30/08/2016

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:00:00. > :00:00.Now for the latest financial news with Sally Bundock,

:00:00. > :00:21.The EU is expected to make a final ruling on Apple's low tax

:00:22. > :00:25.It could mean a huge payment of back taxes,

:00:26. > :00:31.And how to influence the Brexit negotiations -

:00:32. > :00:40.we look at the spike in demand for lobbying consultants in the UK.

:00:41. > :00:54.We will look ahead to the results coming from some of the very biggest

:00:55. > :00:56.banks. They are based in China. Rico Hizon will have the details.

:00:57. > :00:59.Apple is facing a potential tax bill running into billions of euros.

:01:00. > :01:02.After a three year probe into the tech giants tax

:01:03. > :01:04.arrangements with the Irish government the findings

:01:05. > :01:08.of a European Union investigation are expected to be released today.

:01:09. > :01:14.They are expected to find that Ireland has given the Apple "illegal

:01:15. > :01:19.aid" through a so-called "sweet heart" deal.

:01:20. > :01:27.That deal meant that Apple would pay just **% in corporation tax if it

:01:28. > :01:36.That deal meant that Apple would pay just 2% in corporation tax

:01:37. > :01:39.if it based its operations in Cork in Southern Ireland.

:01:40. > :01:41.The big benefit for Ireland is significant job creation there.

:01:42. > :01:44.However under EU law national tax authorities are not allowed to give

:01:45. > :01:48.tax benefits to selected companies - which the EU would consider to be

:01:49. > :01:52.Estimates say Apple may face a bill of as much as $19 billion

:01:53. > :01:55.if the Irish government is forced to recoup taxes from the company.

:01:56. > :01:57.However some reports say the figure may not be much more

:01:58. > :02:02.But it will be up to Irish authorities to calculate

:02:03. > :02:06.Apple and the Irish government are both likely to appeal

:02:07. > :02:21.I am joined by Jamie Gavin, managing director of inPress Online. Good to

:02:22. > :02:25.see you. As we have mentioned, this has been a three-year investigation.

:02:26. > :02:28.We are likely to get the outcome today. Tell us more about this

:02:29. > :02:36.landmark ruling which could be historic. There is precedent

:02:37. > :02:48.recently in the Netherlands. We talked about Luxembourg and Ceat.

:02:49. > :02:52.It's such a big name. -- Fiat. All of a sudden they are turning around

:02:53. > :02:56.and saying that they have to pay a backlog of tax. We will wait and see

:02:57. > :03:02.how much that will be and where it ends up landing. That is a huge deal

:03:03. > :03:08.for the legalities surrounding tax. It is interesting because Apple is

:03:09. > :03:13.the world's biggest company in terms of market capitalisation. It has a

:03:14. > :03:16.huge cash pile and some people say that it can afford to pay that back

:03:17. > :03:21.taxes but looking ahead, it will have to pay higher tax on the future

:03:22. > :03:26.as well if this is to go through. It is interesting that the EU don't

:03:27. > :03:34.impose this moving forward. They say, actually, they don't draw a

:03:35. > :03:37.line actually. They go back and say well, you haven't been paying

:03:38. > :03:42.visitor this long so this is what you owe us. It is a huge figure.

:03:43. > :03:48.Obviously, they have a big war chest but those figures can he hit a

:03:49. > :03:53.company quite hard. It is political as well because as you say, it is

:03:54. > :03:59.not just Apple. People say that Facebook is also on their radar.

:04:00. > :04:08.Also Hammers on has been pursued and Starbucks. Google as well. --

:04:09. > :04:15.Amazon. People are trying to lobby get EU saying that it is effectively

:04:16. > :04:19.going after US companies in an fairway. This is interesting from a

:04:20. > :04:25.political point of view. So many people have clamoured to get Irish

:04:26. > :04:30.passports since the Brexit vote. This is an example of the EU going

:04:31. > :04:36.in and imposing their laws on domestic tax laws. Once you get the

:04:37. > :04:39.US involved then our say in the EU law is being restrictive and

:04:40. > :04:45.discriminatory against specifically US companies. That is a eager voice

:04:46. > :04:49.coming in from the outside to start contesting these laws and

:04:50. > :04:53.regulations as well. It's really, really interesting politically,

:04:54. > :04:58.particularly from the business point of view in how the chips will fall

:04:59. > :05:02.on this one. We will watch this space closely. Thank you for coming

:05:03. > :05:07.in and giving us your take on this. When we hear from the European

:05:08. > :05:10.Commission on Apple, we will update you hear at the BBC so keep and I am

:05:11. > :05:12.that story. More detail is online. ICBC and the Bank of China are set

:05:13. > :05:15.to report their latest earnings China's biggest banks have enjoyed

:05:16. > :05:17.strong growth in profits, Rico Hizon is in our

:05:18. > :05:33.Asaia Business Hub in Singapore. Good afternoon. Tell us more about

:05:34. > :05:39.these two banks. It is not looking good. Expect shrinking revenues from

:05:40. > :05:43.these two mainland banks. More pressure on the bottom line and are

:05:44. > :05:48.a major concerns about the banking system and the high levels of bad

:05:49. > :05:55.debt. With growth rates in the mainland at historic lows, between

:05:56. > :06:00.6.5 and 7%, corporate health, both structural and cyclical reasons

:06:01. > :06:06.behind the trend. Mining and still have made past investments funded by

:06:07. > :06:12.debt, less affordable. While cyclical profit margin squeezes has

:06:13. > :06:16.made debt servicing harder for Chinese companies. Analysts have

:06:17. > :06:20.outlined several indicators showing how Chinese companies ability to pay

:06:21. > :06:24.debt and generate profit is deteriorating and the most troubled

:06:25. > :06:30.sectors right now in the country are at number one, real estate, number

:06:31. > :06:33.two manufacturing, reels -- retail and wholesale. As a result, with all

:06:34. > :06:40.of their debts put together, this will surely make Chinese banks

:06:41. > :06:46.suffer. Local governments hoping to save their steel mills and coal

:06:47. > :06:50.minders have -- miners, has been enlisting the banks to take the heat

:06:51. > :06:55.by improving the terms of the loans or swapping for bonds or equity in

:06:56. > :07:03.the groups. Expect some really dismal numbers from the mainland

:07:04. > :07:04.banks. Today and going forward. We will brace ourselves. Thank you Rico

:07:05. > :07:05.Hizon. Britain's vote to leave

:07:06. > :07:07.the European Union has triggered a boom in one, little-known,

:07:08. > :07:09.business sector. Lobbying consultants are reporting

:07:10. > :07:12.a 30 or 40% leap in revenues as firms come to them,

:07:13. > :07:14.looking for ways to influence the upcoming Brexit talks

:07:15. > :07:55.to their best advantage. In any type of lobbying, you want to

:07:56. > :08:00.get to the table early. You want it influenced the debate as we clear as

:08:01. > :08:06.you can before some of the ideas get hardwired. They get deepened to the

:08:07. > :08:23.system and it becomes very difficult to change a political direction.

:08:24. > :08:28.The whole referendum campaign was about taking back control, taking it

:08:29. > :08:33.from Brussels and giving it back to the British people. The danger is

:08:34. > :08:33.that we take back control and handed over to multinational corporations

:08:34. > :08:55.and their lobbyists. European regulators will spell out

:08:56. > :08:58.exactly how the continent's so-called net neutrality

:08:59. > :09:00.rules will work. It's been a fiercely fought battle -

:09:01. > :09:03.with advocates of the principle saying it is about saving

:09:04. > :09:05.the internet itself. Net neutrality is the idea that

:09:06. > :09:07.all pieces of data moving across the internet should

:09:08. > :09:09.be treated equally - regardless as to whether it's a web

:09:10. > :09:31.page, a movie or a video call. Shares in how she has been. The

:09:32. > :09:43.giant which makes cookies and chocolates. Mont Alessi is no longer

:09:44. > :09:52.pursuing the acquisition. -- Mondelez.

:09:53. > :09:59.The price of oil is most at $50 a barrel. That is how the week ended

:10:00. > :10:03.in the United States. You are fully up-to-date, we will review the

:10:04. > :10:12.papers in a moment. Season. -- see you then.

:10:13. > :10:14.Deaths related to traffic pollution in Britain's cities

:10:15. > :10:16.are at "epidemic" levels, because politicians have prioritised

:10:17. > :10:18.road safety and economic growth over air quality -

:10:19. > :10:20.according to research being presented at the Royal

:10:21. > :10:23.Geographical Society's annual international conference today.