01/09/2016 BBC Business Live


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British Airways resumes flights to Iran for the first


But can it really become a global tourist hotspot?


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


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


Plus - looking for new friends in Africa -


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


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


from the app boss about what he thinks about the European


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


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


Apple boss. How do you handle logistics


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


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


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


list? We start in Iran -


because later this evening the first British Airways flight in almost


a decade leaves Heathrow The UK Foreign Office


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


hostility under President Rouhani's government" - raising


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


following the implementation of the nuclear deal,


and the lifting of US sanctions The Iranian authorities are keen


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


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


of 20 million tourists a year by 2025 potentially earning


the country revenues The gist ago issues and a culture


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


to local customs like wearing a headscarf - and in


some areas full hijab. And few businesses like tour


operators and hotels can accept With me is Amir Paivar


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


improved quite significantly in order to cater to that ambitious


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


broadcast interview and he said Apple was outraged to be associated


with either legality and challenged the calculation stash with


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


able to draw up individual tax deals with individual countries because


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


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


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


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


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


story, because this is potentially likely to overshadow US elections


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


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


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


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


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


but the number of European Commissioners have said this is a


watershed moment because what the commission is doing is saying that


governments are not doing enough to assess the way multinational


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


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


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


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


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


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


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


to strengthen trade ties with China, its biggest business


The Canadian prime minister Justin Trudeau has announced plans to join


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


known as the Asian Infrastructure Investment Bank.


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


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


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


American country which has sought membership of the China lead bank


and the move was confirmed by the Canadian Prime Minister Justin


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


China lead bank is a new international development bank and


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


global governance. The Chinese government is seeing Canada's


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


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


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


attracted many American allies including Britain, Australia and


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


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


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


manufacturing surveys did little to inspire investors


as markets waited to see if US employment data could put


the Federal Reserve on track Bounce higher for


European equities today. Lets hear what's ahead


on Wall Street today. Car sales have helped drive America


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


recent months suggesting the boom might be overcome and the latest


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


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


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


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


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


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


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


Federal Reserve officials a pause whether they consider whether to


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


seemed very hacked. Not surprisingly.


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


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


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


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


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


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


business. Richard Attias is behind events


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


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


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


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


for the first time as clubs scramble to outspend each other


to secure the best players. Manchester United sealed


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


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


Head of Football Intelligence Omar, is it really that


surprising that huge amounts are being spent on players


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


that story. British Airways is resuming flights


to Iran for the first time in almost a decade.


A quick look at how markets are faring.


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


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


might increase. Let's get the inside track.


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


scholar named Klaus Schwab, the founder of the World


Developing the largest global meetings of world leaders.


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


scholar named Klaus Schwab, the founder of the World


He hired Mr Attias to handle logistics for Davos


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


the Middle East Peace Summit in Jordan, and the launch


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


an annual invitation-only forum for global CEOs, economists


and business leaders to share ideas and provide recommendations


for new business models in a post-crisis world.


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


a Chinese proverb that talks about people building more balls than


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


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


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


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


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


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


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


of these countries are very open to start relationships with Western


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


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


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


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


from a perception problem? Perception is important. The same


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


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


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


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


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


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


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


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


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


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


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


has been making his first trip to Africa this week.


The billionaire has defended Facebook's decision to continue


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


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


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


all around the world. How will you improve internet


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


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


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


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


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


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


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




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