:00:00. > :00:00.treatment on Monday. Those are the latest headlines from
:00:00. > :00:00.BBC World News. Now for the latest financial news with World Business
:00:00. > :00:19.Report. The US Treasury fights back against
:00:20. > :00:22.tax inversion, when companies move their headquarters outside of the US
:00:23. > :00:29.to escape the high American corporation tax.
:00:30. > :00:32.Japan's economy contracts by the largest amount since 2009. So what
:00:33. > :00:39.does this tell us about the efficiency of Abenomics?
:00:40. > :00:50.I'm Sally Bundock. Also in the programme: How is
:00:51. > :00:58.Polish economy coping with the continuous flood of workers
:00:59. > :00:58.overseas? We will take a look at that. But
:00:59. > :01:01.first, it's called a tax inversion. Few will have heard of it, but
:01:02. > :01:08.US Treasury Secretary Jack Lew. The practice has been around for years.
:01:09. > :01:09.But its popularity has grown in recent months and
:01:10. > :01:17.controversy surrounding it. The BBC's Michelle Fleury has more from
:01:18. > :01:21.New York. Burger King made headlines when it
:01:22. > :01:25.said it was shifting its headquarters across the border. All
:01:26. > :01:32.part of its deal to buy Canadian coffee shop business Tim Horton, so
:01:33. > :01:38.why all the fuss? Burger King's move is part of a cat strategy known as
:01:39. > :01:41.an inversion, when a US firm buys a foreign company
:01:42. > :01:49.headquarters abroad. One incentive is that America's corporate tax rate
:01:50. > :01:55.is 35%, the highest in the industrialised world. Tax
:01:56. > :01:58.inversions are not new, but they are back in the spotlight. The
:01:59. > :02:03.multinationals are leading the charge on this. Financial consultant
:02:04. > :02:08.Benjamin Alderson said it's not just be companies trying to take
:02:09. > :02:12.advantage of this loophole. It is something I am increasingly asked by
:02:13. > :02:17.clients, what can we do and what would we recommend? I think it is
:02:18. > :02:23.very much something that is in the bad right now. The most powerful man
:02:24. > :02:28.in America isn't a fan. Even calling the practice unpatriotic. You don't
:02:29. > :02:35.get to pick which rules you play by all which tax rate you pay and
:02:36. > :02:40.neither should these companies the White House wants the loophole
:02:41. > :02:43.outlawed. The White House has asked Jack Lew to look into ways the
:02:44. > :02:47.administration could take action. It is unclear what available remedies
:02:48. > :02:52.there are. He has also asked Congress to look for long`term
:02:53. > :02:55.solutions through tax reform. Barbed with mid`term elections looming,
:02:56. > :03:01.many have written off any chance of reform happening soon.
:03:02. > :03:04.The latest news from Japan about the economy is not good at all and
:03:05. > :03:07.raises fresh doubts about the effectiveness of so called
:03:08. > :03:10.Abenomics. Revised data shows the economy shrank 7.1% in the three
:03:11. > :03:20.months to the end of June, compared to the same period a year ago. Rico
:03:21. > :03:24.Hizon is in our Asia Business hub in Singapore. He always puts these
:03:25. > :03:31.things into perspective for us. Master see you, Rico Hizon. The last
:03:32. > :03:38.more. The contraction was the largest since January`March, 2009,
:03:39. > :03:46.five years ago. Household and corporate spending slumped the most
:03:47. > :03:52.as Japanese consumers stop spending on appliances prior to this tax
:03:53. > :03:56.jumped from 5` 8% in April. The consumption tax is a double`edged
:03:57. > :04:01.sword, it could be a problem short term, but on the flipside, this
:04:02. > :04:05.reduces the government's ballooning public debt, which is one of the
:04:06. > :04:11.world's biggest. Many economists hope that future public spending
:04:12. > :04:15.will jump start economic growth. This, coupled with wage increases
:04:16. > :04:21.and a additional economic reforms from the Prime Minister will
:04:22. > :04:24.hopefully put the economy back on track `` and additional. This
:04:25. > :04:28.revised economic indicator is, indeed, as we can see, a lagging
:04:29. > :04:31.indicator and what everyone is looking out for is this quarter's
:04:32. > :04:36.later. The Bank of Japan last week later. The Bank of Japan last week
:04:37. > :04:40.held off on a monetary policy change and more stimulus as they believe
:04:41. > :04:47.the economy will indeed grow this quarter. Expertss forecast more than
:04:48. > :04:51.a 3% expansion. Thank you very much. Good to see
:04:52. > :04:54.you. We will look at the markets later in the show to see how it is
:04:55. > :04:57.impacting the story. Let's squeeze in this one.
:04:58. > :05:00.Unlike most of its neighbours in Europe, Poland has avoided falling
:05:01. > :05:03.into recession over the past decade. But that hasn't stopped a rising
:05:04. > :05:06.tide of the country's most ambitious young workers leaving to work
:05:07. > :05:09.elsewhere. Many of them don't return. So how can Poland sustain
:05:10. > :05:19.its healthy growth? Nigel Cassidy reports from Warsaw.
:05:20. > :05:23.With well over 2 million young Polish people are brought, it is
:05:24. > :05:28.hard to find anyone who has come back to apply what they have learnt
:05:29. > :05:33.and start up a business. Poland's ubiquitous plumbers and builders are
:05:34. > :05:37.still away. This fully certified translator is one of the few who is
:05:38. > :05:41.back at the age of 30. She worked in a British sandwich factory and an
:05:42. > :05:45.Irish publisher. She thinks it is only those experiences and contacts
:05:46. > :05:50.which set up to find well`paid work she can do back at home. Not only
:05:51. > :05:55.did I improve my language skills, but also I learned a lot about the
:05:56. > :06:00.publishing business, about advertising, about customer service.
:06:01. > :06:05.And, that collection, which is very... The last few things are very
:06:06. > :06:08.useful for me in my current job. Until now, the Polish economy has
:06:09. > :06:12.kept growing in spite of the continuing tide of young people who
:06:13. > :06:17.leave their country looking for work, but don't come back. Now,
:06:18. > :06:21.there is evidence that can maintain this fast growth, the economy needs
:06:22. > :06:25.to innovate and businesses say they are finding there is a shortage of
:06:26. > :06:34.younger people with experience to help them do that. Poland badly
:06:35. > :06:41.needs to build up its digital service sector. That's according to
:06:42. > :06:45.this 40`year`old recent return who has drawn on his senior programme
:06:46. > :06:49.experience with Microsoft in the US to establish a software business
:06:50. > :06:55.that enables hotels to adjust their room rates in line with demand from
:06:56. > :07:03.online booking sites. We started selling our services all around
:07:04. > :07:07.Europe but also we started going outside Europe, the United States,
:07:08. > :07:16.the Canada, to Mexico, to Thailand. So, instead of exporting labour, we
:07:17. > :07:23.could export software, sophisticated services to countries like the UK,
:07:24. > :07:25.the US or anywhere else in the European Union. Until now, Poland
:07:26. > :07:30.has kept on the right economic track, growing faster than many of
:07:31. > :07:36.its flatlining neighbours in the euro currency zone. But if its
:07:37. > :07:39.brightest and best day a way and keep `` putting down roots, it might
:07:40. > :07:45.need to look elsewhere for experienced workers.
:07:46. > :07:48.In other news: China has posted its trade numbers for August, with a
:07:49. > :07:51.nine point 4% rise on the year. It follows a record trade surplus in
:07:52. > :07:54.July as there were signs the government stimulus measures to stop
:07:55. > :08:03.the economy slowing down have generated a rebound in exports.
:08:04. > :08:07.We will look at those in a moment. Before we do that, let's mention a
:08:08. > :08:10.few corporate stories. The Japanese online retailer,
:08:11. > :08:12.Rakuten, is reportedly in talks to buy Ebates, the US cashback shopping
:08:13. > :08:15.site operator. If the sale goes ahead, it would be the Japanese
:08:16. > :08:18.firm's fifth major overseas investment over the past year. The
:08:19. > :08:25.acquisition price for a majority stake is said to be about $950
:08:26. > :08:27.million. The UK's objection to the European
:08:28. > :08:31.Union's plans to cap bankers' bonuses is set to be heard in the
:08:32. > :08:34.bloc's highest court today. The UK Treasury wants to overturn the cap
:08:35. > :08:40.which it says was rushed through without a proper impact assessment.
:08:41. > :08:42.The cap limits bankers' bonuses to a year's basic salary, or double their
:08:43. > :08:53.salary with shareholder agreement. So, let's have a look at the
:08:54. > :08:58.financial markets with quite a lot of the minds of investors at the
:08:59. > :09:01.moment as we have already mentioned. The Japanese revised growth number,
:09:02. > :09:05.which of course was worse than originally thought, however that
:09:06. > :09:10.isn't wobbling markets too much. You can see Japan is flat today. Hong
:09:11. > :09:15.Kong is down by one third of 1%. In China, we had the number, we also
:09:16. > :09:20.have other data from China, the imports falling by 2.4% in August.
:09:21. > :09:25.Mixed news about the Chinese economy. Let's have a look at the
:09:26. > :09:30.pound. Howedes that pound trading? `` how is. It has lost open 6% of
:09:31. > :09:34.the value, weakening off the back of the poll that was in the Sunday
:09:35. > :09:39.Times showing that with two weeks to go before the Scottish referendum,
:09:40. > :09:42.the yes vote is now in the lead just slightly. That is causing markets to
:09:43. > :09:47.wobble a little and people are pulling out of the pound, the pound
:09:48. > :09:52.weakening there versus the dollar. Also weakening versus the euro as
:09:53. > :09:53.well. That is all from me. I will be back to look at the papers. Stay
:09:54. > :10:09.with us here on BBC World News. There's growing concern over the
:10:10. > :10:10.number of young British Muslims who being radicalised