whether to

:12:49.:12:52.

raise interest rates in September? I feel with -- that is all we talk

:12:53.:13:04.

about in this particular area. We have been talking about rates and

:13:05.:13:08.

the payroll figures out. That is overshadowing the markets. And also

:13:09.:13:13.

the Chinese data, surprisingly good, but hardly anyone touching on it.

:13:14.:13:18.

That is the we are so used Chinese data being terrible, and we... We

:13:19.:13:26.

say it is terrible, but sometimes it is not that terrible. The markets

:13:27.:13:30.

react and they already down before the numbers have been released, but

:13:31.:13:35.

these numbers are good out of China. You have got to pick up on the good

:13:36.:13:41.

numbers from China, the world's second-largest economy, it drags

:13:42.:13:44.

everything down when we have bad numbers, and today we have good

:13:45.:13:47.

numbers but we are seeing that come into the markets, but there is no

:13:48.:13:51.

volume out there at the moment. The other thing the markets are

:13:52.:13:55.

struggling with, low interest rates. The story in the Financial Times,

:13:56.:14:00.

Asia clamouring because they are looking for any kind of return, and

:14:01.:14:05.

Saudi Arabia are looking to boost their bond sale as a result, people

:14:06.:14:10.

are chasing yield. This could be one of the biggest bond sales ever, this

:14:11.:14:14.

is a norm is, they are looking to sell $15 billion worth of bonds --

:14:15.:14:20.

this is enormous. They are massively over subscribed. One of the reasons

:14:21.:14:29.

for them doing this is because of the oil price, which has fallen

:14:30.:14:35.

quite aggressively. We can't rely on the oil price anywhere above $50 at

:14:36.:14:40.

the moment and it seems that we get $10 swings within a couple of days

:14:41.:14:44.

at the moment, and the Saudis do not want to be so reliant on the oil

:14:45.:14:49.

stockpiles, and it looks like Babel raise a lot of money when this

:14:50.:14:53.

happens, -- and it looks like they will raise a lot of money when this

:14:54.:14:57.

happens. There are billions and billions of dollars heading to the

:14:58.:15:03.

Saudis. The other big story of the week, Apple and the European

:15:04.:15:07.

Commission, going after the taxes it is supposedly owing and Tim Cook has

:15:08.:15:17.

seemed very hacked. Not surprisingly.

:15:18.:15:23.

He suddenly has a 13 billion euros will pay up. We know the tax

:15:24.:15:32.

situation for the likes of Apple and Google has been a global issue for a

:15:33.:15:35.

long time, and it was only a matter of time before this happened. It

:15:36.:15:39.

will be interesting to see how this fits the share price. It overshadows

:15:40.:15:52.

the iPhone announcement. Thank you, James. Still to come we are going to

:15:53.:16:00.

meet the man with one of the most impressive contact Bucks in the

:16:01.:16:02.

business. Richard Attias is behind events

:16:03.:16:05.

as diverse as Davos, peace summits, You're with Business

:16:06.:16:08.

Live from BBC News. We have to talk about football. It

:16:09.:16:15.

has been another record-breaker. The Premier League's summer transfer

:16:16.:16:19.

window has slammed shut, and spending has surpassed ?1bn

:16:20.:16:21.

for the first time as clubs scramble to outspend each other

:16:22.:16:24.

to secure the best players. Manchester United sealed

:16:25.:16:26.

by far the biggest deal, spending a world record ?89m

:16:27.:16:32.

on securing Paul Pogba. We can speak to Omar Chaudhuri,

:16:33.:16:39.

Head of Football Intelligence Omar, is it really that

:16:40.:16:41.

surprising that huge amounts are being spent on players

:16:42.:16:45.

when clubs are richer than ever? Not really. If you look at inflation

:16:46.:16:58.

in revenues of the last few years, particularly from the last domestic

:16:59.:17:05.

TV deal, which went up to ?5 billion over the next three years, Premier

:17:06.:17:09.

League clubs are earning more than they ever have. If you look at the

:17:10.:17:12.

proportion of transfer fees relative to that revenue, it is more and line

:17:13.:17:17.

with what we have seen historically, perhaps even less. Although the

:17:18.:17:20.

headline figure is large, it is not surprising that clubs are spending

:17:21.:17:26.

this much money now. In terms of where this will end, every year

:17:27.:17:29.

there is a debate about how much footballers are paid. It seems to be

:17:30.:17:36.

endless. There is no cap, despite the argument that they are massively

:17:37.:17:41.

overpaid. They are paid a lot of money. You have to consider the

:17:42.:17:47.

context. Football clubs are unlike any other business. It is rare in

:17:48.:17:51.

business that such a material part of the business depends on a few

:17:52.:17:58.

individuals. If clubs lost their star players, they would be

:17:59.:18:02.

considerably worse. That is unlike a bank or any other company. People

:18:03.:18:07.

are willing to pay to watch them. The grounds of the Premier League

:18:08.:18:11.

are largely sold out and there is a worldwide audience bigger than any

:18:12.:18:13.

other league in the world. Although the headline figures look back, they

:18:14.:18:18.

are in proportion to the value of those players to the teams, and

:18:19.:18:28.

revenues, which have gone up. Moron the business live page for that

:18:29.:18:34.

story. We have been # More on the business live page for

:18:35.:18:36.

that story. British Airways is resuming flights

:18:37.:19:05.

to Iran for the first time in almost a decade.

:19:06.:19:05.

A quick look at how markets are faring.

:19:06.:19:10.

The oil price is up, helping energy companies. Markets are treading

:19:11.:19:19.

water ahead of Friday's News from the US, as interest rates there

:19:20.:19:28.

might increase. Let's get the inside track.

:19:29.:19:35.

In the '90s, Richard Attias met a German economics

:19:36.:19:38.

scholar named Klaus Schwab, the founder of the World

:19:39.:19:49.

Developing the largest global meetings of world leaders.

:19:50.:19:55.

In the '90s, Richard Attias met a German economics

:19:56.:19:57.

scholar named Klaus Schwab, the founder of the World

:19:58.:19:59.

He hired Mr Attias to handle logistics for Davos

:20:00.:20:03.

Other gatherings he's been behind are: the Clinton Global Initiative,

:20:04.:20:08.

the Middle East Peace Summit in Jordan, and the launch

:20:09.:20:11.

Attias is also the founder and chairman of the New York Forum,

:20:12.:20:17.

an annual invitation-only forum for global CEOs, economists

:20:18.:20:19.

and business leaders to share ideas and provide recommendations

:20:20.:20:23.

for new business models in a post-crisis world.

:20:24.:20:34.

He is with as in the studio. He managed to squeeze our sin. Thank

:20:35.:20:41.

you for joining us. Your brief is huge. There is so much that you

:20:42.:20:45.

cover of these big events, but tell us how you got into it. How do you

:20:46.:20:51.

become someone who organises Davos and other big events? I was a civil

:20:52.:20:57.

engineer, so I should have been building bridges and buildings, but

:20:58.:21:02.

I had the privilege to be born in Morocco, an Arab Muslim country. I

:21:03.:21:10.

am Jewish, and I was surrounded by people who were religious. It is

:21:11.:21:15.

important to talk about that today. I am someone who believes

:21:16.:21:19.

intolerance, in dialogue, and at the end of the day, the weighted solve

:21:20.:21:29.

the issue is the world is facing is to put people together. We are

:21:30.:21:32.

living in a socially networked world today, but nothing is better than

:21:33.:21:36.

putting people together. That is why this gathering of people is

:21:37.:21:41.

important to have a better understanding of who people are, in

:21:42.:21:45.

countries are, who compilations are. It is important to put people

:21:46.:21:55.

together. -- who corporations. Today we are talking about Donald Trump's

:21:56.:21:59.

speech and this wall he is going to build between North America and

:22:00.:22:04.

Mexico. We have a UK leaving the EU. It seems to be more about division

:22:05.:22:10.

today as opposed to collaboration. It is about understanding. There is

:22:11.:22:17.

a Chinese proverb that talks about people building more balls than

:22:18.:22:22.

bridges. These conferences are important. This is why we are trying

:22:23.:22:28.

to explain to people who countries are, who people are. You start with

:22:29.:22:34.

the British Airways flights going to Iran. I think it makes a lot of

:22:35.:22:41.

sense, because there is one which bite-mac thing which is the

:22:42.:22:44.

political aspect of Iran, but there also the people. The same story in

:22:45.:22:46.

Africa. There are a lot of countries Africa. There are a lot of countries

:22:47.:22:53.

that are not politically correct, are not democracies, but the people

:22:54.:22:59.

of these countries are very open to start relationships with Western

:23:00.:23:02.

countries. They want to take the best ask, I would say. This is why

:23:03.:23:09.

it is not to isolate countries and to brand them. Brand them with what

:23:10.:23:15.

they have cinema their assets, their people. That is your primary

:23:16.:23:19.

objective, the branding of Nations, isn't it? Do you think Iran suffers

:23:20.:23:24.

from a perception problem? Perception is important. The same

:23:25.:23:28.

thing in the UK after Brexit. We are trying to work on branding a nation,

:23:29.:23:33.

to change the perception. This is what we're to do in a few days. ...

:23:34.:23:40.

This is what we're trying to do. In a few days, we will in Argentina.

:23:41.:23:45.

The perception, which is sometimes right, is that these South American

:23:46.:23:52.

countries are corrupted. Not easy rule of law, not easy to do

:23:53.:23:57.

business. We will try to change this perception by presenting Argentina

:23:58.:24:02.

as it will be in the future, with new leadership. It has been great to

:24:03.:24:07.

have you. I wish we could talk for longer. Time is not on our site. See

:24:08.:24:11.

you next time. That is it from Business Live today. More tomorrow.

:24:12.:24:18.

See you soon. Apparently not! We have loads more time!

:24:19.:24:26.

To Nigeria now where the founder of Facebook, Mark Zuckerberg,

:24:27.:24:28.

has been making his first trip to Africa this week.

:24:29.:24:31.

The billionaire has defended Facebook's decision to continue

:24:32.:24:42.

There are 1 billion people in Africa, and I wanted to listen and

:24:43.:24:48.

learn and figure out what we could do to empower people to build the

:24:49.:24:53.

types of services that are not only improving lives of people here but

:24:54.:24:56.

all around the world. How will you improve internet

:24:57.:25:00.

access? There was controversy when you did it in India. It is a 3-step

:25:01.:25:06.

plan. First, we need to make sure there is network access everywhere.

:25:07.:25:10.

In some places there is a good cellphone signal, so we're launching

:25:11.:25:15.

satellites to beam down internet, or we are looking at solar powered

:25:16.:25:20.

planes to fly over rural areas. I think that is it. We squeezed in a

:25:21.:25:25.

lot today. Thank you for your time, and do join us tomorrow. Same time,

:25:26.:25:27.

same place. Goodbye. Hello. Some nice weather for most of

:25:28.:25:51.

us

:25:52.:25:52.

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