06/04/2016 Outside Source

Hello, this is Outside Source, we start with revelations from the

Panama papers, this time we focus on the billions of dollars being moved

out of China and how that is affecting property prices worldwide.

The World Health Organisation has warned that the world faces an

unrelenting march of diabetes. Most of it caused by our unhealthy

lifestyles. It was a good night for Ted Cruz and for Bernie Sanders,

both claiming big victories in primary contests in Wisconsin. We

will discuss what this means for Donald Trump's chances for the White

House. What's up as encrypting every message sent to the app is that we

get you more on what that means. The millions of dollars leaving

China to buy properties around the world have been revealed, leaked

files from the secretive Panamanian law firm show a strong link between

the ruling elite and the global property market. Almost all of the

law firm businesses come from China making it the biggest market. The

files show staggering amounts of cash in a move which is in the

mining the economy and funding overseas markets.

They're desperate to keep their money safe.

Many are anxious to smuggle their wealth out of China, away

I met a man who works as a money mule, carrying cash

TRANSLATION: I strap the money to my body or carry a small bag.

They target those with lots of luggage or who are nervous.

Even the Chinese elite are keeping their money offshore.

We showed you leaked files from Mossack Fonseca that revealed

how the relatives of China's leaders use off shore companies.

Now we have learned China is the firm's biggest market.

Mossack Fonseca manages more than 16,000 offshore companies

It is not just people tied to the leadership, people are moving

out of China on a scale never seen before and much of that money passes

Then the money has to go somewhere and is often parked in real estate.

This woman works for a company that lists companies abroad.

In the UK, typically London is popular, just in the last quarter

we have seen Brighton has seen a 700% increase in popularity.

Every Chinese citizen can transfer ?35,000 a year out side the country.

But for those who want to hide their wealth,

The outflow of capital is something the Chinese government is unhappy

But the facts that they are giving it a fair bit of priority and yet

the scale of problem remains so large means they're not entirely

Across Hong Kong it is common to see visitors from mainland China

Think of it as a similar symbol for what

for what is happening around the globe.

Chinese leaders are spending their money elsewhere.

They're protecting themselves, but making China more vulnerable.

I spoke earlier about how much attention this is getting inside

China. Pretty much silence. There are two ironies from the story, one

is Panama and the most searched terms but have the least number of

returns, people are looking but not finding. The Chinese leaders are not

mentioned and if you take the president, the paper also connects

his family members to offshore bank accounts. If you take that because

the president when he came to power, he Lord and anti-corruption com

pain, he is fighting against corruption but if you see that it is

extraordinary. This is the kind of divide between rich and poor which

is condemning capitalist society. This is exactly what is happening in

China now. For most of the ordinary Chinese people are they surprised?

Probably not because they know that wealthy people and the politically

well-connected people have the resources and the means and ways to

send the money offshore and for ordinary Chinese citizens, they are

hard because there is a limit every year, they can only send about

50,000 US dollars, that is not applying to everyone. The World

Health Organisation has warned we are facing an unrelenting march of

diabetes. This is a disease which now affects nearly one in 11 adult

and that is an increase of around 400% since 1980, what is more is it

is a global issue and there are variations. This is the Middle East

seeing the largest increase in cases. Type two diabetes, the most

common form is closely linked to lifestyle and what we have seen in

the Middle East is this transition which is more sedentary and eating

more unhealthy food so as obesity has increased, so to have rates of

type two diabetes. So that his health and lack of activity? What

can governments do about it and what measures are taken? I spoke to the

World Health Organisation and said all we have to do is persuade

everyone to eat more healthy and eat more exercise. It sounds so simple

and yet it is one of the biggest problem is a public health. In the

UK we have spoken about a sugar tax. And Mexico have really introduced

it. Trying to get food to be healthier in the first place,

persuading manufacturers to stop marketing food at children is one

thing they are calling for as his reformulation of products, making

sure food has less fat and sugar in the first place. Also a whole host

of ideas, encouraging people to be more active, designing towns and

cities other cycling and walking can be a part rather than relying on the

car. It requires an approach that as a whole of society, it is

governments as well as in food malefactors, everybody has a role to

play. So many migrants are now arriving at the southern borders of

the European Union, especially Greece and Italy, that the EU is

suggesting more plans to distribute them among member states. Here's how

the challenge was outlined in Brussels today. The problem we need

to fix is at the system largely relies on where a person first

arrives to decide which member states should handle an asylum

claim. This is neither fair nor sustainable given the reality of

folly into people which are putting a huge burden on a few member

states. Let's show you some of the facts about the pressure building up

just on the country of Greece. This year alone more than 152 thousand

migrants have entered. 53% landed on the Ireland of Lesbos and it is

thought that 366, and awful figure, have died. This is something of the

EU wants to deal with and we want to show you what it means when the

viewpoint of one man. Now this man is an Egyptian man, Mustapha, he is

working as a grave-digger in a cemetery on Lesbos. One girl, three

months she died in the sea, we found her body, no head. This grave has

two girls, every girl three months and one of them no head.

These people come and think for a normal life with democracy but it is

not really, it is only a dream not a reality. This is the reality. Yes.

For you personally it must be so hard? It is very difficult. The what

can I do? Icon to anything. I can't stop the war, I can't tell people to

come to Europe, only I can help. The former Bosnian Serb leader has

described the guilty verdict handed down to a Ward tribunal as

monstrous. During his first court appearance being sentenced, carriage

claimed his innocence. There are some distressing images in this

report. -- Radovan Karadzic. This hearing was requested by Radovan

Karadzic to address his mental health and the conditions of his

detention. This is where he's being held, the United Nations detention

had unit. Radovan Karadzic's lawyer, Peter Robinson told the judge that

he had been like a caged tiger since he received that guilty verdict and

was sentenced to 30 years which means he will spend the rest of it

behind bars. Among the charges he was found guilty of international

crimes, genocide and more than 8000 Muslim men, women and boys were

murdered, their bodies buried in mass graves. Whatsapp address the

judge and asked them to free him and provide him with a new laptop to

prepare his appeal. He had already been packing his bags and head of

last months guilty verdict because he was so confident that he would be

cleared. The judge said he would look into the request for a new

laptop and he has to Whatsapp to put his release in writing. -- Radovan

Karadzic. In a moment we bring you more on the new encryption

technology with Whatsapp. For some days now the hopes of Tata

steel has rested on the sale. In a BBC interview Mr Gupta admitted his

proposal was written on the back of an envelope. It had been done on the

back of an envelope because we had not had access and this thing

started a week ago. What you done so far is back of the envelope

calculation? Yes and based on the fact we have friends in the industry

and colleagues and some other people who joined us recently so we have

the information at hand. Have you been on the ground in Port Talbot?

No, I have been passed it many times. This came as a complete

surprise to me and when it happened it was a complete surprise, it is a

daunting proposition and I'm not suggesting it is easy or obvious.

You're watching Outside Source, our lead story is the latest revelations

from the Panama paper so that the rich in China have moved millions of

dollars into offshore accounts, much of that being pumped into the global

property market. Making news on our language services, let's look at BBC

Arabic reporting on Libya. Tripoli's authorities have ceded power to UN

backed authorities. The new leadership faces opposition in other

parts of the country. The Italian fashion house Gucci has been banned

from using an advert in the UK which features an unhealthily thin model.

Did she has defended the image saying the model is toned and slim.

That is one of the most read stories on the BBC news app. The messaging

service Whatsapp has strengthened its level of encryption. This means

all messages sent will not be readable because if they are

intercepted. That show you some statistics. There are more than 1

billion users and if you look at their activity, some 70% of them are

active every day and between them, they are sending a huge number of

messengers. 30 billion messages are sent each day. Our technology

correspondent told us what this level of encryption will mean for

all of these people. When your messages passing across the Internet

and go to your mobile phone providers computers and Whatsapp

servers, all the way along a chain your messages are scrambled and if

anyone taps into them, no use. Why have they done this? Whatsapp has

been working on this for a while, because it is on so many platforms

it has taken a long time to marry everything together although it does

come at the same time as is big conflict between FBI and Apple where

they are saying should the law enforcement have access to encrypt

data or not? It has come at timely moment. This means they could not be

a back door, not even Whatsapp could let in MI6 or the FBI? A cynic may

say perhaps there is a back door and there was one than the general

public would never know but the technology companies have been very

vocal not providing that. The moment you put a back door in then

criminals can get hold of that and use it as well so the second you

break the encryption process and make it insecure, it is insecure for

everyone. Time now for Outside Source business. Pfizer has scrapped

a new deal, the move would prevent US firms from slashing tax bills

with merging with companies in lower tax states so let's look at this

case. Pfizer as a US company pays 35% in corporate tax but let's move

over. If it's merged with a company in Ireland it would pay 12.5% which

is good for shareholders, not so much for the government 's own

books. American companies have a problem. They are facing a

relatively high tax company and have to pay tax on their foreign income

as well. They can move to Ireland in this case, set up a new residence

there, pay 12.5% tax, a much lower rate and everyone is happy. They can

still be based in the United States, employ a lot of people but a smaller

proportion of people the tax at that higher rate and they're not doing

anything illegal. Don't forget these companies have a duty to minimise

their tax bills. That is what they are there for. The White House said

this is cash we could put back into the Treasury and public services?

Absolutely the White House has described it as an insidiously poll.

Basically they see it has rather unpatriotic that an American company

should effectively decide to pronounce its American citizenship

and be based elsewhere. A large company pays a lot of taxpayer the

tax is being paid in Ireland rather than the United States than the

United States Treasury would be losing out. Pfizer is a big fish but

not the only one in the sea playing at this game? No tax inversions have

becoming creasing the common in many years an an awful lot of companies

have done it. This was a major merger, $160 billion, that is one of

the largest we have ever seen or it would have been. The primary reason

behind it wasn't to cut the tax bill, it was not the case of two

companies deciding there was a lot of business logic, there was some

amount but the primary motivation was to cut a tax bill and that is

something the US authorities to round up on. They want to deter

others from doing the same Salim Chidgey use new rules and

regulations which many experts say were designed to target this

particular deal. San Francisco has become the first deal for full paper

rental leave. Why is there such a big deal? It is the only developed

country which does not guarantee paid maternity or parental leave to

workers. The ordinance passes unanimously on the first reading as

amended. San Francisco's helping the parents breathe easier. Starting

next year the city will make employers offer six weeks paid

maternity leave to workers. That is an existing law which only offers

partial pay for the same time frame. We need to stop forcing parents to

make the terrible decision about weather to bond with the child or

weather to put food on the table. Supporters on the bill say it is the

latest step to addressing income equality. It is a stretch to raise a

new boy a toddler, especially in San Francisco, it is really hard. We

need that extra help. It is no surprise San Francisco's taking the

lead on this. The city has a ready led national wages on health care

and others. My only objection is that if we do not deal with it in a

way that put San Francisco businesses at a disadvantage

competitively and also it adds to the burden of doing business in the

county of San Francisco. The US is the only developed country with no

guaranteed parental leave or maternity cover for workers. In the

UK parents get 39 weeks well in Sweden mothers get a whopping 68

weeks and nearly full salary. While this is a big leap in the US, by

international standards, it is baby steps.

If you live in Nigeria, it may be hard to believe the country is the

sixth largest producer of crude oil. That is because people are having to

queue for hours, even days to buy petrol. The BBC hit the streets of

Lagos to find how some people have been affected.

How do I feed my family if I spent all these hours here everyday? I

have to borrow this tag because my car is on the way.

As you can see there are a lot of vehicles waiting. I have been

interviewing since 7am. And now I am nowhere. I'm nowhere.

Yesterday I was in a queue for three hours and I didn't buy so it has

been terrible. How could I know? I don't know

anything about this. We don't know. We don't know who to blame, we have

is watching. They then tell us what is really happening. -- don't. So

Nigerians don't know why this is happening. Neither does it seems the

spokesman for the National petroleum Corporation when the BBC spoke to

him a little earlier. We ran into a shortage when the government came in

and now a lot of problems have been inherited. This has been from a

distorted system of distribution and logistics problem so there has been

a shortage but in the last few days things have improved. Safarova is

known for its famous suits and impeccable cuts. Today history was

made when for the first time in 200 years a shop was opened by a female

must tailor. Catherine sergeants who is dressed royalty, politicians,

actors and business leaders has opened her premises in Mayfair and

was speaking to us earlier. Savile Row for a years it has meant

quality and it has been very male but not any more.

The name is up there. Good feeling? A very good feeling. I'm a first

female Master Cressman to have this on here. I think that is quite

something. Here is your jacket sir. Catherine Sargent Lantos kills on

several Row. Born in Leeds the first day she visited the home of

tailoring it saved her life. All of the Taylors look like clubs, they

had beautiful uniforms and garments in the window so I was determined

that, I thought this is where once you work. Introducing the best

dressed street in the world. Savile Row was founded by the most famous

tale of them all, Sir Henry Paul. Now Henry Paul has a new female

maker. She came here for a job in the 90s. She was the one female

amongst the number of men and... I did try but that is the way it goes.

Things have really changed? Many more women are? Yes absolutely.

Perseverance paid off and while she is the first on the road, others

will follow. 65% of new trainees are women. What used to be a men only

world is changing fast. Do stay with us, you cancel to us and the

conversation is at BBC OS. I will be back in a few moments after the

weather. It is that time of the evening when

we look at weather stories from around the world and we start off in

Fiji because a few weeks ago these were some scenes that