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This is Business Live from BBC News with Rachael Horne
yep a cash pile twice the size of the US economy - hidden offshore.
So the question is what can be done to tackle the tax dodgers?
Live from London, that's our top story
Clawing back what they are owed, governments and campaigners
will today sit down for a major pow wow to discuss how they can get back
the trillions of dollars in tax revenue that's been
Also in the programme, South Korea's parliament has voted
the capital for the latest on this developing story.
On the markets another day another record -
a record close on wall street - a record high on the
Nikkei - and in europe the markets are up.
And we'll be getting the inside track on the biggest
financial stories of the moment, with our Economics Correspondent
Andrew Walker, including that long talked about Fed rate rise.
Come January United will charge you to put your carry on bag in the
overhead locker. Do you think the difference between full-service and
budget carriers is blurring? Get in touch.
We are talking tax - and why many big businesses
and wealthy people seem to pay so little of it.
Today politicians from all round the world are in London
for a Global Tax Transparency Summit.
They'll be discussing how to promote tax transparency
According to the Tax Justice Network, as much as $36 trillion
That's twice the GDP - of the world's biggest
In other words - double the value of all the goods and services
It's not just about tax evasion - but also legal tax avoidance.
Bloomberg estimates that US companies have stashed $2.1 trillion
in profits overseas as part of a perfectly legal operation
On Thursday McDonald's said it's moving its non-US tax base
from Luxembourg to the UK due to the "significant number of staff"
But there's more to it than that The Luxembourg tax affairs
of the fast food giant are under formal investigation
It says McDonalds has paid no corporate tax in the city state
despite booking profits worth hundreds of millions
Alex Cobham is the chief executive of the Tax Justice Network. That
figure, $36 trillion, that is monumental. It would be the world's
biggest economy. You need to think about the income and revenues we are
forgoing every year in countries all around the world to understand why
this is such a big problem. The services we are losing, the
inequality we are suffering because that income is not being taxed as it
should be. After back -- after McDonald's is moving its operations
from Luxembourg to the UK, is that a sign that the tide is turning?
Public opinion and outrages working? The EU is changing its attitudes?
Things are moving, but moving slowly. We are still lacking the
kind of transparency that would allow us to know that McDonald's are
declaring profits in the places where they are doing business. The
OECD requires multinationals to report on a country by country
basis. The activities and profits they are making. We need that in the
public domain, so the public can see that McDonald's are playing fairly
UK is not playing the same UK is not playing the same
Luxembourg is playing, in order to take profits from elsewhere and not
tax them. What needs to be done to change the situation, we talked
about the President-elect talking about an amnesty, bringing all that
offshore revenue back in, and then charging at a reduced rate. That is
based on a flawed understanding. 90% of US companies profits were shifted
offshore -- 19%. That is up to 25%. This is not a problem that the
effective tax rates are too high. That is a problem that
multinationals realise it is optional to pay tax. Lowering the
tax rate will not stop that. We need transparency that makes it obvious
and allows the consumers and citizens to vote with their feet.
Are you going to the summit? Absolutely, I think we will get some
great action today. South Korean parliament has voted
to impeach President Park over There have been mass rallies every
Saturday for the past six weeks calling for Park to quit,
and opinion polls show overwhelming Let's cross to Steve
Evans, who's in Seoul. The vote goes to the highest court
in the land, basically the parliament, saying we wrote that she
should be sacked. The highest court in the land accepts the vote, and
has its own investigation, looking at the matter. And we'll either say,
we agree with you over some months, or implement the sacking, in plain
language. In the meantime, President Park seizes to have any power. --
ceases to have any power. She remains president, but all the power
passes to the Prime Minister. The Prime Minister is talking about the
uncertainty. Saying the military needs to be on heightened alert in
case Kim Jong-Un in North Korea decides to press the situation
because of the uncertainties of power here. Check out our website.
Japan going bananas for Fife. The Irish -based fruit distributor, sold
to a huge Japanese conglomerate for 751 million euros. About $800
million. Bananas are big. Supplying one in three bananas in Japan. Also
the King of the banana. Let's touch on some of the other big stories.
Australia has given approval for the sale of the country's
largest private land-holding, the Kidman estate.
It's being bought by Australia's richest woman, Gina Rinehart,
and her business partner, Chinese developer Shanghai Cred.
The estate makes up about 1.3% of all Australian land
and is about the size of South Korea.
The sale has been halted several times due to concerns
Concerns about Chinese buying land in Australia.
The US government says it will investigate whether the planned
sale of an almost 20% stake in Russia's biggest oil company
The Swiss based commodities trader Glencore and Qatar's soverign wealth
fund are supposed to buy 19.5% of Rosneft in a deal the Kremlin has
presented as proof foreign investors are still interested in Russia.
Wholesale prices in China have surged at the fastest
The Producer Price Index - that tracks the cost of goods
as they leave the factory - was up 3.3 per cent in November,
They were driven by the rising cost of commodities like coal and steel.
Record closes on Wall Street yesterday.
The Dow was up. Let's look ahead to Europe.
In Europe, one of the biggest factors impacting on the markets
is the European Central Bank's decision to extend its bond-buying
programme until at least December 2017, but cut its purchases by E20bn
a month - could that spark another taper tantrum?
And Samira Hussain has the details about what's ahead
The University of Michigan's consumer survey is out on Friday.
This is important because two thirds of the US economy depends
on consumer spending, so just how confident Americans feel
will really influence how much they spend.
The expectation is that consumer sentiment will be up
and this comes off the heels of a six-month high
signs that people are feeling increasingly good about
In earnings news, the maker of Ski-Doo snowmobiles and Sea-Doo
BRP is expected to report a rise in profits, as the company has been
Investors will be looking for the company to comment
I can imagine that would be a fun company to work for.
Joining us is Richard Fletcher, Business Editor
Good morning. They can hear you. This rally at Wall Street. One day
after another. Last night in Japan, the McKay went over 19,000. -- the
Nikkei. Looks like we will get to the magic number before the end of
the year. Is it the Santa Claus rally for the Trump hump? Apparently
the technology stocks could be in trouble next year. It is the
infrastructure stocks. Goldman Sachs up 32% since the election. The Dow
up 12%. Nasdaq only eight. There are winners and losers. All driven by
that positive sentiment what they might think Trump may do. We have a
dead on search for a rate rise, the stocks should be nervous, they
shrugging it off. You have to be brave to bet against the market,
even though it looks quite fragile. Why would the markets be nervous
about interest rate rise? Companies, the cost of capital will increase,
therefore you would find markets a bit nervous. You will come back and
take us through the papers. Some good stories.
Next week could be a big one for this lady, Janet Yellen.
She is expected to announce a rise in US interest rates.
We're going to be discussing that and much much more
with our Economics Correspondent Andrew Walker.
You're with Business Live from BBC News.
30 trade associations representing the whole of the UK's
food and drink industry have joined forces to make the case
for continued access to EU workers post-Brexit.
In a letter published in the Guardian, they argue that EU
workers play an important role in the supply chain and some
Our Business Correspondent, Theo Leggett, has all the details.
Is this scaremongering? Serious stuff. The industry is genuinely
worried. 30 trade organisations, the National Farmers' Union, the British
Retail Consortium. Food and Drink Federation. I don't think this is a
blast. They rely on seasonal workers, they have a big pool of
potential employees from the European Union, skilled and
unskilled. They are saying, we know we are leaving the European Union,
you have to think about the impact it will have on our industry. If
we're not able to access this pool of very useful workers, food and
drink prices will rise, the industry will suffer. How many employees are
we talking about, EU workers working in these industries? As a whole, it
employs about four million people. A large proportion are seasonal
workers for work from the European Union. If these people cannot get in
there may be a shortage. The industry is asking for an
unambiguous reassurance from the government that EU workers that are
here can stay. Longer term, recognition that EU workers provide
an essential reservoir of skilled and unskilled labour. A commitment
from the government that if work permits are introduced, there is a
point system, the food industry must be treated equally with the
financial sector and the automotive sector. Not place at a disadvantage,
and they can still get hold of the workers they need. Great stuff. Have
a great weekend. Here is a quick look at what we have
got on our live page. Here is something on crowdfunding, which has
been successful very quickly and there are not many rules. The
Financial Conduct Authority are setting out new rules to protect
people who are in the crowdfunding market.
You're watching Business Live - our top story:
A global tax summit is taking place in London today,
aimed at trying to work out how to claw back the trillions
of dollars that have been parked overseas.
A quick look at how markets are faring...
And now let's get the inside track on the ECB saying it
will extend its bond-buying programme until at least
December 2017 as it kept interest rates unchanged.
The E80bn a month quantitative easing scheme had been
due to end in March, although the bank had been
expected to extend it for at least six months.
This is known as the taper, and we mention the taper tantrum. Well, the
markets seem uncertain. We firstly had the euro rising. Then it fell
back, suggesting that maybe it was not a tapering. Mario Draghi, the
European Central Bank president, hates the word. He remembers the US
taper tantrum, which was when the Fed started indicating that it was
going to start slowing down its quantitative easing programme, its
purchase of bonds in the financial markets. The dollar rose sharply and
we had serious turbulence affecting some of the emerging markets, with
money flowing back to the US. Clearly, Mario Draghi wants to avoid
that kind of turbulence affecting the euro particularly because if
anything equivalent happened and you saw money flowing into the Eurozone,
you would see the currency strengthening, and he does not want
that to happen. You can interpret the policy statement either way.
They are continuing the programme for longer than they had previously
indicated. On balance, it means they will be spending more money than
they had previously committed to do. More than half $1 trillion. You
mentioned that the euro reacted at first because they thought I would
be some tapering. Do they want to see Europe being weaned off this?
This is like a drug. It is not sustainable or realistic to have all
this cheap money. I think what the markets and policymakers want is to
be satisfied that the Eurozone economy is strong enough to be
weaned off. Once out in that position, they would love to see,
but the ECB and Mario Draghi himself would love to see the Eurozone being
strong. It will take a lot longer. Let's talk about oil. We have Opec's
agreement last week. We have another meeting this weekend. Opec did
manage to agree, somewhat to people's surprise, that it would cut
production for the first time in many years. But this was conditional
on a commitment from non-OPEC countries to make a cut of 600,000,
half of what Opec was committing to do. Yes, Russia had already made a
commitment to provide half of that non-OPEC cut, but at this meeting
this weekend, they will be discussing with other members
including Azerbaijan and Kazakhstan, Mexico, Oman and several others
whether they will also make some contribution. It has been quite
striking as markets have taken different views of how likely some
sort of deal is and the price of oil has moved up and down, but it is
still comfortably above the levels it was at before the Opec meeting,
when they made this provisional agreement. But isn't it the case
that it is one thing for Opec members or non-OPEC members to say
we will do it, and actually doing it? Yeah, there are always issues
over whether members comply with their run commitment and implement
the cuts they have made. But clearly, the financial markets think
there is a decent chance of at least some of the members doing it, in
particular the big one, Saudi Arabia. The Saudis have had a big
change of strategy. They were thought to be wanting to do a lot of
harm to the American shale industry by keeping prices low. Looks like
they have given up on that. Let's talk about the Fed. We are expecting
interest rates to rise. How much by? Most likely by a quarter of a
percentage point. They have a target band for this market rate that banks
charge one another for overnight lending. The expectation is that the
top and bottom of that band will rise by a quarter of a percentage
point. But some think it could be a larger rivals. Like half of 1%? That
would be a shock. It probably will not be that, but the fact that some
people are even thinking in those terms is an indication of how the US
economy is doing relatively well. The labour market is pretty strong.
Unemployment is down 4.6%. There are still a lot of people who are not
active in the labour market who could come back into it, so perhaps
things are not as strong as that headline figure suggests. But it is
a striking contrast with Europe, where the unemployment rate is 9.8%
and around 20% in a couple of countries. Have a good weekend.
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.
keep you up to date with insights from the BBC's editors around the
world. And we want you to get involved too. You can find us
online, on Twitter and Facebook. Business life, on TV and online,
whenever you need to know. -- Business Live.
What other business stories has the media been
Richard Fletcher, Business Editor of The Times
Australia has been a contentious deal, but the government have
approved the sale of this large chunk of land the sound -- size of
South Korea to Gina Reinhard, but also the Chinese partner, which is
the controversial part. So Australia supplies all the raw materials for
China's infrastructure, and now we are going to feed them. It is
intriguing. The size, for a little Brit like me, is difficult to even
contemplate. 300,000 head of cattle. It is huge! Obviously, you will know
it has been controversial in Australia because of the whole idea
of Chinese control etc, so they have got a minority stake and the
Australian partner appears to have control of the board, which appears
to have kept people happy. The size of it is immense. It is bigger than
Ireland. It is 2.5% of Australia's agricultural land. It is massive.
The controversies about China owning too much land in Australia. I wonder
if this paves the way for other deals to be done with China
partners. Australia does need agricultural land to feed a lot of
people. Although interestingly, beef was not part of the Chinese diet.
Neither was ice cream, but they are the second biggest consumers of ice
cream in the world! Let's move on. As we were discussing earlier, oil
prices have been putting all year. The airline industry has had eight
years in the black, so they have had a good time. There is that joke, if
you want to turn a large fortune into a small fortune, by an airline.
It is slightly more bumpy. There is a bit of turbulence ahead.
Richard Fletcher, always a pleasure. Have a great weekend. See you again
next week. Bye-bye. We have some cooler weather to
arrive this weekend, but today will be another mild day. We have the
wind is coming in from the south