:00:00. > :00:00.he could go to prison for five years. A number of other people also
:00:00. > :00:19.on trial. Those are the latest headlines. For the latest Financial
:00:20. > :00:24.News with Sally, that is coming up. The World Economic Forum kicks off
:00:25. > :00:31.in Switzerland. We talked to the movers and shakers. How to spend it.
:00:32. > :00:37.Business is booming for the fine art market with Christie is set to
:00:38. > :00:50.announce record profits. -- Christies. Welcome. 1000
:00:51. > :00:55.organisations and 50 heads of state also along with bosses. It is the
:00:56. > :01:00.annual gathering of the world's most influential people in the Swiss ski
:01:01. > :01:05.resort of Davos. Each year since the 1970s the world's movers and shakers
:01:06. > :01:11.and while two celebrities have met at this forum to discuss the big
:01:12. > :01:15.political issues of the day. There is no crisis over the gathering this
:01:16. > :01:22.year, more that this is that the worst is over and the economy is on
:01:23. > :01:24.the mend. Their row, however, plenty of issues outstanding from the dark
:01:25. > :01:31.days of the economic crisis. It has got plenty of heads of state hot
:01:32. > :01:36.under the collar Dashwood company should pay and were government in
:01:37. > :01:42.the developed world are on a mission to make people and corporate 's pay
:01:43. > :01:48.the taxes they. They have promised to limit the role of tax havens that
:01:49. > :01:52.has translated into more money in Treasury coffers ? Let's go live to
:01:53. > :01:59.Davos. Let's speak to Mark Weinberger from EY. It is one of the
:02:00. > :02:04.largest tax and advisory firms in the world. Mark was previously
:02:05. > :02:12.involved in the George Bush administration. Good morning. Let's
:02:13. > :02:15.talk about the issue. A lot of spin said in the past 12 months about
:02:16. > :02:20.various leaders like David Cameron and Barack Obama and others. There
:02:21. > :02:25.have been a lot of gatherings as well at various places to discuss
:02:26. > :02:36.the issue. What is the done to get the likes of Facebook, Kuwol, and
:02:37. > :02:41.Amazon to pay more tax ? -- Google.. The real issue that has
:02:42. > :02:44.come up with us to issues that you are talking about, national
:02:45. > :02:47.corporations paying tax and the various jurisdictions, that goes to
:02:48. > :02:52.businesses being global. Obviously, countries by their nature
:02:53. > :02:57.are national. How do you divide up the income of and by those
:02:58. > :03:02.corporations and those countries and collect the appropriate amount. They
:03:03. > :03:10.have got the 20 biggest countries in the world to the OED see to
:03:11. > :03:15.calculate how to transfer prices and make sure the companies make
:03:16. > :03:20.payments for the right amount of tax. That is well under way. We are
:03:21. > :03:24.expecting to see reports and actually.
:03:25. > :03:30.We talk about input and corporations with business but we have had a lot
:03:31. > :03:37.of US technology firms teaming up recently to talk about and lobby how
:03:38. > :03:44.to stop tax avoiding reform. It would seem that the big names that
:03:45. > :03:46.are a boarding and not paying a lot of tax to various countries not on
:03:47. > :03:51.board. They think were the most important
:03:52. > :03:57.thing that most businesses will tell you is that the worst thing that
:03:58. > :04:01.could happen would be each country going off and doing their own thing
:04:02. > :04:04.which would result in tax falling through the cracks which would be
:04:05. > :04:08.bad for governments or double taxation because everybody is trying
:04:09. > :04:15.to tax the same people. Corporations are set up with a revenue all over
:04:16. > :04:19.the world, earning profits from all over. Countries are trained to the
:04:20. > :04:23.ground how much is owned in each country and how much to assess. It
:04:24. > :04:25.is not necessarily about increasing taxation overall, it is how you
:04:26. > :04:27.divide it up that amongst individual countries.
:04:28. > :04:33.Hardy you overcome that issue, because we have talked about this
:04:34. > :04:37.for a long time on this programme on World Business Report. We have
:04:38. > :04:42.always asked, how do you get an international playing field that
:04:43. > :04:46.works. It is not easy is it? It is not an easy problem to overcome.
:04:47. > :04:55.Getting this law in place, getting it to work in a global level...
:04:56. > :05:02.You are right. One country's tax and set-ups to try and get jobs into it
:05:03. > :05:07.is another country's loophole. We are finding as companies become more
:05:08. > :05:12.digital, they are moving across the world. It is not like the old
:05:13. > :05:17.economy. It is hard to fairground where income is earned. It is really
:05:18. > :05:23.hard to figure out how to allocated among set the country. The tax
:05:24. > :05:24.system has to be updated to reflect the changes of the business
:05:25. > :05:32.environment. The co-ordination of the OECD and business services in
:05:33. > :05:36.general positive because they need to be held at a global level. Each
:05:37. > :05:39.country can't do its own thing or you will continue to have these
:05:40. > :05:48.problems. Thank you Mark Weinberger from EY.
:05:49. > :05:52.We will hear from other leaders and representatives at Davos throughout
:05:53. > :05:57.the day. Let's now look at other business stories. The art world is
:05:58. > :06:02.expecting one of the most tangible signs yet that it is booming once
:06:03. > :06:06.again. The biggest fine arts auction house, Christies, is set to announce
:06:07. > :06:11.its best ever set of earnings. The last 12 months have seen Christies
:06:12. > :06:17.quote online sales business and open sales rooms in Shanghai and Mumbai
:06:18. > :06:20.to capture more new buyers. Turnover may rise to a little short of $6
:06:21. > :06:27.billion. This is a sign of a rapid turnaround for the entire market.
:06:28. > :06:34.Fine art suffered in the six years to 2012, but now, these prices are
:06:35. > :06:41.really taking off. The reason for that is nearly a third of the people
:06:42. > :06:42.walking through the stores of this auction house are doing so for the
:06:43. > :06:47.first time. There is a cultural phenomenon on.
:06:48. > :06:53.They are more interested in art, experiencing art, being with art,
:06:54. > :06:57.then there has ever been before. It is worldwide. Using the attendance
:06:58. > :07:06.is up by up to 30%. The biggest tourist destination in London is the
:07:07. > :07:16.cat. The biggest one in New York City as The Met.. It is not
:07:17. > :07:28.disconnected to the top and of the market being so strong on Andy
:07:29. > :07:34.Warhol pictures. The percentage of buyers at Christies are buying as a
:07:35. > :07:42.commodity, they are miniscule. Nobody is buying a $50 million
:07:43. > :07:48.painting not to have it on the wall. It is about a love of art that is
:07:49. > :07:53.ubiquitous across the world. It goes from 2000 were printed to a $60
:07:54. > :07:58.million painting. This is a perfect example.
:07:59. > :08:05.That is a quintessential piece of work. It appeals to many people.
:08:06. > :08:09.Through the incident they can all convene and no this is available. It
:08:10. > :08:15.also appeals to a more general collective audience. This could set
:08:16. > :08:22.happily next to different areas of art. The community has opened up the
:08:23. > :08:30.doors to a whole range of things. Very interesting. Australian
:08:31. > :08:34.inflation has picked up at a faster rate than expected as the cost of
:08:35. > :08:41.food, travel, and tobacco or increase. Government data show that
:08:42. > :08:45.inflation increased by 0.8% in October, November, and December,
:08:46. > :08:48.taking annual inflation to 2.7%. The rise in prices as low the
:08:49. > :08:55.possibility of cutting interest rates. They are at a record low at
:08:56. > :09:00.2.5%. IBM, the biggest computer firm, says full quarter profits at
:09:01. > :09:05.risk by 6%. It is better than expected. Higher revenues from
:09:06. > :09:11.software have helped. They have reached $6.19 billion in the three
:09:12. > :09:15.months to the end of December. The net income for the whole year was
:09:16. > :09:21.down 1% to $16.5 billion. The Chief Executive Virginia Rometty said that
:09:22. > :09:25.she and her fellow executives will skip their bonus payments this year.
:09:26. > :09:30.Facebook's chief operating officer became one of the world's few female
:09:31. > :09:37.billionaires on Tuesday. That is, at least on paper. Shares in the
:09:38. > :09:43.company climbed to a new high. She owns about $750 million worth of
:09:44. > :09:51.Facebook shares. She is, of course, the 44 -year-old former Google
:09:52. > :09:54.executive. Nearly 5 million shares had been invested in the last year.
:09:55. > :09:59.That is all from ours. See you soon.