Browse content similar to 13/06/2013. Check below for episodes and series from the same categories and more!
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BBC World News. Now, the latest financial news with World Business | :00:02. | :00:12. | |
:00:12. | :00:19. | ||
Report. Pressure mounts on Google over its tax affairs after a | :00:19. | :00:23. | |
scathing report by the UK Parliament. The search giant says | :00:23. | :00:28. | |
it's doing nothing illegal. Nerves return to the Nikkei - Japan's | :00:28. | :00:32. | |
stock market plunges as much as 6% after a sell-off on Wall Street. | :00:32. | :00:42. | |
All eyes on the US Federal Reserve meeting next week. Welcome to World | :00:42. | :00:48. | |
Business Report. Also in the programme: we go live to Athens and | :00:48. | :00:52. | |
speak to an economist about the fresh turmoil there. Google is | :00:53. | :00:56. | |
under fire again this morning after a report by members of the UK | :00:56. | :01:01. | |
parliament has delivered a scathing attack on its tax affairs. The | :01:01. | :01:02. | |
influential Public Accounts Committee says Britain's tax | :01:02. | :01:07. | |
authorities should "fully investigate" the internet giant. It | :01:07. | :01:10. | |
says Google runs a "highly contrived" scheme to avoid paying | :01:10. | :01:13. | |
tax on its multi-billion dollar UK profits by running its UK business | :01:13. | :01:23. | |
:01:23. | :01:28. | ||
from Ireland. The practice of making payments from advertising | :01:28. | :01:32. | |
through Northern Ireland has no other purpose but to avoid | :01:32. | :01:36. | |
corporation tax, so the committee argues. They believe the company | :01:36. | :01:42. | |
needs to pay tax where it earns its products. No they have a very | :01:42. | :01:47. | |
complex web of companies across many countries where the sole | :01:47. | :01:52. | |
purpose appears to be to avoid paying their fair share of tax on | :01:52. | :01:58. | |
the products they make from the business they do in the UK. | :01:58. | :02:07. | |
committee says that Google has sales of �11.5 billion between 2000 | :02:07. | :02:12. | |
seats and 2011. It claims the property, would have been enormous | :02:12. | :02:19. | |
and has no real figure but it says that they paid just �10 million in | :02:19. | :02:23. | |
corporation tax during that period. A lot like to start by reminding | :02:23. | :02:27. | |
you that it's a very serious offence to mislead the | :02:27. | :02:32. | |
parliamentary committee. Last month the MPs said whistle-blowers told | :02:32. | :02:37. | |
them that Google staff were selling in the UK rather than from Ireland. | :02:37. | :02:45. | |
team and execute the transaction and no money changes hands. Google | :02:45. | :02:50. | |
said it complies with all of the tax rules and it's the politicians | :02:50. | :02:57. | |
to make the rules. The MPs have criticised customs are not doing | :02:57. | :03:00. | |
anything and they want the Government to take international | :03:00. | :03:04. | |
action. Shares in Japan have sunk by almost 6% today and the Japanese | :03:04. | :03:14. | |
yen has jumped to a two-month high against the dollar. To explain why, | :03:14. | :03:24. | |
we go to our Asia business hub and speak to Rico Hizon. This is a | :03:24. | :03:30. | |
story of daily volatility in Japan but today it's quite cute? There | :03:30. | :03:35. | |
seems to be no end in sight. It's a very steep last particularly the | :03:35. | :03:39. | |
Japanese stock market but this is not the first time it has dropped | :03:39. | :03:46. | |
this much. The Nikkei plunged I % for a third time in the past three | :03:46. | :03:49. | |
weeks and Beth yen is very strong and that is the culprit and it has | :03:50. | :03:56. | |
been strengthened from a year low against the US dollar two weeks ago. | :03:56. | :04:03. | |
The yen is appreciating and it is eroding export earnings. It hurts | :04:03. | :04:07. | |
competitiveness by making Japanese products more expensive such as | :04:08. | :04:14. | |
Toyota are down 5% today and some brokerage firms have lost 4% and | :04:14. | :04:22. | |
consumer lending has slumped 8%. Investors are worried about the | :04:22. | :04:27. | |
strength of the yen and they stress there is no good use to boost the | :04:27. | :04:32. | |
markets here at the moment. Other Asian markets continued to slide | :04:32. | :04:38. | |
down to a six-month low fuelled by this worry about the Japanese yen | :04:38. | :04:42. | |
and also about monetary policy in the US and in Japan and all eyes | :04:43. | :04:48. | |
will be on the US Federal Reserve with more stimulus measures. Hong | :04:48. | :04:55. | |
Kong has also retracted and others such as Australia and Singapore | :04:55. | :05:03. | |
also lower today. It's a very volatile market in Japan today. | :05:03. | :05:06. | |
Greece's government is battling with the fallout from its decision | :05:06. | :05:09. | |
to shut down state TV and radio as part of its spending cuts. The | :05:09. | :05:11. | |
decision has triggered fierce opposition from within the | :05:11. | :05:13. | |
coalition government and the country's two largest labour unions | :05:13. | :05:19. | |
have called a 24-hour general strike for today. The latest crisis | :05:19. | :05:22. | |
adds to a terrible week for Greece, after the planned privatisation of | :05:22. | :05:25. | |
the state gas company failed to attract any bidders, and the MSCI | :05:25. | :05:35. | |
:05:35. | :05:37. | ||
stock market index reclassified the country as an emerging market. We | :05:37. | :05:40. | |
will go live to Athens. Professor Yanis Varoufakis is Professor of | :05:40. | :05:49. | |
Economics at the University of Athens. You have always been, after | :05:49. | :05:53. | |
speaking to you many times, quite negative in terms of how things are | :05:54. | :06:00. | |
going in Greece. Particularly, this week is another incredibly | :06:00. | :06:03. | |
difficult week with that decision to close the broadcaster and its | :06:03. | :06:10. | |
kick off more action? We have the inane handling of the inevitable | :06:10. | :06:17. | |
crisis. That's due to the fact that for three years now, as the | :06:17. | :06:21. | |
International Monetary Fund has acknowledged, we have been in | :06:21. | :06:27. | |
denial. They are very basic predicaments. Greece has a public | :06:27. | :06:30. | |
sector which is bankrupt for over four years. The banking system is | :06:31. | :06:37. | |
bankrupt. This has created a deflationary cycle. During this | :06:37. | :06:46. | |
cycle, the Government tries to ward off and privatise assets. This is | :06:46. | :06:51. | |
not a great wonder about this whole mess creating ripples felt | :06:51. | :06:56. | |
throughout the Greek economy constantly. This move to close the | :06:56. | :07:01. | |
public broadcaster has led to a political crisis, would you say? I | :07:01. | :07:05. | |
understand within the Coalition, key members are saying they're not | :07:05. | :07:13. | |
with the Government in its decision. It was an intentional crisis, | :07:13. | :07:16. | |
unintentional, and the Prime Minister knew it. Imagine in | :07:16. | :07:26. | |
Cameron announced the closure of the BBC, all radio and TV, | :07:26. | :07:31. | |
everything. Effective immediately. That would cause a crisis would it | :07:31. | :07:35. | |
not and it would be a very foolish Prime Minister that would cause | :07:35. | :07:44. | |
this crisis. This was partly to take off the agenda but major | :07:44. | :07:51. | |
failures I have mentioned and the privatisation of the gas company. | :07:51. | :07:57. | |
Also, it's about the Coalition partners to put them in a tight | :07:57. | :08:02. | |
position to force them to overthrow him or deny him any vote of | :08:02. | :08:08. | |
confidence in parliament and to make him look strong as a leader | :08:08. | :08:14. | |
just before an early election or they may bend towards his will and | :08:14. | :08:19. | |
make them except his lead in this government. Clearly, was not much | :08:19. | :08:23. | |
faith in how things are going but what do you think will happen next | :08:23. | :08:30. | |
as far as Greece is concerned? Economic, I am afraid, there is no | :08:30. | :08:35. | |
room for any doubt as to the culmination of this deflationary | :08:35. | :08:42. | |
cycle. It's very simple. Last year, investment in this country, a | :08:42. | :08:50. | |
country that has seen GDP collapse by over 30%, investment fell 20% | :08:50. | :08:55. | |
and it was the Government forecast it will fall another 13% and its | :08:55. | :09:03. | |
noun negative investment territory. Any economy in this cycle with | :09:03. | :09:08. | |
negative growth or investment can't hope for anything other than the | :09:08. | :09:14. | |
same old story. We will leave it there but thank you for getting up | :09:14. | :09:23. | |
to join us from Athens. There was a shareholder vote in the biggest | :09:23. | :09:28. | |
advertising advertising agency yesterday backing a $27 million pay | :09:28. | :09:33. | |
package for the chief executive Martin Sorrell which drew fire from | :09:33. | :09:41. | |
critics. 81% of the shareholders voted for the packages but 19% were | :09:41. | :09:46. | |
against it. The Royal Bank of Scotland is expected to announce | :09:46. | :09:51. | |
2000 job losses in the wake of the planned to stand down after five | :09:51. | :09:58. |