02/09/2016 BBC Business Live


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Ireland's coalition government meets today to try to resolve a split over


a European Commission ruling that it is owed billions


of dollars in back taxes by the US technology giant,


Also in the programme, over a million workers


as part of a nationwide protest by unions.


Things trading higher at the moment. But weak volumes ahead of a key jobs


report from the US later. And we'll be getting the inside


track on the all-important US jobs data and what's at stake


with the upcoming G20 summit with our economics


editor, Kamal Ahmed. Today we want to know,


is brown in town ever acceptable? If you have no idea what I'm talking


about - according to Investment bankers and lawyers and the like -


the dress code in the city of London Let us know using the hashtag


BBCBizLive. We start in Ireland where


Cabinet Ministers meet shortly to decide their next move in the tax


row with Brussels over Apple. The European Commission has


of course ruled this week that Ireland's preferential


tax arrangements with Let's just remind you of the numbers


here: The Commission says in 2014 Apple paid the equivalent of this,


a tax rate of just 0.005%. It's demanding Apple pays 13 billion


euros in back taxes. But Ireland's leaders are split over


whether to take the windfall and jeopardise relations with other


multinationals also based there The affair has resonated


through the corporate world because Apple is just one


of the huge companies attracting the attention of this


lady, EU competition Starbucks, Fiat, BP,


and brewing giant AB Inbev are among those ordered to pay tens


of millions of euros in back taxes after their deals


were ruled illegal. But those rulings could be dwarfed


by an EU investigation into Amazon's tax deal with Luxembourg


dating back to 2003? It claims most of Amazon's European


profits came through a subsidiary there whose structure meant


it avoided paying tax. There's a similar investigation


into McDonald's and its channelling The Commission claims the fast-food


chain hasn't paid corporate taxes on franchise royalties in Europe


and Russia since 2009. Meanwhile, Luxembourg denies giving


either firm special treatment. Amazon and McDonalds say


they believe they've been paying It's becoming a much bigger issue.


Simon jack joins me now. The Irish Cabinet is meeting today. Irish


leaders, including the Prime Minister, they're in a tricky


position. They're split over whether or not to accept this windfall.


Yeah, the ruling minority ministers are resolute they want to appeal


this and say Ireland's done nothing wrong. We are going to appeal the


European Commission. The European Commission is overreaching it self


and getting into matters which are naturally national Sovereign


matters. However, they have a coalition with the independent


alliance MPs and they're not so sure they want to be sending a message


that they are complicit in this tax avoidance. It's a lot of money. How


often does a Government get told it has a windfall of 13 billion and are


going not sure we want it. They're going to have another meeting. It's


not certain they will resolve it. They've two-and-a-half months to


appeal this to the European Commission. Apple is saying it will


appeal. Tim Cook yesterday put out a striking statement, he tried to


circle his wagon saying Apple has done nothing wrong, Ireland has done


nothing wrong, let's stick together. Let's stop the European Commission


from meddling in this way. A meeting today but lots of issues to discuss.


He was quite emotional saying this was to do with politics. He also


raised this issue of potentially repatriating some of Apple's money


offshore back to the States. That's interesting. That was interesting


for me about what he said. In the past they've had enormous cash pile


outside the US, they say we can't take this 200 billion back to the


United States because we would get sued by our own shareholders for


wasting money. 35%? Because the taxes there, thank you for pointing


that out, 35%. What they're saying is we are going to repatriate


several billion dollars of that. How much we don't know. But it's a


definite change and will please, in a way it's a political bone they're


throwing to the US law-makers. So a big change in tack there. It's


interesting when this comes to Europe. The European Commission is a


deeply unpopular institution. Most people associate it with austerity


across Europe. They must have thought cracking down on tax and tax


loopholes was an easy win for them. Do you think they've misjudged the


mood or whether or not they've the timing just right ahead of the G20


and the US presidential elections this year, it's jumped up the


agenda. Definitely the G20 coming up. We have put - this has put tax


right at the top of the agenda. The commission are unpopular, when it


comes to things like competition, if you ask most consumers they've done


good, if you remember roaming charges and different cartels, there


were construction cartels they got involved in. I don't think they've


misjudged the public mood. They've in a way embarrassed US law-makers


saying they've stolen a bit of their thunder, saying if you can't sort


this out we will go in. They say, the US would say we had a


collaborative bit by bit approach with the OECD, we made small


progress. The UK is doing diverted profits, we were getting there. You


jumping in with both feet is not helpful to that international


effort. And if anyone is owed back taxes, it's us, not Ireland. It's a


great row! As you say, it's implications, lots


of big companies. There is no doubt that it seems that the landscape is


changing around this thorny issue. Thank you so much.


Let's look at some other news. World leaders are gathering in China


where the G20 summit is kicking off on Sunday. The US President is


expected to address the issue of controlling corporate tax avoidance.


Other challenges such as the slowing world economy, refugees and


terrorism is also likely to be at the forefront. Quite a list.


Exactly and more on that in a bit. Facebook founder Mark Zuckerberg


says he is "deeply disappointed" at the loss of the company's first


satellite - that was due to deliver broadband internet coverage


for large parts of sub-Saharan The Amos-6 satellite was destroyed


when a SpaceX rocket exploded on the launch pad at Cape Canaveral


where it was being test-fired ahead US supermarket chain Walmart


plans to cut 7,000 back office and accounting jobs


in its US stores. The move comes after a pilot


programme in 500 stores this summer A Walmart official said


the employees affected by the changes would have the option


of moving into jobs serving We want to take you through a few


stories that caught our eye on the business live tablet today.


Including this one, I thought it was interesting. It's about this is from


Samsung. They may issue a recall. It's because of faulty batteries


catching fire. It sounds hazardous. Yesterday we believe Samsung


suspended shipments of this note seven for additional tests. The


timing is not great for the tech giant. It's struggling with its new


premium device and happening at a time with a week off from the latest


iPhone launch from Apple. That could be overshadowed. And they're all


meeting at this conference in Berlin. Might be an unwelcome


talking point. Now to India. More than one million


workers are expected to be on strike today in a nationwide protest by


unions. Shilpa has been following unions. Shilpa has been following


this from Delhi. A million workers, that's pretty extraordinary. It is.


Actually the trade unions are claiming even higher numbers. The


head of the central trade union has told us just before this and he said


there are over 150 million members out on the streets. We have to wait


and see how many of these actual workers are on the streets and how


much of this protest has taken on. The southern states have been


affected, they have been wider protests there, compared to the rest


of India. But public sector banks shut so many can't access bank


accounts. Crucially, things like power supplies are not affected,


essential supplies not affected. Public transport has more or less


been running and railway staff are not part of the strike which means


the key transport lines are working. Many thanks for that.


Let's check in with the equity markets and see about their


progress. Asian markets have been drifting ahead of the US jobs data


for August. Stocks are subdued. The dollar and gold flat ahead of those


key figures. That's what was going on with the markets in Asia.


This is the picture opening up across Europe. I want to mention


oil, because the price is rising. Russia says it's confident that


major producers will agree a deal to freeze output. One could say they


would say that, wouldn't they! One could definitely say that, I think.


Let's talk through the market numbers now with Richard Dunbar. Is


it fair to say markets are in something of a wait and see mode at


the moment ahead of these key US jobs numbers we are expecting? We


are back to this position on a Friday afternoon waiting for the


monthly jobs data. This is an interesting set of data. The August


data is often poorly forecast by investors so investors are looking


for 180,000 jobs to have been added in the US, further confirmation that


the US economy is growing. And probably will follow further


affirmation that US interest rates may rise on the back of that. The


August data can be dodgy, can't it? It is a bit, it's poorly forecast by


markets. It's a difficult time. It's a different time with the summer


holidays, etc. I think the data is poor, the forecasting of that data


is poor. We will see what comes out at lunchtime but I suspect we will


see further confirmation of a US economy that's in better health than


perhaps we thought it would have been a year ago. Looking back over


what's happened over the course of the week, a mixed one when it comes


to Mergers and acquisitions activity. Arms holdings, a great


British company taken over by a Japanese company. We have also seen


the bid for - mixed messages. Last year was the best year since 2007


for Mergers and acquisitions with cheap money, confident boardrooms


and not a lot of growth around. I suspect we will see that activity


pick up again. Mixed messages over the week. We also had more data this


week about the state of the UK economy post that June referendum


vote. Good manufacturing PMI. Things were pretty good, perhaps not


surprising given sterling has fallen 10%. No news on Brexit and sterling


is 10% cheaper making it easier for them to export. Good news. Further


good news on various aspects of the UK economy the last few weeks. Thank


you. You will stick around, for now, thanks.


Still to come why the jobs numbers in the US matter and what we can


expect from the G20 summit. That's coming your way. You are with


Business Live from BBC News. It could be a tough time


for graduates this year - the number of job vacancies has


fallen for the first time in four years, with the sharpest falls


in retail, engineering The number of jobs available is down


8% since last year which means there are just under


20,000 positions to fill. Stephen Isherwood is


the Chief Executive of the Association of


Graduate Recruiters. Stephen, what's going on,


how much has the vote to leave It's a mixture of the vote to leave


the EU and also general uncertainty in the global economy so we find


graduate vacancies very much track what's happening with the economy,


so our sense is employers are being a bit more cautious than they were


last year, when we had double-digit growth, so there is a slight


contraction in the market but we are seeing that counterbalanced by an


increase in the number of apprentice level vacancies so it's a mixed


picture at the moment. I wanted to talk to your about that because I


wonder how many firms are repackaging what were effectively


graduate roles as high apprentice ship jobs in order to make up the


numbers and look good in terms of the company perspective, but


actually the graduates are missing out? It's been a long-term trend of


employers looking at broader talent pools, so much focused on graduate


and also the school leave entry routes, are there particular


training platforms that work better to get that broader talent pool? The


apprentice level is adding fuel to that fire which has already been


smouldering away for the last few years. The levy isn't in place yet.


It's not until next April when the funding structure changes in effect.


I think we are seeing some organisations pre-empting that to a


certain extent. How scary is the job situation for young people coming


out of school or university or college these days? I don't want to


be doom and gloom because there was a danger that people get the message


that there is no vacancies out there. There are thousands of


vacancies out there and school leave a vacancies. We have employers which


don't fulfil all of their vacancies all year, even 2009, the last


session, they couldn't find enough people but the right level of


skills, so it's a tough market. Young people need to prepare for


that market, make themselves employable, build their CV is, do


research, I'm not saying it's not tough, but there are positions out


there. There is a viable jobs market out there and some employers have


increased their vacancies. Good advice. Thank you, Stephen.


Ireland's coalition government meets today to try to resolve a split over


a European Commission ruling that it is owed billions of dollars


in back taxes by the US technology giant, Apple.


In one case there is a situation for do we jeopardise the relationship we


have with this company and all multinationals or do we just take


the money and run? 13 billion euros sounds nice. It's a lot of money.


It's bizarre they are spread over this decision in some ways.


A quick look at how markets are faring.


A fairly muted picture as we said earlier. A lot of markets are


holding back bed of these key US jobs numbers due out later in the


day. The FTSE 100 is up 25 points higher but the house-builders are


the big losers of the moment on the FTSE 100. All four of the players


are down. Barclays is down by 3% at the moment. The FTSE 250 is also


down. Go ahead, transport company, those shares are going up on the


back of higher annual profits. More on the website.


And now let's get the inside track on this week's news with our


Many thanks for coming into the studio. We were talking about it


earlier, the fact US jobs is on the mind of traders this week, but let's


begin by talking about what's coming up, the G20's. Remind us what it


really is, why it's important. It's the world's richest nations,


America, Britain, France, Germany, Brazil, Mexico, India, the most


important economic nations, China, of course, and it's almost like a


Christmas dinner after a series of family rows. It can all be a bit


uncomfortable. Of course we have the imminent divorce, Britain planning


to leave the European Union. We have tensions between China and the UK,


written and postponed the final decision on the big new Hinkley


nuclear power station jointly funded by Russia and China in the UK.


Tensions over tax, as you have been discussing. America and the European


Commission at loggerheads over this tax bill for Apple. And the warning


from the IMF saying growth is low across the world and countries need


to think much more carefully about their fiscal policies, not just


relying on central banks and monetary policy, to re-spark that


growth, so there's a lot of tensions. Russia over Ukraine and


its own economic problems because of a commodity prices. Brazil in


teaching former Presidents. There is a lot to go out. This is Barack


Obama last 20. Theresa May, her first. I think there will be a lot


of robust discussion. A real change in mood, the you, Barack Obama


leaving, who will be the next president? There are some big


tectonic plates shifting in the economy. It's an important G20. One


of those tectonic plate is around trade and the changes in attitude.


The IMF talk about globalisation at watching it up the agenda, but do


you think we are fighting a losing battle across the world when it


comes to protectionism? Trade deals have collapsed. Certainly the World


Trade Organisation brought out a report saying protectionism is


growing. Politicians are very aware that lots of people in countries


feel that they have missed out on global growth. If you are a medium


or low income person or family, you haven't enjoyed the riches of the


last 20 years, where we have seen a lot of growth up until the 2008


financial crisis. It's been growth focused on the rich, and that is led


to politicians bringing in place trade barriers. Could the UK leaving


the EU add to that? At the same time, you have these big issues


around how central banks are operating, and what they are given


with interest rates. You have got pressure upwards on interest rates


in America. At the same time, in the UK, in the European Union, Japan,


you've got downward pressure on interest rates, a great divergences


which means there are these big tensions on whether we are still


going to be open in terms of trade, versus protectionism, and also on


interest rate policy more generally. That Segway is nicely into my next


question. I could see what you were doing there. I always want to help


you. Job numbers are coming out later today. The reason they matter


is what it could mean for the US Federal reserve, their central bank,


in terms of raising interest rates and that matters for the rest of the


world, doesn't it? The American economy is the most important


globally, it drives a huge amount, not only exports and trade, but also


sentiment. If the American economy is seen as strong, it sends a signal


to all the other major economies, but mixed views about which way it


might go. Of course, there has been strong jobs data over the last two


months, but manufacturing data less strong in America and inflation


pretty flat, so we will know later today what they do for the cut


interest rates go up in America this year? Most markets think maybe not


in September but maybe in November. Fantastic to talk to you.


In a moment we'll take a look through the Business Pages,


but first here's a quick reminder of how to get in touch with us.


Here is where you can stay ahead with all the days breaking news. We


will keep you up-to-date with the latest details, insight and analysis


from the BBC's team of editors right around the world and we want to hear


from you, too. Get involved on the BBC business live web page. And on


Twitter. And you can find us on Facebook. On TV and online, whenever


you need to know. We have been asking you what you think about


dress codes in the office and whether or not Brown in town is ever


acceptable, brown shoes, of course in the City of London. We've had


some messages for the Henry Pryor said, on Friday, where Tweed. James


Hughes, a regular on the show, said, when I first started in the city at


18, I was once sent home to change my shoes. No. I'm an Eastern


European immigrant and I would never wear brown shoes with a suit for


that nothing to do with going to eat, but reading up on the basics.


Would you wear brown in town? I probably wouldn't for that I'm


properly where the standard uniform they are talking about here. A tie


and black shoes full it doesn't mean I wouldn't hire someone who wore


round shoes and that's a different thing. My aim is to hire diversity,


hire the best talent we can get, and that may be wearing a different


outfit to me, so that's a secret. The whole industry is accused of


monocultural as but reports like this do not help the case at all or


cover the industry. People are missing out on jobs because someone


doesn't like their footwear. Exactly. All the evidence suggests


diversity of background, experience, gender, clothing, produces a better


team, better outcomes, better investments, better decisions, so


everyone should be fishing around in as big a pool as one can. Let's hope


that trickles down. I want to flag up the story from the Times, buy to


let landlords moving increasingly into the air B sector, which is


interesting because that was not the original idea behind the location


sharing website. It is meant to be for short-term. Firstly, it shows


the power of disruptive technology. If you want to do B previously,


you would wait for someone to phone you, but no just download the app,


take a picture of your flat and you are off, so it's changed the market


for bed-and-breakfast, but also, I suspect, you look at how money


houses to be to build in the UK when the forecast was done two years ago,


to try to think about that, they were properly not thinking of air


B, and that product taking that stocks off the market. Interesting


how it's changed. Many thanks, Richard.


There will be more business news throughout the day on the BBC Live


webpage and on World Business Report.


Have a fabulous weekend in the meantime. See you soon. Bye-bye.


Some damp and breezy weather in prospect for


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