31/08/2017 BBC Business Live


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This is Business Live from BBC News with Ben Thompson and Sally Bundock.


President Trump promises to reform America's tax code -


but will it be enough to stop US firms stashing cash overseas?


Live from London, that's our top story on Thursday 31st August.


Top US companies are keeping $2.5 trillion in profits abroad,


so can President Trump persuade them to bring it back to


Also in the programme, India's illegal cash crackdown fails -


we're live in Mumbai to find out why.


And a better-than-expected growth figures in the United States and


better manufacturing figures in China have boosted growth markets.


You may have heard of Fin Tech but have you heard of Phil Tech?


We're going to get the inside track on how the boss of PlayMob using


And as airport currency rates hit a new low in the UK,


We want to know where do you buy your currency


And if anyone tells us they buy their holiday cash at the airport,


you are banned from the programme! We start today in the US


in Missouri, where President Trump will lay out the details


of his planned tax reforms. He described the current tax rules


as "self-destructive" - they haven't been reformed


for 30 years. He's calling for a more competitive


system to boost jobs and wages, repeating his promise to cut


America's corporate On paper, the US corporation tax


rate is one of the highest But if you take into account


various tax breaks, many top US firms pay a bit less -


on average, 28.6%. That's still much


higher than the 25% rate in China, 19% in the UK and just


12.5% in Ireland. That's why many top US


firms have their overseas And that's meant a staggering


$2.5 trillion worth of profits are channelled overseas by top US


companies to avoid And with the US national debt


spiralling towards $20 trillion, would cutting taxes boost


the economy and tempt US firms Or would it just do more damage


to the government's finances? Speaking on Wednesday, the US


President explained why he believes Our self-destructive tax code


cost Americans millions and millions of jobs,


trillions of dollars and billions of hours spent


on compliance and paperwork. And some countries have


an unbelievably low tax, China and some others that


are highly competitive and They are taking us,


frankly, to the cleaners. John Weeks is the Professor Emeritus


of Economics at SOAS He's here to give us his take on


this story, and were as we just heard, President Trump with his


ideas, his promises, but when will we see a concrete change, do you


think? I think the first point to make, as a famous US jury said,


taxes are the price we pay for civilisation, and the most liveable


countries are the ones with a high taxes, Denmark, Sweden, so on. The


USA has very low taxes, people can draw their own conclusion from that.


The second point is that tax cuts for the middle-class will have a


trivial impact on their incomes. The problem with the class incomes is


their slow growth, the amount that tax would be cut would have very


little impact. And third, cutting the corporate income tax, the main


consequence of that would be to redistribute income to shareholders.


Ronald Reagan tried the same thing almost 40 years ago, and it did not


reduce overseas remittances, and this word, either. So you have


explained some of the reasons why the change in the tax code would not


benefit the US economy, so the issue of any traction on Capitol Hill for


President Trump trying to put through change? I think that


President Trump is an unusual president in that he has a a lot of


support in Congress who may agree with him in ideological, but they


don't like him personally, famous cases such as Senator John McCain.


So I think it is quite possible some bill will go through, but it will


not be the builder Tron proposes, it will be one that is drawn up


probably in the Senate in with the leaders of the house. This isn't


unique to the United States, the debate about cutting taxes to boost


growth and vice versa. There is some truth in cutting taxes many more


money flows into Government cough is because business is more productive.


They might not bring back a lot from abroad, but they create jobs and


wealth if taxes are lower. That is a variation of the argument that has


lower taxes mean more tax revenue, but the terrible evidence that is


very weak. Also the miracle evidence that cutting taxes stimulates growth


is quite weak. So it is possible, but it is likely that we won't get a


systemic demonstration of that. Ten or 15 years ago, you wouldn't have


had the Congressional budget office do a study on the likely impact, and


I have not seen such a study, and I don't believe that the office has


been invited to do that. We will keep a close I on that. Thank you


for your time today. President Trump has just kicked off his tour with


tax reform top of the agenda, so we will keep track on how it goes.


Let's take a look at some of the other stories making the news.


The French government is due to reform labour laws later today. The


measures will be a big test for President in manual macron who is


facing protests next month, although one of the biggest unions has


decided it will not take part. The new boss of Uber,


Dara Khosrowshahi, has told staff he will change the company's culture


and may take it public The taxi hailing app is trying


to recover from a string of crises that saw chief executive


and co-founder Travis Mr Khosrowshahi is the former boss


of online travel company Expedia. I got his name right the second time


around! The troubled Japanese giant Toshiba


has missed a self-imposed deadline of signing a deal


to sell its memory chip unit. The company's board has been meeting


to review a $17bn offer from Western Digital and a revised


last-minute offer of $18bn from Bain Capital -


which brough in Apple to help Activity in China's factories


sped up in August - suggesting the world's


second-largest economy may still be The Purchasing Manager's Index


unexpectedly rose to 51.7 - when economists had predicted


a marginal decline. I am just not going to try and say


it. We just have to practice it over and over. I have a feeling we will


say the name a lot, the new boss of Uber there. Now, let's talk about


India. Was India's crackdown


on the black market a failure? The central bank says 99% of banned


500 and 1000 rupee notes Explain this for us. Why did they


ban certain banknotes, and now it seems they are all back in


circulation anyway? In November last year, this was a surprise decision


by the Indian Government, where they decided to ban 86% of the currency,


all high-value currency notes to be banned overnight, and the reason for


that was they wanted to crack down on black money, money for which a


taxes not been paid. They wanted to crack down on tax evaders and


corruption. Internal estimates were that about $60 billion will not come


back to the system, and this will be regarded as black money which was


floating in the system. But now the central bank has come back and said,


actually 99% of those notes of comeback, and that means that


analysts are saying the policy was a failure, because if 99% of the notes


are back, only $3 billion were recouped, and that is not worth it


for the problems it caused. That is an interesting story on why


sometimes that just doesn't work. Let me show you the numbers.


Shares in Tokyo ending up after the better-than-expected


growth figures in the US gave a boost to confidence.


In Europe, the talk is still of the strength


The debate about what central banks might do. Can the Bank of England


afford a weak pound? We will talk about that more in the moment, but


first let's head to the United States and Michelle Fleury.


Wall Street will continue to play close attention to the devastating


In a show of support, the New York Stock Exchange


investors can chew over pending home sales data for July.


The index focuses on houses where a contract has been signed,


from the country's worst housing collapse has been uneven.


Forecasters see pending sales rising again, 0.4% in July.


But that doesn't appear to have helped sales


of existing homes in July, which fell sharply for


Large declines in the north-east and midwest outweighed sales


the Federal Reserve's preferred method of inflation -


is expected to be positive after second quarter growth


was revised up to 3% for the first time since early 2015.


Joining us is Jane Sydenham from Rathbone Investment Management.


Interesting, because Michelle touching on the upwards revision of


GDP in the States, and she is looking ahead to the numbers we are


going to get later today. It is all looking good for the US, and we


mentioned China numbers better-than-expected as well. It is


all looking better. We all got worried in the first quarter of the


year, there was a slowdown in the US and indications of that elsewhere,


but it looks as though the momentum is picking up again. The consumer


still seems to be spending money, which is key. The revision was


related to that. And given that 70% of the US economy, that is


important. And that may be why factories in China in August had a


better month? Absolutely. Let's talk about currency quickly. This


sterling- euro parity creeping closer. This is twofold, the weak


pound and the strong euro, and there was hope that we might hear


something from the European Central Bank about whether they can afford a


strong euro in the longer term, but central banks don't tend to get


involved in the early stages. If it is a persistent problem, they might.


They don't, and what we have to bear in mind is Europe has had such a


difficult time in terms of growth, finally we are starting to see some


positive growth, so the last thing the central bank wants to do is to


try to intervene when we are finally beginning to see some positive


signs. At this point in time I doubt it will be a priority. Thank you for


now. I wanted to ask more about the markets, but we are being good


because there is so much more to fit in this programme, including:


We meet the tech entrepreneur putting her love of


computer games to good use - for charity.


You're with Business Live from BBC News.


UK betting firm 888 has been accused of failing to block access from


customers who self excluded, and find ?7.8 million. Sean Farrington


is joining us now from Salford with more information. Tell us more about


what is finest specifically for. It is about this self exclusion. If you


were gambling online, 888 is a lot roulette, poker, bingo, and if you


thought you don't want to be able to access your account for whatever


reason, you can tick a box somewhere, let them know, please


freeze my account, don't let me access it, and that will help you


out. But 7000 customers over a period of year said they wanted to


be self excluded but were still able to access their accounts, so the


Commission has effectively find 888 nearly ?8 million for this, saying


not only did they have the technical hitch that allowed it to happen, but


they didn't pick it up which meant ?3.5 million was deposited by those


customers, and gambled over and over to an amount of ?50 million that


year. It is a strange trend, because we talked yesterday about credit


card companies raising limits for people, and it is vulnerable


customers most likely to see that access granted to them when they


have said they do want it. The various authorities have been


looking at the gambling sector in this area for awhile now. Earlier in


the year we had the Competition and Markets Authority looking at the


wider sector about initial offers, those offers you might see that say


put ?100 with us and we will double that for you if you better certain


amount of time, but question marks over how long they have been holding


onto the money. So alongside this fine for 888 today is the gambling


sector being under pressure from those authorities to clean up their


act and to make it better for those vulnerable customers in particular.


Thank you, Sean Farrington in Salford.


On our website, details about Toshiba. They were supposed to have


reached a deal to sell their lucrative chip business. It has not


made any agreement with the three parties it is in talks with at the


moment. So Toshiba are once again failing to deliver on a key


deadline. Our top story: President Trump has


begun a speaking tour aimed at building support


for his planned tax reforms. In an address in Springfield,


Missouri, Mr Trump said he aimed to reform America's tax code


fundamentally for the first time A quick look at how


the markets are faring. I want to mention a big loser in


Paris today. Carrefour has issued a profits warning, which has come as a


surprise. Its shares are down and it has been downgraded by JP Morgan. A


pretty tough time for Carrefour. A big, old-fashioned retailer,


struggling with very hot competition. Many retailers in this


country and in the states are experiencing the same. Now,


something entirely different. Well, it's philanthropic


technology, apparently. Putting technology to


use for good causes. And our next guest


is doing just that, Jude Ower's company Playmob develops


advertising campaigns for charities within video games and then targets


players with those adverts. Her business has reached over


150 million gamers worldwide so far. And in total, the initiative has


raised over $1 million. Various beneficiaries


include WWF and Oxfam. She is here with us. My kids play a


lot of these games that you target, so explain how you help charities in


that situation? There are two ways our platform works, and it is either


by connecting an inapt purchase so a player can support our cause, or the


brand can sponsor the content and the percentage of that spending goes


back to our cause and we track the impact so you can see that by


purchasing the item or completely that level, you are providing a meal


or planting a tree or providing water. I immediately thought to


myself, with all my kids and the stuff they play, I make sure the


in-app purchase is switched off as they can't spend. That doesn't help


you. Well, the average age of gamers is 35, so it's not just kids that


play. The average demographic of a social game is a woman in her


mid-40s. So a lot of kids' games, you can switch off the in-app


purchase, but only a small percentage of revenue would come


from that. Only 3% of gamers spend on in-app purchases. So there is a


big opportunity for brands to spend on media in games. Digital


advertising by 2020 is set to become $20 billion, and 25% of that is


spent in game, so there is a big opportunity for brands to the part


of existing games, which we can take a percentage off to give to charity,


and the player doesn't have to spend money. It is like the player taking


action like completing a level, and the money goes back to the cause.


What will it look like if a game has this sort of content? Right now,


there was a game called and we shot and you can buy a baby shark and you


will get a message saying if you why this item, you will be supporting


sharks in the real world. You can see the impact you will make. Or if


it is a branded level, say you are playing a game like angry birds, you


get to the end of the level you are playing and a new level will appear,


which could be about protecting the oceans or the environment or


endangered species. Do people want to feel they are being sold to in


that way? If you play, it is for enjoyment. Do you feel like you are


being sold to do if branded content is in the game? No. This is purpose


driven marketing. It is talking to human values. At the start of the


year, the charities aid foundation did a study of demos and 87% said


they think games are perfectly placed to raise awareness of social


issues. We see this happening with millennials in generation Z. They


are not tech savvy, but socially conscious too. Your background is


pretty impressive. You have got your MBE already. 2015, you were named in


the top 100 women in tech. The list is long. Ben and I both said that we


are always told it is tough for women in technology. Is that your


experience? We meet a lot of women in tech because of what we do as a


living, so we don't know. I have been in gaming for 17 years, so it


is difficult for me to add to that as it is a world I have already


known. It is a friendly community. It is male dominated, but it is


getting better. The number of women in the games industry has doubled in


about eight years. We are about 22% women in the industry. But I have


heard of examples where if I am going to a meeting, people I have


not met think I am a man because I am called Jude. I have not come


across problems in gaming, but in wider tech, there are comments like,


it must be easier for you to raise money because you have a rich


husband. That would make me extremely cross. I was more


determined to raise the money after that! All of this came to light


recently with that Google memo that then went all around the world


suggesting that women can't work in tech because they are wired


differently. And Google sacked the employee who sent that memo. You


have written about your view of that. You think they were right to


sack him. I think so. We have to fix the problem. By Google making an


example of this person, it says it was the wrong thing to do. We have


to tackle the unconscious bias which is the root of the problem. We can


put more women into the industry, but it is our perceptions that have


to change. Thanks for coming in. Fascinating to hear about Playmobil


and your background. In a minute, we will look at the business pages.


Before that, a reminder of how you can get in touch with us. The


Business Live pages where you can stay up-to-date with all the


breaking news. You can get insight from our team of editors around the


world. And we want to hear from you too. Get involved on the BBC


Business Live web page. We are also on Twitter and Facebook. Business


Live, on TV and online, whenever you need to know. And our viewers are a


savvy lot if you go by the tweets about where you get your holiday


money. Not at the airport, the worst place. James says, I do it on my


smartphone. Another says, I use a special cover card which doesn't


charge fees. Another says, I am on holiday now and I got my money from


a department store online. It offered next they click and select


the Jane Sydenham is joining


us again to discuss. game is joining us again to select


and pages. I guess his forces going in the direction. On the one hand,


Emmanuel Macron wants to free up employment practices in France which


have historically been a rigid. The other hand, that is making life


worse for delivery drivers who feel that they don't have many rights.


But the site but changes in levels are cheaper and more flexible to


move around. But there was a suggestion they could lose out.


There is a fear that arise they have be further diminished and don't feel


well protected. It is interesting that that should be in the news on


the same day we are talking about Uber looking to go public.


Absolutely. But it may be a long way away.


We got woken up by some heavy showers this morning across


north-western parts of England, West Wales, some thunderstorms as well.


But for many of us today, it is a day of sunshine and showers. Some of


those showers will be


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