:00:12. > :00:18.Hello, this is Outside Source, we start with revelations from the
:00:19. > :00:21.Panama papers, this time we focus on the billions of dollars being moved
:00:22. > :00:25.out of China and how that is affecting property prices worldwide.
:00:26. > :00:30.The World Health Organisation has warned that the world faces an
:00:31. > :00:34.unrelenting march of diabetes. Most of it caused by our unhealthy
:00:35. > :00:38.lifestyles. It was a good night for Ted Cruz and for Bernie Sanders,
:00:39. > :00:41.both claiming big victories in primary contests in Wisconsin. We
:00:42. > :00:48.will discuss what this means for Donald Trump's chances for the White
:00:49. > :00:50.House. What's up as encrypting every message sent to the app is that we
:00:51. > :01:11.get you more on what that means. The millions of dollars leaving
:01:12. > :01:15.China to buy properties around the world have been revealed, leaked
:01:16. > :01:21.files from the secretive Panamanian law firm show a strong link between
:01:22. > :01:29.the ruling elite and the global property market. Almost all of the
:01:30. > :01:33.law firm businesses come from China making it the biggest market. The
:01:34. > :01:37.files show staggering amounts of cash in a move which is in the
:01:38. > :01:48.mining the economy and funding overseas markets.
:01:49. > :01:49.They're desperate to keep their money safe.
:01:50. > :01:52.Many are anxious to smuggle their wealth out of China, away
:01:53. > :01:56.I met a man who works as a money mule, carrying cash
:01:57. > :02:06.TRANSLATION: I strap the money to my body or carry a small bag.
:02:07. > :02:15.They target those with lots of luggage or who are nervous.
:02:16. > :02:18.Even the Chinese elite are keeping their money offshore.
:02:19. > :02:21.We showed you leaked files from Mossack Fonseca that revealed
:02:22. > :02:28.how the relatives of China's leaders use off shore companies.
:02:29. > :02:31.Now we have learned China is the firm's biggest market.
:02:32. > :02:33.Mossack Fonseca manages more than 16,000 offshore companies
:02:34. > :02:43.It is not just people tied to the leadership, people are moving
:02:44. > :02:47.out of China on a scale never seen before and much of that money passes
:02:48. > :02:59.Then the money has to go somewhere and is often parked in real estate.
:03:00. > :03:15.This woman works for a company that lists companies abroad.
:03:16. > :03:18.In the UK, typically London is popular, just in the last quarter
:03:19. > :03:30.we have seen Brighton has seen a 700% increase in popularity.
:03:31. > :03:32.Every Chinese citizen can transfer ?35,000 a year out side the country.
:03:33. > :03:38.But for those who want to hide their wealth,
:03:39. > :03:51.The outflow of capital is something the Chinese government is unhappy
:03:52. > :03:58.But the facts that they are giving it a fair bit of priority and yet
:03:59. > :04:01.the scale of problem remains so large means they're not entirely
:04:02. > :04:16.Across Hong Kong it is common to see visitors from mainland China
:04:17. > :04:20.Think of it as a similar symbol for what
:04:21. > :04:22.for what is happening around the globe.
:04:23. > :04:24.Chinese leaders are spending their money elsewhere.
:04:25. > :04:41.They're protecting themselves, but making China more vulnerable.
:04:42. > :04:48.I spoke earlier about how much attention this is getting inside
:04:49. > :04:55.China. Pretty much silence. There are two ironies from the story, one
:04:56. > :05:02.is Panama and the most searched terms but have the least number of
:05:03. > :05:12.returns, people are looking but not finding. The Chinese leaders are not
:05:13. > :05:17.mentioned and if you take the president, the paper also connects
:05:18. > :05:24.his family members to offshore bank accounts. If you take that because
:05:25. > :05:29.the president when he came to power, he Lord and anti-corruption com
:05:30. > :05:34.pain, he is fighting against corruption but if you see that it is
:05:35. > :05:39.extraordinary. This is the kind of divide between rich and poor which
:05:40. > :05:44.is condemning capitalist society. This is exactly what is happening in
:05:45. > :05:49.China now. For most of the ordinary Chinese people are they surprised?
:05:50. > :05:51.Probably not because they know that wealthy people and the politically
:05:52. > :05:57.well-connected people have the resources and the means and ways to
:05:58. > :06:01.send the money offshore and for ordinary Chinese citizens, they are
:06:02. > :06:06.hard because there is a limit every year, they can only send about
:06:07. > :06:11.50,000 US dollars, that is not applying to everyone. The World
:06:12. > :06:16.Health Organisation has warned we are facing an unrelenting march of
:06:17. > :06:23.diabetes. This is a disease which now affects nearly one in 11 adult
:06:24. > :06:26.and that is an increase of around 400% since 1980, what is more is it
:06:27. > :06:30.is a global issue and there are variations. This is the Middle East
:06:31. > :06:43.seeing the largest increase in cases. Type two diabetes, the most
:06:44. > :06:47.common form is closely linked to lifestyle and what we have seen in
:06:48. > :06:50.the Middle East is this transition which is more sedentary and eating
:06:51. > :06:57.more unhealthy food so as obesity has increased, so to have rates of
:06:58. > :07:01.type two diabetes. So that his health and lack of activity? What
:07:02. > :07:10.can governments do about it and what measures are taken? I spoke to the
:07:11. > :07:14.World Health Organisation and said all we have to do is persuade
:07:15. > :07:17.everyone to eat more healthy and eat more exercise. It sounds so simple
:07:18. > :07:24.and yet it is one of the biggest problem is a public health. In the
:07:25. > :07:28.UK we have spoken about a sugar tax. And Mexico have really introduced
:07:29. > :07:32.it. Trying to get food to be healthier in the first place,
:07:33. > :07:35.persuading manufacturers to stop marketing food at children is one
:07:36. > :07:39.thing they are calling for as his reformulation of products, making
:07:40. > :07:45.sure food has less fat and sugar in the first place. Also a whole host
:07:46. > :07:47.of ideas, encouraging people to be more active, designing towns and
:07:48. > :07:53.cities other cycling and walking can be a part rather than relying on the
:07:54. > :07:58.car. It requires an approach that as a whole of society, it is
:07:59. > :08:05.governments as well as in food malefactors, everybody has a role to
:08:06. > :08:09.play. So many migrants are now arriving at the southern borders of
:08:10. > :08:14.the European Union, especially Greece and Italy, that the EU is
:08:15. > :08:17.suggesting more plans to distribute them among member states. Here's how
:08:18. > :08:22.the challenge was outlined in Brussels today. The problem we need
:08:23. > :08:27.to fix is at the system largely relies on where a person first
:08:28. > :08:30.arrives to decide which member states should handle an asylum
:08:31. > :08:35.claim. This is neither fair nor sustainable given the reality of
:08:36. > :08:40.folly into people which are putting a huge burden on a few member
:08:41. > :08:44.states. Let's show you some of the facts about the pressure building up
:08:45. > :08:53.just on the country of Greece. This year alone more than 152 thousand
:08:54. > :09:01.migrants have entered. 53% landed on the Ireland of Lesbos and it is
:09:02. > :09:08.thought that 366, and awful figure, have died. This is something of the
:09:09. > :09:13.EU wants to deal with and we want to show you what it means when the
:09:14. > :09:17.viewpoint of one man. Now this man is an Egyptian man, Mustapha, he is
:09:18. > :09:26.working as a grave-digger in a cemetery on Lesbos. One girl, three
:09:27. > :09:38.months she died in the sea, we found her body, no head. This grave has
:09:39. > :09:57.two girls, every girl three months and one of them no head.
:09:58. > :10:13.These people come and think for a normal life with democracy but it is
:10:14. > :10:34.not really, it is only a dream not a reality. This is the reality. Yes.
:10:35. > :10:48.For you personally it must be so hard? It is very difficult. The what
:10:49. > :10:53.can I do? Icon to anything. I can't stop the war, I can't tell people to
:10:54. > :11:11.come to Europe, only I can help. The former Bosnian Serb leader has
:11:12. > :11:15.described the guilty verdict handed down to a Ward tribunal as
:11:16. > :11:23.monstrous. During his first court appearance being sentenced, carriage
:11:24. > :11:33.claimed his innocence. There are some distressing images in this
:11:34. > :11:36.report. -- Radovan Karadzic. This hearing was requested by Radovan
:11:37. > :11:41.Karadzic to address his mental health and the conditions of his
:11:42. > :11:49.detention. This is where he's being held, the United Nations detention
:11:50. > :11:53.had unit. Radovan Karadzic's lawyer, Peter Robinson told the judge that
:11:54. > :11:59.he had been like a caged tiger since he received that guilty verdict and
:12:00. > :12:04.was sentenced to 30 years which means he will spend the rest of it
:12:05. > :12:11.behind bars. Among the charges he was found guilty of international
:12:12. > :12:15.crimes, genocide and more than 8000 Muslim men, women and boys were
:12:16. > :12:22.murdered, their bodies buried in mass graves. Whatsapp address the
:12:23. > :12:29.judge and asked them to free him and provide him with a new laptop to
:12:30. > :12:33.prepare his appeal. He had already been packing his bags and head of
:12:34. > :12:40.last months guilty verdict because he was so confident that he would be
:12:41. > :12:48.cleared. The judge said he would look into the request for a new
:12:49. > :12:55.laptop and he has to Whatsapp to put his release in writing. -- Radovan
:12:56. > :12:57.Karadzic. In a moment we bring you more on the new encryption
:12:58. > :13:16.technology with Whatsapp. For some days now the hopes of Tata
:13:17. > :13:21.steel has rested on the sale. In a BBC interview Mr Gupta admitted his
:13:22. > :13:27.proposal was written on the back of an envelope. It had been done on the
:13:28. > :13:33.back of an envelope because we had not had access and this thing
:13:34. > :13:38.started a week ago. What you done so far is back of the envelope
:13:39. > :13:44.calculation? Yes and based on the fact we have friends in the industry
:13:45. > :13:49.and colleagues and some other people who joined us recently so we have
:13:50. > :13:54.the information at hand. Have you been on the ground in Port Talbot?
:13:55. > :13:58.No, I have been passed it many times. This came as a complete
:13:59. > :14:02.surprise to me and when it happened it was a complete surprise, it is a
:14:03. > :14:09.daunting proposition and I'm not suggesting it is easy or obvious.
:14:10. > :14:18.You're watching Outside Source, our lead story is the latest revelations
:14:19. > :14:23.from the Panama paper so that the rich in China have moved millions of
:14:24. > :14:29.dollars into offshore accounts, much of that being pumped into the global
:14:30. > :14:36.property market. Making news on our language services, let's look at BBC
:14:37. > :14:40.Arabic reporting on Libya. Tripoli's authorities have ceded power to UN
:14:41. > :14:44.backed authorities. The new leadership faces opposition in other
:14:45. > :14:49.parts of the country. The Italian fashion house Gucci has been banned
:14:50. > :14:52.from using an advert in the UK which features an unhealthily thin model.
:14:53. > :14:57.Did she has defended the image saying the model is toned and slim.
:14:58. > :15:05.That is one of the most read stories on the BBC news app. The messaging
:15:06. > :15:08.service Whatsapp has strengthened its level of encryption. This means
:15:09. > :15:14.all messages sent will not be readable because if they are
:15:15. > :15:19.intercepted. That show you some statistics. There are more than 1
:15:20. > :15:27.billion users and if you look at their activity, some 70% of them are
:15:28. > :15:30.active every day and between them, they are sending a huge number of
:15:31. > :15:35.messengers. 30 billion messages are sent each day. Our technology
:15:36. > :15:39.correspondent told us what this level of encryption will mean for
:15:40. > :15:43.all of these people. When your messages passing across the Internet
:15:44. > :15:49.and go to your mobile phone providers computers and Whatsapp
:15:50. > :15:54.servers, all the way along a chain your messages are scrambled and if
:15:55. > :16:01.anyone taps into them, no use. Why have they done this? Whatsapp has
:16:02. > :16:05.been working on this for a while, because it is on so many platforms
:16:06. > :16:10.it has taken a long time to marry everything together although it does
:16:11. > :16:14.come at the same time as is big conflict between FBI and Apple where
:16:15. > :16:17.they are saying should the law enforcement have access to encrypt
:16:18. > :16:24.data or not? It has come at timely moment. This means they could not be
:16:25. > :16:29.a back door, not even Whatsapp could let in MI6 or the FBI? A cynic may
:16:30. > :16:32.say perhaps there is a back door and there was one than the general
:16:33. > :16:36.public would never know but the technology companies have been very
:16:37. > :16:41.vocal not providing that. The moment you put a back door in then
:16:42. > :16:45.criminals can get hold of that and use it as well so the second you
:16:46. > :16:50.break the encryption process and make it insecure, it is insecure for
:16:51. > :17:00.everyone. Time now for Outside Source business. Pfizer has scrapped
:17:01. > :17:04.a new deal, the move would prevent US firms from slashing tax bills
:17:05. > :17:12.with merging with companies in lower tax states so let's look at this
:17:13. > :17:20.case. Pfizer as a US company pays 35% in corporate tax but let's move
:17:21. > :17:25.over. If it's merged with a company in Ireland it would pay 12.5% which
:17:26. > :17:33.is good for shareholders, not so much for the government 's own
:17:34. > :17:37.books. American companies have a problem. They are facing a
:17:38. > :17:41.relatively high tax company and have to pay tax on their foreign income
:17:42. > :17:46.as well. They can move to Ireland in this case, set up a new residence
:17:47. > :17:51.there, pay 12.5% tax, a much lower rate and everyone is happy. They can
:17:52. > :17:55.still be based in the United States, employ a lot of people but a smaller
:17:56. > :17:59.proportion of people the tax at that higher rate and they're not doing
:18:00. > :18:02.anything illegal. Don't forget these companies have a duty to minimise
:18:03. > :18:07.their tax bills. That is what they are there for. The White House said
:18:08. > :18:12.this is cash we could put back into the Treasury and public services?
:18:13. > :18:16.Absolutely the White House has described it as an insidiously poll.
:18:17. > :18:20.Basically they see it has rather unpatriotic that an American company
:18:21. > :18:23.should effectively decide to pronounce its American citizenship
:18:24. > :18:27.and be based elsewhere. A large company pays a lot of taxpayer the
:18:28. > :18:30.tax is being paid in Ireland rather than the United States than the
:18:31. > :18:34.United States Treasury would be losing out. Pfizer is a big fish but
:18:35. > :18:38.not the only one in the sea playing at this game? No tax inversions have
:18:39. > :18:46.becoming creasing the common in many years an an awful lot of companies
:18:47. > :18:50.have done it. This was a major merger, $160 billion, that is one of
:18:51. > :18:55.the largest we have ever seen or it would have been. The primary reason
:18:56. > :18:59.behind it wasn't to cut the tax bill, it was not the case of two
:19:00. > :19:04.companies deciding there was a lot of business logic, there was some
:19:05. > :19:10.amount but the primary motivation was to cut a tax bill and that is
:19:11. > :19:13.something the US authorities to round up on. They want to deter
:19:14. > :19:18.others from doing the same Salim Chidgey use new rules and
:19:19. > :19:23.regulations which many experts say were designed to target this
:19:24. > :19:28.particular deal. San Francisco has become the first deal for full paper
:19:29. > :19:33.rental leave. Why is there such a big deal? It is the only developed
:19:34. > :19:40.country which does not guarantee paid maternity or parental leave to
:19:41. > :19:45.workers. The ordinance passes unanimously on the first reading as
:19:46. > :19:48.amended. San Francisco's helping the parents breathe easier. Starting
:19:49. > :19:53.next year the city will make employers offer six weeks paid
:19:54. > :19:57.maternity leave to workers. That is an existing law which only offers
:19:58. > :20:01.partial pay for the same time frame. We need to stop forcing parents to
:20:02. > :20:07.make the terrible decision about weather to bond with the child or
:20:08. > :20:12.weather to put food on the table. Supporters on the bill say it is the
:20:13. > :20:16.latest step to addressing income equality. It is a stretch to raise a
:20:17. > :20:22.new boy a toddler, especially in San Francisco, it is really hard. We
:20:23. > :20:29.need that extra help. It is no surprise San Francisco's taking the
:20:30. > :20:34.lead on this. The city has a ready led national wages on health care
:20:35. > :20:39.and others. My only objection is that if we do not deal with it in a
:20:40. > :20:41.way that put San Francisco businesses at a disadvantage
:20:42. > :20:47.competitively and also it adds to the burden of doing business in the
:20:48. > :20:51.county of San Francisco. The US is the only developed country with no
:20:52. > :20:55.guaranteed parental leave or maternity cover for workers. In the
:20:56. > :21:00.UK parents get 39 weeks well in Sweden mothers get a whopping 68
:21:01. > :21:04.weeks and nearly full salary. While this is a big leap in the US, by
:21:05. > :21:09.international standards, it is baby steps.
:21:10. > :21:15.If you live in Nigeria, it may be hard to believe the country is the
:21:16. > :21:19.sixth largest producer of crude oil. That is because people are having to
:21:20. > :21:23.queue for hours, even days to buy petrol. The BBC hit the streets of
:21:24. > :21:34.Lagos to find how some people have been affected.
:21:35. > :21:47.How do I feed my family if I spent all these hours here everyday? I
:21:48. > :21:56.have to borrow this tag because my car is on the way.
:21:57. > :22:04.As you can see there are a lot of vehicles waiting. I have been
:22:05. > :22:13.interviewing since 7am. And now I am nowhere. I'm nowhere.
:22:14. > :22:16.Yesterday I was in a queue for three hours and I didn't buy so it has
:22:17. > :22:39.been terrible. How could I know? I don't know
:22:40. > :22:45.anything about this. We don't know. We don't know who to blame, we have
:22:46. > :22:55.is watching. They then tell us what is really happening. -- don't. So
:22:56. > :23:00.Nigerians don't know why this is happening. Neither does it seems the
:23:01. > :23:06.spokesman for the National petroleum Corporation when the BBC spoke to
:23:07. > :23:10.him a little earlier. We ran into a shortage when the government came in
:23:11. > :23:17.and now a lot of problems have been inherited. This has been from a
:23:18. > :23:22.distorted system of distribution and logistics problem so there has been
:23:23. > :23:29.a shortage but in the last few days things have improved. Safarova is
:23:30. > :23:34.known for its famous suits and impeccable cuts. Today history was
:23:35. > :23:40.made when for the first time in 200 years a shop was opened by a female
:23:41. > :23:43.must tailor. Catherine sergeants who is dressed royalty, politicians,
:23:44. > :23:46.actors and business leaders has opened her premises in Mayfair and
:23:47. > :24:05.was speaking to us earlier. Savile Row for a years it has meant
:24:06. > :24:12.quality and it has been very male but not any more.
:24:13. > :24:21.The name is up there. Good feeling? A very good feeling. I'm a first
:24:22. > :24:32.female Master Cressman to have this on here. I think that is quite
:24:33. > :24:39.something. Here is your jacket sir. Catherine Sargent Lantos kills on
:24:40. > :24:43.several Row. Born in Leeds the first day she visited the home of
:24:44. > :24:46.tailoring it saved her life. All of the Taylors look like clubs, they
:24:47. > :24:52.had beautiful uniforms and garments in the window so I was determined
:24:53. > :24:57.that, I thought this is where once you work. Introducing the best
:24:58. > :25:03.dressed street in the world. Savile Row was founded by the most famous
:25:04. > :25:09.tale of them all, Sir Henry Paul. Now Henry Paul has a new female
:25:10. > :25:17.maker. She came here for a job in the 90s. She was the one female
:25:18. > :25:21.amongst the number of men and... I did try but that is the way it goes.
:25:22. > :25:27.Things have really changed? Many more women are? Yes absolutely.
:25:28. > :25:32.Perseverance paid off and while she is the first on the road, others
:25:33. > :25:43.will follow. 65% of new trainees are women. What used to be a men only
:25:44. > :25:49.world is changing fast. Do stay with us, you cancel to us and the
:25:50. > :25:50.conversation is at BBC OS. I will be back in a few moments after the
:25:51. > :26:10.weather. It is that time of the evening when
:26:11. > :26:14.we look at weather stories from around the world and we start off in
:26:15. > :26:15.Fiji because a few weeks ago these were some scenes that