Browse content similar to 12/04/2016. Check below for episodes and series from the same categories and more!
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Now for the latest financial news with | :00:00. | :00:00. | |
The European Union outlines new proposals forcing companies | :00:00. | :00:17. | |
to come clean on exactly where they make their profits. | :00:18. | :00:24. | |
More evidence of slowing global growth with aluminium giant Alcoa | :00:25. | :00:26. | |
Also in the programme, we'll hear about the rice heavy diet | :00:27. | :00:46. | |
of Singapore's foreign construction workers that is affecting | :00:47. | :00:48. | |
Plans to force corporate giants to disclose more about | :00:49. | :00:54. | |
their tax affairs will be unveiled by the European Union later today. | :00:55. | :01:00. | |
Even before the leak of the Panama papers, which shone a spotlight | :01:01. | :01:03. | |
on tax avoidance globally, the European Commission was forming an | :01:04. | :01:06. | |
agenda for more transparent rules when it comes to corporation tax. | :01:07. | :01:10. | |
Avoidance currently costs the EU between $60-$80 million dollars | :01:11. | :01:12. | |
That's big bucks when many EU countries are battling with | :01:13. | :01:16. | |
So, in new proposed rules, big companies, that is, those that | :01:17. | :01:28. | |
earn over $850 million dollars annually, will have to publish | :01:29. | :01:30. | |
their income and tax reports from whichever EU country they operate | :01:31. | :01:33. | |
This will cover 6,500 companies globally, | :01:34. | :01:43. | |
including the likes of big US names such as Apple, Amazon and Google. | :01:44. | :01:55. | |
But tax transparency campaigners say the rules won't go far enough. | :01:56. | :01:58. | |
They argue tax havens should also fall under the new rules, with data | :01:59. | :02:01. | |
from outside the EU to be published on a country-by-country basis. | :02:02. | :02:04. | |
There probably wouldn't have been attention paid to the EU | :02:05. | :02:23. | |
Commission's proposal to get multinational companies to publish | :02:24. | :02:26. | |
profits and tax bills and make them available to the public at the | :02:27. | :02:31. | |
so-called Panama Papers scandal, which exposed the extent of the use | :02:32. | :02:35. | |
of offshore tax havens, has given the legislation a real boost. If | :02:36. | :02:39. | |
passed the law will mean multinationals operating within the | :02:40. | :02:44. | |
EU will have to publish their profits and paid within the EU | :02:45. | :02:47. | |
country EU country by country as part of the commission's efforts to | :02:48. | :02:53. | |
ensure companies do not skimp on their taxes. Transparency | :02:54. | :02:55. | |
campaigners say the law does not go far enough as it does not require | :02:56. | :02:59. | |
companies to publish country by country data on profits made outside | :03:00. | :03:05. | |
the EU. Of course it wouldn't become law overnight. EU governments will | :03:06. | :03:08. | |
have to agree to it and it will have to get through the European | :03:09. | :03:17. | |
Parliament. When rules are announced later today, we will update you. | :03:18. | :03:20. | |
The US earnings season has kicked off, with aluminium giant Alcoa | :03:21. | :03:23. | |
And its not good at all, confirming fears that demand remains | :03:24. | :03:27. | |
soft for building and heavy construction materials. | :03:28. | :03:28. | |
Alcoa posted a first-quarter net profit of $16 million. | :03:29. | :03:31. | |
That's down a whopping 92% from a year earlier. | :03:32. | :03:33. | |
The company is also considering shedding another 1,000 jobs. | :03:34. | :03:35. | |
Alcoa also lowered its 2016 outlook for global sales in the aerospace | :03:36. | :03:38. | |
industry, and its shares fell 5% in after-hours trading on Wall Street. | :03:39. | :03:41. | |
Joining me now is Warren Gilman, chief executive of CEF Holdings, | :03:42. | :03:44. | |
a company that invests in mining and resources. | :03:45. | :03:46. | |
It all sounds pretty grim. Give us your perspective on these results. | :03:47. | :04:21. | |
It's all pretty grim indeed, but no great surprise here. We really | :04:22. | :04:25. | |
probably did not learn anything from the Alcoa quarterly release. We all | :04:26. | :04:32. | |
know that the world of resources is tough and probably gonna get tougher | :04:33. | :04:34. | |
before it gets any better. Just to say that as part of the results they | :04:35. | :04:39. | |
stipulate why they are lowering their global sales outlook. China is | :04:40. | :04:44. | |
one of the main reasons. They say they believe consumption is at 6.5%. | :04:45. | :04:49. | |
They believed growth would be a originally around 8%. It always | :04:50. | :04:53. | |
seems to come back to China, doesn't it? It does. China's the gorilla in | :04:54. | :05:00. | |
the room for any participant in the commodity world. Despite the fact | :05:01. | :05:06. | |
that demand growth is slowing, demand growth in the aluminium | :05:07. | :05:11. | |
business is good on a relative basis, certainly better than other | :05:12. | :05:13. | |
commodities like iron ore and copper. The real problem is Chinese | :05:14. | :05:20. | |
supply. That has continued to grow in the aluminium sector. Just as | :05:21. | :05:25. | |
importantly, if not more importantly, their exports are | :05:26. | :05:29. | |
growing faster than annual production, and that is the headwind | :05:30. | :05:33. | |
Alcoa faces, this constant supply of new aluminium coming into their home | :05:34. | :05:38. | |
markets. They have had to decrease their own production and try to | :05:39. | :05:44. | |
focus people's attentions more on the engineered products downstream | :05:45. | :05:49. | |
side of the business, which is growing, but again that business has | :05:50. | :05:53. | |
its own headwind. We have all seen from the Ford share price and the | :05:54. | :05:59. | |
Boeing share price over the last year, that automotive growing space | :06:00. | :06:03. | |
has a headwind, and that is a bright spot for Alcoa, never mind primary | :06:04. | :06:07. | |
aluminium business which is under continued strife and tension for the | :06:08. | :06:12. | |
next couple of years. Just really, how long will this season last? As | :06:13. | :06:18. | |
you say, china's exporting more on a cheaper basis, which is a challenge | :06:19. | :06:22. | |
steel makers are facing a round-the-world, particularly in the | :06:23. | :06:31. | |
UK -- China's. Look, this is a tough business, as you mention. Still in | :06:32. | :06:37. | |
the UK is an example. The growing supply of resources and commodity | :06:38. | :06:40. | |
finished products like aluminium steel is a problem that's not going | :06:41. | :06:44. | |
away soon -- Steel. It has been a product of the investment the last | :06:45. | :06:49. | |
ten years. There is no sunshine at the end of this corner. It really | :06:50. | :06:53. | |
tends to look towards the second half, when Alcoa's splitting into | :06:54. | :07:00. | |
its two component parts, and shareholders will at least be able | :07:01. | :07:04. | |
to look at the downstream business in separation from its primary | :07:05. | :07:07. | |
business, sometime probably in the third quarter. OK, Warren, we | :07:08. | :07:10. | |
appreciate your time. Rice is a staple food | :07:11. | :07:14. | |
for millions of people around But for some, | :07:15. | :07:16. | |
the rice itself is virtually their only food, leaving them | :07:17. | :07:20. | |
deficient in essential nutrients. The result is called | :07:21. | :07:22. | |
"hidden hunger" and it's acute in Now it's also been highlighted | :07:23. | :07:25. | |
as a problem among many migrant Singapore's migrant construction | :07:26. | :07:46. | |
workers are building one of the most advanced cities in the world, and | :07:47. | :07:51. | |
this is what keeps them going. According to the social enterprise | :07:52. | :07:55. | |
45 rice, a typical migrant worker here consumes a whopping 1.5 | :07:56. | :07:59. | |
kilograms of cooked rice a day. But not a lot else. A little bit of | :08:00. | :08:06. | |
curry and a little bit of chicken. And normally this large amount of | :08:07. | :08:10. | |
rice a day, without other nutritional food around it, it ends | :08:11. | :08:15. | |
up being mostly an carb diet, they don't get the nutrition they need | :08:16. | :08:18. | |
for the work they are doing on a daily basis. They are working from | :08:19. | :08:22. | |
7am until 8pm and this is arduous work. Workers pay around $1 US per | :08:23. | :08:29. | |
meal to a third party who arranges catering and delivery of food for a | :08:30. | :08:35. | |
cut. The calorie heavy rice fills them up but it lacks essential | :08:36. | :08:38. | |
vitamin A minerals which nutrition experts say leaves workers suffering | :08:39. | :08:46. | |
from a form of malnutrition they call hidden hunger. So they are | :08:47. | :08:50. | |
applying a formula used in the developing world for years, | :08:51. | :08:53. | |
fortifying rice with all of the ingredients needed to make it a more | :08:54. | :09:00. | |
balanced meal. Very often, when you get plain rice as part of your diet, | :09:01. | :09:04. | |
you might feel less productive, less energetic, you might even fall more | :09:05. | :09:10. | |
sick, so you will feel less healthy in general. It would be great to | :09:11. | :09:15. | |
have a more balanced diet, however very often it is not affordable, so | :09:16. | :09:19. | |
it is very simple and cost-effective to add vitamin C and minerals. The | :09:20. | :09:24. | |
enriched rice is already being trialled on a small group of migrant | :09:25. | :09:32. | |
workers -- add vitamins and minerals. Can you tell the | :09:33. | :09:39. | |
difference? Yes. It is nicer. By the middle of this year, DSM, in part | :09:40. | :09:45. | |
partnership with 45 Rice said they would like this fortified rice to be | :09:46. | :09:49. | |
brought to as many as 30,000 of Singapore's migrant construction | :09:50. | :09:52. | |
workers. With in a few years they are hoping to be able to feed the | :09:53. | :09:57. | |
entire foreign construction worker population, more than 300,000 | :09:58. | :10:01. | |
people. And while enriched rice is more expensive they say they won't | :10:02. | :10:05. | |
be passing on the extra cost to their workers because they will save | :10:06. | :10:08. | |
money by dealing with caterers directly and a raging their own | :10:09. | :10:09. | |
delivery. Let's quickly look at the markets. | :10:10. | :10:20. | |
Japan is leading today, over 1%, because the yen has weakened versus | :10:21. | :10:24. | |
the US dollar for the first time in seven days, bringing relief to | :10:25. | :10:27. | |
exporters in Japan. Able see you soon. -- I will see you soon. | :10:28. | :10:35. | |
New guidelines covering cosmetic surgery have been revealed | :10:36. | :10:39. |